Management Participants

  • Mr. Prashant Garg – Chairman and Managing Director
  • Mr. Abhishek Mehta – Chief Financial Officer
  • Ms. Chanchal Jaiswal – Company Secretary and Compliance Officer
  • ADFACTORS PR – Investor Relations Team

Financial Performance Highlights (Consolidated)

Q2 FY27 (Quarter Ended September 30, 2026)

  • Revenue from operations: ₹1,259.34 million (₹125.93 crore), up 50.70% YoY from ₹835.66 million in Q2 FY26
  • EBITDA (excluding other income and share of profit/loss in associates and JV): ₹166.35 million, up 34.51% YoY from ₹123.67 million
  • EBITDA margin: 13.21% compared to 14.80% in Q2 FY26
  • Profit before tax: ₹152.20 million, up 20.30% YoY
  • Profit after tax: ₹127.53 million, up 25.46% YoY from ₹101.65 million

H1 FY27 (Half Year Ended September 30, 2026)

  • Revenue from operations: ₹2,360.42 million, up 43.73% YoY from ₹1,642.31 million
  • EBITDA: ₹307.89 million, up 34.16% YoY
  • EBITDA margin: 13.04% compared to 13.97% in H1 FY26
  • Profit before tax: ₹353.56 million, up 25.57% YoY
  • Profit after tax: ₹294.30 million, up 31.21% YoY
  • EPS for half year: 7.84%

Standalone Performance

Q2 FY27

  • Revenue from operations: ₹1,080.78 million, up 35.16% YoY
  • EBITDA: ₹126.14 million, up 12.76% YoY
  • EBITDA margin: 11.67%
  • Profit after tax: ₹152.38 million compared to ₹99.13 million in Q2 FY26

H1 FY27

  • Revenue from operations: ₹2,039.91 million, up 33.04% YoY
  • EBITDA: ₹247.68 million, up 24.83% YoY
  • EBITDA margin: 12.14%
  • Profit after tax: ₹252.17 million

Order Book Position (as of September 30, 2026)

Total consolidated order book: ₹2,267.93 million (₹226.79 crore), up 30.3% from ₹1,741.0 million as on March 31, 2026

Segment-wise breakdown:

  • Heavy engineering: ₹1,778.52 million
  • Wear plates and wear parts: ₹249.62 million
  • Welding consumables: ₹249.79 million

Business Environment and Strategy

Industry Context

  • India's core industries recorded 7.9% growth in September 2026, highest in 30 months
  • Iron ore production increased 18.4%, electricity generation 11.4%, coal production 10.7%, refinery products 10.3%, cement 9.8%, steel 4.9%
  • Growth broad-based with 6 out of 9 core industries reporting positive growth

Operational Highlights

  • Major capacity expansion initiatives nearing completion, new facilities being operationalized in phased manner
  • R&D focus on developing new solutions for cement, steel, power, mining industries
  • Received qualification to manufacture loco shells for Indian Railways
  • Exploring opportunities in defense sector
  • Export sales increasing, currently exporting to 53 countries
  • New market entries: Western Africa (Ghana, Nigeria), expecting order from US

Margin Pressures and Mitigation

  • EBITDA margin moderation due to increased raw material costs, energy costs, logistic costs
  • Input cost pressures particularly for specialty ferroalloys and metals
  • Geopolitical uncertainties affecting global supply chains
  • Mitigation strategies: procurement efficiencies, cost optimizations, better resource utilization, price pass-through to customers
  • 85-90% raw material procurement domestic, 10-15% imported
  • Management expects margin recovery to previous levels within next 2 quarters

Growth Outlook and Guidance

  • Management confident of 20-25% revenue growth for next 3-5 years
  • Q4 expected to show margin recovery to previous levels (subject to raw material price stability)
  • New initiatives (shredders, vertical roller mills, steel mill rollers) expected to contribute 10-15% of revenue in 2-3 years
  • Heavy engineering order book: Increased from ₹1,420 million in March 2026 to ₹1,778.52 million in September 2026
  • Wear plates order book: Increased from ₹220 million to approximately ₹240 million
  • Welding consumables order book: Increased from ₹99 million to ₹249.79 million

Joint Venture Performance

  • JV follows calendar year cycle with seasonal lulls (August, December, April)
  • Negative contribution in current quarter affected PAT
  • Expecting better performance by end of calendar year 2026
  • Operations becoming more stabilized and less sensitive to seasonality

Q&A Session Key Points

  • Price increases being passed to customers with 1-1.5 quarter lag
  • Order conversion timelines: consumables (4 weeks), wear plates/parts (6-8 weeks), heavy engineering (3-9 months)
  • 70% of revenue from servicing existing installed base, 30% from new project build
  • No slowdown observed in end-user industries (cement, steel, power, mining)
  • Railway expansion initiative: Indian Railways targeting freight share increase from 10% to 40% in next 10 years
  • Philippines subsidiary performing consistently better than last year

Closing Comments

Management expressed gratitude to team members, clients, suppliers, bankers, and stakeholders. Focus remains on delivering sustainable and profitable growth and creating long-term value.