1. Normalised earnings recovery - FY26 reported PAT of ₹10.51 crore was depressed by one-time charges of ₹5.89 crore (bad debt write-off, capacity expansion rental, Khopoli rundown), giving a normalised PAT of ₹16.56 crore. As these non-recurring costs fall away, management expects normalised EBITDA margins of 12-13% and PAT margins above 5% in FY27.
2. Railways sector entry with RDSO approval - The Umbergaon facility is now RDSO-approved by the Ministry of Railways for fabrication of composite and plate steel bridge girders, with Shed 1 dedicated to FOBs, ROBs, and steel bridge girders. Management expects railways to contribute 20% of the portfolio as new lines are announced, opening a large public-infrastructure demand stream.
3. Balance sheet deleveraging and working capital headroom - Long-term borrowings fell by ₹5.65 crore and short-term borrowings by ₹17.55 crore in FY26, while cash balances nearly doubled to ₹18.68 crore. With board approval to enhance borrowing limits to ₹300 crore and access to TReDS, LC, and channel financing, management states banking and self-accruals can fund working capital up to ₹500 crore of revenue.
4. Data centre MOU and new verticals - The company signed an MOU for 15,000 tons specifically for data centres and is actively pursuing defence fabrication and export certifications. These verticals diversify revenue beyond heavy steel structures, which already grew to 76% of FY26 product mix from 69% in FY25.
5. Solar power cost reduction - A 1 MW rooftop solar plant is being installed in two phases at a cost of ₹3-3.5 crore, expected online by October-November 2025, targeting a 50%+ reduction in energy bills. Lower power costs directly support the margin recovery trajectory as capacity utilisation rises.