Admach Systems wins Rs 7.92 crore steel-equipment order, order book rises to Rs 76.25 crore

Admach Systems Ltd has secured a purchase order worth Rs 7.92 crore, including GST, from a listed domestic steel-sector entity for the supply of processing and non-destructive testing equipment used for steel bars.

The order is to be executed within 26 weeks from the purchase-order date. It lifts the company’s stated Order Book to Rs 76.25 crore, including GST, providing a higher disclosed project pipeline than the approximately Rs 65 crore order book cited by management in its FY26 commentary.

The latest contract is aligned with Admach’s core business in customised industrial machinery, automation and inspection systems. The Pune-based company supplies special-purpose machines and testing equipment to sectors including steel, Defence, nuclear energy, Aerospace and automotive manufacturing. In the steel industry, its focus has been on downstream processing, finishing, inspection and packaging applications rather than the hot-end steelmaking process.

The order is meaningful relative to Admach’s recent operating scale. Its standalone revenue from operations rose 29.14 per cent year-on-year to Rs 68.91 crore in FY26, while profit after Tax increased 58.87 per cent to Rs 10.01 crore. The newly announced order, which includes GST, is equivalent to about 11.5 per cent of FY26 revenue, although the comparison is indicative because reported revenue and the order value may not have identical tax treatment.

The payment structure may provide some support for project funding during execution. Under the agreed terms, Admach will receive 20 per cent of the basic order value upon submission of an advance Bank guarantee. Another 70 per cent of the basic value, together with the full tax amount, will be payable against inspection and submission of a proforma invoice. The remaining 10 per cent of the basic value will be released after successful commissioning and submission of a performance bank guarantee.

The performance guarantee will remain valid for 12 months from commissioning or 18 months from dispatch, whichever is earlier. The company has also said that its promoters, promoter group and group companies have no interest in the entity awarding the contract, and the transaction is not a related-party deal.

The payment terms are relevant because Admach operates a project-led engineering model that requires procurement, manufacturing, testing and commissioning before the final payment is received. In FY26, the company reported negative operating cash flow of Rs 4.53 crore despite higher profitability, as trade receivables increased and trade payables declined. Management had attributed working-capital volatility partly to the timing of dispatches and customer clearances.

Admach has been investing in greater in-house manufacturing through equipment such as CNC laser-cutting and press-brake machines. Management has said the programme is intended to reduce outsourcing and transport costs, improve execution speed and support margins, though the benefits depend on commissioning and utilisation of the new equipment.

As of 3:29 p.m. on October 15, 2026, Admach Systems shares were trading at Rs 520. The price matched the stock’s supplied 52-week high of Rs 520, compared with a 52-week low of Rs 180.

The immediate focus will be delivery of the steel-sector order within the stipulated 26-week period, particularly as order execution, receivable collection and commissioning remain important determinants of cash conversion for the company’s customised machinery business.

Disclaimer: The article is for informational purposes only and not investment advice.