Batliboi Limited — Q4 FY26 earnings call

Call held 21 May 2026

Management summary

Batliboi Ltd. reported a 7% revenue growth to INR 440 crores for FY26, with a PAT of INR 7 crores impacted by one-time adjustments. The company demonstrated strong order inflows of INR 990 crores and significantly grew its order backlog to INR 593 crores. Debt-to-equity improved to 0.28x, and management expressed confidence in improved performance for FY27 across divisions, despite ongoing geopolitical and macro uncertainties.

Highlights

  • FY26 top-line revenue grew 7% to INR 440 crores.

  • Order backlog increased significantly to INR 593 crores as of March 2026, from INR 339 crores last year.

  • FY26 order inflow was robust at almost INR 990 crores.

  • Debt-to-equity ratio improved to a comfortable 0.28x.

  • Quickmill subsidiary reported solid performance in FY26 and expects much better performance in FY27.

Concerns

  • PAT of INR 7 crores was impacted by non-recurring items: provisioning for new labor codes and accounting impact from the merger of Batliboi Environmental Engineering Limited.

  • Global supply chain disruptions and broader macro uncertainty posed headwinds to EBITDA margins.

  • Textile sector faced strong sectoral headwinds, though revival is anticipated.

Key financials

2 periods

Headline

  • Revenue
    ₹440 Cr
    YoY +7%
  • PAT
    ₹7 Cr
  • Debt-to-Equity Ratio
    0.28×

FY26

  • Capex
    ₹27 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

SegmentQ4 FY26 Order InflowFY26 RevenueQ4 FY26 Revenue
Machine Tool Division₹60 Cr——
Quickmill—₹127 Cr—
Air Engineering Group₹17 Cr₹57 Cr₹17 Cr
Textile Machinery Group₹38 Cr₹50 Cr₹13 Cr
Environmental Engineering Group₹17 Cr—₹35 Cr

Order book

high confidence

Total value

₹593 Cr

as of 2026-03-31 quantified

74.9% YoY

Inflow this quarter

₹990 Cr

Composition

Mix 3 segments
  • Machine Tool Division 27.5%
  • Textile Machinery Group 40.1%
  • Environmental Engineering Group 5.4%

Share of order book by segment· partial disclosure (73% of the book)

Our order backlog has improved dramatically compared to last year, reflecting both direct and indirect business.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex ₹27 Cr
    • Machine tool division at Surat ₹27 Cr
    We have incurred a cumulative capex of INR27 crores in FY'26 and plan to close FY'27 with an additional capex of around INR10 crores.
  • Debt Debt disclosed
    on our deleveraging commitment, with our debt-to-equity ratio now comfortably at 0.28x, a level we intend to sustain going forward.

Guidance & targets

Performance

  • Bioconserve Renewables Performance Performance · FY27 · Medium confidence better than achieved this year
    Well, all I can say is that the performance will be better than what we have achieved this year, and as you're aware, it was the first year of operation and we have been very I think we've turned in pretty good profits. So we expect to improve that on this year, and we also see a very good demand for our products and services in the market.

    — Nirmal Bhogilal

  • Quickmill Performance Performance · FY27 · High confidence much better performance
    Yes, in fact, I'm happy to state here that Quickmill had a very phenomenal performance for the last fiscal, and looking at the orders on hand as on 1st of April, we will be delivering a much better performance for FY'27.

    — Sanjiv Joshi

  • Overall Company Performance Performance · FY27 · Medium confidence improved and stronger performance
    I am confident that Batliboi will deliver improved and stronger performance in the coming quarters, building on the momentum we have established. I am further confident of an improved result both in top-line and bottom-line in FY'27.

    — Sanjiv Joshi

Capex

  • FY27 Capex Capex · FY27 · High confidence around INR10 crores
    We have incurred a cumulative capex of INR27 crores in FY'26 and plan to close FY'27 with an additional capex of around INR10 crores.

    — Sanjiv Joshi

  • Quickmill Expansion Capex Capex · High confidence CAD 4 million (INR 25-30 crores)
    In Canada, it will be something in the region of about CAD 4 million, which is roughly about INR25 crores or INR30 crores currently, right?

