Abha Power and Steel Ltd. (ABHAPOWER)
SME CapPower stocks · SME cap · NSE
Abha Power and Steel Ltd., with decades of expertise in iron and steel manufacturing, delivers precision-engineered castings and specialty steel solutions. The company operates a 14,400 MTPA plant in Bilaspur, Chhattisgarh, with a 3 MW captive solar power plant, trusted for quality, reliability, and industrial excellence.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend argues for patience, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100Rev -10% YoY · PAT -82% YoY · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹27.7 Cr | -9.8% | -20.0% |
| EBITDA | ₹1.8 Cr | -67.1% | -50.1% |
| Operating margin | 6.4% | -868 bps | -389 bps |
| PAT | ₹0.4 Cr | -81.7% | -78.8% |
| PAT margin | 1.6% | -730 bps | -431 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
H2 FY26 revenue declined 20% QoQ to INR 276.46 Cr, with EBITDA margin compressing to 6.45% from 10.32% QoQ. This was driven by a 20% price correction in the key 'Insert' segment, raw material cost escalation from geopolitical disruptions, and muted pricing power on re-orders.
H2 FY26 results show significant margin compression and revenue decline due to external factors like geopolitical raw material shocks and a sharp price correction in a key product segment. Management is implementing automatic escalation clauses and targeting higher utilization with new capacity, but the immediate financial impact is severe.
Indian Railways
Union Budget 2026–27 allocates a record ₹2,93,030 crore to Indian Railways, driving demand for casting-intensive items.
Diversified Industrial Exposure
NMDC, Coal India, UltraTech, and Adani capacity expansions drive demand in mining, cement, and power infrastructure.
Heavy Engineering PLI
PLI-driven OEM growth and import substitution tailwinds create opportunities in heavy engineering.
China+1 Sourcing
Global sourcing realignment is opening new and expanding export opportunities for Indian casting manufacturers.
Electric Arc Furnace (EAF)
Already fully operational.
6MT Heat Treatment Furnace
Already fully operational.
Automated Moulding Line
In final stages of completion, targeting August 31, 2026 commissioning.
20MT Heat Treatment Furnace
In final stages of completion, targeting August 31, 2026 commissioning.
Government Infrastructure Spend
Union Budget 2026–27 allocates record ₹2,93,030 crore to Indian Railways, driving casting demand.
Policy-Anchored Demand
NIP, PM Gati Shakti, and PLI schemes commit multi-trillion-rupee capital into infrastructure and manufacturing.
Resilient Core Demand
Core demand pipelines remain robust; order delays are logistical, not structural market loss.
Geopolitical Disruptions
Raw material input costs experienced sudden, sharp escalation driven by supply chain shocks from US-Iran conflict.
Insert Segment Price Correction
Key core component ('Insert' segment), ~50% revenue share, experienced a sharp 20% price correction in the open market.
Muted Pricing Power
Current immediate market environment has restricted immediate price hikes on standard baseline re-orders.
Order Deferrals
Revenue dip aggravated by localized timeline shifts and temporary order delivery delays.
Raw Material Price Volatility
Raw material input costs experienced sudden, sharp escalation due to geopolitical conflict.
Fixed-Price Contracts
Due to fixed-price structures on legacy order contracts, unexpected raw material cost hikes could not be immediately passed through.
Underutilization
Historically bottlenecked by slow, manual downstream processes, leading to underutilized furnace capacity.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The presentation provides H2 FY25, H1 FY26, and H2 FY26 data, allowing for both sequential (QoQ) analysis of recent trends and year-on-year (YoY) comparison for broader performance context. Sequential momentum is critical given recent price and cost pressures.
Revenue from Operations
H2 FY26: INR 2,764.60 Lakhs (down 20% QoQ from H1 FY26: INR 3,456.91 Lakhs; down 22.7% YoY from H2 FY25: INR 3,578.27 Lakhs).
EBITDA Margin
H2 FY26: 6.45% (down from H1 FY26: 10.32% and H2 FY25: 15.12%).
PAT Margin
H2 FY26: 1.55% (down from H1 FY26: 5.88% and H2 FY25: 8.86%).
Production Tonnage (Steel Foundry)
Maintained operational stability with production tonnage tracking entirely flat and consistent from H1 FY26 into H2 FY26.
Automatic Escalation Clauses
All newly booked contractual orders now explicitly feature built-in automatic raw material price escalation clauses.
Target Capacity Utilization
Elimination of manual processes paves a clear path to achieving a capacity utilization level of 80% or above.
Strategic Railway Entry
Actively targeting high-volume, varied-weight products for the Indian Railways to optimize new capacity.
RDSO Certification Pipeline
Multiple product applications submitted to RDSO, with one key product line in final stages of approval.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Capacity Utilization | Historically bottlenecked by manual processes. | Achievement of 80%+ utilization post-automation commissioning. |
| Raw Material Price Stability | Sudden, sharp escalation due to geopolitical conflict. | Stabilization of input costs and effectiveness of new escalation clauses. |
| RDSO Approvals | One key product line in final stages of approval. | Formal approval and commercialization of new railway products. |
| Order Book Execution | Order deferrals impacted H2 FY26 revenue. | Recovery in volume dispatch and conversion of existing order book into revenue. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
26Bearishfull bear SMA stack · SMA20 -4.7% / mo · MACD + · near 52W low
Technical chart
ABHAPOWERdaily · 1Y · AUTO-16.6%Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend down. RSI 47. Wait for confirmation.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~4.9% over last month) — short-term momentum negative.
- RSI(14) at 47 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 47% off 52W high · 7% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 32 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 32 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 37.4%.
- Balance sheet contributes 9/15 to the score.
Main drags
- Penalty bucket subtracts 7 points.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Cash flow is weaker at 1/10; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 18th percentile of the scored universe and 21st percentile within Power. Main check: financial discipline is weak at 30/100.
Mixed Trust Lite: Promoter holding is 72.5%. Key concern: Only 1 years of positive FCF.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Power: 21st pctile, median 65 · SME: 19th pctile, median 64
4 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 72.5%.
- ▸Promoter pledge is zero.
Trust risks
- ▸Only 1 years of positive FCF.
- ▸ROCE is low at 7%.
- ▸ROE is low at 4.7%.
- ▸ROCE trend is -7.5%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 18.60
- P/B
- 0.86
- EV/EBITDA
- 10.00
- Market Cap
- 45.70Cr
Profitability
- ROE
- 4.72%
- ROCE
- 7.01%
- ROA
- 2.88%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 10.00%
- EPS 5Y
- 10.00%
- Revenue 3Y
- 4.00%
- EPS 3Y
- 21.00%
Balance Sheet
- Debt/Equity
- 0.37
- Interest Coverage
- 3.15×
- Altman Z
- 2.58
- Book Value
- 28.70
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 1/5
- OCF
- 8.22 Cr
- EPS TTM
- 1.32
Shareholding
- Promoter Hold
- 72.52%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 7%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Power, ranked by similarity
Peers
Business-comparable names in Power, ranked by similarity
Peers
Business-comparable peers in Power — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.