This article first appeared on GuruFocus .
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Standalone Revenue Growth:4.2% to INR5,229 crores.
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Standalone PBT Growth:17% to INR455 crores.
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Manufacturing EBIT Margins:12.46%.
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Project Business EBIT Margin:4.58%.
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Export Revenue:INR1,169 crores, 22% of total revenue, more than doubled year on year.
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Dividend:INR6 per share, up 20% from last year.
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Consolidated EBITDA:INR671 crores, 19% higher than last year.
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Consolidated PAT:INR154 crores, 25% lower than last year.
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Net Borrowings:Improved to INR476 crores from INR836 crores last year.
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Capital Expenditure:INR153 crores.
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New Orders Booked:INR1,400 crores in the first two months of the current quarter.
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Release Date: May 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Standalone revenue grew by 4.2% to INR5,229 crores, with a strong Q4 recovery.
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Export revenue more than doubled year on year, reaching INR1,169 crores, and is expected to continue at this increased level.
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The company has improved its net borrowing position, reducing it to INR476 crores from INR836 crores last year.
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ISGEC Heavy Engineering Ltd ( BOM:533033 ) is investing in capacity additions across most of its manufacturing product lines, with progress on schedule.
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The company expects FY 2027 revenue to increase by 10% to 12%, with a strong opening order book of about INR7,000 crores.
Negative Points
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Full-year standalone revenue growth of 4.2% was below the earlier guidance of 7% to 8%.
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Consolidated PAT for FY 2026 decreased by 25% to INR154 crores from INR204 crores last year.
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The Philippines business, now part of continuing operations, contributed to a significant increase in consolidated depreciation.
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The project business' EBIT margin for the financial year was only 4.58%, indicating margin pressure.
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Increases in input costs, such as steel forgings and chemicals, along with gas shortages, have raised fuel costs, impacting operations.
Q & A Highlights
Q: Can you provide a breakdown of the expected growth for the current financial year between the projects and products divisions? A: The major increase is expected from the manufacturing segment, contributing around INR500 crores. The projects division is expected to grow by 3% to 4%. - Kishore Chatnani, CFO
Q: Given the supply chain disruptions and raw material volatility, are the current margins at risk? A: We are confident in maintaining 12% to 13% EBIT margins for manufacturing. The projects business margins are expected to improve to 5.5% in FY27 due to better margins on new orders and contingency provisions. - Kishore Chatnani, CFO
Q: Is Isgec involved in new technologies like coal gasification and solar technologies? A: Isgec is involved in parts of the value chain for these technologies and has received orders for equipment used in these processes. - Aditya Puri, Managing Director
Q: Why did Q4 see a moderation in manufacturing margins compared to Q3? A: The variation is due to the timing of order dispatches. We expect to maintain 12% to 13% margins annually. - Aditya Puri, Managing Director
Q: What is driving the increase in export revenue, and which geographies are contributing the most? A: Export revenue growth is due to both existing and new orders, with significant contributions from Southeast Asia and Africa. - Aditya Puri, Managing Director and Kishore Chatnani, CFO
Q: Can you provide details on the performance and future expectations for the Hitachi Zosen JV? A: The JV had a revenue of INR672 crores and a PBT of INR103 crores for the year. We expect revenue to reach INR700 crores and maintain profits above INR100 crores in FY27. - Aditya Puri, Managing Director
Q: What is the status of the Cavite Biofuel plant, and what are the expectations for FY27? A: The plant is operational and expected to run at 85% to 90% capacity. It is cash positive, with depreciation costs expected to be around INR150 crores. - Kishore Chatnani, CFO
Q: How is Isgec managing currency risks in its export business? A: We use confirmed letters of credit and take forward covers to hedge against currency risks, ensuring financial stability in our export operations. - Aditya Puri, Managing Director and Kishore Chatnani, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
