💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment of precision engineering. Total revenue for H1 FY26 reached INR 20.23 Cr, representing a growth of 7.02% compared to INR 18.91 Cr in H1 FY25. Annual revenue for FY25 was INR 38.59 Cr, up 13.3% from INR 34.03 Cr in FY24.

Geographic Revenue Split

While specific regional percentages are not disclosed, the company has a significant export orientation, evidenced by a recent purchase order from Sulzer Pumps (UK) Ltd for pump assembly components. Domestic operations are centered at the Pune, Maharashtra facility.

Profitability Margins

Net Profit Margin (NPM) improved significantly to 14.22% in H1 FY26 from 10.61% in H1 FY25. Profit After Tax (PAT) for H1 FY26 was INR 2.88 Cr, a 43.46% increase YoY from INR 2.01 Cr.

EBITDA Margin

Operating Profit Margin (OPM) for H1 FY26 is approximately 21.70% (calculated from an operating profit of INR 4.39 Cr on revenue of INR 20.23 Cr), showing an upward trend from the 13.01% reported for H1 FY25.

Capital Expenditure

The company invested INR 1.76 Cr in Property, Plant, and Equipment during H1 FY26. This follows a substantial capital expenditure of INR 6.25 Cr during the full year FY25 to enhance manufacturing capabilities.

Credit Rating & Borrowing

The company is rated 'Crisil B/Stable' under the 'Issuer Not Cooperating' category as of March 2025. Total rated bank loan facilities amount to INR 5.00 Cr, including a Cash Credit limit of INR 3.25 Cr and a proposed facility of INR 1.75 Cr with HDFC Bank.

⚙️ Operational Drivers

Raw Materials

Steel and Alloy Steel (used for shafts and flanges) represent the primary raw material cost, totaling INR 9.93 Cr in H1 FY26, which accounts for 49.1% of total revenue.

Import Sources

Not disclosed in available documents; however, the manufacturing facility is located in Pune, Maharashtra, suggesting local sourcing for standard engineering materials.

Capacity Expansion

Current capacity is not specified in units, but the company recently completed a major expansion in FY25 (INR 6.25 Cr investment) and continued with INR 1.76 Cr in H1 FY26 to support increased order flow for pump and valve components.

Raw Material Costs

Raw material costs were INR 9.93 Cr in H1 FY26, a slight decrease of 5.9% from INR 10.56 Cr in the preceding half-year, indicating improved procurement efficiency or a change in product mix.

Manufacturing Efficiency

Employee benefit expenses stood at INR 4.09 Cr (20.2% of revenue) in H1 FY26, reflecting a labor-intensive precision manufacturing process. Efficiency is driven by specialized hardfacing and overlay capabilities.

📈 Strategic Growth

Expected Growth Rate

13%

Growth Strategy

Growth is driven by expanding the international client base, as seen with the Sulzer Pumps (UK) Ltd order. The company is leveraging its specialized capabilities in hardfacing, overlays, and sub-assemblies for high-precision pump and valve components to capture higher-margin export business.

Products & Services

Precision-engineered pump and valve components including shafts, flanges, hardfacing, overlays, and sub-assemblies.

Brand Portfolio

Ameya Precision Engineers.

New Products/Services

Expansion into full sub-assembly parts for pump assemblies, moving up the value chain from individual component manufacturing.

Market Expansion

Targeting the UK and European markets for specialized engineering components, building on the recent Sulzer Pumps contract.

🌍 External Factors

Industry Trends

The precision engineering industry is shifting toward specialized coatings and hardfacing to extend the life of industrial components. The company is positioned to benefit from this trend through its overlay services.

Competitive Landscape

Competes with other SME precision engineers in the Pune hub and global component suppliers to major pump OEMs.

Competitive Moat

The company's moat lies in its specialized hardfacing and overlay techniques, which are critical for high-wear pump components. This technical expertise acts as a barrier to entry for standard machine shops.

Macro Economic Sensitivity

Sensitive to global industrial CAPEX cycles, particularly in the oil, gas, and water sectors which drive demand for pumps and valves.

Consumer Behavior

Industrial customers are increasingly demanding integrated sub-assemblies rather than individual parts to simplify their own supply chains.

Geopolitical Risks

Trade barriers or shipping disruptions between India and the UK could impact the delivery of pump components and increase logistics costs.

⚖️ Regulatory & Governance

Industry Regulations

Subject to manufacturing standards for pressure-retaining components (valves/pumps) and quality certifications required by international OEMs.

Taxation Policy Impact

The effective tax rate for H1 FY26 was approximately 25.17%, with a current tax provision of INR 96.78 Lakhs on a PBT of INR 384.54 Lakhs.

Legal Contingencies

No pending material court cases or legal disputes were disclosed in the provided financial statements.

⚠️ Risk Analysis

Key Uncertainties

The 'Issuer Not Cooperating' credit rating status poses a risk to future credit availability and cost of capital, potentially impacting liquidity if working capital needs spike.

Geographic Concentration Risk

Manufacturing is 100% concentrated in Pune, Maharashtra, making operations vulnerable to regional industrial disruptions.

Third Party Dependencies

High dependency on OEM clients like Sulzer; the loss of a single major contract could impact revenue by more than 10-15%.

Technology Obsolescence Risk

Risk is low given the mechanical nature of products, but failure to adopt advanced CNC or additive manufacturing techniques could impact long-term competitiveness.

Credit & Counterparty Risk

Trade receivables stood at INR 8.92 Cr as of Sept 2025, representing 44% of H1 revenue, indicating high counterparty credit exposure and a long collection cycle.