ISGEC Heavy Engineering Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript ISGEC Heavy Engineering Ltd filed with BSE on 03 Jun 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 Q4 standalone revenue growth of 16% and PBT growth of 48% year-on-year, while full year FY26 standalone revenue grew 4.2% to Rs 5,229 crores, below the earlier 7%-8% guidance. Management explained that consolidated PAT fell about 25% due to higher depreciation linked to the reclassification of the Philippines ethanol business from assets held for sale to continuing operations. Management also outlined an FY27 standalone revenue growth expectation of 10% to 12%, supported by an opening order book of about Rs 7,000 crores and new orders of Rs 1,400 crores booked in the first two months of the quarter.
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Numbers mentioned
Standalone revenue growth: 16% (Q4 FY26)
p. 3
“Q4 standalone revenue grew 16% and PBT grew 48% year-on-year.”
Aditya Puri, page 3 of the filed PDF · View the filing
Standalone revenue: INR5,229 crores (FY26)
p. 3
“On a standalone basis, FY26 revenue grew by 4.2% to INR5,229 crores.”
Aditya Puri, page 3 of the filed PDF · View the filing
Standalone PBT: INR455 crores (FY26)
p. 3
“Standalone PBT of INR455 crores grew 17%.”
Aditya Puri, page 3 of the filed PDF · View the filing
Underlying operational PBT: approximately INR375 crores (FY26)
p. 3
“Adjusting for these items, the underlying operational PBT was approximately INR375 crores, broadly in line with the prior year on an operational basis.”
Aditya Puri, page 3 of the filed PDF · View the filing
Manufacturing EBIT margin: 12.46% (FY26)
p. 4
“On the margin front, manufacturing EBIT margins for the financial year are 12.46% within the 12% - 13% range we have guided for three consecutive years.”
Aditya Puri, page 4 of the filed PDF · View the filing
Project business EBIT margin: 4.58% (FY26)
p. 4
“The project business' EBIT margin for the financial year is 4.58%.”
Aditya Puri, page 4 of the filed PDF · View the filing
Export revenue: INR1,169 crores (FY26)
p. 4
“Export revenue during FY26 has increased to INR1,169 crores, which is about 22% of the total revenue, up from INR532 crores in the previous year.”
Aditya Puri, page 4 of the filed PDF · View the filing
Dividend per share: INR6 (FY26)
p. 4
“The dividend for the year is INR6 per share, up 20% from last year, reflecting our confidence in the strength of the standalone business.”
Aditya Puri, page 4 of the filed PDF · View the filing
Consolidated EBITDA: INR671 crores (FY26)
p. 4
“Consolidated EBITDA is INR671 crores, about 19% higher than last year's INR566 crores.”
Aditya Puri, page 4 of the filed PDF · View the filing
Consolidated PAT: INR154 crores (FY26)
p. 4
“Consolidated PAT for FY26 is INR154 crores, about 25% lower than last year's INR204 crores.”
Aditya Puri, page 4 of the filed PDF · View the filing
Consolidated net borrowings: INR476 crores (as on 31st March 2026)
p. 4
“Net borrowings as on 31st March 2026 are INR476 crores compared to INR836 crores last year.”
Aditya Puri, page 4 of the filed PDF · View the filing
Capital expenditure: INR153 crores (FY26)
p. 5
“Capital expenditure during the year is INR153 crores.”
Aditya Puri, page 5 of the filed PDF · View the filing
Opening order book: about INR7,000 crores (FY27)
p. 5
“The opening order book for the year is about INR7,000 crores, after excluding 2 orders worth about INR550 crores that were cancelled during the year.”
Aditya Puri, page 5 of the filed PDF · View the filing
New orders booked: INR1,400 crores (first 2 months of Q1 FY27)
p. 5
“In the first 2 months of the current quarter, we have booked new orders totaling INR1,400 crores.”
Aditya Puri, page 5 of the filed PDF · View the filing
Isgec Hitachi Zosen order book: INR763 crores (as on 31st March 2026)
p. 6
“Isgec Hitachi Zosen, the orders in hand as on 31st March 2026, are INR763 crores.”
Kishore Chatnani, page 6 of the filed PDF · View the filing
Isgec Hitachi Zosen total income: INR672 crores (FY26)
p. 6
“In terms of the revenue and margins, revenue and PBT of Isgec Hitachi Zosen for the full year, they had a Total Income is INR672 crores.”
Kishore Chatnani, page 6 of the filed PDF · View the filing
Isgec Hitachi Zosen PBT: INR103 crores (FY26)
p. 7
“And the Profit before tax is INR103 crores.”
Kishore Chatnani, page 7 of the filed PDF · View the filing
Cavite Biofuel profit/loss for the year: INR295 crores (FY26)
p. 9
“Now, if you look at the profit or loss for the full year, as you can see, it's reported as INR295 crores.”
