Frontier Springs — Q2 FY26 earnings call

Call held 14 Nov 2025

Management summary

Frontier Springs Ltd. delivered a strong financial performance in Q2 and H1 FY26, exceeding prior year figures across all key metrics. The company is confident in achieving its ambitious revenue targets for FY26 and FY27, supported by a healthy order book and strategic product developments like the FIBA system. Management highlighted sustained demand from the railway sector and ongoing capacity enhancements, including the 6-tonne hammer project, as key drivers for future growth.

Highlights

  • Q2 FY26 Revenue from operations stood at INR 82.74 crores, marking a 58.39% YoY growth.

  • EBITDA for Q2 FY26 surged by 106.53% YoY to INR 22.07 crores.

  • Profit after tax (PAT) for Q2 FY26 more than doubled to INR 15.71 crores, an impressive 115.5% YoY rise.

  • H1 FY26 Revenue from operations reached INR 158.08 crores, growing 53.49% YoY.

  • H1 FY26 EBITDA was INR 42.5 crores, demonstrating 107.92% YoY growth.

  • H1 FY26 PAT crossed INR 30.45 crores, reflecting a 113.37% YoY increase.

  • The company maintains its gross revenue target of INR 375 crores for FY26 and projects INR 500 crores for FY27.

  • Development of the FIBA system is progressing, with RDSO approval anticipated shortly and commercialization planned for the next financial year.

Key financials

2 periods

Q2 FY26

  • Revenue from Operations
    ₹82.74 Cr
    YoY +58.4%
  • EBITDA
    ₹22.07 Cr
    YoY +106.5%
  • Profit After Tax
    ₹15.71 Cr
    YoY +115.5%

H1 FY26

  • Revenue from Operations
    ₹158.08 Cr
    YoY +53.5%
  • EBITDA
    ₹42.5 Cr
    YoY +107.9%
  • Profit After Tax
    ₹30.45 Cr
    YoY +113.4%

What they filed

Q1 FY27: revenue up 4.0%, net profit down 20.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue52 58 70 75 83 +60%81 +40%83 +19%78 +4%
EBITDA11 12 17 20 22 +100%20 +67%24 +41%19 −5%
Net profit7 9 12 15 16 +129%14 +56%17 +42%12 −20%
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.

Segment breakdown

Share of Revenue (Q2 FY26)
₹86.5 Cr Total
  • Air Springs ₹35 Cr 40.5%
  • Coil Springs ₹35 Cr 40.5%
  • Forging ₹16.5 Cr 19.1%

Order book

high confidence

Total value

₹225 Cr

as of 2026-03-31 range

Inflow this quarter

₹70 Cr

The company has sufficient orders to meet its FY26 revenue target and has already secured INR 60-80 crores for FY27, expecting INR 200-250 crores in hand by FY26 end.

Source: Q&A

Capital allocation

high confidence
  • Capex ₹15 Cr entirely through own resources without debt
    • Capacity increase and bottleneck removal in Coil Spring, Air Spring, and Forging divisions
    • Testing machines for FIBA system ₹2 Cr
    The CAPEX, like this year, we are doing it around INR 15 crores in all our 3 divisions and around half year, we have already done around INR 8 crores of CAPEX for Coil Spring, Air Spring and Forging divisions. And further INR 7 crores-8 crores will be done in another 6 months. So, it is not only the Air Spring we are also increasing in Coil Spring division as well as in Forging division, where the bottlenecks are and capacity increase is required. So, we are already doing it, and it is a continuous process. This year, we are doing around INR 15 crores CAPEX in half year, we have already done INR 8 crores. And so it is a continuous process. Wherever it is required, we will do it. And we are doing it with our own resources. We are not taking any loans or we are not going anywhere for that, we have plow back the money to the company.
  • Liquidity Liquidity disclosed Company is funding its CAPEX through internal accruals, indicating a healthy cash position.
    We are not taking any loans or we are not going anywhere for that, we have plow back the money to the company.

Guidance & targets

Revenue

  • Gross Revenue Revenue · FY26 · High confidence INR 375 crores
    We focus on achieving a gross revenue amounting to INR 375 crores for the full Fiscal Year 25-'26

    — Kapil Bhatia

  • Gross Revenue Revenue · FY27 · High confidence INR 500 crores
    and further progressing to INR 500 crores gross revenue in the following year.

    — Kapil Bhatia

  • Forging Division Revenue Revenue · FY26 · High confidence INR 75-80 crores
    Like this year will be as far as Forging divisions are concerned, we are planning to close this year around INR 75 crores to INR 80 crores.

    — Kapil Bhatia

  • Forging Division Revenue Revenue · FY27 · Medium confidence INR 100-115 crores
    And next year, we may touch around INR 100 crores to INR 115 crores next year.

    — Kapil Bhatia

  • FIBA Business Revenue · FY27 · Medium confidence INR 40-50 crores
    After a successful trial, I think we'll be able to get around INR 40 crores to INR 50 crores business.

