ISGEC - ISGEC Heavy
📢 Recent Corporate Announcements
ICRA Limited has re-affirmed the credit rating for ISGEC Redecam Enviro Solutions Private Limited, a non-material subsidiary and joint venture of ISGEC Heavy Engineering. The rating for the Rs. 20 crore non-fund based working capital facility remains at [ICRA]BBB with a Stable outlook. This facility, provided by IDFC First Bank, includes instruments like bank guarantees and letters of credit. The re-affirmation indicates a consistent credit risk profile for this specific subsidiary's operations without any immediate upgrade or downgrade.
- ICRA re-affirmed the [ICRA]BBB (Stable) rating for ISGEC Redecam Enviro Solutions Pvt. Ltd.
- The rating covers a Rs. 20.00 crore limit of non-fund based working capital facilities.
- The facilities are provided by IDFC First Bank Limited and include BG, LC, and SBLC.
- The rating remains unchanged from the previous assessment conducted in January 2025.
Isgec Heavy Engineering has initiated a postal ballot to seek shareholder approval for the re-appointment of its core leadership team for five-year terms starting in mid-2026. Mr. Aditya Puri is proposed to continue as Managing Director with a monthly basic salary of ₹21 lakh and a commission capped at 2.5% of net profits. Additionally, Mr. Kishore Chatnani and Mr. Sanjay Gulati are proposed for re-appointment as Joint Managing Directors, with Mr. Chatnani's total remuneration capped at ₹3.52 crore for FY 2026-27. The move aims to ensure management continuity and stability for the company's long-term strategic execution.
- Proposed re-appointment of Mr. Aditya Puri as Managing Director for a 5-year term from May 1, 2026, to April 30, 2031.
- MD remuneration includes ₹21 lakh monthly basic salary plus perquisites and a commission cap of 2.5% of net profits.
- Mr. Kishore Chatnani proposed as JMD and CFO with a total remuneration limit of ₹3.52 crore for the financial year 2026-27.
- Mr. Arvind Sagar proposed for a second consecutive term as an Independent Director through a special resolution.
- E-voting period for shareholders is scheduled from February 26, 2026, to March 27, 2026, with results by March 29, 2026.
ISGEC delivered a strong Q3 FY26 performance with consolidated PBT from continuing operations rising 72% YoY to ₹150 crores. The consolidated order book grew 19% YoY to ₹8,709 crores, supported by robust demand in manufacturing and exports. The Board approved a fresh ₹218 crore capex for the Machine Building division, aiming to scale its annual revenue from ₹400 crores to ₹1,000 crores by 2027. Despite the failed sale of its Philippines asset, the company significantly reduced consolidated net debt by ₹340 crores during the quarter.
- Consolidated PBT from continuing operations surged 72% YoY to ₹150 crores in Q3 FY26.
- Total consolidated order book reached ₹8,709 crores, with standalone export orders at ₹1,629 crores.
- Approved ₹218 crore investment to expand Machine Building capacity, targeting ₹1,000 crore annual revenue by 2027.
- Consolidated net external borrowing decreased by ₹340 crores to ₹317 crores during the quarter.
- Revised Dahej facility investment upwards to ₹110 crores to meet higher demand for larger skids and modules.
Isgec Heavy Engineering Limited has announced that Mr. Anup Bhargava, the Chief Strategy Officer, will retire from his position. The retirement, termed as superannuation, is effective from the close of business hours on February 16, 2026. As this is a planned retirement rather than a resignation, it represents a routine transition in the company's senior management. The company has fulfilled its regulatory disclosure requirements under SEBI Listing Regulations.
- Mr. Anup Bhargava to superannuate from the role of Chief Strategy Officer on February 16, 2026
- The departure is classified as a change in Senior Management Personnel (SMP)
- Transition is effective from the close of business hours on the date of announcement
- No resignation letter was required as the exit is due to standard superannuation
Isgec Heavy Engineering Limited has released the audio recording of its earnings conference call held on February 10, 2026. The call focused on the company's financial performance for the third quarter and the nine-month period ending December 31, 2025. This disclosure provides transparency into management's discussion regarding operational updates and the business outlook. Investors can access the recording directly through the link provided on the company's official website as per SEBI regulations.
