The Anup Enginee

The Anup Engineering Limited reported a consolidated revenue of INR206.9 crores for Q3 FY26, marking a 20.3% quarter-on-quarter growth. For the nine-month period ending December (9M FY26), consolidated revenue reached INR614.4 crores, a 20.2% year-on-year increase, with EBITDA growing 17.5% YoY to INR135.9 crores. Despite this, the Profit After Tax (PAT) percentage level was 2.4% lower YoY, primarily attributed to a 0.6% increase in interest and financing costs due to higher working capital and a 0.9% tax change related to ESOPs in the prior year. The company's Return on Capital Employed (ROCE) stood at 21.2%.

The company's pending order book as of December 31, 2025, stood at INR550 crores. Management noted a robust firm inquiry pipeline of approximately INR1,100 crores, which is among the highest the company has ever recorded. This pipeline is composed of roughly 60% exports and 40% domestic inquiries. The management expects improved finalization rates for these inquiries in the coming months, particularly with the clarity provided by the India-U.S. trade deal, which is anticipated to reignite discussions for previously stalled U.S.-bound projects.

Anup Engineering has successfully entered new high-potential business verticals. This includes securing an order worth INR20-30 crores for the NPCIL Kaiga project, marking its entry into the nuclear business. The company also bagged an order of INR20-30 crores for NTPC's thermal power project, with expectations for three more large projects in the near future. Additionally, an order from GE for precision machine components provides 2-3 years of visibility. The Anup Technical Services business, a high-profitability vertical, has booked its 10th order in six months and is projected to achieve INR200-300 crores in turnover within the next 2-3 years with 40% margins.

Working capital management remains a key focus, with the average working capital at INR367 crores, translating to 2.2 turns, which is higher than the expected 3 turns. This was mainly due to lower customer advances and higher debtors from long-cycle orders. The company aims to improve working capital turns to 3 or higher by year-end. Other expenses increased to 24.5% of revenue (from 18% YoY), driven by higher royalty (1.3%), labor and subcontracting (1.5%), contractual expenses (2.2%), and freight costs (0.5%). Management stated these costs are factored into their plans and estimations.

The Phase 2 expansion at the Kheda plant has been completed, adding 20,000 square meters of fabrication area, including 5,000 square meters of open yard. This expansion increases Kheda's annual revenue generation capacity to INR450 crores based on the product mix. The company does not foresee any major capex for organic growth in the near future, as existing capacities are deemed sufficient for FY27 growth plans. The strategy involves utilizing the Odhav plant for smaller, short-cycle, high-volume items (e.g., ACACS, PSA adsorber vessels) and the Kheda plant for larger, long-cycle, high-tonnage equipment, leveraging logistical advantages.

The company observes good traction in both Middle East and domestic markets, with the India-U.S. trade deal expected to open new opportunities. Exports constituted 53.4% of revenue (INR328 crores) in 9M FY26, with oil and gas and petrochemicals dominating at 73% of revenue. Despite increased competition and margin pressure in a demand-down market, Anup Engineering aims to maintain EBITDA margins of 20%+ going forward^⏳. The company believes its indigenous material sourcing and ability to handle voluminous equipment provide a competitive edge against international players, particularly for PSU projects under 'Make in India' initiatives.