Consolidated revenue stood at ₹1,217 crores, representing a growth of 19.84% year-on-year and remaining flat quarter-on-quarter.
EBITDA excluding other income was ₹218.47 crores, up 47% year-on-year and 5% quarter-on-quarter.
EBITDA margin improved to 17.96% from 17.11% in the previous quarter.
Profit before tax was ₹65.34 crores versus ₹23.9 crores year-on-year (172% growth).
Profit after tax was ₹46.88 crores versus ₹11.7 crores year-on-year (297% growth).
Gross margin improved significantly, though specific figures were not quantified in the disclosure.
Order Wins and Business Development
Secured new business worth ₹278 crores from the automobile segment with a program life of four years.
Won new orders worth ₹15 crores from the Metro segment of Indian Railways.
Of the ₹278 crores automobile orders, approximately 82% are from passenger vehicle segment and 18% from two-wheeler segment.
The company is witnessing encouraging traction across existing and new customer engagements.
Operational Updates and Capacity Utilization
The integration of casting operations has been substantially completed with focus on scaling production and improving operating efficiencies.
Production ramp-up across new forging and casting facilities continues as planned.
Cold forging capacity utilization expected to reach more than 70% by Q3 FY27.
Ring rolling capacity is currently at 127% utilization with no immediate plans for expansion.
Export Business Outlook
Company expects 35% of consolidated revenue to come from exports in FY27.
Targeting 20%+ growth in export business for FY27, which would be the highest ever export revenue for the company.
Both North American and European markets showing improved demand and constructive customer discussions.
Debt and Capital Allocation
Net debt reduced to ₹1,900 crores from ₹1,990 crores in the previous quarter (₹100 crore reduction).
Target to reduce net debt by ₹500 crores in FY27, aiming for approximately ₹1,500 crores by year-end.
Capex guidance for FY27 is approximately ₹350 crores.
Focus on prudent capital allocation and reducing leverage while maintaining growth investments.
New Ventures and Diversification Strategy
Expanding into non-ferrous products including aluminum, titanium, Inconel, and nimonic grades for aerospace, robotics, and semiconductors.
Already started aluminum forging and bulk supplies in aluminum forging.
Planning minimal capex of ₹10-20 crores for initial non-ferrous capabilities.
Meaningful contribution from aerospace/semiconductor segments expected in approximately 2 years.
Rail Wheel Joint Venture (RKTR)
Trial production has started at the rail wheel plant.
Planning to submit 300 wheel samples to Indian Railways in August 2026 for testing.
Expect bulk production to start by September-October 2026.
Confirmed order of 80,000 wheels from Indian Railways for passenger trains, locomotives, and Vande Bharat trains.
JV partners have obligation for approximately 25,000 additional wheels.
Total utilization expected to reach 110,000 wheels until FY28-end.
Mexico Operations
Mexico production has started with ₹6 crores revenue in Q1 FY27.
Significant revenue contribution expected from Q3 FY27 onwards.
ROCE Targets
Target ROCE of 12-15% for FY27.
Target ROCE of 20% for FY28.
Revenue Guidance and Growth Outlook
Company targets ₹8,000 crores revenue by FY29, representing 22-25% CAGR over three years.
Confident of sustained growth momentum across domestic and export markets.
Diversification into passenger vehicles, electric vehicles, and non-auto segments providing new growth levers.
Working Capital Management
Company achieved operational cash flow after working capital of approximately ₹840 crores in previous year (highest in history).
Targeting improvement in working capital days: 5-10 days reduction in debtor days, 5 days reduction in inventory days, and 10 days increase in creditor days.
Overall target of 15-20 days working capital improvement over time.
Risk Factors
Geopolitical issues causing shipping delays and working capital pressure.
Energy price volatility (significant cost component for forging operations).
