💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 80% YoY to INR 304.5 Cr in H1 FY26 from INR 169.4 Cr in H1 FY25. Standalone CRF (Singur) contributed 23,800 MT in volume, NSEPPL contributed 21,000 MT, and Cosmic Springs contributed 4,500 MT during H1 FY26.

Geographic Revenue Split

Not explicitly disclosed by percentage, but operations are heavily concentrated in West Bengal with units in Singur (Hooghly) and Kolkata.

Profitability Margins

Gross profit per ton for non-galvanized material is approximately INR 7,000 on a selling price of INR 53,000 (approx. 13% margin). Net Profit (PAT) for H1 FY26 was INR 24.5 Cr, representing an 8% net margin.

EBITDA Margin

EBITDA margin for H1 FY26 stood at 12.4% (INR 37.8 Cr on INR 304.5 Cr revenue), showing a 73% increase in absolute EBITDA value from INR 21.9 Cr in H1 FY25.

Capital Expenditure

The company invested in acquiring a 74% stake in NSEPPL and a 92% stake in Cosmic Springs & Engineers Limited during FY25. Singur unit capacity was expanded from 36,000 MTPA to 55,000 MTPA (approx. 53% increase).

Credit Rating & Borrowing

Long-term rating upgraded to IVR BBB+/Stable and short-term rating assigned at IVR A2 as of December 2025. Fund-based limit utilization is moderate at ~93%.

⚙️ Operational Drivers

Raw Materials

Steel coils and sheets used for Cold Rolled Forming (CRF) and fabricated steel products. Raw material inventory is maintained for 2-3 months to ensure uninterrupted production.

Import Sources

Primarily sourced domestically within India, specifically supporting the West Bengal manufacturing clusters.

Key Suppliers

Not specifically named, but the company leverages large-scale purchases to negotiate better pricing for its liquid metal asset business.

Capacity Expansion

Current total capacity is approximately 120,000 MTPA (Singur unit at 55,000 MTPA and NSEPPL at 65,000 MTPA). Management targets achieving 100,000 to 110,000 tons of production/sales by the end of FY26.

Raw Material Costs

Raw material costs are subject to price volatility with a lag in passing changes to customers. Inventory holding for 60-90 days increases working capital requirements.

Manufacturing Efficiency

Utilization of 'split role technology' in CRF manufacturing for wagons and bogies to enhance precision and output quality.

Logistics & Distribution

Logistics challenges noted at the Singur facility where handling more than 55,000 MTPA is difficult due to trailer loading constraints (17 trailers at a time).

📈 Strategic Growth

Expected Growth Rate

100%

Growth Strategy

Doubling sales volumes from 55,000 MT to 110,000 MT through the full integration of NSEPPL (65,000 MTPA capacity) and CSEL. The strategy includes aggressive debtor recovery to improve operating cash flow, which moved from negative INR 89 Cr to a significantly improved position in H1 FY26.

Products & Services

Cold Rolled Form (CRF) sections for railway wagons, bogies, and coaches; fabricated steel; monopoles; octagonal poles; and railway components.

Brand Portfolio

Cosmic CRF, N.S. Engineering Projects (NSEPPL), Cosmic Springs & Engineers (CSEL).

New Products/Services

High-value monopoles and octagonal poles for infrastructure, contributing to higher margins due to premium pricing (INR 90,000 per ton).

Market Expansion

Expansion into the 'liquid metal asset business' to leverage bulk raw material purchasing power across all subsidiaries.

Market Share & Ranking

Self-described 'champion' in CRF for wagons and bogies in India.

Strategic Alliances

Acquisition of NSEPPL via NCLT process, retaining its operational legacy since 2006 and existing BIS/pollution control licenses.

🌍 External Factors

Industry Trends

The industry is shifting toward higher-capacity wagons and improved coach designs, requiring more sophisticated CRF sections. The sector is growing due to government initiatives in rail infra, though currently hampered by component shortages like wheel sets.

Competitive Landscape

Competes with other steel fabricators and CRF manufacturers supplying the Indian Railways ecosystem.

Competitive Moat

Possession of specialized RDSO licenses and STR approvals which act as entry barriers. The 'split role technology' and long-standing operational legacy of acquired units (since 2006) provide a competitive edge in technical bidding.

Macro Economic Sensitivity

Highly sensitive to Indian Railways' procurement cycles and government infrastructure spending (e.g., the requirement for 2 lakh wagons).

Consumer Behavior

Shift in EPC contractor demand based on seasonal weather patterns (monsoons) and project funding availability.

Geopolitical Risks

Minimal direct exposure, but global steel price fluctuations impact domestic raw material costs.

⚖️ Regulatory & Governance

Industry Regulations

Strict adherence to RDSO standards and STR (Schedule of Technical Requirements) for all railway-related manufacturing.

Environmental Compliance

Maintains pollution control board approvals and BIS licenses through its subsidiary NSEPPL.

Taxation Policy Impact

Standard corporate tax rates apply; no specific fiscal incentives mentioned.

Legal Contingencies

NSEPPL was acquired through the NCLT process, resolving its previous 'bad financial legacy' while retaining operational approvals.

⚠️ Risk Analysis

Key Uncertainties

Volatility in steel prices can impact margins by 2-5% if price hikes cannot be immediately passed through. Industry-wide shortages of critical components (wheel sets) pose a volume risk.

Geographic Concentration Risk

High concentration in West Bengal; any regional industrial unrest or policy changes could impact 100% of production.

Third Party Dependencies

Dependency on EPC contractors for off-take of infrastructure products like monopoles and poles.

Technology Obsolescence Risk

Risk of changing railway standards (STRs) requiring constant re-tooling of CRF mills.

Credit & Counterparty Risk

Historical issue with negative operating cash flow (INR 89 Cr) due to stretched debtors; management is now strictly enforcing credit terms to mitigate this.