H1 FY27 Revenue: Grew by 84% year-over-year compared to H1 FY26
EBITDA Margin: Improved to 13.5% from 11% in previous period, despite commodity inflation pressure
Full Year Guidance: Expected EBITDA margin of approximately 22% for FY27
Historical Growth: Company has consistently grown at 45% CAGR
Future Growth: Expected to maintain 40% CAGR revenue growth
Balance Sheet Updates
Share Capital: Slightly increased due to exercise of ESOP grants
Promoter Holding: Remained unchanged since IPO with no promoter selling
Current Liabilities: Increased due to higher short-term borrowing and CC limit utilization
Non-Current Assets: Increased due to capital expenditure for Hanbarwadi factory expansion
Inventory: Increased strategically from ₹54 crore to ₹80 crore to protect margins and ensure H2 deliveries
Trade Receivables: Increased from ₹105 crore to ₹128 crore, maintaining 252 days outstanding
Operational Highlights
Order Book Position: ₹200 crore as of September 2026 (started year at ₹270 crore)
Live Projects: 10 ongoing projects including fleet support ship (turnkey project)
Manufacturing Capacity: 70,000 sq ft total (50,000 sq ft new Unit 2 + 20,000 sq ft existing)
Land Bank: Additional 50,000 sq ft capacity available with land already leveled
Employee Strength: 370+ people across eight locations
Strategic Developments
SIDM Award: Won prestigious defence manufacturing award for indigenous submarine air conditioning system substitution, presented by Raksha Mantri Rajnath Singh
TASP Authorization: Appointed as Turbocor Authorized Service Partner by Danfoss for entire Indian market
Market Size: Defence segment opportunity of ₹3,000 crore over 3 years; shipbuilding overall market size ₹4,000-5,000 crore over 2 years
New Subsidiary: Aquilon for sub-zero temperature chillers targeting chemical, food and pharma industries
Capacity and Capabilities
Vertical Integration: Only company manufacturing complete HVAC systems including electrical control panels
Type Testing: 5 out of 6 AC plant capacities already type tested for naval platforms
Testing Facilities: Unit 1 (20,000 sq ft) being converted to testing facilities including tilt testing capability
Service Network: Teams positioned across all Indian Navy ports
Q&A Session Key Points
Revenue Mix: HVAC systems contribute higher percentage than AC plants; ref plants remain small percentage
Data Centre Strategy: No current orders; pursuing oil-free technology from Australian partner; servicing capability already established
Margin Outlook: Expect continued improvement through import substitution (reduced from 30%+ to single digits) and operational efficiencies
Order Pipeline: Eight orders in pipeline expected to convert in coming months
Working Capital: Days increased to 400 due to strategic inventory buildup to counter commodity inflation; target to reduce to 200 days
Cash Flow: Operating cash flow negative ₹42 crore in H1 due to inventory buildup; expected to turn positive by year-end
Capacity Expansion: Current capacity sufficient for 40% growth; land available for quick expansion if needed
NGC Project: Next Generation Corvette project (₹40,000 crore) recently cleared by CCS; expecting orders within financial year
Asset Turnover: High turnover due to general-purpose assets deployable across product lines
Legal Cases: No pending criminal cases against company or promoters
Management Commentary
Reiterated 40% CAGR growth guidance for coming years
Confident in maintaining market leadership in naval HVAC segment
Exploring diversification into data centers and industrial cooling segments
Focus on reducing working capital cycle and improving cash conversion
Committed to supporting products through entire lifecycle with extensive service network
