Financial Performance (Q1 FY27)
Revenue from Operations: ₹151.7 crore, up 18% year-on-year
Total Income: ₹153.8 crore (including other income of ₹2.2 crore)
Material Cost: ₹77.6 crore (51.1% of revenue vs 52.6% YoY)
Gross Margin: 48.9%, up 146 basis points YoY
Employee Cost: ₹12.1 crore (8% of revenue)
Other Expenses: ₹34.5 crore (22% of revenue)
Power and Fuel: ₹8.9 crore (5.9% of revenue vs 6.3% YoY)
EBITDA (including other income): ₹29.7 crore, up 23.4%
EBITDA Margin: 19.6%, up 85 basis points
Operating EBITDA (excluding other income): ₹27.6 crore, up 20.6%
Operating EBITDA Margin: 18.2%, up 39 basis points
Depreciation: ₹3.55 crore
Finance Cost: ₹0.43 crore (<0.3% of revenue)
Profit Before Tax: ₹25.8 crore, up 23%
Tax: ₹6.6 crore (effective tax rate 25-25.5%)
Profit After Tax: ₹19.2 crore, up 24.5%
PAT Margin: 12.7%, up 65 basis points
EPS (pre-IPO): ₹4.92
EPS (post-IPO): ₹4.54
Operational Metrics
Sales Volume: 22,095 tons, up 13.4% YoY, down 2% QoQ
Own Manufacture Tonnage: 15,847 tons, up 12% QoQ
Job Work Tonnage: 6,200 tons (down from 8,400 tons in Q4)
Revenue per Ton (excluding job work): ₹93,487, up 9.5% YoY and 3.9% QoQ
EBITDA per Ton: ₹13,457, up 8.8% YoY
Capacity Utilization: 90.5% overall (94% melt shop, 87.5% rolling mill)
High-Value Products Share: 60.4% of revenue (vs 55.7% YoY and 57.8% in FY26)
Product Mix
Alloy Steel Products: 47.7% of revenue
Metal Rolls: 25.8% of revenue
Engineering Castings: 19.8% of revenue
Forging Ingots: 1.9% of revenue
End-User Segment Mix
Automotive: 33% (vs 38.7% for FY26)
Infrastructure: 26.4% (vs 20.7% for FY26)
Industrial Equipment: 15.4%
Aggregate Crusher: 13.5%
Thermal Power: 10.5%
Geographic Mix
Domestic Revenue: 94.3%
Export Revenue: 5.7% (₹8.6 crore vs ₹11.5 crore YoY)
Export Markets: 21 countries across five continents
Order Book & Customer Base
Order Book (as of June 30, 2026): ₹162 crore (13,138 tons)
Order Book Value per Ton: ~₹1.2 lakh
Customer Base: 1,871 customers as of June 30, 2026
Balance Sheet (as of June 30, 2026, pre-IPO)
Net Worth: ₹325 crore
Gross Borrowings: ₹11 crore (working capital lines)
Cash and Bank Balances: ₹52 crore (largely fixed deposits)
Debt-to-Equity: 0.03x
Return on Equity (annualized): 23.6%
Return on Capital Employed: 27%
Cash Conversion Cycle: 94 days (vs 93 days at March)
IPO Details
IPO Completion: August 2026
Issue Size: ₹301 crore
Issue Price: ₹285 per share
Listing Date: August 19, 2026
Fresh Capital Raised: ₹93 crore
Anchor Investors: 11 leading domestic mutual funds
Post-IPO Promoter Holding: 70.84%
Post-IPO Share Count: 4.23 crore shares
IPO Proceeds Utilization
Equipment and Civil Work: ₹56 crore (both facilities)
Rooftop Solar: ₹7 crore
Small Debt Repayment: Part of ₹7 crore
General Corporate Purposes: ₹19 crore
Working Capital: Initial deployment from GCP amount
Capacity Expansion & Capex
FY27 Capex Target: ₹80 crore
Q1 FY27 Capex Spent: ₹5 crore
Unit 3 Status: Under construction, expected commissioning Q1 FY28
Unit 3 Products: ICDP rolls, HSS rolls, variety of foundry products and engineering castings
Current Melting Capacity: 1.5x FY24 capacity
Strategic Initiatives
High-Value Product Target: 70% of revenue (from current 60.4%)
New Product Development: ICDP rolls (indefinite chilled double poured rolls), HSS rolls (high-speed steel rolls)
Defense & Aerospace: Working with BDL, NPCIL; prototyping stage, revenue expected from FY28
Forging Line: Planned for valve, die steel, tool steel to lower costs and scale highest margin grades
Solar Project: To reduce power costs
NABL-accredited Lab: To shorten customer qualification
Market Position
Metal Rolls Market Share: ~11.5% of country's demand (per CRISIL)
Competitive Advantage: Only domestic player adding capacity in rolls segment; first in country for ICDP/HSS plant
Location Advantage: Mandi Gobindgarh, Punjab - one of oldest steel hubs in India
Management Commentary
Growth Strategy: Focus on product mix optimization rather than tonnage growth; shifting from normal-value to high-value products
Historical Performance: Revenue grew at 9% CAGR from ₹446 crore to ₹534 crore (FY24-FY26); EBITDA grew at 29% CAGR from ₹61 crore to ₹101 crore
Utilization History: FY26 utilization 88%; mid-90s melt shop utilization for almost 2 years
Defense Sector Outlook: Long customer approval cycle; aligned with government's 98% local procurement policy
Thermal Power Sector: Visibility till 2035; recently made 22-23 ton single-piece casting
Forward-looking Statements
Unit 3 Timeline: Expected commissioning Q1 FY28
Defense Revenue: Meaningful contribution expected from FY28
Margin Outlook: Operating EBITDA margin expected to grow 20-25% over next 2-3 years
High-Value Mix Target: 70% of revenue