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Goodluck India hosted a
conference call on Feb 16, 2026. In the conference call the company was
represented by Mahesh Chandra Garg, Chairman;
Ram Agarwal, CEO and Sanjay Bansal, CFO.
Key takeaways of the call
Volume sales for Q3FY26 &
9mFY26 was up 8.2% (to 120196 MT) and 11% (to 345874 MT) respectively.
Achieved a major milestone in the
Defence vertical, production successfully commenced at GDAL (subsidiary) with
first order completed and ready for dispatch, awaiting necessary
permissions.
Strong order visibility in Defence for FY27,
reflecting growing opportunities in indigenous manufacturing and a strengthened
presence in high-value strategic sectors. See strong structured demand for this
segment. Expect meaningful contribution
to margin going forward. Have order for 8 months in hand and 2 years of LOI for
aerospace and defence segment. Critical forging parts for aerospace.
Precision Pipes & Automobile
Tubes – Continuing focus on enhancing product mix, expanding OEM relationships,
and driving value-added offerings. Recent US tariff easing brings renewed
optimism in global markets, expected to boost volumes and profitability in
coming quarters. Auto tubes – Anticipate strong order flow with easing of US
tariff.
Engineering Structures – Successfully
completed one bullet train project on schedule, well-positioned for upcoming
high-speed rail and large-scale infrastructure projects. Segment benefits from
strong nationwide infrastructure momentum, 7 new bullet train corridors
announced in recent Union Budget expected to significantly boost participation.
For solar renewable the company
supplies solar structures and transmission tubes. With strong renewable
capacity addition during current fiscal the company has done strong sales numbers
this fiscal from this sunrise sector. Expect to cross Rs 600- 700 crore of business
next year from this sunrise sector.
Total capacity currently stands
at 5,00,000 MTPA (of which high-margin
value added products capacity was 285,000
MTPA comprising 170000 MTPA for precision pipes & automobiles, 30000 MTPA
for forgings and 85000 mtpa for engineering structures & fabrication; high-volume
products (CR Sheets & pipes) capacity was 215,000 MTPA). The defence (Artillery
Shells at subsidiary GDAL) capacity was 1,50,000 shells. By next
quarter 90% capacity will be utilized. The
company is expanding the GDAL capacity from 150000 to 400000 at an outlay of Rs
400 crore partly funded by debt (40%) and equity (60%). Revenue from incremental defence capacity will
start from April 2027.
Of the 9mFY26 sales 74% is from
domestic market and 26% from exports. In
terms of products the revenue mix was value added products 63%[23% engineering
structures & fabrication, 25% precision pipes & auto tubes, 15%
forgings] and high volume products (CR Sheet & Pipes) 37%.
Trying to rampup the large dia
pipes volume and add hydraulic tubes to the product basket.
Better product mix with higher
contribution of value added products, efficiency and high volume has led to
margin expansion.
Completed 90% of bullet train
order and balance will be completed by March 2026.
Capacity utilization in Q3FY26
stood at 92%.
Scaling defence business,
increasing share of value added products in the total revenue mix and maintaining
strict cost discipline are to drive profitability going forward for the
company.
Hydraulic tubes the capacity utilization
is 42% and that will go up to over 60% with US tariff going off.
For FY26 the revenue growth guidance
of 15-20% is maintained.
EBITDA per tone in Q3FY26 was about
Rs 8200.
Expected revenue of GDAL at
current capacity of 150000 shells is about Rs 300 crore and with augmented
capacity, the revenue will go up to Rs 800 crore for artillery and Rs 200 crore
for aerospace. The EBITDA margin 30-35%
of EBITDA margin is expected for GDAL.
Production is already on and
awaiting final permission for dispatch and that comes from GOI the revenue will
start flow in. GDAL is expected to contribute Rs 60 crore of
revenue in Q4FY26. From Q1FY27 the revenue will be on fully basis.
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