Batliboi FY26: Order book surges as the company sets up for FY27 growth

Batliboi closed FY26 with steady topline growth and a much stronger order book, but reported profitability was weighed down by one-time items. In its investor presentation and the May 2026 earnings call, management reported consolidated revenue from operations of INR 440 crore for FY26, up 7% from INR 413 crore in FY25. EBITDA was INR 28 crore for FY26 versus INR 29 crore in FY25. Reported PAT stood at INR 7 crore, down from INR 13 crore, mainly due to provisions linked to newly notified labour codes and the accounting impact from the merger of Batliboi Environmental Engineering Limited (BEEL) into Batliboi, completed in Q1 FY26. The FY26 income statement also includes an exceptional item of minus INR 7 crore.

Despite these accounting and regulatory impacts, operating activity remained busy across divisions. Management highlighted order inflows of about INR 988 crore in FY26 and a consolidated order backlog of INR 593 crore as of March 2026, up from INR 339 crore in FY25. The company also reiterated its focus on deleveraging, reporting a net debt to equity ratio of 0.28x as of March 2026.

FY26 financial performance: growth with stable operating profile

Batliboi reported consolidated quarterly revenue of INR 126 crore in 4QFY26, up 6% year on year. FY26 gross profit rose to INR 163 crore from INR 151 crore. EBITDA for 4QFY26 was INR 9 crore and EBITDA margin remained around 7% for the quarter, while full-year EBITDA margin was 6%.

The earnings call repeatedly returned to the same theme. Management believes the FY26 bottom line does not reflect the underlying earnings trajectory because it includes one-time impacts tied to labour code provisioning and merger accounting.

Segment view: machine tools anchor, environmental engineering gains share

Batliboi positions itself as a diversified engineering group spanning machine tools, textile engineering and environmental engineering. For FY26, the investor presentation disclosed a revenue mix of Machine Tools at 50%, Textile Engineering at 24%, and Environmental Engineering at 26%.

Machine Tools remained the largest contributor. The division reported FY26 order inflow of INR 232 crore, with INR 60 crore in 4QFY26. Backlog for the machine tools division was stated at INR 163 crore as of March 2026, around 27% of the company’s consolidated backlog. The company also disclosed an operational metric that points to steady factory throughput: 115 machines installed in 4QFY26 from its India manufacturing operations.

Quickmill, the Canadian subsidiary, continued to be a meaningful contributor within machine tools. The presentation reported FY26 order inflow of INR 127 crore and an order backlog of INR 62 crore as of March 2026. FY26 revenue was stated at INR 126 crore, with INR 35 crore in 4QFY26. Management said order bookings and enquiry levels improved from Q2 and that, subject to unforeseen circumstances, the subsidiary is positioned for a stronger FY27.

Textile Engineering includes air engineering and textile machinery. Air engineering reported quarterly revenues of INR 12 crore in 1QFY26, INR 18 crore in 2QFY26, INR 10 crore in 3QFY26 and INR 17 crore in 4QFY26. The textile machinery division saw a sharp slowdown in order inflow in the second half, which management attributed to geopolitical disruption and supply chain issues. Still, the year’s total textile machinery order inflow was referenced in the concall at INR 435 crore, with backlog at INR 238 crore.

Environmental Engineering scaled further after the BEEL integration. The presentation reported FY26 revenue of INR 115 crore, around 26% of total revenue, with quarterly revenues ranging from INR 18 crore in 1QFY26 to INR 35 crore in 4QFY26. Order backlog for the division was disclosed at INR 82 crore as of March 2026. Management also said the Udhna fan manufacturing unit was merged into the Environmental Engineering segment from 1 July 2025 to drive synergies, and expects both revenue and profitability to improve from FY27 as operational formalities are completed.

Note: The revenue values above are derived using the disclosed mix and consolidated FY26 revenue of INR 440 crore.

Strategy and capital allocation: CNC expansion, water treatment, early hydrogen steps

Management’s FY27 narrative combines three levers: product expansion in CNC machine tools, scaling environmental and water-treatment platforms, and selective bets on emerging themes such as green hydrogen.

In the earnings call, management said Batliboi currently manufactures two main CNC platforms, turning centres and vertical machining centres. It is working on adding two more products to broaden its CNC portfolio. The company’s strategic slide also highlights the global CNC opportunity, while management described the approach as a steady expansion of the product basket over time.

Capex remains measured. Batliboi disclosed cumulative capex of INR 27 crore in FY26 and plans for another roughly INR 10 crore in FY27. Management said the bulk of FY26 capex went into the Surat machine tool division and that benefits started becoming visible from 4QFY26. On leverage, management reiterated its intention to maintain a debt-to-equity ratio around the reported 0.28x level.

Quickmill’s expansion is a separate capex track. Management said Quickmill is operating near capacity and that an expansion is planned, but approvals from local Canadian authorities are pending. The approximate expansion spend shared was around CAD 4 million, which management equated to roughly INR 25 to 30 crore.

Beyond core equipment, Batliboi is building an industrial water treatment business through its subsidiary Bioconserve Renewables Envirotech Private Limited, focused on effluent treatment and Zero Liquid Discharge solutions. The investor presentation states revenue from this business has been recognized from 1QFY26. On the call, management said the first year performance was better than projected and that it expects FY27 to be better, supported by a dedicated team and a focus on textile ETP and ZLD projects.

Green hydrogen remains early but has identifiable steps. In response to a question, management said it has signed an MOU with L&T at a nascent stage and another MOU with a Chinese equipment manufacturer related to electrolyzers. Management said it is pursuing two to three active inquiries and expects progress over the next two to three quarters.

What to watch in FY27

Batliboi reiterated guidance of around 10% topline growth in FY27 with stable margins, supported by a strong backlog and expected sectoral tailwinds. It also stated an intent to close FY27 with order inflows of about INR 1,000+ crore.

For investors, the near-term scorecard likely comes down to three measurable outcomes. First is execution on the large order book while keeping working capital controlled, especially as receivables rose to INR 103 crore in FY26. Second is whether margins improve with higher volumes, an outcome management expects as it avoids major overhead expansion. Third is delivery on the newer legs of the story, particularly Environmental Engineering profitability improvement, scaling Bioconserve’s ZLD pipeline, and tangible order conversion in green hydrogen.

The FY26 documents show a company that has strengthened revenue visibility and kept leverage in check, while navigating one-time impacts on reported profitability. FY27 will test whether the operating base can translate this visibility into sustained earnings improvement.