IFB's AC motor still in trials after earlier claims of external sales
The engineering unit missed its FY26 order target by 40%. Management now targets Rs 350 crore for the year ahead while chasing Rs 150 crore in cost cuts.
— 1 earlier story on IFB Industries Ltd. →What's new
- IFB set a Rs 150 crore cost optimisation target for FY27, realising Rs 30 crore in the first two months.
- Engineering division order target raised to Rs 350 crore after a Rs 153 crore result against a Rs 250 crore goal.
- Management conceded its AC motor remains in trials, contradicting prior guidance that external supplies had begun.
Why this matters
The AC motor admission is a credibility issue. External supplies were part of the engineering division's growth thesis. With the unit already missing its order target and now chasing higher costs, the new Rs 350 crore goal is ambitious. The cost cut is a necessary response to margin erosion from commodity and forex headwinds.
What we're watching
- Whether the Rs 350 crore engineering order target proves achievable after a 40% FY26 miss.
- The timeline for external AC motor sales, now an open question.
- If the Rs 150 crore cost cut can offset the Rs 84 crore headwind seen in FY26.
The full read
IFB Industries' Q4 showed top-line momentum with 11% revenue growth, hitting Rs 1,456 crore. But profitability slipped: operating margins fell to 6.1% from 6.5%, net margins to 2.4% from 2.6%. The culprit: Rs 84 crore in commodity and forex headwinds. That gap matters. The company's response is a Rs 150 crore cost optimisation target for FY27, with Rs 30 crore already banked. The engineering division, which landed only Rs 153 crore against a Rs 250 crore order target in FY26, now faces a steeper Rs 350 crore goal. And the AC motor, earlier flagged as externally sold, is still in trials. Washing machines, the bright spot, grew 17% with front-loader share steady at 23%. The cost cuts are necessary but the engineering turnaround is unproven, and the AC motor correction dents management's credibility.
Questions answered
- How much did the engineering division miss its FY26 order target?
- The division logged Rs 153 crore in new orders, falling well short of its Rs 250 crore target. For FY27, management has raised the target to Rs 350 crore.
- What happened with the AC motor external sales?
- The motor remains in trials and has not yet been sold externally. This contradicts earlier guidance that had indicated external supplies had already begun.
- How much did commodity and forex pressures cost the company?
- IFB cited Rs 84 crore in commodity and forex headwinds during FY26, which weighed on operating margins that fell to 6.1% from 6.5%.
- What is the company doing about its margins?
- IFB has set a Rs 150 crore cost optimisation target for the current financial year. It has already realised Rs 30 crore of that in the first two months.
- How did the washing machine business perform?
- Washing machine sales grew 17% annually in Q4. The front-loader sub-segment maintained a stable market share of 23%.
Story so far
All notes on IFBIND →- 10 Jun 2026 · 5:38 PM IST IFB's AC motor still in trials after earlier claims of external sales
- 5d ago IFB Industries posts FY26 numbers again. This time in a slide deck.