GEE — Q4 FY26 earnings call

Call held 18 May 2026

Management summary

GEE Limited reported robust Q4 and FY26 results, driven by strategic product development for critical sectors like defense and nuclear power. The company achieved significant revenue growth and improved margins, outlining an ambitious target of INR 1,000 crore revenue by FY29-2030 through organic growth, capacity utilization, and potential M&A. Management emphasized R&D, market share capture, and cash flow generation from asset monetization.

Highlights

  • Strong revenue growth in Q4 FY26 (41.77% QoQ) and FY26 (10.77% YoY).

  • Achieved 9% EBITDA margin and 3.5% PAT margin in Q4 FY26.

  • Significant product development for defense (INS Vikrant, submarines) and nuclear sectors, securing key approvals (NPCIL).

  • Strategic focus on high-growth sectors like power, railways, and exports, with plans to grow export business more than three times in two years.

  • Plans to increase capacity utilization from 57% to 80-90% with minimal CapEx and invest INR 20-30 crores in ancillary machines and flux cored wire lines.

  • Successful monetization of Thane land parcel, expected to generate over INR 400 crores cash flow over five years, with part of investment property disposed in Q1 FY27 for cash generation.

Concerns

  • Q1 is seasonally slower due to monsoon and labor shortages, impacting infrastructure projects.

  • Acquiring companies for growth is acknowledged as 'not very easy'.

  • Pricing is 6-7% lower than competitors like ESAB and Ador in the domestic market, though project-oriented business is at par.

Key financials

2 periods

Headline

  • Revenue
    ₹112 Cr
    QoQ +41.8%
  • EBITDA
    ₹33 Cr
  • EBITDA Margin
    9%
  • PAT
    ₹13 Cr
  • PAT Margin
    3.5%

FY26

  • Revenue
    ₹370 Cr
    YoY +10.8%

What they filed

Q1 FY27: revenue up 29.9%, net profit up 599.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue83 81 88 79 85 +3%92 +14%112 +27%103 +30%
EBITDA6 5 -16 5 9 +61%9 +78%11 +169%8 +76%
Net profit2 1 -15 1 4 +120%4 +231%4 +123%7 +599%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

medium confidence

Composition

Mix 2 client types
  • End Customers (BHEL, L&T) 15%
  • Distributors 70%

Share of order book by client type· partial disclosure (85% of the book)

Management indicates strong order inflows from defense, nuclear, and power sectors, with specific project wins and approvals. They also highlight significant pending orders for specialized products like Inconel electrodes and plans to double cobalt alloy business.

Source: Q&A

Capital allocation

high confidence
  • Capex ₹20 Cr
    • Ancillary machines and flux cored wire lines ₹20 Cr
    • Solar power installation in factories
    • Shifting machines from Thane plot to new facility
    Payal Agarwal: So, regarding capex, of course, there are going to be a few ancillary machines. And apart from that, we are also shifting our facility, a few of the machines that were there at the Thane plot of land, which we've already signed a development agreement for. So we are looking at shifting those to another facility where we've already identified around INR20 crores to INR30 crores of capex on ancillary and these flux code wire lines and everything.
  • M&A One or two companies Acquisition · Pending regulatory

    To achieve INR 1,000 crore revenue through linear growth and another INR 1,000 crore through acquisitions, expanding into welding equipment, safety equipment, and maintenance products.

    Aims to reach INR 2,000 crores by acquiring companies in 5-6 years.

    Umesh Agarwal: So in next five to six years, we are planning that companies will be INR2,000 cr. by acquiring such companies. We do know that acquiring such companies is also not very easy, but we are already in the process to speak of one or two companies and we are getting a good feedback from them. So hopefully by this or next year, we will be able to acquire one or two.
  • Liquidity Liquidity disclosed Company aims for better cash flows and a lighter balance sheet, having disposed of a land parcel in Q4 FY26 and part of an investment property in Q1 FY27 to generate substantial cash flow.
    Payal Agarwal: We are looking at better cash flows also this year because in the current year also, the company had taken on this target to make the balance sheet more light and agile and lean. And that is what we did also in FY25-'26. The company disposed off a parcel of land in Q4 FY26. And also, if you see, if you must have read in the first quarter of FY27, it has also disposed off part of the investment property. So, a substantial chunk of cash flow has generated from there.

