Financial Performance Highlights

Revenue and Profitability

  • Revenue from operations: ₹300.88 Cr in FY26 vs ₹273.05 Cr in FY25 (+10.2% YoY)
  • EBITDA: ₹32.67 Cr in FY26 vs ₹36.61 Cr in FY25 (-10.8% YoY)
  • EBITDA Margin: 10.86% in FY26 vs 13.41% in FY25 (-255 bps)
  • PAT: ₹10.51 Cr in FY26 vs ₹14.16 Cr in FY25 (-25.8% YoY)
  • PAT Margin: 3.49% in FY26 vs 5.19% in FY25 (-170 bps)
  • Earnings Per Share: ₹8.22 in FY26 vs ₹12.78 in FY25

Normalized PAT Adjustment

Reported PAT was impacted by several one-time/expansion-related costs:

  • ₹1.65 Cr bad debt write-off
  • ₹2.40 Cr rental cost for capacity expansion
  • ₹1.84 Cr one-time rundown cost for Khopoli plant consolidation
  • Normalized PAT after adjusting for these costs: ₹16.56 Cr (57.6% higher than reported PAT)

Operational Performance

  • Installed Capacity: 30,000 MTPA
  • Capacity Utilization: 95.23%
  • Capacity Utilized: 28,567.84 MT

Order Book and Pipeline

  • Confirmed Order Book (as of May 26, 2026): ₹353 Cr
  • Active Order Pipeline: ₹150 Cr under consideration
  • Total Executable Opportunities: ₹650 Cr (including order book and pipeline)
  • Order composition includes Heavy Steel Structures, Precision/Technological Structures, and Bridge Structures

Capacity Expansion Strategy

  • Umbergaon facility expansion from 30,000 MTPA to 54,000 MTPA by October 2026
  • Khopoli facility (6,000 MTPA) planned for shutdown in FY26-27
  • Expansion expected to create revenue opportunity of ₹540+ Cr at average realization of ₹100/kg
  • Manufacturing space: 80,000 sq. m. at Umbergaon

Automation Initiatives

Company is investing in automation to drive efficiency:

  • HD Plasma Cutting Machine: Faster cutting cycles, reduced gas dependency
  • Automatic Beam Fit-Up & Welding Centre: Improved productivity and weld quality
  • Automatic Blasting Facility: Enhanced throughput and surface quality
  • Expected benefits: 15% labor efficiency improvement, ~25% labor cost reduction, significantly reduced gas/consumable dependency
  • Margin improvement of approximately 1% expected from FY28

Product-wise Revenue Contribution

  • Technological Structures: 27.00% (vs 22.00% in FY25)
  • Steel Bridge Structures: 3.34% (vs 2.00% in FY25)
  • PEB (Pre-Engineered Buildings): 0.74% (vs 0.00% in FY25)
  • Trading of Goods: 0.06% (vs 0.00% in FY25)
  • Company has transitioned to 100% pure-play manufacturing, eliminating low-margin commodity trading

Key Clientele

Includes Arcelor Mittal Nippon Steel India Limited, Tata Projects Limited, John Cockerill India Limited, Ray Engineering Private Limited, JSW Severfield Structures Limited, and Panametrics Engineering Private Limited.

Manufacturing Facilities and Certifications

  • Flagship facility at Umbergaon, Gujarat: 8.56 lakh sq. ft., RDSO-approved
  • ISO 9001:2015 (Quality Management) and ISO 14001:2015 (Environmental Management) certifications
  • Capabilities include processing diverse steel grades (E250, E350, E450, Hardox, galvanized steel)

IPO Proceeds Utilization (as of March 31, 2026)

The company completed its IPO on September 16, 2025, on BSE SME platform:

  • Fresh Issue: 30,39,600 Equity Shares aggregating ₹48.33 Cr
  • Offer for Sale: 6,90,000 Equity Shares by Promoter Selling Shareholders
  • Paid-up capital increased from ₹11.10 Cr to ₹14.14 Cr

Utilization of fresh issue proceeds:

  • Umbergaon facility expansion: ₹7.38 Cr utilized of ₹12.29 Cr allocated
  • Borrowing repayment: ₹3.03 Cr utilized of ₹3.08 Cr allocated
  • Working capital: ₹25.02 Cr utilized of ₹25.25 Cr allocated
  • General corporate purpose: ₹3.10 Cr utilized of ₹4.30 Cr allocated

Corporate Governance

Board Composition

  • Mr. Shrenik Kirit Shah: Chairman & Managing Director
  • Mrs. Mittal Shrenik Shah: Whole Time Director
  • Mr. Saurabh Bhansali: Non-Executive Director
  • Mr. Mihen Halani: Independent Director
  • Mr. Sunil Kathariya: Independent Director

Board Meetings

  • 13 meetings held during FY25-26
  • All directors attended the last AGM

Key Managerial Personnel

  • Mr. Ganesh Bhandary: Chief Financial Officer
  • Ms. Siddhi Parmar: Company Secretary & Compliance Officer (appointed w.e.f July 1, 2025)

CSR Expenditure

  • Average net profit of last three years: ₹12.92 Cr
  • Required CSR expenditure (2% of average profit): ₹25.84 lakh
  • Actual CSR spent: ₹26.50 lakh
  • Focus areas: Child education, environment protection, medical assistance, rural development

Key Financial Ratios

  • Current Ratio: 1.46 (vs 1.23 in FY25)
  • Debt Equity Ratio: 0.48 (vs 1.19 in FY25)
  • Return on Equity: 7% (vs 17% in FY25)
  • Inventory Turnover Ratio: 1.94 (vs 1.95 in FY25)
  • Trade Receivables Turnover Ratio: 1.36 (vs 1.27 in FY25)

AGM Details

  • 15th Annual General Meeting scheduled for Wednesday, September 23, 2026 at 3:00 PM IST via Video Conference/OAVM
  • Business to be transacted:

1. Adoption of audited financial statements

2. Re-appointment of Mr. Shrenik Kirit Shah as Managing Director

3. Ratification of cost auditor remuneration for FY26-27 (₹17,000 + GST)

4. Creation of securities for borrowings up to ₹400 Cr

5. Approval for borrowing limits up to ₹400 Cr

Risk Factors

  • Temporary operational headwinds including gas availability constraints, raw material cost inflation, and labor constraints
  • Margin pressure due to input cost inflation and one-time expenses
  • Execution challenges during capacity expansion phase