- Conference call conducted on February 10, 2026, at 16:00 IST.
- Discussion covered financial results for the quarter and nine months ended December 31, 2025.
- Audio recording link: https://www.isgec.com/audio/IsgecQ3FY26ConcallAudio.mp3.
- Compliance with Regulation 30 and 46 of SEBI (LODR) Regulations, 2015.
ISGEC Heavy Engineering reported a robust performance for Q3 FY26, with consolidated total income from continuing operations rising 17.1% YoY to ₹17,563 million. The company's profitability saw a massive boost as consolidated PAT surged 92.5% YoY to ₹1,122 million, driven by strong growth in the Industrial Projects and Manufacturing segments. For the nine-month period (9M FY26), consolidated PAT grew by 6.4% to ₹2,741 million. The company maintains a healthy credit profile with an AA Stable rating and a diversified revenue base across 93 countries.
- Consolidated PAT from continuing operations for Q3 FY26 jumped 92.5% YoY to ₹1,122 million.
- Total Income for Q3 FY26 grew 17.1% YoY to ₹17,563 million, up from ₹14,997 million in Q3 FY25.
- Industrial Projects revenue grew 22.9% YoY, while Manufacturing of Machinery & Equipment grew 15.9% YoY.
- Manufacturing segment EBIT margins improved to 15.4% in Q3 FY26 compared to 14.8% in the previous year.
- 9M FY26 consolidated total income reached ₹48,406 million with a PAT margin of 5.7%.
Isgec Heavy Engineering reported a strong Q3 FY26 performance with standalone net profit rising 28.1% year-on-year to ₹75.17 crore. Revenue from operations grew 18.5% to ₹1,326.90 crore, supported by growth in both Manufacturing and Industrial Projects segments. The company announced a significant capital expenditure plan exceeding ₹350 crore to expand its Machine Building and Foundry divisions and enhance its Dahej SEZ facility. Furthermore, the board has approved the re-appointment of key leadership, including Promoter Aditya Puri as Managing Director for a five-year term.
- Standalone Net Profit for Q3 FY26 increased to ₹75.17 crore from ₹58.66 crore in the previous year.
- Revenue from operations for the quarter rose 18.5% YoY to ₹1,326.90 crore.
- Approved a major capital expenditure of ₹218 crore for the expansion of the Machine Building Division.
- Enhanced investment in the Process Skids & Modules facility at Dahej SEZ from ₹87 crore to ₹110 crore.
- Re-appointed Aditya Puri as Managing Director and Kishore Chatnani as Joint MD & CFO for 5-year terms starting 2026.
ISGEC Heavy Engineering reported a robust Q3 performance with Net Profit increasing 28% year-on-year to ₹75.17 crore. The company has approved a significant capital expenditure plan of ₹218 crore for the expansion of its Machine Building Division and ₹22.6 crore for a new Machining Shop. Additionally, the investment for the Dahej SEZ facility has been revised upward to ₹110 crore. The board also ensured leadership stability by re-appointing the Managing Director and Joint Managing Directors for five-year terms.
- Q3 Net Profit grew 28% YoY to ₹75.17 crore from ₹58.66 crore in the previous year.
- Revenue for the quarter increased 18.5% YoY to ₹1,326.9 crore.
- Approved ₹218 crore capex for Machine Building Division and ₹22.6 crore for Iron Foundry Division.
- Increased investment budget for Dahej SEZ facility from ₹87 crore to ₹110 crore.
- Re-appointed Aditya Puri as Managing Director and Kishore Chatnani as JMD & CFO for 5-year terms.
ISGEC Heavy Engineering reported a strong Q3 FY26 with standalone revenue growing 18.5% YoY to ₹1,326.90 crore and PAT increasing 28% to ₹75.17 crore. The company has committed to significant growth through a ₹218 crore expansion of its Machine Building Division and an increased investment of ₹110 crore for its Dahej SEZ facility. Leadership stability is secured with the 5-year re-appointments of the Managing Director, two Joint Managing Directors, and the CFO. Operational performance remains robust across both the Manufacturing and Industrial Projects segments despite a ₹14.03 crore exceptional item.
- Standalone Revenue from operations increased 18.5% YoY to ₹1,326.90 crore in Q3 FY26.
