ISGEC Heavy Engineering Ltd (NSE:ISGEC)

Q1 2027 Isgec Heavy Engineering Ltd Earnings Call Transcript

Aug 12, 2026 / 10:30 AM GMT

Release Date Price: ₹746.3 (-7.52%)

Transcript

Key Points

Positve

ISGEC Heavy Engineering Ltd (BOM:533033) reported strong Q1 FY27 results with total income up 51% year-on-year, driven by improved order execution and dispatch of a large US order.
Export revenue increased significantly to Rs. 385 crores (25% of total revenue), up from 15% in Q1 FY26, with a healthy pipeline of export inquiries from Africa, Latin America, and Southeast Asia.
The company's net fund position improved by Rs. 140 crores during the quarter, with net borrowings down to Rs. 240 crores from Rs. 381 crores as of March 31, 2026.
Manufacturing EBIT margins remained within the guided 12%-13% range, while the projects business EBIT margin improved to 5.25%, better than recent years.
The company is investing Rs. 502 crores in capacity expansion across multiple facilities, which is expected to add approximately Rs. 1,200 crores in annual revenue once fully complete, with some new production facilities coming online this year.
Order booking remains strong with Rs. 2,323 crores booked in Q1, and the company has already booked Rs. 1,200 crores in the current quarter, indicating a robust order pipeline.
The weaker Indian rupee is expected to support improved realizations on future export orders, enhancing competitiveness.

Negative

The consolidated profit before tax was significantly impacted by a loss of Rs. 83 crores from the ethanol plant in the Philippines, which is running at only 65%-70% capacity utilization.
Geopolitical tensions have led to increased export and import logistics costs, longer transit times, and higher freight rates, which are having a small adverse effect on profitability.
The company provided a conservative FY27 revenue growth guidance of 10%-12%, which some analysts believe may be too low given the strong Q1 performance and order book.
Saraswati Sugar Mills experienced lower cane availability last year, resulting in lower production and revenue, which is expected to continue impacting consolidated results.
The ethanol plant in the Philippines is expected to incur further losses in Q2, albeit substantially lower, and will not reach 90% capacity utilization until December 2026.
Commodity prices, particularly steel, copper, aluminum, and nickel, remain slightly above pre-war levels, adding cost pressures despite some stabilization.
The company's other income declined due to lower forex fluctuations and interest income, while interest costs increased, partially offsetting strong operational growth.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ISGE.NS - Isgec Heavy Engineering Ltd
Q1 2027 Isgec Heavy Engineering Ltd Earnings Call
Aug 12, 2026 / 10:30AM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day and welcome to ISJEC Heavy Engineering Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch tone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Mahesh Patil from ICICI Securities.

Thank you and over to you sir.

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Unidentified_2 [2]
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