Goodluck India

Goodluck India reported a robust Q3 FY26 standalone performance with revenue growing 9.51% YoY to ₹1031.58 crores, up from ₹941.98 crores in the prior year. EBITDA saw a significant increase of 20.9% YoY, reaching ₹99.72 crores, resulting in an EBITDA margin of 9.7%. PAT before exceptional item^📎s also grew 8.4% YoY to ₹43.47 crores, and EPS stood at ₹12.83 per share, an 8.27% increase YoY. For the nine months of FY26, standalone sales increased by 6%, with EBITDA at ₹291.6 crores and a margin of 9.7%, up from 8.74% in the previous year.

The company is bullish on its Defense and Aerospace segment, which commenced production in Q3 FY26. The facility, currently at 150,000 shells annual capacity, is being augmented to 4 lakh shells, with a capital expenditure of ₹400 crores, funded 60% by equity and 40% by debt. At full capacity, this segment is projected to generate ₹900-1000 crores in revenue, with EBITDA margins of 30-35%. While Q3 contribution was insignificant, ₹60-70 crores is expected in Q4 FY26, with full contribution anticipated from Q1 FY27, despite some FY26 revenue being impacted by dispatch permission delays.

Demand drivers in infrastructure engineering and broader urban infrastructure remain strong, supported by government capital expenditure of ₹12.2 lakh crore for FY27. The company is booked for the next 1-1.5 years in its infrastructure division. The automobile tubes segment continues to perform steadily, with easing US tariffs expected to boost hydraulic tubes capacity utilization from 40-45% to 60-65% in the next 2-3 quarters. The company aims for a value-added product mix of 60-65% in the coming year, up from 56-60%.

Total capex incurred till December 31, 2025 (9M FY26) was ₹186 crores, with an additional ₹30 crores expected in Q4 FY26. The major capex plan involves ₹400 crores for augmenting defense artillery shell capacity, which will be financed with 60% equity and 40% loan. The company expects a working capital requirement of ₹200-250 crores when the defense business reaches its peak. Future capex for FY27 and FY28 is still in the working stage, beyond natural maintenance capex.

The steel and engineering sector showed signs of strengthening in December 2025, with prices for hot rolled coil and cold rolled coil improving by almost 4% in January 2026. The company is focusing on scaling defense operations, increasing its share of high-margin value-added products, and maintaining strict cost discipline. The solar structures business is a key sunrise sector, with a target to achieve ₹600-700 crores in revenue in the next financial year, up from approximately ₹400 crores this year and ₹250 crores two years ago.

While raw material prices have fluctuated, the company's value-added product mix and segment diversification help mitigate impact. In the infrastructure sector, there is a complete pass-through of costs due to declared price policies. For auto tubes, there is a pass-through with a time lag. The defense segment has a lower raw material contribution, making it less susceptible to price volatility. Management expects EBITDA margins to increase due to better product mix and operational efficiencies, despite high capacity utilization.