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    The Anup Enginee

    ANUPGood
    Capital Goods·10 Nov 2025
    Management Summary

    The Anup Engineering Limited reported a solid H1 FY26 performance with consolidated revenue growing 20.2% and EBITDA up 20.3%. While PAT growth was modest at 3.1% due to tax benefits in the prior year, the company saw a significant improvement in Q2 order booking. Strategic investments in capacity expansion are complete, and the focus is now on maximizing revenue generation from these facilities, supported by a robust inquiry pipeline and new market entries.

    Highlights

    8
    • H1 FY26 consolidated revenue reached INR 407.5 crores, marking a 20.2% growth.

    • H1 FY26 EBITDA stood at INR 91.8 crores, growing by 20.3%.

    • H1 FY26 Profit After Tax (PAT) was INR 58.3 crores, a 3.1% increase.

    • Export revenue constituted 56% of the total, in line with plans.

    • New order booking for Q2 FY26 improved to INR 257 crores YTD, compared to INR 65 crores in Q1.

    • The current pending order book is INR 568 crores, fulfilling growth guidance for FY26 and booking for FY27.

    • Manufacturing capacity in Gujarat increased 2.5x in 3 years, from 8,000 MTPA to 20,000 MTPA.

    • Global inquiry pipeline stands at approximately INR 1,100 crores, expected to fuel next financial year's plan.

    What Changed2

    vs Q3 FY26

    Guidance items11 → 7 (-4)Q&A highlights8 → 3 (-5)
    Key financials

    Metrics

    6

    Periods

    2

    Headline

    5
    • H1 Consolidated Revenue
      ₹407.5 Cr
      YoY+20.2%
    • H1 EBITDA
      ₹91.8 Cr
      YoY+20.3%
    • H1 PAT
      ₹58.3 Cr
      YoY+3.1%
    • Current Order Book
      ₹568 Cr
    • ROCE
      22.8%

    Q2

    1
    • YTD Order Booking
      ₹257 Cr

    Segment breakdown

    Ahmedabad Plants
    ₹256 Cr Revenue Contribution63% Percentage of Revenue
    Kheda Plant
    ₹143 Cr Revenue Contribution35% Percentage of Revenue
    Mabel Engineers
    ₹8 Cr Revenue Contribution2% Percentage of Revenue
    Oil and Gas
    42% Sectoral Revenue
    Petrochemicals
    30% Sectoral Revenue
    Fertilizer and Chemicals
    18% Sectoral Revenue
    Others (Sectoral)
    10% Sectoral Revenue
    Heat Exchangers
    58% Product Mix
    Vessels Reactors Column
    38% Product Mix
    Silos and Other Products
    4% Product Mix
    List

    Guidance & targets

    7
    CategoryTargetPriority
    Profitability
    Average Other Expenses
    19-20%
    High
    Profitability
    Profit Growth vs. Sales Growth
    largely in line
    Medium
    Order Inflow
    Fresh Order Intake
    INR 200-250 crores
    High
    Order Book
    Opening Order Book
    INR 700-750 crores
    High
    Order Pipeline
    Average Inquiry Pipeline
    INR 1,100-1,200 crores
    Medium
    Revenue
    Long-term Organic Growth Rate
    20-25%
    High
    Other
    US Tariffs Normalization
    3 months
    Medium

    Risks & concerns

    4
    RiskSeverity

    High Working Capital Block

    Working capital block at 3x (120 days) due to lower customer advances and higher debtors from long-cycle export orders, with INR 150 crores worth of equipment in transit/waiting at port.Management acknowledged

    medium

    US Tariffs and Market Uncertainty

    Uncertainty regarding US tariffs impacting competitiveness; current projections discount US business, but management is hopeful for normalization within 3 months.Management acknowledged

    medium

    Order Booking Volatility

    Order booking in Q1 and previous quarter was lower, leading to a temporary dip in the order book, attributed to delayed tender finalizations.Management acknowledged

    low

    Areas of Evasion(1)

    • Specific details on royalty percentage

    Q&A highlights

    3

    “So, we are pretty confident of moving back to our order position. It's a small little delay from the perspective of tenders and large ticket items. And we are very hopeful, and I am confident of coming back on our order book position.”

