ESABINDIA - Esab India
📢 Recent Corporate Announcements
ESAB India Limited has declared a second interim dividend of Rs 25 per equity share for the financial year 2025-26, representing a 250% payout on its face value of Rs 10. The total financial outflow for this dividend distribution is estimated at Rs 38.48 crore. The company has fixed February 14, 2026, as the record date to determine eligible shareholders. The dividend is scheduled to be paid to shareholders on or before March 6, 2026.
- Second interim dividend of Rs 25 per equity share (250% of face value) declared.
- Total dividend payout amounts to Rs 38,48,25,500 for the financial year 2025-26.
- Record date for eligibility is February 14, 2026.
- Payment to be completed on or before March 6, 2026.
ESAB India has declared a second interim dividend of ₹25 per share for FY 2025-26, with the record date set for February 14, 2026. For the quarter ended December 31, 2025, the company reported a total income of ₹379.9 crore, representing an 11.5% growth over the previous year. Net profit for the quarter rose to ₹43 crore from ₹40.4 crore, despite a one-time exceptional expense of ₹13.65 crore related to new labour code provisions. The company's 9-month performance remains robust with a PAT of ₹163.1 crore compared to ₹128 crore in the prior year period.
- Declared second interim dividend of ₹25 per share (250%) with a record date of February 14, 2026.
- Quarterly revenue from operations increased 11.5% YoY to ₹379.9 crore.
- Net Profit (PAT) for Q3 grew to ₹43 crore, overcoming a ₹13.65 crore exceptional charge for gratuity liabilities.
- 9-month EPS surged to ₹106.01 compared to ₹83.16 in the corresponding period last year.
- Total dividend outflow for this interim declaration is approximately ₹38.48 crore.
ESAB India reported a steady performance for Q3 FY26 with a 6.5% YoY increase in net profit to ₹43 crore. Total income grew 11.5% YoY to ₹379.9 crore, driven by its core fabrication technology segment. The company declared a second interim dividend of ₹25 per share, bringing the total interim dividend for the year to ₹50. Profits were slightly tempered by a one-time exceptional charge of ₹13.65 crore related to gratuity liability adjustments under the new Code on Wages.
- Total income for Q3 FY26 rose 11.5% YoY to ₹379.9 crore from ₹340.8 crore.
- Net Profit after Tax stood at ₹43 crore, up from ₹40.4 crore in the same quarter last year.
- Declared a second interim dividend of ₹25 per equity share for the financial year 2025-26.
- Recognized an exceptional loss of ₹13.65 crore due to increased gratuity liability from the Code on Wages 2019.
- 9M FY26 Net Profit reached ₹163.1 crore, a 27.5% increase over the ₹128 crore reported in 9M FY25.
ESAB India Limited has announced an additional equity investment in Sunsure Solar Park Twenty-Four Private Limited, a Special Purpose Vehicle (SPV) for renewable energy. The company is increasing its shareholding from 9.78% to 17.38% with an additional subscription of ₹1.95 crore. This move is part of a group captive power arrangement to secure renewable energy for its manufacturing plants in Tamil Nadu. The total board-approved investment for this project stands at ₹2.12 crore.
- Shareholding in Sunsure Solar SPV to increase from 9.78% to 17.38%
- Additional cash investment of ₹1,94,78,700 to be made in the SPV
- Total investment approved by the Board for this project is ₹2,12,00,000
- Investment facilitates captive solar power consumption for Tamil Nadu manufacturing units
- The target SPV was incorporated in April 2024 and is currently pre-operational
ESAB India Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The filing confirms that all securities received for dematerialization during the quarter ended December 31, 2025, were processed within the mandated 15-day period. The company verified that physical certificates were mutilated and cancelled, with the depository's name substituted in the records. This is a standard administrative procedure to ensure the integrity of shareholding records.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Confirmation that dematerialization requests were processed within 15 days of receipt.
- Physical share certificates were mutilated and cancelled after due verification.
- Registrar and Share Transfer Agent (RTA) involved is Integrated Registry Management Services Private Limited.
ESAB India Limited has been served with two penalty orders from the Income Tax Department for Assessment Years 2017-18 and 2018-19. The total penalty amount is approximately Rs 1.45 crore, issued under Section 270A of the Income Tax Act for alleged underreporting of income. The company's income for AY 2017-18 was reassessed to Rs 39.76 crore from Rs 32.64 crore, while AY 2018-19 was reassessed to Rs 48.03 crore. ESAB India has stated it is in the process of filing an appeal against these orders before the appellate authority.
- Total penalty of Rs 1,44,97,216 imposed for two assessment years (2017-18 and 2018-19)
- Penalty for AY 2017-18 stands at Rs 1,23,10,580 due to reassessed income of Rs 39.76 crore
- Penalty for AY 2018-19 stands at Rs 21,86,636 due to reassessed income of Rs 48.03 crore
- The Income Tax Department alleges underreporting of total income in both instances
- Company is currently preparing to contest the orders through an appeal process
ESAB India Limited has scheduled a Board Meeting for February 10, 2026, to approve the unaudited financial results for the quarter ended December 31, 2025. Crucially, the board will also consider the recommendation of a second interim dividend for the financial year 2025-26. In accordance with SEBI regulations, the trading window for designated persons will remain closed from January 1, 2026, to February 12, 2026. This announcement provides investors with a clear timeline for upcoming financial performance data and potential income distributions.
