Isgec Heavy Engineering Q1 Results: Revenue Surges 46% YoY, EBITDA Margin Contracts to 6.24%
Isgec Heavy Engineering reported Q1FY27 consolidated revenue of 19.8B Rupees versus 13.6B Rupees YoY, with standalone net profit rising 6% to ₹92.02 crore. Consolidated EBITDA stood at 1.23B Rupees with margin contracting to 6.24% from 9.14% YoY, reflecting segment-level pressures including losses from Philippine ethanol operations.

*this image is generated using AI for illustrative purposes only.
Isgec Heavy Engineering Limited reported a 6% year-on-year increase in standalone net profit to ₹92.02 crore for the quarter ended June 30, 2026 (Q1FY27), while consolidated net profit rose to 89M Rupees compared to 69M Rupees in the same period of the previous year. The Board of Directors, meeting on August 11, 2026, approved the unaudited financial results and reaffirmed a recommended dividend of ₹6 per equity share, subject to shareholder approval at the Annual General Meeting scheduled for September 28, 2026.
The standalone revenue from operations grew 58% to ₹1,553.04 crore, compared to ₹983.80 crore in the corresponding quarter of the previous year. Consolidated revenue increased 46% to 19.8B Rupees from 13.6B Rupees. The statutory auditors, SCV & Co. LLP, issued a limited review report on the financial statements pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Financial Performance
The company's profitability improved across both standalone and consolidated metrics. Standalone earnings per share (EPS) stood at ₹12.52, up from ₹11.78 in Q1FY26. Consolidated EPS was ₹1.22, compared to ₹0.94 in the prior year period. The record date for the dividend has been fixed as September 21, 2026, with payments expected by October 26, 2026. On the operational profitability front, consolidated EBITDA came in at 1.23B Rupees versus 1.24B Rupees in the same period of the previous year, with the EBITDA margin contracting to 6.24% from 9.14% year-on-year. The following table summarises key financial metrics across reporting bases:
| Metric | Q1FY27 | Q1FY26 |
|---|---|---|
| Consolidated Revenue (B Rupees) | 19.8B | 13.6B |
| Standalone Revenue (₹ crore) | 1,553.04 | 983.80 |
| Consolidated Net Profit (M Rupees) | 89M | 69M |
| Standalone Net Profit (₹ crore) | 92.02 | 86.59 |
| Consolidated EBITDA (B Rupees) | 1.23B | 1.24B |
| EBITDA Margin (%) | 6.24% | 9.14% |
| Standalone EPS (₹) | 12.52 | 11.78 |
| Consolidated EPS (₹) | 1.22 | 0.94 |
Segment-wise Contribution
The Industrial Projects segment remained the primary revenue driver, contributing ₹1,096.21 crore to standalone revenue and ₹1,103.83 crore to consolidated revenue. The Manufacturing of Machinery and Equipment segment generated ₹564.20 crore in standalone revenue and ₹796.59 crore in consolidated revenue. In the consolidated structure, the Sugar segment contributed ₹128.75 crore, while the Ethanol Plant at Philippines recorded ₹69.59 crore in revenue but incurred a segment loss of ₹62.47 crore.
What the Numbers Show
A significant divergence exists between standalone and consolidated profitability due to specific transactional gains and segment losses. While standalone operations delivered a robust profit of ₹92.02 crore, the consolidated net profit of 89M Rupees reflects the impact of losses in the Philippine ethanol operations and inter-segment adjustments. The contraction in EBITDA margin to 6.24% from 9.14% year-on-year further reflects these pressures at the consolidated level, even as top-line growth remained strong. However, the consolidated bottom line was bolstered by a one-time gain of ₹373 lakhs arising from the dilution of the company's equity stake in SFW Isgec Energy Private Limited from 51% to 26%, effective June 25, 2026. This transaction resulted in the entity being reclassified from a subsidiary to an associate under Ind AS 28.
Regulatory and Other Disclosures
The financial results were prepared in accordance with Ind AS 34 and reviewed by the Audit Committee before board approval. The company noted that comparative figures for the quarter ended March 31, 2026, are balancing figures between audited full-year data and published year-to-date figures. Additionally, the company recognized a one-time exceptional item of ₹14.03 crore in the previous financial year related to employee benefit provisions under the new Labour Codes, which did not impact the current quarter's exceptional items.
Historical Stock Returns for Isgec Heavy Engineering
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.07% | -3.81% | -10.56% | -13.32% | -23.22% | +6.80% |
How will the reclassification of SFW Isgec Energy from a subsidiary to an associate impact future consolidated revenue recognition and earnings volatility?
What specific operational strategies is Isgec implementing to reverse the contraction in consolidated EBITDA margins from 9.14% to 6.24%?
Given the significant segment loss at the Philippine Ethanol Plant, does management plan to divest, restructure, or inject further capital into this operation?


































