SYNOPSIS: This market leader company, with over 50 percent market share in Filtration and Drying Equipment in India, reported 41 percent YoY revenue growth in Q3 FY26 but sharp margin pressure, with profits and EBITDA declining sequentially; order book remains healthy at Rs. 653 crore.
Shares of one of the leading manufacturers of specialised process equipment for the chemical and pharmaceutical industries in India tumbled more than 10 percent on Wednesday, after reporting muted Q3 FY26 results with a decline in net profit by 67 percent QoQ and 55 percent YoY.
With a market cap of Rs. 2,495 crores, shares of HLE Glascoat Limited were trading in the red at Rs. 359.25 on BSE, down by around 9 percent, compared to its previous closing price of Rs. 394. The stock has delivered positive returns of over 24 percent in the last one year, but has fallen by nearly 18 percent in one month.
Financial Performance Q3 FY26
HLE Glascoat Limited announced the financial results for the third quarter of FY26 on Tuesday after market hours, as per the latest regulatory filings with the stock exchanges.
For Q3 FY26, the company posted a consolidated revenue from operations of Rs. 326.56 crores, reflecting a sequential decline of around 7 percent QoQ compared to Rs. 350.77 crores in Q2 FY26. In contrast, on a year-on-year basis, revenue increased by more than 41 percent from Rs. 231 crores recorded in Q3 FY25.
Meanwhile, the net profit stood at Rs. 4.6 crore, indicating a sharp decline of more than 67 percent QoQ from Rs. 14 crores in Q2 FY26, while on a year-on-year basis, the profit was down by nearly 55 percent from Rs. 10.3 crores reported in Q3 FY25.
Operating performance deteriorated during the quarter, with EBITDA falling sharply to Rs. 24.6 crore, indicating a decline of about 39 percent QoQ from Rs. 40.2 crore in Q2 FY26, as well as of 11 percent YoY from Rs. 27.6 crores in Q3 FY25. Further, EBITDA margins contracted to 7.5 percent, down by 390 bps QoQ from 11.4 percent and 440 bps YoY from 11.9 percent. EBITDA loss incurred at the newly acquired HLE Surface Technologies GmbH and Omerastore GmbH.
The company disclosed exceptional expenses of around Rs. 3.2 crore for the quarter and Rs. 6.2 crore for 9M FY26. These primarily include transaction-related costs of Rs. 1.1 crore for the quarter and Rs. 4.2 crore for the nine months, incurred towards a business acquisition completed during the period. The exceptional charge also reflects the financial impact arising from the implementation of the New Labour Code.
Further, the company’s Board approved to undertake capital expenditure of up to Rs. 25 crores to manufacture glass-fused tanks, silos and other allied products at its existing Silvassa manufacturing campus, based on the experience and knowledge of the Omeras business acquisition
Revenue Mix, Order Book & More
For the quarter ended December 2025, Glass Lined Products remained the largest contributor, generating Rs. 170 crore, accounting for around 52 percent of total revenue. This represents a growth of about 24 percent YoY, compared to Rs. 136.7 crore in Q3 FY25.
Filtration, Drying and Other Equipment contributed Rs. 100.2 crore, forming nearly 31 percent of total revenue, and recorded a robust 41 percent YoY increase from Rs. 71 crore in the year-ago quarter.
Meanwhile, Heat Transfer Equipment vertical reported revenue of Rs. 56 crore, contributing around 17 percent to overall revenue, and witnessed a sharp 151 percent YoY growth from Rs. 22.3 crore in December 2024. As of December 2025, HLE Glascoat reported an order book of Rs. 653.4 crores and continues to receive enquiries for orders across all business segments.
Looking ahead, Managing Director Mr. Himanshu K. Patel stated that the H2 FY26 typically accounts for around 55-60 percent of the company’s annual revenues. He indicated that Omeras is expected to achieve breakeven by Q4 FY26, with more meaningful contributions likely from FY27 onwards.
The Union Budget 2026 has outlined a strong push for India’s manufacturing and pharmaceutical sectors, backed by higher capex and targeted initiatives such as the Rs. 10,000 crore BioPharma Shakti programme. For HLE Glascoat Limited, this support creates a supportive operating backdrop, improving demand visibility for specialised process equipment and enabling the company to tap emerging opportunities across both domestic and international markets.
HLE Glascoat Limited operates across key segments: filtration, drying, glass-lined equipment, and heat transfer equipment, along with exotic metal fabrication. It holds more than 50 percent market share in Filtration and Drying Equipment in India.
The company’s product range is extensive, including reactors, receivers/storage tanks, dryers, filters, columns, agitators, valves, pipes and fittings. These products are crucial for processes involving storage, reaction, heat transfer, distillation, and solid-liquid separation.
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