ISGEC Heavy Engineering Ltd

Financial Performance

• Standalone Q1 FY27 total income: INR 1,585 crores.
• Standalone Q1 FY27 EBIT: INR 157 crores; manufacturing margin 12%.
• Standalone Q1 FY27 PBT: INR 123 crores; up 10% YoY.
• Consolidated Q1 FY27 total income: INR 1,993 crores; up 45% YoY.
• Consolidated EBITDA: INR 137 crores; about the same as Jun 2025 quarter.
• Consolidated PBT: INR 53 crores; up 18% YoY; restated Jun 2025 figure
• Standalone orders in hand: INR 7,727 crores as on 30 Jun 2026.
• Consolidated orders in hand: INR 8,958 crores as on 30 Jun 2026.
• Export revenue in quarter: INR 385 crores; ~25% of total; up from 15% in Q1 FY26.
• Net fund position improved by INR 140 crores in the quarter.
• Standalone net borrowings: INR 240 crores as of 30 Jun 2026.
• Consolidated net borrowings: INR 304 crores as of 30 Jun 2026.
• Export orders booked this quarter: > INR 750 crores (export markets).
• Philippines ethanol plant update: started 17 Dec 2025; 84,000 cane; 10.5m L ethanol; 65-70% capacity; quarterly loss.

Operations & Demand

• Domestic market strong across most product lines; export inquiries healthy.
• Isgec Hitachi Zosen: revenue up; orders in hand INR 889 crores.
• Saraswati Sugar Mills: cane availability last year reduced; revenue down.
• Export orders booked from Africa and Latin America; export inquiries robust.
• Export currency around INR 95 aids competitiveness; logistics challenges persist.

Capex and Capacity Expansion

• Board-approved manufacturing capacity capex: INR 502 crores.
• Machine-building phase 1: INR 70 crores; phase 2: INR 218 crores.
• Phase-1 completion by early September; Phase-2 completion end calendar 2027 / Q1 2028.
• Phase 1 production expected next month; revenue potential approx INR 225 crores annually.
• Dahej SEZ plant; Bhartauli presses; Rattangarh and Bawal expansions on schedule.

Philippines Ethanol Plant

• Plant started 17 Dec 2025; 84,000 cane; 10.5 million L ethanol; 65-70% capacity.
• Quarterly loss largely from depreciation and interest; some forex impact; no external debt.
• Next sugarcane season starts November; plant to run on molasses after cane season.

Outlook & Guidance

• FY27 standalone revenue to increase by 10% to 12%.
• Manufacturing margins to continue 12% to 13%; projects margins 5% to 6%.
• Global Industrial Services and Solutions division created to boost O&M, retrofit, spares, digitization.
• Inquiry pipeline and order-book outlook remains strong in domestic and export markets.
• Weaker rupee should support export realizations; management focusing on risk mitigations.

Q&A Highlights

• Reason for conservative guidance: a large part of Q1 order book will shift to next year.
• Next quarter run-rate expected similar to current quarter; ~INR 1,000 crores projects, ~INR 750 crores manufacturing.
• Large Q1 order: ~INR 130 crores; dispatched after customer site readiness.
• Capex guidance: total manufacturing capex INR 502 crores; major expansions to complete 2027/28.
• Exports: July quarter bookings ~INR 1,200 crores on standalone basis; currency & logistics pose near-term challenges.
• Isgec Titan revenue: FY26 INR 102 crores; FY27 target ~INR 150 crores.
• O&M services division: aim to roughly double current O&M base in 2 years.

Meeting Details

• Event: Analyst/Investor Meet; virtual audio call for ISGEC Q1 FY2026-27.

Participants

• Key company participant: Compliance Officer.

Purpose

• Purpose: investor interaction regarding Q1 FY2026-27.

Additional Notes

• Audio recording of the call is available.

Business overview

• Diversified heavy engineering group: machinery & equipment, industrial projects, Sugar & Ethanol.
• Global client base across 99 countries with multiple Indian manufacturing facilities.
• Technology partnerships with leading global companies.

Operational highlights

• Consolidated order book stood at Rs 89,580 million as at 30 June 2026.
• Order book diversified across cement, fertilizer, mines, automobile, defence, ports, sugar, railways, power, chemical, space.
• Equipment supplied in 99 countries across 6 continents.

Financial performance

• Q1 FY27 and annual highlights are presented; exact metrics not legible in the chunk.
• Credit ratings: AA Stable and A1+ by ICRA indicating robust credit profile.

Capital structure & liquidity

• Market cap Rs 69,140 million; free float 37.57%.
• Shares outstanding 73.5 million; 3M ADTV Rs 80.1 million.

Strategic priorities & outlook

• Emphasis on diversified geographies and end-markets; growth through technology partnerships.

