Hirect Limited – Investor Presentation Summary
Key Operational Highlights
- Order book stood at approximately ₹795 crore as of September 2026
- Received Indian Railways' CTC and PICC approvals for deployment in Traction Transformers
- Included in RDSO's UVAM list of Development Source for propulsion system with supplies commenced
- Backward integration in copper conductors to strengthen core capabilities
Key drivers of operational performance:
Strong demand across railway and industrial segments, geographic expansion into US market, indigenous manufacturing capabilities development
Segment-wise Performance
Not Specified
Financial Highlights
Revenue: ₹294.3 crore (Q2FY27), ₹530.7 crore (H1FY27)
EBITDA: ₹24.0 crore (Q2FY27), ₹49.1 crore (H1FY27)
PAT: ₹14.5 crore (Q2FY27), ₹29.6 crore (H1FY27) [includes exceptional gain of ₹2.7 crore in Q2 and ₹6.2 crore in H1 from sale of Dehradun plant]
EPS: ₹4.12 (Q2FY27), ₹8.51 (H1FY27)
Margins: Gross Profit Margin 22.5% (Q2FY27), 23.9% (H1FY27); EBITDA Margin 8.2% (Q2FY27), 9.2% (H1FY27); PAT Margin 4.9% (Q2FY27), 5.6% (H1FY27)
YoY comparison: Revenue growth 29.6% (Q2), 20.1% (H1); Gross Profit growth 15.1% (Q2), 11.2% (H1); EBITDA decline -7.3% (Q2), -2.1% (H1)
Drivers of financial performance:
Higher revenue growth offset by elevated raw material costs, adverse product mix, higher operating expenses, and Elventive France integration costs
Key Risks:
Elevated raw material costs, geopolitical developments, supply-chain disruptions, input cost pressures
Geographical Revenue Split
Not Specified
Balance Sheet Snapshot (Standalone Sep-26)
Net Debt/Equity: Not Specified
Reserves: ₹340.5 crore
Current Assets: ₹469.0 crore
Current Liabilities: ₹298.2 crore
Working Capital: Not Specified
Financial Health Insights: Cash and cash equivalents improved to ₹60.8 crore from ₹0.3 crore in Mar-26
Capex & Cash Flow Health
Capital Expenditure: Not Specified
Free Cash Flow: Not Specified
Operating Cash Flow: -₹16.2 crore (Net cash from operating activities)
Net Debt Movement: Not Specified
Investment Rationale: Strategic investments in capabilities and infrastructure to capitalize on emerging opportunities
Strategic & R&D Initiatives
- Acquisition of Elventive France (erstwhile BeLink Solutions) to build European hub for Robotics, Power Electronics & EMS
- Enabling exchange of technologies and best practices
- Strengthening global footprint and customer proximity
- World-class infrastructure and automation for superior quality
- Collaborative innovation to accelerate time to market
- Strategic evolution from component supplier to vertically integrated system player
Expected impact on growth:
Elventive France remains in integration and scale-up phase, expected to reach breakeven gradually
Strategic Rationale:
Expanding into high-growth markets, reducing operational costs through backward integration
Industry Trends & Business Environment
Macro/Industry Trends: Growing demand across railway and industrial segments, supply-chain disruptions, raw material price fluctuations
Impact on Company: Margin pressure due to input cost increases, continued demand visibility through strong order book
Management Commentary & Growth Outlook
Strategic Outlook: "We remain focused on strengthening our core railway business, expanding our product portfolio through indigenous development, enhancing operational efficiencies and deepening our presence across new geographies"
FY Guidance: EBITDA margins expected to remain under pressure over next few quarters due to Elventive France integration
Market Share Targets: Not Specified
Risks and Opportunities: Geopolitical developments and supply-chain disruptions adding to input cost pressures; continued investments in human capital to support future growth
H1FY27 Business Development Highlights
- MEMU Trainset Order: Maiden development order of ~₹60 crore from MCF for 4 MEMU Trainsets with 24-month execution timeline
- Vande Metro Order: First development order of ~₹60 crore from RCF for 1 trainset (16-coach AC trainset) with 21-month execution timeline
- First US Order for Traction Motor Assemblies: Establishes foundation for expanding customer relationships in US market
- US Mining Industry Order: First US order for IGBT converters, entering mining industry
Consolidated Financial Performance (Q2FY27)
Revenue: ₹315.7 crore (39.0% YoY growth)
EBITDA: ₹13.6 crore (-47.5% YoY)
PAT after Minority Interest: ₹6.8 crore (-53.7% YoY)
EPS: ₹1.94
Historical Financial Trends (FY22-FY26)
Revenue growth from ₹372.4 crore (FY22) to ₹999.1 crore (FY26)
EBITDA Margin improvement from 6.1% (FY22) to 8.4% (FY26)
PAT growth from ₹7.8 crore (FY22) to ₹38.6 crore (FY26)