Cosmic CRF

Cosmic CRF reported robust financial results for H2 and FY26, with H2 revenue growing 77% YoY to INR 412 crores and net profit surging 128% YoY. For the full year FY26, revenue increased by 78% and net profit by 74%. The company's total order book expanded significantly to INR 760 crores, up from INR 500-550 crores in the previous year, providing strong revenue visibility for infrastructure and railway items. Cash flow from operations turned positive at INR 3.5 crores, a significant improvement from a negative INR 90 crores last year.

The company successfully navigated legal challenges to confirm its H1 bidder status for Amzen Transportation Industries Private Limited, with the Supreme Court setting aside a previous NCLAT order. Management expects to receive the Letter of Intent (LOI) by June 2026, with commercial production from Amzen anticipated within 9-12 months. Amzen is projected to cost over INR 400 crores and will expand wagon manufacturing capacity from 3,600 to 7,200 wagons per annum, making Cosmic CRF a fully integrated wagon ecosystem. However, Amzen's financial contribution is not expected in FY27 due to the integration timeline.

Cosmic CRF's installed capacity now stands at 133,600 metric tonnes across its four manufacturing plants, with actual production reaching 106,370 metric tonnes in FY26, a 90% jump in volumes YoY. The company invested over INR 30 crores in CapEx this year for new sheds and machinery. Capacity utilization for standalone operations was 80% (42,690 MT out of 55,000 MT), with management targeting 90% by next year, contingent on receiving the RDSO license for its springs business, expected next month. Total installed capacity is projected to reach 175,000-190,000 metric tonnes with Amzen.

The springs business generated INR 67 crores in revenue in FY26 but yielded only INR 1.5 crores in profit due to the absence of an RDSO license, which restricts direct sales to railways. Once the license is obtained (expected next month), PAT margins are projected to significantly increase to 10-18%. The new forging unit is under construction and is expected to commence commercial production within the next nine months. These segments combined are projected to contribute INR 300-350 crores in top line by FY28, with CSEL volumes growing to 10,000-12,000 MT in FY27 and 22,000-23,000 MT in FY28.

The company maintains a 'debt light' position, with total term loans at INR 36 crores against an asset book exceeding INR 500 crores. Interest payments for FY26 were INR 12.2 crores, up from INR 6.6 crores in FY25, primarily due to a 10.5% cost of debt from Bank of India. Management anticipates an additional INR 200-250 crores in term loans for Amzen and forging expansion. Total debt is expected to stabilize around INR 300 crores term loan and INR 300 crores working capital by 2028, while targeting a 30-35% Return on Capital (ROC) by FY29.

Cosmic CRF aims for a total capacity of 350,000 metric tonnes by FY29, which could translate to INR 3,500 crores in revenue. The company is actively pursuing new orders from the West Bengal government for various infrastructure projects (metros, bridges, crash barriers) and plans to enter sea freight container manufacturing at Amzen. Management emphasized its focus on long-term contracts and hedging strategies to mitigate raw material price volatility, positioning the company for sustained growth in the capital goods sector, with FY27 revenue growth projected at 20-25% higher than today.

Cosmic CRF is eligible for main board listing on June 30, 2026, and plans to apply to both BSE and NSE in the first week of July 2026. This strategic move is expected to enhance the company's market visibility, liquidity, and access to a broader investor base, aligning with its ambitious growth plans.