Management Participants

  • Mr. Umar Balwa – Managing Director
  • Mr. Firoz Chaudhary – Management Executive
  • Mr. Ratan Kandare – Chief Financial Officer

Financial Performance Highlights

Revenue Performance

  • Sales turnover for FY25-'26: ₹103 crores (compared to ₹101 crores previous year)
  • Year-on-year growth: 2%
  • Export contribution: 54.36% of total revenue
  • Domestic market contribution: 45.64% of total revenue

Profitability Metrics

  • Profit before tax: ₹14 crores (approximately 14% of total revenue)
  • EBITDA: ₹18.38 crores
  • EBITDA margin: 17.36% of total revenue (compared to 24% in previous year)

Business Segment Breakdown

Export Business Composition

  • Distributors: ₹40.29 crores
  • OEM sales: ₹14.5 crores
  • API seals project: ₹8.3 crores (45 single seals, 76 double seals)
  • Regular OEM business: ₹6.2 crores
  • End user: Approximately ₹1 crore

Domestic Business Composition

  • OEM sales: ₹36.25 crores
  • API seals projects: ₹11.2 crores (322 single seals, 142 double seals)
  • Non-API seals: ₹25.05 crores
  • End user: ₹11.26 crores

Strategic Initiatives and Operational Highlights

API Seal Deployment

  • Successfully secured and executing approximately 916 critical API seals for Middle East projects (UAE, Saudi, Oman, Kuwait, Iraq)
  • 686 mechanical seals already supplied
  • 230 seals currently under execution
  • Strategic pricing: Supplied below cost of raw materials to establish installed base
  • Investment in below-cost supply: ₹8 crores

Global Expansion and Marketing

  • Participated in 14 international exhibitions in FY26
  • Exhibition cost: ₹5 crores
  • Planned reduction to 5 exhibitions in FY27, expected savings of ₹3.5-4 crores
  • Established seals and service centers across India, Middle East, and through partners in Europe, USA, and South America

Key Customer Relationships

  • End users: ADNOC, KNPC, PDO, OQ, ROO
  • OEM partners: KSB, Sulzer, Sundyne, Ebara, Ruhrpumpen
  • EPC contractors: Saipem, Maire Tecnimont, Worley, Wood Group, PEG

Certification and Quality Achievements

  • Achieved ISO 3834-2 certification for welding processes
  • Total of 16 prestigious quality certifications including ISO 19443 for nuclear applications
  • Only Indian mechanical seal company with nuclear certification

Project Updates and Order Book

Middle East Projects

  • Geopolitical situation causing 7-month delays in commissioning
  • 20% of supplied seals (686 total) in commissioning stage
  • 70% expected to commence commissioning once situation stabilizes
  • Major projects in UAE (Abu Dhabi) and Iraq (Rumaila operations)

Mongol Project

  • 118 seals supplied
  • 53 seals under execution
  • Expected shipment completion by year-end

Indian Projects

  • Approximately 300 API seals installed across various sites
  • Ongoing commissioning at IOCL Panipat, IOCL Mathura, Barauni, Digboi, Talcher Fertilizers

Nuclear Business Development

  • Actively quoting for Kudankulam nuclear expansion in Tamil Nadu
  • Liaising with BHEL and other nuclear pump companies
  • Typical project timeline: 2-3 years from offer to order, 2 years execution, 1-2 years installation

Financial Guidance and Outlook

FY27 Projections

  • Revenue growth expectation: 15%
  • EBITDA margin target: 23-24%
  • Drivers of margin improvement:
  • Reduction in exhibition spending (₹3.5-4 crores savings)
  • Tapering of below-cost API seal investments
  • Selective API seal orders (300-350 seals planned)
  • Expected commencement of aftermarket business

Aftermarket Business Potential

  • Gross margins on replacement seals: Approximately 80%
  • Middle East pricing premium: 25% higher than India
  • Average seal value: ~$10,000 (single seal ~$7,000, double seal ~$12,000-14,000)
  • 700 installed seals represent ~$7 million potential aftermarket business
  • Expected commissioning timeline: From April 2027 onwards

Working Capital and Cash Flow

  • Inventory increased to ₹62 crores due to:
  • Delayed execution from geopolitical situation
  • Strategic stocking due to rare earth material injunctions from China
  • Operating cash flow negative in FY26
  • Expected improvement in FY27, significant positive cash flow by FY28

Order Book Status

  • Current order book better than same period last year (June 2026 vs June 2025)
  • Strong pipeline of new projects in Abu Dhabi, Saudi Arabia, Qatar despite delays

Geographic Market Dynamics

  • Middle East remains primary focus due to scale of oil & gas projects
  • India secondary focus market
  • Russia presenting opportunities due to Western company exits from sanctions
  • No currency hedging practiced

Defense and Nuclear Business

  • Ongoing interactions with Ministry of Defense and Indian Navy
  • Participation in submarine and naval seal projects
  • Development of critical imported seal indigenization
  • Bureaucratic processes causing extended timelines

Capital Structure Considerations

  • Current capital structure sufficient for near-term growth
  • Potential need for capital infusion if aggressive API seal strategy continues
  • Options include debt or other financing methods