Key Financial Performance

Q2 FY27 Consolidated Performance:

  • Revenue from operations: ₹346.7 crores (15.3% QoQ growth)
  • EBITDA: ₹39 crores (72.3% QoQ growth)
  • EBITDA margin: 11.2%
  • Profit after tax: ₹16 crores (680% QoQ growth)
  • PAT margin: 4.6%

H1 FY27 Consolidated Performance:

  • Revenue: ₹647.4 crores (2% YoY growth from ₹634.7 crores)
  • EBITDA: ₹61.6 crores (23% YoY de-growth from ₹80 crores)
  • EBITDA margin: 9.5%

Segment-wise Performance Q2 FY27

  • Filtration, drying and other equipment: ₹102 crores revenue (5.4% QoQ growth from ₹96.8 crores)
  • Glass lined equipment: ₹195.4 crores revenue (24.2% YoY growth)
  • Heat transfer equipment: ₹48.8 crores revenue (362.3% QoQ growth, 12.3% YoY de-growth)

Order Book Position

As of September 30, 2026, consolidated order book stood at ₹1,087.3 crores, representing:

  • 51% year-on-year growth
  • 64% quarter-on-quarter growth (from ₹662 crores as of June 30, 2026)
  • First time crossing ₹1,000 crores mark in company history

Significant Order Highlights

  • Step-down subsidiary HLE Surface Technologies GmbH secured landmark order worth approximately EUR20.56 million (₹210-220 crores) for vitreous enamel cladding panels for the Fehmarnbelt tunnel connecting Germany and Denmark
  • Delivery period: 3-3.5 years, starting early to mid 2027
  • THALETEC products contributed approximately 22% of overall glass lined product business in India during Q2

Working Capital and Balance Sheet

  • Net working capital days increased to 102 days (from 80 days in FY26) in line with order book expansion
  • Company maintains disciplined financial approach with focus on working capital optimization and prudent capital allocation
  • Total debt: ₹350 crores (mentioned as manageable)

Expansion Plans

  • New plant being set up near Anand, Gujarat for heavy engineering equipment
  • Focus on equipment exceeding 100-150 tons, 4.5-5 meters diameter, 15-20 meters length
  • Applications: energy sector, oil and gas, petrochemicals, renewable energy
  • Expected EBITDA margins: 15-18% initially, potentially reaching 22% at maturity

Subsidiary Performance

THALETEC Germany H1 FY27:

  • Revenue: ₹192 crores
  • EBITDA margin: approximately 11.5%

Omeras (HLE Surface Technologies):

  • Achieved EBITDA breakeven in H1 FY27
  • PBT marginally negative due to interest and depreciation
  • Target: EUR20 million annual revenue for serious profitability, EUR25-30 million for double-digit EBITDA margins

Management Guidance and Outlook

  • FY28 revenue target: ₹2,000 crores maintained
  • FY28 EBITDA margin target: 15% maintained
  • Expected India GLE business revenue for FY27: ₹260-280 crores
  • Historical peak margins: 18% EBITDA at ₹300 crores revenue levels
  • Expected sustainable margins by segment:
  • Kinam: 16%
  • Filtration and drying: 16%
  • Glass lined equipment India: 12-14%
  • THALETEC: 12-14%

Demand Environment

  • India: Strong demand in API and specialty chemical sectors
  • Europe: Slightly subdued demand
  • US: High demand
  • Pharmaceutical industry showing good order flows with 4-7 month execution cycle

Operational Updates

  • Omeras Germany enhanced capabilities with new Chief Operations Officer (from American multinational), new CFO, enhanced design team, and expanded sales teams
  • Strategic sourcing from India being increased to mitigate European cost pressures
  • Customer delivery acceptances were postponed in Q1/Q2 due to geopolitical disturbances affecting dispatch timing

Capital Allocation Strategy

  • Management focused on consolidation rather than new acquisitions
  • Debt considered manageable and not an area of concern
  • Open to strategic opportunities in core areas if they arise