Mold-Tek Technologies Limited — Q3 FY26 earnings call

Call held 12 Feb 2026

Management summary

Mold-Tek Technologies reported a strong Q3 FY26 with profits up 6x YoY and a 20.2% QoQ improvement, driven by contributions from the newly acquired Beryl and strategic cost controls. The company is restructuring its automotive division and expects significant growth in civil engineering services, particularly from data centers and transmission lines. Management projects a 25-35% top line CAGR and over 20% EBITDA margin in the coming years, despite initial acquisition write-offs and ongoing challenges in the automotive sector.

Highlights

  • Profits increased 6x compared to Q3 FY25, and Q2 to Q3 performance improved by 20.2%.

  • Beryl, the newly acquired subsidiary, contributed $137,000 (INR 1.25 crores) to the bottom line from two months of operation.

  • Strategic reduction of the automotive team size from 160 to 60 is expected to improve cost control and efficiency.

  • MES division is expected to turn profitable by pruning losses of INR 6-7 crores, and civil engineering services are projected to grow at least 20% in FY27.

  • Management targets a 25-35% CAGR on the top line and over 20% EBITDA margin for the next 3-5 years.

Concerns

  • Acquisition costs for Beryl (legal, due diligence, travel) were written off, reducing its effective Q3 contribution to INR 20 lakhs.

  • The automotive division is facing 'rough weather' and 'low traction', necessitating a significant reduction in team size.

  • Slowdown in US construction activity during the first 6 months of the year led to project hold-ups, though activity is now picking up.

  • The BIW (Body-in-White) division is not seeing much movement due to a general slowdown in the automobile industry.

Key financials

  1. Profit Growth (YoY) 6×
  2. Performance Growth (QoQ) 20.2% +20.2%QoQ
  3. Beryl Contribution (2 months) ₹1.25 Cr
  4. Beryl Contribution (after write-off) ₹20 lakh
  5. Employee Expenses (QoQ) ₹37 Cr

What they filed

Q1 FY27: revenue up 78.9%, net profit up 1223.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue43 34 30 33 40 −7%53 +57%55 +86%60 +79%
EBITDA12 3 -3 0 4 −64%5 +99%1 +134%12 +2423%
Net profit8 1 -2 1 3 −59%4 +620%2 +246%9 +1224%
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 continues to have excellent workflow, with a major jump in civil project wins in the last 4-5 months, following a period of uncertainty in the US.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • Construction of own campus in Nashik
    And buyback is an idea we are not yet considered because we are keeping this cash and funds for further acquisitions or even constructing our own campus in Nashik, which has started just recently, land has been acquired 3, 4 years ago.
  • M&A Beryl Acquisition · Integrated · Consideration ₹[object Object] (undisclosed)

    First step in acquisition strategy, adds 40 American employees, 15 years of experience in Florida, and expands into residential civil engineering work.

    Contributed $137,000 (INR 1.25 crores) to bottom line in 2 months, but reduced to INR 20 lakhs after acquisition cost write-offs. Expected to cross $6 million top line this year and EBITDA margin to improve from 8-10% to 30-35% within a year.

    The acquisition of Beryl is the first step forward, wherein we have 40 American employees who have been working with us for the last 3 months now. And the integration process is on. Our two of our engineers are now stationed in Florida, working with the team there and understanding the nitty-gritty of the work and how to make that work outsourced from India, that means our Indian office to get the cost advantage because they have a top line of around 5.5 million last year. And hopefully, at least if they cross 6 million this year, it will be a 30% addition to our top line. And with the addition of the Beryl team, we not only are getting some PEs and engineers in the team, but also their 15 years of experience in Florida in dealing with inspections, depositions and also designing. And through these contacts, which they established over the state in Florida, we will be able to penetrate our designing and detailing services also at a much higher price because of the local presence and American front ending. So these benefits are going to accrue definitely from the next year itself, and we will be seeing the margin improvement also in a considerable manner.
  • M&A Richard Leon (CEO of Beryl) Acquisition · Pending regulatory · Consideration ₹[object Object] (stock)

    Ensures longevity of his services to Mold-Tek.

