ISGEC Heavy Engineering Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript ISGEC Heavy Engineering Ltd filed with BSE on 18 Aug 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
Isgec Heavy Engineering reported standalone total income up 51% year-on-year to Rs 1,585 crores for Q1 FY27, with PBT up 10% to Rs 123 crores, while consolidated total income rose 45% to Rs 1,993 crores. Management attributed the growth to improved order execution in Industrial Projects and a large dispatch to a U.S. customer in the manufacturing segment, while the Philippines ethanol plant recorded an Rs 83 crore loss due to depreciation, interest and forex fluctuations. Standalone order book stood at Rs 7,727 crores and consolidated orders in hand were Rs 8,958 crores as of June 30, 2026.
Numbers mentioned
Total income (standalone): INR 1,585 crores (Q1 FY27)
p. 3
“The total income for the quarter is INR 1,585 crores.”
Aditya Puri, page 3 of the filed PDF · View the filing
Total income growth (standalone): 51% (Q1 FY27 YoY)
p. 3
“We delivered strong growth this quarter with the total income up 51% and PBT up 10% year-on-year.”
Aditya Puri, page 3 of the filed PDF · View the filing
Export revenue: INR 385 crores (Q1 FY27)
p. 3
“Export revenue during the quarter is INR 385 crores, about 25% of the total revenue, up from 15% in Q1 FY26.”
Aditya Puri, page 3 of the filed PDF · View the filing
EBIT: INR 157 crores (Q1 FY27)
p. 3
“The EBIT has also grown by 15% to INR 157 crores.”
Aditya Puri, page 3 of the filed PDF · View the filing
Profit before tax (standalone): INR 123 crores (Q1 FY27)
p. 3
“The profit before tax of INR 123 crores is 10% higher than INR 112 crores for the quarter ended June 2025, which reflects higher operational profit.”
Aditya Puri, page 3 of the filed PDF · View the filing
Manufacturing EBIT margin: 12% (Q1 FY27)
p. 3
“On the margin front, the manufacturing EBIT margins continued to be 12% and within the 12% to 13% range guided by us.”
Aditya Puri, page 3 of the filed PDF · View the filing
Projects business EBIT margin: 5.25% (Q1 FY27)
p. 3
“And the EBIT margin for the projects business is 5.25%, better than it has been for the last few years.”
Aditya Puri, page 3 of the filed PDF · View the filing
Order booking (standalone): INR 2,323 crores (Q1 FY27)
p. 3
“Total order booking for the first quarter is INR 2,323 crores and the total standalone orders in hand as on June 30, 2026, are very good at INR 7,727 crores.”
Aditya Puri, page 3 of the filed PDF · View the filing
Consolidated orders in hand: INR 8,958 crores (as on June 30, 2026)
p. 4
“The consolidated orders in hand as on 30th June 2026 amounts to INR 8,958 crores.”
Aditya Puri, page 4 of the filed PDF · View the filing
Consolidated total income: INR 1,993 crores (Q1 FY27)
p. 4
“The total income for the quarter ended June 2026 is INR 1,993 crores, which is about 45% higher than the INR 1,374 crores for the quarter ended June 2025.”
Aditya Puri, page 4 of the filed PDF · View the filing
Consolidated EBITDA: INR 137 crores (Q1 FY27)
p. 4
“The consolidated EBITDA for the quarter is INR 137 crores, almost same as the quarter ended June 2025.”
Aditya Puri, page 4 of the filed PDF · View the filing
Consolidated PBT: INR 53 crores (Q1 FY27)
p. 4
“The consolidated profit before tax of INR 53 crores is 18% higher than the INR 45 crores restated for the quarter ended June 2025.”
Aditya Puri, page 4 of the filed PDF · View the filing
Philippines ethanol plant loss: INR 83 crores (Q1 FY27)
p. 5
“During the quarter, the segment incurred a loss of INR 83 crores, mainly INR 37 crores attributable to depreciation, INR 20 crores attributable to interest and about INR 10 crores attributable to Forex fluctuations.”
Aditya Puri, page 5 of the filed PDF · View the filing
Consolidated net borrowings: INR 304 crores (as on 30 June 2026)
p. 5
“Net borrowing has decreased to INR 304 crores as on 30 June 2026 compared to INR 476 crores as on 31 March 2026 and INR 832 crores on 30 June 2025.”
