Karamtara's first listed quarter posts Rs 1,581 crore sales, up 72%, with transmission as next bet

Karamtara Engineering makes the steel structures that hold up solar panels, wind turbines and power lines — mounting frames, towers and fasteners. On October 9, 2026 it published the transcript of its October 7 first earnings call as a listed company for the quarter ended June 30, 2026, reporting revenue from operations of Rs 1,581 crore, up 72% year-on-year . Management wants to repeat its solar scale-up in transmission towers and pre-engineered buildings while aiming for 60-65% revenue growth in FY27 .

Sales and profit jumped from last year, but margins slipped from last year's first quarter

Q1 FY27 growth was strong against both the year-ago quarter and the March quarter, while profitability as a share of sales stepped down from a year ago and stepped up from the March quarter .

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EBITDA means operating profit before interest, tax and depreciation, and PAT means profit after tax. Management put Q1 FY27 EBITDA at about 11% against 13% in Q1 FY26 . It linked the pressure to shipping and trucking costs in Europe and the Middle East at all-time highs, and said new contracts would seek to recover those costs .

Reported sales include a tariff pass-through that sits in both revenue and other expenses. Management put it at about Rs 250 crore in Q1 FY27 against about Rs 113 crore in Q1 FY26, and said it does not affect profit because it is fully passed to customers .

Scale before listing was already steady. Revenue rose across FY24 to FY26 while EBITDA margin stayed around 11% and PAT rose faster than sales .

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Solar and exports still carry the quarter

Renewable products contributed 82% of Q1 FY27 revenues, and international business accounted for 66% of revenue, implying about 34% domestic .

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The solar kit covers both fixed-tilt and tracker plants, so customers can source most structural needs from one supplier . Wind covers tubular and hybrid lattice towers, transmission covers lattice towers for lines up to 1,200 kV plus fittings such as insulator fittings and clamps, and fasteners cover bolts, nuts and washers for solar, wind, transmission, bridges and railways .

Exports run to more than 50 countries to equipment makers, contractors and power producers, with subsidiaries in Italy, the USA and Saudi Arabia . Management said demand currently outpaces supply, called India very compelling on solar targets and grid spending including the Rs 1.86 lakh crore Green Energy Corridor Phase 3, and called Europe a growing opportunity .

Solar dependence on a few buyers has eased as scale rose .

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Bhachau transmission plant has started while Saudi plant targets December trials

Karamtara describes itself as backward-integrated with in-house rolling mills and galvanising for captive use . It operates 13 facilities — seven at Boisar plus one at Nagpur in Maharashtra, four at Bhachau in Gujarat, and one in Italy — and aggregated installed capacity stood at 889,200 metric tonnes per annum at the Q1 FY27 quarter-end, excluding rolling and galvanising .

The past two years brought debottlenecking plus new plants at Boisar and Bhachau . The Bhachau cluster sits near renewable hubs such as Khavda, Rapar and Jamnagar and near Mundra and Kandla ports for exports . The lattice-structure plant for transmission towers at Bhachau commenced operations in Q1 FY27 .

What is coming next is a rolling mill at Bhachau to support transmission and tracker piles, a pre-engineered buildings plant at Bhachau focused on data centres, a solar stamped-parts plant at Boisar, and a multiproduct solar plus transmission plant in Saudi Arabia . Management expects the India transmission plant to hit peak capacity in 6 to 9 months, Saudi trials in December 2026 with galvanising online by February-March and then 12 to 18 months to reach good utilisation, and pre-engineered buildings to start by the beginning of next financial year .

Management stressed that capacity can shift between uses. Angular wind towers can also be made as transmission towers, and it shut a Nagpur rolling mill to move the fastener plant there as an example of moving capital to higher-margin uses .

US buyers absorb the 50% tariff because local steel costs more

Steel and aluminium products fall under US Section 232 at 50% globally, which management said does not stack with country tariffs and stays at 50% even when those move . When tariffs rose from zero to 25% to 50%, the increase was fully absorbed by buyers through change-of-law recovery, including cargo on water or at customs .

The backdrop is tight US supply. Steel is in short supply with 6 to 8 month lead times, so US local prices are about 30% to 40% higher than buying from India . Management said it sees no major Indian competitor in its products in the US at this point .

Contracts are built to avoid commodity risk. Domestic solar orders run 4 to 5 months with steel and zinc booked at order, export orders run 8 to 9 months with imported raw material, long domestic transmission orders carry a Price Variation Clause, some export orders beyond one year have price variation, and some large overseas transmission orders are on free-on-board terms with shipping as a pass-through .

Full-year target relies on a stronger second half and fuller factories

Management endeavours to grow FY27 revenue by 60% to 65% over last year and said Q2 has been good . It repeated its seasonal rule that 40% to 42% of revenue comes in the first six months and 58% to 60% in the last six months, a trajectory seen over the last few years, and said performance is better judged annually than quarterly .

Margin recovery is tied to utilisation. Last year saw Rs 900 crore of capex with more this year, and teams for new plants are already hired, so fixed costs are already in the books before revenue arrives . Management said sweating those assets and higher resource utilisation should lift EBITDA margin, and that Q2 margins are already far better despite elevated oil-linked logistics costs .

Cash discipline improved into the quarter even as capex releveled debt .

Sources: FY24-FY26 — ; Q1 FY27 — .

Interest cost fell to 2.6% of revenue despite term loans for capex, with IPO proceeds expected to lower it further .

Pre-engineered buildings for data centres is pitched as customer-pulled and allied — similar steel buying and welding work, few scale on-time suppliers, existing large clients asking for quick turnaround, and qualifications including the Nordics . Management declined to quantify margins but said the profile should be similar to existing businesses and really good, which is why it is investing .

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Sources

1. 1 Karamtara Engineering Limited has informed the Exchange about Earning call transcript
2. 2 Investor presentation, 2026-10-06