Ador Welding starts FY27 with strong profit rebound and steady margin outlook

Q1 FY27 revenue from operations was Rs. 309 crore (+22.9% YoY). Gross profit was Rs. 113 crore with gross margin of 36.5% (-240 bps YoY). EBITDA excluding other income was Rs. 36 crore (+51.8% YoY) with margin of 11.6% (+220 bps). PAT was Rs. 28 crore (vs Q1 FY26 loss of Rs. 3.9 crore) and EPS was Rs. 15.9.

FY26 consolidated revenue from operations was Rs. 1,140.0 crore. EBITDA was Rs. 132.0 crore with EBITDA margin of 11.6%. Profit after tax was Rs. 82.0 crore with PAT margin of 7.2%.

The presentation describes offerings across welding consumables, welding and cutting equipment, industrial maintenance and repair (products and services), and welding and cutting automation.

Management cited an ongoing Rs. 80 crore modernization and expansion capex program, expected to be funded through strong cash generation and a near debt-free balance sheet without additional leverage over the next couple of years.

FY26 includes Rs. 24.8 crore of onerous cost and liquidated damages, described as a one-time provision related to a delayed turnkey project in the Flores and Process Equipment business, including Rs. 9.8 crore cost overruns and Rs. 15.0 crore potential liquidated damages.

FY26 includes a Rs. 14.1 crore reversal of a doubtful-debt provision after recovery of an old litigated receivable from a Kuwait project executed in FY21.

The presentation states the company serves 15 plus countries, with presence across North America, South America, Europe, Middle East and Africa, Central and South Asia, and Australia. It also notes Ador International in Dubai (JAFZA) as its international sales and distribution office.