- Net Profit (PAT) rose 28% YoY to ₹75.17 crore, overcoming a ₹14.03 crore exceptional charge.
- Approved major Capex of ₹218 crore for Machine Building Division and ₹22.6 crore for a new Machining Shop.
- Enhanced investment in Dahej SEZ Process Skids facility from ₹87 crore to ₹110 crore.
- Re-appointed Aditya Puri as MD and Kishore Chatnani as Joint MD & CFO for 5-year terms starting 2026.
ISGEC Heavy Engineering reported a strong performance for Q3 FY26, with standalone revenue growing 18.5% YoY to ₹1,326.9 crore. Net profit (PAT) increased by 28% YoY to ₹75.2 crore, even after accounting for a ₹14 crore exceptional item. The company announced a significant capital expenditure plan of approximately ₹240 crore to expand its Machine Building and Iron Foundry divisions. Furthermore, the board ensured leadership continuity by re-appointing the Managing Director and Joint Managing Directors for five-year terms.
- Standalone Revenue from operations increased 18.5% YoY to ₹1,326.9 crore in Q3 FY26.
- Net Profit (PAT) grew 28% YoY to ₹75.2 crore compared to ₹58.7 crore in the previous year's quarter.
- Approved ₹218 crore capex for expansion of the Machine Building Division and ₹22.6 crore for a new Machining Shop.
- Increased investment for the Process Skids & Modules facility at Dahej SEZ from ₹87 crore to ₹110 crore.
- Re-appointed Aditya Puri as Managing Director and Kishore Chatnani as Joint MD & CFO for 5-year terms starting 2026.
ISGEC Heavy Engineering reported a strong Q3 FY26 performance with revenue from operations growing 18.5% YoY to ₹1,326.9 crore. Net profit (PAT) increased by 28% YoY to ₹75.2 crore, even after accounting for a ₹14 crore exceptional item. The company announced a major growth push with board approval for capital expenditure totaling approximately ₹263.6 crore, primarily focused on the Machine Building Division. Additionally, the board ensured leadership continuity by re-appointing the Managing Director and Joint Managing Directors for five-year terms.
- Revenue from operations increased 18.5% YoY to ₹1,326.9 crore in Q3 FY26.
- Net Profit (PAT) rose 28% YoY to ₹75.2 crore compared to ₹58.7 crore in the previous year's quarter.
- Approved a significant ₹218 crore capital expenditure for the expansion of the Machine Building Division.
- Allocated ₹22.6 crore for a new Machining Shop and increased Dahej SEZ investment to ₹110 crore.
- Re-appointed Aditya Puri as Managing Director and Kishore Chatnani as Joint MD & CFO for 5-year terms.
CRISIL has reaffirmed the credit ratings for Isgec Titan Metal Fabricators Private Limited, a subsidiary and joint venture of ISGEC Heavy Engineering. The long-term rating for the Rs 105 crore bank loan facilities remains at 'CRISIL A+/Stable', while the short-term rating is maintained at 'CRISIL A1'. The total rated facilities include Rs 10 crore in fund-based limits and Rs 95 crore in non-fund-based limits. This reaffirmation indicates a stable credit profile and consistent financial standing for the subsidiary.
- CRISIL reaffirmed the long-term rating of 'CRISIL A+/Stable' for total bank loan facilities of Rs 105 crore.
- Short-term rating for non-fund-based facilities reaffirmed at 'CRISIL A1'.
- Facility mix includes Rs 10 crore cash credit and Rs 80 crore in letter of credit/bank guarantees across multiple banks.
- Specific bank allocations include HDFC Bank (Rs 35 Cr), Kotak Mahindra Bank (Rs 35 Cr), and IDFC First Bank (Rs 20 Cr).
ISGEC Heavy Engineering Limited has announced its earnings conference call to discuss the financial results for the quarter and nine months ended December 31, 2025. The call is scheduled for February 10, 2026, at 16:00 hrs IST and will be hosted by ICICI Securities. Senior management, including the Managing Director and CFO, will be present to address analyst queries. This is a routine but important event for investors to understand the company's recent operational performance and future guidance.
