Batliboi Limited — Q2 FY26 earnings call

As far as the inorganic growth is concerned, well, as we had mentioned earlier when we did the fundraise that we'd be looking at also inorganic growth. So we are constantly on the search for suitable acquisitions, which could add value to our current business lines, which is primarily in the field of capital goods.

Clarifies the company's strategy for growth beyond organic means, focusing on value-additive acquisitions in capital goods.

Asked by Shweta Tiwari

Well, when we did the merger, we had mentioned the kind of synergies that we expect that we would leverage the wide network of Batliboi and Batliboi's customers for the benefit of the environmental engineering group. I think that has already been achieved. And obviously, it's an ongoing process. The second was to integrate the centrifugal fan manufacturing into one unit, which also has been done, and you will see we already started seeing the results of that in Q2.

Provides an update on the successful realization of post-merger synergies, including leveraging the network and manufacturing integration, which contributed to Q2 results.

Asked by Majid Ahamed

I don't think the gross margin will improve anything substantially more than this. And as I mentioned that our gross margins also depend on product mix. So looking at the way the business is, I would say that we would have a pretty stable gross margin regime.

Sets realistic expectations for gross margin trajectory, indicating stability rather than significant further expansion, influenced by product mix.

Asked by Majid Ahamed

In spite of all the hurdles that we are facing thanks to the tariffs imposed by the USA, as well as the downturn in the EU market, thanks to the conflict between Russia and Ukraine, as well as the political uncertainty in Bangladesh. But don't forget that in India there is a great need to go up the value chain in the textile industry. So we are in those sectors as well, whether it comes to knitting, whether it comes to processing, where there is a great need to go up this value chain.

Acknowledges external challenges but highlights domestic opportunities in value-added textile segments and potential positive impact from future trade agreements.

Asked by Majid Ahamed

See, basically, our Air Engineering division, which was basically more of a domestic, last two years, we have taken the initiative to focus more on exports. So, we are basically looking at Bangladesh, unfortunately, because of the political situation, a lot of orders are on board. But I'm sure in near future, if that gets released, it's going to be one of our focus area. Right now, we are also focusing in, which I think we have put in the presentation somewhere that we are looking at Vietnam, we are looking at Indonesia. We have got a breakthrough order in Indonesia, we are likely to get a breakthrough order in Vietnam in this quarter, the next quarter. We are also pursuing some orders in Uzbekistan. And we have lined up with LMW for all the requirements for the region. And we are pursuing some orders in Egypt.

Details the specific international markets (Bangladesh, Vietnam, Indonesia, Uzbekistan, Egypt, Gulf region, Saudi) that will contribute to the ambitious order book target, indicating a strong export focus.

Asked by Naitik

No, right now, no, because we are also on the learning curve. Once we get that reputed experience, going down the line, maybe we can think of that. Right now, I don't believe there's no plans to manufacture electrolyzers in our country.

Clarifies that while the company is exploring green hydrogen, it currently has no plans for in-house electrolyzer manufacturing, focusing on gaining experience first.

Asked by Manoj Jethva

See, it all depends on division by division. Different businesses have different time cycles. So, it can range from lead time to conversion can vary from one month to one year, depending on the kind of business we are in. So, it would be difficult to forecast exactly when this pending order backlog of INR600 odd crores would get executed, but confidently within a year, it should get executed.

Provides a clear timeline for the conversion of the current order backlog into revenue, assuring investors that the majority will be executed within a year.

Asked by Shrey Patel

Well, we are still looking for suitable buyers. At the moment, we are exploring, we are discussing, but nothing concrete has happened so far. ... No progress at all, because we are looking at trying to see whether this can become an annual annuity for the company. And I think one of the opportunities, suitable opportunities are the IT, BPO type sectors. Unfortunately, Surat still has not picked up as a city for back-office or IT work. In Gujarat, so far it is Baroda. So, hopefully, with the international airport now at Surat, with the communication the way it is between major cities in Surat, I think in the near future, we should see this activity also coming to Surat.

Indicates slow progress on monetizing land assets, highlighting challenges in finding suitable buyers/tenants for IT/BPO sectors in Surat, which could impact potential non-core revenue streams.

Asked by Arth Jain