Sugs Lloyd Limited conducted its Q2 FY27 post-results conference call on November 03, 2026, following the release of its unaudited financial results for the half year ended September 30, 2026.

Financial Performance Highlights

Half Year FY27 (H1) Performance:

  • Revenue from operations: ₹213.31 crores, up 73% from ₹123.03 crores in H1 FY26
  • EBITDA: ₹31 crores, up 64% year-on-year with a margin of 14.5%
  • Profit After Tax (PAT): ₹20.01 crores, up 69% year-on-year
  • EPS: ₹8.62 compared to ₹6.86 in the previous year
  • The company achieved 71% of FY26 full-year revenue in just six months

Q2 FY27 Standalone Performance:

  • Revenue: ₹134.91 crores, up 12% year-on-year and 72% quarter-on-quarter
  • EBITDA: ₹19.1 crores, up 91% year-on-year and 59% quarter-on-quarter
  • PAT: ₹12.51 crores, up 108% year-on-year and 67% quarter-on-quarter
  • Interest cover improved to 5.2x from 4.8x a year ago
  • Finance costs reduced to 2.8% of revenue from 3.2%

Business Segment Performance

  • Power Transmission & Distribution and Smart Grid contributed approximately 80% of H1 revenue (compared to 4% for FY26 as a whole)
  • Solar EPC contributed the remaining balance
  • The company is executing its flagship Patna project valued at approximately ₹542 crores pre-GST, scheduled for completion by March 2028

Order Book and Pipeline

Q2 Order Wins:

  • Secured seven new orders worth ₹395 crores (excluding GST) or ₹466 crores (including GST)
  • This represents almost 3x the quarterly revenue

Order Book Status (as of September 30, 2026):

  • Total order book: ₹1,067 crores (approximately 3.5x of FY26 revenue)
  • ₹929 crores in Power T&D segment
  • Balance in solar segment
  • Geographic diversification: Bihar's share reduced from 82% to 55% of order book
  • Company now operates across 11 states

Order Quality:

  • Approximately 90% of order book is with government utilities, PSUs, and centrally funded schemes
  • Remainder with established private utilities including Tata Power's DISCOM

Recurring Revenue Contracts:

  • Odisha maintenance contract started October 1, 2026, providing approximately ₹60 crores annual recurring revenue for 3 years
  • Punjab RDSS work to be completed over 15 months
  • Amritsar solar plant scheduled for completion by December 2026

Bid Pipeline:

  • Total tenders tracked: ₹19,150 crores
  • Selected for bidding: ₹6,600 crores
  • Final stage of evaluation: ₹1,260 crores (₹800 crores in Power T&D, ₹400 crores in solar and storage, ₹60 crores in products)
  • Target strike rate: 15-20% on qualified bids, 10-15% in new states

Product Business Development

  • Fault Passage Indicator (FPI): India's largest manufacturer with estimated >50% domestic market share
  • Madhya Pradesh and Noida Power orders bring two more utilities into FPI platform
  • Total market potential: 2.65 lakh feeders across India
  • Target: Products to reach 10% of revenue by FY28
  • Compact FPI completed testing, first unit supply planned within current quarter
  • Vacuum circuit breakers and RMUs development progressing as planned
  • Exploring backward integration for frequently purchased items

Working Capital and Cash Flow

  • Receivable days improved from 179 days in June 2026 to 150 days in September 2026
  • Collected approximately ₹50 crores after quarter closure
  • Operating cash outflow for H1: ₹12 crores (compared to ₹37 crores for full FY26)
  • Management focusing on further working capital improvement through:
  • Faster milestone certification and payment release from clients
  • Use of surety bonds instead of cash-backed bank guarantees
  • Trade and purchase bill discounting

Future Outlook and Guidance

  • Business typically weighted toward second half, especially March quarter
  • FY28 revenue target: ₹1,000 crores
  • Debt guidance: Expected to reach ₹230-240 crores by beginning of FY28, ₹300 crores by end of FY28
  • Debt-to-equity ratio target: Maintain 1.2x-1.3x
  • No plans for equity dilution in near term

SCADA Business Development

  • Building capability through Patna project execution
  • Bidding for more SCADA projects in other states
  • In discussions with companies for technical collaboration in SCADA
  • Expected collaboration to materialize between now and first half of FY28
  • Government push for indigenous SCADA development creating opportunities

Subsidiary and New Business Initiatives

  • Sugs Renewables (wholly-owned subsidiary) to bid and hold RESCO projects for recurring revenue
  • Building transmission and battery storage capabilities step by step
  • Bidding for 20 megawatt-hour BESS projects (both EPC and RESCO models)

Operational Efficiency

  • Company scalable to handle larger projects without significant head office expansion
  • Current head office setup capable of managing ₹1,000 crore projects
  • Execution model relies on local contractors for installation with head office managing planning and supply