36.5% growth, but margin squeeze; FY27 at conservative 20%

₹110.1 Cr vs ₹80.67 Cr prior year; exact match to reported 36.5%

EBITDA margin 12.85% vs 13.12% prior year; 27 bps compression QoQ

Management stated '>80% executable' and customers requesting preponment

Current guidance 'double in 3 years' (~₹220 Cr from ₹110 Cr); implies ₹691 Cr at ~20% CAGR, but not re-stated explicitly

Volatility reduced but prices remain high; tungsten up 'few hundred percent', steel ~20%; absorption via volume leverage

Prior call expected 'gradual improvement' in EBITDA margins. Q1 FY27 delivered 12.85% (down from 13.12% prior year). Management now guiding 100–200 bps recovery over FY27–28, extending timeline.

Prior FY26 call targeted ₹650 Cr platform in 2–3 years. Current guidance of 'double in 3 years' (~₹220 Cr from ₹110 Cr) is materially lower, though phrased as 20% CAGR rather than absolute target.

Consistent with prior 'over 20%' guidance. Conservative vs. actual Q1 run-rate (36.5%) but reflects management's 'overperform, undercommit' philosophy.

₹67 Cr of IPO proceeds still undeployed as of Aug 2026 (vs. original schedule). Expected full deployment by year-end. Capacity ramp still 2–3 years.

Steel ~20% up, tungsten few hundred %; volatility stabilizing but levels remain high. Gross margin hit ~1–1.5%, spread via volume leverage. Customers now accepting higher prices.

>80% FY27-executable. Advances 10–20%, 80–70% post-dispatch, balance post-warranty. Customers requesting preponment due to strong demand outlook.

Phase-wise since Aug 2026. Heavy engineering 9000→18000 MT. Won't materially contribute EBITDA until next quarter; 2–3 years to full ramp.

Raw material volatility caused Q4 FY26/Q1 FY27 compression. Expect recovery to prior Q1 FY26 levels (13.12%) + 100–200 bps by FY27–28. We prefer 'overperform, undercommit' vs. overshooting.

Workshop approval in progress. Only small developmental orders so far. Expected 9–12 month conversion timeline. Some tenders post-approval. Incumbent business (points/liners) growing.

Customers consolidating yearly purchases; staggered deliveries. Products now embedded in their manufacturing value chain—structural shift, not one-off windfall.

Defense revenue ~1.5–2% of total. Tejorup (10% stake) developing VSHORADS prototype. Expect manufacturing revenue post-approval. Competitive bidding on subassemblies unsuccessful so far.

~20% annual growth FY27–28 and beyond; double in 3 years. EBITDA margins +100–200 bps by FY27–28. Capex ramp will take 2–3 years to full contribution.

₹67 Cr still undeployed as of Aug 2026. Expected full deployment by year-end. Most capacity ready; some completion pending next quarter. Will retain savings for shareholder-approved future use.

Estimate 60–70% based on nature of business. Would check ERP and send detailed reply. Nature unchanged since IPO.

Conservative vs actual Q1 run-rate (36.5%); reflects management's deliberate 'undercommit' approach. Capex ramp and raw material absorption are drag factors.

Implies ~26% CAGR; higher than 20% annual but achievable if HE capacity ramp and international scale faster than guided.

Targets recovery from current 12.85% (compressed) to ~14–14.85%; still below prior 13.12% Q1 FY26 baseline. Contingent on raw material price stabilization and capex utilization ramp.

Higher-margin HE and wear products now >50% of revenue; consumables mix declining. Mix tailwind visible but offset by capex depreciation in near term.

Expected full deployment by year-end FY27. Heavy engineering 9000→18000 MT, electrode capacity expansion, backward integration via strip slitting.

Phase-wise commissioning started. Management realistic on timing; capex to start contributing EBITDA from next quarter, full benefit FY28–29.

Management shifting to earlier expansion cycles to maintain growth momentum. No capex finalized yet; still on drawing board.

Tungsten up 'few hundred percent,' steel ~20%. Gross margin hit ~1–1.5% this quarter. Pass-through delayed; customers only recently accepted higher prices.

₹100 Cr capex program for 9000→18000 MT HE expansion, electrode capacity, backward integration. Phase-wise commissioning started; 2–3 years to full ramp. ₹67 Cr still undeployed as of Aug 2026.

Top 10 customers represent ~60–70% of revenue (unchanged since IPO RHP). Heavy dependence on cement, steel, power sectors; cyclical industries subject to capex pullback.

Vande Bharat qualification in progress; workshop approval pending. L1 orders not yet converted; only small developmental orders in hand. Expected 9–12 month timeline to conversion.

UAE facility and Turkey operations recently scaled; revenue nascent. Philippines/Singapore contributions volatile (₹4.4 Cr this quarter vs typical ₹1–2 Cr). Operational leverage not yet demonstrated.