Paramount Speciality plans to double revenue with ₹24 cr capex
The forgings maker guided for ₹150-160 cr revenue in FY27, up from an estimated ₹120 cr in FY26, with a new plant adding 6,000-8,000 tonnes of capacity.
What's new
- Management guided for ₹150-160 cr revenue in FY27, a 25-33% jump from the estimated ₹120 cr in FY26.
- A ₹23-24 cr capex will add 6,000-8,000 tonnes of forging capacity via a new hammer and press in H1 FY27.
- EBITDA margins are guided to improve from 6-7% in H1 to 8-10% in H2 as new capacity comes online.
Why this matters
This is a concrete growth plan for a nano-cap. The guidance implies the company expects to convert sector demand into a step-up in scale. The margin improvement target hinges on the new equipment running at higher utilisation quickly.
What we're watching
- Whether the new equipment begins commercial production on schedule in H1 FY27.
- If the company wins the orders needed to fill the new capacity and hit ₹200 cr+ in FY28.
- Actual margin progression in H1 versus the guided 6-7%.
The full read
Paramount Speciality Forgings laid out a plan to roughly double its revenue over two years. The company guided for ₹150-160 crore in FY27, up from an estimated ₹120 crore in FY26, with a ₹23-24 crore capex adding 6,000-8,000 tonnes of forging capacity. A new 10-ton pneumatic hammer and 2,000-ton forging press are slated for commercial production in H1 FY27. Management expects margins to climb from 6-7% EBITDA in H1 to 8-10% in H2 as the new equipment lifts volume. The path to ₹200 crore-plus revenue in FY28 and a ₹250-300 crore full-capacity potential depends on winning orders from oil and gas, petrochemicals, and power clients. It's an ambitious ramp for a nano-cap, and the execution timeline is tight.
Questions answered
- How much is Paramount spending on capacity expansion?
- The company is investing ₹23-24 crore in new equipment, including a 10-ton pneumatic hammer and a 2,000-ton forging press. This will add 6,000-8,000 tonnes per annum of capacity.
- What is the revenue guidance for FY27 and beyond?
- Management guided for ₹150-160 crore revenue in FY27, up from an estimated ₹120 crore in FY26. The company targets over ₹200 crore in FY28 and sees a maximum potential of ₹250-300 crore at full capacity.
- What is the expected margin trajectory?
- EBITDA margins are guided at 6-7% in the first half of FY27, improving to 8-10% in the second half. The improvement is tied to the new capacity coming online and achieving higher volumes.
- Which end-sectors does management cite as growth drivers?
- Management expressed cautious optimism about demand from the oil and gas, petrochemicals, and power sectors. These are the key verticals expected to support the volume growth.
An independent reading of the company's own disclosure — the primary filing above is the final word.