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Insert price volatility and cyclicality
View Risks →Abha Power and Steel Limited — Q4 FY26
Abha Power and Steel reported FY26 full-year revenue of ₹62.22 crore and EBITDA of ₹5.35 crore (8.6% margin), with H2 revenue declining ~20% YoY to ₹27.65 crore due to a 20% price correction in the railway insert segment (60-70% of the impact) and raw mater...
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Abha Power and Steel reported FY26 full-year revenue of ₹62.22 crore and EBITDA of ₹5.35 crore (8.6% margin), with H2 revenue declining ~20% YoY to ₹27.65 crore due to a 20% price correction in the railway insert segment (60-70% of the impact) and raw material cost inflation. PAT for H2 was ₹0.42 crore (1.55% margin). Management attributed the weakness to cyclical railway contract renewals and expects a turnaround in H1 FY27 as sleeper plants resume production. Key positives include the commissioning of a new automated molding line (35x capacity increase to 35,000 kg/hr), NABL accreditation, entry into defense with prototype orders, and long-term railway component orders. Order book stands at ~₹21.6 crore. Risks: continued pricing pressure in inserts, customer concentration (~70% railway exposure), and elevated trade payables (3x YoY) indicating liquidity strain.
अभा पावर एंड स्टील ने पूरे साल ₹62.22 करोड़ का कारोबार किया और ₹5.35 करोड़ का मुनाफा कमाया (8.6% मार्जिन)। दूसरी छमाही में कारोबार पिछले साल से 20% गिरकर ₹27.65 करोड़ रह गया, क्योंकि रेलवे इंसर्ट (पटरी के पुर्जे) के दाम 20% गिर गए (इसका 60-70% असर पड़ा) और कच्चे माल के दाम बढ़ गए। दूसरी छमाही में शुद्ध मुनाफा सिर्फ ₹0.42 करोड़ (1.55% मार्जिन) रहा। कंपनी का कहना है कि रेलवे के ठेके चक्रीय रूप से नए सिरे से शुरू हो रहे हैं, और अगले साल की पहली छमाही में सुधार की उम्मीद है। अच्छी बात यह है कि नई मशीन लग गई है (क्षमता 35 गुना बढ़कर 35,000 किलो प्रति घंटा), NABL मान्यता मिली, सेना के लिए ऑर्डर मिले, और रेलवे के लिए लंबी अवधि के ऑर्डर हैं। कुल ऑर्डर बुक ₹21.6 करोड़ है। जोखिम: इंसर्ट के दाम पर दबाव, 70% कारोबार रेलवे पर निर्भर, और भुगतान बकाया तीन गुना बढ़ना (नकदी पर दबाव)।
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Molding capacity increase
35,000 kg/hr
+35x
Capacity expanded from 1,000 kg/hr to 35,000 kg/hr via new automated molding line.
Order book
₹21.6 crore
stable
Order book remains healthy at ~₹21.6 crore, providing near-term revenue visibility.
Insert price correction
20% decline
-20%
Insert prices fell 20% in H2 FY26, impacting 40-60% of turnover.
Railway revenue share
70-80%
stable
Railways (direct + OEM) contribute 70-80% of revenue; non-railway is 20-30%.
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Guidance and risk preview
All new equipment including automated molding line and heat treatment furnaces to be fully commissioned by August 31, 2026.
Insert prices are cyclical with railway contract renewals; further downside cannot be ruled out despite management's view that prices have bottomed.
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