Financial Performance (Standalone)

Quarterly Results (Q1 FY27 vs Q1 FY26):

  • Revenue from operations: ₹55.46 crore, up 15.4% YoY (down 6.6% QoQ from Q4 FY26)
  • Total income: ₹55.77 crore, up 15.4% YoY
  • EBITDA: ₹9.92 crore, up 11.6% YoY
  • EBITDA margin: 17.79% (vs 18.39% in Q1 FY26)
  • Profit before tax: ₹1.41 crore, up 96.7% YoY
  • Profit after tax: ₹1.01 crore, up 121.7% YoY
  • Basic EPS: ₹0.49 (vs ₹0.23 in Q1 FY26)

Cost Structure Analysis:

  • Cost of goods sold: ₹25.06 crore, up 13.5% YoY
  • Employee benefit expenses: ₹10.95 crore, up 14.7% YoY
  • Other expenses: ₹9.84 crore, up 26.0% YoY
  • Finance cost: ₹4.65 crore, up 5.7% YoY
  • Depreciation: ₹3.86 crore, up 2.3% YoY
  • Effective tax rate: 28.5% (vs 36.6% in Q1 FY26), with ₹0.35 crore of the ₹0.40 crore tax charge being deferred tax
  • Raw materials: 62.7% of revenue (vs 47.2% a year ago)
  • Inventory build: ₹9.72 crore (17.5% of quarter's revenue)

Segment Performance

Machinery Division:

  • Revenue: ₹40.22 crore, down 13.2% YoY, down 23.8% QoQ
  • PBIT: ₹5.15 crore, down 16.8% YoY, down 36.7% QoQ
  • PBIT margin: 12.8% (vs 15.4% in Q4 FY26, 13.3% in Q1 FY26)
  • Capital employed: ₹173.89 crore, up 9.0% QoQ

Defence & Components Division:

  • Revenue: ₹15.55 crore, up 693% YoY, up 122% QoQ
  • PBIT: ₹2.15 crore, up 1,854% YoY, up 2,971% QoQ
  • PBIT margin: 13.8% (vs 1.1% in Q4 FY26, 5.4% in Q1 FY26)
  • Capital employed: ₹91.67 crore, up 33.4% QoQ
  • Segment contribution: 27.9% of total revenue (vs 4.1% in Q1 FY26, 11.7% in Q4 FY26)

Regulatory Update

  • OFAC delisting effective June 30, 2026 (final day of Q1 FY27)
  • Delisting restores: USD and EUR banking channels, ability to transact with US persons, access to US financial system, European and US export markets
  • Company continues working with legal counsel to maintain compliance with OFAC regulations and international trade laws

Capital Structure & Financing

  • Total capital employed: ₹265.55 crore, up 16.3% QoQ
  • Preferential equity infusion during Q1 FY27: ₹23.62 crore through allotment of 13.00 lakh equity shares and 27.78 lakh convertible warrants at ₹181.71 per share
  • July 11, 2026: 5.00 lakh warrants converted into equity shares, bringing paid-up share count to 2,17,96,770 shares, infusion of ₹6.81 crore
  • As of August 12, 2026: 22.78 lakh warrants outstanding, convertible within 18 months of allotment, potential additional infusion of ₹31.04 crore on full conversion

Order Book & Business Outlook

  • Order book as of August 12, 2026: ₹271.00 crore (exceeds FY26 total revenue by ₹61.38 crore)
  • Defence comprises 36.2% of order book
  • ₹58.21 crore order received on July 15, 2026 from Ministry of Defence (Army) for 7.62 mm medium machine gun modification kits
  • GPM (General Purpose Machines) represents 38% of order book with low lead time (converts to revenue within the year)

Company Background

  • Established: 1983
  • Market capitalization: ₹766 crore (as of August 10, 2026)
  • Employees: 545+
  • Manufacturing units: 6 across Hyderabad and Pune
  • Export presence: 7+ countries
  • Clients: 5,000+
  • Product offerings: 100+
  • Certifications: AS 9100 and ISO 9000

Product Portfolio

Machine Tools Division: General Purpose Machines (CNC turning centres, machining centers), Special Purpose Machines, Automation solutions

Auto Components & Defence Division: Auto components (cylinder blocks, heads, connecting rods, forgings), Defence products (9x19 machine pistol, 7.62x51 LMG/GPMG/MMG)

Marquee Clients

Machine Tools: John Deere, Ashok Leyland, Tata Motors, Mahindra, Honda, Cummins, etc.

Defence: Northern Command, Assam Rifles, CISF, SSB, NSG, BSF, DRDO, Small Arms Factory Kanpur

Forward Outlook

1. Maximizing production capacities across divisions

2. Expanding into new markets and reopened export markets

3. Increasing Defence division revenue through expanded capacity and new product lines

4. Accelerating ESG initiatives