ISGEC Heavy Engineering reported a strong first quarter for FY27. Total income surged 51% year-on-year to INR 1,585 crore, driven by robust performance in both the manufacturing and industrial projects segments. Profit Before Tax (PBT) also saw a healthy 10% increase to INR 123 crore, demonstrating operational efficiency and improved execution. The company maintained healthy EBIT margins and saw substantial order bookings, positioning it for continued growth.
ISGEC Heavy Engineering Reports Strong Q1 FY27 Financials
ISGEC Heavy Engineering Limited has announced its financial results for the first quarter of FY27, highlighting significant growth and improved operational performance. The company reported a substantial 51% year-on-year increase in total income, reaching INR 1,585 crore for the quarter ended June 30, 2026. This growth was attributed to stronger execution in the Industrial Projects segment and the dispatch of a large order in the manufacturing segment.
Standalone Financial Performance
The manufacturing segment’s income was boosted by the dispatch of a significant order previously on hold by a U.S. customer. Export revenue contributed approximately 25% of total revenue, amounting to INR 385 crore, an increase from 15% in Q1 FY26. Earnings Before Interest and Taxes (EBIT) grew by 15% to INR 157 crore. Profit Before Tax (PBT) stood at INR 123 crore, a 10% rise compared to INR 112 crore in the prior year’s corresponding quarter. The manufacturing EBIT margin remained strong at 12%, while the projects business EBIT margin improved to 5.25%. Order bookings for the quarter were robust at INR 2,323 crore, with total standalone orders in hand reaching INR 7,727 crore as of June 30, 2026.
Consolidated Financial Highlights
On a consolidated basis, ISGEC Heavy Engineering’s total income for the quarter was INR 1,993 crore, marking a 45% increase compared to INR 1,374 crore in Q1 FY25. The consolidated EBIT was INR 137 crore, and the consolidated PBT was INR 53 crore, an 18% increase from the restated INR 45 crore in Q1 FY25. The company noted a loss from the ethanol plant in the Philippines, impacting consolidated profit before tax. Net borrowings saw a reduction of INR 170 crore during the quarter, standing at INR 304 crore as of June 30, 2026.
Outlook and Expansion
Looking ahead to FY27 on a standalone basis, ISGEC expects revenue to grow by 10% to 12%. Manufacturing margins are anticipated to remain in the 12% to 13% range, with a slight improvement expected in the projects business margins. The company is also focusing on expanding its manufacturing capacity, with several new facilities and upgrades underway, expected to contribute to revenue from 2028-29 onwards.
Geopolitical and Market Environment
The company acknowledged the impact of geopolitical tensions, noting increased logistics costs and transit times. However, existing order bookings have not been affected, and commodity prices have shown some stabilization. The export business continues to show strong results, with efforts focused on developing countries in Latin America, Africa, and Southeast Asia.
Source: BSE
