Ador Welding Ltd.revenue +23%, gross margin 34.2%, recovery targeted

Ador Welding's Q2 FY27 call, held on 23 October 2026 as the company marked 75 years, reported revenue of ₹345 crore, up about 23%, and H1 revenue of ₹654 crore, also up 23%, on demand from infrastructure, power, oil and gas, railways, shipbuilding and defence.

Gross margin fell to 34.2% as steel and other input costs rose, and EBITDA grew only 9% in the quarter, though the H1 EBITDA margin of 11.2% was slightly above last year. The Managing Director said about 80% of the dip came from cost inflation and 15% to 20% from the aggressive growth strategy, that price increases were passed through later than management wanted, and that Q2 was a bigger dip than management accepts.

Management targets an EBITDA margin of 12% to 13% and a gross margin of 36% to 38%, with recovery expected from Q3. Volume growth was in the mid-teens, and exports are 15% to 20% of sales, mostly to the Middle East. The Board declared an interim dividend of ₹7.5 a share. Capex steps up to ₹60 crore to ₹70 crore a year for two years without debt or dilution.