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.