Key Financial Figures

Standalone Performance Q1 FY27 vs Q1 FY26:

  • Income from operations: INR 1,205.94 crores (vs INR 983.29 crores previous year)
  • EBITDA: INR 110.53 crores (vs INR 95.78 crores), increased by 15%
  • Profit after tax (including other comprehensive income): INR 49.66 crores (vs INR 40.14 crores)
  • Earnings per share: INR 14.94 per share (vs INR 12.62 per share)
  • Volume: 122,718 metric tons (8.8% YoY increase)
  • Capacity utilization: 98%
  • EBITDA per metric ton: INR 9,000

Consolidated Performance Q1 FY27 vs Q1 FY26:

  • Total income: INR 1,287.44 crores (vs INR 983.29 crores), 31% growth
  • EBITDA: INR 139.66 crores (vs INR 95.80 crores), 46% growth
  • PAT: INR 67.22 crores, 67% growth
  • Earnings per share: INR 19.13 per share (vs INR 12.62 per share), 52% growth

Operational Highlights

Defence Business Developments:

  • Goodluck Defence and Aerospace Limited received order of INR 255 crores for 155 mm long-range ready-to-fill empty shells (50,000 shells) to be executed over 10 months
  • Additional order of INR 52 crores for 20,000 155 mm shells to be executed over 3 months
  • Received DGQA quality assurance certificate for 107 Ready-to-Fill artillery shells
  • Current production capacity: 150,000 shells per annum
  • Defence revenue target for FY27: INR 300-350 crores with 30-35% EBITDA margins
  • Defence expansion delayed by 6-9 months due to financial closure and regulatory approvals
  • Planned capex for Defence: INR 400 crores
  • Expected IPO timeline: Approximately 18 months from August 2026

Recent Fundraising:

  • Defence subsidiary raised INR 285 crores through preferential issue at INR 375 per share
  • Pre-issue outstanding shares: 4.91 crores
  • Issued 0.75 crores shares
  • Post-issue total shares: 5.66 crores

Segment Margin Guidance:

  • Precision Tubes: 12-13% EBITDA margins
  • Pipe and CR: 3-5% EBITDA margins
  • Solar: 7-8% EBITDA margins
  • Infrastructure: 10-11% EBITDA margins
  • Forging: 12-13% EBITDA margins

Growth Drivers and Market Position:

  • 30%+ market share in solar support structures sector
  • Transmission line towers production: 50,000 tons annually
  • Export business serving customers across 100+ countries
  • Specialized tube sector doing INR 1,000+ crores turnover, aiming to double in 4-5 years
  • Recent development of 245 mm OD into 17 mm size hydraulic tube as import substitute

Capacity Expansion:

  • GI pipes, precision pipes and infrastructure capacity addition of 40,000-45,000 metric tons during FY27
  • Standalone capex: INR 100-150 crores

Management Guidance

  • Revenue growth guidance maintained at 15-20% for FY27
  • Defence expansion expected to start commercial production by Q4 FY28
  • Expanded Defence plant capacity: 400,000 shells (achievable capacity: 350,000 shells at 90% utilization)
  • Target overall realization: INR 9,000 per ton (currently around INR 7,000 per ton)

Risk Factors Mentioned

  • High input cost risk due to geopolitical tensions and petroleum product volatility
  • Logistic cost fluctuations due to West Asia crisis
  • Regulatory approval timelines for Defence projects
  • Geopolitical uncertainty affecting export orders

Participants in Earnings Call

Management:

  • Mr. M. C. Garg - Chairman
  • Mr. Ram Aggarwal - Chief Executive Officer
  • Mr. Sanjay Bansal - Chief Financial Officer

Moderator:

  • Mr. Vinay Pandit - Kaptify Consulting Limited