Key Financial Performance (Q4 FY26 vs. Q4 FY25)

Order Intake:

  • Q4 FY26: ₹86.1 billion, up 188% YoY (Q4 FY25: ₹29.9 billion)
  • Full Year FY26: ₹147.76 billion, up 37% YoY (FY25: ₹107 billion)

Revenue:

  • Q4 FY26: ₹16.4 billion, up 42% YoY (Q4 FY25: ₹11.4 billion)
  • Full Year FY26: ₹62.1 billion, up 45% YoY (FY25: ₹42.9 billion)

Profitability:

  • Profit Before Tax and Exceptional Items (Q4 FY26): ₹4.6 billion, up 1.8x YoY (Q4 FY25: ₹2.6 billion)
  • Profit Before Tax and Exceptional Items (Full Year FY26): ₹17.1 billion, up 2.1x YoY (FY25: ₹8.2 billion)
  • Q4 FY26 EBITDA Margin: 27.2%

Balance Sheet & Cash Flow:

  • Order Backlog (as of March 31, 2026): ₹214.6 billion, up 49% YoY (March 31, 2025: ₹143.8 billion)
  • Cash & Cash Equivalents (March 31, 2026): ₹25.0 billion (March 31, 2025: ₹10.5 billion)
  • Q4 FY26 Cash Generation: ₹9.0 billion
  • Full Year FY26 Cash Generation: ₹15.8 billion
  • Debt: ₹0

Exceptional Item:

  • A one-time, non-operational provision of ₹690 million related to employee retirement benefit obligation on account of the new Wage Code was recognized for the full year. A reversal of ₹57 million occurred in the current quarter.

Royalty & Group Charges:

  • FY26: ₹1.9 billion (approx. 3% of revenue)
  • FY25: ₹1.4 billion (approx. 3.3% of revenue)

Strategic and Operational Highlights

Market Context & Strategy:

Management highlighted India's ambitious target of ~800 GW renewable energy capacity by 2035, requiring a massive build-out of transmission infrastructure to support over 900 GW of non-fossil capacity. Peak demand is projected to nearly double by 2035. The company's portfolio is aligned with these structural opportunities, including HVDC technology for long-distance power evacuation from remote renewable sites.

The 'India for the World' export strategy focuses on deepening localization and increasing the share of high-value export orders manufactured from India. Products reach over 60 countries, driven by utility and data center investments in the US, projects in the Middle East, and global energy transition needs.

Operational Execution (Q4 FY26):

Notable project commissions in Q4 included:

  • A 400/220 kV AIS substation for ReNew at Gadag.
  • A 132 kV GIS substation for PGCIL in Nagaland.
  • 400 kV AIS bays and transformers for NTPC Kahalgaon power evacuation.
  • AIS bays and transformers for HPPTCL at Kangoo.
  • Multiple power transformers and reactors for customers like PGCIL (Ramgarh, Maheshwaram, Bhadla-III) and Sterlite (Kishtwar).
  • 22 circuit breakers (400 kV) and a GIS substation at IIT Mumbai.

Customer Profile & Backlog Quality:

98% of the record ₹214.6B backlog is with private customers, central utilities, and PSUs. Exposure to state utilities is at an all-time low of under 2%, derisking the business and ensuring predictable cash conversion.

Capital Allocation:

  • The Board recommended a dividend of ₹10 per equity share for FY25-'26, subject to shareholder approval.
  • FY26 saw capital investments of over ₹10 billion across multiple product lines and facilities.
  • The Board approved a further investment of ₹550 million to create new capacities for disconnectors and drives at a new facility in Vallam, Tamil Nadu.

Guidance and Outlook

Margin Outlook: Management endeavors to deliver mid-20s EBITDA margins going forward, with efforts to improve further through productivity and cost control.

Order Pipeline: The company remains confident in achieving a base order intake of ₹70 billion annually, excluding large HVDC projects. There are 33 projects under bidding in the TBCB space, 21 of which are 765 kV. The HVDC pipeline remains strong with over 10 projects identified, including Barmer and Lakadia-Alephata.

Export Outlook: A large export order for high-voltage products for the US data center market (~₹14-15 billion) is expected to be decided in the current quarter (Q1 FY27). The underlying export order trend (excluding large orders) grew 15-20% in FY26.

HVDC Execution: The large HVDC order (Adani's VSC project) will see most revenue recognition starting from FY29 onwards, with the initial years focused on engineering and supply chain securing. Localization for HVDC has improved drastically, with 100% of transformers now supplied from India and a new valve and controls facility being established.

Capacity & Revenue: The company is undergoing a significant capacity expansion program (₹10B+). Revenue potential is not directly linearly linked to capacity due to the high value-added and outsourced nature of HVDC project execution.

Participants in the Earnings Call

Management: Mr. Sandeep Zanzaria (CEO & MD), Mr. Sushil Kumar (Whole Time Director & CFO), Mr. Abhishek Srivastava (Head, Business Operations), Ms. Kanika Arora (Communications Leader), Ms. Shweta Mehta (Company Secretary), Ms. Megha Gupta (Investor Relations).