Isgec Heavy Engineering Limited reported higher quarterly earnings and a rise in its order book, while its board approved an additional investment to expand capacity in the Machine Building division. The investment forms part of a phased expansion programme aimed at increasing manufacturing capacity for presses and industrial machinery.
The board approved a further investment of INR 2.18 billion to enhance capacity in the Machine Building division. The investment is expected to be completed around July 2027 and could yield additional annual revenue of about INR 3.75 billion.
This follows an ongoing capacity expansion in the division, expected to be completed by July 2026, which could generate additional annual revenue of INR 2.25 billion. “With both these investments, we hope to increase the revenue for the Machine Building Division from the present INR 4.00 billion per year to about INR 10.00 billion per year,” said Aditya Puri, Managing Director.
The Machine Building division manufactures presses and industrial machinery, including automobile presses and forging presses. The company indicated that some revenue may also come from defence presses and certain equipment in the defence and nuclear areas to be manufactured in the expanded facilities.
Separately, the board approved an investment of INR 226 million to set up a new machining facility for its iron castings business. The facility is intended to internalise machining operations that are currently outsourced and is expected to yield additional value addition of about INR 200 million per annum.
Isgec also revised its investment for a proposed skids and modules manufacturing facility at Dahej Special Economic Zone to INR 1.10 billion from INR 870 million to meet anticipated demand for larger-sized skids and modules from domestic and export markets. The first phase is expected to be completed by March 2027 and the second phase by March 2028.
For the quarter ended 31 December 2025, stand-alone total income rose to INR 13.65 billion from INR 11.28 billion a year earlier, while stand-alone profit before tax increased to INR 990 million from INR 780 million. Consolidated total income increased to INR 17.65 billion from INR 15.00 billion, and consolidated profit before tax from continuing operations rose to INR 1.50 billion from INR 870 million.
Consolidated orders booked during the quarter stood at INR 17.33 billion, compared with INR 15.10 billion in the corresponding period last year. Orders in hand on a consolidated basis were INR 87.09 billion as of 31 December 2025, up from INR 73.34 billion a year earlier. On a stand-alone basis, orders in hand were INR 76.49 billion, including export orders of INR 16.29 billion.
Commenting on margins, Puri said, “We hope to maintain double-digit margins,” while noting that quarterly variations may occur due to execution dynamics.
Isgec Heavy Engineering Limited manufactures capital goods and industrial equipment for sectors including power, sugar, chemicals, oil and gas, and automobiles, and operates through projects and machinery businesses.
