Felix Industries guides ₹180-200 cr revenue for FY27, tripling from ₹102 cr
MD Ritesh Patel puts a ₹100-150 cr ceiling on the Mehsana recycling facility alone, as three expansion bets hit simultaneously.
What's new
- FY26 revenue tripled to ₹102 cr, with EBITDA up 125% to ₹31 cr.
- FY27 guidance set at ₹180-200 cr revenue, 31-32% EBITDA margin including other income.
- Mehsana metal recycling plant 70% retrofitted; operational start targeted by month-end.
- Acid reclamation trial succeeded in India, but no revenue guide as CPCB approval pending.
Themes from the call
Demand
Oman oil processing hitting 40 TPD at 100% utilization on government and refinery orders, scaling from ₹20 cr to ₹60-65 cr.
Margins
Q4 EBITDA margin dipped to 25% from FY26's ~30% on expansion-phase overheads; FY27 guidance implies recovery to 31-32%.
Capital allocation
Working capital debt to rise ~₹40 cr, split between India phase-in and new Oman limits; Mehsana expansion capex of ₹20-25 cr unlocks 100-125 cr revenue potential.
Guidance watch
- FY27 segment-wise: Oman oil ₹60-65 cr, India O&M ₹35-40 cr, Mehsana metal recycling ₹40-50 cr, CETP EPC ₹20 cr.
- FY30 ₹1,000 cr target declined as formal guidance; called it a rough estimate with too long a horizon.
- Acid reclamation revenue not quantified; commercialization stage with CPCB approval pending.
Risk flags
- Payment delays from global liquidity stress acknowledged; Oman war in Feb-March caused work stoppages now normalizing.
- Mehsana facility is a retrofit with no operational history yet; ₹40-50 cr FY27 target rests on month-end startup.
- Q4 margin compression to 25% on expansion overheads; no detailed bridge provided between that and the 31-32% FY27 target.
Key quotes
-
"If we operate it well, this facility itself will give us about 100-150 crores of turnover in the next financial year."
— Ritesh Patel, Managing Director, on Mehsana metal recycling facility -
"FY27 revenue 180-200 crores, EBITDA margin 31-32% (including other income), PAT margin 17-20%."
— Felix Industries management, FY27 guidance
The brief
Felix Industries tripled revenue to ₹102 cr in FY26 and is now guiding ₹180-200 cr for FY27, a near-doubling from here. The growth rests on three concurrent bets: Oman oil processing scaling from ₹20 cr to ₹60-65 cr at 100% utilization, the Mehsana metal recycling plant ramping to ₹40-50 cr, and India O&M plus CETP EPC contributing ₹55-60 cr. All three are on different timelines, and none has a long operating track record at this scale.
The Oman facility is the most proven, running 40 TPD at full utilization on government contracts. Management is already eyeing a 2x capacity expansion if order flow holds. Mehsana is still a retrofit 70% done, targeted to go live by month-end. The ₹40-50 cr revenue target depends on that working on schedule. Acid reclamation could be a fourth vector, but there is no revenue number and CPCB approval is pending.
Q4 margin compression to 25% from the full-year ~30% reflects expansion-phase costs and higher interest on working capital. Management says this normalizes as the new facilities ramp, but the FY27 guidance of 31-32% EBITDA margin, including other income, assumes all three segments hit their utilization targets simultaneously. A ₹40 cr working capital debt increase adds to the balance-sheet load.
The ₹1,000 cr FY30 aspiration was explicitly declined as guidance. That is the right call and it keeps the story honest. The question for FY27 is whether three untested ramps can execute at once, and whether payment delays from global liquidity stress will tighten the cash cycle before the new revenue streams are self-funding.
Tripled once, guiding to double again. Felix now has to prove three ramp-ups work at the same time.