Detailed Narrative
FY26 Financial Performance Overview
The Anup Engineering Limited reported a consolidated revenue of INR822.3 crores for FY26, alongside an EBITDA of INR174.2 crores. This translates to a normalized EBITDA margin of 21.2% for the year, achieved despite significant pressure from elevated input costs and execution challenges. The company emphasized a sharp focus on cost management and timely course corrections as key factors in maintaining these financials.
Order Book and Pipeline Dynamics
As of May 28, 2026, the company holds a pending order book of approximately INR770 crores for FY27. Order booking showed improvement over the last two quarters, with new orders worth INR190-200 crores secured in the past two months. The inquiry pipeline remains robust at INR1,200 crores, from which the company aims for a 20% conversion rate, prioritizing orders with healthy margins and risk protection.
Operational Challenges and Strategic Responses
FY26 was marked by macro-economic challenges including geopolitics, raw material price volatility (especially steel), and shipping disruptions due to the closure of the main sea route. These factors impacted execution and increased logistics costs. To mitigate risks, the company adopted a strategy of judicious order booking, consciously letting go of opportunities that did not offer healthy margins, and timing raw material procurement to optimize profitability on fixed-price contracts.
Capacity Expansion and Utilization
The Phase 2 expansion at the Kheda plant has been completed, increasing its capacity to 8,000 metric tons per year. This expanded capacity is expected to generate an annual revenue of INR400-450 crores. Combined with Ahmedabad and Mabel facilities, the company's total installed capacity is now capable of delivering revenue up to INR1,200 crores per year, positioning it for future growth.
Diversification into New Growth Verticals
Anup Engineering is strategically expanding into critical equipment and new sectors. They successfully manufactured and delivered their first 200-metric-ton single-piece equipment to a Middle East client. First orders have been secured in nuclear business, thermal power, manufacturing skids, and air heaters. The technical services vertical, with 40% expected margins, is targeted to grow to INR200 crores in the next three years, with a focus on repair works in the Middle East.
Cash Flow and Working Capital Management
The company's cash position was negative INR73 crores at the end of March 2026, including long-term debt of INR52 crores. This was primarily due to higher debtors (INR260 crores due after March) and lower customer advances. However, with substantial collections in April and May, the cash position improved to negative INR11 crores and is expected to turn cash positive by the end of May 2026, including long-term debt.