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Indo SMC FY26: Scale-up Driven by Electrical Products and Order Book Visibility

Indo SMC Limited closed FY26 with a sharp jump in scale and profitability, helped by a stronger mix of higher-value electrical engineering products and a materially larger order pipeline. For FY26, revenue from operations was INR 30,973.93 lakhs (about INR 309.74 crore), compared with INR 13,869.25 lakhs in FY25. EBITDA rose to INR 4,764.65 lakhs (about INR 47.65 crore) and PAT reached INR 3,238.30 lakhs (about INR 32.38 crore).

The second half performance also stood out. In H2 FY26, revenue from operations was INR 19,719.83 lakhs, EBITDA was INR 2,985.12 lakhs, and PAT was INR 2,092.79 lakhs. The company presented this as evidence of execution traction after investments in capabilities and an expanding customer base across utilities and industrial clients.

Operationally, Indo SMC describes itself as an ISO 9001:2015 and ISO 14001:2015 certified manufacturer operating across three divisions: the Sheet Moulding Compound (SMC) division, the Fiberglass Reinforced Plastic (FRP) division, and the Electrical Component division. It operates four manufacturing facilities across Gujarat, Maharashtra, and Rajasthan and states it has presence in 20 states with over 300 employees.

FY26 financial performance: growth with higher operating leverage

The company’s FY26 income statement shows that scale-up came alongside higher absolute profitability. Raw materials remained the dominant cost line as expected for a manufacturing business, while finance costs and depreciation rose at a manageable pace relative to revenue.

The balance sheet indicates a much stronger liquidity position in FY26, including a meaningful rise in cash and bank balances. The company also reported improved leverage ratios and working capital ratios.

Key ratios presented by the company were: debt-to-equity of 0.30x in FY26 (vs 0.97x in FY25), current ratio of 2.98x (vs 1.29x in FY25), ROCE of 22.98%, and ROE of 21.01%.

What drove the step-up: product mix shift and utilities demand

In management commentary and Q and A, the central driver explained for improved performance was a mix shift toward higher-value electrical products. Management specifically cited CTPT products, busducts, and metering cubicles as categories with better EBITDA margins than SMC.

This was not positioned as a one-off benefit. Management said it has improved its ability to select orders and avoid low-margin business that was earlier accepted to build market presence. It also stated that improved procurement and scale have strengthened buying power.

Alongside product mix, Indo SMC highlighted recent business wins. In the investor presentation, the company said it secured cumulative purchase orders worth about INR 54 crore, including FRP cable trays, SMC meter boxes, and busduct assemblies. It also highlighted repeat orders from customers such as Asiatic Composite Limited, Elite Techno Solution, and ADH, and stated it received MS DC1 vendor approval for 11 kV metering cubicles (valid for two years) with an estimated supply potential of about INR 10 crore.

The company also referenced its overall order book as INR 237 crore as on March 31, 2026.

FY27 outlook: guidance, execution cycle strategy, and capex

The most explicit forward-looking statement from the earnings call was guidance of FY27 revenue in the range of INR 450 crore to INR 500 crore. Management also discussed how it is managing execution timelines amid commodity volatility. It said the company aims to keep order durations short, typically 3 to 6 months, due to raw material price fluctuations.

Management also addressed margin sustainability. It stated that the roughly 15% EBITDA margin level is sustainable and that the company aims to improve it over time, though outcomes depend on price variation and supply conditions.

On capacity and capex, management reiterated that its first priority is the INR 25 crore capex referred to during the IPO. It discussed adding machinery and automation, stating that land availability is not a constraint and that upgrades are focused on equipment and testing facilities. It also indicated targets to increase SMC capacity to 6,000 tons plus and to add about 300 tons of FRP production capacity.

A specific equipment update was the planned arrival of a 2000-ton plus press machine in the next 2 to 3 months, intended for larger products, including railways-related products and items linked to samples sent to the US and Germany.

Working capital was another focus area. Management said it has improved its working capital cycle to around 40 to 45 days and expects it to stay around that range as per government and MSME rules, aided by improved payment terms because the company can now choose its orders.

Risks and execution variables discussed by management

While the tone of the presentation was positive, the call included several operational risks and constraints.

First, management acknowledged geopolitical-driven volatility in raw materials, especially resin and petroleum-based inputs used in SMC and FRP. It said the company stocked roughly three months of glass fiber and has stocked other raw materials to avoid disruption.

Second, the company addressed investor concerns about a higher inventory position. Management explained that inventory increased as it proactively built raw material stock given expectations of worsening geopolitical conditions.

Third, the company confirmed external dependence for certain imported inputs. It stated that CRGO cores are sourced externally from countries including Korea, China, Japan, and Taiwan.

Finally, approvals and testing timelines remain a key dependency for new segments. Management said railways-related clearances were delayed due to technical issues but expects clearance by the end of the next month. It also said lab expansion work should conclude by the end of the month, which is expected to support faster approvals.

Takeaways

Indo SMC’s FY26 results show a rapid scale-up, with management attributing margin improvement to a deliberate shift toward higher-value electrical engineering products such as CTPT, busducts, and metering cubicles. The company also communicated high order visibility, citing an order book of INR 237 crore as of March 31, 2026 and indicating additional orders of about INR 125 crore post year-end.

For FY27, the key marker is management’s revenue guidance of INR 450 crore to INR 500 crore, supported by shorter execution cycles, incremental automation-led capex, and a continued focus on utilities-led demand. The near-term variables to track, based on management commentary, remain raw material volatility, inventory normalization, and approval timelines for expansion into newer categories including railways and exports.