This article first appeared on GuruFocus .
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Total Income (Q2 FY27):INR13.7 billion, up ~38% YoY from INR9.9 billion.
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Total Income (H1 FY27):INR26.6 billion, up 34% YoY from INR19.8 billion.
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Sales Volume (Q2 FY27):1,33,374 tonnes, up 18.1% YoY.
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Sales Volume (H1 FY27):2,56,093 tonnes, up 13.5% YoY.
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EBITDA (Q2 FY27):INR1.27 billion vs INR980 million in Q2 FY26, up 31% YoY.
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EBITDA (H1 FY27):INR2.67 billion vs INR1.93 billion in H1 FY26, up 38% YoY.
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EBITDA Margin (Q2 FY27):9.3% vs 9.8% in Q2 FY26; ~150 bps impact from higher international freight and gas/fuel costs.
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EBITDA Margin (H1 FY27):10% vs 9.8% in H1 FY26.
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PAT (Q2 FY27):INR506 million, up ~19% YoY from INR426 million.
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PAT (H1 FY27):INR1.2 billion, up 42.4% YoY from INR828 million.
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Export Revenue:Grew ~38% YoY in Q2 FY27; contributed ~28% of total volumes in H1 FY27.
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Working Capital:Cycle in days slightly lower than previous quarter and Q4 FY26.
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Defense & Aerospace:Aerospace component initiative estimated investment of INR80 crores with expected business benefit of ~INR180 crores; defense order revenue expected in later part of FY27.
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Release Date: October 31, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Goodluck India Ltd ( BOM:530655 ) reported strong Q2 FY27 consolidated total income growth of ~38% YoY to INR13.7 billion, with EBITDA up 31% and PAT up 19%.
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H1 FY27 performance was robust: total income grew 34%, EBITDA 38%, and net profit 42% YoY, showcasing underlying business strength.
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Sales volume increased 18.1% YoY in Q2 FY27 and 13.5% in H1 FY27, driven by higher value-added product mix and export growth.
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Export revenue surged 38% YoY in H1 FY27, contributing 28% of total volumes, with continued focus on expanding international markets.
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The proposed amalgamation of Goodluck Defence and Aerospace India Ltd and Goodluck Green Energy with Goodluck India Ltd aims to create a more integrated corporate structure, improving strategic alignment and efficiency.
Negative Points
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EBITDA margin declined to 9.3% in Q2 FY27 from 9.8% in Q2 FY26, impacted by higher international freight and fuel costs (150 bps impact).
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Defense order execution faces delays due to government approvals, validations, and geopolitical conditions, leading to revenue lumpiness and uncertainty in timing.
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Consolidated debt exceeds INR1,000 crores, with management targeting a leverage of around 2.5x EBITDA, indicating a relatively high debt level.
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Non-defense business capacity utilization is near 99%, limiting immediate volume growth potential until debottlenecking and expansions are completed.
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The defense business is subject to classified market data and volatile international conditions, making demand forecasting and capacity planning challenging.
Q & A Highlights
Q: What is the peak revenue potential once the defense capacity expands from 1.5 lakh to 4 lakh shells, and what margins can be expected? A: Ram Agarwal (CEO) stated that the peak revenue potential for the augmented 4 lakh shell capacity should be INR1,000 crores-plus, with an expected EBITDA margin of 30% to 35%. He indicated this scale could be reached by FY29, though ramp-up will take time after the plant is operational (expected in Q3 of the next financial year).
Q: What is the timeline for the proposed merger of Goodluck Defence and Goodluck Green Energy with Goodluck India? A: Ashok Kumar Vashisht (CFO) estimated the merger process will take 12 to 16 months due to necessary approvals from SEBI and NCLT. Ram Agarwal (CEO) confirmed the process is currently under progress, with valuation being handled by two Big Four firms.
Q: Can you provide an update on the defense order book and the execution timeline for FY27? A: Ram Agarwal (CEO) confirmed the company is confident of achieving its INR300 crores revenue guidance for FY27, with revenue expected in the later part of the year due to validation activities. He noted the order book is strong (including INR350 crores in stockpiling), but execution depends on government clearances and geopolitical conditions.
Q: Given the 99% capacity utilization in the non-defense business, what is the volume growth outlook for H2 FY27 and FY28? A: Ram Agarwal (CEO) stated that growth will be driven by debottlenecking and small expansions in precision tubes and galvanizing conduits. The company expects a volume growth of 15% to 20% year-on-year, with plans to increase non-defense capacity from 5 lakh to 6 lakh tonnes over the next 12 to 18 months.
Q: What was the margin impact from higher freight and fuel costs in Q2 FY27? A: Ashok Kumar Vashisht (CFO) reported that higher international freight costs and gas prices impacted the EBITDA margin by nearly 150 bps. Despite this, the company maintained a consolidated EBITDA margin of 9.3% for the quarter and 10% for H1 FY27.
Q: What is the current status of the aerospace business, and what is the opportunity size? A: Ram Agarwal (CEO) noted that the company is working with Safran, and its plants have been audited by Airbus and Boeing. The new aerospace component initiative involves an estimated investment of INR80 crores with an expected business benefit of INR180 crores over the next four to five years.
Q: What is the outlook on debt reduction and working capital management? A: Ashok Kumar Vashisht (CFO) stated that the company aims to maintain a debt level within 2.5x of EBITDA to support growth. He noted that the working capital cycle has improved by seven days compared to the March exit level, and the focus on efficient working capital management will continue.
Q: What is the capacity utilization of the hydraulic tube plant, and are there plans for further expansion? A: Ram Agarwal (CEO) stated that the hydraulic tube plant utilization has moved to 65%-70% and is expected to reach 75%-80% in H2 FY27. Decisions on further CapEx (e.g., another 50,000 tonnes) will be made after H2, depending on geopolitical conditions and construction equipment demand.
Q: Can you provide a breakdown of the value-added versus non-value-added business contribution? A: Ram Agarwal (CEO) explained that the value-added sector contributes 78% to EBITDA despite accounting for 68% of volume. The non-value-added sector contributes only 22% to EBITDA with 32% of the volume. Precision tubes (value-added) have EBITDA margins of 11%-13%, while normal CR tubes and pipes have margins of 3%-4%.
Q: What is the status of the Munitions India Limited (MIL) tender where Goodluck emerged as the sole technically qualified bidder? A: Ram Agarwal (CEO) clarified that the company has qualified as the sole bidder for a specialized 155 mm shell order but has not yet received the formal order. As MIL is a DPSU, specific details are classified, but the company expects supply to increase if MIL's exports grow.
Q: What is the status of the front fork tube and conduit pipe expansions? A: Ram Agarwal (CEO) stated that the front fork tube expansion is nearly complete and will yield results in Q4 FY27. The conduit pipe expansion is currently under erection and will be updated once operational.
Q: What is the overall capital investment in the defense sector? A: Ram Agarwal (CEO) confirmed that the capital investment in the defense side is INR300 crores-plus.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
