EEI boom masks soft consolidated print; guidance held

Segment-level EEI revenue growth 34% confirmed; adjusted EBITDA margin 24.8% vs 20-22% prior guidance

Revenue ₹63.9 Cr (+39%), adjusted EBITDA ₹15.3 Cr (24% margin), PAT ₹11.5 Cr up 321% YoY

PAT ₹19.4 Cr down from ₹19.7 Cr; driven by depreciation increase ₹20M and Alucast losses ₹5.9 Cr

Revenue ₹44.3 Cr, adjusted EBITDA -₹2.8 Cr (negative 6.4%), PAT -₹5.9 Cr. Claim on operating breakeven unverifiable from P&L

Order bookings up ~20%, but billing not yet reflected (backlog building). No revenue recognition yet

Management reaffirmed 20% EEI top-line growth and 20-22% EBITDA despite delivering 34% growth and 24.8% margin in Q1. Explicitly refused to raise guidance, citing seasonality and cautious macro outlook.

Prior call indicated 'near breakeven.' Q1 shows negative 6.4% EBITDA. Management now says double-digit margins in 2 years, implying sustained losses in FY27-FY28. RFQ pipeline in qualification stage (long cycles).

Prior ambition was vague. Now explicit: ₹24-25 Cr this year (from <5% prior), 10x to ₹250-300 Cr next year. Achieved operational profitability and ramping single-phase + launching 3-phase 12 kW range.

Now explicit: ₹30 Cr → ₹45 Cr this year → ₹100 Cr in 2-3 years. Also opened to inorganic moves (M&A ticket ₹50-200 Cr). Prior guidance was vaguer.

1 win announced, 3-4 additional wins in Q1, 10 more quotes. Order bookings up 20%. Represents near-term revenue catalyst for India segment current transformers.

Multiple engines: current transformers (data center, solar), Rishabh India 25.6% growth, Lumel 39% growth from grid upgradation in Germany, new product launches. Not lumped. Sustainable growth spread across product and geography.

Organic: adding resources, Mexico added, Canada/South America planned. Inorganic: couple of opportunities under review, will announce when material. Target ₹100 Cr in 2-3 years.

Strong RFQ pipeline in qualification (slow process, 6 months ramp after award). Double-digit margins in 2 years. Consolidation of suppliers benefits us. Team committed, costs cut.

Absolutely right observation. Q1 comparable to Q4 last year. Want to be careful with guidance. Will try to deliver more than our commitments. Please don't expect 34% every quarter.

Good success. 1 first win announced, 3-4 more wins in Q1, 10 more quotes pending. Part of the story. Order bookings up 20% in Q1 vs last year.

Lumel grew 39% despite subdued Europe because of multiple revenue streams: radiation gates (security, airports), medium-voltage products, solar, grid upgradation in Germany (EUR5M + EUR3M orders + more to come). Market is huge, our % small. If we beat competition, we win.

₹50 Cr to ₹150-200 Cr based on strategic fit. Looking at 4-5 opportunities. Due diligence process lengthy and thorough. Only business which is strategically good and ethically clean.

Revenue ₹639 million, EBITDA ₹153 million, PAT ₹115 million.

30-40% organic growth ambition (delivered in last 2-3 years). Strategies: 1) Upgrade products for ANSI and UL certification, 2) Expand resources (sales, Canada/Mexico/Latin America), 3) Inorganic moves. Target ₹100 Cr in 2-3 years.

Now selling in thousands (vs hundreds). Launched iNEO 3-phase up to 12 kW this quarter. Up to 50 kW by end of FY27. Hybrid inverters under development by end of FY27. Both direct distribution and EPC supply channels.

Both buildings completed. Shifted and partially operational. Everything should be done in 1-2 months. Built for 2.5x production capacity over next 4-5 years.

