Financial Performance Highlights

Historical Performance (FY22-FY26)

  • Revenue grew from ₹59 crore to ₹504 crore, representing 71% CAGR
  • EBITDA grew at 77% CAGR to ₹71 crore
  • PAT grew at 94% CAGR to ₹41 crore
  • EBITDA margins improved to 14.1% in FY26

H1 FY27 Performance

  • Revenue: ₹207 crore, up 5% YoY
  • EBITDA: ₹35 crore, up 28% YoY
  • PAT: ₹20 crore, up 36% YoY

Q2 FY27 Performance

  • Revenue: ₹188 crore, up 42% YoY
  • EBITDA: ₹27 crore, up 62% YoY
  • PAT: ₹16 crore, up 75% YoY

Order Book & Business Visibility

  • Unexecuted order book: ₹1,420 crore as of October 2026
  • Order book provides 2.8x revenue visibility over FY26 revenue
  • Added ₹950 crore of new orders in past 6 months
  • Recently received large ₹600 crore order from Maharashtra with 2-year execution timeline

Order Book Composition

  • Distribution segment: 85% of order book
  • Renewable energy: 8% of order book
  • Transmission: 6% of order book

Geographic Presence & Expansion Plans

  • Currently operates across 9 states: Haryana, Rajasthan, Gujarat, Himachal Pradesh, Uttarakhand, Maharashtra, Goa, West Bengal, Assam
  • Planning expansion into 2-3 new states in Q3 FY27
  • Targeting ₹1,000-1,500 crore in new tender bids with 30% success rate
  • Expecting order book of ₹1,500-2,000 crore by March 2027

Margin Guidance & Cost Management

  • EBITDA margins normalized to ~14% range
  • Contractual price escalation clauses provide protection against input cost volatility (monthly adjustment)
  • Labor cost volatility described as "negligible"
  • Historical bill-to-order book ratio of 70-80%

Working Capital & Financing

  • H2 typically sees improved working capital due to government budget clearances
  • IPO proceeds expected to reduce debt requirements in next 2-3 quarters
  • Current credit rating: BBB+, expecting upgrade to A- band
  • Transition from bank guarantees to surety bonds expected to reduce finance costs
  • Retention money realization expected with increased erection work in Q3/Q4

Business Differentiation & Strategy

  • Among few companies in India capable of bidding for ₹1,000 crore single orders
  • 36 out of 50 projects successfully completed historically
  • Selective tender participation focusing on World Bank, ADB, PFC, REC funded projects
  • Specialization in underground cabling with only 20% penetration achieved nationally
  • Maintaining 40% revenue CAGR over past 6 years

Market Outlook & Government Support

  • Government announced ₹6 lakh crore power sector program for next 4 years
  • RDSS Scheme Phase 2 announced with ongoing tender flows
  • Power T&D remains essential government expenditure priority
  • 80% of underground cabling potential still untapped nationally

Q&A Key Points

  • Q1 FY27 slowdown attributed to commodity price volatility and supply uncertainty
  • H2 is seasonally heavy quarter for power T&D industry
  • Exploring BESS (Battery Energy Storage Systems) tenders as new opportunity
  • No project delays or liquidated damages imposed in last 15 years
  • Subcontracting strategy being implemented as company scales up value chain

#Tags #SwastikaInfra #Q2Results #PowerT&D #SEBIDisclosure #RegulatoryCompliance #FinancialUpdate #Neutral