Karbonsteel Engineering Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Karbonsteel Engineering Ltd filed with BSE on 16 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
Karbonsteel Engineering reported revenue crossing 300 crores for FY25 with a 10.86% EBITDA margin and PAT of 10.51 crores, which included one-time bad debt write-off and rental costs; normalized PAT was stated as 16.56 crores. Management described operational challenges from an LPG supply disruption, labor migration, and cost escalations that affected production timing, alongside progress on expanding capacity at Umargam from 30,000 to 54,000 tons. The company also discussed its order book growth to approximately 350 crores as of May and plans for automation and a solar power installation.
Numbers mentioned
Revenue: 300 crores (FY25)
p. 3
“This year, we crossed 300 crores in revenue, which is a step forward for us.”
Shrenik Kirit Shah, page 3 of the filed PDF · View the filing
Revenue: 273 crores (FY24)
p. 5
“In FY24, we achieved 273 crores, and we have surpassed 300 crores in FY25.”
Ganesh Bhandary, page 5 of the filed PDF · View the filing
EBITDA margin: 10.86% (FY25)
p. 5
“Despite input cost pressure, we maintained a healthy 10.86% EBITDA margin.”
Ganesh Bhandary, page 5 of the filed PDF · View the filing
PAT: 10.51 crores (FY25)
p. 5
“Our PAT was 10.51 crores.”
Ganesh Bhandary, page 5 of the filed PDF · View the filing
Normalized PAT: 16.56 crores (FY25)
p. 5
“The normalized PAT should be around 16.56 crores when these onetime costs are added back.”
Ganesh Bhandary, page 5 of the filed PDF · View the filing
Bad debt write-off: 1.65 crore (FY25)
p. 4
“We also had an NCLT case decided in FY25, resulting in a 1.65 crore bad debt write-off.”
Shrenik Kirit Shah, page 4 of the filed PDF · View the filing
Order book: approximately 350 crores (as of May)
p. 3
“we have grown from close to 200 crores to approximately 350 crores as of May.”
Shrenik Kirit Shah, page 3 of the filed PDF · View the filing
Inventory days: 130 days (FY25)
p. 5
“Our inventory levels improved from 150 days last year to 130 days currently.”
Ganesh Bhandary, page 5 of the filed PDF · View the filing
Financial costs: 5% (FY25)
p. 5
“We maintained financial costs at 5%.”
Ganesh Bhandary, page 5 of the filed PDF · View the filing
Production volume growth: 22% more than previous year (FY25)
p. 4
“In terms of volume, including labor jobs, we achieved 22% more production than the previous year.”
Shrenik Kirit Shah, page 4 of the filed PDF · View the filing
Revenue impact from labor jobs: about 40 crores (FY25)
p. 4
“This compressed our revenue by about 40 crores because we had to accommodate the relationship and the fact that they had already purchased the material.”
Shrenik Kirit Shah, page 4 of the filed PDF · View the filing
Rental cost impact: 2.4 crores (FY25)
p. 5
“This includes a one-time bad debt write-off of 1.65 crores and rental costs of 2.4 crores.”
Ganesh Bhandary, page 5 of the filed PDF · View the filing
Net worth: 115 crore
p. 11
“On a 115 crore net worth, our ROE should be in the range of 17% to 19%.”
Management, page 11 of the filed PDF · View the filing
Gross block: 61 crores including CWIP
p. 11
“Our gross block is 61 crores including CWIP.”
Management, page 11 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 — 12-13%
stated as an aspiration by Management
p. 6
“We expect a normalized margin in the range of 12-13%.”
Management, page 6 of the filed PDF · View the filing
Production — 40,000 tons annually · FY26
stated firmly by Management
p. 6
“In terms of production levels, we expect to hit about 40,000 tons on an annual basis, with steel prices at about 100 per kg for sales.”
Management, page 6 of the filed PDF · View the filing
Capacity utilization — 54,000 tons full capacity · following year
stated firmly by Management
p. 6
“For the following year, we intend to reach the full capacity of 54,000 tons.”
Management, page 6 of the filed PDF · View the filing
Capex for expansion — 10-15 crores · next year
stated firmly by Management
p. 8
“We have 21 crores in work-in-progress, and in the next year, we will invest another 10-15 crores in capex.”
Management, page 8 of the filed PDF · View the filing
Capacity utilization — 80-90% · FY26
stated firmly by Management
p. 8
“For FY26, we expect it to be around 80-90%.”
Management, page 8 of the filed PDF · View the filing
PAT margin — 4-5% FY26, above 5% FY27 · FY26 and FY27
stated as an aspiration by Management
p. 7
“They should be around 4-5% for FY26 and move above 5% for FY27.”
Management, page 7 of the filed PDF · View the filing
PAT margin — 7-8%
stated as an aspiration by Management
p. 8
“Our aspiration is definitely 7-8% margins going forward.”
Management, page 8 of the filed PDF · View the filing
Order book execution — 340 crore order book · this financial year
stated firmly by Management
p. 10
“It should be executed within this financial year.”
Management, page 10 of the filed PDF · View the filing
Solar plant commissioning — October or November
stated firmly by Management
p. 8
“The solar plant should also be online by October or November.”
Management, page 8 of the filed PDF · View the filing
Finance costs — 4% of turnover · FY26
stated firmly by Management
p. 11
“We expect finance costs to be around 4% of turnover.”
