Synopsis: Abha Power and Steel received a Rs 2.74 crore order for casting supplies from a domestic EPC player, increasing its order book to Rs 21.5 crore and improving revenue visibility. The monthly contract reflects steady railway and infrastructure demand and core operations growth.
This inflow expands the company’s total active order book to approximately Rs 21.50 crores as of June 15, 2026. The transaction is structured completely at arm’s length, with zero promoter or promoter-group interest in the awarding entity, mitigating related-party execution risks.
Abha Power and Steel continues to build momentum in its core industrial and railway-linked business, supported by a steady pipeline of contracts and a growing order book. The latest development reflects ongoing traction in its casting operations, highlighting the company’s ability to maintain consistent demand in infrastructure-driven segments while gradually strengthening its execution visibility and market presence.
Abha Power and Steel Limited is currently trading at Rs 28.3 after yesterday’s closing price of Rs 27.7, having a market cap of Rs 52.6 crore. The stock opened at Rs. 27.90. The current market capitalisation of the company is Rs 51.8 crore, with a price-to-earnings ratio of 21.4 times, which is slightly higher than the peer median of 27 times.
The contract structure reflects a working capital-efficient execution model, with a rolling monthly supply mechanism enabling steady billing cycles and faster cash conversion. Revenue realization remains contingent on standard quality inspections and technical approvals, limiting rejection risk and reducing the likelihood of inventory-related losses.
On the strategic front, the order is a testament to Abha Power’s diversification beyond government-led demand, showing momentum in private B2B industrial segments while keeping a healthy customer mix.
Revenue Visibility
The strong near-term revenue visibility with the expanded order book of ₹21.5 crore supported by deep integration of Abha Power in the Indian Railways ecosystem. With its SG iron foundry infrastructure, designed for railway-grade components, the company is well-placed to tap into demand from transport-linked infrastructure projects regularly.
The growing backlog also indicates a gradual market share gain in niche casting segments supported by broader domestic CapEx momentum across infrastructure and industrial corridors, enabling sustained demand visibility beyond immediate order execution cycles.
FInancials
Abha Power & Steel Ltd reported revenue from operations of Rs. 27.65 crore in H1 FY26, compared to Rs. 34.57 crore in H2 FY25 and Rs. 35.78 crore in H1 FY25. This reflects a decline in revenue by 22.92 percent as per H1 comparison and also a decline by 20 percent while comparing H1 FY26 vs H2 FY25.
Net profit for H1 FY26 resulted in a sharp fall to Rs. 0.43 crore, compared to Rs. 2.03 crore in H2 FY25 and a decline from Rs. 3.17 crore in H1 FY25. This reflects a sharp decline in net profit by 86 percent as per H1 comparison and also a decline by 78.82 percent while comparing with H1 FY26 vs H2 FY25. Earnings per share (EPS) declined drastically to Rs 0.23 from Rs 1.09 in H2 FY2025. In terms of return ratios, the company’s ROCE and ROE stand at 7.01 percent and 4.72 per cent, respectively, and its debt-to-equity ratio is low at 0.37 times.
Infrastructure Moat
The contract underlines Abha Power’s strong alignment with its existing manufacturing capabilities and its two foundry infrastructures – SG iron and steel – to offer specialised industrial castings without the need for incremental capital investment. The fully integrated ISO-certified facility enables efficient scale-up so that additional volumes can be absorbed without operational disruption or CapEx burden.
From a strategic perspective, the order aligns with the company’s move into private B2B segments outside its traditional railway base and testifies to the cross-industry applicability of its products. At the same time, the captive 3 MW solar power plant provides structural cost benefits by de-risking energy price volatility and supporting margin stability as order volumes scale.
The casting manufacturer Abha Power and Steel Limited (APSL) serves Indian Railways, steel, cement, mining, and power in domestic and international markets. The ISO-certified Bilaspur facility houses two foundries SG iron and steel and a 3 MW captive solar plant for cost efficiency. With its quality and customised solutions, APSL has grown steadily. Since its inception in 2004, it has expanded its capabilities and positioned itself as a reliable supplier in infrastructure-linked industries.
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