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KAKARAMTARA

KARAMTARA Q1 FY27 results (Apr–Jun 2026) and concall

Capital Goods · Concall AI · Call held 7 Oct 2026

Company page: KARAMTARA share price, financials & guidance record

Source transcript

Management summary

This transcript is for Q1 FY27 (quarter ended June 30, 2026), not Q2. It was Karamtara's first earnings call as a listed company, held on October 7, 2026. Revenue grew 72% YoY to ₹1,581 crores, but EBITDA (₹174 crores) and PAT (₹87 crores) grew only 45%. High shipping and trucking costs kept EBITDA margin at about 11%, compared with 13% a year ago, and about ₹250 crores of revenue was US tariff passed through to customers. Management repeated FY27 revenue growth guidance of 60-65%, with 58-60% of revenue usually coming in H2, and said Q2 margins were 'far better'. It is ramping up the new Bhachau transmission plant and a Saudi plant (trials around December 2026), and working capital tightened to 36 days. However, no order book was disclosed, and management would not give FY28 or margin targets.

Highlights

  • Revenue of ₹1,581 crores, up 72% YoY; EBITDA of ₹174 crores and PAT of ₹87 crores, each up 45% YoY

  • Working capital cycle cut to 36 days from 67 and then 43 days; interest cost down to 2.6% of revenue; in FY26, cash conversion was about ₹675 crores on EBITDA of about ₹500 crores

  • FY27 revenue growth guidance of 60-65% repeated, and management hopes to beat it internally; Q2 FY27 called 'good', with margins 'far better even with the elevated cost of the oil'

  • International business is 66% of revenue, with exports to more than 50 countries; the 50% US Section 232 tariff was fully passed through to buyers

  • Capacity of 889,200 MTPA after ₹900 crores of capex in FY26; the Bhachau transmission plant should reach peak capacity in 6-9 months and the Saudi plant starts trials around December 2026

Concerns

  • EBITDA margin was about 11%, compared with 13% in Q1 FY26 (about 200 bps lower YoY). EBITDA and PAT grew 45%, against 72% revenue growth, because shipping and trucking costs were at all-time highs

  • About ₹250 crores of revenue (about 16%) is US tariff passed through to customers, up from ₹113 crores in Q1 FY26. This inflates the headline growth and lowers the margin percentage; other expenses were about ₹500 crores

  • No order book, order inflow or book-to-bill figures were disclosed. Management also declined to give FY28 guidance, a long-term EBITDA margin target, or PEB margins

Key financials

  1. Revenue ₹1,581 Cr +72%YoY
  2. EBITDA ₹174 Cr +45%YoY
  3. EBITDA Margin 11%
  4. PAT ₹87 Cr +45%YoY
  5. Working Capital Days 36 days
  6. International Revenue Share 66%

What they filed

Q1 FY27: revenue up 50.1%, net profit up 123.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q2 FY25Q1 FY26Q4 FY26Q1 FY27
Revenue1,053 1,413 918 1,257 1,581 +50%
EBITDA104 153 120 106 174 +67%
Net profit39 59 60 38 87 +123%
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

  • Renewable Products (Solar & Wind)
    82% Revenue Share
  • International Business
    66% Revenue Share

Order book

low confidence

Execution

No execution period was given for the order book. Contract delivery periods: domestic solar about 4-5 months; international about 8-9 months; some long-term contracts are over one year and carry price variation clauses

No order book or order inflow was quantified. Management only said demand is running ahead of supply and that large installed capacity lets it pick orders selectively while keeping commercial discipline.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex Capex disclosed Term loans plus IPO proceeds; the split was not disclosed. FY26 capex was ₹900 crores, and the FY27 amount was not quantified.
    • New rolling mill at Bhachau, Gujarat, to support the transmission tower business and solar tracker piles
    • PEB (pre-engineered buildings) facility at Bhachau aimed at data centers; expected to be ready by the start of FY28
    • Solar stamped-part facility at Boisar, Maharashtra
    • Multiproduct plant in Saudi Arabia for transmission line and solar products; trials around December 2026, galvanizing plant online by February-March 2027
    • Fasteners capacity expansion
    we are continuously doing capex, last year, we did INR900 crores of capex, and we continue to invest this year.
  • Debt Debt disclosed
    • New borrowing Term loans were taken to fund capex, and interest on them has gone up. Total interest cost is 2.6% of revenue, and management expects it to fall once the IPO proceeds are deployed. The amount and timing of the loans were not disclosed.
    And also in terms of interest cost, what Rajiv has pointed out is the fact that it has come down to 2.6% of our revenue, which is also gives a signal that we are controlling our working capital very tightly.
  • Liquidity Liquidity disclosed IPO proceeds from the company's first-ever fundraise have not yet been fully deployed; the amount was not given on the call. In FY26, cash conversion was about ₹675 crores against EBITDA of about ₹500 crores.
    So Sanjay bhai, we are always -- this is the first time the company has raised money. So we are very, very careful where our capital is concerned.

