Orient Ceratech FY2026: Revenue Hits ₹405 Cr, PAT Doubles — While the Power Division Takes Its Final Bow

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1 — At a Glance

Orient Ceratech closed FY2026 with standalone revenue of ₹405 crore, up 22% year-on-year, and PAT of ₹19.8 crore — more than double the ₹9.6 crore of FY2025. The 107% profit jump is the headline number, though it requires context: FY2025 was a compressed base, and ₹12.9 crore of other income sits inside the PAT figure. Strip that out and the operating engine earns more modestly.

On the positive side of the ledger: debt has fallen sharply. Borrowings stand at ₹24 crore on the standalone balance sheet against ₹46 crore in the prior year, and the D/E ratio is a lean 0.08. CareEdge reaffirmed CARE BBB+; Stable in March 2026, citing ~25% revenue growth in 9MFY26 and interest coverage of 8.10x — adequate, per the filing.

On the attention side: ROCE sits at 9.16%, ROE at 6.89%, and the five-year sales CAGR is 6%. A company selling into steel, oil and gas, and cement — all cyclical — that grows revenue at single digits over half a decade is one that the cycle has not yet fully rewarded. Meanwhile, the company is in the process of exiting its entire power division, sold piecemeal over two announcements. The 50-year-old company is becoming, decisively, a materials business.

The central tension: a ₹493 Cr market cap company with clean books, a rebuilding margin story, and a market that pays 25x earnings for the privilege of watching it unfold.

2 — Introduction

Orient Ceratech Limited has been in business since 1971 — initially as Orient Abrasives Limited, a name it carried until May 2023 when it rebranded to reflect the broader ceramics identity. It is part of the Ashapura Group, promoted by Bombay Minerals Limited (BML), itself a subsidiary of Ashapura Minechem Limited.

The FY2026 results, approved by the board on 27 May 2026, show standalone revenue of ₹405 crore and consolidated revenue of ₹404 crore. The auditors — Sanghavi & Company — issued an unmodified opinion on both sets of results. The board recommended a dividend of ₹0.35 per share (face value ₹1), a 35% payout.

The year also produced a series of announcements that amount to a strategic restructuring of the energy side of the business. In late FY2026, the board approved the sale of the Porbandar thermal power station for ₹3.75 crore to SS Fabrication of Ahmedabad — a captive unit with no separate revenue, carried at a written-down value of ₹3.77 crore on the balance sheet per the filing. Then, on 18 June 2026, the board approved the sale of the windmill division to Greenwin Energy Thirteen LLP for ₹15.25 crore. That division contributed ₹6.27 crore in revenue (1.55% of total) and carried a notional net worth of ₹21.96 crore per the disclosure.

Following these two transactions, per the 18 June announcement, the power division will no longer appear in segment reporting.

Two governance events rounded out the period: Company Secretary Seema Sharma resigned effective 7 April 2026, and Krupal Upadhyay was appointed in her place from 1 June 2026. Non-Executive Independent Director Ketan Shrimankar was re-appointed for a second two-year term from 11 August 2026, subject to shareholder approval.

3 — Business Model: WTF Do They Even Do?

Orient Ceratech manufactures things that other heavy industries consume and rarely think about — until they run out.

The core business is alumina refractories and monolithics: materials that line the insides of furnaces, kilns, and reactors so those furnaces don’t melt themselves. Steel plants are the primary customer. The product portfolio runs from calcined bauxite (the input) to fused aluminium oxide grains (the processed form) to low-cement castables (the finished article that gets poured into a furnace lining). If a steel plant runs hot, Orient Ceratech’s products are what stands between the steel and the structure.

The more interesting franchise is proppants — ceramic balls used in hydraulic fracturing to prop open shale rock formations and let natural gas flow out. Orient’s ALPHAPROP series (AHS10, AHS15) are intermediate and high-strength variants, manufactured with bauxite as the principal raw material. This segment contributes 20-25% of revenue, per CareEdge, and sits at the higher-margin end of the product mix.

The rest of the revenue mix, per CareEdge’s breakdown: calcined products, chamotte, and alumina-fused products at 10-15% each, with castables also at 20-25%. Chamotte — a refractory raw material — was acquired directly in FY2023 when OCL purchased the chamotte plant from group company Ashapura Minechem to eliminate job-work costs and manufacture in-house.

The company holds captive bauxite mines at Bhatia, Jamnagar, and Bhuj in Gujarat, and a 9 MW captive thermal power plant at Porbandar (currently in the process of being sold). Manufacturing sits in Porbandar and Bhuj; the registered office is in Mumbai.

Geographically, exports contributed ~23% and domestic ~77% of revenue in FY2023 (the latest geographic split in the dump). The subsidiary Orient Advanced Materials FZE, incorporated in the Hamriyah Free Zone UAE in FY2023, had not yet commenced business as of the last reported status.

The business model, in summary: buy bauxite (partly from captive mines, partly from group entities, partly from the open market), process it at high temperature using captive power, and sell the output to steel plants and oil & gas drillers. Vertical integration that mostly works, interrupted occasionally by the working capital cycle’s appetite for financing.

Does the proppant franchise — catering to oil and gas fracturing demand — pull OCL’s fortune in a different direction than its steel-linked core?

4 — Financials Overview

Figures are standalone, in ₹ crore. The reporting period is Annual (full year ended 31 March 2026).

EBITDA computed as PBT (₹24.4 Cr) + Interest (₹3.3 Cr) + Depreciation (₹14.6 Cr) = ₹42.3 Cr. Note: Screener reports Operating Profit of ₹29.6 Cr (OPM 7.28%) which reflects the operating line before other income; EBITDA including other income and excluding exceptional is ₹42.3 Cr.

A note from the filing: the results include an exceptional item of ₹1.69 crore (standalone) — an incremental impact from the government’s new Labour Codes, recognised as a one-off per the board’s disclosure. FY2026 depreciation is higher than prior years partly due to a revised useful-life assessment for wind turbines, which added ₹3.38 crore of depreciation in the period, per the filing.

Quarterly (Mar 2026 vs Dec 2025)