Strong Q1 execution meets claims; guidance raised modestly

₹166.6 Cr revenue (61.5% YoY), ₹29.7 Cr PAT (468.7% YoY EBITDA 90.8%)

Q1 delivered 61.5% YoY, but management expects QoQ moderate growth due to prior-year Chhapara ramp-up normalizing

₹3,000 Cr confirmed: ₹2,000 Cr multi-year oil/gas (3-5 years), ₹1,000 Cr short/medium cycle (6-18 months)

Raw material costs rose 20%→24%→28% QoQ; pass-through lag is 2-3 months via QBRs. Currency pass-through also present.

Confirmed: inventory 225→182 days, receivables 153→119 days, payables 80→69 days

Prior FY-2026 call: 30-35% FY27 expansion. Current: 35-40% range for FY27-FY28, implying modest but real upgrade vs. initial target.

Two new world-class facilities at Chhapara (₹100 Cr building, ₹150 Cr plant/machinery) will add 10-11 lakh machine hours capacity, enabling ₹1,600+ Cr revenue potential.

Nadcap certification in progress, Tier-1 OEM trials underway, small revenue (6.9% of 'others' segment) already booked. 1-3 year horizon to material scale.

NWC days improved 294→233 (inventory, receivables normalized post-year-end). Target further 10-20% improvement while scaling revenue.

EBITDA margin 30.4% delivered; guidance 30%+ with gross margin 68-71% (vs. currently ~70%). No expansion, reflecting raw material lag and investment in new verticals.

Metoda 11 lakh, Chhapara 19.5 lakh, Padavala 1.37 lakh hours currently. ₹250 Cr capex (₹100 Cr building, ₹150 Cr machinery); ₹25 Cr for existing Chhapara, rest for new. Post-ramp: 42-43 lakh hours total.

Margins better than current business; not subject of discussion. On track for FA approvals, Nadcap accreditation in progress. Multi-year process, 1-3 years for material contribution.

Order is 3-5 year range, different product lines. ~₹50 Cr+ executed Q1. Year-1 to year-5 staggered ramp due to mix with short-cycle orders (3-4 month cycles).

Historically 30%+ EBITDA. Capability/competency driven, not segment-specific. Currently investing heavily in new verticals (aerospace, defense, energy). 1-2% variance normal.

Historically growing 35-40%, projecting same range. Margins 30%+ similar level. Current order book ₹3,000 Cr, ₹166 Cr executed Q1, incoming orders replacing it.

Product mix effect present (low-volume high-mix). Pass-through via QBR takes 2-3 months. Customers have currency pass-through as well; equalize and discuss actual mechanism.

Guidance is YoY. Prior year Chhapara was ramping step-by-step. Q1 is high, but moderate QoQ growth expected. Full-year FY27 YoY: 35-40% still applies.

WC currently in range, working to improve 10-20%. North America 55-60%, Middle East/Europe growing (10-20% rebalancing target) to reduce geo concentration.

IPO: paid ₹50 Cr debt, total debt now ₹390 Cr. Restructured NBFC loans for lower interest. Moving depreciation from WDV to straight-line for next 3 years capex (₹250-300 Cr), will boost efficiency.

Some revenue already booked Q1 (small, in 'others'). More in FY27 and FY28. Pipeline strong, industry demand high, good capacity to execute.

Asset turnover 2-2.5x currently. ROCE >20%. At peak, takes years to reach due to ongoing FA costs in P&L, new product dev costs still being absorbed.

Apart from two large, have Oshkosh, BLY, ABB, Siemens approved. Motion control/automation shorter cycle. Working on large assembly-side orders; loose compound FAs completed, moving to approval. 6-12 or 15 months for approval.

Historically achieving 35-40% range. Current order book ₹3,000 Cr provides 3-5 year visibility; new capacity ramp starting FY28.

New capex adds 10-11 lakh hours (42-43 lakh total). Assumes similar material mix and revenue-per-hour metrics. Depends on order book absorption.

Historically 30%+; Q1 delivered 30.4%. Disciplined pricing on existing verticals, new verticals (defense/aerospace) have higher margins but ramping slower.

Currently ~70%. Product mix and raw material pass-through lag (2-3 months) drive 68-71% band. No expansion expected.

₹100 Cr building, ₹150 Cr plant/machinery. Slight spillover to FY28 due to rains (1-1.5 months). Builds two new Chhapara facilities.

Land acquired in Ahmedabad, Hyderabad not yet planned. Phased approach based on segment-wise needs and utilization ramp.

Weatherford + one other large oil/gas customer = ₹2,000 Cr of ₹3,000 Cr order book (67%). Loss of either could materially impact revenue visibility.

COGS as % of revenue rose 20%→24%→28% QoQ despite claimed 100% pass-through. 2-3 month lag via quarterly business reviews (QBRs) creates quarterly margin pressure.

₹250 Cr capex for 10-11 lakh new machine hours capacity adds 30% to current 32 lakh hours. Already 1-1.5 months behind schedule due to rains. If order book doesn't grow proportionally, utilization/ROCE could suffer.

Defense/aerospace currently ~0.5% of revenue. FA approvals, Nadcap certification, and order conversions expected 1-3 years out. No material contribution until late FY28-FY29 at earliest.

North America 52% of revenue, primarily oil/gas. Downturn in US shale/energy could compress order flow and utilization. Rebalancing to Europe/Middle East underway but slow.