BATLIBOI

Batliboi Limited reported a strong financial performance in Q2 FY26. Revenue from operations surged to ₹121 crores, a significant increase from ₹70 crores in Q1 FY26. This robust top-line growth translated into a sharp turnaround in profitability, with EBITDA reaching ₹11 crores compared to ₹24 lakhs in the previous quarter. Consequently, the company posted a profit after tax of ₹6 crores in Q2 FY26, reversing a loss of ₹2 crores in Q1 FY26, demonstrating improved operational efficiency.

The company's order backlog as of September 2025 stood at ₹621.44 crores, a substantial increase from ₹490.29 crores at the end of Q1 FY26 and ₹412 crores in Q2 of the previous year. Management expressed high confidence in crossing ₹1,000 crores in order inflow or total order book for the full FY26. This strong order book is expected to be executed within a year, providing excellent revenue visibility and supporting the targeted 10-12% top-line growth for the entire fiscal year.

All business segments contributed to the positive performance. The Machine Tool Division recorded an order inflow of ₹108.61 crores and Q2 revenue of ₹22 crores. QuickMill, the Canadian subsidiary, achieved a turnover of ₹34 crores and a profit of ₹3.23 crores in Q2, recovering from a loss in Q1. The Air Engineering group reported ₹18 crores in revenue and ₹14.63 crores in order inflow. The Textile Machinery group secured significant order inflows of ₹180.85 crores, while the Environmental Engineering group contributed ₹33.2 crores in inflow and ₹33.3 crores in revenue.

Batliboi is actively pursuing geographic diversification, particularly for its Air Engineering and QuickMill divisions. The Air Engineering group is targeting exports to Bangladesh, Vietnam, Indonesia, Uzbekistan, and Egypt, with breakthrough orders anticipated from Vietnam. QuickMill is expanding its focus beyond the US to the Gulf region and Saudi Arabia, having secured orders from companies like Aramco. This export-oriented strategy is crucial for achieving the company's overall growth targets amidst global uncertainties.

Despite the overall positive performance, the textile sector continues to face headwinds from US tariffs, EU demand recession, and political instability in Bangladesh. However, management remains optimistic about the long-term potential, especially in value-added segments within India. The Zero Liquid Discharge (ZLD) subsidiary, Bioconserve Renewables Envirotech, had a profitable quarter and is initially focusing on the textile industry to build reputation before expanding into other sectors like pharma and food, where significant ZLD demand exists.

The company achieved a gross margin of 43% in Q2, an improvement from previous quarters. While management expects some fluctuations due to product mix, overall margins are projected to remain stable throughout the year. The anticipated volume growth and stable fixed costs are expected to lead to an improvement in EBITDA percentages, reflecting enhanced operational efficiency and the benefits of the recent merger.