Anup Engineering rebounds sequentially as revenue scales and margins improve
Revenue growth outpaced expense growth, but margin remained below the Industrials peer median and raw-material costs stayed a pressure point.
Filed 06 Nov 2026, 12:04 IST · The Anup Engineering Ltd (ANUP)
Key takeaways
- Revenue rose 45.63% sequentially as expenses grew 42.48%, lifting operating margin by 2 percentage points.
- Net profit increased 1054.39% sequentially, helped by a 12.88-percentage-point fall in the tax rate from a low Q1 base.
- Operating margin at 9.56% remained 1.94 percentage points below the 11.5% median for 197 Industrials peers.
Price around the results
Q2 recovery was driven by operating scale
The consolidated business delivered a sharp sequential recovery, with revenue up 45.63% and operating profit up 84.16%. Expenses rose 42.48%, slower than revenue, so operating margin expanded by 2 percentage points to 9.56%. The increase in net profit was amplified by the low Q1 base, with profit before tax up 858.06% sequentially.
Lower tax rate helped profit conversion
The tax rate fell 12.88 percentage points sequentially to 26.1%, which materially supported the rise in net profit. Interest costs increased 14.2%, while other income accounted for 10.77% of profit before tax, so the quarter's profit improvement was not entirely operating in nature. Management said geopolitical uncertainty raised raw-material costs, including a 6% increase during H1 FY27, and that fixed-cost under-absorption had also affected EBITDA margins.
Margin improved but still lagged Industrials peers
Anup Engineering's 9.56% operating margin was 1.94 percentage points below the 11.5% median among 197 Industrials companies that had reported the quarter. The available trend shows a sequential improvement from Q1's 7.56% margin, but does not establish a longer multi-quarter direction. Management said Q2 revenue grew 46% sequentially and EBITDA margins improved, with three technical and site-service executions in progress.
Order visibility is the main management message
Management said the pending orderbook stood at Rs 941 cr, including about Rs 390 cr booked for FY28, and that the company had secured more than Rs 150 cr of thermal-power orders. The company told analysts it sees a Rs 1,200 cr inquiry pipeline and is targeting 20% growth next year. Management also said clean-energy storage could contribute about 20% of revenue next year, while a three-bay Phase 3 expansion at Kheda remains a future plan.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹182 cr | ₹125 cr | +45.63% |
| Other income | ₹1 cr | ₹1 cr | +84.62% |
| Expenses | ₹165 cr | ₹116 cr | +42.48% |
| Operating profit | ₹17 cr | ₹9 cr | +84.16% |
| Operating margin (%) | 9.56% | 7.56% | — |
| Interest | ₹2 cr | ₹2 cr | +14.20% |
| Depreciation | ₹8 cr | ₹7 cr | +2.83% |
| Profit before tax | ₹9 cr | ₹1 cr | +858.06% |
| Tax | ₹2 cr | ₹0 cr | +547.22% |
| Net profit | ₹7 cr | ₹1 cr | +1054.39% |
| EPS (₹) | ₹3.29 | ₹0.28 | +1075.00% |
Operating margin of 9.56% compares with a Industrials sector median of 11.50% across 197 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q2 revenue grew 46% sequentially and EBITDA margins improved.
- Three technical and site services executions are currently in progress.
Guidance & outlook
- The company has a pending orderbook of ₹941 crore, including about ₹390 crore booked for FY28.
- The company sees a ₹1,200 crore inquiry pipeline and aims for 20% growth next year.
- The thermal power segment is expected to grow strongly for at least three years.
- Clean energy storage is expected to contribute about 20% of revenue next year.
- The company plans to focus on stabilisation, execution, consolidation and risk mitigation amid global volatility.
Expansion
- A three-bay Phase 3 expansion at the Kheda plant is identified as a future plan.
New orders
- The company secured orders exceeding ₹150 crore for thermal power plants.
- The company secured orders for three proprietary licensed products.
New products
- The company expects to add five proprietary equipment products to its product list this year.
New initiatives
- The company is pursuing additional critical and proprietary products to create more niche market space.
- The company is focusing on stabilising current operations, improving execution, consolidating and mitigating risks.
Problems & risks
- Geopolitical uncertainties increased raw material costs and pressured margins during the quarter.
- Lower revenue and under-absorption of fixed costs affected EBITDA margins.
- Elevated geopolitical tensions increased raw material costs by 6% during H1 FY27.
What to watch
- Whether operating margin holds above the Q2 level of 9.56%.
- Whether the 6% H1 FY27 increase in raw-material costs moderates or continues to pressure margins.
- Conversion of the Rs 941 cr pending orderbook, including the Rs 390 cr booked for FY28.