ISGEC Heavy Engineering announced the outcome of its Board Meeting held on February 09, 2026. The Board approved the unaudited financial results for the quarter and nine months ended December 31, 2025, along with unmodified review reports. Major decisions included the re-appointment of key management personnel, including the Managing Director, and approval for significant capital expenditure projects totaling Rs. 867 crore for capacity additions in the Foundry and Machine Building divisions.
Financial Performance for Q3 FY26
The Board of Directors, following the meeting on February 09, 2026, approved the Unaudited Standalone Financial Results for the quarter and nine months ending December 31, 2025. Standalone Total Income for the quarter was Rs. 136,527 lakhs. Profit Before Tax (PBT) for the quarter stood at Rs. 9,896 lakhs. Earnings Per Share (Basic and Diluted) for the quarter from continuing operations was Rs. 10.22.
The Consolidated Statement also showed strong performance. Consolidated Total Income for the quarter reached Rs. 1,75,635 lakhs. Consolidated Profit Before Tax from continuing operations for the quarter was Rs. 15,041 lakhs. Diluted EPS for the quarter from continuing operations was reported at Rs. 13.26.
Key Director Re-appointments Approved
Based on recommendations from the relevant committees, the Board approved several significant re-appointments, subject to shareholder approval via Postal Ballot:
- Mr. Aditya Puri (Promoter) as Managing Director for a term of five years, effective May 01, 2026.
- Mr. Kishore Chatnani (Non-Promoter) as Joint Managing Director for five years, effective June 28, 2026. Mr. Chatnani will also continue as Chief Financial Officer (KMP).
- Mr. Sanjay Gulati (Non-Promoter) as Joint Managing Director for five years, effective June 28, 2026. Mr. Gulati will also continue as Head- Manufacturing Units.
- Mr. Arvind Sagar as Non-executive Independent Director for a second term of five years, effective June 28, 2026.
All new appointments/re-appointments require shareholder approval via Ordinary or Special Resolution through Postal Ballot.
Significant Capacity Addition Proposals
The Audit Committee-recommended proposals for capacity expansion were approved:
| Division | Investment Required | Projected Turnover Impact | Timeframe |
|---|---|---|---|
| New Machining Shop (Foundry) | About Rs.23 Crore | Cater to demand for machined Castings | 12 to 15 Months |
| Expansion of Machine Building Division (Presses and Contract Manufacturing) | About Rs.218 Crore | Additional turnover by Rs.375 Crores per annum | 15 to 18 months |
| Enhancement of Skids & Modules shop (SEZ, Dahej) | Revised from Rs.87 crore to Rs.110 Crore | Support growth and manufacture larger Skids & Modules | 30 Months |
Financing for the first two projects will involve Term Loan from Banks and internal accruals, while the Skids & Modules enhancement will be funded by Internal Accruals.
Exceptional Item Related to Labour Codes
A significant exceptional item was recognized totaling Rs. 1,403 lakhs in Standalone results (Rs. 1,649 lakhs in Consolidated results). This provision relates to the one-time increase in employee benefits due to the consolidation of 29 existing labour legislations into four unified labour codes, effective November 21, 2025.
Source: BSE
