Ador Welding , a leading player in the welding industry, has announced its unaudited financial results for the second quarter and half-year ended September 30, 2025, showcasing a remarkable turnaround in profitability.

Financial Highlights

The company reported a significant improvement in its financial performance for Q2 FY26:

Ador Welding's revenue from operations grew by 4.6% year-over-year to Rs 28,000.00 lakhs in Q2 FY26, up from Rs 26,776.00 lakhs in the same quarter last year. The company's net profit showed a remarkable turnaround, reaching Rs 2,562.00 lakhs compared to a loss of Rs 1,609.00 lakhs in Q2 FY25.

Segment Performance

The company operates in two main segments:

1. Welding: This segment contributed Rs 27,087.00 lakhs to the revenue in Q2 FY26.
2. Flares & Process Equipment: This division generated revenue of Rs 921.00 lakhs in the same quarter.

Challenges and Provisions

The Flares & Process Equipment division faced challenges with a turnkey project that encountered delays. As a result, the company made provisions in the previous quarter:

• Rs 1,293.00 lakhs for cost overruns
• Rs 1,499.00 lakhs for potential liquidated damages

Half-Year Performance

For the half-year ended September 30, 2025:

• Revenue stood at Rs 53,054.00 lakhs
• Net profit reached Rs 2,216.00 lakhs

Employee Stock Option Plan

The Nomination and Remuneration Committee approved 29,500 stock options under the Ador Employee Stock Option Plan 2025, with an exercise price of Rs 10.00 per option.

Legal Matter

Ador Welding is currently facing a Bureau of Indian Standards compounding matter involving Rs 3,643.00 lakhs, which is under legal challenge. The company has filed a Writ Petition in the Bombay High Court and obtained a stay order. No provision has been made for this amount as the final compounding amount is yet to be determined.

Ador Welding's robust Q2 FY26 results demonstrate the company's resilience and ability to navigate challenges while delivering strong financial performance. The significant turnaround in profitability and growth in revenue indicate positive momentum for the company in the current fiscal year.

Ador Welding , a leading player in the welding industry, has reported a challenging first quarter, with a significant decline in financial performance and unexpected project-related costs.

Revenue and Profitability

For the quarter ended June 30, Ador Welding recorded a revenue from operations of ₹25,054.00 lakhs, down from ₹26,815.00 lakhs in the same period last year, marking a year-over-year decline. The company's performance took a sharp turn, posting a net loss of ₹346.00 lakhs, compared to a profit of ₹2,077.00 lakhs in the corresponding quarter of the previous year.

Segment Performance

Ador Welding's financial results are divided into two main segments:

1. Welding: This segment generated revenue of ₹23,682.00 lakhs with segment results of ₹3,445.00 lakhs.
2. Flares & Process Equipment: This segment reported revenue of ₹1,372.00 lakhs but posted negative segment results of ₹3,411.00 lakhs.

Project-Related Provisions

A significant factor impacting the quarterly results was the recognition of substantial provisions related to an ongoing turnkey project in the Flares & Process Equipment segment. The company made provisions totaling ₹2,792.00 lakhs, broken down as follows:

These provisions were made due to project delays caused by a combination of operational and external challenges. The project, which commenced in 2022-23 and was targeted for completion by June 2025, has encountered delays.

Earnings Per Share

The basic earnings per share stood at negative ₹1.99 compared to positive ₹15.27 in the previous year quarter.

Outlook

Ador Welding faces challenges in the near term, particularly in managing the costs and timelines of its Flares & Process Equipment project. The company's focus on its core welding business and efforts to optimize project execution will be crucial for its performance in the coming quarters.

Investors and stakeholders will be closely watching how Ador Welding navigates these challenges and works towards returning to profitability in the subsequent quarters.