Admach Systems Ltd (544669) — concall transcript | 31 March 2026

Admach Systems reported 29% YoY revenue growth to INR 68.91 crores and 59% YoY PAT growth to INR 10.01 crores for H2 FY26, driven by defense, aerospace, and nuclear sectors. Management highlighted a healthy INR 65 crores order book, expansion into new manufacturing capacity, and backward integration to boost margins. EBITDA margin target of 20%+ is set for FY27, with revenue projected to exceed INR 100 crores. Export markets span 28+ countries, including direct US orders, while new partnerships aim to increase equipment contribution in steel capex. Working capital requirements for INR 200 crores revenue are estimated at INR 20-30 crores, with receivables rising sharply to INR 31 crores due to project-based billing cycles and logistics delays. Tax rate declined to ~9.5% due to higher depreciation from new capex. The company emphasized resolving shipping delays without impacting EBITDA targets, though receivable days increased to 150-160. Capex plans remain limited, with potential future investments focused on margin improvement. The order book of ~INR 65 crores is expected to convert at 60%-65% by September, supporting a pipeline of INR 200+ crores. Defense and nuclear segments are identified as key growth drivers, with nuclear orders totaling INR 10 crores confirmed and 4-8 additional projects anticipated. The company also expanded into bright bar and stainless steel processing, with equipment exports to Germany. Margin differences by segment and defense applications of NDT/X-ray machines were noted. Management expressed confidence in converting the pipeline while managing working capital dynamics.