Abha Power and Steel Limited H1 FY26 Concall Decoded: Flat revenues, capex hangover, and railways ka intezaar
1. Opening Hook
While the market was hoping for a post-IPO fireworks show, Abha Power and Steel showed up with a sober status update and a polite “thoda ruk jaiye.” H1 FY26 wasn’t about explosive growth—it was about waiting. Waiting for machines, waiting for RDSO approvals, waiting for steel capacity to wake up.
Revenue stayed steady, margins took a hit, and management spent more time explaining why things didn’t move than celebrating what did. The good news? Order book is intact, solar savings are real, and the steel plant still has massive unused headroom.
The bad news? Most of the upside is conveniently parked in FY27. If you like stories where patience is repeatedly tested but promises stay alive—keep reading. The real punchline lies in capacity utilization math.
2. At a Glance
Revenue ₹34.6 cr (H1) – Stable, but refused to grow.
EBITDA margin 10.3% – Consultants, travel, and “one-time” guests ate the buffet.
PAT ₹2.03 cr – Profits survived, barely smiled.
Order book ~₹20 cr – Still standing strong, unlike optimism.
Steel capacity utilization ~20–30% – Sleeping giant, heavy snoring included.
3. Management’s Key Commentary
“Our business has been pretty much stable.” (Translation: Nothing broke, nothing flew 😏)
“The 3 MW captive solar plant cushioned cost inflation.” (Sunlight doing more work than steel.)
“Expansion funded via IPO proceeds is progressing well.” (Capex done, returns pending.)
“RDSO approvals expected post March 2026.” (Railways operate on their own calendar ⏳)
“Steel plant utilization is currently 20–30%.” (Plenty of room, zero urgency.)
“Next year will show the real impact.” (Classic SME sequel line.)