Guidance & targets

Revenue

  • Total Revenue Revenue · FY29-2030 · High confidence INR 1,000 crore
    Payal Agarwal: FY29-2030 is when we are looking at hitting a INR1,000 crore mark.

    — Payal Agarwal

  • Revenue CAGR Revenue · till FY29 · High confidence 25% to 30%
    Payal Agarwal: We are looking at a 25% to 30% target revenue growth CAGR till FY29.

    — Payal Agarwal

  • Top Line Revenue · FY27 · High confidence INR 500 crore plus
    Payal Agarwal: We are looking at a 10% plus margin EBITDA margin and we are looking at a INR 500 crore plus top line as well.

    — Payal Agarwal

  • Flux Cored Wire Revenue Revenue · annum · High confidence INR 50 cr.
    Umesh Agarwal: Third, there's going to huge, we are planning to get around more than INR50 cr. revenue from flux core wires every annum.

    — Umesh Agarwal

  • Defense Project Revenue Revenue · this year · Medium confidence more than double (from INR 10-12 cr)

    From INR 10-12 cr today

    Umesh Agarwal: Last year, I think we have got a share of more than INR10 cr. to INR 12 cr. of that particular project. And this year, which we are planning that it will go more than double.

    — Umesh Agarwal

Margin

  • EBITDA Margin Margin · FY27 · High confidence 10% plus
    Payal Agarwal: We are looking at a 10% plus margin EBITDA margin and we are looking at a INR 500 crore plus top line as well.

    — Payal Agarwal

  • EBITDA Margin Progression Margin · upcoming years · Medium confidence 10% to 11% to 12%, and then 13% plus
    Payal Agarwal: We're also targeting to take this up even higher to double digit EBITDA margins, going up from 10% to 11% to 12%, and then 13% plus EBITDA margins, stabilized and sustainable EBITDA margins.

    — Payal Agarwal

EBITDA

  • EBITDA EBITDA · FY27 · High confidence INR 45 crores
    Payal Agarwal: Yes. So INR45 crores of EBITDA, of course, is something that we are looking at for this year as well.

    — Payal Agarwal

Market Share

  • Market Share Capture Market Share · short term · Medium confidence 10% to 15%
    Payal Agarwal: We are only talking about capturing around 10% to 15% of the market.

    — Payal Agarwal

Capacity

  • Capacity Utilization Capacity · this year · High confidence 80% to 90%

    From 57% today

    Umesh Agarwal: So all those are lined up so that we can at least use our 80% to 90% of capacity, which will help us to increase our revenue.

    — Umesh Agarwal

Business Growth

  • Cobalt Alloys Business Business Growth · this year · Medium confidence double
    Umesh Agarwal: This year, we are also looking to double the business of cobalt alloys as well.

    — Umesh Agarwal

Export

  • Export Business Growth Export · within two years · High confidence more than three times
    Umesh Agarwal: So, it's going to also, I think, within two years, we will grow our export business more than three times.

    — Umesh Agarwal

M&A

  • Acquisition of Companies M&A · by this or next year · Medium confidence one or two companies
    Umesh Agarwal: So hopefully by this or next year, we will be able to acquire one or two.

    — Umesh Agarwal

  • Revenue from Acquisitions M&A · in next five to six years · Medium confidence INR 2,000 cr.
    Umesh Agarwal: So in next five to six years, we are planning that companies will be INR2,000 cr. by acquiring such companies.

