Batliboi Limited — Q3 FY26 earnings call

Call held 12 Feb 2026

Management summary

Batliboi Limited reported a strong Q3 FY26 with revenue growing 29% YoY to INR 124 crores and EBITDA surging 167% to INR 8 crores, despite challenges in the textile industry. The company maintains a healthy order backlog of INR 586 crores and is optimistic about future growth driven by favorable trade agreements and strategic initiatives like the new Zero Liquid Discharge subsidiary. Management expects improved margins and top-line performance in the coming fiscal year.

Highlights

  • Revenue from operations increased by 29% YoY to INR 124 crores in Q3 FY26, demonstrating strong core business growth.

  • EBITDA saw a significant 167% YoY increase to INR 8 crores, indicating improved operational efficiency.

  • Profit Before Tax (before exceptional charges) registered a sharp turnaround, rising nearly fivefold to INR 5 crores.

  • Healthy order backlog of approximately INR 586 crores as of December 2025 provides revenue visibility.

  • Optimism for future performance driven by Union Budget, Indo-EU FTA, and Indo-US trade agreements.

Concerns

  • The company faced a challenging quarter due to issues in the textile industry, primarily tariff issues with the US and problems in the EU.

  • Impact from the new Labor Code, though on a non-cash basis, affected reported profit after tax.

  • Challenges in obtaining Letters of Credit (LCs) from Bangladesh due to ongoing elections.

Key financials

  1. Revenue from Operations ₹124 Cr +29%YoY
  2. EBITDA ₹8 Cr +167%YoY
  3. PBT (before exceptional) ₹5 Cr +400%YoY
  4. EBITDA Margin 6.5%

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

Segment9M FY26 RevenueRevenue
Quickmill (Canada Subsidiary)₹91 Cr—
Air Engineering Group₹40 Cr₹10 Cr
Environmental Engineering Group—₹29 Cr

Order book

high confidence

Total value

₹586 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹167 Cr

Composition

Mix 2 segments
  • Machine Tool Division 24.2%
  • Environmental Engineering Group 16.7%

Share of order book by segment· partial disclosure (40.9% of the book)

The company only recognizes confirmed orders with advances or Letters of Credit (LCs), not Letters of Intent (LOIs).

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • Solar plant commissioning
    solar we are putting in. It will come into effect, I think the work is going on and we expect the plant to be commissioned by end of March.
  • Debt Gross ₹49.3 Cr
    The promoter's debt is about INR40 crores...And our cash credit is about.. 9.3...
  • Liquidity Cash ₹15 Cr INR 15 crores available from fundraise, earmarked for acquisitions.
    we still have about INR15 crores available from our fundraise, which we have earmarked for acquisitions.

Guidance & targets

Revenue

  • FY26 Revenue Growth Revenue · FY26 · Medium confidence 7-9%
    Why we have given a 7% to 9% guidance or 7% to 8%, 9% guidance for the current year is primarily because of the challenges of the textile industry.

    — Nirmal Bhogilal, Chairman

  • FY26 Revenue Target Revenue · FY26 · Medium confidence INR 400-500 crores
    our top line is around INR400 crores to INR500 crores

    — Nirmal Bhogilal, Chairman

Order Book

  • FY26 Order Book Target Order Book · FY26 · Medium confidence INR 1,000 crores
    our order book is we are planning to end about INR1,000 crores, right?

    — Nirmal Bhogilal, Chairman

Profitability

  • Margin Improvement Profitability · next financial year · Medium confidence Improvement
    I think we've already mentioned that we expect margins to improve next year.

    — Nirmal Bhogilal, Chairman

What to watch in Q4 FY26

Indo-US Trade Agreement Clarity

next quarter
Current Fine print awaited
Target Fine print released and analyzed

Why it matters

Clarity on the agreement's details is crucial for assessing its impact on the textile industry and company's performance.

I think once this effect of the Indo-US trade agreement, we see the fine print and we see some positive side on the EU side, we will revise our guidance.

Risks & concerns

  • Textile Industry Challenges

    medium

    Issues concerning the textile industry, including tariff issues with the US and problems in the EU, impacted Q3 FY26 results.

    Management acknowledged

  • Letters of Credit (LCs) from Bangladesh

    medium

    Problem in getting LCs from Bangladesh due to ongoing elections, affecting export order execution.

    Management acknowledged

  • Labor Code Impact

    low

    Impacted results on a non-cash basis due to provisioning for the new Labor Code.

    Management acknowledged

Q&A highlights

5 direct, 1 evasive
Land Bank Monetization and Development Direct
we have four acres of land which are for sale. We are still looking at the right customer to give us the right price. We are not in a tearing hurry; we are awaiting the right price to sell this land. We also have surplus land -- further surplus land for development, which long-term we will develop ourselves.

Clarifies the company's strategy for its land bank, distinguishing between immediate sale and long-term development for recurring income.

Asked by Deepesh Sancheti

Current Debt Levels Direct
we only have a cash credit level of debt, which is interest-bearing. As far as the non-interest bearing debt is concerned, which is primarily the promoter's debt, which will be repaid once we sell the four acres of land...The promoter's debt is about INR40 crores. And our cash credit is about.. 9.3...

Provides a clear breakdown of the company's debt, distinguishing between interest-bearing cash credit and interest-free promoter debt, and links repayment to asset monetization.

