Sugs Lloyd Limited

Financial Performance Highlights

Q1 FY27 Results (Quarter ended June 30, 2026):

  • Revenue from operations: ₹78.40 crores, representing 32% year-on-year growth from ₹59.41 crores in Q1 FY26
  • EBITDA: ₹12 crores with margin of 15.3%, compared to ₹8.9 crores (14.98% margin) in Q1 FY26 - 35% EBITDA growth with 32 basis points margin improvement
  • Profit after tax: ₹7.5 crores, up 30% from ₹5.78 crore in same quarter last year
  • Consolidated net profit (including share of associate entity): ₹7.54 crores
  • Finance cost: ₹2.45 crores, higher than previous year due to working capital investments

Revenue Mix and Segment Performance

Segment-wise Revenue Breakdown:

  • Power transmission distribution and smart grid: ₹46.32 crores (59% of total revenue), compared to 27% (₹16.34 crores) in Q1 FY26
  • Solar EPC: ₹32 crores (41% of total revenue)

The company is repositioning its solar portfolio toward mandates with better structures, longer contract terms, and recurring revenue streams rather than purely one-off EPC mode.

Order Book and Business Pipeline

Current Order Position:

  • Order book as of June 30, 2026: ₹807 crores (approximately 2.7x FY26 revenue of ₹300 crores)
  • Represents approximately 2.5 years of contracted work at current execution pace
  • Qualified bid pipeline: Over ₹1,350 crores
  • Tenders at final stage: Exceeding ₹1,200 crores
  • Fresh awards in Q1: ₹58.37 crores

Recent Order Wins:

1. Bihar RDSS order: Smart grid project for Government of Bihar distribution utility (centrally funded under RDSS)

2. Bihar PM-Surya Ghar scheme: Combo of capex and RESCO basis - plant construction over 9 months with 10-year service contract (first recurring revenue stream)

3. Odisha order: Fault passage indicator and data communicator units (75-day delivery)

4. Madhya Pradesh order: FPI integration into SCADA control center at Indore including 5 years AMC (₹3.37 crores)

Financial Position and Working Capital

Balance Sheet Updates:

  • Customer collections during quarter: ₹100 crores against revenue of ₹78 crores
  • Trade receivables: Reduced by ₹10 crores to ₹149 crores
  • Borrowings: Increased from ₹68 crores to ₹91 crores (₹23 crores drawn to fund working capital for Patna project)
  • Trade creditors: Reduced from ₹53 crores to ₹30 crores as suppliers were paid
  • Fixed deposits: Grew from ₹50 crores to ₹68 crores funded from internal accruals
  • Debt-equity ratio: Currently 0.63, expected to reach maximum 1.1-1.2

Strategic Developments and New Verticals

Expansion Initiatives:

1. Transmission Business: Active in final stages of tender finalization, expecting first breakthrough soon

2. Battery Energy Storage Systems (BESS): Entering BESS market after detailed analysis, identified specific tenders in Rajasthan and Bihar

3. Product Development: Compact FPI at advanced stage, vacuum circuit breakers in development, RMU work progressing

4. International Expansion: Exploring opportunities in Africa (initial stages)

Technology Partnerships: In discussion with several technology companies for technology transfer arrangements in product categories to accelerate timelines and broaden offerings.

Guidance and Outlook

Revenue Targets:

  • FY27 guidance: ₹600 crores revenue (100% YoY growth from FY26)
  • FY28 guidance: ₹1,000 crores revenue target maintained

Margin Outlook: Management confident of maintaining current margin levels (15.3% EBITDA margin) with potential improvement from growing product business contribution.

Segment Revenue Projection for FY28 (₹1,000 crores target):

  • Power transmission and distribution: 40-45%
  • Solar EPC: 40-45%
  • Product business: Target 10% contribution

Operational Updates

Patna Project: Comprehensive smart grid mandate covering infrastructure, equipment, software, communication - in active execution with progress tracking well. Experienced some teething problems causing billing slippage from Q1 to Q2.

FPI Business: Domestic market share over 50% in fault passage indicators. Q1 FY27 product orders already equal entire FY26 product orders. Auto reclosers and section analysers also gaining traction.

Management Commentary

Santosh Kumar Shah (Chairman): Emphasized building habits of main board company despite being listed on BSE SME platform. Confident in maintaining growth momentum and achieving guidance targets.

Satyakam Basu (CEO): Highlighted commitment to quarterly transparency with investors. Noted that Q1 is traditionally the smallest quarter due to seasonal factors but company delivered strongest ever Q1 performance.

Q&A Session Highlights

Margin Sustainability: Management confirmed confidence in maintaining current margin levels, supported by growing high-margin product business.

Order Win Rate: 15-20% strike rate on tenders, improving to 30-40% in established states/markets.

Working Capital: No immediate concerns, utilizing TReDS, purchase invoice discounting, and surety bonds to manage working capital requirements.

Debt Planning: Peak debt expected around ₹130 crores for FY27. No equity fundraising planned for FY27 or FY28 unless unplanned requirements arise.

Product Development Capex: Additional capex needed for VCBs and RMUs (to be determined later), while FPI production requires no additional capex.