Batliboi Limited — Q1 FY26 earnings call

Call held 11 Aug 2025

Management summary

Batliboi Limited reported a challenging Q1 FY26 with revenue of ₹72 crores and a PPT loss of ₹2.72 crores, primarily due to post-merger compliances and subdued demand in certain sectors. Despite this, the company secured approximately ₹270 crores in order inflow, bringing the order book to ₹465 crores. Management remains optimistic, targeting 10-12% top-line growth and improved profitability for FY26, driven by completed capex, strategic merger benefits, and an anticipated full-year order inflow exceeding ₹1,000 crores.

Highlights

  • Order inflow of approximately ₹270 crores in Q1 FY26, with an outstanding order book of approximately ₹465 crores as of June 25.

  • Completed ₹25 crores capex for foundry and machine shop upgradation, expected to drive better growth and margins from Q2 onwards.

  • Targeting 10-12% top-line growth and improved bottom line for FY26, with an anticipated order inflow of over ₹1,000 crores for the full fiscal year.

  • Merger of Batliboi Environmental Engineering Limited expected to drive growth and leverage land bank for non-fund-based limits.

  • Plans to install a solar system for manufacturing facilities, aiming for ₹4.5 crores annual power cost savings.

Concerns

  • Q1 FY26 revenue from operations at approximately ₹72 crores, with an EBITDA of ₹0.24 crores and a PPT loss of ₹2.72 crores.

  • Q1 results impacted by post-merger compliances and subdued demand in sectors like textiles.

  • Quickmill (Canadian subsidiary) experienced a challenging quarter due to US tariffs, impacting order booking and execution.

  • Environmental Engineering group had a subdued quarter primarily due to deferred deliveries caused by merger-related formalities.

Key financials

  1. Revenue from Operations ₹72 Cr
  2. EBITDA ₹0.24 Cr
  3. PPT Loss ₹2.72 Cr

What they filed

Q1 FY27: revenue up 43.1%, net profit up 171.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue69 65 94 55 83 +19%72 +10%87 −7%79 +43%
EBITDA3 -1 4 -2 3 +12%-1 −62%4 −4%0 +107%
Net profit4 -2 4 -3 4 −1%-8 −309%2 −41%2 +171%
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.

Segment breakdown

Share of Order Inflow (Q1 FY26)
₹221 Cr Total
  • Textile Machinery Division ₹167 Cr 75.6%
  • Environmental Engineering Group ₹34 Cr 15.4%
  • Machine Tool Division ₹20 Cr 9.0%

Order book

high confidence

Total value

₹465 Cr

as of 2025-06-25 quantified

Inflow this quarter

₹270 Cr

Execution

bulk of order backlog to be executed before the end of the year (FY26)

Composition

Mix 4 products
  • Rolling Isostatic Press ₹14 Cr 18.4%
  • Circular Knitting Machines ₹45 Cr 59.2%
  • Textile Air Engine ₹4 Cr 5.3%
  • Environmental Engineering Group (various systems) ₹13 Cr 17.1%

Share of order book by product, derived from disclosed amounts

Pipeline

deal pipeline tcv

Anticipated order inflow for Q2 FY26 and full FY26

Management expects strong order inflow for the full fiscal year, with a significant portion of the current backlog to be executed within FY26.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹25 Cr
    • Upgradation and expansion of foundry and machine shop ₹25 Cr
    the capital expenditure of INR25 crores towards the upgradation and expansion of our foundry and the machine shop has been now fully completed with all equipment successfully commissioned in the end of Q1.
  • Debt Debt disclosed
    at the moment, currently we are at the moment more or less at zero debt, zero interest bearing level.
  • M&A Batliboi Environmental Engineering Limited Merger · Closed · Consideration ₹[object Object] (undisclosed)

    Leverage high-growth Environmental Engineering business, utilize Batliboi's land bank for non-fund-based limits, and provide security for banks.

    Expected to contribute to bottom line and top line, driving overall growth and margin improvement.

    I am pleased to share that this year Batliboi Environmental Engineering Limited merged into Batliboi Limited following the NCLT approval at the end of March 2025 and now it forms the Environmental Engineering group.
  • Liquidity Cash ₹15 Cr Cash on hand is invested in safe securities, yielding ~8.5% return, and is intended for future acquisition opportunities rather than operations.
    we have currently about INR15 crores of cash, which is bearing us roughly about 8.5% return, which is in safe securities, and which we do not intend to utilize for operations, but it will be the money bank that we will accumulate over a period of time, so that we can do some whenever an acquisition opportunity comes up.

Guidance & targets

Revenue

  • Top-line growth Revenue · FY26 · High confidence 10-12%
    targeting a top-line growth of 10% to 12% and a better bottom line compared to FY '25.

