Financial Performance Highlights

Q4 FY26 Performance (Year-over-Year Comparison)

  • Turnover: ₹552.7 crores, representing growth of 34.63% against ₹410.56 crores in Q4 FY25
  • Value of Production: ₹392.19 crores, growth of 19.15% against ₹329.19 crores in Q4 FY25
  • Profit Before Tax (PBT): ₹107 crores, growth of 38.67% against ₹77.16 crores in Q4 FY25
  • Profit After Tax (PAT): ₹77.75 crores, growth of 38.49% against ₹56.14 crores in Q4 FY25

Full Year FY26 Performance

  • Annual Turnover: ₹1,208.63 crores, highest ever, growth of 12.52% against ₹1,074.1 crores in FY25
  • Annual PAT: ₹130.79 crores, growth of 18.82% against ₹110.07 crores in FY25

Operational and Strategic Achievements

Order Book Position

  • Order book as on April 1, 2026: ₹2,290 crores
  • Expected order booking for FY26-27: ₹1,500 crores

Production Milestones

  • Achieved highest ever titanium production of 700 tons, nearly doubling from previous years
  • Supplied 700+ ring-rolled rings of superalloys and titanium alloys for aero engines
  • Supplied 90 tons of armor-grade steel for presidential dais on January 26, 2026
  • Delivered 31 architectural titanium windows to Shri Ram Janmabhoomi at Ayodhya

Technical Certifications and Developments

  • Received airworthiness certificates for 10 critical aerospace grade super alloys and steel from CEMILAC (Centre for Military Airworthiness and Certification)
  • Obtained NADCAP certification for heat treatment, enabling direct procurement by OEMs
  • Developed cast superalloy single-crystal blade material that passed all customer tests
  • Inaugurated aerospace fastener manufacturing facility worth ₹40 crores capable of manufacturing superalloy and titanium alloy fasteners

Strategic Initiatives

  • Signed MOU with major stakeholders for creation of a metal bank to ensure uninterrupted supply of critical raw materials for defense projects
  • Metal bank expected to be operational within 3-4 months
  • Planning capex of approximately ₹1,000 crores over next 3 years for downstream operations equipment replacement
  • Funding preference: through internal resources (OR) and term loans

Business Segment Performance (FY25-26 Turnover Breakdown)

  • Space: ₹93 crores
  • Defense: ₹301 crores
  • Public Sector Enterprises: ₹603 crores
  • Energy: ₹2 crores
  • Others: ₹129 crores
  • Exports: ₹78 crores

Order Book Composition

  • Defense segment represents 79% of total order book

Management Guidance and Outlook

Revenue and Margin Expectations

  • Targetting 15% revenue growth year-on-year for FY27
  • Expecting EBITDA margins of 23-25% for FY27
  • Anticipating 20% bottom line growth corresponding to top line growth

Production and Capacity

  • Sufficient titanium production capacity exists beyond current 700 tons
  • Currently holding titanium orders worth over ₹660 crores
  • Expecting additional titanium orders

Export and Global OEM Opportunities

  • Multiple OEM audits in advanced stages
  • Expecting significant export growth in coming years
  • Targeting import substitution opportunities (₹8,000 crores worth of similar materials currently imported)

Specific Product Updates

ABHED Bullet Proof Jackets

  • Acquired technology from DRDO in association with IIT Delhi
  • Currently manufacturing and supplying to customers
  • Executed one order with OCTOPUS worth approximately ₹1 crore
  • Anticipating good orders for these lightweight jackets

Spring Plant for Vande Bharat

  • Engaged expert subcontractor to operate spring plant
  • Expected to be fully operational within 1-2 months
  • In discussions for orders, but no current orders

Powder Manufacturing Facility

  • Facing license clearance issues due to dual-use equipment nature
  • Expecting better clarity by next quarter

Fastener Manufacturing

  • Plant already inaugurated and operational
  • Expecting ₹20-30 crores annual order book from this sector
  • Distinct advantage as raw material manufacturer versus competitors who import wire
  • Long-term expectation: ₹25 crores stable annual revenue with high margins

Raw Material Supply Chain

  • Dependent on imports for critical high-purity raw materials (nickel, cobalt, molybdenum, tungsten, chromium, vanadium, rhenium)
  • Primary sourcing from Europe (by value), former USSR countries, East European countries, and occasionally USA
  • Facing some energy issues due to Middle East and European crises
  • Working to identify alternate vendors and establish supply chain stability

Participants in Conference Call

Management:

  • Dr. S.V.S. Narayana Murty – Chairman and Managing Director
  • Mrs. Madhubala Kalluri – Director Finance and Chief Financial Officer
  • Mr. Padavittan Babu – Director, Production and Marketing

Moderator:

  • Mr. Vikas Singh – ICICI Securities Limited

Forward-Looking Statements

Conference call contained forward-looking statements based on beliefs, opinions and expectations of the company as of June 3, 2026, with the disclaimer that these statements are not guarantees of future performance and involve risks and uncertainties.