Cosmic CRF — Q4 FY26 earnings call

Call held 26 May 2026

Management summary

Cosmic CRF delivered strong financial results for H2 and FY26, marked by significant revenue and net profit growth and a positive shift in cash flow from operations. The company successfully advanced the strategic acquisition of Amzen Transportation, securing H1 bidder status. While current profitability was affected by integration costs and pending regulatory approvals, management outlined ambitious capacity expansion plans and a clear vision for substantial revenue growth and improved margins by FY29, including a planned main board listing.

Highlights

  • Total order book increased to INR 760 crores from INR 500-550 crores last year, indicating strong revenue visibility.

  • H2 FY26 Revenue grew 77% YoY to INR 412 crores, and H2 FY26 Net Profit surged 128% YoY, demonstrating robust financial performance.

  • Cash flow from operations turned positive at INR 3.5 crores, a significant improvement from INR 90 crores negative last year.

  • The company secured H1 bidder status for Amzen Transportation Industries Private Limited, a major strategic acquisition expected to drive future growth.

  • Installed capacity reached 133,600 metric tonnes, with actual production of 106,370 metric tonnes in FY26, representing a 90% jump in volumes YoY.

Concerns

  • FY26 PAT was impacted by INR 8 crores due to low profitability in the springs business (INR 1.5 crores profit on INR 67 crores revenue), costs associated with carrying Amzen KMPs (INR 2-2.5 crores), and legal costs for Amzen.

  • Capacity utilization for standalone operations was 80% (42,690 MT out of 55,000 MT) due to a pending RDSO license for the springs business, which is expected next month.

  • Amzen's top line and bottom line are unlikely to contribute significantly in FY27 due to the 9-12 month integration, repair, and regulatory clearance timeline.

Key financials

3 periods

Headline

  • Cash Flow from Operations
    ₹3.5 Cr

H2

  • FY26 Revenue
    ₹412 Cr
    YoY +77%
  • FY26 EBITDA Growth
    81%
  • FY26 Net Profit Growth
    128%

FY26

  • Revenue Growth
    78%
  • Net Profit Growth
    74%
  • PAT
    ₹50.6 Cr
  • Revenue (Total)
    ₹722 Cr
  • Interest Payment
    ₹12.2 Cr
  • Springs Business Revenue
    ₹67 Cr
  • Springs Business Profit
    ₹1.5 Cr

What they filed

₹ Cr · quarterly
Line itemQ2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue169 232 304 412
EBITDA22 22 38 41
Net profit18 11 24 26
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

high confidence

Total value

₹760 Cr

as of 2026-03-31 quantified

Composition

  • Infrastructure items (other)
  • Railway items (other)

Pipeline

L1 awaiting loa

LOI pending from Amzen Transportation Industries Private Limited

The order book is robust and significantly higher than the previous year, supported by products for infrastructure from NS Engineering Projects Private Limited.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹30 Cr
    • New sheds (6,000 sq ft and 11,000 sq ft)
    • New lines, cutting, slitting, EOT cranes
    • R&D space
    They have made a proper CapEx of more than 30 odd crores over the year because they have had to install two new lines, cutting, slitting line separately with all the EOT cranes and all the works. Along with that, the design ability has also improved with the entire R&D space.
  • Debt Debt disclosed Cost 10.5%
    The interest is also a big issue here. The interest has happened because of Bank of India, which is one of the first banks that funded us. Now their cost of funding is much higher than SBI or any of the scheduled banks for whatever reasons best known to their management.
  • M&A Amzen Transportation Industries Private Limited Acquisition · Pending regulatory · Consideration ₹[object Object] (undisclosed)

    To become a fully integrated wagon ecosystem, acquire wagon manufacturing, bridge girders, and fabricated items capabilities, and expand into sea freight containers.

    Carrying Amzen KMPs and legal costs impacted FY26 PAT by INR 2-2.5 crores and INR 10 crores respectively. Expected to contribute to top line from FY28.

