Isgec Heavy Engineering LimitedCapital Goods & EngineeringISGEC
Q1 FY27 concall · earnings callIsgec Heavy Engineering Limited
Strong revenue growth driven by manufacturing dispatch and project execution, though consolidated profits are dampened by startup losses in the Philippines ethanol plant.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Standalone Total Income | ₹1,585 Cr | 51% | |
| Standalone PBT | ₹123 Cr | 10% | |
| Export Revenue Share | 25% | — | |
| Standalone EBIT | ₹157 Cr | 15% | |
| Manufacturing EBIT Margin | 12% | — | |
| Projects EBIT Margin | 5.25% | — | |
| Standalone Order Book | ₹7,727 Cr | — | |
| Q1 Order Booking | ₹2,323 Cr | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹1,496.66 Cr+0.3% YoY-9% QoQ | ₹23.10 Cr-65.3% YoY-75.9% QoQ | ₹2.73-67.6% YoY-78.3% QoQ |
| Q2 FY25 | ₹1,643.90 Cr+11.6% YoY+6.8% QoQ | ₹95.70 Cr+50.2% YoY+42.5% QoQ | ₹12.59+54.9% YoY+41.5% QoQ |
| Q1 FY25 | ₹1,539.68 Cr+11.1% YoY-17.6% QoQ | ₹67.17 Cr+27.9% YoY-6.8% QoQ | ₹8.90+29.2% YoY-8.2% QoQ |
| Q4 FY24 | ₹1,867.96 Cr-8.6% YoY+25.2% QoQ | ₹72.06 Cr-22.6% YoY+8.2% QoQ | ₹9.70-17.2% YoY+15.2% QoQ |
| Q3 FY24 | ₹1,492.52 Cr-6.5% YoY+1.3% QoQ | ₹66.58 Cr+1.1% YoY+4.5% QoQ | ₹8.42-1.6% YoY+3.6% QoQ |
TL;DR
- Standalone revenue grew 51% and PBT grew 10% year-on-year.
- Export revenue share increased to 25% from 15%.
- Order book remains robust at INR 7,727 crores standalone.
- Consolidated performance dragged by INR 83 crore loss from Philippines ethanol plant.
- Management guides for 10-12% standalone revenue growth in FY27.
- Manufacturing EBIT margin expected to remain 12-13%, projects margin to improve to 5-6% range.
Said on the call
“We are being realistic with a conservative bias.”
From the Q&A
| Topic | What management said |
|---|---|
| Growth Guidance | Analysts questioned the conservative 10-12% revenue growth guidance given strong Q1 and order book. Management stated a good part of order execution will carry forward to next financial year, and they prefer to give a conservative number they are sure of achieving. |
| Philippines Ethanol Plant | Analysts pressed on the reasons for the large loss (INR 83 crores) and its future outlook. Management attributed it to depreciation, interest, forex, and fixed costs at ~65-70% utilization, expecting much lower losses in Q2 and targeting 90% utilization by December. |
| Export Focus and Orders | Management confirmed strong export order bookings (over INR 750 crores in Q1) from Latin America, Africa, and Southeast Asia, aided by a weaker rupee (INR 95), though logistics challenges exist. |
| Capacity Expansion | Management detailed the INR 502 crores manufacturing capacity expansion plan, with the first phase (INR 73 crores) completing in September, adding annual revenue potential of INR 225 crores, but billing impact will be seen in Q1 FY28. |
| Project Business Strategy | Management explained a shift towards shorter-duration (max 2.5-3 years), more technology-intensive projects to improve margins and cash flow, moving away from long-duration, low-technology orders. |
Guidance
- Standalone FY27 revenue to increase by 10% to 12%.
- Manufacturing business EBIT margins to continue in the 12% to 13% range.
- Projects business EBIT margins to improve slightly within the 5% to 6% range.
- Isgec Hitachi Zosen revenue and profit expected to be about 10% better than last year.
- Philippines plant losses expected to be substantially lower in Q2.
- New manufacturing capacities have potential to add INR 1,200 crores annual revenue when fully complete by 2028-29.
Source
Summary written from the transcript filed by Isgec Heavy Engineering Limited for the call held on 12 Aug 2026; published 18 Aug 2026, 20:23 IST.
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