Goodluck India Limited (NSE: GOODLUCK) the engineering conglomerate announces 150% interim dividend as consolidated total income reaches ₹10,388.9 million; commercial production commences at defence subsidiary.
The company reported consolidated financial results for the quarter ended December 31, 2025 (Q3 FY26), characterized by significant margin expansion and the operational launch of its dedicated defence manufacturing vertical. The company’s EBITDA grew 22.3% year-over-year to ₹1,028.3 million, driven by an 8.2% increase in sales volumes and a strategic shift toward high-margin value-added products. Following the board meeting on February 13, 2026, the company declared an interim dividend of 150%, amounting to ₹3.00 per equity share.
Key Development
The primary driver for the period was the successful commencement of commercial production at the company’s subsidiary, Goodluck Defence and Aerospace Limited. This facility, inaugurated in October 2025, has completed its first order, which is currently awaiting dispatch permissions. Additionally, the company benefited from the easing of U.S. tariffs, which has improved sentiment and order visibility in the precision pipes and automobile tube export segments.
Product Highlights
Goodluck India is diversifying its engineering portfolio with a focus on high-growth “sunrise” sectors:
- Defence and Aerospace: The company secured an industrial license for manufacturing artillery shells across major calibers (105mm to 155mm). The subsidiary’s current annual capacity of 150,000 shells is slated for expansion to 400,000 shells within 12 months.
- Engineering Structures: Leveraging its completion of a previous high-speed rail project, the company is targeting participation in seven new bullet train corridors announced in the recent Union Budget.
- Precision Pipes: Expansion in automobile tube and LDP (hydraulic tube) facilities is aimed at replacing imported seamless tubes with indigenous production.
Financial Performance
For the quarter ended December 31, 2025, Goodluck India reported the following consolidated results:
- Total Income: ₹10,388.9 million, a 9.8% increase from ₹9,459.4 million in Q3 FY25.
- EBITDA: ₹1,028.3 million with a margin of 9.9%, a 101-basis point expansion over the previous year.
- Adjusted Net Profit: ₹436.8 million, up 6.0% year-over-year.
- Earnings Per Share (EPS): ₹12.83 for the quarter, compared to ₹12.12 in the prior-year period.
- Expenditure: Total expenses rose to ₹9,803.7 million. Finance costs increased 35.2% to ₹270.6 million, and depreciation rose 67.8% to ₹172.4 million, reflecting capital expenditures in the defence and auto-tube verticals.
- Balance Sheet and Volume: Total sales volume for the first nine months of FY26 reached 3,45,874 MT, up 11.0%. The company maintains a total annual capacity of 500,000 MT with a 92% annualized capacity utilization rate.
Investment Thesis (Bull vs. Bear)
Bull Case:
- High-Margin Diversification: Entry into the specialized defence and aerospace sector provides significantly higher margins and “sticky” long-term government contracts compared to commodity steel products.
- Infrastructure Tailwinds: Strong alignment with high-speed rail and bullet train corridors positions the company as a key beneficiary of government infrastructure spending.
- Operational Efficiency: Maintaining 92% capacity utilization despite massive scale-up suggests robust demand and efficient operational management.
Bear Case:
- Rising Capital Costs: Increased finance costs (up 35.2%) and higher depreciation (up 67.8%) could weigh on net profit growth if revenue from new projects is delayed.
- Execution Risk: The defence segment requires stringent regulatory dispatch permissions, and any delays in these approvals could result in inventory build-ups.
- Cyclicality: While diversifying, a significant portion of the business remains tied to the cyclical automotive and construction sectors, which are sensitive to interest rate fluctuations.
Rail Expansion
The Union Budget’s announcement of seven new high-speed rail corridors is viewed as a potential growth trigger for the company’s Engineering Structures segment. While the routes have not been detailed, the company says it is well positioned to participate, citing its on-time completion of a prior bullet-train assignment.
Management expects to target specialised packages such as super-critical bridges, station structures and customised formwork for tunnel-boring machines. The planned corridor expansion is seen as supportive of the infrastructure vertical, which is already benefiting from broader project momentum, and aligns with the company’s strategy to transition from a steel producer to a higher-value engineering solutions provider.
The company’s track record in the segment includes a $27 million letter of intent from Larsen & Toubro in 2021 for fabrication and supply of specialised bridges for a high-speed rail project, with L&T remaining a marquee client within the Engineering Structures business.
Tariff Relief
The easing of U.S. steel tariffs is expected to support volumes and margins for Goodluck India, particularly in its export-oriented Precision Pipes and Automobile Tubes segment. Lower trade barriers should improve realizations on overseas shipments and strengthen demand visibility in the coming quarters, while also lifting sentiment across global auto markets, a key end-user for the company’s higher-margin precision tube portfolio.
Given the segment’s contribution to export revenue, tariff relief is seen enhancing the company’s competitiveness with global OEM customers such as Volkswagen, BMW and Mercedes-Benz. Management views the more favourable trade environment as supportive of its push toward value-added products and an improved mix in international markets, reinforcing its broader shift from commodity steel output to specialised engineering and precision solutions.
Value Pivot
Goodluck India is pursuing a transition from a conventional steel manufacturer to a specialised engineering solutions provider, with about 57% of installed capacity now aligned to higher-margin, value-added products. Management expects this shift in mix to support profitability and improve earnings visibility over the medium term.
Forward growth is guided by order visibility in the artillery shell segment for FY27 and expanding relationships with automotive OEMs. The company plans to invest roughly ₹5,000 million to scale its defence manufacturing footprint, positioning the segment as a key contributor to future revenue and margin expansion.
Infra Tailwinds
The engineering and steel products sector continues to benefit from strong domestic infrastructure spending, with sustained momentum in railways and emerging high-speed rail projects supporting demand for specialised fabrication and engineering solutions. This capex-led environment is providing order visibility for companies exposed to structural steel, bridges, and precision-engineered components tied to large public infrastructure programs.
On the external front, the easing of global trade barriers, including U.S. tariffs on select steel products, is seen as supportive for Indian exporters of value-added engineering goods by improving competitiveness and realisations. At the same time, the Indian government’s Atmanirbhar Bharat initiative continues to encourage localisation across the defence manufacturing value chain, creating incremental opportunities for domestic suppliers of specialised components and engineered products.