    — Umesh Agarwal

Cash Flow

  • Cash Flow from Thane Land Monetization Cash Flow · over the next five years · High confidence more than INR 400 cr.
    Payal Agarwal: I think, yes, this is something, this is an announcement that we made in Q3 FY26 about the company being successfully signing a development agreement with the builder for the non-core monetization, the unlocking of the value of its parcel of land, which is stand right there in the heart of Thane, which has been declared as a smart city. So, the Wagle Industrial Estate is where the company already has more than 13,000 approximate square meter of land parcel, which it will, it's planning to develop into commercial space and unlock its value and generate cash flows of more than INR400 cr. approximately into the company over the next five years.

    — Payal Agarwal

What to watch in Q1 FY27

FY27 Top Line Revenue

FY27
Current FY26 Revenue: INR 370 crores
Target INR 500 crore plus

Why it matters

Tracking this will indicate progress towards the ambitious FY29-30 target of INR 1,000 crores and the immediate growth trajectory.

Payal Agarwal: We are looking at a 10% plus margin EBITDA margin and we are looking at a INR 500 crore plus top line as well.

Risks & concerns

  • Seasonality and labor shortages in Q1

    medium

    Q1 is typically slower due to monsoon season impacting infrastructure projects and extreme labor shortages across sectors.

    Management acknowledged

  • Competition and pricing pressure

    medium

    GEE's pricing is 6-7% lower than established competitors like ESAB and Ador in the domestic market, though they aim to narrow this gap.

    Analyst acknowledged

  • Difficulty in M&A execution

    low

    Acquiring companies is 'not very easy', despite plans to acquire 1-2 companies by next year to reach INR 2,000 cr revenue in 5-6 years.

    Management acknowledged

Q&A highlights

5 direct
Sector-wise revenue contribution and growth drivers Partial
See, it's very difficult even for automotive sector also. It's very difficult to give a breakup of that. For example, I tell you like L&T. L&T does work for power sector also, nuclear also, for bullet train as well. And then refineries and power sector also. So, they buy for all the sectors.

Analyst sought clarity on specific sector contributions to the ambitious growth target, but management indicated difficulty in providing a precise breakdown due to customer diversification across sectors.

Asked by Ankit Gupta

Margin targets for FY27 Direct
We are looking at a 10% plus margin EBITDA margin and we are looking at a INR 500 crore plus top line as well.

Management provided specific EBITDA margin and top-line targets for the upcoming fiscal year, indicating confidence in margin expansion.

Asked by Ankit Gupta

Product basket and pricing comparison with competitors (ESAB, Ador) Partial
No, our prices are definitely lower than Ador and ESAB. See, both these companies are much older and they have got a much better brand image than us... in this particular segment, their pricing is better than us. But we believe because of our recent new marketing strategy and everything, soon we would be able to go near by them. ... I think we can say we are 6%, 7% lower.

Analyst questioned competitive positioning, revealing GEE's lower pricing strategy compared to established players, indicating a focus on market penetration and volume, with a goal to narrow the price gap.

Asked by Ankit Gupta

Revenue from specialized defense applications (INS Vikrant) Direct
Last year, I think we have got a share of more than INR10 cr. to INR 12 cr. of that particular project. And this year, which we are planning that it will go more than double. ... Yeah, INR25 crores was from the specialized applications. That is only for defense.

Provided specific revenue figures for specialized defense projects, highlighting a significant growth expectation (doubling) in this high-value segment.

Asked by Madhu Rathi

Confidence in 25-30% growth target compared to peers Direct
I think you should ask our peers why they're not talking about this growth because the Indian welding industry itself is, I think, a INR15,000 crore to INR20,000 crore market. And right now, today, we are standing at anywhere close to only INR400 crores. We are not even talking about very, very exponential numbers. We are only talking about capturing around 10% to 15% of the market.

Management justified their ambitious growth target by emphasizing the large untapped market potential in the Indian welding industry and their current small market share, suggesting significant headroom for growth.

Asked by Rahul Jain

Working capital cycle and cash flow generation Direct
We are looking at better cash flows also this year because in the current year also, the company had taken on this target to make the balance sheet more light and agile and lean. And that is what we did also in FY25-'26. The company disposed off a parcel of land in Q4 FY26. And also, if you see, if you must have read in the first quarter of FY27, it has also disposed off part of the investment property. So, a substantial chunk of cash flow has generated from there.