    — Sanjiv Joshi

  • Revenue growth (consolidated) Revenue · coming years · High confidence 10% to 12%
    We are targeting 10% to 12% growth in revenue and improved bottom line on a consolidated basis over the coming years.

    — Nirmal Bhogilal

Profitability

  • Bottom line Profitability · FY26 · High confidence improved
    targeting a top-line growth of 10% to 12% and a better bottom line compared to FY '25.

    — Sanjiv Joshi

  • Bottom line (consolidated) Profitability · coming years · High confidence improved
    We are targeting 10% to 12% growth in revenue and improved bottom line on a consolidated basis over the coming years.

    — Nirmal Bhogilal

Order Inflow

  • Total order inflow Order Inflow · entire fiscal year · High confidence ₹1,000 crores plus
    are hopeful of achieving an order inflow of almost INR1,000 crores plus for the entire fiscal year.

    — Sanjiv Joshi

Margins

  • Overall margins Margins · compared to last year · Medium confidence substantially improve
    I think our margins will vary from division to division, but I think they will substantially improve compared to last year and what we have shown in the first quarter

    — Nirmal Bhogilal

Cost Savings

  • Annual power cost savings from solar Cost Savings · annual basis · High confidence ₹4.5 crores
    So, that will also shave off another INR4.5 crores of cost.

    — Nirmal Bhogilal

Machine Tool Division

  • Growth rate Machine Tool Division · Medium confidence 12% to 14%
    if the GDP of the country goes by 6% to 7%, the machine-to-industry CGR would be in the range of 12% to 14%. We are going in line with that.

    — Sanjiv Joshi

What to watch in Q2 FY26

Q2 FY26 Earnings Call Updates

end of second quarter
Current Q1 FY26 call completed
Target Further updates on company developments

Why it matters

Management committed to providing another earnings call for Q2 to give further updates.

And we hope that we would do another earnings call at the end of second quarter to give you a further update on the developments in the company.

Risks & concerns

  • Impact of post-merger compliances on Q1 results

    medium

    Q1 results were impacted due to post-merger compliances of Batliboi Environmental Engineering Limited, causing delays in order execution.

    Management acknowledged

  • Subdued demand in textile sector

    medium

    Subdued demand in sectors such as textiles impacted Q1 results, though strong outlook for coming quarters.

    Management acknowledged

  • US tariffs impacting Quickmill (Canadian subsidiary)

    medium

    Quickmill experienced a challenging quarter due to uncertainty surrounding US tariffs, affecting order booking and execution.

    Management acknowledged

  • Deferred deliveries in Environmental Engineering group

    medium

    Subdued Q1 for Environmental Engineering due to deferred deliveries caused by merger-related formalities, expected to normalize in Q2.

    Management acknowledged

Q&A highlights

8 direct
Land bank monetization and development plan in Surat Direct
Basically, we have a total land of 45 acres, of which 4 acres has been earmarked for land for sale. The money for that will be used to repay the non-interest bearing loan of the promoters. We expect that this land of roughly 4 acres would fetch us roughly about INR40 crores.

Clarifies plans for asset monetization to repay promoter loans and future development strategy for additional land.

Asked by Majid Ahamed

Margin improvement and synergies post-merger for FY26 Direct
See, right now the margin is subdued, but the capex that is now happening in our Machine Tool division will give us product efficiency and a production base to grow. Our Engineering division with the merger is also going to add to the bottom line and the top line. So, we expect that all this and the future of textile looking good for the coming quarters. We look at a range of 10%-12% in the fiscal '26.

Explains the drivers for expected margin improvement, linking it to capex, merger synergies, and sector outlook.

Asked by Majid Ahamed

Debt situation and net zero debt status post-merger Direct
currently, we are really net zero if we look at our the cash we have on hand to get -- compared to the short-term and the long-term borrowing that we have. So, we expect that if we run our operations well, we should be really a zero-interest-bearing company. And currently, we are more or less at that level.

Provides clarity on the company's debt position, indicating a near net-zero debt status due to cash reserves.

Asked by Shreya

Strategy and capacity for the CNC machine division Direct
What we are doing is that rather than going to the next level of machines, which are highly complex machine in more than three axis, we would rather are working on a product development in the same space in terms of a terminal center and going forward on the linear machine centers, which will give us the volume that we are looking for in the same basket of machines that we are right now manufacturing, Amresh.

Outlines the product development strategy for the Machine Tool division, focusing on volume within existing product baskets rather than complex multi-axis machines.

Asked by Amresh Kumar

Impact of solar system on power cost and margin accretion Direct
I think more or less today our current power cost, net power cost after taking the benefits of our windmill will probably be in the region of about INR1 crores and a half a year, which will then go down to more or less a negligible amount by the end of the year. ... Yes, that's right. You know, we'll be having a saving over anywhere between INR1.2 crores to INR1.5 crores at the end of the year.

