Cosmic CRF’s FY26 pivot: scaling capacity, riding infrastructure, and turning cash flow positive

Cosmic CRF Limited closed FY26 with a different profile than it had even a year earlier. The company, which started as a focused cold rolled formed (CRF) supplier to Indian Railways, is now running a multi-unit platform across CRF sections, sheet piles, galvanised infrastructure products, springs, fabrication, and an emerging forging operation. That shift showed up clearly in the numbers.

On a consolidated basis, revenue from operations rose to Rs 716.6 crore in FY26 from Rs 401.6 crore in FY25, a 78.4 percent year-on-year increase. EBITDA grew to Rs 78.4 crore from Rs 44.4 crore, up 76.9 percent. Reported profit after tax increased to Rs 50.6 crore from Rs 29.0 crore, a 74.2 percent rise. In H2FY26, the acceleration was even sharper: revenue increased 77.5 percent year-on-year to Rs 412.1 crore, EBITDA rose 81.1 percent to Rs 40.6 crore, and PAT more than doubled to Rs 26.1 crore.

The company framed FY26 as a year of execution under shifting end-market conditions. Management noted that it anticipated moderation in railway sector momentum and pivoted early toward infrastructure. The scale-up of the subsidiary NS Engineering Projects Private Limited (NSEPPL) and the addition of a galvanising bath were central to that move. The outcome was not just growth in volumes and profits, but also a reported turnaround in operating cash flow from a negative Rs 89.16 crore in the prior year to a positive Rs 3.59 crore in FY26.

The operating story: capacity first, then utilisation

Cosmic CRF’s FY26 performance is hard to separate from its capacity build-out. Total installed capacity rose to 1,33,600 MTPA in FY26 from 69,000 MTPA in FY25, about 94 percent year-on-year growth. Actual production climbed to 1,06,370 MTPA from 55,941 MTPA, up 90.1 percent. The company also reported about 80 percent capacity utilisation in FY26, which matters because the year included rapid ramp-ups, not just steady-state operations.

The biggest operational jump came from NSEPPL. Its production moved from 15,000 MTPA in FY25 to 56,380 MTPA in FY26, a 276 percent increase. Standalone production increased from 38,800 MTPA to 42,690 MTPA, up 10 percent. Cosmic Springs and Engineers Limited (CSEL) also expanded quickly, with production rising from 2,141 MTPA to 7,300 MTPA, up 241 percent.

Management linked this growth to three levers. First, the Singur unit expansion lifted standalone installed capacity from 36,000 MT to 55,000 MTPA, supported by additional sheds and calibrated machines. Second, NSEPPL was scaled to 65,000 MTPA operational capacity within 15 months of acquisition and added diversification into infrastructure-linked products such as crash barriers, sheet piles, and road safety items. Third, the spring business reached 3,600 MTPA installed capacity and was paired with fabrication capacity of 10,000 MTPA, while a forging unit under CSEL was scaled to 11,000 MTPA versus an earlier 6,800 MTPA target.

The narrative here is not only about building capacity, but also about keeping assets flexible. The presentation repeatedly highlights fungibility: the same manufacturing base can switch between railway wagon CRF sections and infrastructure products like sheet piles. That flexibility is an important hedge when public sector ordering cycles soften.

Financial summary (FY26 consolidated vs FY25)

Note: Order book year-on-year change is cited in the presentation, but the prior year absolute value is not provided.

A deliberate pivot: from rail concentration to rail plus infrastructure

Cosmic CRF still positions itself as a railway-linked manufacturer, including being an RDSO approved vendor and a supplier of CRF sections used in wagon and coach body building. But FY26 signals a broader operating identity. NSEPPL’s product mix includes sheet piles, crash barriers, high mast and pole products, and other engineering products, supported by a state-of-the-art galvanising bath with capacity of 24,000 tons per annum in a 12-hour shift. This capability is not cosmetic. The company claims the galvanising bath can support products such as monopoles, high masts, octagonal poles, and crash barriers, and can improve topline and gross margins by up to 2.5 percent.

The pivot matters because FY26 growth came with stable to slightly lower consolidated margins. Consolidated EBITDA margin moved from 11.0 percent in FY25 to 10.9 percent in FY26. PAT margin eased from 7.2 percent to 7.1 percent. In H2FY26, EBITDA margin was 9.9 percent versus 9.7 percent in H2FY25, while PAT margin was 6.3 percent versus 4.9 percent. The mixed margin picture suggests two things at once. First, scaling and diversification expanded profits materially even without margin expansion. Second, the mix is still settling as new units ramp and financing costs rise.

Interest costs support that view. Consolidated interest expense increased to Rs 12.2 crore in FY26 from Rs 6.6 crore in FY25. Depreciation also rose to Rs 10.6 crore from Rs 7.0 crore, consistent with capacity additions and acquisitions.

For investors, the more important change may be cash conversion. The company highlighted that operating cash flow moved from a negative Rs 89.16 crore in the prior year to a positive Rs 3.59 crore in FY26, despite aggressive capex. Management attributed the turnaround to higher volumes, improved utilisation, a shift to high-margin infrastructure products, and tighter working capital management.

Building an integrated manufacturing platform, with M and A optionality

Cosmic CRF’s presentation frames the business as moving step-by-step toward an integrated railway company: CRF sections to wagon components, then fabrication, then springs and forging, and finally a wagon ecosystem. The immediate platform today is already multi-asset.

