Frontier Springs Ltd

- The company is not planning any significant fundraising through debt or equity in the near term. - After the current Rs. 15 crore CAPEX planned for FY'26, only a small amount of around Rs. 2-3 crore additional investment might be required till they reach Rs. 500 crore revenue by FY'27. - Management is focused on utilizing internal cash and investments (mutual funds, equity market) rather than raising fresh funds. - No plans for stock split, bonus issue, or other corporate actions related to equity fundraising at present. - The company aims to maintain healthy cash reserves and continue investing operational cash flows into business expansion and capacity enhancement.

- Current year planned CAPEX: Rs. 15 crore to expand capacity across all three divisions—coil spring (Rs. 5-6 crore), air spring (Rs. 4-5 crore), and forging (Rs. 2-3 crore). - The CAPEX aims to increase utilization from current ~70% to about 80% upon completion. - After the Rs. 15 crore CAPEX, minimal additional investment (around Rs. 2-3 crore) is anticipated until reaching Rs. 500 crore revenue in FY'27. - Investments include new and modernized machines to address bottlenecks and improve production capacity and quality. - Strategic focus on high-value forging items, expansion in air spring capacity, and strengthening coil spring capacity. - Plans to leverage partnership with Contitech Germany for air springs with technical know-how import. - No immediate plans for stock splits or bonuses; working towards NSE listing complying with minimum requirements.

- The company aims to achieve Rs. 375 crore revenue in FY'26 and Rs. 500 crore in FY'27. - Capacity utilization is targeted to move from current ~70% to around 80% post Rs. 15 crore CAPEX. - After the Rs. 15 crore CAPEX, only a small investment of Rs. 2-3 crore expected until reaching Rs. 500 crore revenue. - The air spring market share aims to increase from 25% to 30% in FY'26 and FY'27. - Order book was Rs. 150 crore on April 1, growing to Rs. 250 crore with ongoing tenders and expected Rs. 50 crore more by June. - Demand driven by Indian Railways’ increased production of LHB coaches (~6,000 annually), requiring approx. 24,000 air springs yearly. - The company emphasizes high-margin, value-added products to sustain 21%-23% EBITDA margins amid growth. - Replacement market for air springs and forging high-value segment are also growing areas.

- The management is confident of sustaining and improving EBITDA margins from the current ~21% to 22-23% by focusing on high value-added products like air springs and forgings. - Revenue is targeted to grow from Rs. 231.34 crore in FY'25 to Rs. 375 crore in FY'26, and further aiming Rs. 500 crore by FY'27. - Capacity utilization is currently around 80% and expected to increase with Rs. 15 crore CAPEX in FY'26, with only minimal further investment needed (~Rs. 2-3 crore) until Rs. 500 crore revenue is reached. - EBITA for Q4 FY'25 stood at Rs. 16.75 crore with a margin of 23.9%, indicating strong quarterly operating earnings growth. - Profit after tax increased significantly by 130.89% year-on-year in Q4 FY'25 and 166.93% for full year FY'25, showing robust profitability growth expectations. - Management remains conservative with targets but expects consistent double-digit profit growth supported by capacity expansion and value addition.

- As of April 1, the order book stood at approximately Rs. 150 crore. - Within two months into the financial year, the order position increased to Rs. 200-250 crore. - The company recently secured Rs. 100 crore orders from RCF and MCF. - Another Rs. 50 crore order is expected by the end of June, currently under negotiation with the company in the L1 position. - Approximately Rs. 100 crore from the existing order book is expected to be executed in Q1. - The total current and pipeline orders cumulatively amount to around Rs. 250 crore. - The company is confident of achieving Rs. 375 crore revenue for the financial year, supported by ongoing and upcoming tenders worth Rs. 100-150 crore. - There is a continuous inflow of tenders in the pipeline, maintaining a strong order book for sustained business growth.