Order Book Or Contract Wins
Expected: CurrentHIGH confidence
What: Consolidated Order Book: ₹8,709 Cr
“The orders in hand as on 31st December 2025 on a consolidated basis are INR8,709 crores against INR7,334 crores as on 31st December 2024.”
ISGEC Heavy Engineering Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +41.1%Strong4w Streak
In , ISGEC Heavy Engineering Ltd (Infra - Engineering - General) is outperforming Nifty 500 with +41.1% relative strength. Fundamentals: Strong. On a 4-week streak.
ISGEC Heavy Engineering Ltd Key Facts
- PE Ratio
- 24.1x
- Market Cap
- ₹7,905 Cr
- PAT Growth YoY
- +265%
- Revenue Growth YoY
- +16%
- OPM
- 11.0%
- RS vs Nifty 500
- +41.1%
PE: Mid ContractionStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
💰Trading 28% below estimated fair value
Earnings Acceleration Triggers
1. Order Book Or Contract Wins
CurrentHIGH
2. Operating Leverage Inflection
Q3 FY26HIGH
3. Geographical Expansion
CurrentMEDIUM
Key Risks
1. Rising prices of steel, nickel, copper, and aluminium impact electricals and str
MEDIUM2. Potential for liquidated damages if projects are delayed
LOW3. Forex fluctuation loss on loans given to subsidiary companies
LOWSector-Specific Signals
Consolidated Order Book₹8,709 Cr+18.7%
Consolidated Order Inflow (Q3)₹1,733 Cr+14.8%
Export Share of Standalone Revenue27.7%+15.1%
Expected Retention Money Release₹250 Cr
Key Numbers
PAT Growth YoY
+265%
Stable
Revenue YoY
+16%
Inflection Up
Operating Margin
11.0%
+200 bps YoY
PE Ratio
24.1
Current Price
₹1,075
Dividend Yield
0.47%
Fundamental Score
62/100
Strong
3Y PAT CAGR
+32%
Market Cap
7.9K Cr
Valuation
Undervalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are ISGEC Heavy Engineering Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 19, 2026
Operating Leverage Inflection
Expected: Q3 FY26HIGH confidence
What: Manufacturing Margins: 15.5%
“So over a two-year period, we've generally improved our efficiency. We've improved our capacity utilization... your profits jump disproportionately.”
Geographical Expansion
Expected: CurrentMEDIUM confidence
What: Export Revenue Share: 28%
“In terms of international, yes, we have a lot of focus on booking more international orders because there, the competition is with better companies... you are able to ask for a little better margin.”
Value Added Product Mix Shift
Expected: FY27LOW confidence
What: Machining Facility Investment: ₹22.6 Cr
Impact: ₹20 Cr annual value add
“Board has approved an investment proposal of INR22.6 crores for setting up a new machining facility... This can yield an additional value addition of about INR20 crores per annum.”
Demerger Spin Off Value Unlock
Expected: OngoingMEDIUM confidence
What: Assets Held for Sale: ₹1,098 Cr
“We presently continue to work to sell the subsidiary companies along with the assets... classified as discontinued operations and the related assets are classified as held for sale.”
Consolidated PBT growth of 72% from continuing operations.
HIGH confidence
What: Consolidated PBT growth of 72% from continuing operations.
“The consolidated profit before tax for the quarter ended December 2025, from continuing operations increased by 72% to INR150 crores compared to INR87 crores.”
Skids and Modules Capex guidance raised
HIGH confidence
What: ₹87 Cr → ₹110 Cr
“The proposed investment of INR87 crores has now been revised to INR110 crores.”
What Are the Key Risks for ISGEC Heavy Engineering Ltd?
Earnings deceleration risks from management commentary
Rising prices of steel, nickel, copper, and aluminium impact electricals and str
MEDIUMTrigger: Unpredictability of input pricing makes long-duration projects risky.
Management view: Using back-to-back offers from suppliers and focusing on shorter-duration project orders (max 27-30 months).
Monitor: commodity
Potential for liquidated damages if projects are delayed
LOWTrigger: Variations in execution efficiency or site readiness can lead to penalties.
Management view: Provisions are made on a quarter-to-quarter basis as needed.
Monitor: litigation
Forex fluctuation loss on loans given to subsidiary companies
LOWTrigger: Currency volatility affects the valuation of inter-company debt.
