WINSOL - Winsol

📊 NSE: WINSOL 🏢 Engineering - Turnkey Services 📅 Last Updated: 12/14/2025 15:17

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew by 58.07% YoY, reaching INR 66.10 Cr in H1 FY26 compared to INR 41.82 Cr in H1 FY25. Standalone revenue followed a similar trajectory, increasing 58.06% to INR 66.10 Cr. Segment-specific splits were not disclosed in the available documents.

Geographic Revenue Split

Not disclosed in available documents; however, the company is headquartered in Jamnagar, Gujarat, and maintains operations primarily within India.

Profitability Margins

Consolidated Net Profit Margin for H1 FY26 stood at 10.54%, a contraction from 14.46% in H1 FY25. This margin compression is primarily attributed to a 311% surge in finance costs and a 17.3% increase in other expenses. Consolidated PAT grew 15.16% YoY to INR 6.96 Cr.

EBITDA Margin

Core profitability (PBT margin) was 14.43% in H1 FY26, down from 19.40% in H1 FY25. The decline of 497 basis points is linked to higher operational overheads and interest burdens associated with the incorporation of new subsidiaries.

Capital Expenditure

The company undertook significant capital expenditure of INR 17.18 Cr on fixed assets during H1 FY26, a massive increase compared to INR 0.26 Cr in the previous full year, indicating aggressive capacity building.

Credit Rating & Borrowing

Finance costs increased from INR 0.35 Cr in H1 FY25 to INR 1.43 Cr in H1 FY26, representing a 308% increase in interest outgo. The Interest Service Coverage Ratio declined from 24.39 to 7.69, reflecting higher debt servicing requirements.

⚙️ Operational Drivers

Raw Materials

Not specifically named in the documents; however, the company reports inventories of INR 36.17 Cr, representing 31.4% of total assets.

Capacity Expansion

The company expanded its corporate structure by incorporating Alunova Profiles Private Limited (51% stake) on May 24, 2025, and operates Repower Infrastructure Private Limited as a subsidiary to enhance its engineering and infrastructure service capabilities.

Raw Material Costs

Inventory levels increased by 40.6% from INR 25.72 Cr in March 2025 to INR 36.17 Cr in September 2025, suggesting a strategy of stockpiling to support the 58% revenue growth and mitigate procurement delays.

📈 Strategic Growth

Expected Growth Rate

58%

Growth Strategy

Growth is driven by the acquisition of high-value contracts from major industrial players like Reliance Industries Limited. The strategy includes inorganic expansion through the incorporation of Alunova Profiles Private Limited and leveraging the capabilities of Repower Infrastructure Private Limited to capture a larger share of the infrastructure engineering market.

Products & Services

Engineering services, infrastructure development, and profile manufacturing (via Alunova Profiles).

Brand Portfolio

Winsol Engineers, Alunova Profiles, Repower Infrastructure.

New Products/Services

The company is expanding into profile manufacturing through its new subsidiary, Alunova Profiles Private Limited, which is expected to contribute to the consolidated top line starting FY26.

Market Expansion

Expansion is focused on the SME Emerge platform of the NSE, targeting large-scale industrial infrastructure projects in Gujarat and across India.

Strategic Alliances

Received a Letter of Intent from Reliance Industries Limited on December 10, 2025, for an undisclosed project value, which serves as a major strategic validation.

🌍 External Factors

Industry Trends

The industry is shifting toward integrated engineering and infrastructure solutions. Winsol is positioning itself by adding specialized subsidiaries to handle diverse project requirements, moving from a pure-play engineering firm to a diversified infrastructure group.

Competitive Landscape

Operates in a fragmented engineering and infrastructure sector, competing with both local SMEs and larger EPC firms for industrial contracts.

Competitive Moat

The company's moat is built on its ability to secure contracts from Tier-1 clients like Reliance Industries and its status as a listed SME, which provides access to capital markets while maintaining lower regulatory compliance costs.

Macro Economic Sensitivity

Highly sensitive to industrial capex cycles in India, particularly in the renewable energy and infrastructure sectors where its clients operate.

Consumer Behavior

Not applicable as the company is B2B focused.

⚖️ Regulatory & Governance

Industry Regulations

The company operates under SEBI (LODR) Regulations 2015 but is exempt from Regulation 27(2) corporate governance reporting due to its listing on the SME Emerge Platform and having a net worth below INR 25 Cr and paid-up capital below INR 10 Cr as of the last financial year.

Taxation Policy Impact

Effective tax rate for H1 FY26 was 27.0% (INR 2.58 Cr tax on INR 9.54 Cr PBT).

Legal Contingencies

No specific pending court cases or values were disclosed in the provided financial statements.

⚠️ Risk Analysis

Key Uncertainties

The primary risk is the 311% increase in finance costs, which could lead to a debt trap if revenue growth (currently 58%) slows down. Working capital blockage in trade receivables (INR 41.31 Cr) is another key risk.