What’s new

• H2 FY26 revenue fell 25% half-on-half to ₹27.65 cr as a 20% price drop in the insert segment hit results.
• EBITDA margin compressed to 6.45%; management says insert pricing has bottomed.
• A major automation capex will increase sand processing capacity 35-fold, targeting over 90% utilisation.

Why it matters

The insert price collapse directly hit Abha's core railway-supply business. The guided recovery to 15-20% EBITDA margins in FY27 depends on two unproven moves: a massive capacity expansion and a price rebound management hopes has arrived.

What we’re watching

• Whether insert prices actually recover as sleeper plants resume production.
• Ramp-up on the 35x sand processing plant and progress toward 90% utilisation.
• Execution of the new long-term railway OEM orders.

The full read

Abha Power's H2 FY26 results were hit hard. A 20% price drop in its insert segment drove a 25% half-on-half revenue fall to ₹27.65 crore and crushed EBITDA margins to 6.45%. Management says the price floor is in. The recovery plan leans on two bets. First, a 35-fold capacity jump from a nearly finished automation project, which must ramp to 90%+ utilisation from 20-30% today. Second, new long-term railway orders for two coach components, expected to deliver 10-12% of FY27 revenue. The guided rebound to 15-20% EBITDA margins assumes both the capacity ramp and the price recovery work. A defense prototype entry adds a new pipeline, but the core story remains the insert price cycle.

Primary source: NSE