Management view: These gains/losses are largely eliminated at the consolidated level.
Monitor: fx
What Is ISGEC Heavy Engineering Ltd's Management Saying?
Key quotes from recent conference calls
“And for the full year, we do expect an increase in revenue and profits in the range of about 7% to 8%. [Previous Revenue Growth guidance]”
“This investment will be completed around July 2027. When completed, this can yield an additional annual revenue of about INR375 crores. [Initiative: Machine Building Expansion]”
“The proposed investment of INR87 crores has now been revised to INR110 crores. The first phase of this facility is expected to be completed by March 2027. [Initiative: Skids and Modules Facility Expansion]”
“Steel and to a certain extent, nickel and then copper and aluminium. Copper and aluminium basically because of their impact on electricals. [Risk (commodity): MEDIUM]”
What Did ISGEC Heavy Engineering Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹1,765 Cr
YoY +17%QoQ +2.3%
Why: Growth was driven by improved performance in the standalone entity and higher profits from the joint venture subsidiary, Isgec Hitachi Zosen Limited.
Consolidated revenue showed steady growth despite a high base, supported by the JV turnaround.
PAT
₹84 Cr
YoY +265.2%QoQ +50%
Why: Profitability surged due to better operational efficiency and higher contributions from the Hitachi Zosen joint venture.
PAT includes a drag from discontinued operations in the Philippines, which is currently being held for sale.
Other Highlights
• Standalone PBT increased 27% to ₹99 crores for the quarter ended December 2025.
• Consolidated PBT from continuing operations rose 72% to ₹150 crores.
• Export revenue for the standalone entity reached ₹378 crores in Q3.
What Sector Metrics Matter for ISGEC Heavy Engineering Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Consolidated Order Book
₹8,709 Cr
YoY +18.7%QoQ -0.9%
Why: Strong order inflows in previous quarters offset by high execution in Q3.
Consolidated Order Inflow (Q3)
₹1,733 Cr
YoY +14.8%QoQ +18.6%
Why: Driven by broad-based demand across sectors and strong export bookings.
Export Share of Standalone Revenue
27.7%
YoY +15.1%
Why: Strategic focus on international markets for better margins and payment terms.
Expected Retention Money Release
₹250 Cr
Why: FGD projects reaching 99% completion, with milestones expected in the March quarter.
Biofuel Plant Capacity Utilisation
75%
Why: Plant is operational and ramping up during the sugarcane crushing season.
Target Manufacturing Revenue
₹3,700 Cr
Why: Expected peak potential after completion of ongoing capex projects.
Project Business EBITDA Margin
8-9%
Why: Management's steady-state expectation for the core engineering segment.
Assets Held for Sale (Biofuel)
₹1,098 Cr
QoQ +2.0%
Why: Includes the Philippines plant and associated assets pending sale.
What Is ISGEC Heavy Engineering Ltd's Management Guidance?
Forward-looking targets from management for FY26
Revenue Growth Target
7%
OPM Guidance
8–9%
Capex Plan
₹218 Cr
Revenue Outlook
7% to 8%
Margin Outlook
REAFFIRMED
Capex Plan
₹218 Cr
Enhancing capacity of the Machine Building Division for presses and industrial machinery.
Management Tone: BULLISH
Guidance Changes
RAISED
Skids and Modules Capex: ₹87 Cr → ₹110 Cr
How Fast Is ISGEC Heavy Engineering Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +16% | +5% | Inflection Up |
| PAT (Net Profit) | +265% | +32% | Stable |
| OPM | 11.0% | +200 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Other Top Infra - Engineering - General Stocks Beating Nifty 500
Frequently Asked Questions: ISGEC Heavy Engineering Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were ISGEC Heavy Engineering Ltd's latest quarterly results?
ISGEC Heavy Engineering Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +265.2% (stable)
- Revenue Growth YoY: +16.3%
- Operating Margin: 11.0% (expanding)
Is ISGEC Heavy Engineering Ltd's profit growing or declining?
ISGEC Heavy Engineering Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +265.2% (latest quarter)
- PAT Growth QoQ: +50.0% (sequential)
- 3-Year PAT CAGR: +31.9%
- Trend: Stable — consistent growth pattern
What is ISGEC Heavy Engineering Ltd's revenue growth trend?
ISGEC Heavy Engineering Ltd's revenue growth trend is turning around (inflection up).
