SALZER ELE C TRONICS LIMITED

Financial Performance Highlights

Q1 FY27 Consolidated Financials (₹ in Crore):

  • Net Revenue: ₹498.02 (12.90% YoY growth from ₹441.12 in Q1 FY26)
  • EBITDA (Excluding Other Income): ₹31.32 (25.01% YoY decline from ₹41.76)
  • EBITDA Margin: 6.29% (318 bps decline from 9.47% in Q1 FY26)
  • Profit Before Tax: ₹12.69 (47.68% YoY decline from ₹24.26)
  • Profit After Tax: ₹8.33 (51.60% YoY decline from ₹17.22)
  • PAT Margin: 1.67% (223 bps decline from 3.90%)
  • Basic EPS: ₹4.55 (53.29% YoY decline from ₹9.74)

Q1 FY27 Standalone Financials (₹ in Crore):

  • Net Revenue: Not explicitly stated but implied from expenditure figures
  • EBITDA (Excluding Other Income): ₹29.52 (28.57% decline from ₹41.32 in Q1 FY26)
  • EBITDA Margin: 6.07% (349 bps decline from 9.56%)
  • Profit After Tax: ₹8.47 (51.85% decline from ₹17.60)
  • PAT Margin: 1.74% (233 bps decline from 4.07%)
  • Basic EPS: ₹4.79 (51.91% decline from ₹9.96)

FY26 Annual Consolidated Financials (₹ in Crore):

  • Net Revenue: ₹1,758.19 (24.03% growth from ₹1,382.93 in FY25)
  • EBITDA (Excluding Other Income): ₹147.06 (9.83% growth from ₹133.90)
  • EBITDA Margin: 8.36% (108 bps decline from 9.44%)
  • Profit After Tax: ₹53.77 (2.49% growth from ₹52.46)
  • PAT Margin: 3.06% (64 bps decline from 3.70%)
  • Basic EPS: ₹29.94 (15.18% decline from ₹35.30)

Business Segment Performance

FY26 Revenue Breakdown by Business Vertical:

  • Industrial Switchgear: 56.0% of net revenues
  • Wires & Cables: 38.9% of net revenues
  • Building Electrical Products: 5.1% of net revenues

Segment Economics:

  • Industrial Switchgear: ~56% of revenue, targeting ~13.5% EBITDA margin (currently ~11%), product mix of ~60% high-value and ~40% standard products
  • Wire & Cable: ~39% of revenue, targeting ~6.5% EBITDA margin, impacted by copper price volatility
  • Building Electrical: ~5% of revenue, scale-dependent margins

Operational Metrics

  • Export Contribution (Q1 FY27): 19%
  • Switchgear Utilization: ~70%
  • Wire & Cable Utilization: ~65%
  • Cam Rotary Switch Market Share: ~25% (Market Leader)

Strategic Initiatives and Investments

Smart Metering:

  • 4M units per annum capacity commissioned
  • Adopting Wirepas RF mesh technology
  • Consortium strategy to bypass eligibility barriers

EV Charging:

  • Strategic investment of ₹8 crore for 30% stake in UltraFast Chargers Private Limited
  • Generated ~₹9 crore revenue to date with ~100 units sold
  • Management plans to double revenue next year

Energy Management:

  • ₹200 crore BBMP project providing recurring revenue visibility
  • Expected to generate ₹2-2.5 crore per month recurring revenue starting Q2 FY27
  • Executed through Effilume SPV (41.91% stake as of Dec 2025)

International Expansion:

  • Saudi Arabia local manufacturing plant commissioning targeted June 2026
  • US market tariff reset from 50% to 18% improves competitiveness
  • UK zero import duty advantage
  • Goal to restore exports to >25% of revenue mix

Management Updates

  • Mr. Raman Krishnamoorthy appointed as CFO effective April 1, 2026

Subsidiary and Associate Investments

  • Additional investment of ₹13.25 lakh in wholly owned subsidiary Salzer EV Infra Private Limited, taking total investment to ₹93.21 lakh
  • Additional investment of ₹168.64 lakh in associate company Effilume Private Limited, increasing total investment to ₹423.97 lakh and equity stake to 46.85%

Manufacturing and Capacity

  • Seven manufacturing units located in Tamil Nadu
  • Over 15 products catering to Industrial/Building Electrical/Automobile verticals
  • In-house R&D center with more than 35 engineers, recognized by Department of Science, Govt of India
  • Six patents in process, two patents received for CAM operated rotary switch & Motor Protection Circuit Breaker

Distribution Network

Domestic:

  • 350+ dealers via L&T
  • 50 stockists for modular switches

International:

  • 40 international distributors
  • Direct network across 50 countries
  • 21% of sales from exports (FY26)

Customer Base

  • Preferred supplier to GE, Schneider
  • Only approved supplier of Nuclear Power Corporation
  • Largest supplier of rotary and load break switches to Indian Railways
  • 200+ reputed and long-term customers

Raw Material Impact

Management cited elevated raw material costs, particularly copper, silver, and aluminium, amid continued volatility in global commodity markets as primary reason for margin moderation. These materials are key inputs across the switchgears business, including transformers and contactors.

Forward-looking Statements

Management maintains long-term vision to double revenue and profitability every 4 years. They remain optimistic on opportunities from industrial automation, energy efficiency, smart infrastructure, renewable energy integration, railways, data centers, and smart electrical ecosystems.