71% growth driven by strong execution; strategic bets now translating to deals

Delivered INR107.6 Cr, 70.9% YoY — rounding variance <1%

Delivered INR27.9 Cr, 24.2% margin, 45.7% YoY — all within rounding

Matches delivered OPM 36.5% — quality earnings from core operations

Stated but not independently verified from PL snapshot; plausible given 76% aero tooling mix

Order book decline explained by customer pull-ins and strong execution; not concerning

21% of total revenue; revenue 107.6 → Hobel ~22.6 Cr implied — reasonable

Prior guidance 30%-32% → raised to 34%-35% for FY27. Management cited better performance and operational leverage. Material upgrade.

Order book 280 Cr vs prior consolidated level (unspecified); 'marginally lower' due to customer pull-ins and strong Q1 execution. Not a miss—reflects robust end-market demand.

Hobel contributed INR22 Cr in 2 months (21% of total). Expected 15-20% annual growth; will drive 3-month contribution in Q2 onward.

Originally planned, now ~USD10M infusion expected Aug 2026. Gross block by end FY27 expected ~2x current due to Saudi investment. Near-term margin headwind acknowledged but strategic upside intact.

USD7.5M over 5 years, recurring aerospace component supply with expansion scope. Marks strategic entry and opens doors to other Tier-1s. Multi-year visibility.

Confirmed POs INR280 Cr (excludes forecast). Tooling consumed within quarter; nuclear INR87 Cr across H2 FY27 and into FY28; precision parts 6 months. Organic order inflows continue; pipeline built by bit constraints.

Cannot provide explicit FY27 revenue guidance. Gross margins sustainable 65%; planning capex for qualification conversion and Saudi JV. Open to further investments aligned with customer demand.

Dominated by aero engine components; airframe tooling explored but not quantified. Growth mix: SKU expansion + underlying demand. Will expand product range; no specific mix disclosed.

Tier-1 in semiconductors and nuclear (OEM direct). Aerospace largely Tier-2, but some Tier-1 roles. Multi-billion Tier-1s and OEMs in ecosystem. Direct engagement expanding.

Hobel near-term: expand within energy/gensets/locomotives (wallet + market share). Medium-term: nuclear qualification. Long-term: aerospace/semiconductor (requires AS9100, NADCAP). Engagements initiated; long qualification cycle ahead.

Nuclear INR87 Cr; ~50% in FY27, rest in FY28. Four new reactors visible; qualification track record strong. Segment margins not disclosed per policy (consolidated only). FY27 guidance 34-35% reflects better performance.

Hobel Q1 (2 months): INR22 Cr. Margin policy: consolidated only, not by segment. Hobel growth 15-20% historically and expected forward. Integration-stage forecast.

Other income Q1 INR7 Cr (vs INR15 Cr Q4 FY26 and INR46 Cr FY26). Q2 onwards expect ~half of Q1 due to capital deployment to Hobel and JV. YoY declining from FY26 base.

PCA business 18 months old; 80% of qualified parts converting to serial. SKU base includes tooling (~5,500), PCA subset. Conversion rate strong and improving as business matures.

Current asset turns ~2.0x; capex targeting 3x asset turns. Aero tooling historically higher; PCA targeting 2x. Blended 2-3 year: 2.5-3.0x asset turns. ROCE currently 15-16%; potential 20%+ as utilization improves.

Initial agreement for current RFQ wave. New RFQs and programs keep coming; revenue typically increases over time. Qualification across OEMs opens doors beyond FACC. Doors open for Tier-1s and OEMs.

Confidentiality agreements prevent naming OEMs. Work with Tier-1 licensees (Tier-2 vs OEM). Tooling PO-to-PO basis. Progress on engine stands agreements and forecasted orders.

Early to commit. Long-term intent: first-mover in new MRO setups. Historical: supported Safran HAL MRO with 100+ toolings. Any new MRO activity → engaged through licensees.

Difficult to quantify; evolving situation. Mitigants: free trade warehouse (enabled continuous delivery). New engagements with Europeans (FACC). Saudi JV as geographic hedge. Long-term hedges against volatility being built.

Enabling resolution for strategic flexibility. Primary: minimum public shareholding compliance (18 months). Secondary: capitalize on demand tailwinds, capacity/capability expansion. Timing not committed; will communicate when needed.

Growth via organic and inorganic. Inorganic for capability build (faster than organic). Organic for capacity aligned with customer demand. Open to both; immediate fundraising not planned. Details to follow as needs emerge.

Tooling demand continues constructive; Hobel full-quarter ramp. Management said Q1 'encouraging start'; Q2 'stronger' implies minimum 8-10% QoQ from Q1 baseline.

Qualitative guidance. Combined tooling normalization, Hobel annualization (was INR22-25 Cr run-rate), nuclear ramp, and precision growth suggests 30-50% FY27 growth likely, but unquantified.

280 Cr confirmed POs; plus forecast for FACC and other in-progress qualifications. Rebuild implies future order growth >execution rate.

Mix-driven (76% aero tooling); qualification program drag manageable. Conservative guidance; upside if aero mix stays rich.

Management cited 'better performance' this quarter and operating leverage. Q1 delivered 36.5%; full-year guidance 34-35% implies some moderation but sustained strength.

Q1 NPM 24.2%; depreciation stable; finance cost low (WC borrowing). Other income declining but immaterial to bottom line.

Originally no capex; now pulling forward to support FAI/qualification conversion. Magnitude unspecified; 'sufficient to compete for opportunities' suggested.

Saudi investment will be primary capex driver. Gross block likely to reach ~₹80-100 Cr from current ~₹50 Cr baseline (need to verify).

Management declined to name specific OEM customers due to confidentiality. Aero tooling (76% of revenue) likely concentrated in 2-3 key licensees/Tier-1s. Loss of one major customer could impact 15-25% of revenue.

US tariff escalation flagged as 'grey matter'. Impact on revenues, order flows, and EBITDA not quantified. Could disrupt customer procurement if tariffs materialise materially.

Order book 280 Cr, 'marginally lower' than prior consolidated level. Explained by strong execution and customer pull-ins. Risk: if pull-ins normalize, growth could moderate sharply.

New long-cycle aerospace programs (FACC, engine Tier-1 agreements) and nuclear tenders require higher inventory and longer customer acceptance cycles. WC days expected to trend from 130 to 160 by year-end, reducing free cash and asset turns.

Hobel acquired 27-Apr 2026 (2 months in Q1). Integration 'progressing well' but unproven at scale. Cross-selling to aerospace/semiconductor requires new certifications (AS9100 targeted Q4 FY27). Execution risk on growth (15-20%) and margin integration.

Saudi venture planned for operationalization in H2 FY27 (unspecified). Capex ~USD10M (INR83 Cr equiv) to be deployed Aug 2026. Customer engagement ongoing but not yet converted to orders. Risk: execution delays, customer conversion shortfall, or margin compression if near-term pricing competitive.

PCA business (18 months old) showing 80% qualified-to-serial conversion rate. Not all FAI programs will convert; some may be discontinued or delayed. Upside/downside both possible.