Financial Performance Highlights

Consolidated FY26 Results:

  • Revenue: ₹1,470.6 crore
  • EBITDA: ₹203 crore (up 15.7% YoY)
  • EBITDA Margin: 13.8% (improved by 210 basis points YoY)
  • Profit Before Tax: ₹159.9 crore (up 22.6% YoY)
  • Profit After Tax: ₹146.7 crore (up 50.1% YoY)

Consolidated Q4 FY26 Results:

  • Revenue: ₹358.2 crore
  • EBITDA: ₹39.6 crore
  • EBITDA Margin: 11.1% (compared to 9.0% in Q4 FY25)
  • PAT: ₹45.7 crore

Standalone FY26 Results:

  • Revenue: ₹966.7 crore
  • EBITDA: ₹154.4 crore (up 53.4% YoY)
  • EBITDA Margin: 16.0% (from 10.6% last year)
  • PAT: ₹81.2 crore (up 52.3% YoY)

Strategic and Operational Updates

  • Dividend Declaration: Board recommended dividend of ₹0.70 per share for FY26
  • Capacity Expansion:
  • Greenfield Mundra facility has successfully commenced operations
  • Egypt facility progressing steadily, expected to commence operations by end of June 2026
  • Capital Work in Progress (CWIP) of ₹162 crore relates to Egypt, USA, and India projects

Business Segment Performance

  • India Business: Strong demand across CNG and industrial gas applications, with healthy increase in industrial applications. Encouraging traction in higher value-added segments (semiconductors, defence)
  • US Business: Maintained steady momentum with healthy order pipeline and growing opportunities in clean energy and specialized industrial applications
  • Dubai Business: Operating at around 50% capacity due to Middle East geopolitical situation affecting shipments, but order book improving

Market Environment and Outlook

  • CNG accounted for nearly 22% of passenger vehicle sales in FY26, emerging as second-largest fuel type
  • India expected to remain multi-fuel economy with gas playing important role in mobility and energy transition
  • Near-term fuel price volatility remains a factor to monitor, but management does not expect significant impact on CNG demand

Order Book and Capacity Guidance

  • US Subsidiary Order Book: $75 million, executable over 18-24 months
  • Capacity Ramp-up Guidance:
  • Mundra: Production started, ramp-up expected in 6 months
  • Egypt: Target 40% utilization initially, progressing to 80% over time
  • Ramp-up period for both facilities: approximately 6 months

Regulatory Matters

  • GST Case: Industry representation made to government seeking clarification on HSN of manufactured products. Expected resolution timeline: 6 months to 1 year. Management expressed positive outlook.

Management Changes

  • New CEO (Mr. Gupta) proposed, awaiting joining. Details to be shared upon joining.

Participants in Conference Call

  • Management: Mr. Puneet Khurana (Managing Director), Mr. Sanjiv Kapur (Whole-Time Director and CFO)
  • Moderator: Mitesh Jain
  • Analysts: Amit Kumar (Determined Investments), Reet Jain (First Water Global)