Guidance & targets

Revenue

  • FY27 Revenue Growth Revenue · FY27 · Medium confidence 60-65% YoY (management hopes to beat it internally)
    Talking about our annual performance, for FY27, we endeavor to grow our revenues by 60% to 65% over the last year.

    — Sunil Rustagi, Whole-Time Director and CEO

Revenue - Phasing

  • H1 vs H2 Revenue Split Revenue - Phasing · FY27 · Medium confidence H1: 40-42% of annual revenue; H2: 58-60%
    As a business, as a sector, we normally have 40% to 42% of the revenue that comes in, in the first six months, and then 58% to 60% of the revenue that comes in the last six months.

    — Rajiv Singh, Joint Managing Director

Revenue - Solar

  • Solar Revenue Revenue - Solar · FY27 · Medium confidence About ₹5,000-5,500 crores (vs ₹20 crores in FY21)
    So if you look at what we did in solar, let's say, in FY21, we were INR20 crores in solar, and this year, we let's say, we do INR5,000 crores, INR5,500 crores of revenue in that.

    — Rajiv Singh, Joint Managing Director

Margin

  • EBITDA Margin Trajectory Margin · Q2-Q4 FY27 · Low confidence Above Q1 FY27's ~11% as revenue and asset use rise through Q3/Q4 (Q2 FY27 margins described as 'far better'); no number given
    we earned EBITDA of about 11% in quarter one. And definitely, as the revenue grows in subsequent quarters, there would be an improvement in the EBITDA margin in line with our expectation.

    — Sunil Rustagi, Whole-Time Director and CEO

Capacity - Saudi Arabia

  • Saudi Arabia Facility Commissioning and Ramp-up Capacity - Saudi Arabia · Dec 2026 - Mar 2027 (commissioning); FY28-FY29 (revenue ramp) · Medium confidence Trials in December 2026; galvanizing plant online by February, or March at the latest, 2027; good utilization in 12-18 months; partial revenue next year, most of it the year after
    So Saudi, the capacity, we will start doing, hopefully, some trials in December, and by February, or latest by March, we hope that our galvanizing plant will come online. ... And it will take about 12 to 18 months for us to be able to hit, you know, good numbers in that capacity over a period of time.

    — Rajiv Singh, Joint Managing Director

Capacity - Bhachau Transmission

  • Bhachau (Bhuj) Transmission Facility Peak Capacity Capacity - Bhachau Transmission · 6-9 months from October 2026 (roughly Q4 FY27 to Q1 FY28) · Medium confidence Peak capacity within 6-9 months
    As far as India is concerned, the facility in Bhuj has started. By this quarter, also, we've had reasonable tonnages, but we feel, by the next 6 to 9 months, we should be hitting peak capacity in that facility also.

    — Rajiv Singh, Joint Managing Director

Capacity - PEB

  • PEB Facility Start-up Capacity - PEB · Start of FY28 · Medium confidence Facility ready by the start of FY28; some revenue in FY28 and a fast ramp-up in FY29
    Same is, let's say, we've added in PEB, the facility should be ready, let's say, by the beginning of next financial year, we should be starting. So you'll see some revenue coming in the next financial year, but the year after that, once we start sweating those assets to a large extent we're able to ramp up really quickly.

    — Rajiv Singh, Joint Managing Director

Other - Services Mix

  • Services Share of Revenue Other - Services Mix · Ongoing · Medium confidence Capped at 3-5% of revenue
    And so we will do a little bit of services as and when is required to protect our margin, but that would be 3% to 5% of our revenue.

    — Rajiv Singh, Joint Managing Director

Debt - Interest Cost

  • Interest Cost as % of Revenue Debt - Interest Cost · After IPO proceeds are deployed (timing not specified) · Low confidence Below the current 2.6% of revenue once IPO proceeds are deployed
    Of course, there is some portion of term loan which has been taken for our capex. And once we deploy the money which we have pulled it from the IPO market, definitely, the interest cost will further go down.

    — Sunil Rustagi, Whole-Time Director and CEO

What to watch in Q2 FY27

Revenue growth vs FY27 60-65% guidance

next quarter
Current Q1 FY27 revenue of ₹1,581 crores, up 72% YoY; management says Q2 was 'good' and in line
Target Q2 FY27 YoY growth consistent with 60-65%; H1 at about 40-42% of FY27 revenue

Why it matters

The guidance needs 58-60% of revenue in H2, so H1 delivery shows whether that is credible.

Yes, Q2 has been good for us. And as he mentioned in his opening remarks, that we endeavor to grow by about 60% to 65% on a year-on-year basis. So in line of that, we have done reasonably well.

