HLE Glascoat Limited, a leading player in chemical process equipment manufacturing, delivered a solid financial performance for the fiscal year ending 31st March 2025. The company reported a 51.1% year-on-year (YoY) growth in Profit After Tax (PAT) and maintained positive momentum across its product segments, operational efficiencies, and strategic initiatives.

FY25 Financial Performance Reflects Strong Growth

In FY25, HLE Glascoat’s consolidated revenue stood at ₹1,02,758.7 lakhs, up 6.2% YoY. The company also recorded a significant EBITDA growth of 16.6%, reaching ₹14,093.4 lakhs. The EBITDA margin improved to 13.7%, indicating increased operational efficiency.

Most notably, the PAT for FY25 increased by 51.1% to ₹6,176.7 lakhs, reflecting the company’s strong execution and margin expansion. PAT margin also improved to 6.0% from 4.2% in the previous year.

Q4FY25 Performance Highlights Remarkable Turnaround

The fourth quarter of FY25 was particularly strong for HLE Glascoat:

• Revenue from contracts with customers stood at ₹33,370.7 lakhs, marking an 8.7% YoY and 44.4% QoQ growth.

• EBITDA for Q4FY25 jumped 41.1% YoY and 96.7% QoQ to reach ₹5,424.5 lakhs.

• PAT for Q4FY25 stood at ₹3,164.4 lakhs, more than doubling YoY by 113.8% with a PAT margin of 9.5%.

This strong quarterly performance indicates enhanced operating leverage and profitability as the company scales up its operations.

Segment-Wise Revenue and EBIT Performance

Glass Lined Equipment

This segment led the growth with revenue rising 17.2% YoY to ₹58,213.2 lakhs in FY25. EBIT from this segment surged 84.5% YoY to ₹5,351.2 lakhs, showcasing its dominance in the company’s portfolio.

Heat Transfer Equipment

Revenue rose 37.7% YoY to ₹12,215.0 lakhs, while EBIT grew 9.2% YoY to ₹2,358.3 lakhs, showing a recovery in demand and profitability in this segment.

Filtration, Drying and Other Equipment

This segment reported a 16.0% YoY decline in revenue to ₹31,391.5 lakhs. EBIT also dropped 28.6% YoY to ₹3,664.3 lakhs, reflecting headwinds in customer demand or order cycles.

Robust Order Book Provides FY26 Visibility

HLE Glascoat enters FY26 with a strong order book of ₹57,506.2 lakhs. This robust pipeline spans all major segments and reflects healthy customer demand in the chemical, pharmaceutical, and oil & gas industries. The company reported continued high levels of customer enquiries, adding to future revenue visibility.

Strategic Milestones and Operational Developments

Several strategic and operational initiatives were executed during the year:

• Acquisition of 35.56% stake in Kinam Engineering Industries was completed in September 2023. Kinam’s financials have been consolidated from that point forward.

• Kinam commenced deliveries on its first major Oil & Gas order, which is expected to complete in Q1FY26. This marks a significant step in diversification.

• Inauguration of a state-of-the-art Centre of Excellence at Anand, Gujarat, designed to accelerate innovation, enhance customer engagement, and improve technical capabilities.

• The National Company Law Tribunal (NCLT) has scheduled a final hearing in July 2025 for the amalgamation of Kinam Enterprise Pvt Ltd with HLE Glascoat, a move aimed at further integration and scale benefits.

• A dividend of ₹1.10 per equity share (55%) has been proposed for FY25.

Debt Reduction Strengthens Balance Sheet

A key highlight for FY25 was the reduction of both long-term and short-term debt by ₹4,976.5 lakhs, indicating the company’s focus on maintaining a lean and healthy balance sheet. This will support future capital allocation towards growth initiatives and R&D investments.

Leadership’s Vision and Outlook

Commenting on the results, Mr. Himanshu K. Patel, Managing Director of HLE Glascoat, said:

“FY25 marked a year of strong execution and meaningful strategic progress. The company's order book, sectoral tailwinds, and enhanced capabilities put us on a firm footing for FY26.”

He emphasized the opportunities arising from increased global outsourcing, domestic demand, and supply chain diversification, particularly in chemical and pharmaceutical industries. The company remains well-positioned to capitalize on these shifts with its application-specific engineering and manufacturing strengths.

Sectoral Tailwinds Drive Optimism

India’s chemical and pharmaceutical sectors are experiencing strong tailwinds from global and domestic shifts. With greater outsourcing, capacity expansions, and a push toward sustainability and efficiency, companies like HLE Glascoat are set to benefit from sustained demand for high-performance process equipment.

The rise of sustainable manufacturing practices, increasing adoption of advanced automation, and emphasis on localized supply chains further support the long-term growth potential for HLE Glascoat.

Key Takeaways

• FY25 PAT up 51.1% YoY, driven by profitability in glass-lined and heat transfer segments.

• EBITDA margins improved to 13.7%, reflecting operational efficiency.

• Strategic developments like Kinam integration and Centre of Excellence mark significant value creation milestones.

• A strong order book worth ₹575 crore and customer pipeline underpins growth for FY26.

Conclusion

HLE Glascoat Limited has delivered an impressive performance in FY25, marked by profit growth, strategic expansion, and operational excellence. Backed by a strong order book, sectoral tailwinds, and strategic initiatives such as Kinam’s integration and the Centre of Excellence, the company is well-positioned to scale further in FY26.

Investors, stakeholders, and industry watchers can expect sustained performance and innovation from this key player in India’s evolving process equipment manufacturing space.

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