Goodluck India Limited — Q3 FY26 earnings call

Call held 16 Feb 2026

Management summary

Goodluck India reported a strong Q3 FY26 with standalone revenue growing 9.51% YoY to ₹1031.58 crores and EBITDA increasing 20.9% YoY to ₹99.72 crores. The company reaffirmed its 15-20% revenue growth guidance for FY26, with significant contributions expected from the Defense & Aerospace segment starting Q1 FY27. Capex for 9M FY26 stood at ₹186 crores, with plans for further investment in defense capacity augmentation.

Highlights

  • Standalone Revenue for Q3 FY26 grew 9.51% YoY to ₹1031.58 crores.

  • EBITDA for Q3 FY26 increased by 20.9% YoY to ₹99.72 crores, with margin expanding to 9.7%.

  • PAT before exceptional items for Q3 FY26 grew 8.4% YoY to ₹43.47 crores.

  • Defense and Aerospace segment shows strong order visibility (8 months order in hand, 2 years LOI) and high revenue potential (₹900-1000 crores at full capacity) with 30-35% EBITDA margins.

  • Solar structures business is targeted to cross ₹600-700 crores in the next financial year.

Concerns

  • Geopolitical tensions and 'Trump gimmicks' created volatility in the business environment during the year.

  • Defense shell business revenue recognition for FY26 is impacted by delays in dispatch permissions, reducing the target to ₹60 crores.

  • Hydraulic tubes capacity utilization is currently low at 40-45%, though expected to improve to 60-65% in the next 2-3 quarters.

Key financials

2 periods

Headline

  • Standalone Revenue
    ₹1,031.58 Cr
    YoY +9.5%
  • Standalone EBITDA
    ₹99.72 Cr
    YoY +20.9%
  • Standalone EBITDA Margin
    9.7%
  • Standalone PAT (before exceptional)
    ₹43.47 Cr
    YoY +8.4% QoQ +5.3%
  • Standalone EPS
    ₹12.83
    YoY +8.3%

9M

  • Standalone EBITDA Margin
    9.7%

What they filed

Q1 FY27: revenue up 22.7%, net profit up 25.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue976 942 1,105 983 991 +2%1,032 +10%1,061 −4%1,206 +23%
EBITDA71 80 85 92 92 +30%98 +23%91 +7%101 +10%
Net profit45 40 42 40 41 −9%43 +8%49 +17%50 +25%
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.

Order book

low confidence
The company has 8 months of orders in hand and 2 years of LOI for the aerospace and defense segment. For the infrastructure division, they are booked for the next 1-1.5 years, and the automobile division has visibility for the next two quarters.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹216 Cr 60% equity, 40% loan for defense capacity augmentation
    • Capacity augmentation for defense artillery shells (1.5 lakh to 4 lakh shells) ₹400 Cr
    Sir, for this augmentation of capacity from 1.5 lakh to 4 lakh, we will be incurring a expense of almost a capital expenditure of almost INR400 crores. Out of that part will be financed through some equity and some bank loans. So for the -- and as far as the internal accruals are concerned that will be the part of the equity at that time. It will be 60%, it will be equity, and 40%, it will be loan. Total capex already done till 31st December was INR186 crores. And in fourth quarter, we expect about INR30 crores capex.
  • Debt Debt disclosed
    On financial front our interest cost have marginally gone up due to increase in current assets as compared to 9 months period of previous year.
  • Liquidity Liquidity disclosed Working capital requirement for the peak defense business is estimated at ₹200-250 crores.
    We expect almost INR200 crores, INR250 crores working capital will be required at that time when we reach the peak.

Guidance & targets

Revenue Growth

  • FY26 Revenue Growth Revenue Growth · FY26 · High confidence 15-20%
    Our perception towards the market is that our prediction for the 15% to 20% growth, it remains the same.

    — Ram Agarwal

  • FY27 Revenue Growth Revenue Growth · FY27 · Medium confidence Better than FY26 (15-20%)
    So, we remain hopeful that we will be achieving 15% to 20% growth for this year, and it will be better in the FY '27.