Find out whether KARAMTARA delivers this. Inve re-checks your case every morning.

Risks & concerns

  • High shipping and local trucking costs squeezing EBITDA margin

    high

    Global fuel costs pushed EBITDA margin to about 11% from 13% in Q1 FY26. Management expects recovery as new contracts pass on the costs and freight normalizes.

    Both acknowledged

  • Fixed costs of new capacity not yet covered by revenue (Bhachau transmission, Saudi, PEB)

    medium

    Teams and fixed costs are already being carried before revenue arrives. Saudi needs 12-18 months to reach good utilization, and PEB only starts in FY28.

    Both acknowledged

  • Back-ended (H2-heavy) revenue needed to deliver 60-65% FY27 growth

    medium

    58-60% of revenue usually comes in H2. An analyst questioned whether utilization above the historical 55-60% is achievable.

    Both acknowledged

  • US Section 232 tariff at 50% and trade policy dependence

    medium

    Buyers have absorbed the tariff in full so far (₹250 crores in Q1 revenue). Management cited thin US domestic supply and US prices 30-40% higher than Indian supply.

    Analyst downplayed

  • Geopolitical conflict disrupting supply chains and the Saudi/Middle East plans

    medium

    Commodity pass-through relies on supply chains working, and management said they 'could get disrupted a little bit' in wartime. It sees Saudi demand (Expo 2030, the 2034 World Cup, renewables) as intact.

    Both downplayed

  • Higher interest on capex term loans

    low

    Term-loan interest has risen with capex, but total interest is 2.6% of revenue and is expected to fall once IPO proceeds are deployed.

    Management acknowledged

Q&A highlights

3 direct, 2 evasive
Long-term EBITDA margin target of 13-14% Partial
Rustagi: 'it's with due respect we are not able to really comment on the percentage...' Singh: 'if you look at our Q1 numbers of FY26, and you see the margins there, we were at 13% EBITDA there... I think you should do the math and see where this could land.

The CEO would not give a margin number. The JMD pointed to Q1 FY26's 13% as an unofficial benchmark, which makes recovery from 11% the key debate.

Asked by Subhanu Bangal (Three X Capital)

FY28 revenue guidance Evasive
But on a number today, we do not want to give, we would not like to give the guidance as of today.

There is no outer-year visibility, even though the Saudi, PEB and transmission capex is meant to drive FY28-29 revenue and no order book was disclosed.

Asked by Arvind Arora (A-Square Capital)

PEB segment margin profile (11-13% EBITDA?) Evasive
I do not want to qualify that. We are just getting into it, but we are very hopeful that the margins should be really, really good.

Capital is going into a new segment (data-center PEB) with no stated margin or return framework.

Asked by Arvind Arora (A-Square Capital)

Whether the 11% margin will hold given high delivery costs; hint on Q2 Partial
although we've already done with our Q2, and the margins, I'll just leave it at that, that the margins are far better even with the elevated cost of the oil.

New information: management indicated Q2 FY27 margins recovered above 11% despite the freight headwinds. This can be checked next quarter.

Asked by Subhanu Bangal (Three X Capital)

Capacity utilization needed to hit more than ₹7,000 crores of revenue Partial
So as we go on sweating these assets that we have added, and these assets will yield higher revenue not only this year, but the year going forward.

Utilization has historically been 55-60%, and the guidance may need more than 75%. Management described the ramp-up but gave no utilization number and did not confirm the analyst's ₹7,000 crore figure.

Asked by Gaurav U. (Mirae Asset)

US tariff component in revenue Direct
the tariff was of INR250 crores and odd figure, which is a part of our Q1's revenue. But as mentioned earlier by Rajiv sir, that everything is passed on to our customers, so it doesn't impact our profitability. ... Yes, on year-on-year basis, Q1 '26 was INR113.

About 16% of Q1 revenue is tariff passed through to customers, more than double the year before. This inflates headline growth and lowers the reported margin percentage.

Asked by Pankaj Saraf (Individual Investor)

What drives margins, and Saudi capacity timeline Direct
We would have had a better realization on our margins, but we were the shipping costs these days and the local costs, let's say, in Europe or supplying into the Middle East today, where the trucking costs are at all-time high.

Management blamed the margin squeeze on logistics. It said fixed costs from new facilities are already being carried, and Saudi local-content manufacturing should earn much better margins.

Asked by Gaurav U. (Mirae Asset)

Capital allocation, working capital and interest cost Direct
So from 67 days, it has come down to 43 days. And now further in this quarter, it has come down to 36 days.

A 36-day working capital cycle is unusually low for capital goods and supports the 25-27% ROCE an analyst cited. It matters for funding an H2-heavy year.

