GLOBAL ECONOMY
The global economy delivered resilient growth in 2025, withstanding a complex environment of trade policy shifts, geopolitical uncertainty and elevated sovereign debt levels across major economies. According to the International Monetary Funds April 2026 World Economic Outlook, global GDP grew at an estimated 3.4% in 2025. Early 2026 introduced fresh headwinds, including a period of geopolitical disruption in the Middle East that temporarily affected energy markets and maritime trade routes, which the IMFs April projections reflect. As of July 2026, conditions have slightly improved: energy prices have retraced, major shipping lanes reopened, however, the geopolitical situation continues to be unpredictable. India, through this period, maintained its position as the fastest-growing major economy globally.
Global GDP and Inflation
| Indicator | Calendar Year 2025 (Estimate) | Calendar Year 2026 (Projection) | Calendar Year 2027 (Projection) |
| World Output Growth (%) | 3.4% | 3.1% | 3.2% |
| Advanced Economies Growth (%) | 1.9% | 1.8% | 1.7% |
| United States Growth (%) | 2.1% | 2.3% | 2.1% |
| Emerging Market & Developing Economies (%) | 4.4% | 3.9% | 4.2% |
| Global Headline Inflation (%) | 4.1% | 4.4% | 3.7% |
| Crude Oil - Brent (US$/barrel) | $67.74 (actual) | $85 (actual as at July 2026) | $75.97 |
Source: International Monetary Funds World Economic Outlook - April 2026. imf.org/publications/weo
Key Global Risks and Opportunities
| Factor | Assessment |
| Geopolitical and Energy Market Volatility | Geopolitical Disruptions In Early 2026 Temporarily Elevated Energy Prices And Global Freight Costs. By Mid-2026, Conditions Have Improved. Crude Oil Prices Are Approximately Usd 85 Per Barrel As At July 2026, Closer To 2025 Levels. Residual Uncertainty From Ongoing Diplomatic Processes Warrants Continued Monitoring But Is Not Expected To Materially Alter The Global Growth Trajectory. |
| US Trade Policy and Tariff Regime | Partially resolved. A US-India interim trade arrangement limits damage to Indian exporters. Ongoing evolution of tariff architecture across major trading relationships creates some uncertainty for global supply chains but also reinforces the China+1 sourcing diversification opportunity for Indian manufacturers. |
| China+1 Supply Chain Diversification | Western OEMs, EPC firms and end-customers continue to actively diversify supply chains away from Chinese suppliers. This structural trend is creating significant qualification and order opportunities for Indian capital goods manufacturers across process equipment, castings, containers and boiler components. |
| Global Defence Spending | Defence budgets are rising across North Atlantic Treaty Organisation) (NATO) and Indo-Pacific economies, driven by structural shifts in the security environment. According to the IMFs April 2026 World Economic Outlook (WEO), large defence spending booms, where outlays increase by approximately 2.7 percentage points of GDP over two-and-a-half years have become more frequent globally. This creates an expanded addressable market for defence-capable manufacturing. |
| Energy Transition Investment | Global energy investment is estimated at over US$3 trillion in 2024 and projected to reach US$3.3 trillion in 2025, according to the IEAs World Energy Investment report. Investment spans conventional and clean energy across power, refinery, chemicals and industrial sectors, core markets for Isgecs manufacturing and project businesses. |
| AI and Productivity | AI-driven productivity gains present a structural opportunity for manufacturing and engineering sectors. The pace and breadth of adoption will determine the degree to which productivity improvements accrue to capital goods manufacturers and their customers over the medium term. |
| Elevated Sovereign Debt | Global sovereign debt levels remain elevated, constraining fiscal space in several key economies and limiting the scale of government-led infrastructure and industrial investment programs. |
Source: IMF World Economic Outlook - April 2026; IEA - World Energy Investment 2025. imf.org; iea.org Global Outlook
The global economic outlook for 2026-2027 is constructive, with global growth projected to recover modestly to 3.2% in 2027 as energy supply normalises and trade conditions stabilise. The structural tailwinds relevant to Isgec - the India growth story, the China+1 sourcing shift, rising global defence spending and the sustained energy transition investment cycle - remain firmly in place. Wars in East Europe and West Asia had a marginal effect on our business. The Company is well-positioned to capitalise on each of these trends through its diversified manufacturing, project and engineering capabilities and continues to be cautiously optimistic.
INDIAN ECONOMY
India maintained its position as the worlds fastest-growing major economy in 2025-26, delivering 7.6% real GDP growth, its strongest performance in three years, supported by robust private consumption, manufacturing sector expansion, sustained government infrastructure investment and easing monetary conditions. According to Ministry of Statistics and Program Implementation (MoSPIs) Second Advance Estimates under the revised base year 2022-23, Indias real GDP growth for 202526 is estimated at 7.6%, revised upward from the First Advance Estimate of 7.4%. India also cemented its position as the worlds fourth largest economy by nominal GDP surpassing Japan in 2025.
GDP Performance
| Indicator | Financial Year 2024-25 | Financial Year 2025-26 | Financial Year 2026-27 Projection |
| Real GDP Growth (%) | 7.1% | 7.6% | 6.9% (RBI) / 6.5% (IMF) |
| Nominal GDP Growth (%) | 9.7% | 8.6% | 10.0% (Budget estimate) |
Source: MoSPI — Second Advance Estimates Financial Year26, February 27, 2026. mospi.gov.in
Key Economic Indicators - Financial Year 2025-26
| Indicator | Value / Outcome | Isgec Relevance |
| Real GDP Growth Financial Year 2025-26 | 7.6% (new base year 2022-23) | Sustained demand for capital goods, power, infrastructure and industrial equipment across all Isgec divisions |
| Private Final Consumption Growth | 7.7% | Rising consumption drives automotive and consumer goods sectors directly driving press orders |
| Gross Fixed Capital Formation Growth | 7.1% | Investment cycle drives capital goods procurement; Gross Fixed Capital Formantion growth signals sustained capex by Isgecs industrial customers |
| Manufacturing Sector GVA Growth | 11.5% | Indias manufacturing expansion directly supports demand for Isgecs presses, process equipment, castings and boilers |
Source: MoSPI — Second Advance Estimates Financial Year26, February 27, 2026; RBI Monetary Policy Statement — April 8, 2026. mospi.gov. in; rbi.org.in
RBI Monetary Policy
The Reserve Bank of Indias Monetary Policy Committee (MPC), at its 60th meeting held 6th to 8th April, 2026, voted unanimously to hold the policy repo rate unchanged at 5.25%, retaining a neutral stance. Cumulative rate reductions of 125 basis points during Financial Year 2025-26 have materially reduced financing costs for Isgecs industrial customers across capital goods, energy and infrastructure sectors. CPI inflation stood at 3.48% in April 2026 under the new series. The RBI has projected Financial Year 2026-27 CPI inflation at 4.6%, reflecting some pass-through from global energy market developments; this projection is subject to review as energy prices continue to normalise.
| Indicator | Value / Outcome | Isgec Relevance |
| RBI Policy Repo Rate (April 8, 2026) | 5.25% held unchanged (cumulative 125 bps reduction in Financial Year 2025-26) | Rate stability; cumulative cuts reduce financing costs for industrial customers |
| CPI Inflation (April 2026) | 3.48% (new base year series) | Manageable; limits further pressure on input costs and customer spending |
| RBI Financial Year 2026-27 CPI Inflation Projection | 4.6% | Upside risk; input cost monitoring warranted; projection may moderate as global energy prices ease |
Source: Monetary Policy Statement, 2026-27 — Resolution of the MPC, April 6to 8, 2026. rbi.org.in
Union Budget 2026-27
The Union Budget 2026-27 reinforces Indias commitment to investment-led growth, with a significant increase in capital expenditure and a sharply higher allocation to defense, both of direct relevance to Isgecs business development priorities.
| Budget Parameter | Financial Year 2025-26 | Financial Year 2026-27 (Budget) | Isgec Relevance |
| Capital Expenditure | 11.0 Lakh Crore | 12.2 Lakh Crore (+10.9%) | Direct stimulus to power, port, railway and energy capex, Isgecs primary demand driver across multiple divisions |
| Total Defence Allocation | 6.81 Lakh Crore | 7.85 Lakh Crore (+15.2%) | Expands addressable market for defence manufacturing; directly relevant to Isgecs emerging defence sector qualifications |
| Defence Capital Expenditure | 1.80 Lakh Crore | 2.19 Lakh Crore (+21.8%) | Capital acquisition drives equipment procurement aligned with Isgecs defence and space qualification activities |
| DRDO Budget | 26,817 Crore | 29,100 Crore (+8.5%) | R&D spending drives indigenisation programs and import-substitution opportunities for domestic manufacturers |
Source: Union Budget 2026-27 — Ministry of Finance; PIB — Defence in Union Budget 2026-27. indiabudget.gov.in; pib.gov.in
National Green Hydrogen Mission
The National Green Hydrogen Mission, with a government outlay of 19,744 Crore, targets 5 Million Metric Tonnes of green hydrogen production capacity by 2030. This Mission is generating a direct and growing demand pipeline for process plant equipment, pressure vessels, heat exchangers, reactors and piping for green ammonia, green hydrogen and related clean energy infrastructure across Isgecs Process Equipment and Boiler divisions. Indias emphasis on energy self-sufficiency and domestic clean energy production reinforces the long-term relevance of this mission for the Companys forward order book. Source: Ministry of New and Renewable Energy — National Green Hydrogen Mission. mnre.gov.in Viksit Bharat 2047
Indias overarching Viksit Bharat vision targets a GDP of US$30-40 trillion by the centenary of independence, requiring manufacturings share of GDP to expand from approximately 14% to 25%, sustained infrastructure investment over two decades and a significant deepening of Indias industrial and energy sectors. Achieving these ambitions necessitates a sustained expansion of domestic heavy engineering capability directly aligned with Isgecs manufacturing and project portfolio across presses, process equipment, boilers, bulk material handling, and sugar and ethanol infrastructure.
