Isgec Heavy Engineering Q2 Net Profit Soars 425% to ₹66.2 Cr as Margins Reach 5.5%

Key numbers

PE TTM	34.55xSector PE 51.86x
Market Cap	₹6,769 CrMid-range Performer
Promoter Holding	62.43%Unchanged QoQ
RSI	56.9Neutral Zone

Key highlights

• Net profit surged 425.4% YoY to ₹66.2 crore from ₹12.6 crore in the previous year
• Revenue from operations grew 11.3% YoY to ₹1,850 crore despite a slight sequential dip
• Operating margins expanded to 5.5% in Q2-27 from 3.0% in Q2-26
• A change in depreciation method at an overseas subsidiary boosted profit before tax by ₹28.41 crore
• Consolidated order book remained strong at ₹8,958 crore as of the end of June 2026
• Company maintains FY27 standalone revenue growth guidance of 10% to 12%

Profitability Surges on Margin Expansion

Isgec Heavy Engineering Limited reported a significant boost in its bottom line for the quarter ended September 30, 2026, with consolidated net profit jumping 425.4% year-on-year to ₹66.2 crore. This performance was underpinned by a notable expansion in operating margins, which climbed to 5.5% from 3.0% in the same quarter last year. Although sequential revenue saw a 6.5% decline from ₹1,980 crore in Q1-27 to ₹1,850 crore, the net profit improved by 278.3% quarter-on-quarter.

The improved profitability reflects better cost management and higher contributions from high-margin project segments.

Segment Performance and Accounting Adjustments

• Industrial Projects remains the largest segment, offering turnkey solutions for power and distilleries
• Manufacturing of Machinery segment continues to drive growth in process plant equipment and castings
• A shift from WDV to Straight Line Method for depreciation in an overseas unit added ₹28.41 crore to PBT
• Gain of ₹3.73 crore recorded in H1 FY27 following the stake dilution in SFW Isgec Energy
• Consolidated revenue from operations for the half-year stood at ₹3,830 crore

Order Visibility and Market Standing

The company continues to benefit from a substantial consolidated order book, which stood at ₹8,958 crore as of June 30, 2026. This provides clear revenue visibility as the company pursues its FY27 standalone revenue growth guidance of 10% to 12%, reaffirmed in August 2026. From a valuation perspective, Isgec is trading at a TTM P/E of 34.55x, which is a considerable discount compared to the industry average P/E of 61.69x.

With promoter holdings steady at 62.43%, the firm maintains a stable ownership structure amidst its ongoing operational transition in overseas markets.

Management Note on Depreciation Change

This has resulted in lower depreciation expense and consequent higher profit before tax in the statement of Consolidated Financial Results for the quarter and six months ended September 30, 2026 by ₹ 2,841 lakhs.

What to watch next

• Execution of the ₹8,958 crore consolidated order book through FY27
• Next quarterly financial results announcement scheduled for February 2027
• Monitoring the impact of the New Labour Code provisions on employee benefit costs
• Progress on the 10-12% standalone revenue growth guidance for the full financial year

“The management of one of the Company's overseas subsidiary, reassessed the estimated useful lives of certain items of Property, Plant and Equipment (PPE) and the depreciation method applied thereto... resulting in lower depreciation expense and consequent higher profit before tax.”

Isgec Heavy Engineering · financial snapshot

Share price	₹920.6
Market capitalisation	₹6,769.13 Cr
Revenue (annual)	₹6,789.26 Cr
Net profit (annual)	₹108.92 Cr
Revenue (latest quarter)	₹1,980.00 Cr-3.33% vs previous quarter
Net profit (latest quarter)	₹8.95 Cr-87.78% vs previous quarter
P/E (TTM)	34.55×Sector 51.86×
Promoter holding	62.43%0.00% QoQ
FII holding	3.86%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.