Asked by Suyash Kela (Singularity AMC)

4 min read 8 chapters

Detailed narrative

First Listed Quarter: 72% Revenue Growth, 45% Profit Growth

On its first earnings call as a listed company, Karamtara reported Q1 FY27 revenue from operations of ₹1,581 crores, up 72% YoY. EBITDA was ₹174 crores and PAT ₹87 crores, each up 45% YoY, giving a PAT margin of about 5.5%. Renewable products (solar and wind structures) made up 82% of revenue and international business 66%, with exports to more than 50 countries; volumes were about 135,000 tons. Management said revenue is seasonal, with 40-42% in H1 and 58-60% in H2, and asked investors to judge the company on an annual basis.

Freight and Trucking Costs Hold EBITDA Margin at About 11%

EBITDA margin was about 11% in Q1 FY27, compared with 13% in Q1 FY26. Management blamed shipping costs and all-time-high local trucking costs in Europe and the Middle East, driven by higher global fuel prices. It added that teams and fixed costs for new facilities are already being carried before those plants generate revenue. Management expects margins to recover as new contracts pass on the higher logistics costs and new capacity is used more fully. It said Q2 FY27 margins were 'far better even with the elevated cost of the oil', but declined to commit to a 13-14% medium-term target.

US Tariff Pass-Through Inflates Reported Revenue

About ₹250 crores of Q1 FY27 revenue (about 16%) was US tariff cost passed through to customers, compared with ₹113 crores in Q1 FY26. A figure of about ₹196 crores was also mentioned for an earlier period, apparently Q4 FY26, though the exchange is unclear. These tariff and freight costs sit within other expenses of about ₹500 crores. The company's steel products fall under Section 232 at 50%, and management said buyers absorbed each step-up from 0% to 25% to 50% in full, with change-of-law protection for goods already in transit. US steel prices are 30-40% higher than Indian supply, with 6-8 month lead times. Working from the disclosed figures, revenue growth excluding tariffs is roughly 65% YoY and the EBITDA margin excluding tariffs is about 13%.

Capacity Build-Out: Bhachau Transmission, Saudi Plant and PEB

Installed capacity was 889,200 MTPA (excluding rolling and galvanizing capacity used in-house) across 13 plants: seven at Boisar, one at Nagpur, four at Bhachau and one in Italy. Capex was ₹900 crores in FY26 and investment continues this year. The new Bhachau (Bhuj) transmission tower plant has started production and should reach peak capacity in 6-9 months. The Saudi multiproduct plant for transmission and solar products is under construction: trials are planned around December 2026, the galvanizing plant should be online by February-March 2027, and good utilization will take 12-18 months. A data-center PEB facility, a new rolling mill at Bhachau and a solar stamped-parts unit at Boisar are also coming up.

Transmission and PEB as the Next Growth Engines

Management called transmission its 'second innings'. It aims to repeat solar's growth, from ₹20 crores of revenue in FY21 to about ₹5,000-5,500 crores this year, in transmission and PEB over the next two to three years. Wind tower capacity can be switched to making transmission towers. Management said existing large clients building data centers pushed the company into PEB, and it expects margins similar to its other businesses, but would not commit to an 11-13% EBITDA band. Services will be capped at 3-5% of revenue to stay product-led and avoid EPC-style working capital.

Working Capital Discipline and Funding

The working capital cycle fell from 67 days to 43 days and then to 36 days in Q1 FY27. Interest cost dropped to 2.6% of revenue, even though interest on capex term loans went up. In FY26, EBITDA was close to ₹500 crores and cash conversion about ₹675 crores. Management said deploying the IPO proceeds, the company's first-ever external fundraise, will lower interest cost further. An analyst put ROCE at 25-27%, and management said it hopes that trend continues.

Pass-Through Contracts Limit Commodity Risk

Domestic solar contracts run 4-5 months. Raw material is booked when an order comes in, and steel mills allow about 90 days to collect it. Export contracts run about 8-9 months, with raw material imported against each order. Longer domestic transmission contracts and international contracts over one year include price variation clauses, and some large overseas transmission orders are on FOB terms with shipping passed through. Management admitted supply chains could be 'disrupted a little bit' in wartime.

Guidance Framework and Disclosure Gaps

Management guided FY27 revenue growth of 60-65% and said it internally hopes to beat this. It described Q2 as 'good' and in line, with growth expected from solar, wind, transmission and fasteners. It declined to give FY28 numbers, a long-term EBITDA margin target, or PEB margins. Unusually for a capital goods company, it disclosed no order book, order inflow or book-to-bill figures, saying only that demand 'continues to outpace supply'. Saudi revenue is expected to begin next year, with most of it the year after, and PEB follows a similar ramp-up.

Summary of a publicly available earnings call transcript; see how call summaries are prepared. Not investment advice.