This article first appeared on GuruFocus .
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Revenue (Standalone):INR170.5 crores, up 26.8% year-on-year from INR134.5 crores in Q1 FY26.
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Revenue (Consolidated):INR172.6 crores, up 25.9% year-on-year.
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EBITDA (Standalone):INR64 crores, up 32.1% year-on-year from INR48.5 crores.
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EBITDA Margin (Standalone):37.6%, expanding 150 basis points year-on-year from 36.1%.
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EBITDA (Consolidated):INR64.4 crores, with a margin of 37.3%.
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Profit After Tax (Standalone):INR36.4 crores, up 21.2% year-on-year from INR30 crores.
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Profit After Tax (Consolidated):INR35.2 crores.
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PAT Margin (Standalone):21.3%.
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Earnings Per Share (Standalone):INR5.63.
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Other Income:INR4 crores, down from INR9.1 crores in Q1 FY26 due to normalized foreign currency dynamics.
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Aerospace and Defense Segment Growth:Up approximately 38.4% year-on-year.
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Energy and Oil & Gas Segment Growth:Up 21.6% year-on-year.
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Release Date: August 08, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Successfully manufactured and delivered India's first indigenous turbojet engine to DRDO, marking a major technological milestone and moving up the value chain.
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Revenue grew 26.8% YoY to INR 170.5 crore, with EBITDA expanding 32.1% YoY and margins improving to 37.6%.
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Inaugurated a new 7,600 sqm dedicated facility for Baker Hughes, enhancing customer stickiness and long-term supply visibility.
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Aerospace and defense segment grew 38.4% YoY, reflecting increased share of wallet with global aviation majors.
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Cost indigenization program reduced raw material costs, improving margins and sustainability.
Negative Points
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Other income dropped sharply to INR 4 crore from INR 9.1 crore YoY due to volatile foreign currency dynamics, impacting net profit growth.
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Employee costs increased significantly to INR 42 crore from INR 29 crore, reflecting hiring ahead of revenue ramp-up.
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Working capital days are elevated at around 170-180 days, with finance costs expected to remain high until H2 FY27.
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Revenue growth of 26.8% is below some global peers, partly due to ongoing stabilization of new facilities.
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Management remains conservative with long-term guidance of 25%+ growth, despite potential for higher growth from new capacities.
Q & A Highlights
Q: Regarding the delivery of India's first indigenous turbojet engine, what is the roadmap for testing, certification, and production scale-up? A: Rakesh Chopdar (CEO) stated that the engine has been delivered to GTRE/DRDO and is currently under testing. The next phase involves weapon testing, expected within the next four to six weeks. Following successful testing and airworthiness certification, the engine will be ready for production. The company has been advised to prepare for a significant scale-up in production volumes, with potential volumes ranging from double-digit to possibly four-digit units. The company expects to have a clearer picture of exact volumes in the coming weeks.
Q: Can you provide details on the revenue potential of the new manufacturing facilities and the company's capacity expansion roadmap? A: Vishnu Malpani (Director) explained that the company is building eight dedicated customer plants at the Tumki Bolaram Industrial Park. Each plant, at full utilization, is poised to generate between INR 150-180 crores in revenue, which translates to roughly INR 1,200 crores from the newer plants alone. The civil construction for the remaining units is on track to be completed by the end of the fiscal year. The company is building capacity based on firm contracts and does not engage in speculative expansion.
Q: The company has guided for over 25% annual revenue growth. Given the new capacities and market tailwinds, should we expect a stronger growth trajectory, perhaps closer to 35% annually? A: Rakesh Chopdar (CEO) confirmed that the 25% plus guidance is based on the current situation and known commitments. He stated that as the company shifts to the next level of growth, they will change this guidance. The company is currently focused on stabilizing new facilities and expects a major breakthrough in revenue contribution from Q3 and Q4 of FY27.
Q: What is the timeline for the hot section manufacturing facility, and what is the market opportunity for this capability? A: Rakesh Chopdar (CEO) stated that the hot section facility, initially set up for Mitsubishi, is about seven to eight months away from being established. The same facility will also cater to the hot section of aviation engines. The company has already seen significant interest from other OEMs, who are waiting for the facility to be ready. This represents a massive market opportunity, as only a few players globally have cracked this technology, and the company expects to be the next one to do so.
Q: Can you explain the significant reduction in raw material costs as a percentage of sales, and is this sustainable? A: Ronak Jajoo (CFO) attributed the reduction to two factors: 1) The successful qualification of domestic suppliers like Sunflag and Istarwire for critical raw material grades, which has reduced both material costs and transportation costs compared to imports. 2) An increase in process content as the company scales up production. He expressed confidence that this margin improvement is sustainable in the coming quarters.
Q: What is the company's hedging policy for its export receivables? A: Ronak Jajoo (CFO) explained that the company uses a natural hedge strategy. This is achieved through foreign currency loans and, more importantly, through bill discounting lines. Once sales are booked, the company discounts the bills, which helps create a natural hedge. The company expects to have its entire export receivables covered by this natural hedge by Q4 of FY27.
Q: What are the main challenges or risks the company is currently facing? A: Vishnu Malpani (Director) stated that the primary challenge is execution. The company is simultaneously building factories, ramping up capacities, hiring and training people, and catering to existing contracts. While the company has the right customers, contracts, capital, and capabilities, the key is to successfully execute all these initiatives together to achieve its milestones.
Q: Can you provide an update on the Rolls-Royce contract for civil aircraft engine parts? A: Rakesh Chopdar (CEO) stated that the company is very close to delivering the first batch of qualification parts for the Rolls-Royce contract. The first delivery is expected within the current quarter (Q2 FY27).
Q: What is the company's strategy for talent acquisition and development, given the high-precision nature of its manufacturing? A: Vishnu Malpani (Director) explained that the company has a robust training program. They hire roughly 150-200 people every month and put them through a 60-90 day training program. New hires shadow senior resources before being deployed on the shop floor. The company is intentionally creating a bench strength of trained personnel to be quickly deployed as capacity ramps up.
Q: What are the expected margins for the turbojet engine program once production scales up? A: Rakesh Chopdar (CEO) stated that it is too early to provide a definitive margin figure, as the company has only just completed the first engine. He noted that it takes time to stabilize production costs and suggested that a more accurate assessment could be provided after producing the first five to six engines, which is expected within the next three to four months.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
