Financial Performance Highlights

Half Year Ended September 30, 2026 (H1 FY27):

  • Total Income: ₹192.00 crores (vs. ₹159.76 crores in H1 FY26, representing 20.2% growth)
  • PBDIT: ₹17.13 crores
  • PBDIT Margin: 8.9% (vs. 15.6% in H1 FY26)

Quarter Ended September 30, 2026 (Q2 FY27):

  • PBDIT Margin: 10.2% (vs. 15.7% in Q2 FY25)
  • Production growth: 25.8% year-on-year for first half
  • Revenue growth: 20.2% year-on-year for first half

Operational Metrics

  • Installed foundry capacity: 45,000 metric tons per annum
  • In-house machining capacity: 20,000 metric tons per annum
  • Current capacity utilization: 75% in H1 FY27
  • Projected full-year capacity utilization: 80% for FY27
  • Machine shop capacity utilization: 45-50% currently

Business Segments & Revenue Mix

Wind castings constitute 70% of portfolio, gearbox castings 15%, and non-wind segments 15%. The company works with 6 out of 15 leading global wind OEMs including Vestas, Envision, Siemens Gamesa, Nordex, and Adani.

H1 FY27 Revenue Streams:

  • Wind domestic segment: Strong performance
  • OEM exports: Performed in line with previous year
  • Direct exports: Expected growth in second half
  • Gearbox and non-wind segments: Steady performance

Guidance & Outlook

FY27 Projections:

  • Revenue growth: 33% over previous financial year
  • Export revenue growth: Over 50% year-on-year
  • Export contribution: Approximately 30% of total revenues
  • PBDIT margin expansion: Expected to increase by around 100 basis points year-on-year
  • H2 FY27 EBITDA margin target: 17-18%
  • Full-year revenue target: ₹500+ crores
  • Sequential quarterly revenue run rate: ₹150+ crores

Challenges & Headwinds

Input Cost Pressures:

  • 8% cost impact due to raw material price increases
  • Furan resin prices increased by 50%+
  • Commodity inflation affecting margins
  • Logistics costs increased threefold due to war disruptions
  • Insurance premiums significantly increased

Logistics & Inventory:

  • Shipping disruptions causing inventory buildup
  • Challenges in securing ship bookings for over-dimension consignments
  • Inventory carried at cost price, not yet recognized as revenue
  • October 2026 showing improved movement (60-70% started moving)

Strategic Developments

  • New order book with Nordex: Confirmed orders exceeding ₹200 crores for US exports
  • Captive solar power portfolio: 10MW capacity providing cost savings
  • Wind open access contracts helping mitigate electricity cost increases
  • Competitive advantage due to 25% rupee depreciation against Chinese RMB
  • Tariff advantages in US market compared to Chinese suppliers

Management Commentary

Executive Director V. Srinivasa Reddy emphasized strong demand fundamentals driven by:

  • AI-driven energy demand from data centers in US
  • Global renewable energy transition
  • US market reliance on Indian casting due to tariff barriers
  • Domestic market localization push reducing Chinese dependence

Expansion Plans

  • Greenfield expansion timeline: 15-18 months once initiated
  • Current focus on stabilizing existing capacity expansion
  • Target growth rate: 25-30% CAGR
  • Maximum revenue potential from current capacity: ₹600-650 crores
  • Capacity expansion constrained by skilled labor availability and execution capabilities

Regulatory & Cost Items

  • Maharashtra electricity tariff increased by 20% in April 2026
  • Retrospective electricity charges of approximately ₹3 crores impacted H1 results
  • These charges have been fully recovered and won't affect H2
  • 60% of electricity needs met through wind and solar combination

Capital Structure

  • Long-term borrowings: ₹176.21 crores
  • Focus on maintaining appropriate valuation for future capital raising
  • Depreciation charges affecting net profit despite EBITDA growth

Market Position

  • Strong competitive position in US market due to tariff advantages
  • Limited Chinese competition in Indian and US markets
  • Only three major foundries in India serving 15 global OEMs
  • Technology capabilities developed for 7-8 new products