Isgec Heavy Engineering Limited reported a standalone net profit of ₹3,467.5 crore for the financial year ended March 31, 2026, compared to ₹2,937.4 crore in the previous year. Revenue from operations for FY26 stood at ₹52,286.3 crore, up from ₹50,182.6 crore in FY25. The Board of Directors has recommended a dividend of ₹6 per equity share of ₹1 each for the financial year 2025-26, subject to shareholder approval. The company disclosed an investor presentation for Q4 and FY26 on May 29, 2026, highlighting a robust order book of ₹79,840 crore as on March 31, 2026.

Financial Performance

The company's profit before tax for the year increased to ₹4,549.1 crore from ₹3,883 crore in the prior year. For the quarter ended March 31, 2026, revenue from operations was ₹16,748 crore, with a net profit of ₹1,006.2 crore. Statutory auditors M/s. SCV & Co. LLP submitted an audit report with an unmodified opinion on the standalone and consolidated financial results.

Strategic Decisions

The Board approved a capital expenditure of ₹25 crore towards capacity addition for the Steel Castings division at its Muzaffarnagar factory. This investment aims to add an additional 1,100 metric tons of steel castings per annum by June 2027, funded through internal accruals. Additionally, the Board sanctioned the issuance of corporate guarantees not exceeding ₹6,550 crore in favour of banks for its joint venture and subsidiary, Isgec Titan Metal Fabricators Private Limited, to facilitate additional working capital limits.

Segment Performance

The Industrial Projects segment led revenue generation, reporting ₹36,643 crore for the year, while the Manufacturing of Machinery and Equipment segment contributed ₹19,268 crore. The company also revised the composition of its Committee of Directors, inducting Mr. Rajiv Roy Chaudhury to evaluate options for future organic and inorganic growth.

Outlook and Commentary

Management provided guidance for FY27, expecting standalone revenue to increase by 10% to 12%. The opening order book for the year is approximately ₹7,000 crore, excluding cancelled orders worth ₹550 crore. In the first two months of the current quarter, the company booked new orders totaling ₹1,400 crore. Export revenue for FY26 increased to ₹1,169 crore, representing 22% of total revenue, up from ₹532 crore in the previous year. Management expects this increased level of exports to continue, supported by a weaker Indian rupee and strong inquiry pipelines in domestic and export markets.

isgec heavy engineering has reported the imposition of a penalty and a demand for customs duty by the Office of the Commissioner of Customs (NS-V), Maharashtra. The order, received on May 20, 2026, stems from an alleged HSN classification issue concerning goods exported by the company.

Details of the Order

The regulatory filing outlines the specific financial implications of the order. The customs department has alleged that goods were assessable under HSN 87049012, whereas they were previously assessed under HSN 86012000. This discrepancy led to the issuance of the demand and penalty.

Financial Impact

The company has quantified the immediate monetary impact of the order. The total liability includes the principal demand for duty as well as the penalty amount, with interest applicable to the duty demand.

Future Course of Action

In response to the order, Isgec Heavy Engineering Limited has confirmed that it will file an appeal under the Customs Act. The company intends to challenge the demand and penalty through the appellate process.