Source: PIB — Viksit Bharat 2047; Economic Survey 2025-26, Ministry of Finance. indiabudget.gov.in
Outlook for Financial Year 2026-27
Indias macroeconomic outlook for Financial Year 2026-27 remains broadly positive and well-supported by domestic fundamentals. Both the RBI (6.9%) and IMF (6.5%) project India as the fastest-growing major economy globally in Financial Year 2026-27. Government capital expenditure of 12.2 Lakh Crore provides direct demand stimulus across the infrastructure, power and industrial sectors that are the primary drivers of Isgecs order inflows. Monetary policy remains supportive following cumulative rate reductions in Financial Year 2025-26. The structural tailwinds from Production Linked Incentice schemes, Make in India and the Viksit Bharat vision are fully intact.
IInflationary pressures projected at 4.6% CPI for Financial Year 2026-27 by the RBI and residual global uncertainty will require monitoring, but neither is expected to materially constrain the capital goods demand environment. The overall backdrop for Isgec entering Financial Year 2026-27 is one of sustained domestic demand, favourable policy, and a progressively strengthening export market position. With revenue from exports representing roughly 22% of total revenue, which is more than double the previous financial year.
Source: RBI Monetary Policy Statement — April 8, 2026; IMF World Economic Outlook — April 2026; Union Budget 2026-27, Ministry of Finance
INDUSTRY STRUCTURE AND DEVELOPMENT
The Heavy Engineering Industry forms the backbone of Indias industrial and infrastructure development, supplying critical capital goods, process equipment and turnkey solutions to virtually every core sector of the economy. Strong growth momentum is expected across nearly all end-markets served by the Company over the next five to seven years, driven by sustained government capital expenditure, the Make in India initiative, import substitution imperatives, and the China+1 diversification strategy of global companies seeking to reduce supply chain concentration risks.
Isgecs multi-product, multi-sector portfolio spanning presses, process plant equipment, liquefied gas containers, boiler pressure parts and piping, iron and steel castings, sugar and distillery plants, emission control systems and material handling equipment provides a natural hedge against cyclicity in any individual sector and positions the Company to participate across the breadth of Indias industrial expansion.
Thermal Power
Indias energy security strategy continues to accord significant importance to thermal power as the reliable baseload foundation for a grid that is rapidly absorbing intermittent renewable capacity. The Central Electricity Authoritys generation planning studies estimate that India will require 283 Giga Watts (GW) of total coal and lignite-based installed capacity to meet base-load demand by 2031-32, against an installed base of approximately 217 GW in 2025. To bridge this gap, the Government of India proposes to add a minimum of 80 GW of new coal-based capacity by 2031-32, with a strong emphasis on supercritical and ultra-supercritical technologies for higher thermal efficiency and lower emissions. Capital expenditure to achieve this target is estimated at a minimum of 6,67,200 Crore, based on a unit cost of 8.34 Crore per Mega Watts (MW) at 2021-22 price levels. As of August 2025, approximately 35 GW of new coal plants were under active construction across 25 projects, with further blocks, Lara-II, Talcher-III, Sipat-III, Singrauli-III, Nabinagar-II, and Talabira stretching into 2027-30. During 2025-26, India added 52,537 MW of generation capacity, the highest-ever capacity addition in a single year with total installed capacity crossing 520 GW.
The thermal power build-out is, by volume, the single largest addressable opportunity for Indian heavy engineering manufacturers supplying boiler pressure parts, turbine castings, emission control systems, and material handling solutions. Source: CEA — National Electricity Plan 2022-32, PIB — Record Power Capacity Addition in FY 2025-26
India crossed a landmark milestone during 2025-26, with non-fossil fuel sources exceeding 50% of total installed power generation capacity achieving its Paris Agreement commitment five years ahead of the 2030 target. As on March 31, 2026, total installed non-fossil fuel capacity stood at 283.46 GW, comprising Solar: 150.26 GW; Wind: 56.09 GW; Large Hydro: 51.41 GW; Bio-energy: 11.75 GW; Small Hydro: 5.17 GW; and Nuclear: 8.78 GW. India added 55.3 GW of non-fossil fuel capacity in 2025-26 alone, the highest annual addition ever recorded and now ranks third globally in renewable energy installed capacity per IRENA Renewable Energy Statistics 2026.
The structural shift towards renewable energy is simultaneously creating new demand for biomass boilers, waste-to-energy systems, waste heat recovery equipment and the full suite of process plant equipment required for green ammonia, green hydrogen and Compressed Biogas production infrastructure.
Source: PIB — Non-Fossil Fuel Capacity as on March 31, 2026. pib.gov. in/PressReleasePage.aspx?PRID=2250039, https://www.pib.gov.in/
PressReleaseIframePage.aspx?PRID=2017271®=3&lang=2
Nuclear Power
Indias nuclear power program is at an inflection point. With 8 reactors currently under construction and 10 more in preproject stages, with installed capacity projected to reach 22.38 GW by 2031-32 and a long-term target of 100 GW by 2047 under the Nuclear Energy Mission, the sector is set to become a meaningful demand driver for Indias heavy engineering industry. The Union Budget 2026-27 announced a framework enabling private sector participation in nuclear power through Bharat Small Reactors (BSRs) and Bharat Small Modular Reactors (BSMRs), unlocking a new market for nuclear-grade precision engineering and complex fabricated components. Isgec is strategically positioned to capture this demand through its precision Contract Manufacturing capabilities—delivering complex sub-assemblies such as Calandria Vault Top Hatches and Beam & Deck Plate Assemblies—as well as its nuclear-grade Process Equipment capabilities, encompassing critical Pressure Vessels and heavy-duty Shell & Tube Heat Exchangers.
The global strategic imperative for energy diversification and security has reinforced nuclear powers importance in national energy mixes, with the International Energy Agency (IEA) noting growing interest in nuclear, including small modular reactors, as a reliable low-carbon baseload source, consistent with historical precedent following periods of energy price volatility. Source: Department of Atomic Energy, PIB. pib.gov.in/PressReleasePage.aspx?PRID=2238911
Indias hydro power capacity is targeted to increase to 67 GW by 2031-32, representing approximately 50% growth from current levels. Additionally, 55 GW of Pumped Storage Projects is planned to be added by 2031-32, providing critical grid-balancing infrastructure for the renewable-heavy power system. The hydro and pumped storage buildout creates sustained demand for various turbine casings, pump casings, butterfly valve castings, and specialised structural castings. This multi-pronged build-out drives long-term demand for specialized hydro turbines, heavy valves, and complex structural components. Isgec addresses these requirements through its precision engineering capabilities supplying key Contract Manufacturing Solutions such as rotors, valves and various Steel and Iron Castings for the sector.
The Union Cabinet has approved the Small Hydro Power Development Scheme for Financial Year 2026-27 to Financial Year 2030-31, with an outlay of 2,584.60 Crore for installation of approximately 1,500 MW of small hydro projects (between 1-25 MW capacity), particularly benefiting hilly and North-Eastern states with high untapped potential.
Source: PIB — MNRE Annual Achievement Report FY 2025-26, April 8, 2026. pib.gov.in/PressReleasePage.aspx?PRID=2250039, CEA — National Electricity Plan 2022-32, https://energy.economictimes.indiatimes.com/news/renewable/indias-hydropower-capacity-to- increase-from-current-42gw-to-67gw-by-2031-32/109079615
India is the fourth-largest oil refiner globally. An active refinery expansion cycle is underway, with the commissioning of the Barmer Refinery (180,000 BBL/d), the expansion of the Gujarat Refinery from 274,000 to 360,000 Barrels per day (BBL/d) (targeted by mid-2026) and the tripling of Numaligarh Refinery capacity from 3 MMTPA to 9 MMTPA (targeted by December 2026), among others. Indias total refining capacity is projected to reach approximately 309.5 MMTPA by 2028. Each refinery expansion and new plant commission generates sustained demand for process plants and process plant equipment such as, heat exchangers, pressure vessels, reactors, columns and piping across Isgecs manufacturing divisions.
Source: Reuters — Indian Oil Gujarat Refinery Expansion, industrialinfo.com — Indias Refining Sector Expands Amid Rising Demand, Economic Times — PM Modi in Assam, Numaligarh Refinery
Automobile
The Indian automobile industry recorded its highest-ever annual sales in 2025-26, with total domestic vehicle sales of 28.27 Million units (+10.4% year-on-year) and total production reaching 34.71 Million units (+11.8%). Passenger vehicles reached 4.64 Million units (+7.9%), commercial vehicles 1.08 Million units (+12.6%) and two-wheelers 21.71 Million units (+10.7%). Exports across passenger vehicle segments reached 9.05 Lakh, a new record. All major vehicle segments reported doubledigit growth simultaneously during 2025-26the first time in seven years that every category recorded its best-ever sales together.
Electric vehicle adoption continued to accelerate, with EV registrations crossing 2 Million in 2025, as OEMs increasingly invest in EV-specific production lines requiring new press technologies including large-tonnage servo presses, hot-forming presshardening lines and automated transfer lines. The Company is strategically aligned with this technological transformation, delivering high-precision Mechanical Presses, Hydraulic Presses, and heavy-duty Iron Castings as well as specialized Tool & Die Castings designed for high-volume automotive stamping and structural components.Our Machine Tool business, which relies significantly on the automotive sector, has experienced a strong revival following years of sluggish growth, a momentum we expect to sustain.
Source: SIAM — Auto Industry Performance Q4 FY 2025-26, https://www.ptinews.com/detail/business/Automobile-wholesales-in-India- clock-record-2-83-crore-units-in-FY26-SIAM/3563415, https://evreporter.com/india-sold-2550865-electric-vehicles-across-categories- in-fy-2025-26/
India retained its position as the worlds second-largest steel producer in 2025-26, with crude steel production of 168.4 MT (+10.7% year-on-year) and finished steel consumption of 164 MT (+7-8%). Installed steel capacity stands at approximately 220 MTPA, with the National Steel Policy targeting 300 MTPA by 2030. The country regained its status as a net steel exporter in 2025-26, with exports of 6.6 MT (+35.9%) and imports declining sharply by 31.7%, strengthening its footprint across the Middle East, Europe, and Southeast Asia. Per capita steel consumption moved closer to 100 kg during 2025-26, a milestone that underscores the sectors structural growth.
The ongoing expansion of steel capacity and the adoption of energy-efficient production technologies continue to generate strong demand for Isgecs iron and steel castings; boilers & emission control systems; as well as contract manufacturing capabilities. Temporary commodity price pressures, including fluctuations in alloy, gas and raw material costs in the second half of Financial Year 2025-26, are expected to ease as global supply chains normalise. Isgec is well-positioned to serve primary steel producers through its high-reliability Contract Manufacturing equipment, Industrial Boilers, Waste Heat Recovery Boilers (WHRB), advanced Emission Control Solutions, and specialised Iron and Steel Castings.