- Conference call date set for Tuesday, February 10, 2026, at 4:00 PM IST
- Management representation includes MD Mr. Aditya Puri and Joint MD & CFO Mr. Kishore Chatnani
- Focus on financial results for the quarter and nine months ended December 31, 2025
- Universal dial-in numbers provided: +91 22 6280 1144 and +91 22 7115 8045
- International toll-free numbers available for USA, UK, Singapore, and Hong Kong
ISGEC Heavy Engineering has filed its quarterly Reconciliation of Share Capital Audit Report for the period ended December 31, 2025. The report confirms that the company's total issued and listed capital remains stable at 73,529,510 equity shares. A high level of dematerialization is maintained, with 98.94% of shares held electronically. The audit reported no discrepancies between the issued, listed, and total capital, and no demat requests were pending beyond the statutory 21-day period.
- Total issued and listed capital remains unchanged at 7,35,29,510 equity shares with a face value of Re. 1 each.
- 92.98% of shares are held in NSDL, 5.96% in CDSL, and only 1.06% (7,76,790 shares) remain in physical form.
- Zero demat requests were confirmed after 21 days or remained pending beyond the 21-day limit.
- No changes in share capital occurred during the quarter via rights, bonus, ESOPs, or buybacks.
- The Register of Members is confirmed to be updated as of the quarter end.
ISGEC Heavy Engineering Limited has filed its quarterly compliance certificate for the period ending December 31, 2025, as per SEBI regulations. The certificate from Alankit Assignments Limited confirms that physical share certificates received for dematerialization have been duly processed. These certificates were mutilated and cancelled after verification, with the depository's name updated in the company's records. This is a standard administrative procedure ensuring the integrity of the shareholding records.
- Quarterly compliance certificate submitted for the period ending December 31, 2025.
- Issued by Registrar and Share Transfer Agent (RTA) Alankit Assignments Limited.
- Confirms physical share certificates were mutilated and cancelled after dematerialization.
- Ensures depository names are correctly substituted in the company's records.
Financial Performance
Revenue Growth by Segment
Consolidated total income grew 3% YoY to INR 1,725 crores in Q2 FY26, driven by standalone growth and Saraswati Sugar Mills. The project business holds an order book of INR 6,004 crores, while the manufacturing segment holds INR 2,785 crores. Eagle Press (Canada) saw a 36.3% revenue increase to INR 104.99 crores from INR 77.01 crores.
Geographic Revenue Split
Exports are a major driver, contributing 68% of total order bookings during FY25. The United States remains a primary market for the Eagle Press subsidiary, while the company maintains a presence in Canada, Mexico, and the Philippines (via CBPI assets).
Profitability Margins
Consolidated PBT from continuing operations increased 16% to INR 136 crores in Q2 FY26. Standalone OPM has shown a steady recovery from 4.0% in FY22 to 6.4% in FY23, reaching 7.6% in H1 FY24 and approximately 8.9% by 9M FY25 due to a higher mix of manufacturing and sugar/ethanol revenue.
EBITDA Margin
Consolidated OPBDIT/OI improved from 5.3% in FY22 to 7.1% in FY23 and reached 8.3% in H1 FY24. This 300 bps improvement over two years is attributed to the reduction of legacy low-margin fixed-price contracts and better pricing power in new orders.
Capital Expenditure
The company is investing INR 87 crores in a two-phase expansion at Dahej SEZ for skids and modules. Phase 1 involves INR 65 crores (expected revenue INR 160 crores) and Phase 2 involves INR 22 crores (incremental revenue to INR 275 crores).
Credit Rating & Borrowing
Maintains a 'Stable' outlook from ICRA. Total debt/OPBDIT improved significantly from 4.3x in FY22 to 2.0x in H1 FY24. Standalone net borrowings stood at INR 429 crores as of September 2025, up from INR 96 crores in March 2025 due to working capital needs.
Operational Drivers
Raw Materials
Steel and various bought-out components constitute the primary raw material costs. These are critical as they represent a significant portion of the cost structure for heavy engineering and EPC projects.
Import Sources
Not specifically disclosed, though the company operates globally with subsidiaries in Canada (Eagle Press) and Singapore (ISGEC Investments Pte Ltd), suggesting global procurement for specialized components.
Capacity Expansion
Expanding manufacturing of skids and modules at Dahej SEZ to reach a total revenue potential of INR 275 crores upon completion of Phase 2. Eagle Press shops are currently expected to operate at full capacity due to strong order bookings.
