International Conveyors Ltd Q2 FY26 – From Belts to Bets: Conveyor King Turns Into a Serial Investor with -165% Profit Shock and 27% Treasury High!
1. At a Glance
International Conveyors Ltd (ICL) — India’s lone wolf in the PVC conveyor belting jungle — just dropped its Q2 FY26 results, and let’s just say the numbers look like someone accidentally reversed the polarity on their profit meter. The company, known for its strong belts (and stronger balance sheet), reported a quarterly sales surge of 47.2% YoY to ₹45.3 crore, but a dramatic PAT nosedive to -₹17.4 crore, a profit variance of -165%.
At a market cap of ₹553 crore and a stock price of ₹87.2, ICL trades at a modest P/E of 8.16x, almost a quarter of the industry’s inflated 34.8x. Its ROE stands tall at 26.4%, ROCE at 27.1%, and a rather zen debt-to-equity ratio of 0.30. On paper, this looks like a well-oiled conveyor system; but under the hood, the earnings include a juicy ₹64 crore of other income from its “treasury operations” — the company’s own side hustle of investing in everyone else’s stocks.
So while the conveyor belts move coal, the promoters seem to be moving capital — aggressively. In the past 12 months, ICL has been acquiring stakes in everything from TD Power Systems to Ganesha Ecosphere, Natco Pharma, Religare, and even CARE Ratings. Who knew a conveyor belt manufacturer could double as a mini mutual fund?
2. Introduction
Once upon a time, in the dusty depths of coal mines and potash pits, conveyor belts carried the load of nations. And in that industrial silence, one name echoed: International Conveyors Ltd. Founded in 1973, this ISO 9001:2015-certified company became India’s only listed PVC belting player — a niche so narrow that it could probably fit between two rollers of its own conveyor.
Fast forward to 2025 — the company is now juggling between making belts and playing the stock market like Rakesh Jhunjhunwala with factory grease on his hands. With a treasury segment contributing 27% to FY24 revenue, ICL’s “manufacturing + investing” combo feels like a weird marriage between an industrial engineer and a day trader.
While exports form 62% of revenue — primarily to North America — the company’s Q2FY26 numbers suggest that its conveyor is moving… backward. The ₹17 crore loss in Q2FY26, following multiple high-profile acquisitions, signals that the company might be stretching its belts a bit too far.
But here’s the twist — despite all this chaos, ICL remains debt-light, cash-rich, and promoter-heavy (70.1%). The stock has barely moved in a year (up 2.8%) but still boasts a 5-year CAGR of 22.9%. It’s like that uncle who doesn’t show emotions but has quietly built five rental properties.
3. Business Model – WTF Do They Even Do?
Let’s simplify this conveyor puzzle. International Conveyors Ltd’s core business is to manufacture PVC fire-resistant, anti-static solid woven conveyor belts. These are used in industries that literally burn cash — coal, potash, cement, fertilizer, gypsum, and salt.
The company’s products range from Type 3 to Type 18, capable of handling up to 3150 kN/m tensile strength and widths of up to 1800 mm. In short, if Batman ever needed a conveyor belt in the Batcave, it would probably be ICL-made.
It has two plants in Aurangabad and one in Falta SEZ near Kolkata, with a combined annual capacity of 11.25 lakh meters. Exports account for 62% of revenue, with global clients like Nutrien, Glencore, Mosaic, and Peabody Energy. On the domestic front, you’ll find its belts running through Tata Steel, Coal India, and Shree Cement.
But wait — that’s not where it ends. The company also:
Trades steel cord belts and fasteners, basically being the Amazon of belt parts.
Runs a 109 lakh KWH wind power setup, probably just to prove it’s green.
And most curiously, operates a “treasury” segment, where it invests in other companies. This segment is now a serious profit contributor, forming 27% of FY24 revenue.
So yeah, they make conveyor belts, trade belts, generate wind energy, and trade stocks. If diversification were an Olympic sport, ICL would be wearing the gold.
4. Financials Overview
Quarterly Results Locked: Q2 FY26
Metric
Latest Qtr (Sep FY26)
YoY Qtr (Sep FY25)
Prev Qtr (Jun FY26)
YoY %
QoQ %
Revenue
₹45.3 Cr
₹30.8 Cr
₹35.0 Cr
47.2%
29.4%
EBITDA
₹11.0 Cr
₹5.0 Cr
₹5.0 Cr
120%
120%
PAT
-₹17.4 Cr
₹27.0 Cr
₹52.0 Cr
-165%
-133%
EPS (₹)
-2.74
4.23
8.22
-165%
-133%
Witty Commentary: The revenue growth looks like a gym bro bulking fast, but the PAT fell off the treadmill. The “-₹17 crore” loss seems to have come not from the core business, but from a possible reversal in their