    Amzen is a project that will cost you INR400-odd crores, give and take INR10 crores here and there. Because you want to build it to 7,200 wagons an annum. That is the build-up ratio. We'll not wait for it. We've never waited. We won't wait for it, because on a bad cycle, if you build, you'll make hay while the sun shines, when it's a good cycle. Against that you have INR170 crores to INR200 odd crores you'll build up. You'll take a loan of INR200-odd crores. Do you need to dilute if that is something that is there in everybody's mind? See, dilution will only come if we have something more than this. This is funded for. If we take a INR200 crore debt against an asset of INR550 crores, that does not hold much issues.
  • Liquidity Cash ₹170 Cr INR 170-200 crores cash carried against INR 80 crores working capital debt.
    So INR170 crores of cash you're carrying against a debt of INR80 crores working capital which is backed by all current assets to the tune on the current asset today stands at roughly INR200 crores.

Guidance & targets

Capacity Utilization

  • Overall Capacity Utilization Capacity Utilization · next year · Medium confidence 90%
    However, we're doing our best to cross 90% by next year of this install capacity and further on, increase the install capacity to next to next year as well.

    — Aditya Vikram Birla

Volume

  • CSEL (Springs + Fabrication) Volume Volume · FY27 · Medium confidence 10,000-12,000 metric tonnes
    In FY27 this will go up to somewhere around 10,000 to 12,000 metric tonnes.

    — Aditya Vikram Birla

  • CSEL (Springs + Fabrication) Volume Volume · FY28 · Medium confidence 22,000-23,000 metric tonnes
    By FY28 you will be achieving roughly 22,000 to 23,000 metric 23,000 metric tonnes in totality.

    — Aditya Vikram Birla

Margin

  • Springs Business PAT Margin Margin · after RDSO license · High confidence 10-18%
    your percentage margins on the first part will shoot up to approximately 10% and then going up to almost 15% to 18%. And I'm talking about PAT, I'm not talking about EBITDA.

    — Aditya Vikram Birla

Commercial Production

  • Amzen Commercial Production Start Commercial Production · by September/October 2026 · Medium confidence September/October 2026
    Hopefully Hanuji if everything completes by September, October, we can do everything, we can start our first commercial production by April, May -- by March, April, May, anywhere between that depends on God and efficiencies. But not more than a year from where we stand today.

    — Aditya Vikram Birla

Revenue Growth

  • FY27 Revenue Growth Revenue Growth · FY27 · Medium confidence 20-25% higher
    But if everything goes smoothly, we should achieve a number at least 20%, 25% higher than where we are today.

    — Aditya Vikram Birla

Capacity Outflow

  • FY27 Capacity Outflow Capacity Outflow · FY27 · High confidence 122,000-130,000 metric tonnes
    Next year in FY27 you will have roughly 122,000 to 130,000 metric tonnes of capacity that you will outflow.

    — Aditya Vikram Birla

Total Installed Capacity

  • Total Installed Capacity Total Installed Capacity · future · Medium confidence 175,000-190,000 metric tonnes

    From 133,600 metric tonnes today

    The way forward, like I said is we will be able to do 175,000 metric tonnes in totality with NS Engineering, in totality in terms of volume with NS Engineering, with Cosmic CRF, with Cosmic Springs and Engineers forging division and Spring division. We have done we have already installed 133,600 metric tonnes in capacity and which will go up to 175,000 metric tonnes in capacity. However 170,000 175,000 to 190,000 metric tonnes in capacity depends on the efficiency, depends on any other land asset machinery that we come across over the years next to 1.5 to 2 years.

    — Aditya Vikram Birla

Main Board Listing

  • Main Board Listing Application Main Board Listing · first week of July 2026 · High confidence Applied
    We will be applying on the first week of July hopefully.

