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1. Opening Hook
Felix Industries just posted standalone revenue of ₹80.82 crore for FY26—a 144% jump from ₹33.07 crore the year before. Consolidated was even giddier: ₹102.21 crore, up 178%. The problem? In Q4, operating margins fell 8 percentage points quarter-on-quarter. Management blamed “manpower costs” and “liquidity issues.” The market decided neither explanation was reassuring. The company is now migrating from NSE Emerge to the Main Board—a milestone management clearly hopes will distract from the quarter that just happened.
20.3% standalone, down 7 points from Q3. Manpower, interest costs, and a CETP project in progress all took bites.
EBITDA (FY26)
₹31.88 crore, +131% YoY. The gap between EBITDA growth (131%) and PAT growth (100%) was taxes and interest.
Net Debt
~₹34 crore borrowing on ₹245 crore total assets. Leverage stayed modest; liquidity concerns stayed loud.
3. Management’s Key Commentary
On the year and growth:
“FY26 has been a transformational year for Felix Industries, marked by strong financial performance and business expansion.”
(Translation: Strong numbers happened. Whether they happen again is the conversation we’re avoiding.)
On Oman capacity and ramp-up:
“As of now, as we have already booked certain contracts from Oman government and the large refineries in Oman, our capacity utilization will be 100% this year. And I think, once we have 6 months or 8 months of continuous strong operations, we can ramp it up to 2X scale after this financial year.”
(Translation: We’ve got orders that fill 40 TPD today. In 6–8 months, if nothing breaks, we might build to 80 TPD. Don’t ask for the capex number yet.)
On margin squeeze in Q4:
“We had considerable expansion and things happening, manpower cost and all those things, due to which there has been a slight reduction in the margins. And then, due to liquidity issues, our interest costs have also gone up. So the utilization of the bank limits has also been on a higher side throughout.”
(Translation: We hired people, borrowed more, and the cost of both hit the quarter. A “slight” reduction was 8 percentage points.)
On metal recycling (Mehsana unit, just acquired):
“That unit is now on the verge of starting now, with the minor changes that we’re supposed to make, we have already done. So maybe in the next month or so, the unit would be fully operational. In terms of the capacity, it is, like, daily we can process around 4 tons per day copper sulphate and zinc sulphate. And primarily, we are targeting anywhere between 40 to 50 crores as revenue from metal recycling.”
(Translation: We bought a broken unit. It’ll run soon. At full tilt, it makes ₹40–50 crore a year. That’s the entire standalone business on one facility.)
On acid reclamation (still in trials):
“This is a new process that we have developed, and it had been very rigorous, you know, trials and testing on this process. As of now, the country does not have any acid reclamation plants… we are checking the results and optimizing the things. And recently, we found that the things are very good, and this can turn up into a good opportunity. Yet, we have not structured the business yet.”
(Translation: We cracked a process nobody else has. It works. We have no idea how to sell it yet.)
On plastic recycling expansion (Ahmedabad/Surat):
“As of now, this itself is a huge potential, and I am glad if we cater the entire capacity of this. The size of the plant has to be increased day in, day out. And, I don’t think, as of now, or in short-term plans, we should increase, or we should go with some more cities.”
(Translation: One plant, maxed out. Not opening a second one soon.)
On the path to recurring revenue dominance:
“Over the period of time, the EPC business will get very small. And, mostly the entire business will be recurring business… ultimately, over the period of 4 or 5 years, our major numbers should be only the recurring numbers.”
(Translation: We’re building toward BOO/BOOT/O&M contracts. Four years is a long time to wait for “major numbers” to arrive.)
