1. At a Glance – The 1892 Survivor That Just Reported a Loss
Batliboi Ltd is 133 years old. That means this company was selling machines when your great-grandfather was probably still negotiating dowry.
Current price: ₹96.6
Market cap: ₹454 Cr
P/E: 38.9
Book value: ₹48
ROCE: 8.27%
ROE: 6.84%
Debt: ₹90.8 Cr
3-month return: -27.4%
And now the juicy part.
Q3 FY26 revenue came in at ₹124 Cr. EBITDA was ₹8 Cr. PAT? A loss of ₹2 Cr.
But here’s the plot twist: 9M revenue is ₹315 Cr and the order book stands at ₹831.92 Cr with a backlog of ₹586.18 Cr.
So… short-term pain, long-term pipeline?
Or just another “engineering sector story” that always promises but rarely delivers?
Let’s investigate.
2. Introduction – Engineering Company or Corporate Time Machine?
Batliboi isn’t a startup. It isn’t a midlife crisis company either. It’s a pre-independence industrial veteran.
Incorporated in 1892, it manufactures machine tools and textile engineering machines. Basically, if India makes something, Batliboi probably sells the machine that makes it.
But here’s the problem.
Engineering companies in India often suffer from:
- Low margins
- Working capital stress
- Lumpy order flows
- Constant “next year will be better” promises
Batliboi checks some of those boxes.
Sales have grown 28% CAGR over 3 years. Profit growth 68% CAGR over 3 years. Sounds sexy.
But ROE is still below 7%.
Why is capital sweating less than a government employee on a Monday?
And then there’s the Q3 FY26 loss.
Is this temporary turbulence or structural weakness?
Let’s break this down.
3. Business Model – WTF Do They Even Do?
Batliboi operates in three divisions:
1) Machine Tools
CNC machines, metal cutting machines, metal forming machines.
In FY24, they installed 310 machines and 12 Quickmill machines.
Quickmill is their Canadian subsidiary — manufacturing giant gantry drilling & milling machines.
Quickmill contributed 44% to total revenue in Q1 FY25.
That’s significant.
One subsidiary is basically carrying almost half the revenue.
If Canada sneezes, Batliboi catches pneumonia.
2) Air Engineering
Humidification systems, waste collection, bale press systems, ventilation, energy management.
Basically factory lungs.
3) Textile Machinery
They act as agents