    See, first question, yes, Mr. Leo Cannyn will be buying about $0.5 million worth of shares and the demat process is just getting completed. And then the shares may be issued in the next couple of months. So he is going to hold on them for a period of minimum 3 years. That's what his commitment. And that ensures that longevity of his services available to Mold-Tek. So that is one.
  • Liquidity Liquidity disclosed Company is keeping cash and funds for further acquisitions and construction of its own campus in Nashik.
    And buyback is an idea we are not yet considered because we are keeping this cash and funds for further acquisitions or even constructing our own campus in Nashik, which has started just recently, land has been acquired 3, 4 years ago.

Guidance & targets

Revenue

  • Beryl Top Line (FY27) Revenue · FY27 · High confidence $6 million
    And hopefully, at least if they cross 6 million this year, it will be a 30% addition to our top line.

    — J. Lakshmana Rao

  • Full Year Revenue (FY26) Revenue · FY26 · High confidence INR 175-180 crores
    9 months, we have achieved INR130 crores. So probably we'll be ending this year at around INR175 crores, INR180 crores, let's say, INR180 crores plus.

    — J. Lakshmana Rao

  • Top Line (FY27) Revenue · FY27 · High confidence INR 225-240 crores
    Assuming we get at least 10% to 15% growth, which we discussed about data centers, we are aiming at about 25 million top line next year. That is almost INR225 crores at the current rate from INR160 crores or whatever we are going to achieve in the full year. So from INR180 crores to 225 million, that's about 225, 230.

    — J. Lakshmana Rao

  • Top Line CAGR Revenue · next 3-5 years · High confidence 20-25%
    Your question about 3 to 5 years, we'll continue to grow at the rate of at least 20%, 25% CAGR on the top line.

    — J. Lakshmana Rao

  • Civil Engineering Services Growth Revenue · next financial year · High confidence 20%
    So I'm very confident that Civil will see at least a 20% growth in the next financial year.

    — J. Lakshmana Rao

Profitability

  • Beryl EBITDA Margin Profitability · within a year · High confidence 30-35%

    From 8-10% today

    Beryl has last year, 8% to 10% EBITDA. That EBITDA margin can shoot up to 30%, 35% within a year's time once half of their work is outsourced to our Indian office.

    — J. Lakshmana Rao

  • Overall EBITDA Margin Profitability · future · Medium confidence 25%
    So probably we can still look at a 25% EBITDA margin is possible.

    — J. Lakshmana Rao

  • Overall EBITDA Margin Profitability · future · High confidence >20%
    So going forward, we are very confident that the EBITDA margins and the top line revenue growth will be definitely somewhere in -- I mean, the top line growth should be in the region of 25% to 35% and EBITDA should at least cross 20% overall.

    — J. Lakshmana Rao

  • MES Losses Pruning Profitability · future · High confidence INR 6-7 crores
    And MES might stay where it is, but its losses will be pruned out completely. So which will be almost adding INR6 crores to INR7 crores to the overall bottom line by pruning down the losses which that division has been incurring.

    — J. Lakshmana Rao

Operating Expenses

  • Employee Expenses Growth Operating Expenses · annual · High confidence 10-12%
    Yes, Indian expenditure, you can take a factor of 10% to 12%, considering the annual increment and increase in headcount, maybe around 12% you can take.

    — J. Lakshmana Rao

  • Rental Cost Savings (Nashik Campus) Operating Expenses · per annum · High confidence INR 2-2.5 crores
    That will considerably save our rental costs, which are running almost INR2 crores to INR2.5 crores per annum.

    — J. Lakshmana Rao

What to watch in Q4 FY26

Beryl EBITDA Margin Improvement

within a year
Current 8-10%
Target 30-35%

Why it matters

Significant improvement in Beryl's profitability is a key synergy from the acquisition and will boost overall company margins.

Beryl has last year, 8% to 10% EBITDA. That EBITDA margin can shoot up to 30%, 35% within a year's time once half of their work is outsourced to our Indian office.