    Addresses investor concern about a significant drop in a key leading indicator (order book) and provides a clear path to recovery based on pipeline and delayed tender finalizations.

    asked by Chetan Vora

    3 min read6 chapters

    Detailed Narrative

    01

    Solid H1 FY26 Performance and Order Book Dynamics

    The Anup Engineering Limited reported a consolidated revenue of INR 407.5 crores for H1 FY26, marking a 20.2% year-on-year growth. EBITDA also saw a robust increase of 20.3% to INR 91.8 crores. While Profit After Tax grew modestly by 3.1% to INR 58.3 crores, this was attributed to a higher tax benefit in the prior year due to ESOP exercises. New order booking for Q2 FY26 improved significantly to INR 257 crores YTD, compared to INR 65 crores in Q1, bringing the current pending order book to INR 568 crores. Management expressed confidence in returning to higher order book levels, citing an INR 1,100 crore inquiry pipeline and expected finalization of delayed tenders by December 2025.

    02

    Strategic Capacity Expansion and Utilization Focus

    The company has successfully completed its CAPEX investments, notably the Phase 2 expansion at the Kheda plant, with one manufacturing bay already commissioned and another expected by December. This expansion has increased the overall manufacturing capacity in Gujarat by 2.5 times over three years, from 8,000 metric tonnes per annum (MTPA) to 20,000 MTPA. All three manufacturing locations (Ahmedabad, Kheda, and Mabel Engineers) are now equipped to generate approximately INR 1,200 crores in revenue. The strategic focus for the coming period will be on maximizing the utilization of these enhanced facilities to drive future revenue growth.

    03

    Working Capital and Cost Structure Clarification

    The working capital block was noted as temporarily high at an average of 3x (120 days), primarily due to lower customer advances and higher debtors from long-cycle export orders, particularly those with FOB contracts awaiting ship availability. Approximately INR 150 crores worth of equipment is currently in transit or awaiting dispatch at ports, with management expecting this position to improve within 4-6 weeks. Increased 'other expenses' were largely attributed to royalty payments for advanced technology products like EMbaffle and Helix heat exchangers, which are built into project estimations and thus do not impact EBITDA. The average other expenses are expected to normalize to 19-20% of sales.

    04

    Market Diversification and International Presence

    Anup Engineering is actively pursuing market diversification, with export revenue accounting for 56% of H1 FY26 consolidated revenue. The company has established an official presence in Dubai with a dedicated sales and marketing head for the EME region and plans to open an office in Houston, U.S., next. Sectoral revenue distribution saw oil and gas at 42%, petrochemicals at 30%, and fertilizer and chemicals at 18%. The company also secured its first direct order in the power sector from a European customer and its first order for a non-process equipment product (critical power turbine component), marking significant diversification milestones.

    05

    US Market Strategy Amidst Tariff Uncertainty

    Regarding the US market, management clarified that direct exports to the US were minimal in the current year, with projections having discounted US business due to tariff uncertainties. However, the company is in discussions with US customers for new inquiries, with hopes that tariffs will normalize within approximately three months. While the US market offers significant potential, the company's strategic expansion prioritizes the Middle East (where it has established a strong presence in Abu Dhabi, Oman, Kuwait, and Dubai) before a full-fledged entry into the US, aiming to cater to local customers not served by large EPC contractors.

    06

    Long-Term Growth Outlook and Order Pipeline

    The company maintains its guidance for the current financial year and aims for a long-term organic growth rate of 20-25% beyond INR 1,000 crores in revenue, considering the industry's nature. The global inquiry pipeline remains robust at approximately INR 1,100 crores, with an expected average range of INR 1,100-1,200 crores for the next 6-7 months. Management targets a fresh order intake of INR 200-250 crores every quarter and aims to start FY27 with an opening order book of INR 700-750 crores, covering 75-80% of the year's revenue plan, while reserving 20-25% capacity for short-term, profitable orders.

    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.