Anawil Wire and Engineering Limited

1. Overview

Anawil Wire and Engineering Limited (AWEL) is engaged in the manufacturing of windmill towers, fabricating tubular steel structures for the wind energy sector from heavy and precision steel components customized to client specifications. The Company was incorporated in January 2021, initially focusing on weldmesh fabrication and boiler accessory assembly, before strategically pivoting into wind turbine tower manufacturing in 2023.

AWEL currently operates two manufacturing facilities — in Koppal, Karnataka, and Kutch, Gujarat — together spanning 48.05 acres with a combined annual capacity of 612 towers. The Koppal facility, with an installed capacity of 420 towers per year, can produce up to 35 towers per month, while the newer Kutch facility (operational since March 2026) adds a further 16 towers per month. The Company holds ISO 9001:2015, ISO 14001:2015/2018, and ISO 3834-2:2021 certifications for the manufacture of windmill towers and heavy structure fabrication.

Financially, AWEL has scaled rapidly: revenue from operations grew from ₹54.07 Cr in FY24 to ₹78.59 Cr in FY25 and ₹143.27 Cr in FY26, with PAT rising from ₹4.40 Cr to ₹12.31 Cr to ₹36.63 Cr over the same period. The Company's operations are heavily concentrated in Karnataka, which contributed over 93% of FY26 revenue, reflecting the geographic footprint of its primary manufacturing base and customer relationships in the wind energy original equipment manufacturer (OEM) ecosystem. Management notes that there are no directly comparable listed peers in the Indian capital markets for this specific business, underscoring AWEL's relatively specialized competitive position within windmill tower fabrication.

2. Business Model and Revenue Streams

Revenue Breakdown by Segment

AWEL's revenue (in Cr.) is overwhelmingly concentrated in a single business line — Tower Manufacturing and Fabrication — which has grown to dominate the product mix:

Geographic Concentration

Revenue is heavily skewed toward a single state, presenting a notable geographic concentration profile:

Client Concentration and Contract Model

The Company operates on a B2B, order-driven model with 100% of revenue derived from business-to-business transactions across all three fiscal years — there is no B2C or B2G exposure. Customer relationships are not governed by long-term firm commitments; instead, AWEL executes discrete purchase orders from Original Equipment Manufacturers (OEMs) of Wind Turbine Generators and renewable energy companies.

Client concentration is elevated: the top five customers accounted for 78.75% of FY26 revenue (down from 88.57% in FY25), with the single largest customer alone contributing 29.32% of FY26 revenue. Supplier concentration mirrors this pattern — the top 10 suppliers represented 90.11% of FY26 purchases, with procurement concentrated in Gujarat, Karnataka, and Maharashtra (jointly ~97.76% of raw material sourcing in FY26).

Order Book

As of March 31, 2026, AWEL held an outstanding order book of ₹359.82 Cr across 6 customers, providing revenue visibility into FY27, though management cautions this figure is not a guarantee of future revenue given the possibility of order cancellation, deferment, or modification.

Industry-Specific Operating Metrics

As a manufacturing-focused business, AWEL's key operating metrics center on installed capacity and utilization:

Tower-unit terms tell a similar story of scaling utilization: AWEL produced 114 towers in FY24, 135 in FY25, and 210 in FY26, corresponding to capacity utilization of 38.00%, 45.00%, and 48.17% respectively (on a blended-facility basis). The newly commissioned Gujarat facility's low 8.04% utilization in its first partial year reflects its March 2026 start-up rather than underlying demand weakness.

3. Products and Service Portfolio

Product Lines

AWEL manufactures tubular steel wind turbine towers, engineered and customized to meet OEM-specific technical drawings, hub-height requirements, and site conditions, with manufacturing capability extending up to 140 metres in tower height. Each tower is typically fabricated in five cylindrical sections of varying diameter and plate thickness, enabling road transport to project sites and on-site assembly via flanged, bolted joints.

Manufacturing Process

AWEL's fabrication process spans 22 distinct steps — from CNC plasma cutting and edge beveling, through rolling, longitudinal seam welding, multi-stage ultrasonic testing, flange fitting, and surface blasting, to final PU coating and assembly. The process incorporates extensive quality-control checkpoints, including a dedicated inspection facility that allows client representatives to witness testing in real time, supporting AWEL's positioning around consistent, specification-compliant delivery.

Capacity Profile

Raw material procurement is dominated by Mild Steel (M.S.) plates, with cost of materials consumed at ₹47.32 Cr in FY26 (30.09% of FY26 revenue from operations, per the RHP's cost-of-goods-sold disclosure), sourced almost entirely (99.75% in FY26) from domestic suppliers.

4. Key Business Strengths

• In-house, quality-certified manufacturing base: AWEL operates ISO 9001, ISO 14001, and ISO 3834-2–certified facilities equipped with an extensive testing suite (ultrasonic flaw detection, MPI, spectrometry), supporting consistent product conformance.
• Sizeable and growing order book: A ₹359.82 Cr order book as of March 2026, spread across 6 customers, provides forward revenue visibility, even though it is not a guarantee of realized future sales.
• Strategically located dual-facility footprint: Facilities in Karnataka and Gujarat sit within India's two largest wind-potential states, reducing logistics costs and positioning AWEL close to key demand centers.
• Rapid, high-margin financial scaling: Revenue nearly doubled year-on-year in both FY25 and FY26, with PAT margin expanding from 8.12% (FY24) to 25.57% (FY26), reflecting strong operating leverage as utilization has risen.
• Limited direct listed competition: Management identifies no directly comparable listed peer in India, suggesting a relatively differentiated niche within windmill tower fabrication, though this also limits external benchmarking for investors.

5. Future Growth Strategy

• Capacity expansion in progress: The new Kutch, Gujarat facility (operational since March 2026, 60,000 MTPA installed capacity) is intended to materially increase AWEL's addressable production beyond the existing Koppal base.
• Operational cost efficiency: Management intends to pursue economies of scale, in-house manufacturing of internal kits (reducing external procurement dependency), and logistics optimization (including owned-trailer transport) to compress unit costs as utilization climbs.
• Consistent quality and specification adherence: Continued alignment with ISO 1090-2 and ISO 3834-2 standards, alongside dedicated client inspection facilities, is positioned as a lever for repeat-order retention from OEM customers.
• Participation in India's wind energy expansion: Management points to the Government of India's target of 100 GW installed wind capacity by 2030 (part of a broader 500 GW non-fossil-fuel target) as a structural demand tailwind for the sector AWEL serves.
• Deployment of Fresh Issue proceeds toward deleveraging: A substantial share of Fresh Issue proceeds (₹115.00 Cr) is earmarked for repayment/pre-payment of existing borrowings, which management frames as supportive of future financial flexibility and capacity for further investment.