Financial Performance Highlights (FY26 vs FY25)

Revenue Performance:

  • Revenue from Operations: ₹300.88 crore (FY26) vs ₹273.05 crore (FY25)
  • Year-over-Year Growth: 10% increase
  • Milestone: Revenue crossed ₹300 crore for the first time in company history

Profitability Metrics:

  • EBITDA: ₹32.67 crore (FY26) vs ₹36.61 crore (FY25)
  • EBITDA Decline: 11% decrease year-over-year
  • EBITDA Margin: 10.86% (FY26) vs 13.41% (FY25)
  • Margin Compression: 255 basis points decline
  • PAT: ₹10.51 crore (FY26) vs ₹14.16 crore (FY25)
  • PAT Decline: 26% decrease year-over-year

Capacity Expansion and Operational Update

Umbergaon Facility Expansion:

  • Current Capacity: 30,000 MT per annum
  • Expanded Capacity: 54,000 MT per annum (80% increase)
  • Total Installed Capacity Increase: From 36,000 MT to 54,000 MT (50% expansion)
  • Commercial Operations Start: Expected October 2026

Facility Consolidation:

  • Khopoli facility (6,000 MT per annum) proposed to be shut down in FY27
  • Operations to be consolidated at Umbergaon facility

Capacity Utilization:

  • FY26 Utilization: Nearly 90% capacity utilization maintained

Strategic Automation Plan:

  • Process automation and efficiency improvement plan adoption
  • Reduction of manual labor involvement through new technologies
  • Rooftop solar installation: Up to 1MW in two phases
  • Purpose: Accommodate rising power requirements from automation

Order Book and Business Development

Order Book Position:

  • March 31, 2026: ₹253 crore
  • March 31, 2025: ₹198 crore
  • Increase: Significant growth in order inflows

Executable Opportunity:

  • Total: ₹403 crore
  • Includes Order Pipeline: ₹150 crore

New Market Opportunities:

  • Actively exploring opportunities in exports, defence, and railways sectors

Key Factors Impacting H2 FY26 Performance

Margin Pressure Factors:

  • Restricted LPG supply
  • Rising prices of steel, consumables, paint
  • Elevated crude oil/LPG prices
  • Mitigation: Company procured paints and consumables for April and May in March 2026

Revenue Impact Factors:

  • Job-work arrangement for key client: Material supplied by client
  • Revenue impact: Approximately ₹40 crore lower than regular contract model
  • Labor shortage: 40% of required workforce not present at unit due to restricted volumes

Expansion Timeline:

  • Original plan: Deferred due to restricted LPG supply, manpower availability, and inflationary pressures
  • Customer orders: Some delayed as customers waited for normalization
  • New completion target: October 2026

Exceptional Items:

  • One-time exceptional loss: ₹1.65 crore

Cost Frontloading:

  • Rent and depreciation costs linked to capacity expansion frontloaded during period
  • Expansion benefits expected to flow from FY27 onwards
  • Khopoli unit: Planning to run down operations as smaller unit not viable for large complex orders

Operational Resilience

Despite challenging macro environment, the company maintained strong execution discipline and operated at nearly 90% capacity utilization, reflecting resilience in core operations.

Business Overview

Karbonsteel Engineering Limited is a leading manufacturer of heavy and precision steel structures catering to infrastructure, industrial, railway and engineering sectors. Specializes in fabrication of heavy steel structures, precision steel structures and steel bridge structures. Has RDSO-approved facilities.