Abha Power and Steel Limited (**APSL**) is a precision-engineered casting and specialty steel solutions provider based in India. The company operates an integrated manufacturing model, spanning from raw material testing and design to the machining of high-performance castings for critical industrial applications. APSL has transitioned into a high-value precision engineering entity, recently listing on the **NSE Emerge** platform to fund its next phase of metallurgical advancement. --- ### Specialized Manufacturing Infrastructure & Capacity APSL operates two specialized foundries within a single **319,200 square-foot** ISO-certified premises located in the **Silpahri Industrial Area, Bilaspur, Chhattisgarh**. This strategic location provides proximity to raw material hubs and an uninterrupted industrial power supply. | Segment | Annual Installed Capacity | Key Materials / Products | | :--- | :--- | :--- | | **Steel Foundry** | **7,200 MT** | Mild steel, manganese steel, stainless steel, low/high alloy grades (High Cr & Ni), HRCS, WRCS. | | **Iron Foundry** | **7,200 MT** | Spheroidal Graphite (**SG**) Iron, grey iron, and alloy castings. | | **Total Capacity** | **14,400 MT** | **1,000+ SKUs**; single-piece castings from **0.5 kg to 6 tonnes**. | * **Capacity Utilization:** Currently stands at approximately **45% (6,450 MT)** as of **FY25**, though management has noted utilization levels reaching **75%** in specific cycles, providing significant **headroom** for growth. * **Sustainability:** The facility operates a **2.99 MW captive solar power plant**, which saves **3,400 MT of CO2** annually and substantially reduces long-term energy overheads. * **Quality Accreditations:** The company is an **RDSO (Class A)** approved supplier for Indian Railways and holds **ISO 9001:2015**, **ISO 14001:2015**, and **ISO 45001:2018** certifications. --- ### Diversified Product Portfolio & Market Segments The company produces critical wear-resistant parts and assemblies for heavy industries. Its backward-integrated model allows it to source pig iron and ferroalloys locally while maintaining strict quality control through in-house **Non-Destructive Testing (UT, MPI, DP)**. #### 1. Iron Foundry Portfolio * **Railway & Infrastructure:** **SGCI Inserts**, **Narrow/Wide Jaw Adapters**, and **Clamps**. * **Crushing & Screening:** **Hammers**, **Ring Hammers**, **Screen Plates**, and **Grate Plates**. * **Industrial Frames:** **Coke Bucket Liners**, **Centering Discs**, and **Kick-off Plates**. * **Thermal Power:** **Coal Nozzle Tips** and **Nozzle Pieces**. #### 2. Steel Foundry Portfolio * **Heavy Assemblies:** **Small & Big Bell Assemblies**, **Armour Rings**, and **Flanges**. * **Thermal & Cooling:** **Cooling Plates**, **Grate Bars**, and **Flap Doors**. * **Grinding & Impact:** **Blow Bars**, **Clinker Grinder Rolls**, and **ACI Bends**. **Global Footprint:** APSL exports to over **6 countries**, including the **UAE, Qatar, Germany, Canada, Italy, Netherlands, and Nepal**. --- ### Strategic Growth Initiatives & Capital Expenditure APSL is executing a transition toward high-value precision engineering, specifically targeting the **Indian Railways**, **Defense**, and **Heavy Industry OEM** sectors. * **Infrastructure Modernization:** Earmarked **₹16.39 crore** from IPO proceeds for a new **PLC-based Electric Arc Furnace (EAF)** and thyristor-controlled furnaces. This upgrade focuses on **metallurgical precision** rather than just volume. * **Railway Expansion:** As a **Class A RDSO foundry**, APSL is expanding into complex items like **bogies and couplers**. Applications for direct sales to **wagon OEMs** are in progress (estimated **4-6 month cycle**), with high-value revenue expected after **March 2026**. * **Defense Entry:** In **February 2026**, the company officially entered the **Ministry of Defence** manufacturing ecosystem through a project sanction order, diversifying its revenue base into high-security applications. * **Operational Targets:** Production from upgraded facilities is expected to commence in **January 2026**, with a target utilization rate **above 60%**. --- ### Financial Performance & Capital Structure The company demonstrated robust growth in **FY 2024-25**, characterized by a significant increase in net profitability and a successful public listing. | Metric | FY 2023-24 | FY 2024-25 | Growth (%) | | :--- | :--- | :--- | :--- | | **Revenue** | **₹51.6 Cr** | **₹70.0 Cr** | **35.6%** | | **Net Profit (PAT)** | **₹3.78 Cr** | **₹6.22 Cr** | **64.5%** | | **EBITDA Margin** | - | **15.3%** | - | | **PAT Margin** | - | **8.9%** | - | | **Return on Net Worth (RONW)** | **23.29%** | **18.22%** | *(5.07 bps decrease)* | * **H1 FY26 Performance:** Revenue stood at **₹34.57 Cr** with an **EBITDA margin of 10.3%**. * **IPO Details:** Listed on **December 4, 2024**, raising **₹38.54 Crores** via a fresh issue of **41,39,200 shares** at **₹75 per share**. The stock debuted at a **9.2% premium**. * **RONW Note:** The slight dip in **Return on Net Worth** is attributed to the **dilution effect** of the fresh capital infusion, which is currently being deployed into long-term assets. --- ### Order Book Visibility APSL maintains a strong pipeline of orders from both government infrastructure projects and private OEMs. | Reporting Date | Order Book Value | Key Highlights | | :--- | :--- | :--- | | **March 2026** | **~₹22.00 Cr** | Strong focus on Railway OEMs and Defense. | | **January 2026** | **₹23.00 Cr** | Includes **₹91.76 Lacs** order from a Heavy Industries OEM. | | **July 2025** | **₹28.90 Cr** | Secured **₹7.71 Cr** order from South East Central Railway. | | **January 2025** | **₹30.02 Cr** | Driven by railway aggregators and sleeper plants. | --- ### Risk Profile & Mitigation Strategies Management actively monitors a volatile industrial landscape to protect margins and operational continuity. * **Market Volatility:** To counter fluctuations in **pig iron and ferroalloy** prices, APSL utilizes **long-term supply contracts** and **forward purchase agreements**. * **Technological Shift:** The global move toward **decarbonization** is being met by APSL’s transition to **Electric Arc Furnaces** and its **2.99 MW solar plant**, reducing reliance on fossil fuels. * **Material Substitution:** To mitigate the risk of lightweight alternatives (aluminum/composites), the company focuses on **heavy-duty, high-wear applications** where steel and iron remain technically superior. * **Regulatory Dependency:** Growth in the railway segment is contingent on **RDSO approval cycles**. The company manages this by maintaining a diversified portfolio across cement, steel, and mining to avoid over-reliance on a single regulator. * **Operational Efficiency:** The integration of **PLC and automation** is expected to reduce labor dependency and improve product consistency, addressing industry-wide labor shortages.