Financial Performance - H1FY27

Consolidated Results:

  • Revenue from Operations: ₹92 Cr, representing 73% YoY growth and 57% half-on-half growth
  • EBITDA: ₹16 Cr with 17% margin
  • Profit After Tax: ₹6 Cr with 7% margin
  • Depreciation: ₹5 Cr
  • Finance Cost: ₹2 Cr
  • Tax Expense: ₹3 Cr

Standalone Results (Emmforce Autotech Limited):

  • Revenue from Operations: ₹84 Cr, representing 71% YoY growth
  • EBITDA: ₹16 Cr with 19% margin
  • Profit After Tax: ₹9 Cr with 10.7% margin
  • Depreciation: ₹3 Cr

Subsidiary Performance (Emmforce Mobility Solutions Pvt. Ltd - EMSPL):

  • Total Revenue: ₹14.5 Cr (including ₹8.6 Cr external revenue)
  • Net Loss: ₹(2.8) Cr
  • FY27 revenue expected to be ~₹25 Cr
  • Cash loss expected to be eliminated in H2 FY27

Operational Highlights

Revenue Drivers:

  • Growth primarily driven by commercial ramp-up of ₹470 Cr multi-year US OEM order
  • Agri blade business contributed ₹8.6 Cr in H1, already exceeding full-year FY26 revenue
  • OEM contribution increased significantly from 7% in FY26 to 41% in H1 FY27

Margin Impact:

  • Standalone EBITDA margin of ~19% after absorbing West Asia input-cost inflation
  • Input costs increased due to raw material, consumables, energy and ocean freight costs following West Asia conflict
  • Company is now approaching customers for price revisions to restore 20-22% margin target

Working Capital & Cash Flow:

  • Operating Cash Flow: ₹(5.9) Cr outflow
  • Operating profit before working capital changes: ₹16 Cr
  • Working capital investment for US order with longer cash cycle, assured stock levels, and goods in transit
  • Receivables increased to ₹63 Cr from ₹34 Cr
  • Inventories: ₹26 Cr

Capacity Utilization:

  • Annual production capacity: ₹350 Cr (₹225 Cr Automotive, ₹125 Cr Agri)
  • Automotive business capacity utilization: 75%
  • Agri business capacity utilization: 15-20%

Capital Expenditure and Debt

  • H1 FY27 Capex: ₹3 Cr (vs ₹18 Cr in H1 FY26)
  • Net Debt to Equity: 0.53x
  • Capex cycle largely complete with installed capacity supporting next growth phase

Strategic Updates

Order Book and New Business:

  • Multi-year order book: > ₹500 Cr
  • Recently secured ₹470 Cr US export order in commercial production at full run-rate
  • Expected to generate ~₹60 Cr annual revenue in FY27
  • New long-term drivetrain supply order worth ₹10.50 Cr annual revenue awarded in October 2025
  • PPAP batch sent for approval, commercial production expected in Q3 FY27
  • Additional US customer order estimated to contribute ₹10 Cr per annum

Agri Division Expansion:

  • Emmfarm brand launched for rotavators in Maharashtra
  • Expansion into Southern India and MP planned
  • Distributor-led go-to-market strategy live in Maharashtra, Karnataka and Madhya Pradesh
  • TAFE approvals secured for manufacturing Rotavators/Rotavator Parts & Blades
  • TAFE rotavator parts in full-scale production since July 2025

Proposed Merger:

  • Merger of Emmbros Automotives Pvt. Ltd (related party) into Emmforce Autotech
  • Brings axle shafts and transmission shafts into listed company
  • Ends related-party transactions between the two companies
  • Subject to independent valuation and shareholder, stock exchange and NCLT approvals
  • Company eligible for MainBoard migration by May 2027

Financial Position

Consolidated Balance Sheet (H1FY27):

  • Total Assets: ₹187 Cr
  • Property, Plant & Equipment: ₹70 Cr
  • Capital Work in Progress: ₹2 Cr
  • Inventories: ₹26 Cr
  • Trade Receivables: ₹63 Cr
  • Cash and Cash Equivalents: ₹1 Cr
  • Total Equity: ₹100 Cr
  • Long-Term Borrowings: ₹18 Cr
  • Short-Term Borrowings: ₹37 Cr
  • Trade Payables: ₹26 Cr

Guidance and Outlook

  • Maintains FY27 consolidated revenue guidance of ₹195 Cr
  • Confident of meeting full-year guidance with stronger H2 expected
  • Standalone target margins: 20-22% EBITDA, ~10% PAT
  • Consolidated margins expected to stay below standalone in FY27 but gap narrowing as subsidiary scales

Manufacturing and Capabilities

  • 1,50,000 sq. ft. manufacturing facility in Baddi, Himachal Pradesh
  • 600+ skilled professionals
  • IATF 16949:2016, ISO45001, ISO14001 certified
  • Exporting to 20+ countries for nearly 3.5 decades
  • Integrated manufacturing with end-to-end in-house capabilities including 1,600-ton forging press
  • R&D expenses: 1.4% of revenue in H1 FY27