Financial Performance Highlights (FY26 vs FY25)

  • Revenue: Increased by 70% from ₹176 crores to ₹300 crores
  • EBITDA: Increased by 69% with margins maintained
  • PAT: Increased by 71% from ₹16 crores to ₹28 crores
  • EPS: Increased by approximately 37-38%
  • The company overachieved its stated guidance of ₹270 crores revenue for FY26

Order Book and Business Development

  • New Orders Booked in FY26: Over ₹500 crores
  • Unexecuted Order Book (as of call): ₹825 crores (excluding GST)
  • Breakdown: ₹708 crores from Power T&D, ₹110 crores from Solar, ₹8 crores from niche products
  • Large Order Highlight: Won a ₹640 crores (including GST) project from Konkan Railways for SCADA-compatible grid systems
  • Tender Pipeline: ₹1,225 crores worth of tenders at various stages of evaluation with a historical strike rate of 20-30%
  • Identified Future Tenders: Approximately ₹3,000 crores worth of tenders for which bid preparation is underway

Geographical Expansion

The company has expanded beyond its traditional markets of Odisha and Bihar into new states including Gujarat, Maharashtra, Punjab, and Chhattisgarh, with plans for further geographical coverage.

Product Segment Performance

  • Fault Passage Indicators (FPI): Showing exciting growth momentum
  • FY26 FPI revenue: Approximately ₹7 crores
  • Q1 FY27 FPI orders: Approximately ₹8 crores (comparable to entire FY26 FPI business)
  • Target: 10%+ revenue contribution from FPI by FY28
  • Next-generation compact FPI launch expected by Q2 FY27
  • Other Products: Auto reclosers and sectionalizers gaining strong momentum with new orders received
  • R&D: Developing dry compressed air insulated RMUs (Ring Main Units) and VCBs (Vacuum Circuit Breakers), with commercialization expected next year

Financial Position and Ratios

  • Debt to Equity Ratio: Improved significantly from approximately 2.0 to 0.5 post-IPO
  • Current Ratio: Improved
  • Credit Facilities:
  • Total facility: ₹125 crores (₹65 crores non-fund based, ₹60 crores fund-based)
  • Fund-based utilization: ₹49 crores out of ₹60 crores
  • Current rating: BBB- from CARE
  • Receivables Management: Identified as top priority area for improvement
  • Q4 contributed 40% of FY26 sales, affecting receivable days
  • Implementing strategies to avoid revenue concentration in final quarter
  • Improving collection processes and focusing on projects with better payment terms

Working Capital and Funding Strategy

For the ₹1,000 crores revenue target by FY28:

  • Planning for credit facilities of ₹300-350 crores (mix of fund-based and non-fund based)
  • Exploring alternative financing tools: purchase invoice discounting, TReDS, surety bonds instead of bank guarantees
  • Creditor days improved from 18 days to 61 days, helping fund growth
  • No immediate plans for equity fundraising unless at attractive valuations

Margin Outlook and Protection

  • Company maintained both EBITDA and PAT margins despite 70% growth
  • Majority of orders include price variation clauses protecting against commodity price fluctuations (copper, etc.) and statutory tax changes
  • FPI business offers higher margins than EPC business
  • Expect to maintain similar margin trends in FY27

Project Execution and Revenue Guidance

  • FY27 Revenue Guidance: ₹600 crores (confirmed as achievable)
  • FY28 Revenue Target: ₹1,000 crores
  • Konkan Railway Project Execution: Expected to bill ₹200-250 crores in FY27, balance in FY28
  • Normal Project Timeline: 18-24 months for completion

Market Focus and Strategy

  • Sector Focus: Primarily power T&D (expected to be major contributor), followed by solar and niche products
  • Customer Focus: 99% business with government entities, specifically targeting projects funded by Government of India or multilateral agencies (World Bank, ADB) rather than state-funded projects
  • International Expansion: Planning definitive steps for international business expansion, though not immediate large-scale entry

Management Commentary on Market Potential

  • FPI Market: Estimated ₹3,000 crores potential by 2030
  • SCADA/Smart Grids: Huge potential as Tier 2 and Tier 3 cities need conversion to smart grids for better consumer experience and reduced AT&C losses
  • Competition: For SCADA projects, primarily competes with L&T, Voltas, and other major EPC players

Q4 FY26 Margin Clarification

Margins were slightly lower in Q4 (approximately 12% vs 14% for half-year) due to a MAHAGENCO order that faced execution delays and cost escalations from local issues. Management considers this a one-time issue and is confident about maintaining margins going forward.