    — Nirmal Bhogilal

Operating Margin

  • Operating Margin Operating Margin · Medium confidence improve
    There will be, because as we increase the volume, the operating margin automatically will improve because we are not focusing on any major overhead expansion.

    — Nirmal Bhogilal

What to watch in Q1 FY27

Bioconserve Renewables FY27 Performance

FY27
Current First year of operation, better than projected in FY26
Target Improved performance in FY27

Why it matters

To assess the growth and profitability trajectory of the new subsidiary in Zero Liquid Discharge solutions.

Well, all I can say is that the performance will be better than what we have achieved this year... So we expect to improve that on this year...

Risks & concerns

  • Geopolitical tensions and global conflicts (West Asia, Middle East)

    medium

    West Asia conflict weighs on market sentiment; escalating global conflicts and prolonged Middle East conflict could impact global and Indian economy.

    Management acknowledged

  • Evolving U.S. economic policies

    medium

    Could reshape global dynamics and impact business.

    Management acknowledged

  • Global supply chain disruptions and broader macro uncertainty

    medium

    Caused headwinds to EBITDA margins in FY26.

    Management acknowledged

  • Sectoral headwinds in the textile industry

    medium

    Partners abroad undergoing restructuring, though revival is anticipated.

    Management acknowledged

  • Bureaucratic delays for Quickmill expansion in Canada

    low

    Waiting for municipal and local government permissions for plant expansion, expected in next two quarters.

    Management acknowledged

Q&A highlights

5 direct
Bioconserve Renewables FY27 plans (sales, margins, profitability) Partial
Well, all I can say is that the performance will be better than what we have achieved this year, and as you're aware, it was the first year of operation and we have been very I think we've turned in pretty good profits. So we expect to improve that on this year, and we also see a very good demand for our products and services in the market.

Analyst sought specific numerical guidance for the new subsidiary, but management provided a qualitative positive outlook.

Asked by CA Shaishav Vora

Green hydrogen business status and MOUs Direct
Yes, Mr. Vora, we have a balance of payment MOU signed with L&T in a very nascent stage. We are pursuing two-three very active inquiries in terms of balance of payment, and also the electrolyzers, we have signed an MOU with a Chinese equipment manufacturer a couple of months back. So right now, we are chasing and pursuing some active two-three inquiries which we hope that in this next two-three quarters we should be able to do something about that.

Provided concrete updates on partnerships and pipeline for the nascent green hydrogen segment.

Asked by CA Shaishav Vora

Order backlog mismatch between reported numbers and calculation Direct
The mismatch is because our revenue reported does not take the indirect sales into our books. So only the commission on the indirect sales is shown as revenue, whereas the order booking and the order backlog reflects both the direct business and the indirect business. That's why there's a mismatch.

Clarified the accounting treatment for indirect sales and its impact on the reported order backlog, addressing an analyst's concern about data discrepancy.

Asked by Prashant Hazari

Quickmill expansion plans and associated capex Direct
And as far as Quickmill is concerned, Quickmill is running at the moment neck-to-neck, and we have planned an expansion over there. But as you're aware, maybe you're not aware, that in Canada the bureaucracy is perhaps as bad as or worse than ours. So we are waiting for permissions from their municipal corporations and the local city government for this expansion, which we hope we will get in the next two quarters. So with that, we will then go ahead with the expansion of the Quickmill plant. ... In Canada, it will be something in the region of about CAD 4 million, which is roughly about INR25 crores or INR30 crores currently, right?

Provided specific details on the planned expansion for the Quickmill subsidiary, including the capex amount and timeline for regulatory approvals.

Asked by Prashant Hazari

Plans to improve operating margin Direct
There will be, because as we increase the volume, the operating margin automatically will improve because we are not focusing on any major overhead expansion. ... That's a continuous process in any engineering company as to how to improve the efficiency at the plant level, whether it is through better equipment, better tooling, et cetera. And as far as our offices and marketing and other areas are concerned, I think with all these new tools of information IT and AI, et cetera., we will definitely improve our operating efficiency.

