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ISGEC Heavy Engineering announced its financial results for the fiscal year ending March 31, 2026, revealing robust growth in its standalone operations. The company's standalone revenue increased to ₹5,228.63 crore from ₹5,018.26 crore in the previous year. Standalone profit saw a significant rise to ₹346.75 crore, up from ₹293.74 crore in FY25.
On a consolidated basis, revenue grew to ₹6,789.26 crore from ₹6,425.01 crore. However, consolidated profit for the year decreased to ₹154.04 crore, compared to ₹204.39 crore in the prior year.
A one-time provision increase for employee benefits, related to new Labour Codes, impacted results by ₹14.03 crore on a standalone basis and ₹16.49 crore on a consolidated basis.
The strong performance in standalone operations highlights healthy business activity. Shareholders are set to benefit from a recommended dividend of ₹6 per equity share, pending AGM approval. The company is also investing ₹25 crore to expand its Steel Castings division in Muzaffarnagar, Uttar Pradesh, aiming to add 1100 MT capacity by June 2027.
Investors will want to watch the performance of the consolidated subsidiary, especially as the company approved a corporate guarantee of up to ₹65.50 crore for Isgec Titan Metal Fabricators Private Limited to support its working capital needs. Understanding the reasons behind the consolidated profit decline remains key.
For the fiscal year ended March 31, 2025, ISGEC Heavy Engineering had reported standalone revenue of ₹5,018.26 crore and a standalone profit of ₹293.74 crore. Consolidated revenue stood at ₹6,425.01 crore with a profit of ₹204.39 crore.
Future focus will be on the subsidiary's financial health, the progress of the capacity expansion project, and efforts to enhance overall consolidated profitability.