GOODLUCK - Goodluck India Limited Share Price

In the Q3 earnings call held on February 16, 2026, management provided an optimistic outlook for Goodluck India Limited, highlighting several key points for future growth. The steel and engineering sector is showing signs of recovery, with demand driven by government infrastructure investments and a robust defense budget allocation of Rs.7.85 lakh crore, marking an increase of nearly 15%. The imposition of a 12% safeguard duty on certain products has also stabilized prices, benefiting domestic producers.

Management indicates expectations of a 15% to 20% revenue growth for the financial year 2025-26, driven by a recovery in market sentiments and operational efficiencies. In terms of specific segments, production capacity in the defense sector is projected to expand significantly from 1.5 lakh to 4 lakh shells per annum, with anticipated revenues rising from Rs.300 crores to nearly Rs.900 crores upon full operational capacity. The EBITDA margins for this defense project are expected to range from 30% to 35%.

Additionally, the company aims to ramp up production in the high-margin aerospace and defense sectors, with management expressing confidence in capturing additional market opportunities. Goodluck anticipates revenues from the defense segment in Q4 FY'26 of approximately Rs.60-70 crores, with full contributions starting in Q1 FY'27.

Management also emphasized the importance of expanding OEM relationships and introducing value-added products. For FY'27, a target of Rs.600-700 crores has been projected from the solar sector, alongside maintaining a 92% capacity utilization rate across existing operations, indicating strong operational efficiency.

Overall, Goodluck India Limited's management portrays a positive outlook, focusing on strategic expansion in high-margin sectors while navigating the challenges of a volatile global market.

1. Question: "Could you provide us the segment-wise break up of volumes for the third quarter and 9 months of all divisions?"
   Answer: "We will provide it to you via email since it's lengthy. It's important for investors to understand our performance across segments."

2. Question: "Regarding the capex for increasing defense artillery shell capacity, what will be the mix of internal accruals?"
   Answer: "The total capex for this project is around INR 400 crores, financed by 60% equity and 40% debt. This allocation allows us to balance investment with maintaining financial stability."

3. Question: "When can we expect revenues from the increased defense artillery shell capacity?"
   Answer: "You can expect revenue to start flowing in the first quarter of FY '27, as it will take almost a year to ramp up production."

4. Question: "What is the capacity utilization of hydraulic tubes in this third quarter?"
   Answer: "Current capacity utilization for hydraulic tubes is around 40-45%. We anticipate this will increase to 60-65% in the next two quarters due to easing tariffs."

5. Question: "Are you revising the FY '26 revenue growth guidance upwards given the steel price increases?"
   Answer: "We maintain our guidance of 15% to 20% growth for FY '26. The positive market sentiment may enable better performance through this period."

6. Question: "What is the EBITDA pattern for Q3 FY '26 and 9-month FY '26?"
   Answer: "EBITDA for Q3 stood at approximately 9.7%, while for the nine-month period, it also maintained this level, confirming our operational efficiency."

7. Question: "What is the revenue expectation from the defense business in Q4?"
   Answer: "We anticipate INR 60 to 70 crores in revenue contribution from the defense sector in Q4 as production starts ramping up."

8. Question: "What will be the expected revenue and EBITDA margins for the defense project?"
   Answer: "The anticipated revenue from the artillery segment will be approximately INR 800 crores with EBITDA margins around 30%."

9. Question: "What are the potential margins for the aerospace division?"
   Answer: "Initially, we expect margins around 28% to 32% for aerospace. However, this may improve as we grow our capabilities."

10. Question: "What was the capex incurred during 9 months FY '26 and projections for FY '27 and FY '28?"
    Answer: "We've invested INR 186 crores till December with an additional INR 30 crores expected in Q4. Future capex for FY '27 and FY '28 is still under discussion."