Across four manufacturing units and about 14 acres, the company reported 1,33,600 MTPA installed capacity: 55,000 MTPA standalone at Singur, 65,000 MTPA at NSEPPL in Howrah, and 13,600 MTPA at CSEL in Jangulpur. Management also described a broader consolidated capacity build-up over 3 to 4 years, expanding from 12,000 MT in 2023 to a combined 144,600 MT that includes 1,23,600 MT installed, 10,000 MT fabrication, and 11,000 MT proposed for the forging unit.

The forging unit deserves attention because it is positioned as forward integration and a margin enhancer. The company said the forging unit was scaled to 11,000 MTPA and expects optimum utilisation of about 85 percent within two years. If execution matches the ramp-up timeline already demonstrated at NSEPPL, forging could become a meaningful lever for value-added wagon components and better contribution per tonne.

Alongside organic build-out, Cosmic CRF has an acquisition pipeline. The presentation discusses Amzen Transportation Industries Pvt Ltd, an established wagon manufacturing plant in Chandigarh, with annual capacity of 3,600 wagons as per RDSO assessment, scalable to 7,200 wagons per annum. Amzen also has bridge fabrication capacity of 20,000 MTPA aligned with Dedicated Freight Corridor requirements and an additional capability to produce 10,000 sea freight containers per annum. The legal update is that the Supreme Court allowed Cosmic CRF to participate in CIRP, setting aside the NCLAT order, reinstating the company as the H1 bidder in a concluded Swiss challenge. The company stated that the LOI is awaited from the committee of creditors.

Investors should treat this as optionality rather than base case. The presentation itself separates the FY28 targeted consolidated volume of 1,75,000 MTPA as excluding Amzen.

Production mix shift: where FY26 volumes came from

This table captures the central operational change: FY26 growth was driven primarily by the subsidiary build-out.

Demand backdrop: rail visibility, infrastructure runway

Cosmic CRF’s near-term demand visibility rests on its order book, which the company reported at Rs 760 crore and described as well diversified across railways and infrastructure. The broader backdrop also remains constructive on paper. The presentation cites a May 2026 announcement of a mega tender for 1,00,000 wagons, sized at Rs 40,000 crore. It also cites continued rolling stock expansion plans such as Amrit Bharat trains and Vande Bharat trains, and a capital outlay allocation of Rs 2.93 lakh crore to the Ministry of Railways in Budget 2026 to 2027.

At the same time, management’s own commentary indicates that railway momentum may moderate, at least cyclically. That is why infrastructure-linked products and customers matter. The presentation points to indirect orders from the irrigation department and infrastructure companies, and highlights that capacity is interchangeable to manufacture sheet piles or wagons. For a manufacturing business with high fixed costs, this is a practical advantage: it is easier to protect utilisation and margins when assets can shift between adjacent markets.

The company also positions itself to benefit from adjacent industries. It includes an industry snapshot for springs and forging, citing growth expectations for the India spring market and the India metal forging market, with exports contributing over 30 percent to the forging sector’s revenue. For Cosmic CRF, that context reinforces why a spring and forging platform can be more than a support function for rail and can broaden the company’s addressable market.

Way forward: scale targets, capacity additions, and de-risking

Cosmic CRF’s near-term plan is built around scale and integration. The company targets consolidated volume of 1,75,000 MTPA by FY28 excluding Amzen. It also indicates further capacity expansion beyond that base, stating that an addition of railway, wagon, and infrastructure units could add 1,50,000 tons of installed capacity by FY29. The presentation frames this as moving from 12x volume growth achieved from FY23 to FY26 to a targeted 27x growth from FY23 to FY29.

Beyond pure volume, the roadmap has a few practical elements. One is efficiency and utilisation, with management targeting about 85 percent utilisation across expanded capacities within the next two years. Another is technology adoption and product diversification, including R and D focused on prototype wagons and defence-sector items. The presentation notes that R and D teams are developing defence-sector products to further de-risk the business.

There is also an integration theme around liquid metal initiatives. The company said it has identified a couple of potential units and that soft negotiations are in progress, with further updates to be provided as discussions crystallise. Since no timelines or transaction values are stated, this remains an exploratory element.

The investment case, then, is increasingly about whether Cosmic CRF can convert its expanded footprint into steady, high-return throughput without stretching the balance sheet. The FY26 operating cash flow turnaround is an encouraging signal, but investors will also watch working capital intensity as receivables and inventories rise with scale, and as trade payables expand alongside raw material sourcing.

Takeaways for investors

FY26 for Cosmic CRF was defined by disciplined execution under changing demand signals. Revenue and profit growth were strong, but the more telling achievement was operational: installed capacity almost doubled, production rose 90 percent, and the company scaled a large subsidiary in a short period. The pivot toward infrastructure products, supported by galvanising capability and fungible capacity, appears to have protected volume momentum while rail demand was expected to cool.

The next phase is about proving durability. The company has set ambitious volume and capacity targets through FY28 and FY29 and is layering in forward integration through forging, with additional M and A optionality via the Amzen process. If Cosmic CRF can keep utilisation high, maintain working capital discipline, and deepen its product mix across rail and infrastructure, the FY26 playbook could look less like a one-time surge and more like a repeatable operating model.