    — Aditya Vikram Birla

Debt

  • Peak Term Loan Debt Debt · post Amzen and forging · Medium confidence INR 200-250 crores
    So this year you will have only term loans for, for Amzen. Right. And that's about it. And a small term loan will come in for forging. Together they might sound at around INR200 crores, INR250-odd cross, the term debt with a moratorium for almost nine months to 10 months or maybe a year, and a payout period for 10 years so that you do not have to stretch yourselves for making payments of the -- what's it called, your interest, because that would be more in a V shape rather than a straight line method.

    — Aditya Vikram Birla

  • Term Loan Debt (stabilized) Debt · by 2028 · Medium confidence INR 300 crores
    That point in time, your term loan should not be more than INR300 crores, because you must have repaid some in the next 1.5 2 years.

    — Aditya Vikram Birla

Working Capital

  • Working Capital Debt (stabilized) Working Capital · by 2028 · Medium confidence INR 300 crores
    So INR300 crores of term loan and roughly INR300 crores of working capital.

    — Aditya Vikram Birla

Total Capacity

  • Total Capacity Total Capacity · FY29 · High confidence 350,000 metric tonnes
    FY 2029, you should look at total of 350,000 metric tonnes in totality.

    — Aditya Vikram Birla

Revenue

  • Total Revenue Revenue · FY29 · High confidence INR 3,500 crores
    And if I'm right by my judgment, at that point in time, INR100,000 at an average pricing will give you something like INR3,500 crores, which is something that we should all look at.

    — Aditya Vikram Birla

Profitability

  • Return on Capital (ROC) Profitability · FY28-29 · Medium confidence 30-35%
    The totality you will be standing at 30% to 35% ROC.

    — Aditya Vikram Birla

What to watch in Q1 FY27

RDSO License for Springs Business

next month (June 2026)
Current Pending, 75% testing completed
Target License approval

Why it matters

Approval of the RDSO license is crucial for the springs business to achieve significantly higher PAT margins (10-18%) by selling directly to railways/wagon builders.

We are awaiting the RDSO license. We've already finished 75% of our testing periods that have been done. Hopefully fingers crossed, if everything goes smoothly, by God's grace, we will be able to achieve the RDSO approvals by next month.

Risks & concerns

  • Pending RDSO License for Springs Business

    medium

    The absence of the RDSO license for the springs business currently limits sales to traders, resulting in significantly lower PAT margins (INR 1.5 crores profit on INR 67 crores revenue). Management expects approval next month.

    Management acknowledged

  • Amzen Integration Timeline and Procedural Delays

    medium

    While management aims for Amzen's commercial production within 9-12 months, procedural delays inherent in India could extend this timeline, impacting the contribution to FY27 financials.

    Management acknowledged

  • Global Economic Headwinds and Railway Order Slump

    medium

    Global scenarios, balance of payment issues, and geopolitical events (e.g., Middle Eastern war) could lead to a slump in railway orders this year, potentially affecting the target of 40,000 wagons per year.

    Management acknowledged

  • Raw Material Price Volatility

    medium

    Fluctuations in raw material prices are a constant challenge. Management mitigates this through carrying strategic stock, long-term contracts with price variation clauses, and plans for a liquid metal initiative for larger volumes.

    Management acknowledged

Q&A highlights

5 direct
Springs Business Profitability and RDSO License Direct
The reason is very simple. Though that industry gives you a turnout of more than 15% odd. But till such time you don't have the RDSO license, you're selling to only traders and to players in the market who don't need RDSO stampings and who need these basic springs for other purposes. You're actually not officially selling to the railways or the wagon builders at all. ... your percentage margins on the first part will shoot up to approximately 10% and then going up to almost 15% to 18%. And I'm talking about PAT, I'm not talking about EBITDA.

Explains the current low profitability of the springs business and outlines the significant margin improvement expected upon receiving the RDSO license, which is critical for future earnings.

Asked by Vimal Gohil

Amzen Acquisition Legal Process and Certainty Direct
The entire order of the NCLAT, along with its investigational requirements from the IBBI was set aside and there was nothing that was kept back from the NCLAT. So that was a clean order that was given to us. I was stated as eligible and to be taking part in the CRP process of any of the companies along with most importantly Amzen Transportation. And then further on this further leads to me now being the only H1 and we are awaiting the CoC that should happen any point in time.