EUR5M already executed (not in Q1 revenue). EUR3M ongoing (~20-25% of sales, month-to-month through end of FY27, not one-time). But other growth too: radiation gates, chips, solar. Grid upgradation is long-term (2-3 years more projects). Customer enhanced with better solutions each order.

Solar still <5% of business (₹24-25 Cr this year, targeting ₹250-300 Cr next year). Growth from traditional products. Solar + EMS have lower margins (15-20% contribution vs 40-45% average). White-label is our own design, so margins comparable to branded products.

Really don't want to upscale guidelines. Seasonality: July/Aug and Dec/Jan holidays in Europe, Diwali in India. Q1 like Q4 of last year. Will try to deliver more. Commitments: 20% top-line, 20-22% EBITDA. Don't want to give guidelines higher than necessary and risk.

Expanding from 5,000-6,000 units/day to 8,000-10,000 (doubling). Using new Nashik facility + new machinery ordered. Also expanding to medium-voltage CTs. Work in progress.

3 SMT lines, latest high-end. Making PCBAs for Intel motherboards (high-end PCBA family). Currently some spare capacity. Will add 4th line once 3 at full 3 shifts. This is part of EMS business growth.

Not direct battery manufacturing. Indirect via hybrid inverters. Battery management, automation solutions. Will be part of ecosystem but not battery makers themselves.

Exploring everywhere: US, Europe, India. Nothing at serious stage yet. Process thorough. Must be strategic fit and ethically sound.

Already delivered 34% in Q1. Management attributes to multiple drivers (CTs, data centers, Lumel, new geographies). Explicitly refused to raise guidance despite beat.

Currently ₹30 Cr. Organic 30-40% growth + product upgrades (ANSI, UL) + inorganic moves planned. Product redesign for American market ongoing.

10x growth target. Currently <5% of business. Ramping production, both direct and EPC channels. Hybrid inverter development underway. Execution risk.

Q1 negative 6.4% EBITDA. RFQ pipeline in qualification stage (long sales cycles, 6 months post-award ramp). 20-25% of Lumel revenue from one German customer.

Q1 delivered 24.8% adjusted EBITDA, up 520 bps from 19.6%. Operating leverage, product mix, procurement efficiencies evident. Management confident on sustainability.

Delivered in Q1. Supported by EEI + Lumel strength. Alucast drag ongoing. Depreciation headwind (₹20M Q1) will continue as facility ramps.

Both buildings completed. Shifted and partially operational. 2.5x capacity expansion targeted over 4-5 years.

New Nashik facility + new machinery ordered. Work in progress. Medium-voltage expansion also planned.

Currently 3 SMT lines operational. One old line being upgraded. EMS business scaling gradually.

Lumel S.A. derives ~20-25% of revenue from EUR5M + EUR3M German grid upgradation orders. Project long-term (2-3 years) but customer concentration risk if project stalls or customer shifts suppliers.

Lumel Alucast revenue down 41.2% (planned). EBITDA negative 6.4% in Q1. Management targeting EBITDA breakeven by FY27 end, double-digit margins in 2 years. RFQ pipeline in qualification/negotiation (slow process, 6+ month ramp post-award). Execution risk on both converting RFQs and operationalizing capacity.

Call explicitly mentions 'geopolitical uncertainties, tariff developments and supply chain volatility.' Europe 'relatively subdued' environment. Q1 consolidated revenue growth only 4.2% despite segment strength, suggesting macro headwinds. US tariff risks unmentioned but relevant.

Solar inverters targeting ₹250-300 Cr next year (from ₹24-25 Cr this year, <5% of India business currently). Requires manufacturing scale-up (new facility dedicated floor), market adoption, competitive wins vs Chinese players. Achieved operational profitability but volumes still ramping.

Depreciation increased ₹20M in Q1 from new facility. EBITDA grew 17.3% YoY but consolidated PAT declined 1.3%. As facility reaches full capacity (4-5 years), depreciation burden will persist unless revenue growth accelerates significantly.