Innomet Advanced Materials Ltd. (INNOMET)
SME CapMetals stocks · SME cap · NSE
Innomet Advanced Materials Ltd. is a leading Indian manufacturer of specialty ferrous & non-ferrous metal powders and Tungsten Heavy Alloys (THA). It provides critical sector solutions for Aerospace, Defence, Energy, and Radiation Shielding, backed by ISO/AS certifications and a successful 2024 IPO.
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, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
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 · 2/100PAT -124% YoY · margin compression · Rev +158% YoY · +29% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹30.3 Cr | +158.1% | +28.9% |
| EBITDA | ₹1.4 Cr | -19.2% | -68.3% |
| Operating margin | 4.5% | -489 bps | -1365 bps |
| PAT | ₹-0.4 Cr | -123.5% | -121.8% |
| PAT margin | -1.4% | -234 bps | -1003 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
Innomet reported strong FY26 revenue growth of 66% YoY to ₹53.86 crore, driven by tripling exports. However, EBITDA margin declined to 10.4% (vs 15.6% in FY25) and PAT fell 16% YoY to ₹1.57 crore, impacted by rising copper, base metal, and tungsten prices.
While revenue growth was robust, significant margin compression due to commodity price increases raises concerns about profitability and pricing power. The strong order book and strategic acquisitions are positive, but the ability to pass on costs needs monitoring.
Boost Exports
Intensive international marketing efforts on the back of aerospace certification and capitalizing on China-plus-one strategy.
Expand Product Portfolio
Swastik Tungsten acquisition, commissioning of 50 kg gas atomizer, and approvals for products like camera bodies and CASKs by DAE.
Advanced Powder Manufacturing
Collaboration with IIT Hyderabad under a DRDO-supported project to enhance advanced powder manufacturing capabilities.
High-Growth Strategic Materials
Exploring high-growth strategic and defence materials as part of the long-term vision.
Swastik Tungsten Acquisition
Acquired 57.5% stake in Swastik Tungsten Private Limited (120 tonnes PA installed capacity) in Feb 2026 for ₹1.5 crore.
IIT Hyderabad Collaboration Facility
DRDO-funded project to develop a 100kg premium metal powder manufacturing facility, India's largest indigenous clean metal/alloy powder unit, producing 200-250 tonnes annually over three years.
50 kg Gas Atomizer
A 50 kg gas atomizer to be commissioned soon, which will add to revenues with better margins.
Strong Export Growth
Exports tripled in FY26, marking a clear inflection point for Innomet.
Aerospace Certification
Granted AS9100D aerospace certification for THA division, enhancing global credibility and enabling new defence and aerospace opportunities.
Strategic Backward Integration
Acquisition of Swastik Tungsten secures raw material supply and opens a standalone revenue vertical for tungsten carbide products.
Government Support for R&D
DRDO-supported project with IIT Hyderabad for advanced powder manufacturing capabilities.
Global Geopolitical Uncertainties
Management noted 'Amid global geopolitical uncertainties, we delivered strong growth in FY26'.
Commodity Price Volatility
EBITDA margin impacted by increase in copper and base metal prices along with tungsten, which rose nearly 5x over the last year.
Input Cost Inflation
Significant increase in copper, base metal, and tungsten prices led to a 5.15 percentage point drop in EBITDA margin YoY.
Execution Risk of New Projects
Successful commissioning and ramp-up of the 50kg gas atomizer and the 100kg IIT Hyderabad facility are crucial for future growth.
Integration of Acquired Entity
Successful integration of Swastik Tungsten is needed to secure raw material supply and realize new revenue streams.
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 document presents full-year financial results for FY26 compared to FY25, making year-over-year comparison the most relevant for assessing annual performance and growth trends.
Revenue from Operations
₹53.86 crore in FY26, up 66% YoY from ₹32.52 crore in FY25.
EBITDA Margin
10.41% in FY26, down from 15.56% in FY25.
PAT Margin
2.92% in FY26, down from 5.73% in FY25.
EPS
₹1.22 in FY26, down 26% YoY from ₹1.64 in FY25.
Inflection Point for Growth
Management believes FY26 marks a clear inflection point, with strong revenue growth and tripling exports.
Strategic Acquisitions for Integration
Acquired Swastik Tungsten to secure long-term supply and strengthen backward integration, opening new revenue verticals.
Robust Order Book
Current order book of over ₹25 crore in the first two months of FY27 is already close to half of last year’s revenue.
Focus on Value-Added Growth
Collaboration with IIT Hyderabad will enhance advanced powder manufacturing capabilities and support future value-added growth.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin | 10.41% in FY26 | Improvement in margins through cost pass-through or stable commodity prices in subsequent quarters. |
| Order Book Conversion | >₹25 Cr (FY27 initial) + ~₹15 Cr (Israel order) | Timely execution of current orders and further growth in the order book for sustained revenue. |
| Swastik Tungsten Contribution | Acquired Feb 2026 | Tangible contribution to revenue and raw material security from the acquired entity. |
| Gas Atomizer Commissioning | 50kg atomizer 'soon', 100kg facility over 3 years | Adherence to commissioning timelines and revenue contribution from new advanced manufacturing facilities. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
73Bullishfull bull SMA stack · SMA20 +32.2% / mo · RSI overbought · MACD + · near 52W high · sector +2.7pp vs Nifty (3M)
Technical chart
INNOMETdaily · 1Y · AUTO+310.2%Daily technical trend read
Bullish setupTrend is constructive — long-term uptrend intact. RSI 96.
- Price > SMA20 > SMA50 > SMA200 — full bullish stack.
- SMA20 rising (~24.4% over last month) — short-term momentum positive.
- RSI(14) at 96 — overbought zone; risk of mean reversion.
- MACD above signal, histogram expanding — bullish momentum building.
- Within 3% of 52-week high — testing resistance.
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 27 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 27 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Growth contributes 17/25 to the score.
- Balance sheet contributes 8/15 to the score.
Main drags
- Penalty bucket subtracts 4 points.
- Fair-value margin of safety is negative at -662.8%.
- Valuation is weaker at 0/30; 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: +0 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 23rd percentile of the scored universe and 23rd percentile within Metals. Main check: financial discipline is weak at 18/100.
Mixed Trust Lite: Promoter holding is 55%. Key concern: Only 1 years of positive FCF.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Metals: 23rd pctile, median 70 · SME: 24th 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 55%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.3%.
Trust risks
- ▸Only 1 years of positive FCF.
- ▸ROCE is low at 5.7%.
- ▸ROE is low at 3.7%.
- ▸ROCE trend is -5.5%.
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
- 233.00
- P/B
- 8.49
- EV/EBITDA
- 45.94
- Market Cap
- 365.00Cr
Profitability
- ROE
- 3.73%
- ROCE
- 5.68%
- ROA
- 2.54%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 34.00%
- EPS 5Y
- 51.00%
- Revenue 3Y
- 32.00%
- EPS 3Y
- -21.00%
Balance Sheet
- Debt/Equity
- 0.35
- Interest Coverage
- 6.59×
- Altman Z
- 8.09
- Book Value
- 33.20
Cash Flow
- FCF Yield
- 0.34%
- FCF Positive Y
- 1/5
- OCF
- 9.26 Cr
- EPS TTM
- 1.21
Shareholding
- Promoter Hold
- 55.02%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 100%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Metals, ranked by similarity
Peers
Business-comparable names in Metals, ranked by similarity
Peers
Business-comparable peers in Metals — 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.