Lower order book may pressure FY27 growth
Order book at ₹550 crore is significantly lower than last year's ₹740 crore, which could challenge the ability to achieve 15-20% growth in FY27 without strong order conversion.
ANUP / bear-case history
Track the concerns that keep returning.
The Anup Engineering · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
high
Working capital remains elevated
Average working capital was ₹367 crore at 2.2 turns, higher than expected due to lower customer advances and long-cycle orders. Management expects improvement but it remains a risk.
Geopolitical uncertainty could delay export orders
Despite the US-India trade deal, geopolitical tensions and tariff uncertainties may continue to delay finalization of export orders, impacting order book growth.
Margin compression from product mix shift
Increased share of high-volume, lower-margin products (15-18% margin) could drag overall EBITDA margins below the 22% target.
Elevated raw material costs impacting margins
High input costs, especially steel, are pressuring margins on fixed-price contracts. Management is delaying material procurement for ~₹200 crore of orders, hoping for cost normalization.
Supply chain and shipping disruptions
Closure of sea routes and shipping challenges are causing delays in raw material arrivals and increasing logistics costs for outbound deliveries.
Lack of price variation clauses in contracts
Customers are unwilling to include price variation clauses, leaving Anup exposed to cost overruns. Management acknowledged this in response to an analyst question.
Execution delays due to prolonged site projects
Some site projects at Mabel took longer than expected due to technical changes, impacting revenue. Management expects this to be resolved in Q1 FY27.