COMPANY OVERVIEW
Established in 1986 and rebranded in 2016, Goodluck India Ltd manufactures a diverse range of products including engineering structures, auto and precision tubes, pipes, coils, and sheets. The company operates across both domestic and international markets, exporting to over 100 countries with strong exposure to developed markets like the US, Europe, Australia, and Southeast Asia.
BUSINESS SEGMENTS
Goodluck operates across four primary divisions:
1. Engineering Structures and Fabrication
The company is a Category-1 supplier of heavy-duty fabricated components used in infrastructure projects such as power transmission, solar structures, bridges, and the iconic bullet train project. As of FY25, the company is nearing completion of its first bullet train order of 22,000 tons and has secured a second order worth ₹52 crore, scheduled for delivery by Jan–Feb 2026. Solar and metro project demand remains strong, with one year of visibility in this segment. Margins remain healthy in the 9–10% range.
2. Forging
The forging division continues to deliver strong growth, especially from oil & gas, dairy, and chemical segments. The revenue run-rate has scaled to ₹500–600 crore from ₹300–350 crore earlier. The division benefits from export traction, including sub-sea component demand and growing European orders. EBITDA margins stand at 14–15%. Capacity stands at 30,000 MTPA.
3. Precision Pipes & Auto Tubes
This division, with 170,000 MTPA capacity, focuses on high-precision ERW/CDW tubes used in auto, construction, and aerospace. The recently completed CDW plant (50,000 MTPA) is already operating at 40% utilization and is expected to reach 60–80% by September 2025. Margins here are 13–14%. Products like hydraulic pipes for construction equipment are import substitutes and enjoy global demand.
4. CR Coils, Pipes & Hollow Sections
This is a commodity-driven segment with a lower margin profile (3.5–4%). The company plans to gradually shift from GI pipes to tracker tubes (used in solar), which offer better EBITDA/ton. Margins in tracker tubes are estimated at ₹7,500–8,000/ton versus ₹2,500 in GI pipes.
MANUFACTURING FACILITIES
The company operates from Sikandrabad and Dadri in Uttar Pradesh, and Kutch in Gujarat. Total capacity now stands at 500,000 MTPA post the addition of the precision tube/CDW plant. The large-diameter pipe mill is operational and already seeing customer traction across domestic and export markets.
Below table shows capacity post capex across various segments.
DEFENCE SEGMENT - GAME CHANGER
The defence vertical is expected to be a structural growth lever. Trial runs for the 155mm bullet shell facility are underway in Q1–Q2FY26, with commercial production to begin in H2FY26. The plant, with a potential topline of ₹270–300 crore at full scale and EBITDA margins of over 20%, has already incurred ₹170 crore capex (out of planned ₹216 crore). Peak utilization is expected from FY27. The company has strong linkages with customers like ISRO, BrahMos, and global arm exporters. They will be developing these products domestically for the Indian government and internationally for other clients.
FINANCIALS
FUTURE OUTLOOK
Company has guided ₹4500 cr revenue guidance in FY26(excluding defence contribution) , this will be driven by increased utilization across facilities (currently ~89%) and further debottlenecking.
Further they have set ambitious target of achieving ₹7000 to ₹8000 Cr revenue in 3 to 4 years. Management has guided to increase their ROCE to 22% in the coming years.
Going ahead as they increase their share of value added products they expect their margins to expand to double digits. Of these precision pipes, auto tube and defence segments will be the major contributor adding to this margin expansion.
Export revenues (~₹1,000 crore currently) remain stable, with domestic growth taking priority.
CAPEX
Company has planned for a CAPEX of ₹216 cr of which they have completed CAPEX of ₹170 Cr. Remaining capex of ₹46 crore to be spent by FY26.
Recently they have completed their capex for Large Diameter Pipes. Going ahead once 70–80% utilization is reached in future they plan to expand this capacity.
As of now they will be incurring maintenance CAPEX and new capex guidance will be provided in H2FY26.
ORDER BOOK AND EXECUTION TIMELINE
The total confirmed order book stands at ₹1,200 crore, comprising ₹1,000 crore from the Water/Infra segment and ₹200 crore from the Industrial segment. In addition, the company has secured LOAs worth ₹800 crore, expected to be converted in FY26.
DEBT POSITIONING
Goodluck India plans to repay ₹60 crore of debt in FY26, exceeding its typical annual repayment of ₹46 crore. With a blended cost of debt at 9.5%, the company remains financially prudent. Repayments will be supported by internal accruals and recent fundraises, keeping leverage under control.
STRENGTH AND RISK
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Disclosure
This article is for educational purposes only and does not constitute investment advice. Readers should consult a SEBI-registered advisor before making investment decisions.
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