Admach Says European Partners Are Shifting Projects to India

Admach Systems Limited said European partners have shifted two or three projects to its Indian operations that they would normally execute in Europe. Managing Director Ajay Longani attributed the change to European operating pressures and Chinese competition. The disclosure came as Admach reported H1 FY27 revenue from operations up 48.34% year on year to Rs 42.2 crore.

What European projects are moving to Admach?

Admach is working on two or three projects normally executed by its European partners, according to Longani’s H1 FY27 comments. Management did not identify the products, partner names, project values or delivery dates, so the disclosure confirms active project work but does not quantify the resulting order inflow or revenue.

Admach said its European partners are more inclined to give work to India and work with the company. The two or three projects should not be equated with Admach’s Rs 77.42 crore H1 FY27 order book, because management did not disclose whether they are included in that total or state their individual contribution.

Why are European partners shifting projects to Admach?

Admach attributed the project shift to challenges within Europe and competition from Chinese competitors. Longani said European partners were turning to India because they faced pressures in their home markets as well as Chinese competition, although the H1 FY27 call gave no numerical comparison of European and Indian manufacturing costs.

Management later cited higher European power, gas and petrol costs as factors that had pushed European prices higher. This was management’s explanation for the shift, not an independently disclosed cost analysis, and Admach did not provide partner production volumes, Chinese price data or a forecast for additional European projects.

What import-substitute products is Admach developing?

Admach is developing two products that Indian customers currently import from Europe, with one for steel and one for the nuclear field. Management said the products could be launched within another three to three-and-a-half months from the H1 FY27 earnings call, but did not disclose their names because of contractual constraints.

Admach said the first phase would address the Indian market and a second phase would extend outside India. Management described the equipment as indigenously developed import substitutes and said pricing would compare favourably with European products, but it gave no sales target, selling price, customer commitment, certification detail or export timetable.

Can Admach execute more European work in India?

Admach said its integrated manufacturing setup enables it to design and manufacture customised systems while retaining control over quality and execution. Compared with H1 FY26, H1 FY27 revenue rose 48.34% to Rs 42.2 crore, while earnings before interest, tax, depreciation and amortisation rose 47.62% to Rs 9.95 crore.

Admach is also expanding in-house manufacturing through FY27 capital expenditure of about Rs 15 crore to Rs 16 crore. Management said the programme includes a shed, factory infrastructure, power and testing facilities, and plant and machinery; Account Manager Hanshil Patel said about 60% related to plant and machinery and 40% to buildings and factory infrastructure.

Management linked the H1 FY27 margin improvement to producing components internally that had been outsourced to vendor partners in the previous year. Admach said the in-house process reduced transportation, time and vendor payouts, and Longani said the company expected to maintain earnings before interest, tax, depreciation and amortisation margins above 20% in H2 FY27.

How does the European shift fit Admach’s FY27 plan?

Admach expects to execute about Rs 65 crore to Rs 70 crore of its Rs 77.42 crore order book before the end of FY27. In another response, Longani said about 80% of the order book should be executed by end-March, with several projects nearly ready, under testing and expected to be dispatched soon.

The execution target applies to the overall order book rather than specifically to the two or three European-partner projects. Management also said it would have a good order-book build-up by March 31 as projects in the pipeline moved through commercial negotiations, but it did not disclose a target value for that replenished book.

Admach identified nuclear work as another pipeline source, citing its Rs 10.62 crore order from the Nuclear Fuel Complex under the Department of Atomic Energy. Longani said Admach was working in three further Nuclear Fuel Complex areas with different equipment, while government-sector projects can take about two quarters to move through scrutiny and agreements into the commercial stage.

Conclusion

Admach’s disclosure indicates a change in project execution rather than a quantified European order programme. European partners are placing two or three projects in India that they would usually execute in Europe, while Admach is adding internal manufacturing capability and converting a Rs 77.42 crore H1 FY27 order book into revenue.

The next disclosures to watch are the planned launch of the two steel and nuclear import-substitute products within three to three-and-a-half months, execution of Rs 65 crore to Rs 70 crore from the order book before FY27 ends, and progress of nuclear opportunities that management said may take about two quarters to enter the commercial stage.