Summary
Indobell Insulations Limited - Q3 FY26 Earnings Call Summary Thursday, January 22, 2026, 4:00 PM
Event Participants
Executives 2 Nikhil Dassani (Manager - Finance), Vijay Burman (Managing Director)
Analysts N/A (Virtual event moderated by Finportal Investments; questions submitted via chat)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (FY25) | ~₹25 crores | Significant growth from <₹10 crores in FY22; driven by shift from consulting to manufacturing/exports. |
| EBITDA Margin (Current) | ~11.6% | Reported for the half-yearly period; management aiming for expansion. |
| Export Order Book | ~USD 700,000 | Includes orders for 2026; recent wins from GE Vernova featured. |
| Domestic Order Book | ~₹13.28 crores | Stated as roughly double the export book; including a ₹6.64 crore BHEL order. |
| Top 5 Client Concentration | 35-40% | Marine sector forms the largest chunk of current revenue. |
Geographic & Segment Commentary
- Marine Insulation: Contributes 35-40% of revenue. Focuses on specialized hot, cold, and acoustic insulation for shipbuilders like Garden Reach to maintain cabin temperatures and crew safety.
- Exports (Jackets): Contributes 20-25% of revenue. Involves 3D-designed insulation jackets for gas/steam turbines for global EPCs in Poland, Sweden, and the US; utilizes Siemens NX software for in-house design.
- Nodulated Wool: Secondary manufacturing vertical (20-25% revenue) with units in Kolkata and Palghar. Supplies specialized heat-shielding fibers to authorized railway vendors for brake blocks and pads.
- Project & Maintenance: Focuses on capital overhauling for power plants (NTPC, BHEL, Adani). Includes specialized spray insulation services previously executed in Indonesia, Malaysia, and the Philippines.
Company-Specific & Strategic Commentary
- Carbon Credit Focus: Transitioning from standard insulation to “economic thickness” designs to reduce carbon emissions, enabling clients to generate or save on carbon credits.
- In-House Engineering: Strategic move to perform 100% of 3D design and AutoCAD modeling in-house, providing a margin edge over European competitors with higher overheads.
- Vertical Integration: Expanding into “Thermal Audits” to identify energy leaks in existing plants, using these audits as a lead-generation tool for subsequent insulation contracts.
- R&D in Friction Materials: Developing non-carcinogenic fibrous products to meet European standards, targeting the international automotive brake pad market by late April 2026.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| EBITDA Margin | 13% - 14% by FY27-FY28 | Expected improvements through higher-margin export jackets and operational efficiencies. |
| Capacity Utilization | 200% of current output | Management plans to double jacket manufacturing by adding production lines as order flow from global OEMs increases. |
| Execution Timeline | FY26 - FY28 | Most domestic orders (e.g., BHEL, Adani units) and export spillover to be executed over the next 24-36 months. |
Risks & Constraints
| Risk | Context |
|---|---|
| Working Capital/Receivables | Export payment terms are 150 days (Ariba-based); management noted this caused a spike in March 2025 receivables, though they are now “okay” with it. |
| Project Delays | Domestic EPC projects often suffer from overruns and delays, which can impact revenue recognition timelines for the project vertical. |
| Certification Barriers | International expansion of the nodulated wool segment requires non-carcinogenicity certifications and overseas testing that are not available in India. |
Q&A Highlights
Order Book & Growth
- Question: What explains the jump from ₹10 crore to ₹25 crore turnover after 50 years? (Finportal Moderator)
- Answer: The company shifted from an advisory/maintenance role to a high-value “design, supply, and apply” model, gaining empanelment with global turbine manufacturers (Vijay Burman).
Export Financials
- Question: How do export margins compare to domestic ones? (Finportal Moderator)
- Answer: Export margins are superior due to in-house design engineering and USD appreciation, despite the 150-day payment cycle (Vijay Burman).
Operational Capacity
- Question: What is the maximum revenue achievable at 100% capacity? (Finportal Moderator)
- Answer: Jacket manufacturing is scalable; currently doing one gas turbine unit per month but can easily double this by adding labor and design lines (Vijay Burman).
Strategic Verticals
- Question: Why enter the marine insulation space? (Finportal Moderator)
- Answer: High technical difficulty in managing ship cabin temperatures (24°C) adjacent to boiler rooms (80°C) created a niche for specialized design and experimental work for naval authorities (Vijay Burman).
Key Takeaway
Indobell Insulations has successfully pivoted from a legacy maintenance firm to a design-led manufacturing entity, nearly tripling its revenue base to ₹25 crores in three years. The company is leveraging its in-house 3D design capabilities to capture high-margin export orders for turbine jackets, notably within the GE Vernova ecosystem, while maintaining a robust domestic project book with BHEL and Adani. Strategically, the firm is positioning itself as a “Thermal Audit” specialist to capitalize on the global push for carbon emission reduction and carbon credit generation. While the 150-day receivable cycle for international contracts remains a liquidity challenge, management’s outlook for FY27-28 remains optimistic with target EBITDA margins of 13-14%. Investors should monitor the successful certification of their non-carcinogenic friction products, which is critical for their next phase of European export growth.
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