Source: Ministry of Steel — Annual Report 2024-25, PIB. pib.gov.in/PressReleasePage.aspx?PRID=2250022
The fertiliser sector operates in a complex global market with significant policy, logistics and energy linkages. Domestic urea production reached 275.75 Lakh Tonnes during April-February 2025-26, against an installed capacity of 269.42 Lakh Tonnes per annum across 33 manufacturing units. The government has long-term supply agreements in place with Saudi Arabia (31 Lakh Tonnes annually), Russia (30.10 Lakh Tonnes) and Morocco (25 Lakh Tonnes), alongside a sustained commitment to domestic production self-reliance that is expected to drive new fertiliser plant investment over the medium term. The PLI Scheme for fertilisers and the expansion of domestic capacity through coal-gasification and Liquified Natural Gas (LNG) based feedstock diversification represent sustained capital investment opportunities for Isgecs process plant equipment business.
Global fertiliser market dynamics, including urea price movements, LNG feedstock availability and government subsidy frameworks, create variability in the timing of new plant investment decisions. The governments continued support for the fertiliser subsidy programme and domestic capacity expansion is expected to sustain project award activity over the medium term. Isgec is uniquely positioned to capture these capital investment opportunities across the fertiliser value chain by supplying a comprehensive suite of high-reliability Process Equipment, including Ammonia Converters, Ammonia Converter Internals, Carbamate Condensers, High-Pressure (HP) Heat Exchangers, HP Urea Strippers, Methanators, Shift Reactors, Urea Hydrolyzers, and Waste Heat Boilers, alongside advanced Emission Control Solutions such as Bag Filters. Source: PIB - Urea Production and Fertiliser Sector. pib.gov.in/PressReleasePage.aspx?PRID=2246951, PIB. pib.gov.in/ PressReleasePage.aspx?PRID=2237491
The Indian cement industry is on a strong growth trajectory, underpinned by sustained demand from infrastructure development, government housing schemes, and urban construction activity. Indias total cement production for 202425 stood at 453 MT (+6.3% year-on-year), with total installed capacity estimated at approximately 690 MTPA. Demand is projected to grow 7-8% in 2025-26, supported by the governments continued capital expenditure push, the Pradhan Mantri Awas Yojana, and large-scale infrastructure projects. Indias top cement producers plan to invest approximately 1,20,000 Crore in capital expenditure between Financial Year 2025-26 and Financial Year 2027-28, nearly 50% higher than the prior three years, with a growing focus on Waste Heat Recovery systems, alternative fuels, renewable energy and Carbon Capture Utilisation technologies. Isgec is uniquely positioned to address this capital expansion and green transition through its comprehensive clean-tech and engineering portfolio, supplying high-efficiency Waste Heat Boilers, Power Plants (HRSGs), specialized Boilers, advanced Emission Control Solutions such as Bag Filters, and heavy-duty Steel Castings.
Source: cemnet.com — Indias Per Capita Cement Consumption, IBEF — Cement Sector India. ibef.org/industry/cement-india
All-India sugar production stood at approximately 280 Lakh Tonnes as of May 2026 approximately 7% higher than the corresponding period of the previous year, with Maharashtra at 99.2 Lakh Tonnes, Uttar Pradesh at 89.65 Lakh Tonnes, and Karnataka at 48.01 Lakh Tonnes. India achieved its E20 blending target during Ethanol Supply Year 2025-26, with ethanol supplies crossing 717.3 Crore Litres till June 2026. Total domestic distillation capacity has expanded to approximately 2,000 Crore Litres combining grain and sugarcane-based sources.
Policy focus has now shifted to the next phase: E30 blending by 2030, Sustainable Aviation Fuel exports (permitted by DGFT in 2025-26), flex-fuel vehicles and Compressed Biogas. The structural case for biofuels as a domestic, renewable energy source that enhances energy security and provides a commercially attractive end-market for agricultural feedstocks continues to strengthen. However, with E20 blending targets met and distillery capacity now in surplus relative to Oil Marketing Companies (OMC) allocations, new distillery investment is moderating, requiring the industry to pivot towards E30, Sustainable Aviation Fuel, Compressed Bio Gas and advanced biofuels to sustain growth. This structural evolution alters demand dynamics for Isgec, shifting customer investment from basic capacity addition to high-efficiency modernisations, multi-feedstock flexibility, and clean energy integration. Isgec is well poised to capitalise on this next phase of growth by supplying advanced Sugar Manufacturing Plants and energy-efficient Boilers, high-reliability Process Plant Equipment, and precision-engineered Iron and Steel Castings designed for high-stress bioenergy applications.
Source: ISMA — Sugar Production Data, Economic Times — Ethanol Supplies
Indias major ports handled a record 915.17 Million Tonnes of cargo in 2025-26, surpassing the annual target of 904 Million Tonnes , with 7.06% year-on-year growth. Deendayal Port Authority recorded 160.11 Million Tonnes , a new record, while Jawaharlal Nehru Port Authority crossed 102.01 Milion Tonnes for the first time. Sagarmala 2.0, supported by 85,482 Crore, aims to catalyse 3.6 Lakh Crore in total investment, with 315 projects worth 1.57 Lakh Crore already completed as of March 2026 . Isgec is strategically positioned to capitalize on this extensive port infrastructure build-out by supplying critical bulk material handling systems and heavy port equipment, including Stacker Reclaimers, Port and Cargo Container Cranes, and continuous Ship Loaders and Unloaders.
Source: PIB — Major Ports Throughput 2025-26. pib.gov.in/PressReleasePage.aspx?PRID=2251071
Indias defence budget for 2026-27 stands at 7.85 Lakh Crore (+15.19% over 2025-26), with capital expenditure of 2.19 Lakh Crore (+21.8%) and 1.39 Lakh Crore earmarked for domestic procurement, representing 75% of the capital acquisition budget. The Defence Research Development Organisation budget has been raised to 29,100.25 Crore. In 2025-26 alone, the Ministry of Defence signed contracts worth approximately 2.10 Lakh Crore and approved procurement proposals of over 3.50 Lakh Crore.
Globally, defence expenditure is on a structural upward trajectory. According to the IMFs April 2026 World Economic Outlook, a typical defence spending boom results in outlays increasing by approximately 2.7 percentage points of GDP over two-and-a-half years. For India specifically, the combination of rising domestic defence allocation and the governments indigenisation mandate, with 75% of capital expenditure directed to domestic procurement, creates a directly addressable opportunity for Isgec as it progresses its defence sector qualifications.
Source: PIB — Defence in Union Budget 2026-27. Pib.gov.in, IMF WEO April 2026
THREATS
Chinese Competitive Pressure
Chinese heavy engineering manufacturers, operating with large domestic capacities and economy-of-scale cost advantages, continue to offer aggressive pricing across process equipment, boiler pressure parts and containers in both domestic and international markets. Intensifying global trade tensions may redirect Chinese manufacturing output into third-party markets, amplifying competitive pressure in price-sensitive segments and geographies.
Domestic Chlor-Alkali Market Overcapacity
Structural overcapacity in Indias Chlor-Alkali sector has suppressed domestic container demand, with major customers deferring procurement. Recovery depends on rationalisation of industry capacity, the timeline for which remains uncertain. Export markets are compensating but introduce greater logistics cost exposure.
Commodity and Input Cost Volatility
Alloy steel, nickel, industrial gases and fabrication steel, key manufacturing inputs are subject to global price cycles, logistics constraints and supply concentration risks. While commodity prices have moderated from the elevated levels experienced in the second half of Financial Year 2025-26, ongoing global economic and geopolitical uncertainty may create periodic bouts of cost pressure that affect manufacturing margins, particularly across divisions with high alloy and specialty gas dependency.
Fertiliser Sector Investment Timing
New fertiliser plant investment decisions are sensitive to global feedstock (LNG and natural gas) availability and pricing, as well as government subsidy and capacity policy. Short-term volatility in input economics can delay project final investment decisions, affecting near-term domestic project award activity in this sector.
Policy and Regulatory Risk
The Ministry of Environment, Forest and Climate Change (MoEF&CC) notification of July 2025 restricted mandatory Flue Gas Desulphurisation (FGD) installation to only certain category of thermal power plants, materially reducing the addressable domestic FGD market. The emission control business is actively pivoting towards other Air Pollution control technologies like Dry Sorbent Injection, Semi-Dry Flue Gas Desulphurisation, Electrostatic Precipitators and Bag Filters as well as Water Treatment and Balance of Plant opportunities in response, though the full market development of these adjacencies will take time.
E20 Achievement - Moderation in Demand for New Distilleries
With India achieving its E20 blending target during 2025-26, new distillery investment is moderating as existing capacity is now in surplus relative to OMC ethanol allocations. The sugar and distillery manufacturing business must continue to pivot towards E30, SAF, CBG and advanced biofuel technologies, export markets and renewable energy opportunities to sustain its growth trajectory.
Skilled Manpower Availability
Constrained availability of skilled engineering and construction workforce poses an execution risk as the Company scales capacity across multiple divisions and enters new product lines and geographies. This is particularly relevant in the context of planned capacity expansions and new market entry initiatives across the manufacturing segment. Revised labour laws could further constrain skilled-workforce availability at project sites.