Risks & governance

• Risks include earnings volatility, growth management, and policy/regulatory changes.
• Board includes MD, Chairman and independent directors; no governance changes disclosed.

Standalone results

• Revenue from operations ₹1,553.04 cr; total income ₹1,585.32 cr.
• PBT ₹122.86 cr; PAT ₹92.02 cr.
• EPS ₹12.52 (basic/diluted).
• One-time exceptional item: labour-code provision ₹14.03 cr.

Consolidated results

• Revenue from operations ₹1,980.0 cr; total income ₹1,993.46 cr.
• PAT ₹17.50 cr; PBT before tax ₹52.90 cr.
• EPS (consolidated): ₹1.22 (basic); ₹9.96 (diluted).

Dividend & dates

• Dividend of ₹6 per equity share proposed; subject to shareholders' approval.
• Record date 21-Sep-2026; dividend payable by 26-Oct-2026; AGM 28-Sep-2026.

Stake sale gains

• SFW lsgec Energy stake diluted to 26% from 51%.
• Control ceased from 25-Jun-2026.
• Standalone gain ₹350 lakhs; consolidated gain ₹373 lakhs.

Standalone segment

• Segment revenues: Manufacturing ₹564.20 cr; Industrial Projects ₹1,096.21 cr; net ₹1,553.04 cr.
• Segment pre-tax profits: Mach. & Equipment ₹67.14 cr; Industrial Projects ₹57.59 cr; Unallocated ₹13.29 cr.

Consolidated segment

• Segment revenues: Manufacturing ₹796.59 cr; Industrial Projects ₹1,103.83 cr; Sugar ₹128.75 cr; Ethanol ₹8.38 cr; Philippines ₹69.59 cr; net ₹2,107.21 cr.
• Segment pre-tax profits before inter-segment: ₹89.69 cr; ₹57.17 cr; ₹2.01 cr; ₹-4.57 cr; ₹-6.25 cr; Unallocated ₹10.90 cr; total ₹92.73 cr.
• Profit after tax: owners ₹15.59 cr; non-controlling ₹8.55 cr; total PAT ₹17.50 cr.

Notes & disclosures

• Labour codes: standalone ₹14.03 cr; consolidated ₹16.49 cr as exceptional items.
• Bioeq Energy Holdings reclassified as continuing; SFW Energy now associate (26%).
• Audit: Standalone and Consolidated results reviewed by Audit Committee; limited review by statutory auditors.

Meeting Details

• Date, time, and location of the meeting are not disclosed in this filing.

Key Agenda Items

• No agenda items are disclosed in the provided excerpt.

Other Notes

• Trading window closure periods are not specified in this fragment.

Dematerialisation status

• Physical certificates for dematerialisation processed by the Registrar and Share Transfer Agent.
• Securities dematerialised have been listed on the stock exchanges.
• Certificates mutilated and cancelled; depository substituted as registered owner.

Business

• Diversified heavy engineering company across machinery, industrial projects, and sugar and ethanol.
• Exports equipment to 93 countries across six continents.
• Consolidated revenue is 87% from engineering products and projects.

Operations

• Order book stood at Rs. 79,840 million as of March 31, 2026.
• FY26 orders booked were Rs. 22,370 million, versus Rs. 12,650 million in Q4FY25.
• Philippines ethanol plant began production on December 17, 2025.

Financials

• FY26 total income rose 7% to Rs. 69,223 million.
• FY26 EBITDA rose to Rs. 6,713 million from Rs. 5,661 million.
• FY26 PAT fell to Rs. 1,540 million from Rs. 2,044 million.
• FY26 PAT margin declined to 2.2% from 3.2%.

Segments

• FY26 machinery revenue grew 11%; industrial projects revenue grew 6%; sugar and ethanol was flat.
• Q4FY26 total income rose 21% year-on-year; PAT rose 361% year-on-year.
• Q4FY26 machinery revenue grew 14%; industrial projects revenue grew 23%; sugar and ethanol revenue grew 20%.

Capital

• Shareholding on March 31, 2026: promoter 62.43%, mutual funds 9.42%, FPIs 3.85%.
• Market capitalisation was Rs. 63,401 million; free float was 37.57%.

Outlook

• Management expects improving CBPI sentiment with ongoing operations and bioethanol sales.
• Philippines DOE allocation received for 6 million litres in Q1FY27 and Q2FY27 each.
• Order book remains diversified across domestic and international customers, with 84% from private sector.

Governance

• Chairman is Ranjit Puri; Aditya Puri is Managing Director; Kishore Chatnani is Joint Managing Director and CFO.
• Board includes three independent directors: Arvind Sagar, Rashi Sikka, Rajiv Roy Chaudhury, and Vivek Dhir.