INNOMET exports reach 46% of revenue on H1 THA shipments

INNOMET’s exports reached 46.4% of revenue in H1 FY27 after rising seven-fold year on year to ₹25.9 crore, led by ₹15.3 crore of tungsten heavy alloy, or THA, shipments. The export share was 15.1% in H1 FY26, while consolidated revenue from operations rose 137% to ₹55.67 crore.

Why did INNOMET’s export share reach 46% in H1 FY27?

INNOMET’s export share reached 46.4% because export revenue increased from ₹3.6 crore in H1 FY26 to ₹25.9 crore in H1 FY27, outpacing the 137% rise in total revenue to ₹55.67 crore. Management described H1 FY27 as a step change, with exports accounting for nearly half of sales.

Exports had accounted for 9.7% of revenue in FY25 and 18.3% in FY26, before falling to 15.1% in H1 FY26 and then rising to 46.4% in H1 FY27. The H1 FY27 share was therefore 31.3 percentage points above the comparable prior-year half and 28.1 percentage points above FY26.

The comparison has a consolidation difference. H1 FY27 includes Swastik Tungsten from September, while earlier periods are standalone, although management said Swastik contributed only a few days to the half-year and was supplying about 2 tonnes of tungsten powder a month after its restart.

How important was THA to INNOMET’s export growth?

THA was the larger export contributor, with ₹15.3 crore shipped overseas in H1 FY27, equal to 87% of the segment’s ₹17.6 crore revenue. The presentation says this export value was about 11 times the ₹1.3 crore of THA exports in FY26, derived from total FY26 exports less powder exports.

THA revenue rose six-fold from ₹2.9 crore in H1 FY26 to ₹17.6 crore in H1 FY27, lifting its revenue mix share from 14% to 32%. Metal powders still grew from ₹17.7 crore to ₹38.1 crore, but their revenue share declined from 86% to 68% because THA expanded faster.

Management attributes THA demand partly to global replenishment of depleted defence stockpiles. The presentation says THA cubes and balls are used as pre-fragments in munitions and that defence has historically represented 30% to 40% of THA revenue, a proportion management expects to nearly double this year.

INNOMET also cites tungsten supply conditions. China mines about 79% of world tungsten and has restricted exports since February 2025, according to the presentation, while INNOMET says its AS 9100D certification can open original equipment manufacturer supply chains such as Airbus, Thales and Safran. The presentation does not disclose sales to those companies.

Did metal powders also add to INNOMET’s exports?

Yes, INNOMET’s metal-powder exports reached ₹10.6 crore in H1 FY27, exceeding the ₹8.5 crore reported for all of FY26. Exports represented 28% of H1 FY27 metal-powder revenue of ₹38.1 crore, while domestic powder sales were ₹27.6 crore.

Metal-powder revenue increased 116% from ₹17.7 crore in H1 FY26 to ₹38.1 crore in H1 FY27. Volumes rose 39%, from 184 tonnes to 256 tonnes, while realisation increased 55%, from ₹959 per kilogram to ₹1,487 per kilogram; INNOMET also added 18 powder customers during the half.

Metal powders are short-cycle products that rarely appear in the order book, according to the presentation. This limits what can be inferred from the disclosed ₹36.7 crore order book, because it may not capture all near-term powder sales; INNOMET identifies Höganäs of Sweden as a powder customer of more than 15 years.

INNOMET lists the United States, Israel, Australia, the Netherlands, Switzerland, New Zealand and Japan as export markets. During H1, it attended Stone & Tech in Hyderabad in May, WorldPM in Montréal in June, AeroMart in Hyderabad in July and ICAMPS in Trivandrum in September, but did not disclose country-level revenue.

What could support INNOMET’s export execution next?

INNOMET’s stated export-supporting measures include appointing an exclusive representative in the United States and using AS 9100D certification for aerospace and defence supply chains. Its H1 FY27 exports were sold ex-works, meaning tariffs fall on the buyer, though the presentation provides no export-revenue forecast by market or customer.

INNOMET acquired a 57.5% stake in Swastik Tungsten for ₹1.5 crore through the National Company Law Tribunal process. Swastik is intended to bring tungsten-powder conversion in-house for THA production, and management says this supports order execution as tungsten prices have risen 4.7 times and supply has tightened.

Management plans to scale Swastik from 2 to 3 tonnes a month after its restart to 10 tonnes a month, or 120 tonnes per annum, by the end of FY27. INNOMET’s roadmap also shows in-house THA component capacity rising from 18 tonnes per annum in FY26 to 60 tonnes in FY27; these are installed-capacity estimates rather than output forecasts.

INNOMET is also acquiring a production-scale spark plasma sintering furnace from Germany, with an advance paid, while developing a tungsten hexafluoride pilot plant and 5N, or 99.999%, pure tungsten. Management says these advanced-materials initiatives are early stage and expected to contribute over the medium term rather than in the reported H1 FY27 result.

Conclusion

INNOMET’s H1 FY27 figures show a material shift in its revenue mix toward exports. Exports of ₹25.9 crore accounted for 46.4% of ₹55.67 crore revenue, with THA contributing ₹15.3 crore and metal powders ₹10.6 crore. THA’s six-fold revenue increase lifted its sales mix share to 32%, while powder revenue still increased 116% on higher volume and realisation.

The next disclosed milestones are Swastik’s planned scale-up to 120 tonnes per annum of tungsten powder by the end of FY27 and the conversion of the ₹36.7 crore order book alongside short-cycle powder sales. Management has said ₹100 crore of FY27 revenue is within reach after ₹55.7 crore in H1, while the spark plasma sintering, tungsten hexafluoride and 5N tungsten projects remain medium-term plans.