Revenue from operations: ₹124.82 crores, representing 17% growth from ₹106.69 crores in Q1 FY26
EBITDA: ₹35.24 crores, representing 17.37% growth from ₹30.02 crores in Q1 FY26
EBITDA margin: 28.23% (vs 28.14% in Q1 FY26)
PAT: ₹23.71 crores, representing 19.26% growth from ₹19.88 crores in Q1 FY26
PAT margin: 19% (vs 18.64% in Q1 FY26)
Production volume: 4,700 tons for the quarter
Capacity utilization: 66% in Q1 FY27, with full-year FY27 target of 63%
Export contribution: 62% of production by volume in Q1 FY27
Strategic Updates and Capacity Expansion
Greenfield Foundry: Board approved establishment of new foundry with 8,500 tons capacity
Investment: Approximately ₹120 crores over next 2 years
Target commissioning: March 31, 2028 (FY28)
Revenue potential: Approximately ₹300 crores from new facility
Product range: Steel castings from 5 kg to 1,000 kg across existing application sectors
Location: 12 kilometers from existing facility, on 100,000 sqm land provided by Gujarat government
Renewable Energy Projects
2.4 MW hybrid power plant: Wind and solar combination
1.4 MW solar power plant
Expected commissioning: Before December 31, 2026
Purpose: Reduce carbon emissions and support increasing production requirements
Market and Demand Environment
Order book: ₹140 crores as of call date (representing 3-4 months visibility)
Growth guidance: 25% volume growth expected for FY27 vs FY26
Long-term target: Approximately 20% CAGR over coming years
Segment contribution: Mining (27%), Earthmoving (43%), Construction (15%), Other sectors (15%)
Geographic mix: Typically 45-50% exports, with U.S. and Germany constituting 70% of exports
New parts development: Over 100 new parts developed in last 18-24 months, expected to contribute 20% of revenues over next 2-3 years
Price Adjustment Mechanism
Effective date: July 1, 2026 for major price corrections
Basis: Sales price variation formula with all customers
Coverage: All major raw material cost increases will be passed through
Lag period: Typically one quarter for price adjustments (both increases and decreases)
Product Segment Focus
Ground Engaging Tools (GET): Current contribution <1%, expected to reach 3.5% in FY27 and 4.5-5% by FY29
Defense: Current contribution 1%, limited focus due to better opportunities in other sectors
U.S. Railroad: Strategy changed, not actively pursuing currently due to better opportunities elsewhere
Operational Metrics
Employee strength: Increased by 32 employees (3% growth) as per annual report
Raw material sourcing: High-strength, low-alloy steels from specialized suppliers (not from ship breaking)
Currency hedging: Rupee depreciation/appreciation shared with customers through pricing mechanisms
Capital Structure and Funding
Debt status: Company remains debt-free
Funding strategy: Capex to be funded through internal cash accruals (₹120 crores reserves as of March 2026)
Dividend/Bonus: Management will consider bonus issue suggestion in forthcoming Board meeting
Management Commentary
Sequential improvement: Expected in top line for coming quarters
Margin outlook: Expected to improve due to operating leverage and price increases, potentially reaching 28.5-29% (150-200 bps improvement from FY26's 27%)
Demand drivers: Robust across all 9 sectors served, supported by infrastructure spending, manufacturing localization, and global supply chain diversification
Risk management: Continued derisking through customer and geographic diversification (now serving 16 countries vs 2 countries 10 years ago)
