Key Quantitative Figures (Q1 FY27 Consolidated)

  • Operating Income: INR 701 crores (20% YoY increase)
  • EBITDA: INR 32 crores (49% YoY decrease)
  • EBITDA Margin: 4.54%
  • Net Profit (PAT): INR 3 crores
  • PAT Margin: 0.44%

Segmental Performance (Q1 FY27)

The company reclassified its reporting structure from three to five segments.

  • Treatment Solutions (formerly part of Engineering): Revenue of INR 210 crores (14% YoY growth). Segment EBIT loss of INR 17 crores. Profitability continues to be impacted by execution challenges on certain legacy projects. Dispatches to GCC regions have resumed.
  • Industrial Products (formerly part of Engineering): Revenue of INR 105 crores (14% YoY growth). Segment EBIT of INR 13 crores (145% YoY increase). EBIT margin improved to 11.89% from <6% in Q1 FY26. Growth was supported by water treatment solutions and membranes.
  • Lifecycle Services (formerly part of Engineering): Revenue of INR 72 crores (28% YoY growth). Segment EBIT of INR 7 crores (22% YoY growth). EBIT margin was 9.92% (vs. 10.55% in Q1 FY26), primarily reflecting higher input costs. Focus is on scaling O&M, consumables, retrofits, and BOO/BOOT models.
  • Specialty Chemicals: Revenue of INR 230 crores (21% YoY growth). Segment EBIT of INR 22 crores (52% YoY decrease). Profitability was impacted by geopolitical factors and higher costs associated with the new Roha facility. Pharma resins and process chemicals are key growth areas.
  • Consumer Products: Revenue of INR 112 crores (33% YoY growth). Segment loss of INR 0.34 crores (improved from a loss of INR 0.45 crores in Q1 FY26). Growth was broad-based across product lines.

Order Book & Pipeline

  • Order Book (as of June 30, 2026): INR 2,473 crores.
  • Bid Pipeline: INR 9,777 crores.
  • Recent Win (post-quarter): A contract from Hyundai valued at approximately $52 million (~INR 435 crores) was announced. The company's contractual liability is FOB Mumbai.

Strategic Update: Segment Reclassification Rationale

The management provided a detailed rationale for splitting the former "Engineering" segment into three new segments (Treatment Solutions, Industrial Products, Lifecycle Services) to offer investors greater transparency. The driving factors include:

  • Significant investments over the past 6-7 years to build scale across various business lines.
  • A strategic pivot beyond EPC projects towards advanced/emerging solutions, industrial products, and lifecycle services.
  • The new structure reflects that approximately 60% of the company will comprise products, chemicals, and services (repeatable revenue), while Treatment Solutions will be ~40%.

Capacity Expansion & Capex Details

  • Roha Resin Plant: A 5x expansion of ion exchange resin capacity. The plant is commissioned and undergoing stabilization. It establishes India's first non-solvent resin manufacturing facility and an integrated spent acid recovery plant (a global first). The impact of this plant on the chemicals segment margin in Q1 was approximately 6%.
  • Ankleshwar Pharma Resins: A 6x capacity expansion plan is underway and expected to be completed within the next 12 months. This is an FDA-approved facility focused on high-value, specialty-grade resins.
  • Goa Membrane Plant: A 3x business growth plan. The company is building a comprehensive range of membranes (RO, UF, NF, MBR) and has a strategic partnership with MANN+HUMMEL for UF PVDF technology. A second plant for UF/MBR is coming up.
  • Standard Plants: Capacities have been expanded multiple times across factories in Hosur, Goa, and Wada.

Legacy Project Update

Profitability in the Treatment Solutions segment is primarily impacted by a few large legacy projects, notably a project in Uttar Pradesh (UP).

  • The unexecuted portion of the UP project constitutes ~11% of the total order backlog (INR 272 crore out of INR 2,473 crore).
  • Execution is calibrated based on fund inflows from the government, which have been constrained but showed improvement in the last three months.
  • The project is now expected to spill over into the next financial year (FY28).
  • There is at least one other large legacy project besides UP, with a "significant part" of the work expected to be completed in FY27.

Guidance & Outlook Commentary

  • Roha Plant: Management continues to target 25% utilization in its first year of operation but acknowledges a softer start due to geopolitics. A review will be held after Q2.
  • Consumer Products: The objective is to break even in FY27.
  • Profitability: The goal is to restore double-digit profitability over time by improving the mix towards less risky, higher-margin businesses (products, chemicals, services, advanced solutions) and as legacy projects conclude.
  • International Growth: The company is building local leadership in key global regions (Americas, APAC, MEA, Europe) and has secured certifications like WQA for the North American market to support growth from overseas capacity offtake.

Geopolitical & Raw Material Impact

  • Geopolitical tensions have impacted invoicing and input costs.
  • Raw material costs (petrochemical monomers, amines) increased but are showing signs of moderation with softening crude oil prices (from over $100 to ~$80). There is a time lag in passing these cost increases to customers.

Participants

Management participants on the call included Mr. Aankur Patni (Vice Chairman), Mr. Indraneel Dutt (Managing Director & CEO), Mr. Vasant Naik (Group CFO), and Mrs. Nikisha Solanki (Company Secretary). The call was moderated by Valorem Advisors.