Key Financial Figures (FY26)

Profit & Loss Statement (Amounts in ₹ Lakhs):

  • Revenue: ₹30,087.75
  • Other Income: ₹81.70
  • Total Income: ₹30,169.45 (10% YoY growth)
  • Cost of Materials Consumed: ₹20,983.02
  • Employee Benefits Expense: ₹1,222.10
  • Finance Costs: ₹1,531.03
  • Depreciation: ₹363.56
  • Other Expenses: ₹4,615.36
  • Total Expenditure: ₹28,715.07
  • EBITDA: ₹3,267.27 (-11% YoY)
  • PBT: ₹1,454.38
  • Tax: ₹403.60
  • PAT: ₹1,050.78 (-26% YoY)

Balance Sheet (Amounts in ₹ Lakhs):

  • Total Equity: ₹11,513.78 (comprising Equity ₹1,414.18 and Reserves ₹10,099.60)
  • Long-Term Borrowings: ₹1,013.77
  • Short-Term Borrowings: ₹4,521.05
  • Trade Payables: ₹7,300.02
  • Total Equity & Liabilities: ₹25,740.33
  • Fixed Assets: ₹6,192.28
  • Inventories: ₹10,521.94
  • Trade Receivables: ₹5,027.14
  • Cash & Bank Balance: ₹1,868.42
  • Total Assets: ₹25,740.33

Operational Metrics & Performance Drivers

Operational Volume:

  • Fabrication volume: 29,011 MT (+7.1% YoY)
  • Labour volume: 5,890 MT (+340.1% YoY)
  • Total volume: 34,900 MT (+22.8% YoY)

Capacity Utilization:

  • Umbergaon Facility: 95.23% (28,567.84 MT of 30,000 MT capacity)
  • Khopoli Facility: 86.83% (2,605.15 MT of 6,000 MT capacity)

Factors Impacting H2 FY26 Performance:

1. Margin Pressure: A 20-day LPG (cutting gas) supply disruption in March led to a buildup of unfinished inventory. Rising costs of steel, consumables, paint, crude oil, and LPG pressured operating margins.

2. Revenue Impact: A portion of work for a key client was executed on a jobwork basis (client-supplied material). Under a regular contract model, revenue would have been approximately ₹40 crore higher. A labour shortage occurred due to the West Bengal Election, with 40% of the required workforce absent.

3. Expansion Delay: The expansion at the Umbergaon plant was deferred due to restricted LPG supply, manpower availability, and inflationary pressures. It is now expected to be completed by October 2026.

4. Exceptional Loss: A bad debt write-off of ₹1.65 crore was recorded during FY26.

5. Frontloaded Costs: Rent and depreciation costs linked to the planned capacity expansion were incurred in FY26, though the benefits will flow from FY27 onwards. The company is also planning to run down operations at its Khopoli unit.

Business Overview & Strategy

Company Profile: Karbonsteel Engineering Limited is a structural engineering and fabrication company engaged in the design, manufacturing, and assembly of heavy and precision steel structures for industrial and infrastructure sectors.

Manufacturing Facilities:

  • Umbergaon, Gujarat: Plot No. 17, Om Industrial Park, Near Coastal Road, GIDC. Area: 8.56 lakh sq. ft. Installed Capacity: 30,000 MT per annum. Certifications: ISO 9001:2015, ISO 14001:2015. RDSO Approved for fabrication of composite & plate steel bridge girders.
  • Khopoli: Installed Capacity: 6,000 MT per annum.

Business Verticals & Revenue Mix (FY26):

  • Heavy Steel Structures: 76.00% of Revenue
  • Precision Steel Structures or Technological Structures: 22.00% of Revenue
  • Steel Bridge Structures: 2.00% of Revenue
  • PEB (Pre-Engineered Buildings): 0.00% of Revenue
  • Others (Scrap Sales): 0.00% of Revenue
  • Trading of Goods: 0.00% of Revenue

Expansion Plans:

  • The installed capacity at the Umbergaon facility is being expanded from 30,000 MTPA to 54,000 MTPA.
  • The expansion is expected to commence from October 2026.
  • Shed 1 will be dedicated to railway infrastructure components (FOBs, ROBs, steel bridge girders).
  • Shed 2 is designed as a double-bay shed with a straight-line production layout.

Order Book & Pipeline:

  • The order book increased from ₹198 crores (as of March 2025) to ₹353 crores (as of May 2026).
  • An additional order pipeline of ₹150 crores was noted as of May 31, 2026.
  • Total executable opportunities were stated to be ₹650 crores.
  • A notable project includes an award for 10,000 MT of steel bridge structures for the MAHSR bullet train corridor.

Automation Initiative:

The company is undertaking automation and sustainability initiatives expected to drive a 1% improvement in operating margins from FY28. Cited benefits include a 15% improvement in labour efficiency, a 25% reduction in labour costs on automated processes, significantly reduced gas/consumable dependency, and higher output quality consistency.

Management & Governance

Leadership Team:

  • Mr. Shrenik Kirit Shah: Managing Director & Whole Time Director (B.Com, IMBA, 19+ years in steel industry)
  • Mittal Shrenik Shah: (BMS, PG e-MBA, 6+ years experience)
  • Saurabh Bhansali: Non-Executive Director (Chartered Accountant, internal audit and risk specialist)
  • Mihen Jyotindra Halani: Independent Director (Company Secretary, corporate governance & compliance expert)
  • Sunil Kathariya: Independent Director (Ex Sr. Executive VP)
  • Satish thakkar: Technical Director

Company Secretary & Compliance Officer: Siddhi Bharat Parmar (ACS 60563)

Corporate Identity

Registered Office Address: B-8; Ratnadeep Cosmopolitan CHS Ltd, 140-141 S.V. Road, Nr. Shoppers Stop, Andheri (W), Mumbai, Maharashtra, India-400058.

Contact: Tel: +91-22-61872821; Email: info@karbonsteel.com; Website: https://www.karbonsteel.com/