Are India’s Core Sectors Powering a Broader Industrial Comeback?
About India’s Multi-Sector Performance in Q2 FY26
India’s industrial revival in FY26 is taking shape through a diversified base — from defense and engineering to green energy and infrastructure. HAL, Oriental Rail Infra, Vascon Engineering, and TruAlt Bioenergy’s results reflect how India’s manufacturing landscape is balancing growth with structural transformation.
While order books are robust, companies continue to navigate cost challenges and policy-driven transitions across renewable, infra, and industrial manufacturing verticals.
HAL Q2 FY26 – Margins Miss, Demand Intact ✈️
HAL posted a steady performance with a 10% YoY increase in revenue, though margins fell short due to cost escalations and production delays. Management expects margin recovery in H2FY26.
- Net Profit: ₹1,669 Cr vs ₹1,510 Cr YoY (↑10.5%)
- Revenue: ₹6,628 Cr vs ₹5,976 Cr YoY (↑10.9%)
- EBITDA Margin: 23.5% vs 27.44% YoY (↓394 bps)
Despite short-term margin compression, HAL remains a key beneficiary of India’s expanding defense capex and indigenization drive.
Oriental Rail Infrastructure – Margins Improve Despite Revenue Dip 🚆
Oriental Rail Infra reported marginal profit growth amid a 28% YoY revenue decline. Improved operating efficiency helped expand margins sharply by nearly 480 basis points.
- Revenue: ₹133 Cr (↓28.5% YoY)
- Net Profit: ₹10.6 Cr (↑1.3% YoY)
- EBITDA Margin: 16.24% vs 11.45% YoY (↑479 bps)
The company’s focus on specialized rail component manufacturing and higher-margin products continues to underpin profitability.
SolarWorld Energy – Weak Quarter Amid Cost Pressure ☀️
SolarWorld reported a steep 59% YoY decline in net profit as revenue dropped marginally and raw material inflation affected margins.
- Net Profit: ₹9.2 Cr (↓58.6% YoY)
- Revenue: ₹137.8 Cr (↓2.9% YoY)
- EBITDA Margin: 11.02% vs 20.92% YoY (↓990 bps)
Management remains focused on diversifying into rooftop and EPC projects to offset weakness in module demand.
Vascon Engineering – Strong Order Book and Steady Performance 🏗️
Vascon delivered consistent results backed by its robust ₹2,800 Cr order book, with over 70% contribution from government projects ensuring revenue stability.
- New Orders: ₹386 Cr EPC projects added
- Order Book: ₹2,800 Cr (2.8x FY25 EPC revenue)
- Real Estate Pipeline: ₹1,100+ Cr upcoming launches
Its diversified EPC and real estate presence continues to strengthen its revenue visibility for FY26 and beyond.
TruAlt Bioenergy – Strategic Shift to Year-Round Operations 🌾
TruAlt Bioenergy announced a major operational transformation, integrating dual-feed operations and expanding ethanol and CBG capacities. EBITDA margins expanded significantly due to process efficiency gains.
- Revenue: ₹20.7 Cr (+659% YoY)
- EBITDA Margin: 68.3% (↑130%)
- PAT: ₹9.7 Cr (Strong structural turnaround)
The company’s long-term strategy to enhance capacity utilization and reduce seasonality could make it one of the leading integrated biofuel firms in India.
Asian Granito – Earnings Rebound on Cost Controls 🧱
Asian Granito reported a strong Q2 FY26 turnaround with over 10x increase in net profit and significant improvement in EBITDA margins.
- Net Profit: ₹16.2 Cr (↑1057% YoY)
- Revenue: ₹406 Cr (↑8% YoY)
- EBITDA Margin: 9.0% vs 3.9% (↑508 bps)
The company’s focus on higher-value vitrified tiles and exports has begun yielding visible results in margin expansion.
Investor Takeaway
Multi-sector resilience is driving India’s industrial story in FY26. While HAL and Vascon show execution leadership, companies like TruAlt and Asian Granito underline how innovation and efficiency remain vital for margin growth.
Nifty and Bank Nifty Expert Gulshan Khera, CFP®, who is a SEBI Regd Investment Adviser.
Read more detailed analysis at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