- Revenue Growth YoY: +16.3%
- Revenue Growth QoQ: +2.8% (sequential)
- 3-Year Revenue CAGR: +5.3%
How is ISGEC Heavy Engineering Ltd's operating margin trending?
ISGEC Heavy Engineering Ltd's operating margin is expanding.
- Current OPM: 11.0%
- OPM Change YoY: +2.0% basis points
- OPM Change QoQ: +2.0% basis points
What is ISGEC Heavy Engineering Ltd's 3-year profit and revenue CAGR?
ISGEC Heavy Engineering Ltd's long-term compounding rates
- 3-Year Profit CAGR: +31.9%
- 3-Year Revenue CAGR: +5.3%
Is ISGEC Heavy Engineering Ltd's growth accelerating or decelerating?
ISGEC Heavy Engineering Ltd's earnings growth is stable with improving on a sequential basis.
- YoY Acceleration: +141.7% bps
- Sequential Acceleration: +55.1% bps
What is ISGEC Heavy Engineering Ltd's trailing twelve month (TTM) performance?
ISGEC Heavy Engineering Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹297 Cr
- TTM PAT Growth: +15.1% YoY
- TTM Revenue: ₹7,000 Cr
- TTM Revenue Growth: -0.5% YoY
- TTM Operating Margin: 9.5%
Is ISGEC Heavy Engineering Ltd overvalued or undervalued?
ISGEC Heavy Engineering Ltd appears undervalued based on our fair value analysis.
- Valuation Signal: Undervalued
- Current PE: 24.1x
- Price-to-Book: 2.8x
What is ISGEC Heavy Engineering Ltd's current PE ratio?
ISGEC Heavy Engineering Ltd's current PE ratio is 24.1x.
- Current PE: 24.1x
- Market Cap: 7.9K Cr
- Dividend Yield: 0.47%
How does ISGEC Heavy Engineering Ltd's valuation compare to its history?
ISGEC Heavy Engineering Ltd's current PE is 24.1x.
- Current PE: 24.1x
- Valuation Assessment: Undervalued
What is ISGEC Heavy Engineering Ltd's price-to-book ratio?
ISGEC Heavy Engineering Ltd's price-to-book ratio is 2.8x.
- Price-to-Book (P/B): 2.8x
- Book Value per Share: ₹379
- Current Price: ₹1075
Is ISGEC Heavy Engineering Ltd a fundamentally strong company?
ISGEC Heavy Engineering Ltd is rated Strong with a fundamental score of 62.33/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +16.3% (10% weight)
- PAT Growth YoY: +265.2% (10% weight)
- PAT Growth QoQ: +50.0% (10% weight)
- Margins expanding (10% weight)
Is ISGEC Heavy Engineering Ltd debt free?
ISGEC Heavy Engineering Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹861 Cr
What is ISGEC Heavy Engineering Ltd's return on equity (ROE) and ROCE?
ISGEC Heavy Engineering Ltd's return ratios over recent years
- FY2023: ROCE 11.0%
- FY2024: ROCE 13.0%
- FY2025: ROCE 15.0%
Is ISGEC Heavy Engineering Ltd's cash flow positive?
ISGEC Heavy Engineering Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹116 Cr
- Free Cash Flow (FCF): ₹-158 Cr
- CFO/PAT Ratio: 44% (weak cash conversion)
What is ISGEC Heavy Engineering Ltd's dividend yield?
ISGEC Heavy Engineering Ltd's current dividend yield is 0.47%.
- Dividend Yield: 0.47%
- Current Price: ₹1075
Who holds ISGEC Heavy Engineering Ltd shares — promoters, FII, DII?
ISGEC Heavy Engineering Ltd's shareholding pattern (Mar 2026)
- Promoters: 62.4%
- FII (Foreign): 3.9%
- DII (Domestic): 10.3%
- Public: 23.4%
Is promoter holding increasing or decreasing in ISGEC Heavy Engineering Ltd?
ISGEC Heavy Engineering Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 62.4% (Mar 2026)
- Previous Quarter: 62.4% (Dec 2025)
- Change: 0.00% (stable)
How long has ISGEC Heavy Engineering Ltd been outperforming Nifty 500?
ISGEC Heavy Engineering Ltd has been outperforming Nifty 500 for 4 consecutive weeks, indicating building momentum.
