Ador Welding Q2FY26 Net Profit Increases 274% YoY to ₹25.01 Crore; Stock Surges 4.4%

Mumbai, October 15, 2025: Ador Welding Limited (NSE: ADOR, BSE: 517041) shares surged after the company announced a spectacular turnaround in its financial performance in the quarter ended September 30, 2025 (Q2FY26). The consolidated net profit of the company jumped 274% year-on-year (YoY) to ₹25.01 crore from ₹6.7 crore in Q2FY25, exhibiting robust operational efficiency and recovery in its core welding business. The company’s better cost management also supported profitability notwithstanding sustained weakness in its Flares & Process Equipment segment.

Founded in 1951 and having its headquarters in Mumbai, Ador Welding Limited is India’s premier producer of welding consumables, equipment, and automation systems. The group also has a business in Flares & Process Equipment and caters to clients from various infrastructure, energy, and manufacturing segments. Ador Welding is listed on both the BSE and NSE and has a paid-up capital of ₹17.40 crore and remains committed to innovation, operating efficiency, and value-driven growth.

Strong Financial Performance

Consolidated operating revenue of Ador Welding grew 4.4% YoY to ₹28,109 lakh in Q2FY26 from ₹26,924 lakh during the corresponding period last year. Total income improved to ₹28,541 lakh, up 4% YoY. The company posted a profit before tax (PBT) of ₹3,367 lakh compared to ₹934 lakh in the year-ago period. Net profit after tax was at ₹2,501 lakh, a huge improvement over ₹670 lakh of Q2FY25. Basic earnings per share (EPS) was at ₹14.37 compared to ₹4.92 in the previous year, a 192% increase.

The firm also recorded a good comeback, and revenue increased 11.6% from ₹25,184 lakh in Q1FY26, while total income also increased 11.1% quarter-on-quarter. Ador Welding had reported a loss of ₹395 lakh in the earlier quarter but returned to profitability in Q2FY26.

Segment-Wise Performance

The Welding division continued to be the company’s strongest revenue earner, accounting for more than 96% of overall turnover. Segment revenue was ₹27,087 lakh with EBIT of ₹4,392 lakh and capital employed of ₹37,835 lakh. The company grew, backed by consistent demand from the infrastructure, engineering, and manufacturing sectors.

The Flares & Process Equipment division reported revenue of ₹921 lakh and segment loss (EBIT) of ₹261 lakh, primarily on account of cost overruns and delay in project execution. However, management is expecting improvement in this vertical on a gradual basis as outstanding orders are completed and cost controls are tightened.

Standalone Results

On a stand-alone basis, Ador Welding recorded a net profit of ₹25.62 crore in Q2FY26 against a loss of ₹16.09 crore in Q2FY25. Topline increased 4.6% YoY to ₹28,000 lakh. EBITDA margins widened because of better cost optimization and efficient inventory management. The company also reported exceptional items worth ₹4,172 lakh pertaining to provisions for previous investments and adjustments for mergers in subsidiaries.

Strong Financial Position

As of September 30, 2025, total assets of the company were ₹72,366 lakh, as against ₹69,393 lakh as of March 31, 2025. Net worth was ₹49,251 lakh, and cash and cash equivalents were ₹2,806 lakh. Ador had a strong liquidity position with low leverage and effective working capital management. Operating cash generated in H1FY26 was ₹4,207 lakh, evidencing steady cash flow generation in the face of market volatility.

Management Commentary

A. T. Malkani, Director of Ador Welding, said the robust second-quarter performance illustrates “resilience and strategic focus on its core welding business despite one-time project cost adjustments in the Flares & Process Equipment division.” He reiterated the emphasis on the company to enhance operational efficiency, bringing delayed projects to a close, and maintaining growth in the high-margin welding segment.

Market Performance

The stock closed at ₹1,197.00 on October 15, up ₹136.35 or 12.86% for the day. The stock rose to an intraday high of ₹1,253, close to its 52-week high of ₹1,395. 1.52 lakh shares were traded with a total market capitalization of around ₹2,139.68 crore, indicating positive investor sentiment post-quarterly results.

REF: https://nsearchives.nseindia.com/corporate/ADORWELD_15102025141547_OutcomeoftheBM.pdf

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