Risks & concerns

  • Low traction in automotive industry

    medium

    The automotive team size is being reduced from 160 to 60 due to 'rough weather' and 'low traction' globally, impacting the BIW division.

    Management acknowledged

  • Slowdown in US construction activity

    medium

    The first 6 months of the year saw uncertainty in the US, leading to project hold-ups, particularly for high-rise and industrial commercial builders, though activity is now picking up.

    Management acknowledged

  • Tariff uncertainty impacting Interarch business

    medium

    Uncertainty around tariffs previously halted the Interarch business, but clarity at 18% is expected to revive it, though the impact may not be in millions.

    Management acknowledged

Q&A highlights

6 direct
Impact of AI on engineering services business Direct
Al has no entry into engineering services. This engineering services require a lot of internal knowledge of detailing of fabrication, specifications and steel and many other inputs. So as of today, there is no entry of any Al operations anywhere in engineering services, at least as far as my knowledge goes.

Management clarifies that AI is not a threat to core engineering services due to the need for internal knowledge and specific inputs, though AI tools are used for repetitive tasks.

Asked by Kaustav from BMSPL Capital

Data center opportunity in Mechanical Engineering division Partial
Data centers, we have been very active in our civil engineering services. We provide a lot of fabrication support and designing and detailing services to fabricators who are building data centers across United States. And in fact, we have at least every month or at least every quarter, a couple of data centers new orders being received.

Analyst questions why mechanical opportunity hasn't been captured, and management clarifies their involvement is primarily in civil engineering services for data centers, with new orders coming in regularly.

Asked by Kaustav from BMSPL Capital

Total market opportunity for civil and mechanical services related to data centers Direct
And even if we capture 4 or 5 data centers a year, it will be about $2 million to $2.5 million top line growth, which is more than 15% of our top line. So all put together, probably about $2 million, $2.5 million from civil side and about $0.7 million to $1 million in mechanical side we'll be able to add to that. That is almost like 20%, 25% of the INR150 crores turnover what we are hovering around.

Management provides a quantified estimate of potential top line growth from data center related civil and mechanical opportunities, indicating a significant revenue addition.

Asked by Kaustav from BMSPL Capital

Vision for growth and profitability of the company Direct
We are looking at a 25%, 30% top line growth with the reduction of employee costs in the mechanical division. And the probable savings by transferring some of the work of Beryl to India and executing it in India at Indian rates could also benefit in the EBITDA margins. So the future looks really exciting.

Management outlines a clear growth strategy involving acquisitions, cost control, and leveraging acquired entities for margin improvement, targeting significant top line growth and EBITDA expansion.

Asked by Kaustav from BMSPL Capital

Impact of Claude tool on offshore work for Beryl and cost savings Direct
So that will be a great synergy where cost savings can go up to 30% to 40%. So, for example, Beryl has last year, 8% to 10% EBITDA. That EBITDA margin can shoot up to 30%, 35% within a year's time once half of their work is outsourced to our Indian office.

Management explains how outsourcing Beryl's design work to India will lead to substantial cost savings and a significant improvement in Beryl's EBITDA margins, demonstrating the synergy of the acquisition.

Asked by Madhur Rathi from Counter Cyclical Investments

Productivity per employee and revenue growth Partial
See, we are definitely dependent on the work on hand -- basically orders on hand. If you look at a year ago in the beginning of the new government taken over in U.S.A., there are a lot of uncertainties and the builders are on the edge, mainly the high-rise buildings and industrial commercial building builders. They are not going ahead with major projects or there was a considerable slowdown.

Management links productivity to order flow, acknowledging past slowdowns in the US construction market but noting a recent pick-up in civil project wins, indicating improving conditions for employee utilization.

Asked by Madhur Rathi from Counter Cyclical Investments

Status of tariff situation and Interarch business Direct
Now with clarity coming at 18%, I'm sure we will start exporting some buildings of Interarch and helping them erect in United States and providing them engineering services and stamping, which is the agreement. So it may not be running into millions for us, but certainly, it can even add a few hundreds of thousands of dollars to the bottom line.