    — Kapil Bhatia

  • Long-term Revenue Revenue · within 5 years · High confidence INR 1,000 crores
    Sir, definitely, we will cross INR 1,000 crores in the next 5 years.

    — Kapil Bhatia

  • Gross Revenue Revenue · FY27 · Medium confidence INR 560-575 crores

    Previously INR 500 crores → INR 560-575 crores

    So, yes, it is always there that INR 500 crores will go to INR 560-575 crores next year

    — Kapil Bhatia

  • Gross Revenue Revenue · FY28 · Medium confidence INR 600 crores
    and then INR 600 crores.

    — Kapil Bhatia

Profitability

  • EBITDA Margins Profitability · FY26 · High confidence 26-27%

    Previously 21-22% → 26-27%

    Yes, at least for this year, I am confident that we will be doing this [26-27% margins].

    — Kapil Bhatia

Corporate Action

  • NSE Listing Corporate Action · Q1 FY27 · High confidence Completed
    And we are planning to have our NSE listing in the next financial year's first quarter.

    — Kapil Bhatia

What to watch in Q3 FY26

FIBA RDSO Approval & Commercialization

Next financial year
Current Samples ready by December end, approval applied for.
Target RDSO approval secured, commercialization plan initiated.

Why it matters

This new, high-margin product is expected to be a significant growth driver, with Frontier aiming to be an early domestic player.

We anticipate securing RDSO approval shortly with commercialization plan in the next financial year.

Risks & concerns

  • Wheelset shortage in railways

    low

    Wagon builders (Jupiter, Titagarh) reported wheelset shortage resolved, expecting smooth operations for next 6 months.

    I came to know from the wagon builders from Jupiter and Titagarh, they are saying that it has been resolved and for the next 6 months, they are lagging because there was some problem in import or something like that. So, they are saying that it has been resolved and things will move smoothly for the next 6 months.

    Analyst acknowledged

Q&A highlights

8 direct
EBITDA Margins Sustainability Direct
No, we keep on improving on our sales price and capitalization on the demand by railways. And it's an opportunity to have that much of margin in our product, and we hope to close year by this almost the same range of margins. ... Yes, at least for this year, I am confident that we will be doing this.

Analyst questioned the sustainability of higher-than-expected EBITDA margins (27% vs. 21-22% guidance), and management confirmed confidence in maintaining these margins for the current fiscal year.

Asked by Priyanshu Jain

H2 FY26 Revenue Pace and Railway Delivery Schedules Direct
Actually, railway has a delivery schedule for all the tenders. So, we know that this is the delivery schedule given for this financial year and the orders coming in, which is a delivery schedule for the next financial year, April onwards. So, if we execute here, we will not get money back, and they might not receive our material. So, we have to adhere the delivery schedule of Indian Railway. So, that's why we are on these numbers.

Analyst questioned why H2 revenue wouldn't accelerate significantly beyond H1 to exceed the full-year target, given strong demand. Management clarified that adherence to Indian Railway's strict delivery schedules dictates the execution pace, preventing early fulfillment.

Asked by Garvit Goyal

FIBA System Development and Market Potential Direct
It is 100% in-house, and we have a professional who has experience in this line, and they are employed by us, and we have some consultant also. So, it has been developed totally in-house by us because it is a little bit of secretive thing also because of we are applying for patent also. ... After a successful trial, I think we'll be able to get around INR 40 crores to INR 50 crores business. INR 100 crores is just Vande Bharat and LHB.

Analyst sought details on the new FIBA system. Management confirmed it's 100% in-house developed, targeting a significant INR 100 crore market (Vande Bharat, LHB) with an expected INR 40-50 crore business for Frontier post-trial, and similar high margins.

Asked by Akshay Kaila

CAPEX for FIBA System Direct
A few machines are used with the existing capacity. But for the testing and other thing, we required around INR 2 crores, which we are already investing. Already advances are given, and the testing machines are coming in. So, it's 50% utilization in this product for the current machines and the manufacturing part will be taken care by current machines and testing part, we required machines. So, we are already buying those machines.

Analyst inquired about the capital expenditure required for the new FIBA system. Management clarified that only about INR 2 crores is needed for testing machines, with manufacturing largely leveraging existing capacity, indicating efficient capital deployment for a new product.

Asked by Yashovardhan Banka

Forging Division Margins and 6-tonne Hammer Contribution Direct
Actually, Forging division has a lesser margin than the Coil Spring and Air Spring, you are quite right. But the market which we are targeting, that will improve a little bit of margin also in the forging items. And you are also quite right that capacity utilization will also give us an edge on improving our profitability and margin. ... Yes, definitely, you will see in the second half, we have already started getting orders from the railways and things are also started moving in. But at the moment, we are able to utilize around 10% to 20% capacity only.

Analyst probed on margin improvement in the forging division and the contribution of the new 6-tonne hammer. Management confirmed efforts to improve forging margins through product mix and capacity utilization, with the 6-tonne hammer expected to contribute significantly in H2 FY26 despite current low utilization.

