Batliboi Ltd. Navigates Q2 FY26 with Strong Turnaround and Strategic Growth

Batliboi Limited, a prominent engineering company with a rich legacy in Machine Tools, Air Engineering, and Textile Machinery, has reported a robust recovery in its operational and financial performance for the second quarter of fiscal year 2026. Following a challenging first quarter, the company's consolidated revenue from operations surged to Rs 121 crore, a significant increase from Rs 70 crore in Q1 FY26. This turnaround was also evident in its profitability, with EBITDA rising to Rs 11 crore and the company moving from a PBT (Profit Before Tax) loss of Rs 3 crore in Q1 to a profit of Rs 8 crore in Q2. Net Profit After Tax (PAT) also improved substantially, reaching Rs 6 crore compared to a loss of Rs 2 crore in the previous quarter. This strong performance, as highlighted by management, was driven by improvements across all business segments, despite persistent headwinds in the textile industry.

The company's strategic efforts continue to yield strong order inflows. In the first half of FY26, Batliboi recorded a healthy order inflow of Rs 608.10 crore, with Rs 336.81 crore specifically in Q2 FY26. As of September 2025, the total order backlog stood at an impressive Rs 621.44 crore, positioning the company favorably for sustained growth. This backlog is a testament to the company's diversified portfolio and its ability to secure significant projects across its various divisions. The integration of Batliboi Environmental Engineering Limited (BEEL), effective March 2025, has played a crucial role in leveraging combined strengths and operational synergies, contributing to the improved Q2 performance after initial transitional challenges in Q1.

Segmental Performance and Strategic Focus

Batliboi's diverse business segments each contributed to the overall recovery. The Machine Tools division, including its Canadian subsidiary Quickmill Inc., recorded an order inflow of Rs 72.20 crore in Q2 FY26. Quickmill, which faced weak order inflows and execution delays in 1QFY26 due to US tariff-related concerns, reported a profit of Rs 3.23 crore in Q2, a significant recovery from its Q1 loss. The subsidiary is now expanding its focus to markets beyond the US, including the Gulf region and Saudi Arabia, securing breakthrough orders.

The Air Engineering group reported a revenue of Rs 18 crore in Q2, supported by an improved order inflow of Rs 14.63 crore. This division is also strategically expanding its focus to non-textile sectors such as food, synthetic materials, and factory ventilation, diversifying its revenue streams. The Textile Machinery group, despite facing challenges like US tariff issues, demand recession in EU countries, and political uncertainty in Bangladesh, secured an order inflow of Rs 180.85 crore in Q2, demonstrating resilience and continued demand for its advanced equipment.

Future Growth Avenues and Management Outlook

Batliboi is actively pursuing several strategic initiatives to drive future growth. The company sees a massive opportunity in the global CNC (Computer Numerical Control) Machines Market, which is projected to grow from USD 26 billion in FY18 to USD 51.5 billion by FY27F. This growth trajectory provides a strong tailwind for its Machine Tools division. Furthermore, the Indian apparel and textile industry is witnessing robust growth, fueled by domestic demand, supportive government policies, and Free Trade Agreements, creating significant opportunities for Batliboi's textile-related businesses.

A key long-term strategic foray is into the Green Hydrogen space. The management anticipates this market to reach 5 MMT by FY2030, offering an estimated Rs 8 trillion worth of opportunities. Batliboi is starting with small hydrogen plants for specific industrial applications like pharma and chemicals, aiming to gain experience before scaling up. This move not only positions the company in a high-growth sector but also aligns with global sustainability goals, with an expected aversion of 50 MMT of CO2 emissions.

Management is confident in achieving a sustainable top-line growth of 10-12% and improved profitability for FY26 compared to the previous year. They are committed to achieving order inflows of over Rs 1,000 crore for the full year FY26 and plan a further capex of Rs 8 crore for expansion. A significant financial goal is to become net debt-free by the end of FY26, reflecting disciplined capital allocation and a focus on strengthening the balance sheet. The company's diversified portfolio, strategic partnerships, and expanding international markets, particularly in the Gulf region, Vietnam, Bangladesh, Uzbekistan, and Egypt, are expected to enhance its growth prospects and deliver enhanced shareholder value.

Concluding Thoughts: Strategic Clarity and Sustained Momentum

Batliboi Limited's Q2 FY26 performance underscores its strategic clarity and operational resilience. The company has effectively navigated initial post-merger challenges and external headwinds, demonstrating a strong capacity for recovery and growth. With a healthy order backlog, a diversified business model, and proactive initiatives in high-growth areas like Green Hydrogen and expanding international markets, Batliboi is well-positioned for sustained momentum. The management's transparent communication and clear financial targets for FY26 further reinforce investor confidence in the company's long-term trajectory and value creation potential.