- Board meeting scheduled for February 10, 2026, to review Q3 FY26 results.
- Consideration of a second interim dividend for the financial year ending March 31, 2026.
- Trading window closure for insiders from January 1, 2026, to February 12, 2026.
- Results to be published in Business Standard and Makkal Kural newspapers.
Financial Performance
Revenue Growth by Segment
Revenue from contracts with customers grew by 10.5% YoY. The Equipment business (Welding and Cutting) increased its revenue share to 32% from 26% in previous periods. Key growth drivers include Electrodes, Cored Wires, Gas Equipment, and Automation businesses.
Geographic Revenue Split
ESAB India is a leading player in the domestic market with a distribution network of ~200 distributors. The company reported an increase in the export of products, though specific regional percentage splits are not disclosed.
Profitability Margins
Profit After Tax (PAT) for H1 FY26 was INR 120.14 Cr, representing a 37.1% increase from INR 87.61 Cr in H1 FY25. Tangible net worth increased 10.2% to INR 375.5 Cr from INR 340.7 Cr in the prior fiscal year.
EBITDA Margin
Historical PBILDT margins are maintained between 11% and 13.5%. The company manages volatility by passing on raw material price increases to customers, ensuring core profitability remains stable.
Capital Expenditure
Capital expenditure for FY25 was INR 31.10 Cr, a 10.3% increase from INR 28.18 Cr in FY24. Spending was primarily focused on buildings for Global R&D and refurbishments of existing production lines.
Credit Rating & Borrowing
The company maintains a strong credit profile with nil debt and a Debt-Equity ratio of 0.011 as of March 2025, down from 0.015 YoY. Liquidity is supported by cash and investments of approximately INR 60 Cr.
Operational Drivers
Raw Materials
Mild Steel and MS Wire Rods constitute 50% of the total raw material cost. Other specific materials include Non-Ferrous Metals, Minerals, Chemicals, and Piece Parts.
Import Sources
Sourcing is managed through global engagement with parent company teams, though specific countries of origin are not disclosed.
Capacity Expansion
Planned expansion includes refurbishments on existing lines and the development of Global R&D facilities; specific MTPA capacity figures are not disclosed.
Raw Material Costs
Raw material and component consumption costs were INR 306.76 Cr for H1 FY26, representing 41.8% of total revenue (INR 733.57 Cr).
Manufacturing Efficiency
Manufacturing efficiency is driven by continuous engagement with global teams and leveraging global business tools; specific utilization percentages are not disclosed.
Logistics & Distribution
Distribution is handled through a network of ~200 distributors spread across India.
Strategic Growth
Expected Growth Rate
10.50%
Growth Strategy
Growth will be achieved through new product launches in key markets, expanding the export footprint for both goods and services, and capitalizing on the revival of the capital goods cycle. The company is also leveraging its Global R&D center to drive innovation.
Products & Services
Welding and cutting products, Electrodes, Cored Wires, Gas Equipment, and Automation systems.
Brand Portfolio
ESAB
New Products/Services
New products continued to grow in key markets during the year, contributing to the 10.5% overall revenue growth.
Market Expansion
Targeting increased export opportunities and leveraging the global footprint of the parent company, ESAB Corporation.
Market Share & Ranking
Leading player in the domestic welding and cutting products market; part of the Top 1000 companies by market capitalization in India.
Strategic Alliances
The company is a 73.72% subsidiary of ESAB Corporation, USA, and has no other joint ventures or associates.
External Factors
Industry Trends
The industry is seeing a revival in the capital goods cycle and a shift toward service-based revenue streams where India has a cost-competitive talent pool.
Competitive Landscape
Major player in the organized welding sector, competing on technology and distribution reach.
Competitive Moat
Moat is sustained by a dominant domestic market position, an extensive 200-distributor network, and access to the global technology and R&D of ESAB Corporation.
Macro Economic Sensitivity
Sensitive to commodity price cycles (steel) and the broader capital goods investment cycle in India.
Consumer Behavior
Increasing demand for new technology products and automated welding solutions.
Geopolitical Risks
Economic and geo-political headwinds are noted as factors causing softness in certain markets and pressure on pricing.
Regulatory & Governance
Industry Regulations
Compliant with SEBI LODR and Companies Act 2013; mandatory Risk Management Committee meetings are held twice annually.
Environmental Compliance
The company maintains a CSR policy aligned with Schedule VII of the Companies Act 2013; specific ESG spending amounts are not disclosed.
Taxation Policy Impact
Tax expense for H1 FY26 was INR 35.99 Cr. The company also wrote off INR 2.15 Cr in doubtful income tax receivables.
Legal Contingencies
Reported a write-off of INR 2.15 Cr for doubtful income tax receivables. No instances of fraud were reported during the period.
Risk Analysis
Key Uncertainties
Volatility in raw material prices (Steel/Wire Rods), cyber security threats, and technology-driven business risks.
Geographic Concentration Risk
High domestic concentration with a pan-India distribution network of 200+ partners.
Third Party Dependencies
Significant dependency on steel suppliers, as steel products account for 50% of raw material consumption.
Technology Obsolescence Risk
The company identifies technology-driven risks as a key concern and is mitigating this through Global R&D investments.
Credit & Counterparty Risk
Allowance for expected credit loss was INR 1.35 Cr for H1 FY26, indicating relatively stable receivables quality.