Management addressed concerns about working capital by detailing actions taken, including asset monetization, to improve cash flow and strengthen the balance sheet.

Asked by Majid Ahmed

Utilization of Thane land proceeds Direct
I would say like more than giving a reward in terms of not only in terms of dividend, but also giving a reward in terms of share values. So what we were thinking, actually, a dividend is one thing which we may think or which we are planning. Secondly, what we are thinking of that money, how it will be utilized, it will be utilized to buy certain companies... So in next five to six years, we are planning that companies will be INR2,000 cr. by acquiring such companies.

Management outlined a clear capital allocation strategy for the proceeds from asset monetization, prioritizing M&A for future growth and shareholder value creation over immediate dividends.

Asked by Ankit Gupta

3 min read 6 chapters

Detailed narrative

Company Restructuring and Strategic Realignment

GEE Limited underwent a significant restructuring in May 2025, with some promoters exiting, leading to a realigned management focused on aggressive growth. The current management, including Mr. Umesh Agarwal (Joint Managing Director) and Ms. Payal Agarwal (CFO), brings over 25-30 years of industry experience. This restructuring is seen as a pivotal step towards achieving better growth and a focused vision for the upcoming years, aiming to stabilize operations and pursue aggressive expansion.

Robust Q4 FY26 Performance and FY27 Outlook

The company reported a strong Q4 FY26 with a turnover of INR 112 crores, contributing to a full-year FY26 turnover of INR 370 crores, up from INR 334 crores in FY25 (10.77% YoY growth). Q4 EBITDA stood at INR 33 crores, achieving a 9% margin, and PAT was INR 13 crores (3.5% margin). For FY27, GEE targets a top line of over INR 500 crores and an EBITDA of INR 45 crores, with a goal to achieve double-digit EBITDA margins (10%+) and progressively reach 13%+.

Product Development and Entry into Critical Sectors

GEE Limited has made significant inroads into critical sectors through specialized product development. For defense, products like Griduct 100 and GEEFLUX 521 are used for aircraft carriers (e.g., Vikrant), with discussions ongoing for submarine consumables. The company recently received NPCIL approval for the nuclear power sector, becoming one of only two approved Indian companies. They have also developed Inconel electrodes (with pending orders of over 20 tons) and cobalt alloys (INR 10 crore business in FY25, targeted to double this year), catering to high-value, niche applications.

Capacity Expansion and Operational Efficiency

The company plans to increase its capacity utilization from the current 57% to 80-90% by adding ancillary machines and optimizing existing lines, requiring minimal CapEx. An investment of INR 20-30 crores is planned for ancillary machines and flux cored wire lines, with flux cored wire production expected to generate over INR 50 crores in annual revenue. Additionally, GEE is exploring installing solar power in its factories to improve power factor and reduce costs, contributing to margin improvement.

Strategic Growth Vision and Market Share Capture

GEE Limited aims to become an INR 1,000 crore company by FY29-2030, targeting a 25-30% revenue CAGR. This growth will be driven by capturing a larger share (10-15%) of the INR 15,000-20,000 crore Indian welding industry, particularly in organized sectors. Key growth drivers include the power, railway, defense, and export sectors. The company also plans to grow its export business more than three times within the next two years, leveraging new approvals in markets like Abu Dhabi, Saudi Arabia, and Russia.

Asset Monetization and M&A Strategy

To bolster cash flows and fund growth, GEE successfully signed a development agreement for its Thane land parcel in Q3 FY26, expected to generate over INR 400 crores over five years. A part of an investment property was also disposed of in Q1 FY27, generating substantial cash. These funds will be strategically deployed, not just for shareholder rewards, but also for acquiring one or two companies by next year. The long-term M&A strategy aims to reach INR 2,000 crores in revenue within five to six years by acquiring companies in welding equipment, safety, and maintenance products.

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