    — Ram Agarwal

Revenue

  • Solar Structures Business Revenue Revenue · Next FY · High confidence ₹600-700 crores
    And this year we have done almost a very good business and next year we hope we should cross INR600 crores to INR700 crores business in this sunrise sector of the solar structures.

    — Ram Agarwal

  • Defense Artillery Products Revenue (Full Capacity) Revenue · Full Capacity · High confidence ₹800 crores
    Artillery project, it will be almost INR800 crores for the artillery products and INR200 crores for the aerospace products.

    — Ram Agarwal

  • Aerospace Products Revenue (Full Capacity) Revenue · Full Capacity · High confidence ₹200 crores

    — Ram Agarwal

Sales Volume

  • Large Diameter Heavy Wall Pipes Annual Sales Sales Volume · Annually · High confidence 48,000 metric tons
    We are trying to ramp up our capabilities in large diameter heavy wall thickness pipes for having a trying to planning sales of 48000 metric ton annually.

    — Mahesh Chandra Garg

Capacity Utilization

  • Hydraulic Tubes Capacity Utilization Capacity Utilization · Next 2-3 quarters · High confidence 60-65%

    From 40-45% today

    Capacity utilization of hydraulic tubes, it is running around 40% to 45% right now. But in the coming two quarters as the U.S. tariffs has eased, so we hope that in the next two quarters, it should go almost 60% to 65% because what the easiness that Trump has given, it will pervade in the system. It will take some time, two quarters or three quarters, then this will be ramped up to 65%.

    — Ram Agarwal

Product Mix

  • Value-Added Mix Product Mix · Coming year · High confidence 60-65%

    From 56-60% today

    Right now, it extends from 56% to 60%. And in the coming year, we hope it should go from 60% to 65%.

    — Ram Agarwal

Profitability

  • Defense Artillery Shells EBITDA Margin Profitability · Coming year · High confidence 30-35%

    From 30% today

    And the EBITDA margins will be almost 30% right now, and we hope it will go in the range of 30% to 35% in the coming year as well.

    — Ram Agarwal

  • Aerospace EBITDA Margin Profitability · Current expectation · High confidence 28-32%
    As far as EBITDA margins are concerned, they are 28% to 32% -- they are what we expect right now because India is more and more pressing on the air.

    — Ram Agarwal

Revenue Contribution

  • Defense Revenue Contribution Revenue Contribution · Q4 FY26 · High confidence ₹60-70 crores
    Yes, it is likely to be. And we hope almost INR60 crores, INR70 crores will be contributed in Q4 as well.

    — Ram Agarwal

  • Defense Revenue Contribution Revenue Contribution · Q1 FY27 · High confidence Fully contributing
    But from Q1, it will be contributing fully.

    — Ram Agarwal

  • Defense Shell Business Revenue Revenue Contribution · FY26 · Medium confidence ₹60 crores

    Previously ₹100 crores → ₹60 crores

    We are very much in the line, but the issue is because it needs some permission to dispatch. So we are waiting for the dispatch permission. And as I have already told that even it comes delayed, so we will be doing almost INR60 crores this financial year.

    — Ram Agarwal

Working Capital

  • Working Capital Requirement Working Capital · Peak Defense Business · High confidence ₹200-250 crores
    We expect almost INR200 crores, INR250 crores working capital will be required at that time when we reach the peak.

    — Ram Agarwal

What to watch in Q4 FY26

Defense Shell Business Revenue Contribution

Q1 FY27
Current Insignificant in Q3, ₹60 crores expected in FY26
Target Full contribution from Q1 FY27

Why it matters

To verify the commencement of full revenue contribution from the high-margin defense segment after dispatch permission delays.

So the contribution will come in this Q4, and the Q1 full contribution will come in the Q1 of next financial year. This year, it is insignificant, in this quarter.

Risks & concerns

  • Geopolitical tensions and 'Trump gimmicks'

    medium

    Geopolitical tensions and 'Trump gimmicks' created havoc and volatility in the business during the year.