RISKS AND CONCERNS
Isgec maintains a Risk Management framework overseen by the Risk Management Committee of the Board. The Committees mandate covers strategic, financial, operational, compliance and cybersecurity risks. Key risks and the Companys mitigation approach are outlined below.
| Risk | Nature | Mitigation Approach |
| Foreign Exchange Risk | Financial | Foreign Exchange Risk Management Policy in place; all foreign exchange exposures, both export and import, are hedged with banks; Board oversight |
| Chinese Competitive Pressure | Strategic | Differentiation through quality certifications (ASME, PED, EN), delivery reliability, technology complexity and China+1 positioning with Western EPCs and end-customers |
| Input Cost Volatility | Operational | Procurement on receipt of orders for key bought outs; long-term vendor frameworks; alternative sourcing development; fuel conversion initiatives for our manufacturing facilities |
| Global Supply Chain and Logistics | External | Active monitoring of global commodity and logistics markets; diversification of raw material sourcing geographies; advance procurement for critical and long-lead materials on high-value orders; customer communication on project schedule impacts where relevant |
| Policy and Regulatory Risk | Compliance | Active business pivot in affected divisions towards adjacent growth markets; ongoing policy monitoring |
| Working Capital Risk | Financial | Advance payments and milestone billing in project contracts; working capital facilities managed centrally |
| Concentration Risk | Strategic | Geographic diversification; new customer acquisition across divisions; sector diversification into defence, nuclear, and green energy |
| Technology Obsolescence | Strategic | Global technology partnerships; continuous manufacturing process innovation; digitisation investments across plants and embedded into products such as Boilers and Presses |
| Skilled Manpower Shortage | Operational | Multi-channel talent acquisition; campus recruitment from premier engineering institutions; apprenticeship programmes, training programmes, Hi-Pot trainings; Women Leadership initiatives |
COMPANY OVERVIEW
Isgec Heavy Engineering Limited is one of Indias foremost diversified heavy engineering conglomerates. Incorporated in 1933 at Yamunanagar, Haryana, as Saraswati Sugar Syndicate Limited. Over more than nine decades, the Company has transformed itself into a full-spectrum engineering powerhouse with deep capabilities across the manufacture of capital goods, execution of large industrial projects, and sugar and ethanol production.
The Company is listed on the BSE and NSE and holds an AA (Stable) and A1 + credit rating from ICRA. The Companys products and solutions have been supplied across 99 countries spanning 6 continents.
| Key Statistics | Financial Year 2025-26 |
| Manufacturing Plants (India + Canada + Philippines) | 12 |
| Covered Production Area | 2,00,000+ square meter |
| Qualified Engineers | 1,200+ |
| Credit Rating (ICRA) | AA (Stable) and A1 + |
| Net Worth (March 31, 2026) | 2,88,767 Lakh |
Technology Partnerships and Collaborations Business Segments
| Segment | Key Products and Services | Locations |
| Manufacturing of Machinery and Equipment | Mechanical, Hydraulic and Servo Presses; Liquefied Gas Containers; Process Plant Equipment (Heat Exchangers, Reactors, Pressure Vessels, Columns); Boiler Pressure Parts and Piping Spools; Prefabricated! Skids and Modules; Contract Manufacturing (Built-to- Print and Built-to-Specification); Iron Castings; Steel Castings | Yamunanagar, Rattangarh, Muzaffarnagar, Bawal, Bhartoli, Dahej, Damla and Aurangabad Eagle Press & Equipment Co. Ltd. (Windsor, Canada) |
| Industrial Projects | Industrial and Green Energy Boilers, Sugar Plants and Distilleries, Emission Control Systems, Bulk Material Handling systems, Railway and Metro Projects, Wastewater Treatment, Process Plants | Project Business Offices at Noida (HQ), Chennai and Pune. Project sites in India & Globally |
| Sugar and Ethanol | Refined Sugar, Ethanol | Saraswati Sugar Mills Ltd., Yamunanagar, Haryana |
Isgec has established strategic technology partnerships with global engineering leaders to access advanced process technologies, enhance manufacturing capabilities and offer state-of-the-art solutions to clients across its business divisions:
| Partner | Country | Area of Collaboration |
| Sumitomo SHI FW Energia Oy | Finland | Circulating Fluidised Bed (CFB) Boilers up to 150 MWe and Reheat design for CFBC Boilers up to 100 MW |
| BHI FW Corporation | South Korea | Pulverised Coal Fired Sub-Critical and Super-Critical Boilers (60 MWe to 1,000 MWe) |
| Amec Foster Wheeler Energia S.L.U (Wood plc.) | Spain / UK | Oil and Gas Shop Assembled Water Tube Packaged Boilers; Feed Water Heaters and Surface Condensers |
| Fuel Tech Inc. | USA | Selective Non-Catalytic Reduction (SNCR) systems for NOx reduction |
| Babcock Power Environmental Inc. | USA | Wet Flue Gas Desulphurisation (FGD) systems for SO2 reduction |
| Envirotherm GmbH | Germany | Dry Flue Gas Desulphurisation systems |
| CB&I Technology Inc. (Lummus) | USA | Helix Heat Exchangers and Process Plant Equipment |
| Thermal Engineering International (TEi) | USA | Screw Plug Heat Exchangers and Process Waste Heat Boilers |
| NEM Energy B.V. | Netherlands | Heat Recovery Steam Generators (HRSGS) |
| AP&T | Sweden | Hot Forming Press Hardening Lines |
Associates, Subsidiaries and Joint Ventures
| Entity | Type | Business Activity |
| Saraswati Sugar Mills Limited | Wholly Owned Subsidiary | Sugar manufacturing and ethanol production, Yamunanagar, Haryana |
| Eagle Press & Equipment Co. Ltd. | Wholly Owned Subsidiary | Press manufacturing and sales, Windsor, Canada |
| Isgec Hitachi Zosen Limited | Subsidiary and Joint Venture | Process Plant Equipment, advanced manufacturing JV, Dahej |
| Isgec Titan Metal Fabricators Pvt. Ltd. | Subsidiary and Joint Venture | Pressure vessels and titanium fabrication |
| Isgec SFW Boilers Pvt. Ltd. (Subsequently renamed to SFW Isgec Energy Pvt. Ltd., consequent to reduction of the companys shareholding to 26% w.e.f June 25th 2026) | Subsidiary and Joint Venture (Now, Associate and Joint Venture) | CFB and industrial boiler technology and engineering |
| Isgec Redecam Enviro Solutions Pvt. Ltd. | Subsidiary and Joint Venture | Environmental engineering and emission control solutions |
| Isgec Covema Limited | Wholly Owned Subsidiary | Erection and Commissioning and Construction |
| Isgec Eswatini (Proprietary) Ltd., Eswatini | Wholly owned Subsidiary | Erection and Commissioning and Construction |
| Isgec Investments PTE Ltd. | Wholly Owned Subsidiary | Holding Company for Subsidiary companies (including Cavite Biofuels Producers Inc., Philippines) |
Other Subsidiaries - Isgec Engineering and Projects Limited, Isgec Exports Limited, Free Look Software Pvt. Ltd. These subsidiary companies do not have significant business.
Quality Accreditations
Isgecs manufacturing capabilities are backed by an extensive portfolio of internationally recognised quality certifications that are mandatory for qualification across global EPC, process licensor, and end-customer supply chains:
0 ISO 9001:2015 - Quality Management System
0 ISO 14001:2015 - Environmental Management System
0 ISO 45001:2018 - Occupational Health and Safety Management System
0 ASME S, U, U-2, U-3, R Stamps - Pressure Vessel and Boiler Manufacturing Codes
0 ASME T Stamp - Class 1 Transport Tank (enabling global supply of liquefied gas containers)
0 NABL Certification - National Accreditation Board for Testing and Calibration Laboratories
0 EN 1090-1:2009+A1:2011 - Execution of Steel and Aluminium Structures
0 Conformite Europeenne (CE Marking)
0 PED (Pressure Equipment Directive) compliance (enabling European market supply)
FINANCIAL PERFORMANCE
Financial Year 2025-26 Consolidated Financial Highlights
The following financial performance is based on consolidated full-year audited results for the financial year ended March 31, 2026.
| Metric | Financial Year 2025-26 | Financial Year 2024-25 | Change |
| Revenue from Operations | 6,78,926 Lakh | 6,42,501 Lakh | +5.7% |
| Total Income (incl. Other Income) | 6,92,228 Lakh | 6,46,436 Lakh | +7.1% |
| EBITDA | 67,134 Lakh (9.7% margin) | 56,612 Lakh (8.8% margin) | +18.6% |
| Profit After Tax (PAT) | 15,404 Lakh (2.2% margin) | 20,439 Lakh (3.2% margin) | -24.6% |
| Net Worth | 2,88,767 Lakh | 2,78,929 Lakh | +3.5% |
| Net Debt | 52,091 Lakh | 92,160 Lakh | -43.5% |
| Total Borrowings | 91,807 Lakh | 1,06,940 Lakh | -14.1% |
| Dividend per Share | 6.00 | 5.00 | +20% |
| ROCE | 11.4% | 12.1% | -70 bps |
| Return on Equity (ROE) | 5.3% | 7.3% | -200 bps |
Revenue from Operations grew 5.7% to 6,78,926 Lakh, with Total Income growing 7.1% to 6,92,228 Lakh. International revenue more than doubled as a proportion of total, rising from 14% (88,590 Lakh) in Financial Year 2024-25 to 23% (1,59,520 Lakh) in Financial Year 2025-26 reflecting a deliberate strategic shift toward export-led growth across multiple divisions. Net debt reduced by approximately 40,000 Lakh during the year to 52,091 Lakh, reflecting the Companys strong cash generation even while sustaining manufacturing capex programme, funded entirely from internal accruals.
Standalone Financial Performance
| Metric | Financial Year 2025-26 | Financial Year 2024-25 |
| Revenue from Operations | 5,22,863 Lakh (+4.2% YoY) | 5,01,826 Lakh |
| Profit Before Tax | 45,491 Lakh (+17.3% YoY) | 38,830 Lakh |
| Export Revenue (Standalone) | 1,16,909 Lakh - 22.4% of revenue | 53,190 Lakh —10.6% of revenue |
| Capital Expenditure | 15,300 Lakh | 12,400 Lakh |
Historical Financial Performance (Consolidated) - Five-Year Trend
| Metric | 2021-22 | 2022-23 | 2023-24 | 2024-25 | 2025-26 |
| Total Revenue ( Lakh) | 5,51,260 | 6,41,170 | 6,24,040 | 6,46,440 | 6,92,230 |
| EBITDA ( Lakh) | 32,460 | 46,730 | 54,810 | 56,610 | 67,130 |
| EBITDA Margin (%) | 5.9% | 7.3% | 8.8% | 8.8% | 9.7% |
| PAT ( Lakh) | 11,500 | 20,550 | 28,440 | 20,440 | 15,400 |
| PAT Margin (%) | 2.1% | 3.2% | 4.6% | 3.2% | 2.2% |
Segment-wise Revenue and EBIT(Consolidated) - Financial Year 2025-26
| Segment | Revenue 2025-26 | Revenue 2024-25 | EBIT Margin 2025-26 | EBIT Margin 2024-25 |
| Manufacturing of Machinery & Equipment | 2,76,460 Lakh | 2,50,030 Lakh | 13.8% | 11.7% |
| Industrial Projects | 3,70,210 Lakh | 3,48,740 Lakh | 4.7% | 4.6% |
| Sugar & Ethanol (India) | 88,360 Lakh | 88,400 Lakh | 4.5% | 8.8% |
The Manufacturing segment continued its consistent margin expansion, recording a 13.8% EBIT margin the highest among the three segments and the fourth consecutive year of improvement from 8.6% in Financial Year 2021-22. The Industrial Projects segment maintained stable margins; the Financial Year 2026-27 target is over 5% as older, lower-margin long-duration contracts roll off. The Sugar & Ethanol segment experienced a 430-basis-point margin compression, driven primarily by the shortfall in sugarcane crushing (92 Lakh quintals in Financial Year 2025-26 versus 140 Lakh quintals in Financial Year 202425) attributable to excessive rainfall and crop area reduction in Haryana.
