This article first appeared on GuruFocus .
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Standalone Revenue:Q1 FY27 revenue grew 37% year-over-year to Rs. 107 crores.
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Standalone Adjusted EBITDA:Stood at Rs. 145 crores (adjusted for ForEx losses) with a margin of 28.4%, an increase of 190 basis points.
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Standalone Reported EBITDA:Stood at Rs. 137 crores with a margin of 27.2%.
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Standalone PAT:Stood at Rs. 88 crores, growing 21% year-over-year with a margin of 17.2%.
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Consolidated Revenue:Stood at Rs. 508.5 crores for Q1 FY27, a growth of 24% compared to Rs. 410.2 crores in Q1 FY26.
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Consolidated Adjusted EBITDA:Stood at Rs. 119 crores (adjusted for unrealized ForEx losses of Rs. 10 crores) with a margin of 23.4%.
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Consolidated Reported EBITDA:Stood at Rs. 109 crores with a margin of 21.4%.
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Consolidated PAT:Stood at Rs. 57 crores with a margin of 11.2%.
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Order Book:Stood at Rs. 4,848 crores as of the call date.
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Machine Sales:Sold 1,406 machines in Q1 FY27 compared to 1,117 machines in Q1 FY26.
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Capacity Utilization:Operated at 86% capacity utilization in Q1 FY27.
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Release Date: August 07, 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 37% YoY to Rs 1,107 crore, with adjusted EBITDA margin expanding 190 bps to 28.4%.
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Order book remains robust at Rs 4,848 crore, providing strong revenue visibility for coming quarters.
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New manufacturing facility on track to commission by September 2026, adding 10,000 machines annual capacity to meet strong demand.
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Launched new NX high-precision double column machine targeting railway and heavy engineering, a segment previously dominated by imports.
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Demand environment strong across sectors, with record monthly bookings (over 1,000 machines in July) and increasing import substitution opportunities.
Negative Points
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Huron revenue recognition delayed due to export license uncertainties, leading to lower consolidated revenue and EBITDA in Q1.
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Consolidated adjusted EBITDA margin declined to 23.4% (from 24.4% YoY) due to Huron's lower revenue recognition and higher costs.
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Huron's EBITDA margin remains low at 8-10%, dragging overall profitability.
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Geopolitical tensions and export license delays for Huron create lumpiness in quarterly results, making comparisons difficult.
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Working capital elevated due to proactive inventory buildup for capacity ramp-up, though expected to improve in H2.
Q & A Highlights
Q: Can you provide an update on the new 10,000-machine capacity expansion, the total CapEx outgo for FY27, and the timeline for the backward integration facilities (foundry, sheet metal, etc.)? A: Parakramsinh Jadeja (Executive Chairman and MD) stated that the total CapEx for the new capacity is targeted at close to Rs. 450 crores, and the company is on track. The machine shop is 80% complete and already partially operational, while the sheet metal and paint shop buildings are ready for installation. The foundry is running slightly late and is expected to be finished by October. The assembly building is ready, and the company is essentially on time, with the new facility set to commence operations by the end of September.
Q: The consolidated EBITDA margin was 23.4% despite your earlier guidance of 24-25%. Can you explain the reason for the lower margin and the impact of the accounting change at Huron? A: Parakramsinh Jadeja explained that the standalone business performed well with a 27%+ margin. The difference is due to Huron, where revenue was only Rs. 35 crores compared to Rs. 70 crores in the same quarter last year. This is because they moved away from the percentage-of-completion method to a more conservative dispatch-based method due to delays in end-user certificates. They missed approximately Rs. 35 crores in revenue and Rs. 22 crores in margin, which will be booked in coming quarters once the certificates are received.
Q: Can you confirm that if the earlier percentage-of-completion method had been used, consolidated revenue would have been higher by Rs. 30-35 crores, and should we look at the yearly picture rather than quarterly due to the lumpiness in Huron's dispatches? A: Parakramsinh Jadeja confirmed the understanding is absolutely right, stating that revenue would have been Rs. 35 crores higher and margin Rs. 22 crores higher. He emphasized that machine tool companies should be viewed on a yearly basis, not quarterly, due to the lumpy nature of large machine dispatches. He expects Q2 to be better and the third and fourth quarters to see a bunch of dispatches.
Q: Do you still stand by your earlier guidance of 25-30% top-line growth and 25% EBITDA margins for FY27? A: Parakramsinh Jadeja confirmed the company is fully committed to the guidance. He noted that even with the current situation, they achieved close to 23.4% margins and 24% growth at the consolidated level, and they are confident of delivering the 25-30% growth and maintaining margins.
Q: What is the full-year revenue and EBITDA margin guidance for Huron in FY27? A: Parakramsinh Jadeja stated that Huron is expected to close with revenue of Rs. 300-325 crores for the full year, with an EBITDA margin of 8-10% at the Huron level.
Q: Can you explain the rationale behind the accounting policy change at Huron and the timeline for the end-user certificates and the ongoing investigation? A: Parakramsinh Jadeja clarified that the change is due to the geopolitical situation, which has significantly increased the time for end-user certificates from defense ministries. The auditors adopted a conservative approach under French GAAP, not booking revenue until the uncertainty of delivery is resolved. He noted that the investigation is a separate parameter from the end-user certification. The company is engaging with authorities and expects the timeline to improve, though it may not normalize within one or two months.
Q: The blended realization per machine has declined to around Rs. 36 lakhs in Q1 FY27. Is this due to the product mix, and what is the outlook? A: Parakramsinh Jadeja explained that the average realization is similar to last year's first quarter (Rs. 34.41 lakhs vs. Rs. 34.56 lakhs now). As the capacity for entry-level and mid-level machines increases, the realization will remain in a similar range for the coming quarters or one to two years.
Q: What is the current capacity utilization, and how many machines do you expect to produce in FY27 with the new capacity coming online? A: Parakramsinh Jadeja stated that Q1 FY27 capacity utilization was 86% on a base of 6,000 machines per year. With the new facility ramping up, the company expects to cross more than 8,000 machines this year, aligning with the 25-30% growth guidance.
Q: Can you provide an update on the order intake and the outlook for the full year? A: Parakramsinh Jadeja noted that the company took close to Rs. 600 crores in orders in Q1 and expects to finish the entire year with order intake between Rs. 2,500 to Rs. 3,000 crores. The current order book stands at Rs. 4,848 crores, providing strong revenue visibility.
Q: What is the outlook for the debt level and operating cash flow generation for FY27? A: Parakramsinh Jadeja stated that the debt level is comfortable and will remain at a similar level to March, with no further increase expected this year. The company expects to generate strong operating cash flow, targeting close to 50% of EBITDA conversion, which will positively surprise the market.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
