Key Financial Figures and Performance Metrics

Scaffolding Division Performance:

  • Q4 FY26 revenue: Approximately INR680 crores (scaffolding) and INR660 crores (formwork)
  • One-time benefit: INR20 crores quantity discount from steel supplier (pertaining to previous quarters)
  • Adjusted scaffolding margin: Approximately 16-17% (excluding one-time benefit)
  • US business recovery: Strong resurgence since December 2025, continuing through June 2026
  • Middle East contribution: 15% of scaffolding division revenue in FY26

Drum Closure Division:

  • Stable performance with single-digit revenue growth
  • China market growing strongly, other countries growing at 4-5% in quantity and price
  • Volume comparison: Down by 10 lakh sets compared to March quarter last year due to tariff volatility
  • Plastic drum closure sales: INR35 crores for full FY26 with better margins than metal closures

Engineering Services Division:

  • Current quarterly revenue: INR80 crores
  • Growth rate: 8-10% every quarter
  • AI transformation: Heavy investment in reengineering services and product development
  • Billing model: Primarily headcount/hourly rate basis, some fixed price arrangements

Mach One (Formwork) Division:

  • Order book: 4.5 lakh square meters (exceeding 6 months production capacity)
  • Capacity utilization: 60-70% due to slow site mobilization
  • Competitive advantage: Only backward integrated aluminum formwork company with own extrusion plant
  • Export markets: South America (Brazil, Mexico, Colombia) contributing 3% of formwork volume

Textile Division:

  • Yarn EBITDA: 10% with INR46 crores annual depreciation
  • Fabric division: Under restructuring evaluation, considering outsourcing processing
  • Q1 FY27 expectation: Improved margins due to better yarn spreads

Operational Updates and Capacity

Capacity Utilization:

  • Aluminum extrusion plant: 100% utilization in FY26
  • Scaffolding division: Approximately 90% utilization
  • Mach One fabrication: Variable utilization based on site conditions

Capacity Expansion Plans:

  • Scaffolding: 10-15% capacity increase through debottlenecking in FY27
  • Formwork: INR150 crore capex planned for Aurangabad expansion towards end of FY27 (effect in FY28/FY29)
  • FY26 capex: INR110 crores spent on operational efficiencies and maintenance

Market and Demand Environment

Geographic Performance:

  • US market: Sustained demand resurgence since December 2025
  • EU market: Still dull post Russia-Ukraine war, Poland certification contributed 1.5% of scaffolding revenue
  • Tariff status: Scaffolding 50% under Section 232, drum closures 27.6% under Section 232

Raw Material Price Impact:

  • Steel prices: Increased 25% over last 3 months, successfully passed through to customers
  • Aluminum prices: Volatile but managed through variable pricing in contracts
  • Forex benefit: INR20 crores in Q4 FY26, INR46 crores for full FY26 due to rupee depreciation

Strategic Initiatives

AI Transformation:

  • Investing heavily in AI to create new services and products
  • Pivoting from traditional CAD services to digital transformation services (digital twins, automation platforms)
  • Impact: Top-line growth continuing but bottom-line may not grow proportionately due to investment costs

Defense Business:

  • No significant updates to share
  • Samples being developed with DRDO and defense department approvals
  • Currently not contributing meaningfully to revenues

Unallocated Costs:

  • High in Q4 due to reduction in mark-to-market value of investments

Management Commentary Outlook

  • FY27 outlook: Difficult to project due to volatile geopolitical conditions
  • Current quarter (June 2027): Confident of continuing similar performance trends
  • Real estate sector: Strong order inflow but execution delays affecting Mach One offtake
  • Competitive intensity: High in formwork but maintaining premium positioning