Ador Welding Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Ador Welding Ltd filed with BSE on 04 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Ador Welding reported Q4 revenue growth of approximately 3% and EBITDA of approximately INR38 crores, up 200 bps, with gross margin at 36% and PBT of approximately INR39 crores, excluding the Kuwait project recovery and exceptional items. For the full year, standalone revenue grew about 2% with gross margins at 38%, up about 250 bps, EBITDA margin at 12%, and PBT of approximately INR130 crores excluding the onerous Uran project cost. Management discussed the realignment of the Flares and Process Equipment division into the welding segment, a partnership with Miller for submerged arc welding products, and continued investment in automation, robotics and new product approvals.
Numbers mentioned
Sales: approximately INR1,135 crores (FY26)
p. 3
“we closed this year at approximately INR1,135 crores in sales”
Aditya Malkani, page 3 of the filed PDF · View the filing
Revenue growth: approximately 3% (Q4 FY26)
p. 3
“Revenue growth was approximately 3% for the year -- for Quarter 4, sorry and EBITDA clocked in at approximately INR38 crores, an increase of 200 bps.”
Aditya Malkani, page 3 of the filed PDF · View the filing
Gross margin: approximately 36% (Q4 FY26)
p. 3
“Gross margin was approximately 36% and the PBT was at approximately INR39 crores.”
Aditya Malkani, page 3 of the filed PDF · View the filing
Revenue growth: up about 2% (FY26 standalone)
p. 3
“For the year standalone, revenue is up about 2%, gross margins at 38%, up about 250 bps.”
Aditya Malkani, page 3 of the filed PDF · View the filing
EBITDA margin: 12% (FY26 standalone)
p. 3
“The EBITDA margin at 12%.”
Aditya Malkani, page 3 of the filed PDF · View the filing
Kuwait project recovery: INR14 crores (FY26)
p. 3
“that finally led to INR14 crores of recovery, and PBT of approximately INR130 crores excluding the onerous cost of the Uran project.”
Aditya Malkani, page 3 of the filed PDF · View the filing
Return on capital employed: approximately 23% (FY26)
p. 3
“Return on capital employed is approximately on the operational EBITDA at approximately 12%, and return on capital employed is approximately 23%.”
Aditya Malkani, page 3 of the filed PDF · View the filing
Income tax demand: INR14-odd crores
p. 12
“So firstly, I think there has been a recent income tax demand of INR14-odd crores and I wanted an update regarding that, what does it pertain to?”
Ronit Kapoor, page 12 of the filed PDF · View the filing
ONGC gain in process equipment: INR3 crores (Q4 FY26)
p. 7
“The INR3 crores that you see in PE is basically a gain that has come because there was one of the reorders that came in from ONGC.”
K. Suryanarayan, page 7 of the filed PDF · View the filing
Full year hit from ONGC matter: about INR25 crores (FY26)
p. 7
“So full year the hit on that is about INR25 crores.”
K. Suryanarayan, page 7 of the filed PDF · View the filing
Capacity utilization: approximately 70%
p. 9
“but I would say a fair estimate is anywhere in the region of approximately 70%.”
Aditya Malkani, page 9 of the filed PDF · View the filing
Shipbuilding approvals coverage: approximately 75% to 80%
p. 10
“We have most of the approvals in place for I would say approximately 75% to 80% of it.”
Aditya Malkani, page 10 of the filed PDF · View the filing
Market share: approximately 17%-18%
p. 19
“I think we believe ourselves to have anywhere in the region of approximately 17%-18% plus or minus a few percent in terms of market share.”
Aditya Malkani, page 19 of the filed PDF · View the filing
Uran project completion: about 96%-97%
p. 16
“As far as the Uran project, it is at about 96%-97% level because of this gas issue and this and that there are a few things that have led to a little bit of a delay to get closed up in terms of final commissioning.”
Aditya Malkani, page 16 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — 100, 200 basis points · coming periods
stated as an aspiration by Aditya Malkani
p. 5
“So I think on a similar trajectory, you can see that happen, for another 100, 200 basis points going forward over the coming periods.”
Aditya Malkani, page 5 of the filed PDF · View the filing
Capex — approximately INR30 crores-INR35 crores · FY27
stated firmly by Aditya Malkani
p. 12
“Our capex is generally in the region of approximately INR30 crores-INR35 crores for the coming year.”
Aditya Malkani, page 12 of the filed PDF · View the filing
Revenue target — pass INR2,000 crores · FY29
stated as an aspiration by Saloni
p. 14
“we mentioned our target of turnover to pass INR2,000 crores by FY '29.”
Saloni, page 14 of the filed PDF · View the filing
Earnings growth — triple our earnings
stated as an aspiration by Aditya Malkani
p. 14
“the main principle that drives that is to triple our earnings over that much period of time.”
Aditya Malkani, page 14 of the filed PDF · View the filing
Capex for doubling volume — INR100 crores to INR150 crores · five to seven years
stated conditionally by Aditya Malkani
p. 19
“I will say anywhere in the region of INR100 crores to INR150 crores.”
Aditya Malkani, page 19 of the filed PDF · View the filing
Process equipment segment — break even
stated as an aspiration by Aditya Malkani
p. 6
“Yes, hopefully, yes.”
Aditya Malkani, page 6 of the filed PDF · View the filing
Welding revenue — INR1,500 to INR1,600 crores · FY28
stated conditionally by Aditya Malkani
p. 10
“Look, that would indicate somewhere in the region of approximately an 18% to 20% growth rate year-on-year for two years.”
