admach systems has secured a purchase order worth ₹165.20 lakhs from a domestic customer in the Special Steel Industry for the supply of Main System & Automatic Calibration Station. The order is scheduled for execution within 8 to 10 months on a door delivery basis. This new contract reinforces the company's current order book, which stands at ₹76.25 Crores (including GST).

The purchase order entails the supply of Main System & Automatic Calibration Station to a domestic entity. Payment terms are structured against a 100% irrevocable Letter of Credit (LC). The schedule includes a 15% advance against the submission of an Advance Bank Guarantee (ABG), followed by 15% upon layout approval, and 50% against equipment inspection with Proforma Invoice (PI) and taxes. The remaining 10% is due upon material receipt at the site, and the final 10% is payable against installation and commissioning with the submission of a Performance Bank Guarantee (PBG).

Order Details

The disclosure was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the order does not involve any interest from the promoter, promoter group, or group companies in the entity awarding the contract. Furthermore, the transaction does not fall under related party transactions.

Admach Systems Limited reported a 29% year-on-year increase in revenue from operations to INR68.91 crore for the financial year ended March 31, 2026. Profit after tax (PAT) surged 59% to INR10.01 crore, while EBITDA stood at INR13.69 crore. The company attributes this growth to strong execution capabilities, a diversified business model, and rising demand in defense, aerospace, and nuclear sectors. Management has set an EBITDA margin target of above 20% for FY27, supported by recent capital expenditure in backward integration.

Financial Performance

The company’s financial results for FY26 reflect solid operational performance across its key segments. The healthy order book position provides visibility for future growth.

Operational Highlights

Admach Systems specializes in precision engineering, industrial automation, and non-destructive testing (NDT) systems. The company exports to over 28 countries and serves sectors including steel, energy, defense, and automotive. A key differentiator is its presence in strategic sectors such as defense and atomic energy, where its equipment is used for critical applications like missile shell inspection.

The company currently holds an order book of approximately INR65 crore. Management indicated that the pipeline of offers exceeds INR200 crore, with a historical conversion rate of 60% to 65%. Significant inquiries are pending in steel processing, advanced NDT systems, and defense-linked applications.

Strategic Initiatives and Outlook

To enhance margins and reduce working capital requirements, the company has invested in backward integration by installing CNC machines, laser cutting machines, and press brakes. This capex is expected to improve EBITDA margins by 3% to 4% in the coming financial year by reducing outsourcing costs. The manufacturing facility in Pune can currently support revenue up to INR200 crore, with land available for further expansion.

Management expressed confidence in achieving the 20% EBITDA margin target for FY27. The company is also focusing on expanding its direct export capabilities and has secured orders from the US market. Additionally, Admach is targeting growth in the nuclear sector, with an order worth INR10 crore from the Nuclear Fuel Complex and several projects in the pipeline.