Karamtara Engineering Ltd — Q2 FY27 earnings call
Summary generated by AI from the official transcript Karamtara Engineering Ltd filed with BSE on 09 Oct 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
Karamtara Engineering reported Q1 FY27 revenue of Rs 1,581 crore, up 72% year-on-year, with EBITDA of Rs 174 crore and profit after tax of Rs 87 crore, both up 45% year-on-year. Management attributed the quarter's EBITDA margin of about 11% partly to elevated shipping and local delivery costs globally. The company said international business contributed 66% of revenue and that renewable products contributed 82% of Q1 FY27 revenue, while guiding to 60-65% revenue growth for FY27 over the prior year.
Numbers mentioned
Revenue from operations: INR1,581 crores (Q1 FY27)
p. 6
“revenue from operations stood at INR1,581 crores, registering a growth of 72% year-on-year basis”
Sunil Rustagi, page 6 of the filed PDF · View the filing
EBITDA: INR174 crores (Q1 FY27)
p. 6
“EBITDA for the quarter stood at INR174 crores, reflecting a 45% growth on year-on-year basis”
Sunil Rustagi, page 6 of the filed PDF · View the filing
Profit after tax: INR87 crores (Q1 FY27)
p. 6
“Profit after tax stood at INR87 crores, registering a growth of 45% on year-on-year basis”
Sunil Rustagi, page 6 of the filed PDF · View the filing
Renewable products revenue share: 82% (Q1 FY27)
p. 6
“renewal products continued to be the key revenue driver, contributing 82% of Q1 FY27 revenues”
Sunil Rustagi, page 6 of the filed PDF · View the filing
International business revenue share: 66% (Q1 FY27)
p. 6
“In Q1 FY27, the international businesses accounted for 66% of the revenue.”
Sunil Rustagi, page 6 of the filed PDF · View the filing
Installed capacity: 889,200 metric tons per annum (Current quarter end)
p. 4
“As of the current quarter end, our aggregated installed capacity stood at 889,200 metric tons per annum, excluding rolling and galvanizing capacity, which are utilized for captive consumption.”
Rajiv Singh, page 4 of the filed PDF · View the filing
EBITDA margin: 11% (Q1 FY27)
p. 7
“we earned EBITDA of about 11% in quarter one”
Sunil Rustagi, page 7 of the filed PDF · View the filing
Working capital cycle: 36 days (Q1 FY27)
p. 13
“And now further in this quarter, it has come down to 36 days.”
Sunil Rustagi, page 13 of the filed PDF · View the filing
Interest cost as % of revenue: 2.6% (Q1 FY27)
p. 13
“it has come down to 2.6% of our revenue, which is also gives a signal that we are controlling our working capital very tightly”
Sunil Rustagi, page 13 of the filed PDF · View the filing
Tariff component of revenue: INR250 crores (Q1 FY27)
p. 18
“the tariff was of INR250 crores and odd figure, which is a part of our Q1's revenue”
Sunil Rustagi, page 18 of the filed PDF · View the filing
Tariff component of revenue: INR113 crores (Q1 FY26)
p. 18
“Yes, on year-on-year basis, Q1 '26 was INR113.”
Sunil Rustagi, page 18 of the filed PDF · View the filing
Sales volume: 135,000 tons (Q1 FY27)
p. 19
“we have done about 135,000 tons this quarter”
Sunil Rustagi, page 19 of the filed PDF · View the filing
Capex: INR900 crores (FY26)
p. 10
“last year, we did INR900 crores of capex, and we continue to invest this year”
Rajiv Singh, page 10 of the filed PDF · View the filing
EBITDA margin: 13% (Q1 FY26)
p. 14
“if you look at our Q1 numbers of FY26, and you see the margins there, we were at 13% EBITDA there”
Rajiv Singh, page 14 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.
Revenue growth — 60% to 65% · FY27
stated as an aspiration by Sunil Rustagi
p. 6
“for FY27, we endeavor to grow our revenues by 60% to 65% over the last year”
Sunil Rustagi, page 6 of the filed PDF · View the filing
Saudi Arabia facility trial production — December
stated conditionally by Rajiv Singh
p. 10
“we will start doing, hopefully, some trials in December, and by February, or latest by March, we hope that our galvanizing plant will come online”
Rajiv Singh, page 10 of the filed PDF · View the filing
India transmission facility (Bhuj) utilization — peak capacity · next 6 to 9 months
stated as an aspiration by Rajiv Singh
p. 10
“by the next 6 to 9 months, we should be hitting peak capacity in that facility also”
Rajiv Singh, page 10 of the filed PDF · View the filing
EBITDA margin — Q3 and Q4
stated conditionally by Rajiv Singh
p. 20
“when we feel that the revenue for Q3 and Q4 is as per projected, the guidance on the margins also will move in accordance to the growth in the revenue”
Rajiv Singh, page 20 of the filed PDF · View the filing
FY28 guidance — FY28
stated as an aspiration by Rajiv Singh
p. 16
“we do not want to give today the that -- where we would land up in FY28”
Rajiv Singh, page 16 of the filed PDF · View the filing
PEB facility revenue contribution — next financial year
stated as an aspiration by Rajiv Singh
p. 11
“the facility should be ready, let's say, by the beginning of next financial year, we should be starting”
Rajiv Singh, page 11 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 transmission is becoming a major growth driver, citing new capacity in Bhachau and investment in Saudi Arabia.
