Financial Results Highlights

Quarterly Performance (Q2FY27 vs Q2FY26)

  • Revenue from Operations: ₹99.73 crore (20.54% YoY growth from ₹82.74 crore)
  • Other Income: ₹0.12 crore (-29.41% YoY from ₹0.17 crore)
  • Total Income: ₹99.85 crore (20.43% YoY growth from ₹82.91 crore)
  • Total Operating Expenses: ₹70.00 crore (15.38% YoY growth from ₹60.67 crore)
  • EBITDA: ₹27.93 crore (34.69% YoY growth from ₹20.74 crore)
  • EBITDA Margin: 29.61% (313 bps improvement from 26.65%)
  • Finance Cost: ₹0.04 crore (-31.40% YoY from ₹0.06 crore)
  • Profit Before Tax: ₹28.50 crore (35.19% YoY growth from ₹21.08 crore)
  • Profit After Tax: ₹23.00 crore (35.79% YoY growth from ₹16.93 crore)

Half-Yearly Performance (H1FY27 vs H1FY26)

  • Revenue from Operations: ₹178.19 crore (12.72% YoY growth from ₹158.08 crore)
  • Other Income: ₹0.23 crore (-49.58% YoY from ₹0.46 crore)
  • Total Income: ₹178.43 crore (12.32% YoY growth from ₹158.85 crore)
  • Total Operating Expenses: ₹129.22 crore (11.80% YoY growth from ₹115.59 crore)
  • EBITDA: ₹48.97 crore (15.23% YoY growth from ₹42.50 crore)
  • EBITDA Margin: 27.46% (60 bps improvement from 26.88%)
  • Finance Cost: ₹0.10 crore (-21.43% YoY from ₹0.13 crore)
  • Profit Before Tax: ₹46.55 crore (12.53% YoY growth from ₹41.38 crore)
  • Profit After Tax: ₹33.34 crore (9.48% YoY growth from ₹30.45 crore)

Management Commentary

Kapil Bhatia, Managing Director, commented on Q2FY27 performance:

  • Quarter was strong with 20.54% revenue growth and 35.79% PAT growth
  • Part of growth came from executing orders that could not be completed in Q1 due to raw material constraints from geopolitical situation
  • Expect to maintain current run-rate with strong demand and robust order position
  • Higher steel, oil and gas prices could pressure margins, factoring current input costs into tender bids

Business Segment Updates

Coil Springs

  • Tenders for 4,000 wagons finalized, expected to drive next leg of growth

Air Springs Business

  • Running at approximately 250 coach sets every month
  • Strong order book performance

Forging Business

  • Orders continue to flow in
  • Q2 growth driven entirely by railways
  • Taken up job work for automotive companies to raise capacity utilization
  • Margins on automotive work slightly lower but additional volumes improve utilization and reduce operating costs

FIBA System Development

  • Failure Indication and Brake Application (FIBA) system received RDSO approval
  • Expect trial order shortly
  • Following 6-8 month trial, expect commercial production to begin

Guidance Update

  • Supply constraints in Q1 set company back
  • Revised FY27 gross revenue guidance to at least ₹450 crore
  • Previously stated guidance was ₹500 crore
  • Company continues to work towards ₹500 crore target

Company Background

  • Founded in 1981, began as manufacturer of Leaf Springs and Laminated Bearing Springs
  • Currently produces Hot Coiled Compression Springs and forging items
  • Caters to Wagon, Locomotives, and Carriage sectors
  • Registered with RDSO since 1990
  • Manufacturing facilities in Kanpur, Uttar Pradesh and Poanta Sahib, Himachal Pradesh
  • Product portfolio includes forging items from 100 gm to 20 Kg
  • Recently expanded into production of Air Springs