Isgec Heavy Engineering Q1 FY27 Revenue Up 51%

Total income increased 51% year-on-year to ₹1,585 crores
Profit Before Tax (PBT) increased 10% to ₹123 crores compared to ₹112 crores in Q1 FY26
EBIT grew 15% to ₹157 crores
Export revenue was ₹385 crores, representing 25% of total revenue (up from 15% in Q1 FY26)
Industrial Projects segment showed higher income due to improved order execution
Manufacturing segment showed higher income due to dispatch of a large US order (₹130 crores) that was previously on hold

Net borrowings reduced substantially to ₹240 crores as of June 30, 2026, from ₹381 crores as of March 31, 2026, and ₹408 crores as of June 30, 2025
Net fund position improved by ₹140 crores during the quarter
Company invested ₹47 crores in capital expenditure from internal generation

No significant impact on existing order bookings from current geopolitical developments
Export/import logistics costs increased with longer transit times
Some material costs increased due to war, having small adverse effect on profitability
Commodity prices (steel, copper, aluminium, nickel) stabilized but remain slightly above pre-war levels
Shipping experiencing delays, reduced availability, elevated freight rates
Most increased costs expected to be absorbed through normal contingency provisions

Consolidated orders in hand as of June 30, 2026: ₹8,958 crores
Total income: ₹1,993 crores, 45% higher than ₹1,374 crores in Q1 FY25 (restated)
Higher revenue in Isgec standalone and Isgec Hitachi Zosen, lower in Saraswati Sugar Mills
Consolidated EBITDA: ₹137 crores (almost same as Q1 FY25)
Consolidated PBT: ₹53 crores, 18% higher than restated ₹45 crores in Q1 FY25
Philippines business accounting shifted to continuing operations from held for sale classification in March 2026

Commercial production started December 17, 2025, using sugarcane feedstock
Sugarcane crushing concluded April 20, 2026; now operating on molasses feedstock
Running at 65-70% capacity utilization
Q1 segment loss: ₹83 crores
₹37 crores attributable to depreciation
₹20 crores attributable to interest
₹10 crores attributable to Forex fluctuations
Balance from unrecovered fixed costs
Produced 10.5 million liters of ethanol, sold 8+ million liters
Department of Energy allocations received for continued production
Expected to reach 90% capacity utilization by December 2026
Expected substantially lower losses in Q2 FY27

Isgec Hitachi Zosen: Expected 10% revenue growth to ~₹737 crores (from ₹670 crores last year) with 10% profit improvement
Saraswati Sugar Mills: Revenue expected to be down due to lower cane availability last season
Eagle Press: Expected ~₹150 crores annual revenue
Isgec Titan Metal: Expected ~₹150 crores annual revenue (up from ₹102 crores last year)

Total manufacturing capacity investment approved: ₹502 crores
Machine building division at Bhartauli, Haryana:
Phase 1 (₹73 crores investment) completing first week of September 2026 with annual revenue potential of ₹225 crores
Major phase (₹218 crores investment) expected completion end calendar 2027 or Q1 calendar 2028
Process module facility at Dahej SEZ, Gujarat: Expected completion May 31, 2027
Total additional revenue potential when fully complete: ₹1,200 crores per year (full benefit from 2028-29)

Revenue growth guidance: 10-12%
Manufacturing EBIT margins: 12-13% range
Projects business EBIT margins: 5-6% range (slight improvement)
New division created: Global Industrial Services and Solutions within Industrial Projects business for O&M, retrofit, modernization, services, spares, and digitization

Management emphasized conservative growth guidance due to order execution carrying forward to next financial year
Q2 FY27 expected run rate: Projects business ~₹1,000 crores, Manufacturing segment similar to Q1 levels
Weaker Indian rupee (₹95) supporting improved realizations on future export orders
Focus on shorter duration projects (max 2.5-3 years vs previous 4+ years), technology-intensive orders, and exports
Philippines plant depreciation expected to be ~₹95 crores for FY27 total (WDV method)
Contract manufacturing business growing across defense, nuclear, hydro, and steel industries