Cryogenic OGS - Cryogenic OGS

📊 BSE: 544440 🏢 Industrial Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment (Oil and Gas Solutions). Revenue from operations grew 35.62% YoY to INR 32.90 Cr in FY25 from INR 24.26 Cr in FY24. In H1 FY26, revenue reached INR 21.06 Cr, representing a 57% YoY growth compared to INR 13.41 Cr in H1 FY25.

Geographic Revenue Split

While specific percentage splits are not disclosed, the company has a significant domestic presence (200+ locations) and is rapidly expanding exports. Key international projects include a turnkey project for Honeywell Nigeria and a contract for 143 Truck Loading Skids for an end-user in Egypt.

Profitability Margins

Net Profit Margin for FY25 was 18.02%, a slight decrease from 19.95% in FY24. However, H1 FY26 PAT margin stood at 20%, showing recovery. Operating Profit Margin for FY25 was 25.13% compared to 28.39% in FY24.

EBITDA Margin

EBITDA margin expanded significantly to 30% in H1 FY26 from 21% in H1 FY25, a 900 bps improvement driven by a shift toward high-value turnkey projects and better sourcing control.

Capital Expenditure

The company operates an 8,300 sq. meter ISO-certified manufacturing facility in Vadodara. While specific future INR Cr figures are not disclosed, the company is investing in 'new-age operational initiatives' and advanced instrumentation manufacturing.

Credit Rating & Borrowing

Interest costs decreased by 22% YoY to INR 2.04 Lakhs in H1 FY26 from INR 2.63 Lakhs in H1 FY25, indicating low reliance on external debt and efficient capital management.

⚙️ Operational Drivers

Raw Materials

Key raw materials include steel (for fabrication), specialized components (valves, flowmeters, instruments, pumps), and power. Cost of materials consumed was INR 21.25 Cr in FY25, representing 64.6% of total revenue.

Import Sources

The company sources high-value items and technology from European countries, specifically mentioning a European technology leader for the development of aDENS Density Probes.

Key Suppliers

Not specifically named, but the company has transitioned from client-supplied high-value items to procuring 100% of key equipment like valves and flowmeters independently to capture full project value.

Capacity Expansion

Current facility is 8,300 sq. meters in Vadodara, Gujarat. Expansion is focused on 'Strategic Market Integration' into meter run manufacturing for global ultrasonic flowmeter OEMs.

Raw Material Costs

Raw material costs accounted for 64.6% of revenue in FY25 (INR 21.25 Cr). The company manages costs by integrating procurement into its turnkey model, allowing for better sourcing control and higher value addition.

Manufacturing Efficiency

Efficiency is driven by in-house engineering using Auto-CAD and Plant 3D for customized design, reducing coordination risk and ensuring precision in fabrication.

Logistics & Distribution

The company manages complex international logistics, evidenced by the delivery of 100% procurement and delivery for the Honeywell Nigeria project.

📈 Strategic Growth

Expected Growth Rate

57%

Growth Strategy

The company is transitioning from a component fabricator to an integrated turnkey solutions provider (Engineering, Procurement, Construction). This allows them to capture 100% of project value. Growth is also driven by new product launches (aDENS Density Probes) and expansion into high-growth sectors like LNG, hydrogen, and renewables.

Products & Services

Gas metering skids, meter runs, chemical and additive injection skids, strainers, air and vapor eliminators, pressure vessels, LPG vapor eliminators, prover tanks, and aDENS Density Probes.

Brand Portfolio

Cryogenic OGS, aDENS.

New Products/Services

Launched aDENS Density Probes and advanced into meter run manufacturing for global ultrasonic flowmeter OEMs, targeting recurring global business.

Market Expansion

Targeting Africa and the Middle East (Egypt, Nigeria) and expanding domestic presence in segments prioritized for government investment like LNG and renewables.

Market Share & Ranking

The company claims a 'major market share' in catalogue products like basket strainers and air eliminators for liquids in India.

Strategic Alliances

Collaborated with a European technology leader for the development of the aDENS Density Probes.

🌍 External Factors

Industry Trends

The Indian oil and gas equipment market is evolving toward integrated turnkey solutions. There is a strong shift toward energy transition technologies (LNG, Hydrogen), where the company is positioning itself as a critical partner.

Competitive Landscape

Faces competition from European manufacturers and local engineering firms. Competitive edge is maintained through lower cost structures and integrated turnkey capabilities.

Competitive Moat

Moat is built on 20+ years of PSU relationships, stringent global certifications (API, ASME, ATEX), and the high technical barrier of entry for precision measurement skids. These are sustainable due to the high cost of failure in oil and gas operations.

Macro Economic Sensitivity

Highly sensitive to Oil & Gas sector CAPEX and government infrastructure spending on energy transition (LNG/Hydrogen).

Consumer Behavior

Industrial clients are shifting toward 'single-point responsibility' vendors to reduce coordination risks in complex projects.

Geopolitical Risks

Exposure to regional stability in Africa (Nigeria) and the Middle East (Egypt) for large-scale export projects.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with API, ASME, IS 2825, and ATEX regulations for safety and performance in demanding industrial environments.

Environmental Compliance

The company is ISO 14001:2015 certified for environmental management; specific compliance costs are not disclosed.

Taxation Policy Impact

Tax expense for H1 FY26 was INR 1.76 Cr, representing an effective tax rate of approximately 24.2% of PBT.

Legal Contingencies

The auditor's report indicates that the company has maintained proper records and no material discrepancies were noticed; no major pending litigation values are disclosed.

⚠️ Risk Analysis

Key Uncertainties

Commodity price risk (steel), global economic slowdown affecting export demand, and potential human resource attrition in a specialized engineering field.