Isgec Heavy Engineering Limited has reported a 3% increase in consolidated revenue to INR 1,725 crores for the quarter ended September 2025, with its order book growing to INR 8,789 crores. The company's performance was driven by strong results across its manufacturing and project segments.

Financial Highlights

• Consolidated revenue: INR 1,725.00 crores (3% increase)
• Consolidated profit before tax from continuing operations: INR 136.00 crores (16% increase)
• Order book: INR 8,789.00 crores

Key Developments

New Facility Investment

The company's Board has approved an investment of INR 87.00 crores for setting up a new facility for manufacturing skids and modules at their existing land within the Dahej Special Economic Zone (SEZ). This investment will be made in two phases:

• Phase 1: INR 65.00 crores
• Phase 2: INR 22.00 crores

Upon completion, the new facility is expected to generate:

• Phase 1: Annual revenue of INR 160.00 crores
• Phase 2: Increased annual revenue of INR 275.00 crores

Order Book Analysis

The consolidated order book of INR 8,789.00 crores is well-diversified across various sectors and customers:

Notably, 26% of the consolidated order book is from exports, indicating a strong international presence.

Sector-wise Performance

Isgec Heavy Engineering is experiencing growth across most of its product lines, with strong demand from sectors such as:

• Metals (including steel)
• Oil and gas
• Automobiles
• Cement
• Core infrastructure

However, the company noted a muted demand for air pollution control equipment, particularly FGDs, due to recent government guidelines.

Future Outlook

The company remains optimistic about its future prospects, citing:

• Robust inquiry positions, including increased export inquiries
• Ongoing expansion of manufacturing capacity for various product lines
• Expected completion of the new manufacturing facility at Bhartoli by July 2026, with potential additional annual revenue of INR 225.00 crores

Isgec Heavy Engineering's management expressed confidence in the company's diverse portfolio and strategic investments, positioning it well to capitalize on the growing demand in the capital goods sector.

As the company continues to focus on high-growth areas and expand its manufacturing capabilities, it aims to strengthen its market position and drive sustainable growth in the coming years.

Isgec Heavy Engineering , a prominent player in the engineering and manufacturing sector, has reported mixed financial results for the second quarter while announcing strategic expansion plans.

Financial Performance

The company's financial results for the quarter and half-year show a mixed picture:

While the quarterly net profit showed a marginal increase of 0.67%, the half-yearly profit experienced a slight decline of 0.55% compared to the previous year.

Strategic Decisions

The Board of Directors has approved several significant strategic decisions:

1. New Subsidiary: The company plans to incorporate a wholly-owned subsidiary in Eswatini, marking its expansion into the African market.

2. Capital Investment: A capital investment of Rs 87 crores has been sanctioned for a Skid Modular Shop at the SEZ Dahej Factory, indicating the company's focus on enhancing its manufacturing capabilities.

3. Support for Canadian Subsidiary: The Board has approved providing a CAD 2 million standby letter of credit to its Canadian subsidiary, Eagle Press Equipment, demonstrating its commitment to supporting international operations.

Implications and Outlook

These strategic moves suggest that Isgec Heavy Engineering is focusing on geographical expansion and strengthening its manufacturing infrastructure. The establishment of a subsidiary in Eswatini could potentially open up new markets in Africa, while the investment in the Skid Modular Shop may enhance the company's production capabilities.

The financial support extended to the Canadian subsidiary indicates the company's continued focus on its international presence, particularly in North America through Eagle Press Equipment.

While the quarterly results show a slight improvement, the marginal decline in half-yearly profit underscores the challenging business environment. However, the company's strategic decisions reflect a proactive approach to growth and market expansion, which could potentially drive future performance.

Investors and stakeholders will likely be watching closely to see how these strategic moves impact the company's financial performance in the coming quarters.