Aditya Malkani, page 10 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Volume growth broadly tracked revenue growth, with some product lines outperforming and others slower amid inflation.
Answered by Aditya Malkani
Asked by Rajat Joshi: Breakdown of FY26 performance into volume and value
p. 4
“No, just to give you an overview, the volume growth is pretty much in line with the revenue growth, a little bit up or down within that same thing, within a reasonable level.”
Aditya Malkani, page 4 of the filed PDF · View the filing
The division has been merged into welding and restructured to focus on smaller product lines rather than large projects.
Answered by Aditya Malkani
Asked by Rajat Joshi: Plans for the Flares business given continued losses
p. 6
“We do not see ourselves being successful in large-scale projects, which means the kind of business we want to go after is basically a product line type of business where we have orders and we can see profitability in those orders.”
Aditya Malkani, page 6 of the filed PDF · View the filing
Management said no, as decisions taken from March 31 onward would prevent further losses.
Answered by Aditya Malkani
Asked by Pritesh: Does the process equipment division continue to lose money going forward
p. 8
“No, it does not, because effective 31st March, I have taken many decisions that will not allow that to happen coming into this quarter.”
Aditya Malkani, page 8 of the filed PDF · View the filing
Demand in export markets has remained good and EBITDA margin of around 12% is viewed as a base for further improvement.
Answered by Aditya Malkani
Asked by Satish Doshi: Outlook for exports amid Middle East situation and sustainable EBITDA margin
p. 9
“But we have seen in terms of demand, no issue, and we expect demand to be fairly good in those markets going forward unless something very, very adverse happens much beyond our control.”
Aditya Malkani, page 9 of the filed PDF · View the filing
Management said it is feasible but depends on macroeconomic support, declining to commit to a number.
Answered by Aditya Malkani
Asked by Dhawan: Is INR1,500-1,600 crores welding revenue achievable by FY28
p. 10
“I would love to be able to do that and I think it is definitely feasible, but the ground economics and the ground macroeconomy has to support that.”
Aditya Malkani, page 10 of the filed PDF · View the filing
Management said it is primarily at the EBITDA level and expected over the next few quarters, contingent on no severe supply chain shocks.
Answered by Aditya Malkani
Asked by Nishita Sankalesha: Is the 100 bps margin improvement on gross margin or EBITDA margin, and by when
p. 11
“We are working towards it and whatever little we can do as fast as possible, we will do it. But surely over the next few quarters, you will see EBITDA margin improvements happening.”
Aditya Malkani, page 11 of the filed PDF · View the filing
The company filed an appeal and does not see merit in the department's position.
Answered by Surya Kant
Asked by Ronit Kapoor: Update on income tax demand of INR14-odd crores
p. 13
“So income tax matter, we have filed our appeal last week only and we don't see any merit, means that the department will succeed in that.”
Surya Kant, page 13 of the filed PDF · View the filing
There was a dispatch effect in the first three-four weeks of March, but most of the pent-up demand has since been cleared.
Answered by Aditya Malkani
Asked by Ronit Kapoor: Were dispatches affected during the quarter due to Middle East tensions
p. 14
“During March quarter, there was a little bit of a dispatch effect, of course, during the first three four weeks.”
Aditya Malkani, page 14 of the filed PDF · View the filing
Management said they follow the underlying principle of tripling earnings but did not commit to the specific revenue figure given macro constraints.
Answered by Aditya Malkani
Asked by Saloni: Is the company still targeting turnover to pass INR2,000 crores by FY29
p. 14
“We are still following the principle of doing that, but the main principle that drives that is to triple our earnings over that much period of time.”
Aditya Malkani, page 14 of the filed PDF · View the filing
Management said the market understands the company well and has been waiting to see closure on legacy issues.
Answered by Aditya Malkani
Asked by Vikram: Is market cap reflecting the company's progress
p. 20
“No, I think in all fairness, the market understands us quite well.”
Aditya Malkani, page 20 of the filed PDF · View the filing
Risks flagged
Inflationary effects on input costs and demand
p. 4
“There is obviously, as you know, in the last three or four months been a massive inflationary effect that has happened due to the global circumstances and macro circumstances.”
Aditya Malkani, page 4 of the filed PDF · View the filing
Supply chain shocks affecting forecasting and planning
p. 6
“But supply chain shocks are just the way things are at the moment, you know, lack of clarity for many planning purposes.”
Aditya Malkani, page 6 of the filed PDF · View the filing
Softness in Saudi export market due to structural issues
p. 7
“We did notice one or two pockets where we are quite reliant on, where the markets were a little bit soft due to their own structural blah blah blah issues internally, for example in Saudi and stuff like that, a little bit softer.”
Aditya Malkani, page 7 of the filed PDF · View the filing
Dispatch disruption in Middle East due to geopolitical tensions
p. 14
“But we have seen that pent-up being cleaned up most of it.”
Aditya Malkani, page 14 of the filed PDF · View the filing
Delay in Uran project final commissioning due to gas issue
p. 16
“As far as the Uran project, it is at about 96%-97% level because of this gas issue and this and that there are a few things that have led to a little bit of a delay to get closed up in terms of final commissioning.”
Aditya Malkani, page 16 of the filed PDF · View the filing
Customer caution due to inflationary impacts
p. 11
“It is just that you have inflationary impacts that you are dealing with at the moment, so you will see customers be a little bit cautious in that regard.”
Aditya Malkani, page 11 of the filed PDF · View the filing
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