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    Sealmatic India

    543782
    Capital Goods·9 Jun 2025
    Management Summary

    Sealmatic India delivered a robust financial performance in FY25, with sales turnover growing 42.1% to INR101 crores and PBT increasing 57% to INR21.27 crores. PAT and EPS both surged by 61%, supported by a 25% organic order intake growth. While the company is expanding its global footprint and capacity, management foresees potential margin pressure over the next two years and acknowledges high working capital until a higher revenue threshold is met.

    Highlights

    6
    • Sales turnover in FY25 of INR101 crores, up 42.1% YoY compared to INR71 crores in FY24.

    • PBT increased by 57% to INR21.27 crores, representing 20% of total turnover.

    • PAT and EPS both saw a significant increase of 61% YoY.

    • EBITDA grew by 11% to INR24.84 crores, with an EBITDA margin of 24.18% for FY25.

    • Net worth increased by 17% to INR102 crores, demonstrating financial strength.

    • Achieved a 25% year-on-year organic order intake growth for FY25.

    Concerns

    3
    • Anticipated margin pressure for the next 2 years due to new project bidding and strategic investments.

    • Working capital and inventory levels are expected to remain high until turnover exceeds INR200 crores.

    • A slight slack is observed in the Indian project industry currently.

    What Changed2

    vs Q2 FY26

    Guidance items5 → 3 (-2)Risks discussed4 → 3 (-1)

    Key financials

    Single quarter

    07 metrics
    1. 01Sales Turnover₹101 Cr+42.1%YoY
    2. 02PBT₹21.27 Cr+57.0%YoY
    3. 03EBITDA₹24.84 Cr
    4. 04EBITDA Margin24.2%+11%YoY
    5. 05PAT Growth61%

    Order Book

    high confidence

    Composition

    Mix8 geographys
    • Domestic Sales38.0%
    • Export Sales62.0%
    • Europe (Export)26.0%
    • USA (Export)9.9%
    • South America (Export)1.9%
    • Middle East (Export)2.5%
    • Russia (Export)10.5%
    • Rest of World (Export)11.8%

    Share of order book by geography · partial disclosure (162.6% of book)

    Pipeline

    other

    The company is actively driving penetration in various markets to establish itself as a global player.

    "Management highlighted strong organic order intake growth for FY25 and detailed the geographic breakdown of sales, emphasizing expansion in key international markets."

    Source:
    Prepared remarks

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Guidance & targets

    3
    CategoryTargetPriority
    Revenue
    Year-on-year Revenue Growth
    15% to 20%
    High
    Revenue
    Mid-term Revenue Target
    INR225 crores
    Medium
    Market Share
    New Market Share in India (API segment)
    15%
    High

    UAE Service Center Operational Status

    July 2025
    CurrentYet to start operations
    TargetUp and running

    Why it matters

    The commencement of UAE service center operations is a key step in expanding the company's global footprint and service revenue capabilities.

    Umar A.K. Balwa: "We are yet to start operations in Abu Dhabi. So that would be up and running in July 2025."

    How to verify

    detailed_narrative[title='Market Expansion and Global Footprint']

    Risks & concerns

    3
    RiskSeverity

    Margin Pressure from New Projects

    Management expects margin pressure for the next 2 years due to strategic bidding on new projects to secure long-term value.Management acknowledged

    medium

    High Working Capital and Inventory

    Working capital and inventory levels are high and are expected to remain so until the company's turnover crosses INR200 crores.Both acknowledged

    medium

    Slack in Indian Project Industry

    A slight slowdown is currently observed in the Indian project industry, though this is offset by strong international demand.Management acknowledged

    low

    Q&A highlights

    8

    “Yes. As I mentioned in the last earnings call, our majority is totally new seals at the moment. So, we are yet to see the commissioning and installation happening, which will happen in FY '27.”

    Clarifies the current revenue mix is predominantly new seals, with recurring replacement revenue expected to materialize from FY27.

    asked by Arnab Bhattacharjee

    2 min read5 chapters

    Detailed Narrative

    01

    Financial Performance FY25 Highlights

    Sealmatic India reported a strong financial year 2025, with sales turnover reaching INR101 crores, a significant increase of 42.1% compared to INR71 crores in FY24. Profit before tax (PBT) surged by 57% to INR21.27 crores, representing 20% of the total turnover. The company's EBITDA for FY25 was INR24.84 crores, achieving a 24.18% margin, which is an 11% improvement over the previous year's 21.77% EBITDA margin. Both PAT and EPS also saw substantial growth of 61% year-on-year, and the net worth increased by 17% to INR102 crores.

    02

    Market Expansion and Global Footprint

    The company is actively expanding its global presence, with a joint venture in UAE, SealTech LLC, expected to be operational by July 2025 to serve major customers like ADNOC. Sealmatic is also investigating similar service center activities in Oman, Kuwait, and Qatar. Exports contributed 62% to total sales, with Europe accounting for 42% of exports, USA 16%, Russia 17%, and the Middle East 4%. The company is participating in numerous international exhibitions, including Defence Expo in Chennai, Pump Symposia in USA, and RoTIC in UAE, to drive market penetration.

    03

    Capacity and Operational Outlook

    Sealmatic's new unit in Kaman is set to add 6% to its production capacity. Management anticipates reaching peak operational capacities by calendar year-end December 2025, with a maximum utilization target of 80% due to the specialized nature of its products. The company confirmed that its supply chain remains intact despite global challenges🌐, with no disruptions expected. The majority of current sales are for new seals, with replacement business and associated commissioning expected to commence from FY27.

    04

    Strategic Focus and Future Growth Drivers

    Sealmatic is committed to continuous investment in research and development to maintain its leadership in sealing technology. The company sees significant opportunities in the nuclear sector, both globally and in India, with a 'great demand' for its universal seals applicable to both compact and conventional reactors. Management aims for a 15-20% year-on-year revenue growth and targets crossing INR225 crores in turnover by 2028-2029. They are also targeting a 15% market share in the new pump segment within India.

    05

    Working Capital and Margin Outlook

    Management indicated that working capital and inventory levels, currently at INR50 crores and INR25 crores respectively, will remain high due to the nature of the business until turnover exceeds INR200 crores. They anticipate margin pressure for the next two years as the company strategically bids for new, large projects, particularly in the Middle East, which may involve sacrificing short-term margins for long-term value creation. Despite a slight slack in the Indian project industry, strong international demand is expected to offset this.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.