Sugs Lloyd locks in ₹825 cr order book as FPI demand surges
Management reiterates aggressive revenue targets of ₹1,000 cr by FY28 despite a one-time margin slip on a legacy project.
What's new
- Revenue hit ₹300 cr, a 71% year-on-year jump, with net profit rising 72% to ₹28.7 cr.
- Q1 FY27 FPI orders already equal the total FPI volume for all of FY26.
- FY27 revenue target remains at ₹600 cr, climbing to ₹1,000 cr by FY28.
Why it matters
The company is successfully shifting its scale, as evidenced by the rapid acceleration in its fault passage indicator business. The margin stumble on the Mahagenco project is a reminder of legacy execution risks, but the massive order book provides a buffer that management believes is sufficient to maintain profitability.
What we're watching
- Execution of the Konkan Railway order to ensure no further margin dilution.
- Whether the aggressive FY27 revenue target of ₹600 cr holds firm in Q2.
- Sustainability of the recent FPI order growth rate.
The full read
Sugs Lloyd has put up a strong finish to FY26, reporting revenue of ₹300 crore and net profit of ₹28.7 crore. These represent year-on-year gains of 71% and 72% respectively. The core of the growth story is the fault passage indicator business, which has seen Q1 FY27 bookings already eclipse the total order volume of the entire prior fiscal year. While an order book of ₹825 crore supports management’s targets of ₹600 crore for FY27 and ₹1,000 crore for FY28, the quarter wasn't without friction. A legacy Mahagenco project triggered cost overruns that weighed on March margins. Executives are framing this as a one-off issue rather than a structural drift. The path to their ₹1,000 crore goal now relies on converting that ₹825 crore order book into steady revenue without repeating these project-specific cost leaks.