Provides crucial clarity and assurance regarding the Amzen acquisition, confirming Cosmic CRF's H1 bidder status and the legal resolution that removes prior uncertainties, making it a definite strategic move.

Asked by Arun Ramabhadran

Amzen Contribution to FY27 Financials Partial
No. So basically I'll tell you what Narayanji. The process does not take that much time. Your factory is pretty much installed. The repair maintenance will take a mere 60 to 90 days at its best ability. ... And the bad part is that there are so many machines and there's a humongous asset that we need to rebuild. So I'm keeping two months to three months in hand. So we should complete this by December, January if everything is handed over to me by June. However, if the delay in handing over, any sort of procedural delay it's India. Procedural delay cannot be controlled. ... So looks like the top line and the bottom line will not come from Amzen this year, right? FY27. So without that Amzen

Sets realistic expectations for investors by indicating that Amzen's financial contribution will not materialize in FY27 due to the necessary integration, repair, and regulatory processes, despite the acquisition being finalized.

Asked by Sheo Narayan

Peak Debt Levels Post-Amzen Acquisition Direct
Without liquid metal in consideration, as of now, your entire book debt will come to so it'll be part. So this year you will have only term loans for, for Amzen. Right. And that's about it. And a small term loan will come in for forging. Together they might sound at around INR200 crores, INR250-odd cross... That point in time, your term loan should not be more than INR300 crores, because you must have repaid some in the next 1.5 2 years. So INR300 crores of term loan and roughly INR300 crores of working capital.

Addresses a key capital allocation concern by providing a clear projection of peak debt levels post-expansion, reassuring investors about the company's ability to manage its financial leverage while pursuing growth.

Asked by Akshat

Potential Orders from West Bengal Government Direct
We will be participating in a lot of them. That is one of the greater, greener, cyclic. ... So you will have the items, I'm telling you that you go in, you'll have the poles and the high masts that will go in. You'll have the angles and structures that will be going in for fabricated steels, for all the development that they'll be doing, starting from Metro to bridge building to crash barrier to NHI which is a central body.

Highlights a new and significant growth avenue for the company, indicating potential for substantial new orders from the West Bengal government's infrastructure development initiatives.

Asked by Arun Ramabhadran

Container Manufacturing Plans Direct
So the point is the container wagon -- the container manufacturing is of two types, the sea freight as well as the land containers. ... We want to go for the sea freight containers of 20 feet and 40 feet containers. The reason is very simple, sir. Because of the equipment that I have available, the machinery that I have in Amzen and the space that I have, the know how that I have, that will allow me to make those wagons there.

Reveals a new product diversification strategy into sea freight container manufacturing, leveraging the acquired capabilities and space at Amzen, which could open up new revenue streams.

Asked by Kalyan K

Revisiting 100% Growth Guidance and Market Control Partial
Sir, the point is, when we talk about 100% growth, the amount of the -- basically the raw material pricing is always fluctuating on its own. ... I have understood that it is a volume that I can control. In my factory, under my four walls is all that I can control the volume, I can control the cost and I can control the income and the outflow. But I cannot control the market at large.

Provides a more nuanced and realistic perspective on growth drivers, clarifying that while internal operational efficiency is controllable, external market factors and raw material prices introduce variability, leading to a revised FY27 growth expectation of 20-25%.

Asked by Sai Kumar

3 min read 7 chapters

Detailed narrative

Strong Financial Performance and Order Book Growth

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.

Strategic Amzen Acquisition Progress and Future Outlook

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.

Capacity Expansion and Utilization

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.

Springs and Forging Business Development

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.

Debt Management and Future Capital Structure

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.

Long-Term Vision and Growth Drivers

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.

Main Board Listing

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.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Capital Goods earnings calls