Key Financial Ratios (Consolidated Financials)
| Ratio | 2025-26 | 2024-25 | Change(%) | Explanation (if >25%) |
| Current Ratio (x) | 1.41 | 1.47 | -4.08 | |
| Debt-Equity Ratio (x) | 0.24 | 0.11 | 118.18 | Mainly due to increase in long term borrowings. |
| Debt Service Coverage Ratio (x) | 4.84 | 16.36 | -71.12 | Mainly due to increase in long term borrowings |
| Return on Equity (%) | 13.46% | 12.85% | 4.77 | |
| Inventory Turnover Ratio (x) | 5.00 | 5.75 | -12.91 | |
| Trade Receivables Turnover | 2.00 | 1.85 | 7.96 | |
| Ratio (x) | ||||
| Net Profit Ratio (%) | 6.63% | 5.85% | 13.30 | |
| Return on Capital | 15.75% | 15.41% | 2.22 | |
| Employed (%) |
Capital Expenditure
The Company is investing to expand capacity for manufacturing across multiple product lines as detailed below:
| Division / Location | Description | Capex ( Lakh) | Incremental Revenue Potential ( Lakh/ year) | Status / Target Completion |
| Muzaffarnagar - Steel Castings | Machine shop for steel castings | 2,400.0 | 3,000.0 | Completed May 31, 2026 |
| Machine Building Division - Bhartoli Phase I | Press manufacturing capacity expansion | 7,300.0 | 22,500.0 | September 30,2026 |
| Machine Building Division - Bhartoli Phase II | Further press manufacturing expansion | 21,800.0 | 37,500.0 | Partly by June 30, 2027; balance by March 31,2028 |
| Process Module Division - Dahej | Phase I & II - skids and modules facility | 11,000.0 | 35,000.0 | September 2027 (Phase I); March 2028 (Phase II) |
| Foundry - Bhartoli (Iron Castings) | Machine shop for iron castings - transitions to machined supply | 2,200.0 | 2,000.0 | June 2027 |
| Muzaffarnagar - Steel Foundry | Steel foundry capacity expansion | 2,500.0 | 5,000.0 | December 2027 |
| Boiler Tubes and Panels - Division | New Preparation Shop & Coil Shop- Rattangarh works | 1600 | About 7,000 | Construction completed; Expected start of production by August 2026 |
| Piping Division | Capacity Expansion | 600 | About 5000 | Completed |
| Standard Mechanical Presses- Bawal | Expansion | 800 | About 5000 | Completed |
| TOTAL | 50,200.0 | 1,22,000.0 | Ongoing |
SEGMENT-WISE PERFORMANCE
Segment 1: Manufacturing of Machinery and Equipment
The manufacturing of machinery & equipment segment consists of manufacture of heavy and sophisticated capital goods to serve multiple customer industries including Automobiles, Cement, Chemicals, Defence, Fertilizers, Green Energy, Thermal Power, Mining, Nuclear Power, Oil & Gas, Distilleries, Refineries & Petrochemicals, Steel, Hydro Power and White Goods. We have large manufacturing facilities which cover production area spanning over 200,000 square meters and besides large open fabrication yards.
The product portfolio includes
A. Presses
a. Hydraulic Presses,
b. Mechanical Presses,
c. Press Brakes,
d. Servo Presses,
B. Process Plant Equipment
a. Reactors, Pressure Vessels, Shell and
b. Tube Heat Exchangers and
c. Distillation Columns, Boiler Pressure Parts, Skids & Modules,
C. Castings
a. Iron & Alloy Steel Castings, and
D. Built-to-Print equipment (Contract Manufacturing).
The segment experienced strong demand from economic growth in the country and investment in various sectors as well as demand from export markets, particularly for Presses and Alloy Steel Castings.
Our precision-engineered prefabricated pipe spools are fully compliant with IBR, ASME, and EN international standards. We cater to demanding applications in Refining, Petrochemicals, Oil & Gas, Fertilizers, Power, Steel, Mining, Paper & Pulp, Chemicals, Distilleries, and green sectors including Waste-to-Energy and Biomass.
The Company has been working to expand its product lines into more sophisticated and higher value-added equipment and machines.
In view of higher demand for our products, we are investing to expand our capacity for manufacturing Presses , at a new location at Bhartoli about 25 KM away from the existing Yamunanagar Plant.
Both our foundry units delivered a strong performance during the year, driven by consistent demand for high-quality alloy castings. Demonstrating our international competitiveness, the Muzaffarnagar foundry continued to serve key global markets, exporting 40% of its total output. To meet evolving client requirements, we are expanding our precision machining capacities, for Iron Foundry at Bhartoli, and additional facilities at our Steel Foundry at Muzaffarnagar. We are setting up a new shop for manufacturing Skids and Modules for various Process Industries at our plot in SEZ in Dahej.
In addition, a number of small capital investments in Plant & Machinery are being made for all other manufactured product lines to reduce bottlenecks and increase throughput and productivity.
We anticipate the manufacturing revenue to progressively grow significantly as these production capacities are commissioned. We have already started booking new orders from customers to load these production capacities immediately on their commissioning.
We continue our efforts to improve shop floor productivity, reduction in cycle time to improve productivity, improve throughput and remain cost competitive to better serve our customers.
During the year we booked good export orders, particularly for Press-lines for export customers in the South-East Asia and for steel castings.
We expect good demand for the skids & modules product line for supply of sophisticated, large-sized, heavy modules for many process industries.
We expect the demand for our products to be strong, and we are evaluating other investments to increase our capacities for other manufactured products.
Segment 2: Industrial Projects
The Industrial Projects Segment executes projects on turnkey basis and offers cutting edge solutions for:
A. Industrial and Green Energy Boilers:
1. Biomass-fired Boilers, such as Travelling, Vibratory, Reciprocating and Pin Hole Grates
2. Circulating Fluidized Bed Combustion (CFBC) Boilers.
3. Oil & Gas fired Boilers.
4. Waste to Energy Boilers
5. Heat Recovery Steam Generators (HRSGs).
6. Waste Heat Recovery Boilers
B. Sugar Plants, Ethanol Distilleries and Sugar Refineries
C. Air Pollution Control Equipment for various technologies including, Wet Flue Gas Desulphurization projects, Semi-Dry Flue Gas Desulphurization projects, Dry Sorbent Injection System for Thermal Power Plant Units, Tail Gas Desulphurization Projects for Nonferrous applications, De-Sox technologies (reducing Sulphur Di-oxide emissions) DeNox Technologies (reducing Nitrogen Oxide emissions), Particulate Matter Control Technologies.
D. Bulk Material Handling Solutions
E. Factories and Workshops for Railways
F. Process Plants
G. Operation & Maintenance Services
H. Spares and Retrofits
Over the last few years, we have increased our focus on undertaking orders which are technology intensive, where Isgecs technical expertise, product features, brand and past track record are valued by the customer.
Further, we are focusing on medium value orders, typically in the 5,000 -50,000 Lakh range and whose execution period is relatively shorter i.e. 1-3 years. We have increased focus on export orders particularly for Boilers, Power Plants, and Sugar plants & Distilleries from our target export markets. Many of our products offer IIOT-based applications for smart process automation, predictive maintenance, remote monitoring and data driven real time analytics and decision making.
The Boiler business achieved robust growth during the year, driven by expanding market share and strong capital expenditure across key process and green energy industries. Historically, demand in this segment was largely anchored in captive power generation to hedge against erratic grid supplies. Today, growth is powered by core industrial expansion, decarbonization mandates, and high demand for process steam.
With our proven technological leadership in fuel-flexible, high-efficiency, and environmentally compliant boilers, Isgec continues to consolidate its market position as the preferred partner for both industrial and utility applications.
Given the robust investment in the country as well as in our target export markets, we have good orders at hand and expect good business prospects in the next year as well.
Operations & Maintenance (O&M) - Our O&M services ensure that our clients achieve maximum equipment availability, energy efficiency, and safety through proactive maintenance, remote diagnostics, and energy audits, eliminating downtime and operational unpredictability.
Lifecycle Support Services - Our Lifecycle Support Services protect capital investments by integrating modern technology into legacy systems. Through genuine OEM spare parts, precise Remaining Life Assessment (RLA) testing, and tailored Repairs and Maintanance, we eliminate counterfeit risks and restore near-original plant efficiency.
Saraswati Sugar Mills
Sugarcane:
In the 2025-26 season, Saraswati Sugar Mills faced a major challenge with sugarcane. Yields were 24% lower, and the area was 10% lower, resulting in a Sugarcane crushing of only 92 Lakh quintals compared to 140 Lakh quintals in the previous season.
o Sugarcane yields were significantly affected
by excessive rainfall and flooding, which led to waterlogging and severe damage to the standing crop. Most factories in North India witnessed a dip in yield, averaging between 10-15%.
O Better returns from other crops, viz. poplar and from rice-maize-wheat rotations, compounded by declining sugarcane yields and rising cultivation costs over the past few seasons, have also driven farmers to shift to other crops.
O To stay competitive with alternative crops, the company is working to improve the ease of cultivation of sugarcane - increasingly constrained by labour scarcity - and the remuneration farmers earn through sugarcane.
