Admach commits to cross Rs 100 crore revenue during FY27

Admach Systems Limited, or Admach, expects to execute Rs 65 crore to Rs 70 crore from its Rs 77.42 crore order book before FY27 ends and has committed to cross Rs 100 crore of revenue in FY27. Management said many projects are already under testing and nearing dispatch, supporting the stated conversion timetable.

How much of Admach’s order book will be executed by FY27-end?

Admach expects Rs 65 crore to Rs 70 crore of its Rs 77.42 crore order book to be executed before the end of FY27. That stated range represents roughly 84% to 90% of the reported backlog, and management linked the pace to projects that are almost ready, are under testing and are expected to be dispatched soon.

The company later described the expected completion level as about 80% by the end of March. The Rs 65 crore to Rs 70 crore range is the more specific indication, while the later 80% description shows that the final conversion outcome depends on project completion and dispatch timing. Management said the current quarter was also expected to be good from a revenue perspective.

Why does Admach expect revenue above Rs 100 crore in FY27?

Admach has committed to crossing Rs 100 crore of revenue in FY27, rather than formally committing to the higher revenue outcome proposed by an analyst. Management said revenue could be higher if execution proceeds smoothly, but its explicit commitment remained to exceed Rs 100 crore. This outlook follows H1 FY27 revenue from operations of Rs 42.2 crore.

H1 FY27 revenue increased 48.34% year on year to Rs 42.2 crore, while earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 47.62% to Rs 9.95 crore. Profit after tax increased 45.91% to Rs 6.53 crore. The order-book conversion plan would turn a substantial proportion of the Rs 77.42 crore backlog into FY27 revenue after the first-half result.

Management was asked whether backlog execution implied growth beyond an earlier approximate 40% expectation. Its response did not provide a revised percentage growth target. Instead, Admach set a revenue floor of more than Rs 100 crore for FY27 and retained the possibility of additional revenue only as a conditional outcome if projects move smoothly.

What is supporting Admach’s near-term project dispatches?

Projects that are almost ready and under testing are the stated reason Admach expects most of its current order book to convert before FY27-end. Management said these projects would be dispatched soon, placing manufacturing completion, testing and delivery at the centre of the near-term revenue plan rather than relying solely on future order inflows.

Admach also said it had shifted some component manufacturing in house after purchasing equipment. Components previously offloaded to vendor partners are now being made internally, according to management, reducing time, transportation and vendor payouts. Management attributed the H1 FY27 EBITDA margin of around 23% to this change and said the margin should be maintained in H2 FY27, possibly slightly better but not lower.

The company’s current capital expenditure, or capex, plan was estimated by management at around Rs 15 crore to Rs 16 crore in FY27. Management said the investment includes infrastructure improvements, a shed and power and testing facilities. In a separate explanation, Admach said about 60% of the reported capex was related to plant and machinery and about 40% to factory-building work.

Will Admach rebuild its order book for FY28?

Admach expects to have a good order-book build-up again by March 31, according to management. The company said many projects were in the pipeline or at finalisation stages, with commercial negotiations under way. This is a management expectation, not a disclosed value for orders that have already been awarded.

In nuclear work, Admach said it had executed a Rs 10.62 crore order from Nuclear Fuel Complex under the Department of Atomic Energy. Management said it was working in three additional areas with Nuclear Fuel Complex and that work could move from technical discussions to commercial stages, although it did not disclose equipment details because of contractual obligations.

Management also said it was working on two or three projects that European partners would normally have executed in Europe. It attributed this opportunity to challenges faced by European partners and competition from Chinese competitors. Separately, Admach said it was developing two import-substitute products, one for steel and one for nuclear applications, and expected a launch in about three to three-and-a-half months.

What could Admach’s FY27 revenue mix look like?

Admach said steel would account for more or less 50% of revenue if FY27 turnover reaches Rs 100 crore. Management agreed with the suggestion that the remaining 50% would come from non-steel activities including non-destructive testing, or NDT, and nuclear. This is an indicative revenue-mix comment tied to the Rs 100 crore turnover scenario.

The stated mix places NDT and nuclear activities alongside steel at a similar combined share under the Rs 100 crore scenario. Admach described NDT systems as equipment used mainly to check defects, while it continues to pursue nuclear opportunities that match its technical capabilities, qualification requirements and execution strengths.

For FY28, management said its growth trajectory would remain constant and would not decline, with volume increasing. It also said it was confident that the growth pattern seen from FY25 to FY26 and from FY26 to FY27 would be replicated in FY28. No numerical FY28 revenue target or order-book target was provided during the call.

Conclusion

Admach’s FY27 revenue commitment rests on converting Rs 65 crore to Rs 70 crore of a Rs 77.42 crore order book, with projects already under testing identified as the operational basis for the timetable. The plan follows H1 FY27 revenue of Rs 42.2 crore, up 48.34% year on year, and combines backlog execution with in-house manufacturing changes that management said supported an EBITDA margin of around 23%.

The next points to watch are whether expected dispatches occur before FY27-end and whether Admach rebuilds its backlog by March 31 as management expects. Management also plans infrastructure-related capex of around Rs 15 crore to Rs 16 crore in FY27 and expects two products, one in steel and one in nuclear, to launch in about three to three-and-a-half months.