Anup Engineering FY26: Record Revenue, Softer Q4, and a Push Into New Energy

The Anup Engineering Limited closed FY26 with its highest ever revenue and EBITDA, even as the March quarter showed a clear margin dip. For the full year, consolidated revenue from operations rose to INR 822.3 crore (up 12.2% YoY). EBITDA came in at INR 174.2 crore (up 5.4% YoY), translating to a 21.2% EBITDA margin. PAT was INR 110.4 crore, down 6.7% YoY, with the company noting an exceptional gratuity expense and a tax reversal in the period.

Q4 FY26 was weaker than the run-rate implied by the annual numbers. Revenue from operations declined to INR 207.9 crore versus INR 221.7 crore in Q4 FY25. EBITDA fell to INR 38.2 crore and margin contracted to 18.4%. On the earnings call, management attributed this primarily to lower volumes and product mix, and reiterated that quarter-to-quarter fluctuations are natural in long-cycle, large-project execution.

A year shaped by supply chains and execution discipline

Management described FY26 as challenging due to geopolitics, trade and tariff positions, raw material price volatility (especially steel), and logistics disruption due to major sea route closures. The company noted that the last two months of FY26 were particularly disruptive, with crucial raw materials delayed, industrial gas supply curtailed, and dispatch-ready goods accumulating due to constraints in shipping line availability.

Despite the disruptions, Anup continued to maintain a high margin profile for the year, which management positioned as within its guided 20%+ range. The company’s emphasis, however, has shifted toward risk-protected order booking and disciplined execution. On the call, management said it has consciously let go of some opportunities to protect profitability under elevated input costs and a highly competitive bidding environment.

Financial snapshot (Consolidated)

What drove FY26 revenue: products and markets

Anup’s FY26 revenue was led by heat exchangers and vessels, reflecting its positioning in heavy engineering equipment for process industries.

Heat exchangers contributed INR 443.2 crore, or 53.8% of FY26 revenue. Vessels contributed INR 267.1 crore, or 32.5%. Towers and reactors were smaller at INR 49.9 crore (6.1%), while tanks and silos contributed INR 26.3 crore (3.2%). Centrifuge and others added INR 35.8 crore (4.4%).

The market split showed near parity between domestic and export revenues. Domestic revenue was INR 396.7 crore (48.1%), exports were INR 395.1 crore (48.2%), and DE/SEZ contributed INR 30.5 crore (3.7%).

Management also provided a sectoral revenue mix for FY26 in the presentation. Oil and gas contributed 39%, petrochemicals 32%, fertilizer 9%, hydrogen 8%, and chemicals plus centrifuge plus silos 12%.

Order book, capacity, and FY27 positioning

The company ended the period with a pending order book of about INR 769 crore, including LOI of INR 146 crore as per the presentation. The market mix of the pending order book tilted toward domestic demand, with domestic at 60.1% and exports at 39.9%.

Management highlighted an inquiry pipeline of around INR 1,200 crore and described these as active firm inquiries expected to conclude within two to three months. The stated conversion rate target was about 20%, which management linked to maintaining profitability.

The execution capacity story is also evolving. Phase II at the Kheda plant was commissioned, with the presentation stating Kheda’s revenue potential at INR 400 to 450 crore per annum. Management also stated that overall capacity across Ahmedabad, Kheda and Mabel can support up to about INR 1,200 crore of revenue per year.

New segments and new offerings: nuclear, thermal, clean energy and skids

A significant theme in the communication was diversification into new energy and adjacent offerings. The company highlighted its first order in the nuclear segment and indicated it is currently under execution. It also reported its first order for critical heat exchangers in the thermal power segment, linked to an NTPC project through an Indian EPC customer.

Anup also highlighted work on a patented clean energy storage technology through a European technology company, with a repeat order already received. Management framed this as a potential long-term opportunity.

Another capability addition is skids. Management said the company secured its first skid package order in the Middle East of about INR 30 crore, with an execution timeline of roughly 12 months and delivery expected within FY27. This order is described as tied to an ADNOC project. The company also noted the Vadodara engineering office plays an important role in design work for such packages.

Cash flow and borrowing: a year-end working capital bulge

The balance sheet reflects higher borrowings at the year end. As of March 31, 2026, long-term borrowings stood at INR 33.9 crore and short-term borrowings at INR 73.9 crore. On the call, management said the March-end cash position was negative INR 73 crore, inclusive of long-term debt of INR 52 crore, driven by working capital and debtor timing.

Management stated that collections were improving post year-end, with cash position improving to negative INR 11 crore as of the call date, and an expectation of turning cash positive by the end of the month, inclusive of long-term borrowing.

The FY27 stance: cautious on costs, selective on orders

Management declined to give explicit revenue or margin guidance for FY27, citing elevated and volatile raw material pricing and the fixed-price nature of contracts with no price variability clause. It emphasized that the company is selectively booking orders with risk protection and healthy margins, and is timing procurement where possible.

The messaging was clear that FY27 is intended to be a year of stabilization, consolidation, and strengthened risk management under geopolitical volatility. At the same time, the company highlighted that its expanded capacity, broader product capability and initiatives like technical services position it to capitalize when macro conditions improve.

The technical services vertical, described as higher margin and higher ROCE, has begun with around 10 purchase orders executed in FY26, amounting to about INR 4.5 crore. Management stated an ambition to scale this to INR 200 crore over the next three years.

In sum, Anup’s FY26 combined record revenue with visible near-term volatility in quarterly margins and cash flows. The key monitorables for FY27, based on management commentary, are order booking discipline under fixed-price contracts, procurement timing amid raw material volatility, and whether new segments like nuclear, thermal and skids translate into repeatable execution and a broader order book.