Esab India profit climbs 18% on land sale gain
The engineering firm posted a net profit of ₹206.7 crore for FY26, aided by a ₹17.26 crore gain from selling land in West Bengal.
— 1 earlier story on Esab India Ltd. →What's new
- Annual net profit rose 18% to ₹206.7 crore on revenue of ₹1,514 crore.
- Board recommended a final dividend of ₹25 per share.
- Results include a ₹17.26 crore gain from a land sale and a ₹13.65 crore gratuity provision.
Why this matters
The bottom line benefited from a one-time asset disposal, which masks the underlying operational performance. Investors should look past the land sale to see how the core fabrication technology business is actually performing.
What we're watching
- Shareholder approval for the ₹25 per share dividend at the July 29 AGM.
- Impact of new labor codes on future gratuity expenses.
- Operational margins excluding the one-time land sale gain.
The full read
Esab India closed the fiscal year ending March 31, 2026, with a net profit of ₹206.7 crore, an 18% increase over the previous year. Revenue for the period reached ₹1,514 crore, marking a 10% rise. The bottom line was helped by a ₹17.26 crore net exceptional gain from the sale of land at the company's Khardah facility in West Bengal. This gain was partially offset by a ₹13.65 crore provision for gratuity liabilities following updates to labor codes. The board has recommended a final dividend of ₹25 per share, a 250% payout on face value. The Annual General Meeting is scheduled for July 29, 2026, with the record date for the dividend set for July 23. While the profit growth appears strong, the reliance on asset disposal to hit these figures suggests that the core fabrication technology business faces a more measured growth trajectory.
Questions answered
- What was the primary driver of the profit growth?
- Net profit grew 18% to ₹206.7 crore, supported by a net exceptional gain of ₹17.26 crore from the sale of land at the company's Khardah facility.
- How much will shareholders receive in dividends?
- The board recommended a final dividend of ₹25 per share, which represents a 250% payout on the face value.
- Did the company face any unexpected costs this year?
- Yes, the company recorded a ₹13.65 crore provision to cover updated gratuity liabilities mandated by new labor codes.
- When is the record date for the dividend?
- The record date for dividend eligibility is set for July 23, 2026.
Story so far
All notes on ESABINDIA →- 27 May 2026 · 11:24 PM IST Esab India profit climbs 18% on land sale gain
- today Esab India lifts annual profit 18% to ₹206.7 crore