Key Financial Figures

Q2 FY27 Performance:

  • Total Income: INR467 crores (26.6% YoY growth)
  • EBITDA: INR100 crores (10.8% YoY growth)
  • EBITDA Margin: 21.3%
  • Profit After Tax: INR66 crores (7.8% YoY growth)
  • PAT Margin: 14.2%

H1 FY27 Performance (Record High):

  • Total Income: INR849 crores
  • EBITDA: INR189 crores
  • EBITDA Margin: 22.3%
  • PAT: INR127 crores
  • PAT Margin: 14.9%

Financial Position as of September 30, 2026:

  • Order Backlog: INR2,268 crores (72% from exports)
  • Net Cash Availability: INR384 crores
  • Debt-Free Status: Confirmed

Business Performance and Order Book Details

Order Backlog Composition:

  • Total Order Backlog: INR2,268 crores (highest in company history)
  • Space Sector Orders: ~INR1,100 crores
  • Standard vs. Complex Equipment: 30-40% standard products, 60-70% custom-built products

Major Order Wins in Q2:

  • Mega order for subcoolers from U.S. space company (16 subcoolers - 12 for LOX, 4 for methane)
  • INR60 crores from domestic players for transportation equipment, train tanks, and large storage tanks
  • 40+ LNG semi-trailers from various customers
  • INR14 crores for storage tank vaporization systems and unloading pump kits
  • LNG fueling station order from leading city gas distribution company
  • INR35 crores order for LIGO-India project (gravitational-wave observatory)
  • INR12 crores from European customer for TCWS piping prefabrication

Business Vertical Updates

Industrial Gas Solutions:

  • Liquid cylinder production ramped up significantly: 1,500 units dispatched in H1 FY27 (worth INR25 crores) vs. 1,600 in full previous year
  • Repeat orders received for disposable cylinders from U.S. market and DOT cylinders from existing customers

LNG Solutions:

  • Received 4 orders for LNG-powered railway applications (2 already dispatched)
  • Orders for vertical tank vaporizers for glass plant at Bharuch

Beverage Keg Business:

  • Q2 FY27 sales grew 446% year-on-year
  • Order book increased 155% year-on-year in Q2
  • Entered 3-year global supply agreement with leading global brewing company
  • 2027 requirement exceeds 4 lakh kegs across 22 countries (shared among multiple vendors)
  • 4 out of 5 targeted global beverage companies have approved INOX

Aerospace & Space Sector:

  • Order from leading Indian aerospace player for vertical storage tank
  • Dispatched 2 tanks for U.S. aerospace customer
  • Engaged with multiple private space companies in India

Semiconductor Opportunities:

  • Secured initial piping order for Tata Electronics' Dholera semiconductor facility
  • Submitted bids for larger project scopes (ultra-high purity gases and conventional bulk gases)
  • Results expected in 4-6 weeks

New Initiatives:

  • Inaugurated Orbital Welding Skill Excellence Center (SemiOrbit) at ITM SLS Baroda University
  • Partnership with Wayout for microfactory water treatment systems
  • First microfactory under manufacturing at Savli plant
  • Data center cooling prototype in design phase (6-8 months to conceptualize)
  • MRI machine prototype under trials
  • Oxygen tank for AIP system delivered to L&T for submarine testing

Execution and Manufacturing Update

Recent Dispatches:

  • Major equipment for Bahamas project
  • First 2 tanks for U.S. aerospace customer
  • Equipment for Eleuthera and Great Abaco projects
  • 5 tanks for Bahamas project

Manufacturing Capacity:

  • Savli facility has 50% space available
  • New facility at Kandla near port under construction (completion by March 2027)
  • 60-70% of welding and fabrication activities automated

Management Commentary and Outlook

Margin Guidance:

  • Q2 margin dip attributed to product mix, geopolitical uncertainties, and logistical costs
  • H1 EBITDA margin of 22.3% within expected range
  • Guidance maintained at 21-24% EBITDA margin range
  • Space sector margins expected to be better than standard products

Growth Projections:

  • Minimum 18-20% growth expected, potential for faster growth with larger opportunities
  • Space sector represents significant long-term opportunity
  • Semiconductor sector seen as major growth area with INR1.6 lakh crores government-approved projects

Q&A Session Highlights

Space Sector Execution Timeline:

  • 10-15% of U.S. space orders to be completed by March 2027 (FY27)
  • 80-90% expected to be completed in FY28

ISRO Opportunities:

  • Bid for semi-cryogenic engine test facility - awaiting results
  • Third launch pad tender expected in few months (estimated value ~INR3,850 crores + 10-15%)

LNG Terminal Projects:

  • Andaman Nicobar tender - technically qualified, commercial clarity expected in 2-3 weeks
  • Bids submitted for Indonesia projects

Skilled Manpower:

  • Training center established to supply 30-40 welders per month
  • Semiconductor industry requires significant skilled welding capacity (e.g., 5,000 welders in Singapore)

Capital Structure Impact

  • No dilution or significant capital structure changes reported
  • Company remains debt-free with strong cash position

Forward-looking Statements

  • Management expressed confidence in maintaining margin guidance
  • Expect continued growth across all business verticals
  • See opportunities in space, semiconductors, LNG, and water treatment sectors
  • Focus on operational discipline and customer commitments