Expo Engineering - Expo Engineering

📊 BSE: 526614 🏢 Other Industrial Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Storage Tanks constitute 98% of the product mix. In Q2 FY26, total revenue from operations was INR 15.00 Cr, representing a 52.98% YoY decline from INR 31.90 Cr in Q2 FY25, primarily due to project execution phasing. However, FY25 annual revenue grew 51.57% to INR 114.74 Cr from INR 75.70 Cr in FY24.

Geographic Revenue Split

The company primarily operates in India with a manufacturing facility in Murbad, Thane. It has a historical track record of exports to Japan, UK, Germany, Middle East, and Africa, though specific current % splits are not disclosed.

Profitability Margins

Net Profit Margin improved significantly to 5.67% in Q2 FY26 from 2.07% in Q2 FY25. For the full year FY25, PAT margin was 2.77% compared to 1.00% in FY24, driven by higher scale and operational efficiencies.

EBITDA Margin

EBITDA Margin (excluding other income) expanded to 13.33% in Q2 FY26, a 772 bps increase from 5.61% in Q2 FY25. EBITDA grew 11.73% YoY to INR 2.00 Cr despite lower revenues, reflecting improved cost management.

Capital Expenditure

The company raised INR 7.52 Cr via equity infusion in 2024 for CAPEX focused on advanced machinery and efficiency. Additionally, it issued convertible warrants worth INR 22.02 Cr in 2025 to fund growth and capacity expansion.

Credit Rating & Borrowing

CRISIL has assigned a 'Stable' outlook. Interest coverage ratio stood at 1.31 times as of March 31, 2024, with debt protection metrics considered below average but expected to improve with scale.

⚙️ Operational Drivers

Raw Materials

Steel and exotic metals (Titanium, Nickel) are primary inputs. In Q2 FY26, raw material costs were INR 2.89 Cr, representing 19.2% of total revenue, down from 57.7% in Q2 FY25.

Capacity Expansion

The company operates a state-of-the-art manufacturing facility in Murbad, Thane. It is currently upgrading qualifications to participate in large-value tenders and plans to enter the exotic metals segment to serve high-value precision engineering sectors.

Raw Material Costs

Raw material costs were INR 40.57 Cr in FY25 (35.3% of revenue) compared to INR 22.43 Cr in FY24. The company is susceptible to price volatility, as evidenced by its 2003-04 exit from a large IOCL order due to rising input costs.

Manufacturing Efficiency

The company is leveraging upgraded facilities to ensure faster production cycles and timely deliveries, targeting the 'elite bracket' of high-value tenders with less competition.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is targeted through participation in India's Strategic Petroleum Reserve (SPR) projects, expanding refining capacity (targeted to reach 310 MMTPA by 2030), and diversifying into exotic metal fabrication for high-precision products.

Products & Services

Coded pressure vessels, deaerators, storage tanks (cone roof, crude oil, surge relief), in-plant piping, and heavy engineering process plant equipment.

Brand Portfolio

Expo Engineering and Projects Ltd. (formerly Expo Gas Containers Ltd.)

New Products/Services

Entry into exotic metals (Titanium, Nickel) segment for high-value precision engineering, expected to target sectors with higher value addition and less competition.

Market Expansion

Focusing on expanding the customer base to include Chemicals and Steel manufacturing sectors and increasing the export share in heavy engineering equipment.

🌍 External Factors

Industry Trends

India's refining capacity is projected to grow from 256.8 MMTPA to 310 MMTPA by 2030. Oil demand is expected to double to 11 million barrels/day by 2045, creating sustained demand for high-pressure storage vessels.

Competitive Landscape

Operates in a competitive tender-based market for heavy engineering, but is moving toward specialized segments (exotic metals) to reduce competitive intensity.

Competitive Moat

Moat is based on 40+ years of engineering expertise, specialized certifications (ISO, IBR, PESO), and a long-standing relationship with major PSUs like BPCL and IOCL.

Macro Economic Sensitivity

Highly sensitive to the US$ 25 billion investment cycle in India's oil and gas infrastructure and the Union Budget 2025-26 allocation of INR 5,597 Cr for ISPRL Phase II.

Consumer Behavior

Shift toward sustainable aviation fuel (2% blending by 2028) and biodiesel (5% by 2030) is driving new infrastructure requirements in the energy sector.

Geopolitical Risks

Vulnerable to global oil price fluctuations and physical dangers/threats inherent in the oil and gas industry infrastructure.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with IBR (Indian Boiler Regulations) and PESO (Petroleum and Explosives Safety Organization) standards for manufacturing pressure vessels and storage tanks.

Environmental Compliance

The company integrates clean environment and sustainable development into business objectives, maintaining ISO 14001:2015 certification for environmental management.