Answered by Rajiv Singh
Asked by Abhinav Nalawade: Will the revenue mix shift more toward transmission given strong demand and pricing?
p. 7
“So yes, transmission is going to be a very, very large growth driver for us.”
Rajiv Singh, page 7 of the filed PDF · View the filing
Management confirmed Q2 was good and reiterated the 60-65% growth target, noting margin improvement expected from asset utilization.
Answered by Rajiv Singh
Asked by Abhinav Nalawade: What is the revenue and EBITDA margin outlook for FY27 given Q2 trends?
p. 7
“Yes, Q2 has been good for us.”
Rajiv Singh, page 7 of the filed PDF · View the filing
Management explained the 50% Section 232 tariff on steel/aluminum is fully passed through to buyers and does not stack with other tariffs.
Answered by Rajiv Singh
Asked by Mihir Manohar: How does Karamtara's US export competitiveness look amid tariff risk?
p. 9
“So for us, globally, the tariff on steel and aluminum products to the US remains at 50%.”
Rajiv Singh, page 9 of the filed PDF · View the filing
Management said US prices are significantly higher due to supply shortages and long lead times.
Answered by Rajiv Singh
Asked by Mihir Manohar: What is the price differential between Indian and US-sourced material for US customers?
p. 9
“They're about 30% to 40% higher than what they're able to buy from India if they buy locally.”
Rajiv Singh, page 9 of the filed PDF · View the filing
Management attributed near-term margin compression to elevated shipping/trucking costs and expects improvement from asset utilization and Saudi local-content margins.
Answered by Rajiv Singh
Asked by Gaurav U.: Will margin expansion come from gross margin, Saudi capacity, or operating leverage?
p. 10
“the margins are definitely much, much better”
Rajiv Singh, page 10 of the filed PDF · View the filing
Management said Saudi capacity will take about 12-18 months to hit target numbers, while India's Bhuj facility should reach peak capacity in 6-9 months.
Answered by Rajiv Singh
Asked by Gaurav U.: When will new transmission capacity in India and Saudi reach optimum utilization?
p. 10
“it will take about 12 to 18 months for us to be able to hit, you know, good numbers in that capacity over a period of time”
Rajiv Singh, page 10 of the filed PDF · View the filing
Management described reallocating capital toward higher-margin, fungible businesses and scaling transmission and PEB similarly to how solar was scaled.
Answered by Rajiv Singh
Asked by Suyash Kela: How does the company approach capital allocation across solar, transmission, PEB and other segments?
p. 12
“We tend to use our capital quite efficiently. And we do it in businesses that give us maximum margin.”
Rajiv Singh, page 12 of the filed PDF · View the filing
Management confirmed elevated global fuel and shipping costs persist but said Q2 margins improved despite this.
Answered by Rajiv Singh
Asked by Subhanu Bangal: Is the elevated delivery cost environment continuing, and is the 11% EBITDA margin sustainable?
p. 14
“the margins are far better even with the elevated cost of the oil”
Rajiv Singh, page 14 of the filed PDF · View the filing
Management declined to give a specific percentage target but pointed to prior FY26 margin levels as a reference.
Answered by Rajiv Singh
Asked by Subhanu Bangal: What revenue mix and EBITDA margin is targeted from transmission over the next few years?
p. 14
“we were at 13% EBITDA there”
Rajiv Singh, page 14 of the filed PDF · View the filing
Management said PEB margins should be similar to existing businesses, driven by procurement scale, though declined to give a specific margin figure.
Answered by Rajiv Singh
Asked by Arvind Arora: How will the new PEB facility differ from peers and affect margins?
p. 15
“we believe that the margin profile is similar to what we are able to do in our other businesses”
Rajiv Singh, page 15 of the filed PDF · View the filing
Management disclosed tariff-related revenue of Rs 250 crore in Q1 FY27 versus Rs 113 crore in Q1 FY26.
Answered by Sunil Rustagi
Asked by Pankaj Saraf: How much of quarterly revenue came from tariffs, and how does this compare across periods?
p. 18
“Q1 of this year is INR250.”
Sunil Rustagi, page 18 of the filed PDF · View the filing
Management gave total volume across products.
Answered by Sunil Rustagi
Asked by Rishabh Jain: What were sales volumes in tons this quarter?
p. 19
“we have done about 135,000 tons this quarter”
Sunil Rustagi, page 19 of the filed PDF · View the filing
Management attributed the increase mainly to tariff and freight costs embedded in other expenses.
Answered by Sunil Rustagi
Asked by Rishabh Jain: Why were other expenses high this quarter?
p. 20
“the tariff is about INR250 crores, and also the freight cost, which has come, which has impacted some of the EBITDA margin in the last quarter”
Sunil Rustagi, page 20 of the filed PDF · View the filing
Risks flagged
Elevated global shipping and trucking costs compressing margins
p. 10
“So that has hit us a little bit at our margins, otherwise, our margins would have been far better than what we have been able to do.”
Rajiv Singh, page 10 of the filed PDF · View the filing
Potential supply chain disruption during periods of war affecting raw material cover
p. 8
“And in war times, it could get disrupted a little bit.”
Rajiv Singh, page 8 of the filed PDF · View the filing
Elevated fuel costs globally increasing shipment and delivery costs
p. 13
“That has increased the shipment cost and the delivery costs globally.”
Rajiv Singh, page 13 of the filed PDF · View the filing
Increased interest cost from term loans taken for capex
p. 13
“Of course, there is some portion of term loan which has been taken for our capex.”
Sunil Rustagi, page 13 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.
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