Aditya Puri, page 5 of the filed PDF · View the filing
Standalone net borrowings: INR 240 crores (as on 30 June 2026)
p. 4
“The company's net fund position has improved by INR 140 crores during the quarter, and net borrowings are substantially down to INR 240 crores compared to INR 381 crores as on 31st March 2026 and INR 408 crores as on 30th June 2025.”
Aditya Puri, page 4 of the filed PDF · View the filing
Isgec Hitachi Zosen orders in hand: INR 889 crores (as on June 30, 2026)
p. 3
“Isgec Hitachi Zosen is doing well with higher revenues and good orders in hand of INR 889 crores.”
Aditya Puri, page 3 of the filed PDF · View the filing
Ethanol plant capacity utilization: 65%-70% (Q1 FY27)
p. 4
“The plant has been running at about 65%-70% capacity utilization and ethanol sales are going smoothly.”
Aditya Puri, page 4 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.
Standalone revenue growth — 10% to 12% · FY2027
stated firmly by Aditya Puri
p. 5
“Looking ahead on a standalone basis, we expect FY 2027 revenue to increase by 10% to 12%.”
Aditya Puri, page 5 of the filed PDF · View the filing
Manufacturing EBIT margin — 12% to 13% · FY2027
stated firmly by Aditya Puri
p. 5
“Margins on the manufacturing business should continue in the range of 12% to 13% and in the projects business should improve slightly within the 5% to 6% range.”
Aditya Puri, page 5 of the filed PDF · View the filing
Manufacturing capacity expansion revenue potential — INR 1,200 crores per year · from 2028-29
stated as an aspiration by Kishore Chatnani
p. 8
“So it will largely start reflecting from 2028-29, we will get the full benefit of these investments.”
Kishore Chatnani, page 8 of the filed PDF · View the filing
Ethanol plant capacity utilization — 90% · December
stated conditionally by Kishore Chatnani
p. 9
“We expect to reach at 90% kind of capacity utilization in December.”
Kishore Chatnani, page 9 of the filed PDF · View the filing
Isgec Hitachi Zosen revenue growth — 10% better than last year · FY2027
stated firmly by Kishore Chatnani
p. 5
“Isgec Hitachi Zosen is doing better than last year. It will do about 10% better than last year.”
Kishore Chatnani, page 5 of the filed PDF · View the filing
Isgec Titan revenue — INR 150 crores · FY2027
stated firmly by Kishore Chatnani
p. 16
“But for FY27, we are expecting it to do INR 150 crores.”
Kishore Chatnani, page 16 of the filed PDF · View the filing
O&M/services business revenue — double the existing base · 2 years
stated as an aspiration by Aditya Puri
p. 16
“And we hope that in 2 years' time, I can't give you the absolute figures, but to double the existing O&M base that we have.”
Aditya Puri, page 16 of the filed PDF · View the filing
Ethanol plant Q2 loss — Q2 FY27
stated firmly by Kishore Chatnani
p. 9
“During the current quarter, we don't expect that level of loss. There will still be a loss, but it should be substantially lesser.”
Kishore Chatnani, page 9 of the filed PDF · View the filing
Philippines depreciation — INR 95 crores or so · FY2026-27
stated firmly by Kishore Chatnani
p. 14
“For the financial year 2026-27, the total depreciation we expect to be about INR 95 crores or so.”
Kishore Chatnani, page 14 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.
Management said a good portion of order execution will carry into the next financial year, supporting the 10-12% guidance.
Answered by Aditya Puri
Asked by Rehan: Why is the growth guidance conservative given strong order book and execution?
p. 6
“So the order book, I agree, has improved substantially. But a good part of the order executions is going to carry forward to the next financial year.”
Aditya Puri, page 6 of the filed PDF · View the filing
Management said it prefers to give conservative guidance and beat it rather than promise more and fall short.
Answered by Kishore Chatnani
Asked by Manish Goyal: Given strong Q1 growth, why maintain conservative 10-12% full-year guidance?
p. 7
“Well, Manishji, the way you are describing, we would also expect it to be slightly higher, but it's better to give a conservative guidance and meet it rather than give an aggressive guidance and be uncertain about it.”
