Admach Systems Limited says nuclear projects exceed prior order

Admach Systems Limited said it is pursuing four to five additional nuclear projects, some larger than its Rs 10.62 crore Nuclear Fuel Complex order. Management said the work covers both similar assignments and different nuclear processes, with government scrutiny and agreements meaning commercial movement can take about two quarters.

What nuclear projects is Admach pursuing?

Admach is pursuing four to five additional nuclear projects that differ from its previously executed Rs 10.62 crore Nuclear Fuel Complex order, with some projects carrying a larger value. Managing Director Ajay Longani said the pipeline includes both similar work and bids from different areas of the nuclear complex involving different processes.

The company did not disclose project values, equipment specifications, counterparties or tender stages for the four to five projects. The indication that some are larger than Rs 10.62 crore is therefore management’s statement rather than a quantified order pipeline or confirmed commercial award value.

Admach also said it had executed one project in one nuclear field and was working in three more areas with the Nuclear Fuel Complex. Management said those areas require equipment different from the earlier supply, but declined to provide further details because of contractual obligations.

When could Admach's nuclear projects become commercial?

Admach said nuclear projects can take about two quarters to materialise because government organisations require scrutiny, agreements and fulfilment of conditions before work enters the commercial stage. Longani gave that timeframe in response to a question on whether the projects could materialise within six months or a year.

The two-quarter timeframe is not a revenue forecast or a disclosed award schedule for all four to five projects. Management said work moves into the commercial zone after the company meets the relevant requirements, and did not identify any project as having received final approval.

Admach reported an order book of Rs 77.42 crore at the latest reporting period and said it expected to execute Rs 65 crore to Rs 70 crore before the end of FY27. Management said many of those projects were nearly ready, under testing or nearing dispatch, but did not disclose the nuclear share of the order book.

The Rs 10.62 crore Nuclear Fuel Complex order is smaller than Admach’s overall Rs 77.42 crore order book, while the additional nuclear opportunities have not been assigned a disclosed pipeline value. The planned Rs 65 crore to Rs 70 crore execution relates to existing orders and should not be read as a nuclear-specific target.

How important is nuclear work to Admach's business?

Admach described the Rs 10.62 crore order from the Nuclear Fuel Complex, which is under the Department of Atomic Energy, as an important milestone in a specialised engineering field. Management said the completed work could strengthen Admach’s credentials as it explores opportunities with the Nuclear Fuel Complex and other nuclear-sector institutions.

Nuclear is one of several operating opportunities identified by Admach, alongside steel processing, defence-related applications, oil and gas, industrial testing and non-destructive testing systems. Non-destructive testing, or NDT, involves inspecting critical components for defects without damaging them; the company did not provide a sector-wise revenue split for H1 FY27.

In H1 FY27, Admach reported revenue from operations of Rs 42.2 crore, up 48.34% year on year. Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 47.62% to Rs 9.95 crore, while profit after tax increased 45.91% to Rs 6.53 crore.

Revenue and EBITDA grew at broadly similar rates in H1 FY27, while profit after tax grew more slowly at 45.91%. Management attributed the overall performance to execution capabilities and demand for specialised engineering solutions, without attributing any of the Rs 42.2 crore revenue to nuclear work.

What supports Admach's nuclear project pursuit?

Admach said its integrated manufacturing setup supports customised engineering work by retaining control over design, manufacturing, quality and execution. Management said it would pursue nuclear opportunities that meet its technical capability, qualification and execution requirements, which are relevant to the scrutiny described for projects taking about two quarters to commercialise.

Management linked an EBITDA margin of about 23% in H1 FY27 to bringing component manufacturing in-house. Components that were outsourced to vendors in the prior year are now made internally, which Longani said reduces time, transportation costs and vendor payouts.

Admach outlined FY27 capital expenditure of about Rs 15 crore to Rs 16 crore for infrastructure improvements, including a new shed focused on power and testing. Account Manager Hanshil Patel said roughly 60% of the reported Rs 11 crore to Rs 12 crore capital expenditure related to plant and machinery, with about 40% related to buildings and factory buildings.

The company did not identify any part of the Rs 15 crore to Rs 16 crore plan as a dedicated nuclear investment. Longani said new machinery also requires power, tooling, raw materials and operating infrastructure, and management did not disclose capacity allocated to nuclear equipment or a completion date for the new shed.

Admach is also developing two import-substitution products, one for steel and one for the nuclear field, according to management. Longani expected them to launch about three to three-and-a-half months after the October 29, 2026 call, initially for India and later outside India, but did not disclose their names, price or expected sales.

Conclusion

Admach’s nuclear activity extends beyond its completed Rs 10.62 crore Nuclear Fuel Complex order into four to five additional projects, including some that management says are larger and involve different processes. The opportunity spans work with the Nuclear Fuel Complex and other nuclear bids, but project values, awards, delivery dates and revenue recognition remain undisclosed.

The next developments to watch are whether scrutiny and agreements move the projects into commercial stages over the roughly two quarters identified by management, and whether the nuclear product planned for launch about three to three-and-a-half months after October 29, 2026 reaches the market. Admach’s planned execution of Rs 65 crore to Rs 70 crore from its Rs 77.42 crore order book before FY27-end will also indicate wider delivery progress.