Asked by Deepesh Sancheti

FY27 Outlook and Impact of Trade Agreements Direct
as far as the Indo-US trade agreement is concerned, we still have to see the fine print...going forward, the textile industry is extremely bullish because at 18% duty, we would be amongst the lowest tariff for textiles into the U.S...And the same with the Indo-EU treaty. And then it also augurs very well for our Biogas Zero Liquid Discharge business.

Explains the potential positive impact of new trade agreements on the textile industry and the company's new ZLD business, providing a forward-looking perspective.

Asked by Deepesh Sancheti

Margin Profile Across Divisions Evasive
I think it's very difficult to give you, because it all depends on the mix, it all depends on how the, -- where the opportunities are. So it's difficult to give you a good idea in terms of what would be the average margin, because it keeps on shifting quarter-to-quarter. Okay. But suffice it to say that our margins are no different than industry margins.

Management avoids providing specific segment-wise margin details, indicating either complexity or reluctance to disclose, which can be a point of concern for investors seeking granular data.

Asked by Naitik Mohata

Guidance Revision and Order Book Growth Partial
As I mentioned, by FY27 we will be a new ballgame altogether. Why we have given a 7% to 9% guidance or 7% to 8%, 9% guidance for the current year is primarily because of the challenges of the textile industry...I think once this effect of the Indo-US trade agreement, we see the fine print and we see some positive side on the EU side, we will revise our guidance.

Analyst challenges the conservative growth guidance given the order book, prompting management to explain the textile sector's impact and signal a potential upward revision post clarity on trade agreements.

Asked by Naitik Mohata

Margin Improvement Strategy Partial
It all depends on double-digit margins will only happen if all our businesses operate at double-digit, but that's not so...There'll be marginal improvement in margin, but it will not be dramatic. What change will take place is more volume...It should improve substantially, because the more we manufacture in-house, our margins automatically improve.

Analyst pushes for a strategy to achieve double-digit margins, and management clarifies that while volume and in-house manufacturing will help, dramatic margin expansion is unlikely due to competitive pressures.

Asked by Prashantkumar Uttamlal

Zero Liquid Discharge (ZLD) Initiative Direct
it's a new subsidiary that we have now opened up for which is into this zero-liquid discharge. Primarily, as earlier said, this is a business that is complementing our textile engineering business because nowadays it is becoming more and more important to see that environmental-free industry is the need of the hour.

Provides details on the new ZLD subsidiary, highlighting its strategic importance in complementing the textile business and addressing environmental regulations.

Asked by Shweta Tiwari

Order Confirmation Process Direct
we on a conservative basis, we take orders only when they are confirmed, and especially where, and if you look at our business, most orders are with advances or with or LCs have been opened. So we only take that into account once we have either a confirmed LC or we have some kind of an advance. We don't recognize LOIs.

Clarifies the company's conservative approach to order book recognition, ensuring that reported orders are firm and backed by financial commitments.

Asked by Naitik Mohata

2 min read 5 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

Batliboi Limited reported a robust Q3 FY26, with revenue from operations growing 29% year-on-year to INR 124 crores, up from INR 96 crores in Q3 FY25. EBITDA saw a significant increase of 167% YoY, reaching INR 8 crores compared to INR 3 crores in the prior year. Profit Before Tax (before exceptional charges related to the Labor Code) surged fivefold to INR 5 crores, indicating a strong operational turnaround despite industry headwinds. The company's EBITDA margin for the quarter stood at 6.45%.

Order Book and Segmental Performance

As of December 2025, the company's order backlog stood at approximately INR 586 crores, providing healthy revenue visibility. Total order inflows for the nine months ended FY26 were INR 222 crores. In Q3 FY26, the Machine Tool division recorded an inflow of INR 63 crores, the Air Engineering group INR 22 crores, the Textile Machinery Group INR 48 crores, and the Environmental Engineering group INR 34 crores. The Canadian subsidiary, Quickmill, contributed INR 44 crores in turnover and INR 6 crores in profit for Q3 FY26.

Textile Industry Challenges and Future Outlook

The quarter was challenging for the textile industry due to tariff issues with the US and problems in the EU, which impacted Batliboi's results. However, management expressed optimism for FY27, anticipating a 'new ballgame altogether' with the resolution of these challenges and the positive impact of Indo-EU and Indo-US trade agreements. The company expects the textile industry to be bullish, especially with reduced tariffs into the US, and foresees improved performance from its Bioconserve Renewables Envirotech Private Limited subsidiary, which focuses on Zero Liquid Discharge solutions for the textile sector.

Capital Allocation and Debt Profile

Batliboi's debt primarily consists of INR 40 crores in promoter's debt (interest-free) and INR 9.3 crores in interest-bearing cash credit, totaling INR 49.3 crores. The company has completed its planned capital expenditure in the machine tool and foundry division at Surat. Additionally, a 1 MW solar plant is being commissioned and is expected to be operational by the end of March, contributing to energy cost reduction. The company also holds INR 15 crores from a fundraise, earmarked for future acquisitions.

Guidance and Margin Expectations

For FY26, Batliboi is guiding for a revenue growth of 7-9%, targeting a top-line of INR 400-500 crores and an order book of approximately INR 1,000 crores by year-end. Management indicated that current margins are in line with industry averages (5-6%) but expects them to improve next year, driven by increased volumes and greater in-house manufacturing. A formal revision of guidance is anticipated after the Q4 FY26 results, pending further clarity on the impact of the new trade agreements.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Capital Goods earnings calls