FY27 Revenue Growth: Low Double-Digit
Management targets low double-digit consolidated revenue growth for FY27 while maintaining EBITDA margins at FY26 levels, supported by healthy order book and strong inquiry pipeline.
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Gear Division EBIT Margin: ~24% EBITDA by Year-End
Management expects gear division EBITDA margin to reach approximately 24% by end of FY27 from current 17.9% EBIT margin, driven by price acceptance phase in Q2 and improved operational efficiencies.
FY30 Revenue Target: ₹5,000 Crore
Management reaffirmed medium-term target of ₹5,000 crore revenue by FY30, with gear division expected to contribute 70-75% of total revenue, factoring in marine business expansion and export territory growth.
Capex Program: ₹400 Crore over FY26-FY28
Previously announced capital expenditure program of approximately ₹400 crore over FY26-FY28 remains on track, with gear division expected to take larger role in capex deployment.
FY26 revenue guidance of ₹2,650 crore
Management expects consolidated revenue of ₹2,650 crore for FY26, implying H2 revenue of ~₹1,500 crore.
FY26 EBITDA margin guidance of 24%
Management expects EBITDA margin to normalize to 24% for FY26, driven by volume ramp-up and operating leverage.
Capex plan of ₹400 crore over FY26-28
Capex budget of ₹400 crore over three years for capacity enhancement, quality improvement, and productivity.
Export revenue target of 50% by FY30
Strategic goal to increase export share to 50% of total revenue by FY30, focusing on new geographies.
FY26 revenue may be ~5% lower than earlier guidance
Consolidated revenue for FY26 is expected to be lower by up to approximately 5% compared to previous guidance due to near-term softness.
FY26 adjusted EBITDA margins may be ~2% lower than earlier guidance
Adjusted EBITDA margins for FY26 are expected to be lower by up to approximately 2% compared to earlier guidance.
Capex outlay of ₹400 crore for FY26-28
The company has planned a capex outlay of ₹400 crore over FY26 to FY28 aligned with long-term strategic priorities.
Export revenue target of 50% in long term
Management reiterated the aspiration to achieve 50% of revenue from exports over the long term, though near-term geopolitical factors may delay.