Admach Systems Ltd has secured a purchase order worth Rs 7.92 crore, including GST, from a listed domestic steel-sector company for the supply of steel bar processing and non-destructive testing (NDT) equipment. The order is scheduled for execution within 26 weeks from the purchase-order date.
The contract increases Admach Systems’ disclosed order book to Rs 76.25 crore, including GST, expanding its project pipeline for customised industrial machinery, automation and inspection systems.
Steel Inspection and Processing Equipment
The new order aligns with Admach Systems’ focus on specialised machinery and testing equipment for industrial applications. The Pune-based company serves sectors including steel, defence, nuclear energy, aerospace and automotive manufacturing.
Within the steel industry, its activities include downstream processing, finishing, inspection and packaging applications. The latest contract adds to its work in equipment used to process and inspect steel bars.
The order book of Rs 76.25 crore is higher than the approximately Rs 65 crore pipeline cited by management in its FY26 commentary, according to the supplied announcement.
Order Value and Financial Performance
The newly secured contract is equivalent to approximately 11.5% of the company’s standalone revenue from operations of Rs 68.91 crore in FY26. The comparison is indicative because the order value includes GST, while reported revenue may not have the same tax treatment.
Admach Systems reported a 29.14% year-on-year increase in standalone revenue from operations in FY26. Profit after tax rose 58.87% to Rs 10.01 crore during the same period.
Payment Terms and Execution Schedule
The contract includes a milestone-based payment structure intended to cover different stages of execution:
20% of the basic order value: Payable upon submission of an advance bank guarantee.
70% of the basic order value, plus the full tax amount: Payable against inspection and submission of a proforma invoice.
Remaining 10% of the basic order value: Payable after successful commissioning and submission of a performance bank guarantee.
The performance bank guarantee will remain valid for 12 months from commissioning or 18 months from dispatch, whichever occurs earlier.
The company has stated that its promoters, promoter group and group companies have no interest in the entity awarding the contract. It has also confirmed that the transaction does not constitute a related-party deal.
The 26-week execution period places delivery and commissioning within a defined project timeline, while the payment milestones link a substantial portion of the contract value to inspection and commissioning requirements.
