Standalone Financial Performance
Quarter Ended September 2026:
- Revenue from operations: ₹1,457 crore (17% YoY growth)
- Total income (including other income): ₹1,521 crore
- Profit before tax: ₹154 crore (39% YoY growth)
- Profit from business operations (excluding subsidiary transactions): ₹124 crore (38% YoY growth)
Half Year Ended September 2026:
- Revenue from operations: ₹3,010 crore (35% YoY growth)
- Total income: ₹3,106 crore
- Profit before tax: ₹277 crore (24% YoY growth)
- Profit from business operations: ₹244 crore (44% YoY growth)
Segment Performance
Manufacturing Business:
- EBIT margin: 13.7% for Q2 FY27 (exceeding guidance range of 12-13%)
Projects Business:
- EBIT margin: 5.7% for Q2 FY27 (approaching target of 6%)
Order Book & Business Development
Standalone:
- Order booking for H1 FY27: ₹4,844 crore
- Order book as of September 30, 2026: ₹8,757 crore (all-time high)
Export Performance:
- Q2 FY27 export revenue: ₹172 crore (11% of total income vs ₹90 crore same quarter last year)
- H1 FY27 export revenue: ₹557 crore (18% of total income vs ₹425 crore H1 FY26)
Consolidated Performance
Overall:
- Consolidated order book: ₹10,273 crore (all-time high)
- Q2 FY27 total income: ₹1,860 crore (10% YoY growth)
- H1 FY27 total income: ₹3,853 crore (25% YoY growth)
- Q2 FY27 profit before tax: ₹102 crore (100% YoY growth from restated ₹51 crore)
- H1 FY27 profit before tax: ₹155 crore (62% YoY growth from restated ₹96 crore)
Subsidiary Performance:
- Isgec Hitachi Zosen: Order book of ₹1,161 crore (₹800 crore export orders), H1 order booking of ₹678 crore
- Saraswati Sugar Mills: Lower revenue due to reduced cane availability and production
Philippines Ethanol Plant (Cavite Biofuels)
Operational Status:
- Commercial production started December 17, 2025 using sugarcane feedstock
- Sugarcane crushing concluded April 20, 2026
- Currently operating on molasses feedstock at 65-70% capacity
- Plant under seasonal repair/maintenance, restart expected December 2026
Financial Impact:
- H1 FY27 segment loss: ₹164 crore (including interest)
- Q2 FY27 PBIT loss: ₹60 crore (includes ₹41 crore forex loss)
- Depreciation: ₹8 crore per quarter for Q3 and Q4 FY27 (reduced from previous higher charges)
- Interest income to standalone: ₹18 crore in Q2, ₹38 crore in H1
- 3 million litres of ethanol stock unsold at quarter end
Capital Expenditure & Expansion
Current Program:
- Total investment: ₹502 crore for manufacturing capacity expansion
- Cumulative spend: ₹199 crore funded from internal accruals
- Expansion includes new plants at Bhartoli (Haryana), Dahej SEZ (Gujarat), and capacity enhancements at existing facilities
- Expected incremental revenue: ₹1,200 crore
- Partial contribution expected in FY27 (<₹100 crore), major contribution from FY28
Balance Sheet & Funding
Standalone:
- Net borrowings: ₹206 crore as of September 30, 2026 (reduced from ₹381 crore on March 31, 2026)
- Fund position improved by ₹175 crore during H1
Consolidated:
- Net borrowings: ₹156 crore as of September 30, 2026 (reduced from ₹476 crore on March 31, 2026)
Market Conditions & Challenges
Commodity Prices:
- Steel, copper, aluminium, and nickel prices fluctuated up to 10% during quarter
- Slight reduction in October 2026
Logistics Impact:
- Shipping delays and reduced availability of ships/containers
- Sharply higher freight rates and surcharges
- No significant supply disruption reported
Geopolitical Impact:
- Middle East conflicts caused material cost increases
- Small adverse effect on profitability
- Most increased costs absorbed through contingency provisions
Guidance & Outlook
Standalone FY27:
- Revenue growth: 15-17%
- Manufacturing EBIT margin: 12-13% range
- Projects EBIT margin: ~6% by year-end
Subsidiaries:
- Isgec Hitachi Zosen: Expected 7-8% revenue growth and 5-7% profit growth YoY
- Philippines plant: Expected 90% capacity utilization in Q4 FY27, potential for positive EBITDA
Management Commentary
- Domestic market strong across all product lines
- Healthy export inquiries from Latin America and Africa
- Weaker Indian rupee supporting export competitiveness
- Strategy focused on shorter cycle, technology-oriented projects
- Evaluating additional capex beyond current ₹502 crore program