Q4 FY26 Revenue from Operations: INR133 crores (vs. INR70 crores in Q4 FY25, +89% YoY)
Full Year FY26 Revenue: INR313 crores (vs. INR212 crores in FY25, +48% YoY)
Full Year FY26 Profit After Tax: INR12.44 crores
Consolidated Performance:
Q4 FY26 Revenue from Operations: INR192 crores (vs. INR78 crores in Q4 FY25, +146% YoY)
Full Year FY26 Revenue: INR358 crores
Full Year FY26 Profit After Tax: INR12.76 crores
Key Operational and Strategic Updates
Business Performance Context:
FY2026 marked by strong commercial momentum and transformative capital market milestone
Q4 FY26 achieved highest quarterly standalone and consolidated revenue in company history
Performance driven by international market strategy and execution capabilities
Business operated against backdrop of elevated global volatility including geopolitical disruptions, currency fluctuations, supply chain pressures, and higher freight costs
West Asia crisis added to logistics costs and currency uncertainty in key markets
Demand for construction and mining equipment remained resilient due to infrastructure spending, industrial capex, and replacement demand across emerging markets
Geographic Diversification:
Export-led business model provides access to diversified international markets
Active presence across Latin America, Africa, Middle East, and other geographies
South Africa emerged as strong contributor during the year
Markets served include Mexico, Australia, UK, Europe, and various African countries
Conscious strategy to diversify product and customer base to mitigate geopolitical risks
Strategic Initiatives:
Positioned inventory closer to international markets and customers to improve delivery capability and customer responsiveness
Group maintained strategically positioned inventory exceeding INR50 crores as of March 31, 2026
Inventory intended to improve delivery timelines, enhance customer responsiveness, and support retail-oriented opportunities
Onboarded experienced senior professionals across global operations, international sales, and regional leadership roles
Organizational restructuring with elevation of Abhinav Jain to Managing Director and CEO
HexL Brand Development:
Continued investment in product development, dealer network expansion, and market establishment activities for HexL brand
FY26 HexL contribution: 5% of consolidated revenue (4.9-5%), 7% of standalone revenue
Target for FY27: Increase HexL contribution to 11-12% of revenue
Unit sales target for FY27: Approximately 150 units
Long-term target margins for HexL: 12-14% PAT
Initial margins lower due to volumes, marketing costs, promotions, and inventory holding costs
Capital Market Activity:
Successful listing on BSE and NSE was defining event for the company
IPO proceeds deployed toward international market development, inventory positioning, team building, organizational strengthening, and brand building
Consolidated net worth increased from INR86 crores to INR194 crores post-IPO
Strengthened balance sheet enhanced banking relationships and working capital access
Market Context and Business Model
Market Size Opportunity:
Total market size: INR1 lakh crores or USD133 billion for used construction equipment (per CareEdge 2024 report)
Expected to grow to INR16 lakh crores or USD177 billion globally
Company claims largest market share among Indian companies exporting used construction equipment
Business Model Composition:
5% revenue from HexL branded products (consolidated basis)
62% revenue from customized machines of other brands
35% revenue from refurbished used construction equipment
97% of revenue derived from exports
Company recognized as three-star export house by Government of India
Working Capital and Cash Flow:
Increase in working capital attributable to higher business volumes, overseas inventory positioning, and longer export operating cycles
Current working capital: INR300-350 crores
Working capital requirement: Approximately INR200-250 crores for every INR100 crores revenue growth
Cash conversion cycle currently extended due to brand building initiatives and market penetration
Expect improvement in cash conversion cycle in subsequent years as brand establishes
Management Outlook and Guidance
Revenue Targets:
Vision and target of INR600-700 crores revenue in next 2.5-3 years
No specific guidance for FY27 due to current geopolitical uncertainty
Growth Drivers:
Middle East reconstruction expected to be strong demand driver
Mexico showing strong quarter performance and growth opportunities
South Africa and other African markets providing sustainable offset
Market diversification strategy proving beneficial during geopolitical disruptions
Profitability Factors:
Profitability impacted in FY26 by higher employee benefit expenses, organizational costs, HexL investments, and elevated logistics expenses
Expect profitability improvement with normalization of Middle East market and logistics costs
Medium-term target: 5-7% PAT on consolidated level
Used construction equipment target margins: 12-14% PAT
New construction equipment of other brands: 2-4% margins
Competitive Advantages:
Family legacy of 50+ years in mining construction equipment space
Mechanical engineering expertise of management team
Established trust and reputation in export markets
