Innomet Advanced Materials Q4 FY26 earnings call

Innomet Advanced Materials Limited reported strong revenue growth of 66% year-on-year, reaching ₹53.86 crore in FY26, up from ₹32.52 crore in FY25. This growth was primarily driven by higher business volumes across both Metal Powders and Tungsten Heavy Alloys, alongside a substantial increase in exports. However, EBITDA margins declined from 15.6% in FY25 to 10.4% in FY26, mainly due to a sharp increase in raw material prices, particularly tungsten, and higher business development and marketing expenses. Depreciation also increased by 45% due to recent investments in manufacturing infrastructure and capability enhancement.

FY26 marked a significant inflection point for Innomet, transitioning from capability creation to monetization. Investments in certifications, product development, manufacturing capabilities, technology, and international business development are now translating into meaningful business opportunities. A clear indicator of this momentum is the robust order position, with over ₹35.99 crore in orders secured within the first two months of FY27, representing more than half of the entire FY26 revenue, providing strong visibility for the new financial year.

The company achieved three important milestones: securing a ₹35.99 crore order book, including a landmark ₹15 crore Tungsten Heavy Alloy export order from Scope Metals, Israel. Innomet also received the AS9100D aerospace certification during FY26, significantly enhancing its credibility with global aerospace and defence customers. Furthermore, in collaboration with IIT Hyderabad and DMRL, Innomet was selected for a DRDO-supported project with an ₹8.73 crore outlay to establish an advanced inert gas atomization facility.

In February 2026, Innomet acquired a 57.5% stake in Swastik Tungsten for ₹1.5 crore through the NCLT process. This acquisition is strategically significant, strengthening backward integration and securing a critical raw material source for the tungsten business. Swastik Tungsten manufactures tungsten metal powders, tungsten carbide powders, and components with an annual combined capacity of 120 TPA, opening a new standalone revenue platform. Management expects full-fledged operations at 10 tons per month within the next 2-3 months.

Innomet is experiencing a structural shift in its business mix. The contribution of higher-value Tungsten Heavy Alloy to revenues increased from 21.6% in FY25 to 24.6% in FY26. Exports also significantly grew, contributing 18.3% of revenues in FY26, up from 9.7% in FY25. For the current ₹35.99 crore order book, Tungsten Heavy Alloy is expected to contribute 70-80%, and exports almost 77%, indicating a continued focus on higher-margin products and global market penetration.

The company's metal powder division currently has a 50 tons per month capability, operating at 40-42 tons per month, with plans to expand to 75-100 tons per month soon. Tungsten Heavy Alloy capacity was expanded last year from 1.5 tons to 5 tons per month. Innomet's medium-term objective is to cross ₹100 crore in revenue without significant additional capex, leveraging existing infrastructure. The DRDO-supported gas atomization facility is expected to be operational for trials within 1-1.5 years, producing 200-250 tonnes of clean metal powders annually.

Sustainability is deeply embedded in Innomet's manufacturing philosophy. Powder metallurgy inherently minimizes material wastage and supports recyclable product design. In FY26, a 280 kW solar power installation generated approximately 2.65 lakh units of electricity, meeting nearly 25% of the company's total power requirements. Other initiatives include rainwater harvesting, wastewater recycling, zero-discharge systems, and extensive scrap reutilization, enhancing environmental performance and competitiveness.