Kishore Chatnani, page 9 of the filed PDF · View the filing
Cash and cash equivalents: INR241 crores (as of 31st March 2026)
p. 9
“But as of 31st of March 2026, there is INR241 crores of”
Kishore Chatnani, page 9 of the filed PDF · View the filing
FGD retention money realized: more than INR200 crores
p. 9
“So more than INR200 crores has actually been realized.”
Kishore Chatnani, page 9 of the filed PDF · View the filing
FGD retention money remaining: INR165 crores
p. 10
“What remains out of those FGD projects is, INR165 crores, which is still remaining.”
Kishore Chatnani, page 10 of the filed PDF · View the filing
Export order book: about INR1,450 crores (as on 31st March 2026)
p. 7
“I mean our export order book is also about INR1,450 crores as on 31st March 2026.”
Kishore Chatnani, page 7 of the filed PDF · View the filing
Ethanol sold: 4.35 million liters (April to May)
p. 12
“So we have already sold between April and May, 4.35 million liters of ethanol.”
Kishore Chatnani, page 12 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% · FY27
stated firmly by Aditya Puri
p. 5
“Looking ahead, on a standalone basis, we expect FY27 revenue to increase by 10% to 12%.”
Aditya Puri, page 5 of the filed PDF · View the filing
Manufacturing EBIT margin — 12% to 13% · FY27
stated conditionally by Kishore Chatnani
p. 5
“So we are reasonably confident that 12% to 13% is going to be maintained.”
Kishore Chatnani, page 5 of the filed PDF · View the filing
Projects business EBIT margin — closer to 5.5% · FY27
stated conditionally by Kishore Chatnani
p. 6
“We should be closer to 5.5% for FY27.”
Kishore Chatnani, page 6 of the filed PDF · View the filing
Project business revenue growth — 3%, 4% · FY27
stated conditionally by Kishore Chatnani
p. 5
“And there will be some growth, maybe 3%, 4% for the project business, as well.”
Kishore Chatnani, page 5 of the filed PDF · View the filing
Export revenue — FY27
stated as an aspiration by Kishore Chatnani
p. 7
“The export revenue of this INR1,100 crores, INR1,200 crores, I'm sure it's going to be a little more than that during the current year.”
Kishore Chatnani, page 7 of the filed PDF · View the filing
Isgec Hitachi Zosen revenue — closer to INR700 crores · FY27
stated as an aspiration by Kishore Chatnani
p. 8
“We are expected to do slightly better than this. So we are hoping that revenue could be closer to INR700 crores.”
Kishore Chatnani, page 8 of the filed PDF · View the filing
Isgec Hitachi Zosen profit — range of INR100 crores plus · FY27
stated as an aspiration by Kishore Chatnani
p. 8
“And the profit should be in the range of INR100 crores plus.”
Kishore Chatnani, page 8 of the filed PDF · View the filing
Cavite Biofuel plant capacity utilization — close to 85% - 90% · rest of the year
stated conditionally by Kishore Chatnani
p. 9
“and we are expecting the capacity to be running at close to 85% - 90% for the rest of the year, except for maybe 1 - 1.5 months when the rains are really excessive.”
Kishore Chatnani, page 9 of the filed PDF · View the filing
Cavite Biofuel depreciation — around INR150 crores · FY27
stated firmly by Kishore Chatnani
p. 9
“Next year, we expect it is going to be around INR150 crores.”
Kishore Chatnani, page 9 of the filed PDF · View the filing
Philippines plant sale — within the next 1 or 2 years
stated as an aspiration by Kishore Chatnani
p. 12
“While we do expect that it can happen within the next 1 or 2 years that you mentioned, but the accounting requires us to run it as a continuing operation.”
Kishore Chatnani, page 12 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.
Most growth comes from manufacturing, with modest growth from projects.
Answered by Kishore Chatnani
Asked by Digant Haria: How is the 10-12% guidance split between projects and products divisions?
p. 5
“So the major increase is going to come from the manufacturing segment.”
Kishore Chatnani, page 5 of the filed PDF · View the filing
Management expects to maintain 12-13% manufacturing margins via hedging and contingencies, with improving project margins.
Answered by Kishore Chatnani
Asked by Digant Haria: Are margins at risk from raw material volatility and supply chain disruption?
p. 6
“So in the manufacturing business, today, we are confident on 12% to 13%.”
Kishore Chatnani, page 6 of the filed PDF · View the filing
Management said Isgec has a play in part of the value chain and has received some orders for related equipment.
Answered by Aditya Puri
Asked by Digant Haria: Does Isgec have plays in coal gasification and polysilicon-to-wafer solar technologies?
p. 6
“We have got orders for equipment which are used in these processes or these new technologies.”