(A) State Advised Price (SAP) for Sugarcane and Haryana Government Cane Subsidy:
O As in previous years, the Haryana Government continued the subsidy scheme for sugar mills to compensate for the difference between the SAP fixed by the State Government and the Fair and Remunerative price fixed by the Central Government. The subsidy is determined using a formula based on sugar prices and recovery levels. For the 2025-26 season, the State Government has approved a subsidy of 1,410 Lakh for our factory ( 1,746 Lakh last season).
| Particulars | SEASON 2024-25 | SEASON 2025-26 |
| Crushing (Lakh Quintals) | 140.4 | 92.6 |
| Pol in cane | 12.77% | 12.94% |
| Recovery | 9.63% * | 10% |
| (if we had run on b-heavy the whole season) | ||
| Sugar Production (Lakh Quintals) | 13.0 | 9.3 |
| Haryana State Advised Price for Sugarcane | 400 | 415 |
*Last season, we ran partly on sugar syrup as feedstock for distillery for a period of 29 days, and balance season on B-Heavy molasses as feedstock for distillery
Sugar Factory:
O The running of the sugar factory was satisfactory, with no major breakdowns, and efficiency parameters were at par with last year
O We continued producing high-quality refined sugar with premium colour and grain size
Distillery:
0 Our distillery produced less ethanol this season due to lower in-house molasses production - 28,000 Kilo Litres of ethanol this financial year (2025-26) versus 33,508 Kilo Litres last financial year (2024-25).
O The price of ethanol with B-heavy feedstock remained at 60.73. Prices were last revised by the Government in 2022-23, despite cane and other operational costs rising.
O The distillery was forced to take an extended shutdown before the end of the season, as the lifting schedule and lifting delays left our ethanol storage tanks full to capacity. The plant has resumed operations at the end of May.
Financial Performance:
Total Income: 79,197 Lakh, representing an increase of 6% compared to 74,923 Lakh in the preceding year.
Total Income Breakdown:
O Sugar Segment: 58,017 Lakh against 51,804 Lakh in the previous year.
O Ethanol Segment: 19,576 Lakh against 20,699 Lakh in the previous year
O Other Income: 1,603 Lakh against 2,421 Lakh in the previous year
Profit Before Tax: 2,573 Lakh as compared to 6,276 Lakh in the previous year, marking a decline of 59%.
Revenues in the sugar segment were higher than last year, as sugar sales volume was higher by about 1 Lakh quintals, and sugar price realisations improved by 146/- per quintal.
The distillerys revenue fell because the quantity of in-house-generated molasses declined, resulting in lower ethanol production. The decline in profitability is attributable and explainable by three major factors:
O The reduction in the availability of sugarcane resulted in lower volumes of sugar and ethanol production, coupled with an increase in sugarcane price to 415 per quintal (last year 400 pe quintal)
O The stagnation in ethanol prices for B heavy ethanol, which havent been revised since 2022-23, despite production and raw material costs escalating.
O Last year, there was a write-back of excess provision of 1,800 Lakh.
National Scenario for Sugar and Ethanol
(All figures are in Lakh Metric Tonnes)
| Particulars | Season 2022-23 | Season 23-24 | Season 2024-25 | Season 2025-26 (Estimated) |
| Opening Stock as on 1st October | 70.0 | 55.7 | 79.0* | 50.0 |
| Gross Sugar Production during season | 366.2 | 341.1 | 296.0 | 324.1 |
| Diversion of Ethanol | 38.0 | 21.5 | 35.0 | 31.2 |
| Net Production during the season | 328.2 | 319.6 | 261.2 | 292.9 |
| Total Availability | 398.2 | 375.3 | 340.2 | 342.9 |
| Internal Consumption | 278.5 | 290.0 | 281.0 | 283.0 |
| Exports | 64.0 | 0.5 | 9.0 | 7.0 |
| Total Offtake | 342.5 | 290.5 | 290.0 | 290.0 |
| Closing Stock | 55.7 | 84.8 | 50.2 | 52.9 |
Outlook for our Company for next year
Planting and sugar season 2026-27:
O Although lower yields in the current season 2025-26 have dimmed farmer sentiment towards cane, early indications - though survey figures are yet to come in - suggest that planting in our area is slightly higher than last year.
0 We also expect yields to be better than this season, and therefore, we expect higher availability of sugarcane for crushing.
B) ISGEC HITACHI ZOSEN LIMITED (Subsidiary & Joint Venture Company)
O It was a good year for the Company with increase in revenue and record profits.
O The total revenue for the year was Rs. 670.49 crores as against 613.93 crores in the preceding year.
O The Profit Before Tax was 103.24 crores as against 35.84 crores in the previous year.
O The year started with a good order backlog and there was good capacity utilization throughout the year. This combined with cost savings in material procurement along with improved margins in modification & repair orders led to good profits.
O The domestic market for the year was weak, however, we were able to book some good orders from a major
Oil Refining company. The export market was good, and substantial orders were booked during the year from overseas customers.
O The Company retained its strong position as a preferred fabricator of critical process equipment from global & EPC majors and also added more references to its list of clients during the year.
O The Opening orders in hand for FY 2026-27, though lower than last year, are good and except for some idle capacity in the first quarter of FY 2026-27, we expect full capacity utilization for the rest of the year.
O The Company has a strong bid pipeline and expects that the coming financial year FY 2026-27 to be good not only in terms of billing and profits but order booking as well.
(C) ISGEC TITAN METAL FABRICATORS PVT LTD (Subsidiary & Joint Venture Company)
O It was a good year for the Company.
O With the expansion in manufacturing capacity implemented during the year and good order booking, the revenue for FY 25-26 increased significantly to 100.65 crores compared to 35.24 crores in the preceding year.
0 The Profit Before Tax was also significantly higher at 12.60 crores as against a loss of 2.37 crores in the preceding year.
O The opening order book for FY 26-27 is about 145 crores giving strong revenue visibility for the next year for the Company
O Order booking during the current year has been good led by the Chemical segment and we expect the order booking for FY 26-27 also to be higher. We are evaluating plans for further capacity expansion so as to gear up for much higher revenues from FY 27-28 onwards.
O The availability of skilled manpower has been a challenge. The Company has been taking steps to hire and provide specialized training to workmen across different trades to support our planned growth.
(D) ISGEC SFW BOILERS PVT LTD (Subsidiary & Joint Venture Company)
O This company undertakes Design and Engineering works, mainly for the JV Partner Sumitomo SHI FW (SFW).
O The total revenue of the company, during the financial year 2025-26, was 1,833 Lakh as against 1,231 Lakh in the preceding financial year. Profit Before Tax was 468 Lakh as compared to 242 Lakh during the preceding financial year.
O Capacity utilization in financial year 2025-26 was approximately 89%, which is largely in line with the utilization levels of the previous financial year.
O The company took various measures to increase the manpower resource capacity and capabilities in various disciplines, including various new positions created, training given. The company also invested in improvement of office and It Infrastructure.
O During Financial Year 2026-27, pursuant to the execution of amended and restated Joint Venture Agreement, the name of the company has been changed to SFW Isgec Energy Private Limited with effect from June 30, 2026. Also, the shareholding of Isgec Heavy Engineering Limited decreased from 51% to 26% in this Joint Venture with effect from June 25, 2026. However, this company continues to be a Joint Venture and is now categorised as an associate company of Isgec Heavy Engineering Limited
ISGEC REDECAM ENVIRO SOLUTIONS PVT LTD (Subsidiary and Joint Venture Company)
O The revenue from operations, during the Financial Year under review, was 2,699 Lakh, as against 5,670 Lakh in the preceding year 2024-25. Profit before tax for the financial year under review was 286 Lakh as against 516 Lakh, during the preceding financial year 202425.
O During the Year the Company participated in major competitive bids at advanced stage of evaluation. However, opportunities could not be converted into confirmed orders due to competitive commercial considerations.
O During the financial year, the Company received a steady stream of enquiries from both existing and new customers which demonstrates strong industry confidence in the Companys capabilities, particularly in the steel sector, where increasing focus on environmental compliance, emission control norms, and capacity expansion continues to drive investments in air pollution control systems.
O Based on the current business outlook and market opportunities, the Company anticipates substantial growth momentum in Financial Year 2026-27, with the potential to achieve multi-fold business expansion. The Company also aspires to establish itself among the leading suppliers of air pollution control equipment in India over the next five years through continuous technological advancement, execution excellence, and strategic customer partnerships.
O During the current year, we expect to complete the two large orders under execution for customers from the steel sector.
Cavite Biofuels Producers Inc., Phillipines
O During the Financial Year, the Ethanol Plant started production on 17 December 2025 using sugarcane as the primary feedstock. The Plant is a multi-feedstock Plant, and a small amount of molasses was also being used to supplement sugarcane as feedstock.
O The sugarcane crushing season ended on 20 April 2026. Thereafter, the Plant is being operated only on molasses as feedstock.
O The plant capacity utilisation varied between 65 - 75%, this being the first full year sugarcane season for commercial operation.
O During the season, about 84,300 Metric Tonnes of sugarcane was crushed. The manufacturing operation is continuing using molasses as feedstock.
O The quality of ethanol produced is very good and the Plant received Ethanol Sale allocation from the Department of Energy of the Philippines for 6 million Liters for each quarter starting from April 2026 onwards.
O Our manufactured Ethanol is being sold to the top Oil companies in Philippines.
O We expect the Plant to run at a better capacity utilization in the next sugarcane season, which will start in end of November 2026.
O Consequent to an Agreement to Sell with a prospective buyer, the CBPI Philippines business was classified as "Assets Held for Sale" and the Profit/Loss was reported as "Discontinued Operations". In accordance with the accounting standards, depreciation on these Assets was not charged in the Consolidated Financials since they were expected to be sold.
o However, the sale did not go through as the buyer was unable to make the payments.
O During the quarter and the year ended March 2026, these assets and liabilities were reclassified as "Continuing Operations".
O Accordingly, depreciation for the period November 2024 to March 2026 was accounted for in the respective periods and the financial results were accordingly presented appropriately.
Eagle Press & Equipment Co. Limited.
O It was relatively a good year for Eagle Press & Equipment Co. Limited. Orders were booked from many customers in the Automative and other forming Industries both from within Canada as well for exports to USA and Mexico.
O The total income for the year was 1,47,93,31,309 compared to 1,04,99,72,035 in the previous year due to extremely low orders in hand for execution. The profit before tax for the year is 10,57,89,081 compared to profit in previous financial year 4,62,63,959.
