💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations decreased by 68.6% YoY, falling from INR 4,270.55 Lakhs in H1 FY25 to INR 1,339.19 Lakhs in H1 FY26. Segment-specific growth percentages are not disclosed, but the company operates in heavy engineering projects for sugar, hydro power, and pollution control.

Geographic Revenue Split

Not explicitly disclosed as percentages, but the company is a 'Government of India Certified Star Export House,' indicating a significant portion of revenue is derived from international markets across its 29+ years of marketing heavy engineering equipment globally.

Profitability Margins

Net profit margin for H1 FY26 stood at 0.66% (INR 9.04 Lakhs profit on INR 1,376.83 Lakhs total income). This is an improvement from H1 FY25, which saw a net loss of INR 11.08 Lakhs, despite the 68.6% drop in revenue, primarily due to a 90% reduction in material costs.

EBITDA Margin

Operating profit before working capital changes was INR 22.19 Lakhs in H1 FY26, representing an EBITDA-like margin of 1.61%. This is a decrease from H1 FY25's operating profit of INR 35.71 Lakhs, reflecting lower scale despite better cost control.

Capital Expenditure

Tangible assets (Property, Plant, and Equipment) were valued at INR 443.47 Lakhs as of September 30, 2025, compared to INR 459.24 Lakhs as of March 31, 2025, suggesting minimal new CapEx and primarily depreciation-led changes during the period.

Credit Rating & Borrowing

Not disclosed in available documents. However, finance costs for H1 FY26 were low at INR 2.30 Lakhs on short-term borrowings of INR 427.09 Lakhs.

⚙️ Operational Drivers

Raw Materials

Specific raw materials are not named, but material costs for heavy engineering projects (sugar and hydro plants) accounted for 29.3% of revenue (INR 392.47 Lakhs) in H1 FY26, down from 91.9% in H1 FY25.

Import Sources

Not specifically disclosed, though the company's status as a Star Export House and its history in international markets suggest global procurement for heavy engineering components.

Capacity Expansion

The company has promoted over 40 Hydro Power Projects ranging from 1 MW to 60 MW. Specific manufacturing capacity in units or MT is not disclosed as the business is project-based engineering and supply.

Raw Material Costs

Material costs were INR 392.47 Lakhs in H1 FY26, a 90% decrease from INR 3,924.72 Lakhs in H1 FY25. This massive shift is linked to the project-based nature of the business where material procurement is tied to specific project milestones.

Manufacturing Efficiency

Not disclosed. The company focuses on marketing, selling, erection, installation, and commissioning rather than pure-play manufacturing volume.

Logistics & Distribution

Not explicitly disclosed as a percentage; distribution and logistics are bundled within 'Other expenses' which totaled INR 121.48 Lakhs in H1 FY26.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth is targeted through the promotion of Renewable Energy (Hydro Power) and Pollution Control equipment. The company leverages its 29+ years of experience to provide high-end engineering services and operational training for sugar and hydro plants in international markets.

Products & Services

Sugar plants, hydro power plants, pollution control systems, heavy engineering equipment, erection/installation services, and operational training.

Brand Portfolio

Ishan International.

New Products/Services

Expansion into high-end engineering services and solutions for all types of activities in Hydro Power and Pollution Control Systems is expected to drive future service-linked revenue.

Market Expansion

Targeting global markets for renewable energy and pollution control equipment, building on its history of 40+ hydro projects.

Market Share & Ranking

Not disclosed. The engineering sector in India is highly fragmented, with Ishan positioning itself as a specialized project exporter.

🌍 External Factors

Industry Trends

The global engineering services market is projected to reach US$ 1 trillion by 2032. There is a strong shift toward Renewable Energy and Pollution Control, which aligns with Ishan's core project focus.

Competitive Landscape

Competes with global heavy engineering firms like Siemens (market cap US$ 127 billion) and various domestic engineering project exporters.

Competitive Moat

Durable advantages include 29+ years of specialized experience in heavy engineering and a 'Star Export House' certification. These are sustainable because they build high switching costs for clients requiring specialized operational training and installation.

Macro Economic Sensitivity

Highly sensitive to global infrastructure spending and renewable energy policies. The engineering sector accounts for 27% of India's industrial segment, making it a proxy for industrial GDP growth.

Consumer Behavior

Industrial shift toward green energy and stricter pollution norms is driving demand for the company's hydro and pollution control systems.

Geopolitical Risks

Trade barriers and changes in international engineering standards could impact the company's ability to export to its primary international markets.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by pollution control norms and hydro power licensing requirements in target export countries. Compliance with SEBI LODR and Companies Act 2013 is maintained.

Environmental Compliance

The company is ISO 9001:2015 certified and its core business includes supplying pollution control systems, aligning it with global ESG and environmental norms.

Taxation Policy Impact

Effective tax rate for H1 FY26 was approximately 67.4% (INR 18.72 Lakhs tax on INR 27.76 Lakhs PBT), likely due to deferred tax adjustments or earlier year interest expenses.

Legal Contingencies

No pending applications or proceedings under the Insolvency and Bankruptcy Code, 2016 were reported for the financial year.

⚠️ Risk Analysis

Key Uncertainties

Revenue volatility is a major risk, as evidenced by the 68.6% YoY decline in H1 FY26 revenue, which can impact fixed cost absorption by 10-15%.

Geographic Concentration Risk

High concentration in international markets (exports) exposes the company to global economic cycles and trade policy shifts.

Third Party Dependencies

Significant reliance on third-party suppliers for project materials, with trade payables making up nearly 40% of the balance sheet.

Technology Obsolescence Risk

Risk of falling behind in high-end engineering service technology, though the company is actively integrating new solutions for hydro and pollution control.

Credit & Counterparty Risk

Trade payables of INR 2,022.30 Lakhs indicate high leverage with suppliers, while the lack of reported Expected Credit Losses (ECL) suggests stable receivable quality.