Raw Material Costs
Raw material volatility poses a risk to the 18-24 month execution cycle of fixed-price EPC contracts. Profitability in FY22 was adversely hit when OPM dropped to 4.0% due to commodity price headwinds, but has since recovered as newer contracts factor in higher input prices.
Manufacturing Efficiency
Capacities at ISGEC Hitachi Zosen were fully utilized for most of FY25 except Q1. The company is focusing on 'sophisticated equipment' orders to drive higher value per man-hour.
Logistics & Distribution
The company faces risks from client-side delays; for instance, ISGEC Hitachi Zosen's profits were capped because clients deferred the dispatch of finished equipment due to site unreadiness.
Strategic Growth
Expected Growth Rate
15-18%
Growth Strategy
Growth is targeted through the expansion into high-margin skids and modules (INR 275 Cr revenue potential), increasing export contributions (currently 68% of bookings), and leveraging JVs like ISGEC Hitachi Zosen. The company is also divesting non-core loss-making assets like Bioeq Energy to focus on core engineering.
Products & Services
Heavy engineering equipment, EPC turnkey services, boilers, pressurized vessels, sugar, ethanol, skids, modules, and automotive presses.
Brand Portfolio
ISGEC, Saraswati Sugar Mills, Eagle Press, ISGEC Hitachi Zosen, ISGEC Titan, ISGEC SFW Boilers.
New Products/Services
Expansion into skids and modules manufacturing at Dahej is expected to contribute INR 275 crores to annual revenue upon full completion.
Market Expansion
Targeting the Steel and Cement sectors for equipment orders. Expanding automotive industry presence in Canada, USA, and Mexico through Eagle Press.
Market Share & Ranking
Leading market position in several capital goods categories and a leading EPC player in India.
Strategic Alliances
Key JVs include Hitachi Zosen Corp (51% ISGEC), Sumitomo SHI FW (51% ISGEC), and Titan Metal Fabricators (51% ISGEC). Strategic partnerships exist with BabcockPower USA and Riley Power USA.
External Factors
Industry Trends
The industry is shifting toward cleaner fuels and renewable energy. ISGEC is positioning itself by increasing renewable energy use and providing equipment for 'comparatively clean fuel' transitions (RLNG).
Competitive Landscape
Faces intense competition from both domestic and international EPC players, which historically limited operating margins to the 4-8% range.
Competitive Moat
Moat is built on long-standing technology JVs with global leaders (Hitachi, Sumitomo) and a diversified order book of INR 8,789 crores, which provides revenue visibility for 18-24 months.
Macro Economic Sensitivity
Highly sensitive to industrial CapEx cycles in the Steel, Cement, and Power sectors. Domestic weakness in FY25 led to project deferrals.
Consumer Behavior
Industrial customers are increasingly deferring projects during periods of domestic economic uncertainty, as seen in the weak domestic market of FY25.
Geopolitical Risks
US Tariffs on Canada currently do not impact Eagle Press products, but remain a monitored risk as the USA is a main market.
Regulatory & Governance
Industry Regulations
Sugar and ethanol business margins are highly vulnerable to changes in Government of India policies regarding pricing and blending mandates.
Environmental Compliance
Implementing STP cum ETP systems for waste water management and reusing scrap to promote a circular economy.
Legal Contingencies
The company was involved in arbitration with Cavite Biofuels Producers Inc (CBPI), leading to the acquisition of its assets in 2019; it is currently attempting to sell these assets after a buyer failed to make payments.
Risk Analysis
Key Uncertainties
The primary uncertainty is the successful divestment of discontinued operations (Bioeq), which currently drags down consolidated PAT (down 41.7% in Q2 FY26).
Geographic Concentration Risk
68% of new orders are from exports, creating high sensitivity to global trade conditions and international project execution risks.
Third Party Dependencies
Dependency on JV partners like Hitachi Zosen and Sumitomo for specialized technology and design engineering.
Technology Obsolescence Risk
Mitigated through continuous strategic technology partnerships with global engineering firms.
Credit & Counterparty Risk
Risk highlighted by the failure of the buyer for the Singapore/Cayman subsidiary to complete payments, impacting the company's liquidity and profit realization.