ABHAPOWER - Abha Power

📊 NSE: ABHAPOWER 🏢 Castings & Forgings 📅 Last Updated: 12/13/2025 17:46

💰 Financial Performance

Revenue Growth by Segment

Single business segment (Iron and Steel manufacturing); Revenue grew 0.5% YoY to INR 34.57 Cr in H1 FY26 from INR 34.40 Cr in H1 FY25.

Geographic Revenue Split

100% of revenue is generated from the manufacturing facility located in Bilaspur, Chhattisgarh.

Profitability Margins

Gross Margin improved to 42.3% in H1 FY26 from 41.8% in H1 FY25. However, PAT Margin declined to 5.9% in H1 FY26 from 8.9% in H1 FY25 due to project-related operational expenses.

EBITDA Margin

EBITDA Margin was 10.3% in H1 FY26, a significant decline from 15.5% in H1 FY25, primarily due to higher operating expenses and capacity mismatches during facility upgradation.

Capital Expenditure

Planned modernization capex of INR 16.39 Cr; INR 12.66 Cr (77%) utilized as of September 30, 2025, for facility upgradation and a new Electric Arc Furnace (EAF).

Credit Rating & Borrowing

Not disclosed in available documents; however, finance costs were INR 0.94 Cr in H1 FY26, representing 2.7% of revenue.

⚙️ Operational Drivers

Raw Materials

Iron ore, scrap, and alloys; total raw material consumption cost was INR 19.28 Cr, representing 55.8% of total revenue in H1 FY26.

Import Sources

Sourced locally within Chhattisgarh and India to support the Bilaspur manufacturing facility.

Capacity Expansion

Current SG Iron unit utilization is >80%, while the steel plant is at 20-30%. Planned modernization aims to reach 70-80% overall efficiency within 2 years.

Raw Material Costs

Raw material costs were INR 19.28 Cr in H1 FY26, down 15.8% from INR 22.89 Cr in H1 FY25, reflecting improved procurement or lower input prices.

Manufacturing Efficiency

Capacity utilization for SG Iron units is high at >80%, but steel plant efficiency is low at 20-30% due to downstream capacity mismatches.

📈 Strategic Growth

Expected Growth Rate

10%

Growth Strategy

Modernization of the Bilaspur facility using INR 16.39 Cr IPO proceeds to fix capacity mismatches between furnaces and downstream processing, adding a new Electric Arc Furnace (EAF), and moving into higher value-chain items at a mass production scale.

Products & Services

Precision-engineered castings, specialty iron and steel products, SG Iron, and steel plant accessories.

Brand Portfolio

Abha Power and Steel.

New Products/Services

Successful completion of a new product under development with an OEM, expected to enhance revenue recognition potential.

Market Expansion

Expansion of product portfolio through facility modernization in Bilaspur, Chhattisgarh.

Strategic Alliances

Strategic partnership with an OEM for the development of specialized products.

🌍 External Factors

Industry Trends

The steel industry is shifting toward integrated setups to act as one-stop solutions; SME listing on NSE provides capital for modernization to move up the value chain.

Competitive Landscape

Operates in the competitive iron and steel casting sector; positioning for higher value-chain items to differentiate from commodity players.

Competitive Moat

Decades of expertise in iron and steel manufacturing and an integrated setup in Bilaspur provide a 'one-stop shop' advantage; high SG Iron utilization (>80%) indicates strong existing market demand.