Event Type: Q4 and FY26 Post Earnings Conference Call held on Friday, 22nd May, 2026 at 3:00 PM IST.

Management Participants:

  • Mr. Ankur Shah, Managing Director
  • Mr. Manish Shah, Chief Financial Officer

Financial Performance Highlights:

  • Q4 FY26 Revenue: INR 648 million, up 42.2% YoY
  • Q4 FY26 EBITDA: INR 161 million, up 55.1% YoY
  • Q4 FY26 EBITDA Margin: 24.8% (206 bps improvement YoY)
  • Q4 FY26 Net Profit: INR 128 million, up 72.9% YoY
  • Q4 FY26 Net Profit Margin: 19.7% (351 bps improvement YoY)
  • FY26 Revenue: INR 2,448 million, up 29.1% YoY
  • FY26 EBITDA: INR 520 million, up 69.9% YoY
  • FY26 EBITDA Margin: 21.3% (511 bps improvement YoY)
  • FY26 Net Profit: INR 413 million, up 85.6% YoY
  • FY26 Net Profit Margin: 16.9% (514 bps improvement YoY)

Operational Highlights:

  • Order book as of 31 March 2026: INR 1,034 million
  • Tender pipeline as of 31 March 2026: INR 2,210 million
  • Liquid reserves created: INR 650 million (reflected in non-current financial assets)
  • Cash balance: North of INR 100 crore

Business Updates and Strategic Initiatives:

  • Design win for aircraft arresting gear system
  • Expanded armoured steel profile range from 17 to 26 profiles
  • Received AS9100D certification (aerospace components)
  • Received IRS certification (commercial shipbuilding)
  • Purchased 50,000 sq ft plot for capacity expansion
  • Doubled bulb bar capacity from 2,500 tons to 4,500 tons in April 2025
  • Developed large castings for naval platforms
  • BV certification obtained
  • Migrated from SME board to main board in December
  • Under construction of India's largest AUV in partnership with Navy and DRDO
  • Transfer of technology from NIO Goa for C-Bot
  • MoU with Ministry of Steel for developing strategic steel under PLI scheme
  • New office building at Halol premises
  • 20% stake in Conceptia (ship and submarine design)
  • 40% stake in Waveoptix Defence Solutions (RF to optical fiber modules)
  • JV with Vabo Composite for composite fire-resistant doors and hatches
  • Investment in Taharabadkar Solutions (smart ammunition systems)

Growth Guidance and Outlook:

  • Management targets 30%+ revenue growth for FY27 and FY28
  • Margin expansion expected to continue due to product mix improvement and operational leverage
  • Growth primarily from existing defence products (bulb bars, weld consumables, armoured profiles)
  • New ventures (AUV, smart ammunition) are in development phase with revenue contribution expected in 2-3 years

Product Mix FY26:

  • Bulb bars: ~60%
  • Welding wires: ~15%
  • Armoured steel profiles: ~15%
  • Others: ~10%

Associate Company Performance FY26:

  • Conceptia: Revenue ~INR 80 crore, PAT ~INR 5 crore, order book INR 20-25 crore
  • Waveoptix: Revenue ~INR 22-23 crore, PAT ~INR 5-5.5 crore, order book ~INR 6 crore

Q&A Key Takeaways:

  • INR 65 crore liquid reserve reflected in non-current financial assets as long-term fixed deposits
  • JV with Vabo requires additional INR 4-5 crore funding, to be funded internally
  • Raw material inflation acknowledged but not expected to have substantial margin impact
  • Order book execution expected in FY27, with tender pipeline likely to fructify in first half
  • Navy has earmarked ~$1 billion for autonomous underwater platforms (AUV space)
  • Commercial shipbuilding inquiries showing uptick, company ready with certifications

Additional Notes Section

  • The document is a transcript of the earnings call submitted to NSE pursuant to Regulation 30 of SEBI LODR Regulations
  • The call contained forward-looking statements with inherent risks and uncertainties
  • The company adopted Ind AS for the first time for FY26 financials