Financial Performance Highlights

Revenue Performance:

  • Q1 FY27 consolidated revenue: ₹108 crores
  • Represents 71% year-on-year growth
  • 32% sequential growth over Q4 FY26
  • Growth driven by strong customer procurement and Hobel Bellows acquisition

Margin Performance:

  • Consolidated gross margins: 65%
  • EBITDA margin: 36.5%
  • PAT: ₹28 crores
  • PAT margin: 24%
  • Year-on-year PAT growth: 46%
  • Sequential PAT growth: 7% over Q4 FY26

Other Financial Metrics:

  • Other income: ₹7 crores (reduced from ₹15 crores in Q4 FY26 due to treasury funds deployment for Hobel acquisition)
  • Employee cost: 15% of revenue
  • Operating expenses: 13% of revenue
  • Depreciation: ₹8 crores
  • Finance cost: ₹2 crores (working capital borrowings)
  • Annualized ROCE: 14.3%
  • Annualized ROE: 14.6%

Business Segment Performance

Revenue Mix:

  • Aero tooling: 76% of total revenue
  • Precision component and assembly businesses: 24% (includes nuclear, semiconductor, aerospace segments, and Hobel Bellows)
  • Hobel Bellows contribution: 21% of total revenue (only 2 months contribution as acquisition completed April 27, 2026)

Order Book & Pipeline:

  • Consolidated order book (including Hobel): ₹280 crores as of June 30, 2026
  • Nuclear order wins: ₹87 crores cumulative (execution planned in H2 FY27)
  • Completed 165 First Article Inspections (FAIs) during quarter
  • Engaged with 6 additional prospective customers

Strategic Developments & Contracts

FACC Austria Agreement:

  • Signed long-term supply agreement with FACC Austria (aerospace Tier-1 supplier)
  • Initial value: USD 7.5 million over 5-year period
  • Opportunities for scope expansion over time
  • Strategically significant as entry into recurring aerospace component supplies

Hobel Bellows Integration:

  • Acquisition completed April 27, 2026
  • Integration progressing well
  • AS9100 certification program initiated for Vizag facility
  • Targeting completion by Q4 FY27
  • Engaging with existing and prospective customers in locomotive and power generation industries
  • Two new customer discussions in advanced stages (technical evaluations and commercial submissions underway)

Saudi Joint Venture:

  • Joint venture with Yusuf Bin Ahmed Kanoo Group (Dheya Engineering Technologies)
  • Progressing toward operationalization
  • Establishing first manufacturing footprint outside India
  • Planning to infuse approximately USD 10 million into JV during August 2026
  • Gross block expected to double by end of FY27 primarily driven by Saudi JV investment

Operational Metrics

Capacity Utilization:

  • Manufacturing facilities operating at approximately 58% utilization
  • Additional 10% capacity committed to new product introduction and qualification programs

Working Capital:

  • Working capital days: approximately 130 days
  • Expected to increase to 160+ days by year-end due to new business acquisition and longer-cycle programs

Subcontracting Costs:

  • Remained low at approximately 3% of revenue

Employee Strength:

  • Total employees: 1,232

Outlook & Guidance

FY27 Expectations:

  • Management highly confident of delivering meaningful growth in FY27
  • Expect Q2 to be stronger with higher revenue and robust EBITDA margins
  • Full quarter (3 months) contribution from Hobel Bellows expected
  • Growing pipeline of opportunities across precision component business
  • Strong engagement from semiconductor and aerospace sector customers

Margin Guidance:

  • Expect consolidated EBITDA margins of 34%-35% for FY27
  • Gross margins expected to sustain around 65%

Capacity Expansion:

  • Additional capacity investment being advanced earlier than planned due to increasing customer inquiries
  • Core business capex not significant for FY27, but additional investments needed for future demand

Tariff Impact Mitigation

  • Free trade warehousing zone operational and strengthening ability to mitigate tariff-related disruptions
  • New engagements with European customers providing geographic diversification
  • Saudi manufacturing footprint hedging against trade volatility

Fundraising Plans

  • Board approved fundraising plan for QIP method up to ₹750 crores
  • Primary purpose: achieve minimum public shareholding requirement due in next 18 months
  • Secondary purpose: provide strategic flexibility for capacity expansion and potential M&A
  • Not an immediate fundraising, but enabling resolution

Dheya Engineering Technologies Update

  • Selected among top 100 deep-tech companies at Bharat Innovates platform in Nice, France
  • Part of Indian Prime Minister's delegation to France
  • Showcased indigenous micro gas turbine technology
  • Combustor development program with IISc Bangalore advancing
  • Developing next generation higher power rated engines
  • Looking to raise approximately USD 10 million through equity and debt
  • Unimech intends to participate in equity rounds
  • Exclusive manufacturing arrangement with Unimech remains unchanged