Financial Performance FY2025-26

  • Revenue from operations: ₹4,500 crore (all-time high)
  • PBT: ₹200 crore (51% decline YoY)
  • PAT: ₹148 crore (50% decline YoY)
  • EBITDA: ₹328 crore (38% decline YoY)
  • EBITDA margin impacted by one-time adjustments
  • Net worth and capital employed improved to all-time highs
  • Capex and R&D expenditure at record levels

One-Time Adjustments

  • ₹250 crore impact from legacy corrections in two foreign currency projects
  • Additional provision for gratuity due to new labor codes
  • Projects affected by currency movement (dollar was 60 in 2018 vs 95+ currently)
  • Expected mitigation of 30% of the hit through exchange rate variation and PVC clauses

Order Book Position

  • Closing order book: ₹15,896 crore (all-time high)
  • Export order book: $107 million (landmark achievement)
  • Current order book (as of call): ₹16,700 crore
  • Segment breakup: Rail & Metro 65%, Defense 25%, M&C 4%, Exports 6%

Segment Performance

  • Mining & Construction: 41% revenue contribution (₹1,845 crore)
  • Defense: Significant growth from ₹1,000 to ₹1,500 crore
  • Rail & Metro: 24% revenue contribution
  • Revenue mix shifting toward defense and rail/metro (59% combined)

Operational Highlights

Product Development Achievements:

  • First Vande Bharat Sleeper train flagged by Prime Minister
  • 21 cubic meter electric rope shovel (750 ton machine) commissioned April 2025
  • 35-ton electric dump truck (first EV conversion step)
  • 550 HP motor grader supplied to South Eastern Coalfields
  • Indigenous 12x12 HMV for strategic forces (LRSAM, Pinaka, Brahmos)
  • Light Armored Multipurpose Vehicle (LAMV) with Level 2 protection undergoing trials

Facility Expansion:

  • New high-speed rail facility in Bangalore inaugurated by Railways Minister
  • New rolling stock facility at Bhopal inaugurated by Defence Minister
  • BRAHMA facility in Bhopal to add 300-350 coaches capacity in 2.5-3 years

Export Performance

  • Equipment population: 1400+ units across 73 countries
  • Major markets: Africa (largest), Middle East, SAARC, CIS
  • Recent orders: $107 million (West Asia mining + Africa rolling stock)
  • Pipeline: Tel Aviv Metro ($250M), Dublin Metrolink ($90M), Malaysia via SMH Rail MOU

Capacity and Execution Plans

  • Current rolling stock capacity: 250 coaches annually
  • Aditya facility: 6-8 high-speed coaches/month or 12 metro coaches/month
  • Bhopal facility to handle western/northern India metro projects
  • FY27 execution target: ₹6,000 crore
  • Quarterly execution pattern targeting improvement from historical 10%-20%-30%-40% distribution

Future Pipeline and Guidance

Order Pipeline: ₹40,000 crore opportunity

  • Rail & Metro 70%: 554 cars in 6 tenders + MRVC 2856 cars
  • Defense 20%: QRSAM (500-600 HMVs), Armoured Recovery Vehicle (230 numbers), Sarvatra bridging system (47 bridges, ₹1,500 crore), Self-propelled mine burier (sole bidder)
  • AMCA project: ₹15,000 crore ticket size (partnered with Bharat Forge, Data Patterns)

Financial Targets:

  • Sustainable EBITDA margin: 16%
  • Break-even point: ~₹4,000 crore revenue
  • Working capital reduction target: 20% in FY27
  • R&D spend: 7% of revenue (currently 6.25%)
  • Employee cost target: 17% of revenue (currently higher)

Working Capital and Collections

  • Q4 FY26 collections affected by delayed MOD payments
  • April-May collections compensated for Q4 shortfall
  • Inventory reduced through management efforts
  • Debtors increased due to skewed Q4 sales (₹1,800 crore quarterly revenue)

New Product Initiatives

  • 60-ton and 100-ton electric dump trucks in development
  • 190-ton electric dump truck for overseas markets
  • Tunnel Boring Machines (6.5m diameter, later 13-15m)
  • Ship-to-Shore cranes (80-100 unit potential)
  • Goliath cranes (400-1,200 tons) in next phase
  • Timeline: 5 years for revenue contribution from new products

Market Outlook

  • Defense: Long gestation (3-4 years) but stable pipeline
  • Rail & Metro: Faster turnaround (2-2.5 years proto development)
  • Mining: Fast turnaround, provides quick cash, focus on exports
  • Target revenue mix: Rail/Metro 40-45%, Defense 20-25%, Mining 30-35%

Risk Factors

  • International market risks (payment delays, political challenges)
  • Raw material price inflation, partially mitigated by PVC clauses
  • Skewed quarterly execution affecting working capital
  • Labor code changes impacting employee costs

Dividend and Shareholder Returns

  • Company consistently paying dividends
  • Recent stock split: ₹10 face value to 2 shares of ₹5 each
  • Market cap: ₹11,400 crore (31-Mar-26) to ₹14,700 crore (current)