Clarity on tariffs is expected to revive the Interarch business, which was previously on hold, potentially adding significant revenue, though not in the millions.

Asked by Kaustav from BMSPL Capital

Issuance of shares to Beryl CEO and rationale for not doing a buyback Direct
Mr. Leo Cannyn will be buying about $0.5 million worth of shares and the demat process is just getting completed. And then the shares may be issued in the next couple of months. So he is going to hold on them for a period of minimum 3 years. That's what his commitment. And that ensures that longevity of his services available to Mold-Tek. So that is one. And buyback is an idea we are not yet considered because we are keeping this cash and funds for further acquisitions or even constructing our own campus in Nashik...

Management confirms the share issuance to Beryl's CEO to ensure long-term commitment and explains that cash is being reserved for future acquisitions and the Nashik campus construction, rather than a buyback.

Asked by Madhur Rathi from Counter Cyclical Investments

3 min read 7 chapters

Detailed narrative

Q3 FY26 Performance Overview

Mold-Tek Technologies reported a robust Q3 FY26, with profits increasing 6x compared to Q3 FY25. The company also saw a 20.2% improvement in performance quarter-on-quarter. The newly acquired subsidiary, Beryl, contributed $137,000 (INR 1.25 crores) to the bottom line from its two months of operation in November and December, though this was reduced to INR 20 lakhs after accounting for acquisition-related write-offs.

Acquisition of Beryl & Integration Strategy

The acquisition of Beryl marks a strategic step, bringing 40 American employees and 15 years of experience in Florida. Beryl, which had a top line of $5.5 million last year, is expected to cross $6 million this year, adding 30% to Mold-Tek's top line. The integration involves outsourcing half of Beryl's design work to India, which is projected to boost Beryl's EBITDA margin from 8-10% to 30-35% within a year due to significant cost savings. Shares worth $0.5 million are also being issued to Beryl's CEO, Richard Leon, to ensure his long-term commitment.

Strategic Restructuring & Cost Control

The company is undergoing a strategic reduction of its automotive team size from 160 to 60 due to 'rough weather' and 'low traction' in the global automotive industry. The affected personnel are being retrained for poles, towers, and transmission lines, where demand is improving. This restructuring, expected to be completed by April 2026, aims to enhance cost control and efficiency. The MES division is also targeted to turn profitable, potentially adding INR 6-7 crores to the bottom line by pruning its losses.

Growth Drivers: Civil Engineering & Data Centers

Mold-Tek's civil engineering services, which account for 95-98% of its civil work, are a key growth driver. The company is actively involved in data center projects, receiving new orders every month or quarter. These projects are expected to contribute $2-2.5 million in top line growth from the civil side and $0.7-1 million from the mechanical side annually. Overall, civil engineering services are projected to grow at least 20% in the next financial year, driven by increased demand for substations, transmission lines, and poles related to data center construction.

Future Outlook & Financial Targets

Management projects a full-year FY26 revenue of INR 175-180 crores. For FY27, the company aims for a top line of INR 225-240 crores, combining standalone growth and Beryl's contribution. Over the next 3-5 years, Mold-Tek targets a 20-25% CAGR on the top line. The overall EBITDA margin is expected to reach 25%, with a minimum target of over 20%, driven by increased revenue, cost controls, and improved margins from Beryl.

Capital Allocation & Shareholding

The company is retaining its cash reserves for future acquisitions and the construction of its own campus in Nashik, which is expected to save INR 2-2.5 crores in annual rental costs. A share buyback is not currently being considered. The issuance of $0.5 million worth of shares to Beryl's CEO, Richard Leon, is underway, with a minimum 3-year lock-in period to ensure his continued service and commitment to Mold-Tek.

Industry Headwinds & Mitigation

The company acknowledges past uncertainties in the US construction market during the first half of the year, which led to project delays, but notes a recent pick-up in civil project wins. The automotive industry's 'rough patch' and 'low traction' are impacting the BIW division, leading to strategic downsizing. Clarity on tariffs (now at 18%) is expected to revive the Interarch business, which was previously on hold, potentially adding hundreds of thousands of dollars to the bottom line.

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