Addressed concerns about the relatively low operating margin, outlining strategies for improvement through volume, efficiency, and technology adoption.

Asked by Prashant Hazari

Comparison with peers like Jyoti and areas of lacking performance Direct
Which is a peer? I mean, sorry, which companies do you compare us to? Because there are not that many companies which are in the same areas that we are. Maybe there are companies which are in machine tools, there are companies which are in textile machinery, there are companies which are in environmental engineering, but we hardly come across companies which are in all these sectors. So what do you compare us to? ... Sorry - Jyoti -- but Jyoti is only a machine tool company. It's only a machine tool company. So we have to look at Jyoti vis-a-vis our machine tool business. And I agree with you that Jyoti is much larger than us in machine tools.

Management clarified that Batliboi's diversified business model makes direct peer comparison difficult, highlighting its unique position across multiple sectors.

Asked by Vedant Mehta

3 min read 6 chapters

Detailed narrative

FY26 Financial Performance Overview

Batliboi Limited reported a 7% growth in top-line revenue for FY26, reaching INR 440 crores. Despite headwinds from global supply chain disruptions and macro uncertainty, the company maintained stable EBITDA margins. The Profit After Tax (PAT) stood at approximately INR 7 crores, impacted by two non-recurring items: provisioning for new labor codes and accounting adjustments from the merger of Batliboi Environmental Engineering Limited. The company incurred a cumulative capex of INR 27 crores in FY26, primarily in the machine tool division.

Robust Order Inflow and Backlog Growth

The company demonstrated strong order inflows, recording almost INR 990 crores for the full FY26. As of March 2026, the total order backlog significantly increased to approximately INR 593 crores, up from INR 339 crores in the previous year. This backlog includes both direct and indirect sales, providing strong revenue visibility. The machine tool division contributed INR 60 crores in Q4 FY26 order inflow, with a backlog of INR 163 crores, while the textile machinery group had INR 38 crores in Q4 FY26 inflow and a backlog of INR 238 crores.

Strategic Outlook and Macro Environment

Management highlighted India's resilient growth trajectory, supported by domestic demand and manufacturing momentum, with the World Bank projecting 6.6% GDP growth for FY27. The focus on self-reliance, particularly in energy, defense, and strategic products, is expected to benefit the capital goods industry. Despite geopolitical tensions and evolving economic policies, Batliboi is confident in its FY27 outlook, anticipating improved performance across top-line and bottom-line, driven by strategic initiatives and a robust order book.

Green Hydrogen and Environmental Engineering Initiatives

Batliboi is actively pursuing opportunities in green hydrogen, having signed an MOU with L&T and a Chinese equipment manufacturer, with 2-3 active inquiries in the pipeline. The Indian subsidiary, Bioconserve Renewables Envirortech Private Limited, focuses on Zero Liquid Discharge solutions, targeting major new projects and profitable opportunities from ETP upgrades and O&M contracts. The Environmental Engineering group reported INR 17 crores in Q4 FY26 order inflow and has a healthy backlog of INR 32 crores, expecting improved performance in the coming year.

Segmental Performance and Expansion Plans

The machine tool division, leveraging state-of-the-art facilities, installed 115 machines in FY26. The Canadian subsidiary, Quickmill, reported a turnover of INR 35 crores in Q4 FY26 and INR 127 crores for FY26, with expectations for much better performance in FY27, focusing on export markets. Quickmill plans an expansion of approximately CAD 4 million (INR 25-30 crores), pending regulatory approvals within the next two quarters. The company is also expanding its product basket in the CNC space by adding new designs and 1-2 machines annually.

Operating Efficiency and Debt Management

Batliboi is continuously working on improving operational efficiency at the plant level through better equipment, tooling, and leveraging IT and AI. The production capacity in the fan division increased by nearly 40% in FY26. On the balance sheet, the company continued its deleveraging commitment, achieving a comfortable debt-to-equity ratio of 0.28x, a level it intends to sustain. This indicates a focus on financial prudence alongside growth.

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