Aditya Puri, page 6 of the filed PDF · View the filing
Management attributed the variation to which orders were dispatched in the quarter, not underlying cost pressure.
Answered by Kishore Chatnani
Asked by Kaushik Doshi: Was Q4 manufacturing margin moderation due to project mix or cost pressures?
p. 6
“No, it's a question of which orders actually got dispatched.”
Kishore Chatnani, page 6 of the filed PDF · View the filing
Management said it reflects both existing order execution and market share gains, with new markets in Southeast Asia.
Answered by Aditya Puri
Asked by Kaushik Doshi: Is the jump in export revenue share from existing order execution or market share gains?
p. 6
“So the billing is out of the existing orders and new orders. So we are increasing our market share.”
Aditya Puri, page 6 of the filed PDF · View the filing
Management explained that dispatches were delayed due to government allocation timing, so revenue recognition was minimal despite production.
Answered by Kishore Chatnani
Asked by Manish Goyal: What explains the Philippines Cavite Biofuel losses in Q4 despite peak season?
p. 8
“So while we were making the first dispatches started actually, we were supposed to dispatch from 1st of April, but one of the customers actually picked it up from us from the 25th of March.”
Kishore Chatnani, page 8 of the filed PDF · View the filing
Management detailed three components of other income including interest income, government grants, and forex fluctuations related to subsidiaries.
Answered by Kishore Chatnani
Asked by Manish Goyal: What is the nature of the forex fluctuation and other income items in consolidated results?
p. 8
“So the foreign exchange fluctuation is INR103 crores, about INR50 crores of that should have been or could have been -- I mean, accounting standards require us to classify where they are.”
Kishore Chatnani, page 8 of the filed PDF · View the filing
Management confirmed more than Rs 200 crores realized with Rs 165 crores remaining, expected in June and August.
Answered by Kishore Chatnani
Asked by Shubham: How much of the expected FGD retention money has been realized?
p. 10
“We are expecting to collect maybe one-third of that in June and the rest by August.”
Kishore Chatnani, page 10 of the filed PDF · View the filing
Management explained the negative net worth stems from intra-group shareholder loans rather than external borrowings, posing no group-level risk.
Answered by Kishore Chatnani
Asked by Ahmed: Why do Isgec Investment Pte and Bioeq Energy Holding show capital deficiency and losses?
p. 10
“Now this is all part of the group, whatever borrowings it has are given by us. You can think of it as shareholders loans.”
Kishore Chatnani, page 10 of the filed PDF · View the filing
Management said they use confirmed letters of credit denominated in dollars or euros with forward covers to hedge currency risk.
Answered by Aditya Puri
Asked by Digant Haria: How does Isgec manage currency and receivables risk in export markets like Africa?
p. 11
“So we normally work with confirmed letters of credit. And these are denominated in dollars or euros, and we take forward covers against them.”
Aditya Puri, page 11 of the filed PDF · View the filing
Management said the plant is cash profitable but did not provide a specific EBITDA figure yet.
Answered by Kishore Chatnani
Asked by Mahendra Jain: What EBITDA or return is expected from the Philippines ethanol business going forward?
p. 12
“The profitability, as you said, EBITDA, etc., so I did mention that capacity is ramping up has also happened to about 65%, 70%, and it's going to ramp up further.”
Kishore Chatnani, page 12 of the filed PDF · View the filing
Risks flagged
Increases in input costs including steel forgings, castings, chemicals and imported materials
p. 5
“However, we are seeing increases in several input costs, including steel forgings, castings, chemicals and certain imported materials.”
Aditya Puri, page 5 of the filed PDF · View the filing
Gas shortages raising fuel costs
p. 5
“Gas shortages have raised fuel costs; however, there has been no disruption to manufacturing operations.”
Aditya Puri, page 5 of the filed PDF · View the filing
Increased export and import logistics costs and lengthened transit times
p. 5
“Export and import logistics have increased and transit times have also lengthened.”
Aditya Puri, page 5 of the filed PDF · View the filing
Uncertain international business scenario affecting sale of Philippines business
p. 4
“Given the uncertain international business scenario, it is difficult to estimate when the business can be sold.”
Aditya Puri, page 4 of the filed PDF · View the filing
War-related uncertainty affecting projects business situation
p. 6
“We know what's happened up to now, and we really don't know when the war will end and when the situation will go back to what they were pre-war.”
Kishore Chatnani, page 6 of the filed PDF · View the filing
Fluid international situation affecting timeline for selling Philippines plant
p. 12
“So for us to say that we are going to be doing it in the next few months, that situation is not there for us to say it and account accordingly.”
Kishore Chatnani, page 12 of the filed PDF · View the filing
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