ISGEC Heavy Engineering reported FY26 standalone revenue of ₹5,229 crore. The company also declared a dividend of ₹6 per share, a 20% increase. The Philippines ethanol plant turned cash-positive, and the order book stands at ~₹7,000 crore.
ISGEC Heavy Engineering Ltd has reported standalone revenue of ₹5,229 crore and standalone Profit Before Tax (PBT) of ₹455 crore for FY26. Reader Takeaway: Positive operational turnaround in Philippines plant; watch input cost pressures. ## What just happened ISGEC Heavy Engineering announced its financial results for the fiscal year ending March 31, 2026. Key highlights include standalone revenue of ₹5,229 crore, marking a 4.2% year-on-year growth. The company reported a standalone PBT of ₹455 crore, which included ₹80 crore from non-operational items, with the underlying operational PBT at ₹375 crore. Consolidated EBITDA increased by 19% year-on-year to ₹671 crore, though consolidated Profit After Tax (PAT) saw a 25% decrease to ₹154 crore. The company's manufacturing EBIT margins were 12.46%, within its guided range of 12-13%. The project business recorded an EBIT margin of 4.58%, with expectations of improvement to 5.5% in FY27. The Philippines ethanol plant, now reclassified to continuing operations, commenced production in December 2025 and became cash-positive by late March 2026, requiring no further parent funding. ## Why this matters The results indicate a mixed performance with growth in revenue and EBITDA but a decline in PAT. The operational turnaround of the Philippines plant is a positive development, reducing financial strain. A strong opening order book of approximately ₹7,000 crore for FY27 provides revenue visibility. The company also announced a dividend of ₹6 per share, a 20% increase, signalling confidence and commitment to shareholder returns. ## The backstory The Philippines ethanol plant was previously an asset held for sale. Its reclassification and current cash-positive status mark a significant shift. The company has also focused on realizing retention money related to FGD projects, with over ₹200 crore collected in Q4 FY26. ## What changes now With the Philippines plant self-sustaining, the parent company's financial burden is reduced. Management anticipates improved margins in the project business as older, lower-margin projects conclude. The company is guiding for 10-12% standalone revenue growth in FY27. ## Risks to watch Rising input costs for steel castings, forgings, chemicals, and imported materials are a concern. Management aims to absorb these through contingencies. The complexity in reporting due to the Philippines business reclassification and auditor notes on subsidiary capital deficiency are also points to monitor. ## Peer comparison While specific peer comparisons are not detailed in the filing, ISGEC operates in engineering and heavy manufacturing sectors, competing with companies involved in sugar, paper, cement, and power equipment. Its manufacturing margins are generally seen as healthy within the industry. ## Context metrics (time-bound) * Standalone Revenue FY26: ₹5,229 crore (4.2% YoY growth) * Consolidated EBITDA FY26: ₹671 crore (19% YoY growth) * Consolidated PAT FY26: ₹154 crore (25% YoY decrease) * Consolidated Net Borrowings (Mar 31, 2026): ₹476 crore (down from ₹836 crore) * Opening Order Book FY27: ~₹7,000 crore * Dividend: ₹6 per share (20% increase) ## What to track next Investors should track the execution of new orders, the expected improvement in project business margins to 5.5%, the collection of the remaining ₹165 crore in FGD retention money by August, and the sustained operational performance of the Philippines ethanol plant.
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