Tempsens Instruments Q2 FY27 Revenue Up 33.7%

Revenue from Operations: ₹255 crores, up 33.7% from ₹190.7 crores
Total Income: ₹259.4 crores, up 33%
EBITDA: ₹54.9 crores, up 11.9% from ₹49.1 crores
EBITDA Margin: 21.2% of total income vs 25.2% in H1 FY26
Gross Margin: 45.7% (broadly in line with FY26 full year level of 46%)
Profit Before Tax: ₹44.5 crores, up 11.7%
Profit After Tax: ₹35.7 crores, up 18.1%
Adjusted PAT: ₹38 crores, up 17% (excluding one-time deferred tax credit of ₹1.3 crores on IPO expenses)

Temperature Sensing: Revenue grew 57% to ₹133 crores (53% of product revenue). Organic growth ~25%. Growth driven by thermal power plants, CVD equipment manufacturers, and ramping dispatches of sensors for fuel cells.
Electrical Heating: Revenue grew 44% to ₹47 crores. Led by oil and gas dispatches in India, Southeast Asia, and Middle East. Completed major certification for furnaces for life science OEM customers. Laboratory furnaces now ETL and CE approved with bulk dispatches starting Q3 FY27.
Specialized Cable: Revenue ₹74 crores as business recovered from softer Q1. Executed orders in thermal power plants, oil and gas in Africa, and chemicals in India. UL-certified high-temperature wire harness supplies to OEM customers beginning Q3 FY27.

Exports: More than doubled to ₹94 crores (37% of product revenue vs 25% last year). Organic export growth ~45%. Contributions from Tempsens Germany, Tempsens Polska, Southeast Asia, and Middle East.
Domestic: Revenue grew ~12% to ₹159 crores.

Five projects with aggregate peak revenue potential of ₹500 crores at full utilization:

1. Brownfield plant for contact sensors (50,000 sq ft within Unit 1) - Completion Q3 FY28, ₹120 crore potential

2. Capacity for custom-built large furnaces (25,000 sq ft) - Timeline not specified

3. New plant for mid-voltage heaters (50,000 sq ft within Unit 6) - Completion Q1 FY28, ₹200 crore potential

4. Unit 8 new cable plant - Completion Q2 FY28, ₹60 crore potential

5. Joint venture facility with Victura (80,000 sq ft) - Commencement expected Q4 FY27, ₹120 crore potential

IPO Proceeds: Fresh issue of ₹95 crores, net proceeds ₹87.3 crores after issue expenses
Debt Repayment: ₹55 crores used to repay debt as per offer document
Total Borrowings: ₹40.7 crores as of September 30, 2026 (reduced from ₹77.9 crores as of March 31, 2026)
Debt-to-Equity Ratio: 0.06 times (from 0.15 times in March 2026)
Remaining IPO Proceeds: ₹7.5 crores for capex in electrical heating and specialized cables; ₹14.1 crores for general corporate purpose (both unutilized as of September 30)

Operating Cash Profit (before working capital changes): ₹50.7 crores, up 16.2%
Inventory: Increased by ~₹28 crores to ₹139 crores to support business growth
Receivables: ₹83.1 crores (slightly lower than March despite revenue growth)
Capital Expenditure: ₹36.7 crores for H1, including ₹26 crores for leasehold land for cable expansion, ₹5.9 crores for plant and equipment, ₹4.8 crores for projects under construction

Launched Edge Series of non-contact pyrometers and combined thermal/visual camera
ETL and CE approvals obtained for laboratory furnaces
Oil and gas approvals in Middle East progressing well
Mid-voltage heater certification expected by Q4 FY27

Fuel cell sensor dispatches ramping up (orders for almost a year)
Prototype contract discussions for AdBlue heaters for commercial vehicles (emission control)
Supplies of UL-certified high-temperature wire harness to OEM customers beginning Q3 FY27
OEM business expected to reach ~15% of revenue in coming years

50-50 JV with Victura signed agreement to acquire 80,000 sq ft facility
JV with Micro-Epsilon for infrared pyrometers and industrial thermal imagers in final quality approval stage
Tempsens Germany, Tempsens Polska, and Tempsens Measurement and Control contributed ~₹25-26 crores incremental revenue in H1

Employee Cost: Grew 41% to ₹42.1 crores due to: building teams for new capacity, strengthening corporate structure, addition of consolidated entities, ESOP charges of ₹1.1 crores
Other Expense: Grew 37% to ₹25.6 crores
Finance Cost: ₹2.5 crores (full benefit of debt repayment to show from next quarter, expected ~1% improvement in profitability)

Expect revenue growth for the year to be in line with blended growth over last 3 years
H1 performance tracking ahead of this range helped by consolidated entities
Expect profitability to improve progressively in H2 as supplies of harness cables, furnaces, and OEM sensors ramp up
Traditional business order book: 3-4 months visibility
OEM business order book: 1-2 years visibility
Working capital days expected to remain constant despite absolute increase
R&D focus areas: non-contact temperature sensors, thermal cameras, mid-voltage heaters (TAM ~$600-800 million)