ATAM - Atam Valves
Financial Performance
Revenue Growth by Segment
Total revenue from operations for Q2 FY26 stood at INR 11.40 Cr, representing a significant decline of 32.66% YoY compared to INR 16.93 Cr in Q2 FY25. Segment-specific growth percentages were not disclosed.
Geographic Revenue Split
Not disclosed in available documents, though manufacturing is centralized in Jalandhar, Punjab.
Profitability Margins
PAT margin for Q2 FY26 was 7.89%, down from 9.8% in Q2 FY25. For the full year FY25, PAT margin was 10.41% compared to 11.09% in FY24.
EBITDA Margin
EBITDA margin for Q2 FY26 was 14.03%, a decrease from 15.48% in Q2 FY25. EBITDA fell 38.93% YoY to INR 1.60 Cr from INR 2.62 Cr.
Capital Expenditure
The company has identified and planned new machinery for manufacturing large-radius industrial valves up to 72 inches, though specific INR Cr values for this planned capex were not disclosed.
Operational Drivers
Raw Materials
Not disclosed, though the company operates three specialized foundry shops suggesting use of metal alloys and steel.
Capacity Expansion
Current manufacturing capacity is limited to 12-inch valves; the company is expanding to manufacture large-radius industrial valves up to 72 inches to serve high-pressure sectors like oil & gas.
Raw Material Costs
Not disclosed as a specific percentage of revenue.
Strategic Growth
Expected Growth Rate
15%
Growth Strategy
Growth will be driven by obtaining the American Petroleum Institute (API) certification by February 2026, which will unlock revenue streams in oil & gas and petrochemicals by end of FY27. Additionally, expanding valve capacity from 12 inches to 72 inches allows the company to capture high-value infrastructure projects.
Products & Services
Industrial and plumbing valves and fittings, specifically Gate, Globe, and Ball valves designed for extreme temperatures (-192Ā°C to 550Ā°C) and high pressures (up to 10,000 psi).
Brand Portfolio
ATAM, FEBI
New Products/Services
Large-radius industrial valves up to 72 inches, expected to contribute to meaningful revenue traction by the end of FY27.
Market Expansion
Targeting high-value opportunities in oil & gas, petrochemicals, and large-scale infrastructure globally following API certification.
External Factors
Industry Trends
Ongoing infrastructure push and rising industrial investments across sectors are key tailwinds. The industry is shifting toward higher quality standards, making API certification a critical competitive requirement.
Competitive Moat
Moat is built on specialized manufacturing capabilities for valves that withstand extreme conditions (-192Ā°C to 550Ā°C and 10,000 psi) and the upcoming API certification, which serves as a global benchmark for quality.
Macro Economic Sensitivity
High sensitivity to infrastructure push and industrial investment cycles, as evidenced by the 32.66% revenue drop during a challenging macro period.
Regulatory & Governance
Industry Regulations
The company must comply with American Petroleum Institute (API) standards for global manufacturing readiness. It has successfully cleared the API Q1 audit stage.
Legal Contingencies
No significant material orders were passed by regulators or courts impacting the going concern status during FY25.
Risk Analysis
Key Uncertainties
The primary uncertainty is the timing of volume recovery and the exact timeline for converting API-related trials into orders, which management expects by end of FY27.
Geographic Concentration Risk
Manufacturing is concentrated in Jalandhar, Punjab, at a single industrial area location.
Technology Obsolescence Risk
The company is mitigating technology risk by upgrading machinery to produce larger 72-inch valves.