Asked by Mahesh Atal

Orders from Siemens and Alstom Direct
Yes, it is already on and it is almost on the verge of completion. And we are quite hopeful by that another 1-1.5 months, we will start getting orders from Alstom.

Analyst asked for an update on discussions with major clients like Siemens and Alstom. Management provided a clear timeline, expecting to secure orders within 1-1.5 months, signaling new business opportunities.

Asked by Santosh

NSE Listing Plans Direct
We are already planning to go ahead with the NSE listing, and we have already started working on those lines. And we are planning to have our NSE listing in the next financial year's first quarter.

Analyst inquired about the company's plans for an NSE listing. Management confirmed active plans and provided a specific timeline of Q1 FY27, which is a significant corporate development.

Asked by Piyush Bora

Long-term Revenue Aspirations (INR 1,000 Crores) Direct
Sir, definitely, we will cross INR 1,000 crores in the next 5 years. There is no doubt about it, whether with the increased number of products supplying to Indian Railways because they are our priority and most important customer. ... So, yes, it is always there that INR 500 crores will go to INR 560-575 crores next year and then INR 600 crores. But going to INR 1,000 crores, bigger jump, we need more product into our kitty.

Analyst questioned the company's long-term revenue aspirations beyond FY27. Management articulated a clear target of INR 1,000 crores within 5 years, acknowledging it requires new products and continued focus on the railway sector, providing a strategic roadmap.

Asked by Devesh Shrimali

3 min read 7 chapters

Detailed narrative

Robust Financial Performance in Q2 and H1 FY26

Frontier Springs Ltd. reported exceptional financial results for Q2 FY26, with revenue from operations growing 58.39% YoY to INR 82.74 crores. EBITDA saw an even more significant increase of 106.53% YoY, reaching INR 22.07 crores, while Profit After Tax (PAT) surged by 115.5% YoY to INR 15.71 crores. For the first half of FY26, the company achieved INR 158.08 crores in revenue, INR 42.5 crores in EBITDA, and INR 30.45 crores in PAT, representing YoY growth rates of 53.49%, 107.92%, and 113.37% respectively. Management expressed confidence in sustaining EBITDA margins of 26-27% for the full fiscal year.

Strong Order Book and Future Revenue Visibility

The company maintains a healthy order book, providing substantial visibility for the remainder of the fiscal year. Management confirmed that existing orders are sufficient to achieve the FY26 gross revenue target of INR 375 crores. For FY27, the company has already received INR 60-80 crores in orders and anticipates an order book of INR 200-250 crores by the end of FY26. This strong pipeline underpins the confidence in achieving a gross revenue of INR 500 crores for FY27, with a potential to reach INR 560-575 crores.

Strategic Product Development: FIBA System

Frontier Springs is advancing its air spring portfolio with the in-house development of the Failure Indication and Brake Application (FIBA) system. This innovative product, currently imported by foreign players, aims to enhance operational safety in railway coaches. The company has applied for RDSO approval, with samples expected by December end, and plans for patenting. Management estimates a total addressable market of INR 100 crores for FIBA, expecting to secure INR 40-50 crores in business from FY27 with similar high margins, leveraging its position as an early domestic developer.

Capacity Expansion and Operational Efficiency

The 6-tonne hammer project is progressing well, with improved capacity utilization expected in the forthcoming quarter. Currently, the 6-tonne hammer operates at 15-20% utilization, while 2-tonne and 3-tonne hammers are at 60-70%. The company is undertaking a total CAPEX of INR 15 crores for FY26, with INR 8 crores already spent in H1, to address bottlenecks and increase capacity across its Coil Spring, Air Spring, and Forging divisions. This CAPEX is being funded entirely through internal accruals, without external debt.

Long-term Growth Aspirations and Market Share

Frontier Springs aims for significant long-term growth, targeting INR 1,000 crores in revenue within the next five years. This ambitious goal will be driven by an increased number of products supplied to Indian Railways, which remains the company's priority customer. The company currently holds a market share of approximately 40% in both Coil Spring and Air Spring segments for Indian Railways, and 20-25% in the Forging division. Management is confident in maintaining its dominant position due to the stringent railway approval process, which acts as a significant barrier to entry for new competitors.

New Client Acquisition and Partnerships

The company is actively pursuing new client opportunities, with discussions for supplying air springs to Siemens and Alstom nearing completion. Management expressed optimism about starting to receive orders from Alstom within the next 1-1.5 months. This expansion into new client relationships is expected to contribute to future revenue growth and diversify the customer base within the railway ecosystem.

Corporate Development: NSE Listing

Frontier Springs is actively working towards an NSE listing, with plans to complete the process in the first quarter of the next financial year (Q1 FY27). This strategic move is expected to enhance the company's market visibility, improve liquidity for its shares, and potentially provide better access to capital for future growth initiatives, aligning with its long-term expansion plans.

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