    Management acknowledged

  • Fluctuating raw material prices

    medium

    Raw material price volatility is a concern, but mitigated by value-added products and pass-through mechanisms in infrastructure and defense segments.

    Management mitigated

  • Delay in dispatch permission for defense shell business

    medium

    Final dispatch permission from the government is pending, delaying revenue recognition for the defense shell business in FY26, reducing its contribution to ₹60 crores.

    Management acknowledged

  • Dividend payout vs. capex funding

    low

    Analyst questioned the dividend payout given significant capex plans, but management stated it's for shareholder benefit.

    Analyst justified

Q&A highlights

5 direct, 1 evasive
Segment-wise volume breakup for Q3 and 9M FY26 Evasive
We will provide you, not an issue. We will we will send you a mail because it's a lengthy part, we will send you.

Management declined to provide detailed segment-wise volume data on the call, indicating a lack of transparency for a key operational metric.

Asked by Harsh Vasa

Funding mix for ₹400 crore defense capacity augmentation Direct
It will be 60%, it will be equity, and 40%, it will be loan.

Clarified the capital structure for a significant capex, showing reliance on internal accruals (equity) for the majority.

Asked by Harsh Vasa

Start date for revenues from incremental defense artillery shells Direct
Sir, it will take almost a year's time. So you can expect from the first quarter of, say, April '27, it will be started.

Provided a clear timeline for when the new defense capacity will begin contributing to revenue, crucial for future projections.

Asked by Harsh Vasa

Rationale for declaring dividend amidst heavy capex plans Partial
Actually, you are very correct. We should think. But our management view is that our shareholders, yes, they are getting the benefit of the improvement, they are getting improvement in our capacity expansion. But at the same time, we should get something. Whatever is possible, we should give in the dividend that's the management views.

Analyst questioned the capital allocation strategy, suggesting funds could be better utilized for capex; management justified it as a shareholder benefit without elaborating on specific financial impact.

Asked by Darshil Jhaveri

Ability to pass through raw material price increases, especially for auto tubes and defense Direct
As far as our infrastructure sector is connected, there it is a complete pass-through because we have a declared price policy. And in terms of defence, raw material contribution is less. So it will not effect much. So in all, if you see, in our conventional business, it may impact something. But in our value addition business, it will not impact us significantly.

Clarified the company's pricing power and margin protection strategies across different segments in response to raw material volatility.

Asked by Sukhwinder Singh

Risk of aerospace EBITDA margins coming down in 3-5 years Direct
Sir, this aerospace part, I will not agree with you because India is doing nothing. HAL is having an order line of almost INR9,50,000 crores. ADA is coming with this AMCA, 125 planes. Now Adani is coming. So India is doing nothing in the aerospace sector. Now this is the time when the demand will increase, a more knitted value chain system, a more knitted vendor system is required where the vendor partners' contribution will increase.

Management strongly refuted the idea of margin compression in aerospace, citing India's nascent but growing domestic demand and strategic importance, suggesting long-term margin stability or improvement.

Asked by Sukhwinder Singh

Revenue contribution from the shell business in Q3 FY26 and FY26 target Direct
In Q3, it is not significant because only production has started. It has not started selling. So the contribution will come in this Q4, and the Q1 full contribution will come in the Q1 of next financial year. This year, it is insignificant, in this quarter. We are very much in the line, but the issue is because it needs some permission to dispatch. So we are waiting for the dispatch permission. And as I have already told that even it comes delayed, so we will be doing almost INR60 crores this financial year.

Provided clarity on the delayed revenue recognition for the defense shell business due to dispatch permissions, impacting FY26 contribution but confirming full contribution from Q1 FY27.

Asked by Charchit Maloo

3 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

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 items 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.

Defense & Aerospace Segment Outlook

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.

Infrastructure & Automobile Segment Performance

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%.

Capital Expenditure and Funding

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.

Market Conditions and Strategic Focus

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.

Raw Material and Margin Management

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.

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

More Capital Goods earnings calls