Is ISGEC Heavy Engineering Ltd a new momentum entry or an established outperformer?
ISGEC Heavy Engineering Ltd is an established outperformer with 4 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for ISGEC Heavy Engineering Ltd?
ISGEC Heavy Engineering Ltd has 7 key growth catalysts identified from recent earnings analysis
- Order Book Or Contract Wins — The order book is well-diversified across sectors and customers, providing strong revenue visibility.
- Operating Leverage Inflection — Improved efficiency and capacity utilization are driving disproportionate profit growth.
- Geographical Expansion — Management is focusing on international markets to secure better margins and payment terms.
- Value Added Product Mix Shift — Moving from raw castings to machined forms to provide better quality and faster delivery.
What are the key risks in ISGEC Heavy Engineering Ltd?
ISGEC Heavy Engineering Ltd has 3 key risks worth monitoring
- [MEDIUM] Rising prices of steel, nickel, copper, and aluminium impact electricals and str — Unpredictability of input pricing makes long-duration projects risky.
- [LOW] Potential for liquidated damages if projects are delayed — Variations in execution efficiency or site readiness can lead to penalties.
- [LOW] Forex fluctuation loss on loans given to subsidiary companies — Currency volatility affects the valuation of inter-company debt.
What did ISGEC Heavy Engineering Ltd's management say in the latest earnings call?
In Q3 FY26, ISGEC Heavy Engineering Ltd's management highlighted
- "And for the full year, we do expect an increase in revenue and profits in the range of about 7% to 8%. [Previous Revenue Growth guidance]"
- "This investment will be completed around July 2027. When completed, this can yield an additional annual revenue of about INR375 crores. [Initiative: ..."
- "The proposed investment of INR87 crores has now been revised to INR110 crores. The first phase of this facility is expected to be completed by March 2..."
What is ISGEC Heavy Engineering Ltd's management guidance for growth?
ISGEC Heavy Engineering Ltd's management has provided the following forward guidance for FY26
- Revenue growth target: 7%
- OPM guidance: 8–9%
- Capex plan: ₹218 Cr for Enhancing capacity of the Machine Building Division for presses and industrial machinery.
- Management tone: bullish
- Milestone: [RAISED] Skids and Modules Capex: ₹87 Cr → ₹110 Cr
What sector-specific metrics matter most for ISGEC Heavy Engineering Ltd?
ISGEC Heavy Engineering Ltd's most important sub-sector-specific KPIs from the latest concall
- Consolidated Order Book: ₹8,709 Cr (YoY +18.7%) (QoQ -0.9%) — Strong order inflows in previous quarters offset by high execution in Q3.
- Consolidated Order Inflow (Q3): ₹1,733 Cr (YoY +14.8%) (QoQ +18.6%) — Driven by broad-based demand across sectors and strong export bookings.
- Export Share of Standalone Revenue: 27.7% (YoY +15.1%) — Strategic focus on international markets for better margins and payment terms.
- Expected Retention Money Release: ₹250 Cr — FGD projects reaching 99% completion, with milestones expected in the March quarter.
- Biofuel Plant Capacity Utilisation: 75% — Plant is operational and ramping up during the sugarcane crushing season.
- Target Manufacturing Revenue: ₹3,700 Cr — Expected peak potential after completion of ongoing capex projects.
Is ISGEC Heavy Engineering Ltd worth studying for long term investment?
Based on quantitative research signals, here is why ISGEC Heavy Engineering Ltd may be worth studying
- Earnings growing at +265.2% YoY
- Operating margins are expanding — OPM at 11.0%
- Valuation: appears undervalued
- Cash flow is positive — CFO ₹116 Cr
What is the investment thesis for ISGEC Heavy Engineering Ltd?
ISGEC Heavy Engineering Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +16.3% YoY
- Margins expanding
- Appears undervalued
- Growth catalyst: Order Book Or Contract Wins
Risk Factors (Bear Case)
- Key risk: Rising prices of steel, nickel, copper, and aluminium impact electricals and str
What is the future outlook for ISGEC Heavy Engineering Ltd?
ISGEC Heavy Engineering Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: turning around (inflection up)
- Margin Trend: expanding
- Valuation: Undervalued
- Key Catalyst: Order Book Or Contract Wins
- Key Risk: Rising prices of steel, nickel, copper, and aluminium impact electricals and str
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.