Management, page 11 of the filed PDF · View the filing
Expansion completion — October 2025 · October 2025
stated firmly by Shrenik Kirit Shah
p. 4
“This expansion is underway, with a revised completion timeline of October 2025.”
Shrenik Kirit Shah, page 4 of the filed PDF · View the filing
Revenue — 800-1,000 crores · post-FY27
stated as an aspiration by Management
p. 7
“To reach 800-1,000 crores in revenue and produce 7,000-8,000 tons a month, we will need more expansion post-FY27.”
Management, page 7 of the filed PDF · View the filing
Labor situation — end of June
stated conditionally by Management
p. 7
“We see labor returning, and we expect the situation to normalize by the end of June.”
Management, page 7 of the filed PDF · View the filing
Revenue — 1,000 crore · three to five years
stated as an aspiration by Management
p. 11
“Our 1,000 crore aspiration exists because major companies like Reliance still import significant fabrication from China due to the volume requirements.”
Management, 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 clarified the 1% figure was specific to automation-driven gains, with other improvements to come separately.
Answered by Management
Asked by Sudhir Bheda: Why is margin expansion guided at only 1% by FY28 given one-off costs disappearing and capacity expanding?
p. 5
“That 1% increase is specifically attributed to automation alone.”
Management, page 5 of the filed PDF · View the filing
Management estimated solar capex at 3-3.5 crores and expects power bill reduction of over 50%.
Answered by Management
Asked by Marmik Khandelwal: What is the capex for the solar capacity and expected savings?
p. 6
“It should reduce our bills by over 50%.”
Management, page 6 of the filed PDF · View the filing
Management described their work as beginning where PEB ends, involving high-precision custom fabrication for critical infrastructure.
Answered by Management
Asked by Paras Chheda: How does Karbonsteel differ from general PEB and what would 1 lakh tons a year mean competitively?
p. 7
“We start where PEB ends. PEB is a light industry; we deal with made-to-order custom fabrications requiring high precision because of the machinery and plant processes designed around our buildings.”
Management, page 7 of the filed PDF · View the filing
Management explained the comparison is not apples-to-apples since PEB includes EPC scope while Karbonsteel only manufactures.
Answered by Management
Asked by Madhur Rathi: Why is Karbonsteel's realization of 100 per kg lower than PEB manufacturers' 115-120?
p. 9
“We are only manufacturing; they are an EPC.”
Management, page 9 of the filed PDF · View the filing
Management said facility capacity is not the constraint, but skilled manpower availability is, which automation aims to address.
Answered by Management
Asked by Sandeep Bhandari: What is the biggest constraint to reaching 550 crores in revenue?
p. 9
“Building the facility is not a constraint. We do require skilled manpower from regions like MP, Jharkhand, and Bihar.”
Management, page 9 of the filed PDF · View the filing
Management attributed the shortfall to the Khopoli exit reducing capacity, lower-value labor jobs, and the LPG crisis delaying dispatch.
Answered by Management
Asked by Pranav Pal: Why did H2 revenue decline despite earlier guidance of 30% growth?
p. 10
“We exited the Khopoli facility, which reduced our overall capacity by 5,000-6,000 tons.”
Management, page 10 of the filed PDF · View the filing
Management said pre-buying consumables and paint during price inflation in March affected margins, with normalized H2 EBITDA closer to 14%.
Answered by Management
Asked by Gunit Singh: Why were H2 EBITDA margins around 10% rather than higher given steel pass-through?
p. 10
“Normalized EBITDA for H2 should have been around 14%.”
Management, page 10 of the filed PDF · View the filing
Management said ROE should actually be higher, in the 17-19% range, based on net worth and fixed asset base.
Answered by Management
Asked by Keshav Garg: Given asset turnover of about two times and 5% net margin, is this a 10% ROE business?
p. 11
“On a 115 crore net worth, our ROE should be in the range of 17% to 19%.”
Management, page 11 of the filed PDF · View the filing
Risks flagged
LPG supply disruption from sole supplier affecting operations
p. 3
“We faced operational challenges, especially regarding LPG supply and certain cost escalations that developed around March.”
Shrenik Kirit Shah, page 3 of the filed PDF · View the filing
Labor migration due to geopolitical/social conditions affecting project timelines
p. 4
“Labor migration started in March due to the LPG crisis, affecting project timelines.”
Shrenik Kirit Shah, page 4 of the filed PDF · View the filing
Cost escalations in transportation, consumables, paint, and LPG not passed through to customers
p. 3
“While we could pass on some costs to our users, especially steel, other costs like transportation, consumables, paint, and LPG became operational challenges.”
Shrenik Kirit Shah, page 3 of the filed PDF · View the filing
One-time bad debt from NCLT case
p. 4
“We also had an NCLT case decided in FY25, resulting in a 1.65 crore bad debt write-off.”
Shrenik Kirit Shah, page 4 of the filed PDF · View the filing
Delayed capacity expansion due to civil construction and labor delays
p. 4
“It was initially targeted for March, but civil construction and labor delays necessitated an extension.”
Shrenik Kirit Shah, page 4 of the filed PDF · View the filing
Rental and depreciation costs from delayed expansion impacting results
p. 4
“Additionally, since the expansion was pushed back, we factored in rental and depreciation costs in these results.”
Shrenik Kirit Shah, page 4 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.