Financial Performance Overview

Consolidated Financial Results (₹ lakhs):

| Particulars | Q4 FY26 | Q3 FY26 | Q4 FY25 | FY26 | FY25 |

| Revenue from Operations | 19,199.54 | 4,392.53 | 7,804.69 | 35,756.15 | 38,055.81 |

| Profit After Tax (PAT) | 1,167.36 | (987.19) | 101.66 | 1,275.57 | 1,914.00 |

Standalone Financial Performance:

  • Q4 FY26 standalone turnover: ₹13,305.64 lakhs (highest ever quarterly)
  • Q4 FY25 standalone turnover: ₹7,037.76 lakhs
  • Year-on-year growth: 89%
  • Quarter-on-quarter growth: 47%
  • FY26 standalone turnover: ₹31,337.61 lakhs
  • FY25 standalone turnover: ₹21,185.92 lakhs
  • Annual growth: 48%

Business Performance Drivers

Growth during FY26 was supported by:

  • Stronger execution across export markets
  • Increased customer engagement
  • Improved operational throughput across Latin America, Africa, Middle East and other international markets
  • Geographic diversification with increasing contribution from South Africa and other international markets
  • Strategic inventory positioning closer to international markets and customers
  • Reduced concentration risk across the portfolio

The construction and mining equipment export business involves longer working capital cycles due to:

  • Shipment timelines
  • Overseas inventory positioning
  • Refurbishment processes
  • Customer-specific execution requirements

Profitability and Margin Analysis

Q4 FY26 Profitability Drivers:

  • Successful realization of inventory positioned across the Group during earlier quarters
  • Reversal of timing difference between expense recognition and profit recognition
  • Strategically positioned inventory in excess of ₹50 crore as at March 31, 2026

Full-Year Profitability Impacts:

  • Strategic investments in organizational strengthening
  • International market development
  • HexL brand-building initiatives
  • Higher logistics and execution costs from geopolitical developments and supply-chain disruptions
  • Lower other income
  • Non-cash accounting impacts recognized under applicable accounting standards

Key Factors Affecting Profitability:

  • 35% increase in employee benefit expenses due to organizational strengthening and leadership hiring across operations, sales, execution, finance, marketing and international business development
  • Increased expenditure towards international marketing, exhibitions, overseas business development and HexL brand strengthening
  • Higher logistics, freight and execution-related costs from geopolitical developments and supply-chain disruptions, particularly across Middle East trade corridors
  • One-time listing and IPO-related expenses charged to Statement of Profit and Loss
  • Lower other income due to foreign exchange fluctuation gain/loss and mark-to-market impact of investment valuations

Treasury and Risk Management:

  • Company undertakes back-to-back hedging of receivables and foreign exchange exposures
  • Sharp movement in foreign exchange rates towards year-end resulted in notional mark-to-market impact on hedged positions
  • Volatility in capital markets during March 2026 resulted in temporary non-cash mark-to-market impact on investment valuations
  • Improvement in market conditions during April 2026 resulted in partial recovery in valuation levels

Organisational Strengthening and Growth Initiatives

Leadership and Hiring:

  • Ongoing hiring process across operations, procurement, execution, logistics, accounting, finance, marketing, international sales and business development
  • Experienced professionals onboarded including Global Head Operations, Global Sales Head, Regional Sales Managers for Latin America, MENA, Africa & CIS, Territory Sales Manager for MENA
  • Mr. Abhinav Jain elevated to Managing Director and Chief Executive Officer

Brand Development:

  • Continued investments in strengthening HexL brand through market development initiatives
  • Increased marketing activities, dealer expansion and wider geographic penetration
  • IPO funds deployed towards international market development, inventory positioning, team expansion, marketing initiatives and HexL brand development

Balance Sheet Strength and Capital Structure

Post-IPO Strengthening:

  • Capital base strengthened supporting higher business scale and improved financial flexibility
  • Improved debt-equity levels following IPO
  • Enhanced banking facilities and working capital limits
  • Enables management of longer export cycles and response to market opportunities

Strategic Positioning:

  • Focus on disciplined capital allocation
  • Operational strengthening
  • Geographic diversification
  • Long-term value creation across businesses and international markets

Market Context

FY26 witnessed elevated volatility across global markets due to:

  • Geopolitical developments
  • Supply-side disruptions
  • Higher freight costs
  • Commodity inflation
  • Currency fluctuations
  • Escalation of West Asia crisis leading to sharp increases in crude and crude-linked commodity prices, logistics disruptions and continued rupee depreciation

Construction and mining equipment industry continued healthy demand supported by:

  • Infrastructure spending
  • Mining activity
  • Industrial capex
  • Replacement demand across emerging markets
  • Shipment delays and global supply-chain adjustments continued to impact operating cycles