O Despite slowdown in automotive sector in North America Order booking prospects for the current year look promising, and we are expecting to book some orders from non-automotive sector.
O Eagle has pivoted to a new market of manufacturing more Hydraulic presses to capture more non Automotive work.
O The United States of America is one of the main markets for Eagle Press. As of now the companys products are not impacted by the US Tariffs on Canada.
HUMAN RESOURCES
Employees remain the cornerstone of Isgecs long-term growth and operational excellence. The organisation fosters a performance-driven, collaborative, and future-ready culture through continuous learning, leadership development, and employee engagement initiatives across all business units and manufacturing locations.
Workforce
| Metric | 2025-26 | 2024-25 |
| Total Permanent Headcount (March 31) | 2,970 | 2,662 |
| Net Permanent Headcount Increase | 308 | 117 |
| Total Gross New Hires | 783 (119 campus + 664 lateral) | Not separately disclosed |
| Attrition Rate | 12.8% | 15.2% |
| Women as % of Permanent Employees | 3.4% | 2.5% |
| Women Hired in Financial Year 2025-26 | 50 (26 Engineering + 24 Non-Engineering) | - |
| Employees Covered under Skill Development | 2,439 | 2,340 |
| Average Training Hours per Employee | 21.97 | 21.5 hours |
Talent Acquisition
Isgec employs a multi-channel talent acquisition strategy: active recruitment from premier engineering institutions including IIT Delhi, IIT BHU, IIT Ropar, IIT Dhanbad, Vasanthali College, Government Mahila College Ajmer, and Indoswiss Chandigarh; a structured Employee Referral Program; multiplatform digital engagement; and strategic partnerships with specialized executive search firms for leadership roles. The Company achieved a 99% probation-to-confirmation rate in Financial Year 2025-26, reflecting effective onboarding and cultural alignment.
Talent Retention & Human Capital Development
Amid Indias strong economic growth, high industry demand has naturally driven increased talent mobility across sectors. Through proactive engagement, structured career development, and careful managerial oversight, we have successfully maintained workforce stability. A key pillar of our retention strategy is learning and development.
Learning and Development
During the Financial Year 2025-26, the Company conducted comprehensive technical, behavioral, leadership, and safety training programs across all manufacturing locations. Key initiatives included:
O Advanced Engineering Design Tools: ANSYS, AutoCAD
Plant 3D, Tekla Structures, Cadmatic Modelling, and Newton Software across manufacturing divisions
O ASME Boiler and Pressure Vessel Code (BPVC) and Material Standards Training: compliance training for PED, Boiler Tubes and Panels and other pressure- containing product divisions
O Women Leadership Programme (Aarohan - Shakti se Prabhav tak): covering work-life management, emotional intelligence, and leadership frameworks
o GTAW Automation, Orbital Welding, and Laser Welding Development: technical capability building at PED division
O Darwinbox HRMS implementation: enhancing workforce transparency and HR process efficiency across the organisation
0 Hi-Pot Programme: 50 high-potential leaders identified and enrolled in targeted development interventions
Industrial Relations
Industrial relations across all manufacturing locations remained stable and cordial during Financial Year 2025-26.
There was no disruption to operations arising from industrial disputes during the year.
SAFETY AND OCCUPATIONAL HEALTH
The safety of employees, contractors and all persons associated with the Companys operations and project execution is a non-negotiable commitment at Isgec. The Companys manufacturing locations maintain Occupational Health and Safety management systems certified to ISO 45001:2018, with surveillance audits conducted by LRQA during the year. The Projects Business, guided by Suraksha Sankalp - Zero Harm Compliance Safety Culture, is committed to delivering projects safely through strong leadership, proactive risk management and continual improvement, and maintains Occupational Health, Safety and Environmental (OHSE) Management Systems certified to ISO 45001:2018 and ISO 14001:2015, with surveillance audits conducted by LRQA during the year.
0 ISO 45001:2018 (Occupational Health and Safety Management System)
[> ISO 14001:2015 (Environmental Management System) -
t) ISO 45001:2018 & ISO 14001:2015 (Integrated OHSE Management System)
O Best Environment in Factory Premises (Large Scale Industry)- Haryana State Safety, Health & Welfare, Labour Department (Manufacturing)
(> Safety Excellence and Appreciation Awards - received by the Projects Business from Birla Carbon (Thailand), Indian Oil Corporation Limited, Numaligarh Refinery Limited, Indian Potash Limited, Engineers India Limited, Tuticorin Alkali Chemicals & Fertilizers Limited, Vedanta Limited and SMW Ispat Pvt. Ltd., for Health Safety and Environment performance, safe man-hour milestones and project safety management excellence
Digital and Technology-Enabled Safety Systems
Manufacturing (implemented in 2025-26):
O AI-enabled forklift monitoring with biometric access control, restricting operation to authorised personnel
O GSM-based overload protection system for Electric Overhead Train cranes, with real-time load monitoring and automatic interlocks
O QR code-based safety observation reporting, enabling real-time near-miss and hazard reporting from the shopfloor 0 Digital PPE selection guide, standardising protective equipment selection by task and risk level O Automated safety annunciation systems with interlocks in high-risk operational areas O Mobile LED safety awareness systems deployed across manufacturing shop floors
Projects Business (implemented in 2025-26):
0 Contractor Environment, Health, and Safety (EHS) Evaluation Framework, with standardised parameters to assess contractor safety performance and drive continual improvement
0 Standardised Project EHS Performance Scorecard, monitoring leading and lagging indicators across project sites
Projects Business (in progress):
O Digital EHS Dashboard and Reporting System - User Acceptance Testing planned, implementation targeted from September 2026
Safety Programs
Active safety programs maintained across Isgec during 2025-26 included: Behaviour-Based Safety (BBS); Hazard Identification and Risk Assessment (HIRA); Permit-to-Work System; Near-Miss and Safety Observation Reporting; National Safety Week;
National Electrical Safety Week; Road Safety Week; Fire Safety Training; World Environment Day; Emergency Preparedness and Mock Drills; Incident Learning through Safety Alerts; Project Leadership Safety Walks; Contractor EHS Evaluation Framework;
Workforce Competency Development; Safety Quiz and Poster Competitions; Safety Patrolling; and Internal IMS Audits and Corporate EHS Site Reviews. Findings from project EHS performance and contractor evaluations are reviewed periodically at Managing Director Review Meetings to strengthen governance and monitor trends.
CONSERVATION OF ENERGY AND SUSTAINABILITY INITIATIVES
1. Water Conservation
i) The Company remains committed to responsible water management, conservation, and minimizing environmental impact through efficient utilization and sustainable practices across its facilities. Despite the expansion of workshop manufacturing , water consumption has been sustained through wastewater recycling and the implementation of various water conservation measures.
ii) On average, 240 KLD of treated water from the Sewage Treatment Plant (STP) is recycled for flushing of urinals and toilets, floor cleaning, and gardening at the Yamunanagar plant. During the year, a total of 86,327 KL of wastewater was recycled.
2. Steps Taken for Utilizing Alternate Sources of Energy
i) The Company has installed rooftop solar power plants with a capacity of 2,050 kWp at the Yamunanagar unit and 1,000 kWp at the Rattangarh unit, strengthening the share of renewable energy in its overall power consumption.
During the year, these installations generated 33,92,160 units of green energy.
ii) The Company also procured 4,36,000 units of green power through the Indian Energy Exchange (IEX) during the year.
iii) Further, the Company has signed a Power Purchase Agreement (PPA) for a 7 MWp solar power project for the Muzaffarnagar plant, which is expected to generate approximately 9.8 Million units of renewable energy annually.
iv) Isgec Muzaffarnagar facility ly utilises more than 7.84 Million units of solar power, meeting over 44% of its total annual electricity reguirement.
i. Fuel of Boiler and most of heat treatment furnace converted from LSHS to PNG
The increased use of solar power supports clean energy generation, reduces power costs, and contributes towards lowering the Companys carbon footprint. ,
3. Steps Taken for Conservation of Energy
i) The Company continues to replace inefficient and high power-consuming eguipment with energy-efficient alternatives. During theyear, 25 lower-rated air conditioners were replaced with five-star inverter-type air conditioners, resulting in approximately 15-20% lower power consumption.
ii) Motion sensor-based lighting continues to be installed in common areas across the works to optimise electricity consumption.
Isgec Muzaffarnagar facility is taking the following steps for conservation of energy
i. Installation of capacitor banks (400 kVAR) to reduce reactive power and electricity bill
ii. Usage of PNG in casting preheating & riser cutting in place of LPG cylinders
4. Steps Taken for Environmental Protection
i) The Company continues to implement the 3R principles (Reduce, Reuse and Recycle) for waste management, thereby supporting resource conservation and energy efficiency. During the year, approximately 1,500 Metric Tonnes of iron scrap was recycled in-house. In addition, approximately 55 Metric Tonnes of old sheets and structures were recovered from scrap and reused to develop nearly 1,125 square metres of area for the main store and car parking, resulting in estimated savings of 2.5 Million.
ii) Green cover across the manufacturing facilities and residential colony has been further enhanced. During the year, over 400 hedge plants, 375 flowering plants in offices and shops, and 100 shade/green plants were added within the works, while more than 900 plants were added in the Yamunanagar colony. In addition, 325 square metres of new lawns were developed within the works.
5. Overall Energy Conservation Initiatives
The Companys divisions continued to undertake various energy conservation initiatives during the year, resulting in estimated energy savings of approximately 224.0 Thousand units. These measures are expected to continue delivering sustainable energy savings in the coming years.
Technology Absorption
The efforts made towards technology absorption:
(a) The Company has the following Technology Agreements:
1. Boiler:
O With Sumitomo SHI FW Energia Oy, Finland:
o For Circulating Fluidized Bed Combustion (CFBC) Boilers up to 150 MWe o For Reheat Design for CFBC Boilers up to 100 MW.
O With BHI FW Korea:
o For Pulverized Coal Fired Sub-Critical and Super-Critical Boilers (60 MWe to 1,000 MWe).
O With Amec Foster Wheeler Energia S.L.U., Spain:
o For Oil & Gas Shop-Assembled Water Tube Packaged Boilers up to 260 Tonnes per hour.
O With Siemens Heat Transfer Technology B.V., Netherlands:
o For design, fabrication and installation of Drum-type Heat Recovery Steam Generators.
