APHMEL posts record Rs 23.33 crore profit, turns around fortunes under Singareni
Hyderabad, Sept 21 (TNT): Andhra Pradesh Heavy Machinery and Engineering Limited (APHMEL), once facing the prospect of closure with accumulated losses of about Rs 21 crore, has registered a record net profit of Rs 23.33 crore in 2025-26, taking its cumulative profits to Rs 60.85 crore, according to officials.
APHMEL, a subsidiary of Singareni Collieries Company Limited (SCCL), has recorded profits for three consecutive years, with net earnings of Rs 1.05 crore in 2023-24, Rs 9.87 crore in 2024-25 and Rs 23.33 crore in 2025-26.
The company, established in 1976 at Kondapalli near Vijayawada (Andhra Pradesh) , had faced severe financial difficulties due to inadequate orders and high manpower costs.
It was referred to the Board for Industrial and Financial Reconstruction (BIFR) in 1992 and had accumulated losses of around Rs 21 crore by 1997-98.
Singareni began supporting APHMEL by placing orders for machinery and spare parts in 1994 and subsequently invested in the company and assumed management responsibilities.
With a total investment of Rs 14.08 crore, SCCL became the principal stakeholder with an 81.54 per cent shareholding.
APHMEL has now expanded its customer base beyond Singareni and is supplying machinery and components to organisations including BHEL, GENCO, NMDC and RINL.
Officials attributed the improvement in financial performance to securing new orders, diversification of products, cost-control measures and productivity improvements under Singareni’s management.
The company is also focusing on reducing operational costs and has established a 300-kW solar power plant at its premises.
The plant, estimated to generate around 1,200 kWh of electricity a day, is expected to reduce electricity expenditure by about Rs 2 lakh a month.
The investment of around Rs 1.24 crore is expected to be recovered in about five years through savings in power costs.
The company is now exploring opportunities to expand its business and emerge as a national-level heavy engineering enterprise, officials said.
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