The company operates four manufacturing facilities with a total land area of roughly 14 acres.
Business is focused on manufacturing body parts, components, and now bogey components (springs, forgings) for railway wagons and coaches, and has expanded into the infrastructure sector.
The current order book is split 78% infrastructure and 22% railways, with a strategic goal of a 50/50 split for better risk diversification.
A significant order for 9,000 BOXNHL wagons was recently secured, reactivating a previous order with a 30% option clause.
The company highlights its "fungible strength" – the ability to shift manufacturing focus between railways and infrastructure based on demand and policy changes, which helped mitigate a recent slowdown in railway orders.
The Galvanizing facility at NS Engineering was expanded from 8,500 to 12,000 tons last year and is adding an air wiping facility by end-November 2026, expected to contribute 10.5-12% to top line and 1.5% to PAT.
Capacity Expansion and Capex
Cosmic Springs & Engineers: Capacity is 13,600 metric tons, expected to increase to 24,000-25,000 metric tons by end-FY27.
Forging Division: A new unit is under setup with an investment of INR 45-50 crores. Commercial production is targeted for April-May 2027 (delayed by 2-2.5 months due to rainfall). Planned capacity is 11,000 metric tons.
Overall Target: Aiming to grow total installed capacity from 1,33,600 metric tons to 1,74,600 metric tons.
Amzen: Upon acquisition and full operationalization, the installed capacity for wagon manufacturing is 3,600 wagons, assessed to be scalable to 7,200 wagons. The plant contains 392 machines.
Financial Projections & Guidance
Management provided a revenue run-rate projection based on 80% capacity utilization across all existing units (excluding Amzen):
Cosmic CRF (65,000 T): ~INR 448 crores
NS Engineering (85,000 T): ~INR 476 crores
Springs (13,600 T): ~INR 136 crores
Forging (11,000 T): ~INR 118 crores
Total (ex-Amzen): ~INR 1,178 crores, with an expected range of INR 1,150-1,300 crores.
Expected PAT margins for these operations are projected at 12-14%.
For FY27, management reaffirms a revenue growth target of 20-25% over FY26 (which had revenue of INR 717 crores).
Margin improvement is expected post-completion of field trials for the springs division and as new capacities come online.
Amzen Acquisition Update (Key Focus Area)
The acquisition is pending final NCLT approval, which is described as procedural. The next hearing is scheduled for November 25, 2026.
The company has already paid INR 60 crores (INR 32cr upfront, INR 28cr security deposit) and has a team of 12 people on-site conducting refurbishment analysis and preparatory work since the last 1.5-2 months.
The legal delay is stated not to be adversely affecting operational readiness, as this preparatory work would have been needed regardless.
Full payment to the Committee of Creditors (COC) will be made upon final NCLT approval.
Production at Amzen is planned to start in a phased manner, targeting 25% capacity utilization in FY28, 75% in FY29, and 70-80% by FY30.
Plans for Amzen include:
Wagon manufacturing and repair.
Manufacturing of sea freight containers (leveraging an existing license and a new government subsidy scheme).
Production of sheet piles, trench boxes, loco shells, and bridge girders to leverage existing company proficiencies and reduce freight costs.
The company is in talks with Russian entities for technological partnerships related to wagon manufacturing.
Other Business Updates
Springs Division: Has received RDSO approval but is undergoing mandatory field trials (3,000 sets over 6 months). Upon successful completion, order flow and profitability are expected to increase significantly. PAT margins for this division are projected at ~15%.
Mainboard Migration: The company is eligible and the process is underway. Warrant listings and a share swap are in process with BSE to meet the 1 crore share capital requirement. Migration is targeted around Q4 FY27.
Defence Sector: The company is actively conducting R&D and engaging with DRDO and OEMs to enter the defence manufacturing sector.
Legal Costs: Elevated legal expenses in H1 were attributed to Supreme Court hearings related to the Amzen acquisition NCLAT case, which was won in Q1 FY27. Costs are expected to be lower in H2 FY27.
