Karbonsteel targets ₹400 cr revenue in FY26 as order book hits ₹350 cr
The company expects EBITDA margins of 12-13% from 10.86% in FY25, driven by automation and capacity expansion to 54,000 tons. Guidance comes despite the planned Khopoli plant shutdown.
— 2 earlier stories on Karbonsteel Engineering Ltd. →What's new
- FY26 revenue guidance of ~₹400 cr, up 33% YoY from ₹300+ cr in FY25
- Order book surged 75% to ₹350 cr
- EBITDA margin target of 12-13% vs 10.86% reported in FY25
- Capacity expansion to 54,000 tons, automation drive to improve margins
Why this matters
Management is betting on order book visibility and automation to offset the Khopoli plant shutdown, which contributed only 3.66% of FY26 revenue. The ₹350 cr order book gives strong coverage of the ₹400 cr target, leaving limited room for slippage. If margins reach 12-13%, earnings could improve significantly from the current ₹16.56 cr PAT.
What we're watching
- Achievement of 12-13% EBITDA margin given 10.86% in FY25
- Capex funding for 54,000-ton capacity expansion (D/E at 1.30)
- Realization of long-term ₹800-1,000 cr revenue aspiration
The full read
Karbonsteel’s FY25 was a mixed bag: revenue crossed ₹300 crore with a 10% growth, but EBITDA margin of 10.86% and PAT of ₹16.56 crore left room for improvement. The FY26 guidance is punchier. Management sees revenue of ~₹400 crore, driven by a 75% order book surge to ₹350 crore and capacity expansion to 54,000 tons. Margins are expected to lift to 12-13% through automation and scale. The elephant in the room is the Khopoli plant shutdown — but at only 3.66% of guided revenue, it’s manageable. The real test: can the company convert order book visibility into cash flow without bumping into its 1.30 debt-to-equity constraint? Management is betting yes. The numbers suggest it’s plausible. Execution is the open question.
Questions answered
- How does the order book support the FY26 revenue guidance?
- The order book of ₹350 cr covers a large part of the ₹400 cr revenue target, providing strong near-term visibility. The remaining ₹50 cr likely comes from short-cycle orders.
- What is the impact of the Khopoli plant shutdown on FY26 revenue?
- The shutdown reduces contribution by ₹11 cr, or 3.66% of guided FY26 revenue. The company is compensating through capacity expansion and automation at other plants.
- How will Karbonsteel improve EBITDA margins to 12-13%?
- Management plans automation and operating leverage from higher volumes. FY25 EBITDA margin was 10.86%, so a 1-2 percentage point improvement is targeted.
- What is the capital expenditure plan for the capacity expansion?
- The expansion to 54,000 tons is part of the growth strategy. The current debt/equity ratio of 1.30 suggests some headroom, but no specific capex figure was disclosed.
- How realistic is the long-term revenue aspiration of ₹800-1,000 cr?
- The aspiration implies doubling FY26 revenue in a few years. It requires sustained order book growth and margin execution. No timeline was provided.
Karbonsteel Engineering Ltd.
Latest quarter · Mar 2026
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Story so far
All notes on KARBON →- 12 Jun 2026 · 5:43 PM IST Karbonsteel targets ₹400 cr revenue in FY26 as order book hits ₹350 cr
- 2d ago Karbonsteel targets ₹400 cr revenue in FY26 as order book surges 75%
- 19d ago Karbonsteel is shutting its Khopoli plant. No buyer, no capital recovery.