Kishore Chatnani, page 7 of the filed PDF · View the filing
Management said the Board-approved capex for manufacturing capacity is Rs 502 crores, with full benefit expected from 2028-29.
Answered by Kishore Chatnani
Asked by Manish Goyal: What is the total capex plan and expected revenue potential from expansion?
p. 7
“For the manufacturing capacity additions, the total investment approved by the Board is INR 502 crores.”
Kishore Chatnani, page 7 of the filed PDF · View the filing
Management attributed the loss mainly to depreciation and interest costs, noting the plant is still ramping capacity utilization.
Answered by Kishore Chatnani
Asked by Manish Goyal: Why did the Cavite Biofuel plant post a large loss despite a full quarter of operations?
p. 8
“The plant has crushed about 84,000 tonnes of cane during the season. Up to now, it has used about 20,000 tonnes of molasses. It has produced about 10.5 million liters of ethanol and sold 8 million plus.”
Kishore Chatnani, page 8 of the filed PDF · View the filing
Management said such options are always considered but noted no buyer for a shut asset and expressed hope the plant will become profitable.
Answered by Kishore Chatnani
Asked by Sandeep Baig: Given the ongoing losses in the Philippines ethanol business, would it be better to shut or sell the asset?
p. 14
“If you say shut down and sell, nobody buys a shut asset. We have enough investment there.”
Kishore Chatnani, page 14 of the filed PDF · View the filing
Management gave execution timelines ranging from 4-6 months for manufactured items to 14 months-2.5 years for project business.
Answered by Kishore Chatnani
Asked by Shubham Borade: What is the execution timeline for the current order book?
p. 13
“In the manufactured items, it can be 4- 6 months to about 10-12 months.”
Kishore Chatnani, page 13 of the filed PDF · View the filing
Management clarified that work-in-progress will increase but billing will only reflect in the following year's Q1 due to the manufacturing cycle time.
Answered by Aditya Puri
Asked by Devam: Will the new machine building capacity add revenue this financial year?
p. 11
“The cycle time is about 8 to 10 months of what's going to be manufactured in these shops. So you can expect a jump in Q1 of next financial year.”
Aditya Puri, page 11 of the filed PDF · View the filing
Risks flagged
Increased export and import logistics costs and longer transit times due to geopolitical tensions
p. 4
“Export and import logistics costs have increased, and transit times have also lengthened.”
Aditya Puri, page 4 of the filed PDF · View the filing
Rising material costs due to war affecting profitability
p. 4
“The cost of some materials which have risen due to war are having a small adverse effect on profitability.”
Aditya Puri, page 4 of the filed PDF · View the filing
Shipping and logistics delays for exports and imports
p. 4
“Shipping and logistics for exports and imports are experiencing delays, reduced availability of ships and containers, sharply elevated freight rates and opportunistic pricing by shipping companies.”
Aditya Puri, page 4 of the filed PDF · View the filing
Losses at Cavite Biofuel Philippines ethanol plant
p. 4
“The key reason for the reduction in the consolidated profit before tax compared to the stand-alone profit before tax is the loss from the ethanol plant in the Philippines.”
Aditya Puri, page 4 of the filed PDF · View the filing
Lower cane availability affecting Saraswati Sugar Mills production
p. 4
“Saraswati Sugar Mills had lower cane availability last year, resulting in lower production.”
Aditya Puri, page 4 of the filed PDF · View the filing
Operational problems encountered with cane and molasses feedstocks at the Philippines plant
p. 9
“So in a sense that we did encounter problems with the 2 different feedstocks and to a certain extent or to a large extent, we have solutions for that, but we did encounter those problems operationally.”
Aditya Puri, page 9 of the filed PDF · View the filing
Export logistics difficulties including fewer ships and higher freight rates
p. 10
“There are less number of ships available, container freight rates are up, number of sailings are less and of course, these orders that we are booking, they need to be executed over a period of 2 years or so.”
Kishore Chatnani, page 10 of the filed PDF · View the filing
Uncertainty over how the war situation will normalize
p. 10
“So while the next 3-4 months continue to look challenging, one really doesn't know what will happen to the war when things normalize.”
Kishore Chatnani, page 10 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.