Batliboi - Batliboi

📊 BSE: 522004 🏢 Industrial Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for Q2 FY26 was INR 121 Cr, representing a 16% YoY growth from INR 104 Cr in Q2 FY25. High-growth segments include Machine Tools, Air Engineering, Textile Machinery, and Environmental Engineering. 1H FY26 revenue stood at INR 190 Cr, a 4% YoY decrease from INR 198 Cr.

Geographic Revenue Split

The company exports to 20+ countries. Key international markets include Canada (via Quickmill Inc subsidiary), the Gulf region, Vietnam, Bangladesh, Uzbekistan, and Egypt. Manufacturing facilities are located in Surat, India, and Peterborough, Canada.

Profitability Margins

Gross margin improved to 43% in Q2 FY26, up from the historical range of 38-40%. PAT for Q2 FY26 was INR 6 Cr, a sharp turnaround from a loss of INR 2 Cr in Q1 FY26. FY24 PAT margin was 3.15% compared to 4.11% in FY23.

EBITDA Margin

EBITDA margin for Q2 FY26 was 9%, compared to 10% in Q2 FY25. Absolute EBITDA grew 6% YoY to INR 11 Cr in Q2 FY26, recovering from INR 24 lakhs in Q1 FY26.

Capital Expenditure

The company has planned a capital profit/expenditure of INR 8 Cr for the balance part of FY26 to support expansion and technological upgradation.

Credit Rating & Borrowing

Acuite Ratings assigned a Stable outlook with an interest coverage ratio (PBDIT/Interest) of 4.70x in FY24. Total Debt/Tangible Net Worth stood at 0.55x as of March 31, 2024.

⚙️ Operational Drivers

Raw Materials

Steel and steel components are the primary raw materials, making margins susceptible to price fluctuations due to the fixed-price nature of customer orders.

Import Sources

Manufacturing is based in India (Surat) and Canada (Peterborough), with raw materials primarily sourced from domestic suppliers in these regions.

Capacity Expansion

Current installed capacity allows for approximately 25 machines per month, with plans to increase this to 30-35 machines per month (a 20-40% increase) through technological upgradation.

Raw Material Costs

Raw material costs are a significant portion of revenue; margins are highly sensitive to steel price volatility as the company operates with fixed-price contracts.

Manufacturing Efficiency

Efficiency is being enhanced by upgrading existing machine models and incurring substantial capital expenditure in the foundry and machine shop to grow faster than the industry average of 8-10%.

📈 Strategic Growth

Expected Growth Rate

10-12%

Growth Strategy

Growth will be achieved through the merger of BEEL, which adds air pollution control and industrial fans to the portfolio. The company is expanding into newer geographies like the Middle East and Uzbekistan and targeting the Green Hydrogen space, which offers an INR 8 trillion opportunity in India by 2030. Capacity is also being expanded by up to 40% in the machine tools division.

Products & Services

CNC and conventional metal cutting machines, textile air engineering equipment, air pollution control systems, industrial fans, and zero liquid discharge solutions for industrial effluent treatment.

Brand Portfolio

Batliboi, Quickmill (Canada), Bioconserve Renewables.

New Products/Services

Zero liquid discharge solutions through subsidiary Bioconserve Renewables (revenue recognized from 1QFY26) and upgraded CNC machine models.

Market Expansion

Targeting expansion in the Gulf region, Vietnam, Bangladesh, Uzbekistan, and Egypt for both machine tools and environmental engineering products.

Strategic Alliances

Strategic partnerships are being leveraged to enhance the portfolio and operational synergies, particularly following the BEEL merger.

🌍 External Factors

Industry Trends

The machine tool industry is growing at 8-10% CAGR. There is a significant shift toward environmental engineering and Green Hydrogen, with an estimated INR 8 trillion opportunity in India by 2030.

Competitive Landscape

Faces intense competition from domestic standardized machinery manufacturers and high-end international imports from specialized players.

Competitive Moat

The company possesses a 130-year operational legacy (est. 1892) and a diversified portfolio across four high-growth segments. Its nationwide network of 15+ offices provides a competitive service advantage over smaller domestic players.

Macro Economic Sensitivity

Highly sensitive to India's GDP growth (projected at 6.5% for FY26) and industrial infrastructure development, which creates demand for capital goods.

Consumer Behavior

Industrial customers are increasingly shifting toward sustainable manufacturing processes and zero liquid discharge solutions.

Geopolitical Risks

Adverse geopolitical situations may impact customer sentiments and capital expenditure plans, potentially delaying orders.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with industrial manufacturing standards and environmental pollution norms. The company is also subject to SEBI listing regulations for its merger and reporting.

Environmental Compliance

The company is focused on ESG through its Environmental Engineering division, providing air pollution control and zero liquid discharge solutions.

Legal Contingencies

No substantial defaults in payments to depositors, debenture holders, or creditors were reported for FY 2024-25. NIL complaints were pending regarding share transfers as of March 2025.

⚠️ Risk Analysis

Key Uncertainties

Delays in government policy decision-making and the availability of financing for the MSME sector could impact capital expenditure spending by 10-12%.

Geographic Concentration Risk

Operations are primarily in India and Canada, with growing but still developing exposure to the Middle East and Southeast Asia.

Third Party Dependencies

High dependency on steel suppliers; fixed-price contracts mean the company bears the full risk of raw material price increases.

Technology Obsolescence Risk

The company faces risks from rapid technological shifts in CNC machining, which it mitigates by upgrading existing models and investing in facility upgrades.