Anup's margin trails peers as quarterly order booking hits Rs 315 cr
Management attributed the 7.56% operating margin to lower execution and fixed-cost under-absorption; the pending orderbook stood at Rs 985 cr.
Filed 06 Aug 2026, 11:54 IST · The Anup Engineering Ltd (ANUP)
Key takeaways
- Operating margin was 7.56%, with management attributing the pressure to lower revenue and under-absorption of fixed costs.
- Quarterly order booking reached approximately Rs 315 cr, the company's highest ever, despite lower execution during the quarter.
- The pending orderbook stood at Rs 985 cr, including approximately Rs 240 cr booked for FY28.
Price around the results
Lower execution weighed on Q1 revenue
The consolidated quarter reflected lower execution, which management said was planned because of low order booking in the previous year. The company also began executing two large air-cooled heat exchangers for a marquee customer in Germany. Management said the company booked approximately Rs 315 cr of orders during the quarter, its highest-ever quarterly order booking.
Fixed-cost absorption and input costs pressured margins
Operating margin was 7.56%, and management attributed the pressure mainly to lower revenue causing under-absorption of fixed costs. The company also said global uncertainty, supply-chain issues, freight and energy costs increased pressure on raw-material availability and prices. Depreciation of Rs 7.43 cr and interest of Rs 1.62 cr reduced operating profit of Rs 9.47 cr to profit before tax of Rs 0.93 cr. Other income of Rs 0.52 cr was meaningful relative to profit before tax.
Operating margin was below the Industrials peer median
Anup's 7.56% operating margin was 6.63 percentage points below the 14.19% median for 54 Industrials peers that had reported the quarter. The company ranked 10th from the bottom on this measure. Management said it prioritised profitability over short-term growth despite the execution constraints.
Management is focusing on execution and niche products
Management said FY27 priorities are stabilisation, better execution, consolidation and risk mitigation. It also said the company plans to expand its Technical Services business and continue adding proprietary products to target niche segments. The presentation flags planned entry into nuclear, thermal energy and clean-energy storage, while the pending orderbook was Rs 985 cr, including approximately Rs 240 cr booked for FY28.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹125 cr |
| Other income | ₹1 cr |
| Expenses | ₹116 cr |
| Operating profit | ₹9 cr |
| Operating margin (%) | 7.56% |
| Interest | ₹2 cr |
| Depreciation | ₹7 cr |
| Profit before tax | ₹1 cr |
| Tax | ₹0 cr |
| Net profit | ₹1 cr |
| EPS (₹) | ₹0.28 |
Operating margin of 7.56% compares with a Industrials sector median of 14.19% across 54 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company achieved quarterly revenue of ₹125.2 Cr and EBITDA of ₹9.5 Cr.
- The company began executing two large Air-Cool Heat Exchangers for a marquee customer in Germany.
Guidance & outlook
- The company reported a healthy pending orderbook of ₹985 Cr, including approximately ₹240 Cr booked for FY28.
- The company has an order inquiry pipeline of ₹1,100 Cr.
- The company will focus on stabilisation, execution, consolidation and risk mitigation during FY27.
- The company plans to strategically grow its Technical services business to boost growth and enhance profitability.
- The company aims to continuously add new critical and proprietary products to create more niche space.
Expansion
- The company plans to enter the Nuclear, Thermal energy and clean energy storage segments.
- Phase 3 at the Kheda manufacturing plant, comprising three bays, is a future plan.
New orders
- The company recorded its highest-ever quarterly order booking of approximately ₹315 Cr.
- The company booked more than ₹150 Cr of orders for Thermal Power plants.
New initiatives
- The company booked two proprietary license products as part of its strategy to enter niche segments.
- The company is developing its Technical Services business to support growth and profitability.
Competition
- The company entered an elite group of manufacturers of critical heat exchangers for the Thermal Power sector.
Problems & risks
- Execution was planned lower because of low order booking during the previous year.
- Global uncertainties, supply chain challenges, freight and energy costs pressured raw-material availability and prices.
- Lower revenue caused under-absorption of fixed costs and affected EBITDA margins.
- The company prioritised profitability over short-term growth despite growth challenges.
What to watch
- Whether operating margin moves up from 7.56% as execution normalises.
- Revenue conversion from the Rs 985 cr pending orderbook.
- Whether quarterly order booking sustains the approximately Rs 315 cr level.