Quantifies the expected cost savings from renewable energy, indicating a significant positive impact on profitability.

Asked by Majid Ahamed

Target industries for increased Machine Tools capacity Direct
Basically, as I told you earlier, in the earlier question and answer, that the headroom to grow for us is huge. So, it is not only a specific target segment of industry. It can be agriculture. It can be automotive. It can be defense. It can be general light engineering. It can be a huge opportunity for us in die-and-mold kind of a business.

Highlights the broad applicability of their machine tools across various industries, reducing dependence on any single sector.

Asked by Naitik Mohata

Focus and solutions provided by the Environmental Engineering group through Bioconserve Renewables Direct
See, at the moment, this is focused on the textile industry, where there is a great demand for every processing, every process house in the textile factory to have a zero liquid discharge. That is the requirement of the day. So, we are just now focusing only on the textile industry. Once we are reasonably – we are reasonably stabilized as a company in this area, then we will look at the other non-textile areas, whether it is pharma, food, chemicals, etcetera.

Clarifies the initial market focus for the Environmental Engineering group on the textile industry's zero liquid discharge requirements, with future expansion plans.

Asked by Siddharth Bhattacharya

Strategy for Hydrogen Gas solutions for industrial use Direct
So, basically, here we would like to say that we are looking at the supply of electrolyzer and the balance of plant kind of a thing. So, and the investment would be done by the customer. So, we are talking about two, three such not a very large hydrogen project, but there are also requirements of very small plants also which we are targeting.

Details the company's approach to the hydrogen segment, focusing on supplying electrolyzers and balance of plant for smaller projects, with customer-led investment.

Asked by Siddharth Bhattacharya

2 min read 6 chapters

Detailed narrative

Q1 FY26 Performance and Outlook

Batliboi Limited reported a challenging Q1 FY26 with revenue from operations at approximately ₹72 crores, an EBITDA of ₹0.24 crores, and a PPT loss of ₹2.72 crores. These results were impacted by post-merger compliances and subdued demand in sectors like textiles. Despite the slow start, management expressed confidence in improving performance, targeting a 10-12% top-line growth and improved bottom line for the full fiscal year, with a strong outlook for the coming quarters.

Order Book and Inflow Dynamics

The company achieved an order inflow of approximately ₹270 crores in Q1 FY26, bringing the outstanding order book to approximately ₹465 crores as of June 25. Management is optimistic about securing over ₹1,000 crores in order inflow for the entire fiscal year. The bulk of the current order backlog is expected to be executed before the end of FY26, ensuring revenue visibility for the coming quarters.

Strategic Merger and Rationale

The merger of Batliboi Environmental Engineering Limited into Batliboi Limited, approved in March 2025, was a key strategic move. The rationale includes leveraging the high-growth potential of the Environmental Engineering business, especially with India's infrastructure spending. The merger also allows the Environmental Engineering group to utilize Batliboi's substantial land bank and fixed assets to secure non-fund-based limits like bank guarantees, which were previously challenging to obtain, creating a win-win situation for both entities.

Capital Expenditure and Margin Improvement Initiatives

Batliboi completed a capital expenditure of ₹25 crores in Q1 FY26 for the upgradation and expansion of its foundry and machine shop. This investment is expected to enhance product efficiency and production capacity, contributing to better growth and margins from Q2 onwards. Additionally, the company plans to install a solar system at its manufacturing facilities, projected to save approximately ₹4.5 crores annually in power costs, further boosting profitability.

Segmental Performance and Future Focus

The Machine Tool division recorded ₹20 crores in order inflow and ₹17 crores in revenue in Q1, with anticipated Q2 inflow of ₹20-25 crores. The Textile Machinery division saw ₹167 crores in Q1 inflow and ₹60 crores in execution, expecting ₹200 crores in Q2 inflow. The Environmental Engineering group reported ₹34 crores in Q1 inflow and ₹19 crores in revenue, with anticipated Q2 inflow of ₹50 crores and revenue of ₹40 crores. The Environmental Engineering group is currently focused on zero liquid discharge solutions for the textile industry, with plans to expand to other non-textile sectors later.

Land Bank Monetization and Debt Profile

The company holds a total land bank of 45 acres, with 4 acres earmarked for sale, expected to fetch approximately ₹40 crores. These proceeds will be used to repay a non-interest-bearing promoter loan of roughly ₹40 crores. Batliboi currently operates at a near net-zero debt level, with cash on hand of approximately ₹15 crores invested in safe securities, intended for future acquisition opportunities rather than operational use. Annual interest payments are in the range of ₹5-7 crores.

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