2. Air Pollution Control Equipment:
O With Fuel Tech Inc., USA: For Selective Non-Catalytic Reduction (SNCR) systems for reduction of Nitrogen Oxides across power, cement and other industries.
O With Babcock Power Environmental Inc., USA: For Wet Flue Gas Desulphurisation systems for reduction of SO2 produced by steam generators with gas flow equivalent to 100 MWe.
O With Sumitomo SHI FW Energia Oy, Finland: For Circulating Fluidized Bed Scrubbers for power plants and industrial applications for reduction of SO2.
O With United Conveyor Corporation, USA: For Dry Sorbent Injection (DSI) technology for removal of SOx generated from thermal power plants.
O With BHI FW Corporation, USA: For Combustion Modification (TLN Retrofit) technology for reduction of NOx generated from tangentially fired Pulverized Coal (PC) Boilers.
3. Presses:
O With AP&T, Sweden: For Hot Stamping Presses.
4. Process Equipment:
O With TEi, USA: For Screw Plug Heat Exchangers and Process Waste Heat Boilers.
(> With CB&I Technology Inc. (formerly CB&I Lummus): For design and manufacture of Helix Heat Exchangers.
O With Amec Foster Wheeler Energia S.L.U., Spain (Wood plc.): For Feed Water Heaters and Surface Condensers.
5. Ash Handling Packages:
(> Strategic Collaboration and Licensing Agreement with United Conveyor Corporation, USA, for Ash Handling Systems. In case of imported technology (imported during the last three years beginning from the financial year):
E> Details of technology imported: Nil
(> Year of import: Nil
(> Whether technology has been fully absorbed: Nil
0 If not fully absorbed, areas where absorption has not taken place and the reasons thereof: Nil
INFORMATION TECHNOLOGY AND DIGITAL TRANSFORMATION
Technology remains a strategic enabler for driving operational excellence, product innovation, and enterprise resilience across The Companys diversified operations. During FY 2025-26, the Company accelerated its digital journey through targeted investments in Industry 4.0, Artificial Intelligence (AI), cloud architecture, enterprise applications, cybersecurity, and intelligent automation.
Reaffirming its long-term commitment to digital capability building, the Company has allocated 20 Crore towards IT Capital Expenditure for FY 2026-27.
(a) Building the Intelligent Enterprise
Isgec continues to modernise its engineering and manufacturing ecosystem by integrating Industry 4.0, advanced analytics, and enterprise-wide digital solutions:
O Smart Manufacturing & IIoT: Isgec REACH 4.0 (Remote Enabled Access and Cloud Hub), was operationalised at the Machine Building Division (MBD), leveraging IIoT for real-time asset monitoring, predictive maintenance, and data- driven decision-making. Extended IIoT monitoring across the Pressure Equipment Division (PED) and Isgec Titan Metal Fabricators, alongside deploying remote monitoring solutions for industrial boilers.
O AI & Predictive Analytics: Developed advanced predictive, descriptive, and prescriptive AI models, to optimize thermal efficiency and lifecycle economics for flagship boiler products.
O Business Development & Proposal Automation: AI and Generative AI solutions are developed to automate drafting of responses for Customer Request For proposals and Quotations, and tenders, accelerating turnaround times and improving proposal consistency.
0 Customer Relationship Management: Developing an integrated Sales and Service CRM platform with a leading global provider, supported by a dedicated mobile application for boiler service operations to enhance customer lifecycle engagement.
O Digital Workplace & Governance: Implemented an automated, trackable, workflow driven, Note for Approval (NFA) system for transparent, multi-level governance; deployed Darwinbox HRMS enterprise-wide; launched an in-house Learning Management System (LMS); and rolled out a mobile EHS application for real-time site safety reporting.
(b) Reinforcing Cybersecurity and Digital Trust
To support digital expansion and protect proprietary engineering knowledge, Isgec has significantly strengthened its cyber resilience, governance, and infrastructure footprint:
O Information Security Standards: Adoption of ISO 27001 (ISMS) framework (certification in progress). Conducted independent Vulnerability Assessment and Penetration Testing (VAPT) across the digital environment.
O Data & IP Protection: Deploying Data Loss Prevention (DLP) and Digital Rights Management (DRM) solutions to secure confidential engineering assets and enable encrypted, permission-based document sharing.
O Threat Mitigation & Endpoint Security: Implemented Enterprise Email Security Gateway (ESG) protection against phishing and ransomware, along with centralized Asset and Patch Management to harden endpoint security.
O Infrastructure & Business Continuity: Progressing the migration of core ERP and compute workloads to a Tier IV Data Centre, complemented by a dedicated Disaster Recovery (DR) environment on a private cloud for mission-critical services.
O Smart Corporate Workspace: Designing the new (under construction) corporate headquarters at Noida as an IT-enabled smart workplace to support seamless collaboration and future-ready operations. Also, extending governance standards to international units, including Eagle Press (Canada) and Cavite Biofuels Producers Inc. (Philippines).
Outlook
Digital transformation will remain a cornerstone of Isgecs growth strategy. By embedding AI, cloud, IIoT, and robust cybersecurity across engineering, manufacturing, and corporate functions, the Company continues to build an agile, data-driven enterprise positioned for long-term value creation.
INTERNAL FINANCIAL CONTROLS AND THEIR ADEQUACY
The Company has established a robust internal financial control framework commensurate with the scale and complexity of its operations. Controls are designed to ensure: operational efficiency; safeguarding of assets; accuracy and reliability of financial reporting; compliance with applicable laws and regulations; and effective risk management across all business segments and locations.
Control Environment
The control environment is supported by: well-defined policies, standard operating procedures, and authority matrices; a comprehensive delegation of authority framework; ongoing ERP and IT-enablement across manufacturing, finance, and operations; and active process automation initiatives. Enterprise systems provide real-time financial and operational visibility, enabling timely management decisionmaking and effective control.
Internal Audit
The Internal Audit function operates under a risk-based audit plan approved by the Audit Committee of the Board. The audit plan covers all significant business processes, manufacturing locations, subsidiaries, and joint ventures. Findings, recommendations, and the status of corrective actions are reported at regular intervals. Open items are tracked systematically until closure.
Cautionary Statement
This Management Discussion and Analysis contains forward-looking statements describing the Companys objectives, projections, estimates, expectations, and plans. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Important factors include domestic and global economic conditions, geopolitical developments (including the impact of ongoing conflicts in the Middle East and Eastern Europe), changes in government regulations, tax laws, environmental regulations, currency fluctuations, commodity price movements, and other incidental factors beyond the Companys control. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date on which they are made.
Particulars of Loans, Guarantees and Investment under Section 186 of Companies Act 2013
| Nature of the transaction (Loans given/Guarantee given/Security Provided/Investments made) | Purpose for which the loan/ guarantee/security is utilised by the recipient | As at March 31,2026 | As at March 31,2025 |
| 1 Guarantees Given to Banks for Subsidiary and Joint Venture Companies: | |||
| Isgec Hitachi Zosen Limited | Corporate Guarantees to Secure Working Capital Bank facility | - | 54,705.00 |
| Isgec Titan Metal Fabricators Private Limited | Corporate Guarantees to Secure Working Capital Bank facility | 9,200.00 | 9,200.00 |
| Isgec Redecam Enviro Solutions Private Limited | Corporate Guarantees to Secure Working Capital Bank facility | 2,000.00 | 2,000.00 |
| Total | 11,200.00 | 65,905.00 | |
| 2 Guarantees Given to Wholly Owned Subsidiary Companies: | |||
| Eagle Press & Equipment Co. Ltd, Canada | SBLC provided by HSBC India out of our Non Fund Based limits to Royal Bank of Canada to secure Working Capital Credit Facilities to Eagle Press & Equipment Co. Ltd., Canada | 4,089.00 | 2,386.70 |
| Total | 4,089.00 | 2,386.70 |
| 3 Investment | Face Value ( per Share / Unit) | No. of Shares/ Units | As at March 31,2026 | As at March 31,2025 |
| a) Equity Shares of Subsidiary Companies (At cost) : | ||||
| Isgec Covema Limited | 10 | 2000000 | 200.00 | 200.00 |
| Isgec Exports Limited | 10 | 100000 | 10.00 | 10.00 |
| Isgec Engineering & Projects Limited | 10 | 4000000 | 400.00 | 400.00 |
| Saraswati Sugar Mills Limited | 10 | 7099900 | 7,009.99 | 7,009.99 |
| Freelook Software Private Limited | 10 | 24650 | 1,306.45 | 1,306.45 |
| Eagle Press & Equipment Co. Ltd. Canada | CAD 1 | 4500000 | 2,643.05 | 2,643.05 |
| Isgec Investments PTE Ltd. Singapore | SGD 1 | 10000 | 5.20 | 5.20 |
| Isgec Hitachi Zosen Limited | 10 | 51000000 | 5,100.00 | 5,100.00 |
| SFW Isgec Energy Private Ltd. (Formerly known as Isgec SFW Boilers Private Ltd.) | 10 | 1020000 | 102.00 | 102.00 |
| Isgec Titan Fabricators Private Limited | 10 | 612000 | 306.00 | 306.00 |
| Isgec Redecam Enviro Solutions Private Limited | 10 | 1020000 | 102.00 | 102.00 |
| 3 Investment | Face Value ( per Share / Unit) | No. of Shares/ Units | As at March 31,2026 | As at March 31,2025 |
| b) Investment in equity instruments - unquoted (at fair value through profit or loss) | ||||
| Fourth Partner Solar Power Private Limited | 10 | 3,18,725 | 160.00 | 160.00 |
| FPEL HR1 Energy Private Limited | 10 | 7,09,873 | 224.32 | - |
| 17,569.01 | 17,344.69 |
| Nature of the transaction (Loans given/Guarantee given/Security Provided/Investments made) | Purpose for which the loan/ guarantee/security is utilised by the recipient | As at March 31, 2026 | As at March 31,2025 |
| 4 Loans to Subsidiaries : | Purpose of loan | ||
| Isgec Investments PTE Ltd. Singapore | To meet expenses and capital requirement of Subsidiary Company | 101,458.04 | 47,647.43 |
| Eagle Press & Equipment Co. Ltd. Canada | For Capital Expenditure and Working Capital Facility | 7,292.05 | 6,384.42 |
| Total | 108,750.09 | 54,031.85 | |
| Grand Total : | 141,608.10 | 139,668.24 |
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