INNOMET - Innomet

📊 NSE: INNOMET 🏢 Mining / Minerals / Metals 📅 Last Updated: 12/14/2025 8:06

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations for H1 FY26 surged to INR 23.53 Cr, representing a 61% YoY growth and 32% sequential growth over H2 FY25. The Tungsten segment has an order book of INR 14 Cr, with 75-80% expected to be executed within FY26.

Geographic Revenue Split

Exports contributed INR 4.2 Cr in H1 FY26, accounting for approximately 17.8% of the total revenue of INR 23.53 Cr.

Profitability Margins

H1 FY26 PAT margin stood at 8.57% (INR 2.02 Cr), an 18% YoY growth. FY25 PAT was INR 2.60 Cr on revenue of INR 32.52 Cr (8% margin), compared to FY23 where PAT margins were higher due to lower depreciation costs.

EBITDA Margin

EBITDA margin for H1 FY26 was 18.1% (INR 4.26 Cr), showing a significant sequential improvement from the 9.5% margin recorded in H2 FY25 due to better operational control and a favorable product mix.

Capital Expenditure

The company undertook significant CapEx right before its 2024 IPO, leading to increased depreciation and amortization costs that impacted recent PAT margins. Specific future INR Cr plans were not disclosed.

Credit Rating & Borrowing

The company has been sanctioned working capital loans in excess of INR 5 Cr from banks/financial institutions. Specific credit ratings and interest rate percentages were not disclosed.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Tungsten and various metals. Metal prices were noted as highly volatile in H1 FY26, impacting overall profitability.

Capacity Expansion

Recent capital investments have been made to expand capacity, though specific current and planned MTPA figures were not disclosed.

Raw Material Costs

Raw material costs were described as a headwind in H1 FY26 due to high volatility. The company aims to mitigate this by focusing on specialty products with higher value-add.

Manufacturing Efficiency

The company is focusing on increasing volume and improving the product mix to enhance operational control and margins, which rose from 9.5% to 18.1% sequentially.

📈 Strategic Growth

Expected Growth Rate

25-30%

Growth Strategy

Growth will be achieved through a focus on specialty products, increasing manufacturing volumes, and aggressive marketing. The company is targeting high-tech sectors like aerospace and defense where failure is not an option.

Products & Services

Metal powders and Tungsten-based products used in technologically advanced industries.

Brand Portfolio

INNOMET

New Products/Services

Focus on specialty products and value-added product mixes to drive higher turnover and better profitability.

Market Expansion

Aggressive focus on exports (currently INR 4.2 Cr) and expanding the blue-chip client portfolio in aerospace, defense, and energy sectors.

🌍 External Factors

Industry Trends

The industry is shifting toward technologically advanced solutions for aerospace, defense, and radiation shielding. Innomet is positioning itself as a solutions provider rather than just a manufacturer.

Competitive Landscape

The company competes in the advanced materials and metal powder industry, focusing on high-spec applications to differentiate from commodity players.

Competitive Moat

Moat is built on stringent international certifications and the ability to supply sectors where 'failure is not an option,' creating high switching costs and entry barriers.

Macro Economic Sensitivity

Highly sensitive to global metal price volatility and demand in the aerospace and defense sectors.

Consumer Behavior

Increased demand for high-performance materials in defense and energy sectors is driving growth.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and relevant Accounting Standards (AS 25 for interim reporting). The company maintains stringent international certifications for aerospace and defense.

Environmental Compliance

Sustainability initiatives are core to the operational philosophy, though specific ESG costs were not disclosed.

Legal Contingencies

The company reported no pending litigations that would impact its financial position.

⚠️ Risk Analysis

Key Uncertainties

Key risks include erratic margins due to raw material price fluctuations and the impact of high depreciation (INR 27.47 Lakhs adjustment) on net profitability.