ISGEC Heavy Engineering announced strong Q3 FY26 standalone and consolidated results, highlighting significant YoY growth in profit after tax. Standalone PAT grew by 28.2%, while consolidated PAT from continuing operations surged by 92.5%. Revenue growth was positive across key segments, with Industrial Projects leading the standalone performance. The consolidated order book remains robust at Rs. 87,090 Mn as of December 31, 2025.
Q3 FY26 Financial Snapshot
Standalone Performance
The third quarter of FY26 showed healthy financial momentum for the standalone entity. Total Income experienced a growth of 21.1% YoY. Profit After Tax (PAT) saw substantial improvement, climbing by 28.2% YoY.
Segmentally, both primary divisions contributed positively:
- Manufacturing of Machinery & Equipment revenue grew by 14.5% YoY.
- Industrial Projects revenue grew by 24.7% YoY.
Consolidated Performance (Continuing Operations)
Consolidated results demonstrated even stronger profitability growth:
- Total Income from Continuing Operations grew by 17.1% YoY.
- PAT from Continuing Operations saw a remarkable increase of 92.5% YoY.
Consolidated segmental revenue growth for Q3 FY26 (excluding the Philippines Ethanol Plant) was:
- Manufacturing of Machinery & Equipment: 15.9% YoY growth.
- Industrial Projects: 22.9% YoY growth.
- Sugar & Ethanol: 8.9% YoY growth.
Nine Months FY26 Highlights
Consolidated 9M FY26
For the cumulative nine-month period ending December 31, 2025, consolidated results reflected steady progress:
- Total Income from Continuing Operations grew by 2.7% YoY.
- PAT from Continuing Operations increased by 6.4% YoY.
Segmental growth for 9M FY26 (Consolidated):
- Manufacturing of Machinery & Equipment revenue grew by 1.7% YoY.
- Industrial Projects revenue saw a marginal decline of 0.4% YoY.
- Sugar & Ethanol revenue grew robustly by 8.1% YoY.
Financial Trend Analysis (Annual Historical Data)
Total Income & Profitability
The historical data shows a consistent upward trend in Total Income, reaching Rs. 64,616 Mn in FY25* (from Continuing Operations). Profitability margins have also strengthened considerably, with the PAT Margin reaching 5.5% in FY25* compared to 2.1% in FY22.
Segmental Annual EBIT Margins
EBIT Margins across segments show significant improvement over the last four fiscal years:
- Manufacturing of Machinery & Equipment: Margin improved from 6.9% (FY22) to 11.7% (FY25).
- Industrial Projects: Margin improved from 2.9% (FY22) to 4.6% (FY25).
- Sugar & Ethanol: Margin remained relatively stable, standing at 8.8% in FY25.
Robust Order Book Position
The company maintains a strong order book position. Orders booked during Q3 FY26 stood at Rs. 17,330 Mn. As of December 31, 2025, the total consolidated Order Book reached a high of Rs. 87,090 Mn.
The order book composition is diversified:
- Sector Wise: 85% is derived from Private sector clients, with 15% from PSU & Government.
- Geography Wise: 72% is Domestic, and 28% is International.
- Segment Wise: Industrial Projects account for 67%, while Manufacturing of Machinery & Equipment accounts for 33%.
Commitment to ESG and Sustainability
ISGEC emphasizes its commitment to Environmental, Social, and Governance (ESG) practices. Key initiatives include transitioning factories to cleaner fuels like RLNG, significantly decreasing water consumption, managing wastewater efficiently, and promoting a circular economy by reusing scrap.
Discontinued Operations Update
The company continues to pursue the sale of its step-down subsidiary, Bioeq Energy Holdings One. Consequently, the financial results of these entities are being reported as discontinued operations. PAT from Continuing Operations for Q3 FY26 was Rs. 1,122 Mn, significantly higher than the Rs. 583 Mn reported from continuing operations in Q3 FY25.
Source: BSE
