MOLDTECH - Mold-Tek Technologies Ltd Share Price

Mold-Tek Technologies Limited management provided an optimistic outlook during the earnings call on February 12, 2026. The company reported a significant profit increase of over 600% compared to Q3 of the previous year and a 20.2% rise from Q2 to Q3.

Key forward-looking points from the management include:

1. Projected Revenue Growth: The management aims to achieve a top-line revenue of approximately INR 225-230 crores for the next financial year, compared to the anticipated INR 180 crores for the current year, representing a growth of about 25-30%.

2. Acquisition Impact: The recent acquisition of Beryl is expected to contribute an additional revenue of about $6 million, translating to a significant boost in the company's overall turnover.

3. Cost Efficiency: Management anticipates improved efficiencies from the downsizing of its automotive team from 160 to 60 employees, which is expected to enhance cost control and increase operational efficiency.

4. Market Demand: The management expressed confidence in the civil engineering market, citing renewed project activity in the U.S. following a period of uncertainty. They noted a positive outlook on workflows, with expectations of better utilization in their engineering services.

5. Mergers and Acquisitions: Management is pursuing further acquisitions, particularly in high-rise structural design, to enhance their service offerings and market presence.

6. Profit Margins: The management aims to restore EBITDA margins to previous levels, potentially around 25%, supported by increased revenue and efficiencies from operational changes.

7. Long-term Growth Plans: Over the next 3-5 years, the company targets a CAGR of 20-25%, supported by existing operations and strategic acquisitions.

These insights paint a positive picture for Mold-Tek Technologies' future performance, driven by strategic initiatives and market conditions.

Question 1: "Could you please explain to what extent can AI negatively disrupt engineering service businesses like ours? What are we seeing? How are customers behaving in this regard? And what are we doing to risk mitigate? And if any -- if we are using any AI tools to make our operations leaner and expand our offerings, reduce time, etcetera?"

Answer 1: AI has no entry into engineering services; these require detailed internal knowledge of specifications and fabrication. Currently, we utilize over 150 tools for repetitive tasks, enhancing efficiency and reducing man-hours. While AI can assist in utilizing these tools, it cannot replace engineering services in the foreseeable future.

Question 2: "Could you please explain the data center opportunity in the Mechanical Engineering division? And why haven't we captured much of the opportunity up to date as data center rollout is not a new thing in America?"

Answer 2: We've been active in civil engineering for data centers, providing fabrication support for over three years. Most work pertains to civil or electronics, with minimal mechanical involvement. However, the increasing demand for transmission lines and substations linked to data centers has us expanding our mechanical team, now up to 60 members, indicating growth potential.

Question 3: "What is the real vision for growth and profitability for this company? Where would you like to take this company over the next few years?"

Answer 3: Our vision involves growing through acquisitions, like Beryl. We aim to increase our top line from approximately $16 million to over $23 million next year, equating to nearly Rs.225 crores. We're targeting a 25-30% growth rate, with expansions in civil engineering and potential acquisitions in structural design, aspiring for a CAGR of 20-25% over three years.

Question 4: "With the new tools and potential advantages, can we expect that with the same amount of people at Beryl, we could do twice or thrice as much revenue?"

Answer 4: While it's a fair assumption, it's complex. Beryl currently has a limited design team, but as we train our engineers and increase efficiency, we can expect substantial growth. We may not triple revenue immediately, but we anticipate rapid growth facilitated by utilizing our Indian team.

Question 5: "What is the status of issuing shares to Richard Leon, and are there plans for a share buyback?"

Answer 5: Mr. Leo Cannyn will be buying shares worth $0.5 million, and we are finalizing the demat process, which will be completed in the coming months. Regarding buybacks, we have not considered it as we're focusing on retaining cash for further acquisitions and constructing our campus in Nashik, which will save on rental costs.