Company Disclosure

Regulatory Reference: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Financial Performance Highlights

Q4 FY26 Performance (Quarter Ended March 31, 2026)

  • Revenue from Operations: ₹10,183 million, up 100.5% YoY (Q4 FY25: ₹5,078 million) and 24.5% QoQ (Q3 FY26: ₹8,178 million)
  • Gross Profit: ₹969 million, up 74.6% YoY with Gross Profit Margin of 9.52% (10.93% in Q4 FY25)
  • EBITDA: ₹563 million, up 59.9% YoY with EBITDA Margin of 5.53% (6.93% in Q4 FY25)
  • Profit Before Tax: ₹447 million, up 73.3% YoY with PBT Margin of 4.39%
  • Profit After Tax: ₹345 million, up 86.5% YoY with PAT Margin of 3.39%
  • Diluted EPS: ₹5.09 (₹3.25 in Q4 FY25)

FY26 Annual Performance (Year Ended March 31, 2026)

  • Revenue from Operations: ₹31,070 million, up 61.1% YoY (FY25: ₹19,283 million)
  • Gross Profit: ₹3,205 million, up 49.9% YoY with Gross Profit Margin of 10.32% (11.09% in FY25)
  • EBITDA: ₹1,921 million, up 55.5% YoY with EBITDA Margin of 6.18% (6.35% in FY25)
  • Profit Before Tax: ₹1,459 million, up 71.6% YoY with PBT Margin of 4.70%
  • Profit After Tax: ₹1,101 million, up 62.0% YoY with PAT Margin of 3.54%
  • Diluted EPS: ₹18.37 (₹11.97 in FY25)
  • Volume Growth: 21% YoY increase
  • Exceptional Items: ₹16 million recorded in FY26 (none in FY25)

Balance Sheet Position (as of March 31, 2026)

  • Total Assets: ₹13,226 million (FY25: ₹7,449 million)
  • Property, Plant & Equipment: ₹3,075 million (FY25: ₹1,269 million)
  • Capital Work-in-Progress: ₹521 million (FY25: ₹1,078 million)
  • Inventories: ₹4,249 million (FY25: ₹2,110 million)
  • Trade Receivables: ₹3,327 million (FY25: ₹2,239 million)
  • Cash & Cash Equivalents: ₹721 million (FY25: ₹104 million)
  • Total Equity: ₹8,081 million (FY25: ₹2,985 million)
  • Total Debt: ₹3,162 million (FY25: ₹3,601 million)
  • Debt/Equity Ratio: 0.39x (1.21x in FY25)
  • Trade Payables: ₹1,235 million (FY25: ₹325 million)

Operational and Strategic Highlights

Market Position and Business Model

  • Industry Leadership: Only Indian supplier approved for HVDC transformers with recent first awards for specialized wires
  • Product Mix: 75.3% of revenue from specialized magnet winding wires, 24.7% from standard magnet winding wires
  • Customer Base: 120+ OEM customers including Hitachi Energy, CG Power, BHEL, GE Vernova, Siemens Energy, Bharat Bijlee, Nidec, Suzlon
  • Export Performance: Largest Indian exporter of winding wires to 24 countries with ~30% revenue contribution from exports
  • Approved Supplier: Power Grid, NTPC, NPCIL, RDSO

Capacity Expansion

  • Current Capacity: Annualized capacity reached 43,445 MTs as of March 31, 2026
  • Expansion Plan: Expanding total capacity from 29,045 MT in FY25 to 59,045 MT by March 2027
  • Manufacturing Facilities: Four units - Taloja, Chakan (two units), Supa (Phase-I 14,400 MT)
  • Strategic Locations: Facilities located near JNPT port and within 250km radius of major customers

Industry Outlook

  • Transformer Market Growth: Indian transformer capacity expected to triple from ~110 GVA to ~300 GVA by FY28
  • Key Drivers: Energy transition, AI data centers, global grid upgrades
  • Entry Barriers: Ultra-precision technology, stringent vendor approvals, long qualification cycles (multi-year)

Management Commentary

Rajesh K. Hegde, Managing Director, stated: "We enter FY2027 with good momentum on the back of strong execution across several key strategic and operational achievements in Q4 and FY26. These key strategic pillars include planned capacity expansion to address a robust demand environment, strengthening of our balance sheet, diversifying the business to leverage new growth markets, expanding our sustainability initiatives, and leveraging ultraprecision technology to deliver quality engineering to a global customer base."

Key Trends and Developments

  • Increased demand for export products – new transformer OEM customers and new countries
  • Added new domestic OEM customers
  • Top 10 customer contribution declining (de-risking strategy)
  • High repeat business and ability to cross-sell across transformer & motor divisions and geographies

Capital Market Information

  • Shares Outstanding: Not quantified in disclosure
  • Major Shareholders (as of March 31, 2026):
  • Kotak Mahindra Mutual Fund: 5.34%
  • LIC Mutual Fund: 2.81%
  • MALABAR Fund/Investment: 2.45%
  • HDFC Mutual Fund: 1.56%
  • Bank Of India Mutual Fund: 1.37%
  • HSBC: 1.10%
  • ITI Mutual Fund: 0.81%
  • Kotak Mahindra Life Insurance: 0.69%

Additional Information

  • Copper Price Impact: Copper price movements affect EBITDA Margin (%) but not absolute EBITDA per ton due to passthrough mechanism
  • EBITDA/Ton: Structurally stable absolute EBITDA per ton with margin fluctuations being a denominator effect
  • Finance Costs: FY26 includes non-recurring interest costs of ₹27.20 million pertaining to Supa-related debt
  • Investor Relations: Valorem Advisors serves as independent investor relations management service company

Disclaimer

The presentation contains forward-looking statements based on current beliefs and assumptions of management, subject to risks and uncertainties. The company disclaims any obligation to update these statements. This is not an offer to purchase securities.