Record growth, margin held—but debt overshoot and cash burn rising

H1 FY27 ₹213.31 Cr, up 73% YoY from ₹123 Cr; confirmed largest H1 in company history

H1 EBITDA ₹31 Cr = 14.5% margin; management confirms 15% for full year

Sept 30 order book ₹1,067 Cr; FY26 revenue ~₹305 Cr implied (₹1,067/3.5), aligns

Current debt ₹160 Cr, debt-equity 1.2–1.3x; both figures exceeded prior guidance

H1 OCF negative ₹12 Cr (vs ₹37 Cr negative FY26 full year); management says cash will stay negative while growing 70%+ YoY

FY27 peak debt ₹130 Cr → ₹160 Cr (23% miss). Debt-equity <1.2x → 1.2–1.3x. Cited: bidding bank guarantees, working capital. Manageable per mgmt, but materially above prior commit.

Bihar share of order book down from 82% to ~55%. Added Punjab, Odisha, Rajasthan, Haryana, UP, Jammu, Kashmir. Reduces single-state concentration risk vs 1 year ago.

Target 10% product revenue by FY28. SCADA JV/consortium model unlocking higher-margin projects. Capacity at 50% utilization for FPI; room to scale.

EBITDA 14.5% H1, guidance 15% full year. Mgmt confirms quarterly swings acceptable if annual holds. No downward margin revisions; project mix and pricing holding.

Margins vary Q-to-Q based on project mix and execution phase (some high, some low). On annual basis, at least, margins remain ~15%. We expect 15% full-year.

Debt at ₹160 Cr for bid/bank guarantee funding; debt-equity will stay 1.2–1.3x, manageable. Cash will stay negative while growing 70%+ YoY—growth speed prevents positive OCF. No unsecured debt plans unless needed.

Yes, fully on track. Reaffirm all commitments.

Only 5–10% of total capacity used for FPI; huge room to scale. Entry needs product development time + testing. Siemens is main competitor. We have first-mover/customization advantage.

Final tenders under eval: ₹1,260 Cr. Pre-bid: ₹6,600 Cr. Tender rate 15–20% new states, 10–15% states known. Quality high: 9/10 order book is govt utilities/PSUs, Tata Power, DISCOM—strong payment security.

1 year to develop, 6 months testing, qualifications needed. Hard for new entrants. Product development continuous. Entry barriers high. Compact fault-passage indicators now in testing, launch soon.

Joint-venture basis on project. Tie-up with SCADA companies for software/tech. Allows us to meet eligibility, enter SCADA projects. First 3–4 tenders floated; expect orders soon. Consortium model is pathway to scale SCADA.

Confident on ₹600 Cr FY27 given order book. Orders now spread: Bihar orders down 82%→55%, adding Punjab, Odisha, Rajasthan, J&K, UP. Executing in multiple states in parallel; expect big orders outside Bihar in next 6 months.

One transmission tender L1 in Jammu/Kashmir nearly awarded; state policy change scrapped it; rebidding. Tenders at various stages; expect H2 FY27 billing start, but uncertain. May start Oct/Nov or later; tenders are in pipeline.

INR640 Cr Patna project now executing. Built systems/processes to manage ₹1,000 Cr+ projects. Increased site execution team only; core software/accounts/HR same size. Fully scalable; proven on ₹640 Cr Patna.

Haryana/UP: minor document submission delay from bank. Not a disqualification on our merit. Bidding 100+ projects; some doc shortage is normal. No systemic issue.

H1 ₹213 Cr booked; order book ₹1,067 Cr with 5–7 year visibility. Patna project in bulk billing phase H2. Management reaffirms; bid pipeline ₹6,600 Cr supports. Track rate suggests potential to beat ₹600 Cr.

Stated as target; contingent on Patna execution, SCADA/transmission ramp, order conversions. Order book depth supports, but execution-dependent.

H1 delivered 14.5%; management explains Q-to-Q variation due to project mix (some high-margin, some low). Annual 15% reaffirmed multiple times. Finance cost improvement aids margins.

Target 10% product revenue FY28 to lift blended margins. Capacity available (5–10% FPI utilization), but execution/demand-dependent.

INR640 Cr Patna project front-loaded; mobilization of additional people/equipment for multiple states. Total capex not quantified but expected to decline post-H2 as Patna winds down.

Patna (₹640 Cr), Punjab/Odisha ramps require scaling site teams, vendors, equipment. Prior largest ₹120 Cr. Miss here would derail FY27 revenue target.

H1 OCF -₹12 Cr despite ₹20 Cr PAT. Receivables 150-day cycle; Patna project front-loads receivables. Management expects cash to stay negative while growing 70%+. Refinance risk if growth stalls.

Debt ₹160 Cr vs ₹130 Cr guided (23% miss). Debt-equity 1.2–1.3x vs <1.2x. Management cites bidding bank guarantees. Further debt rise for capex/growth could strain ratios if revenue misses or interest rates rise.

Power T&D = 87% of order book (₹929 Cr); govt utilities/PSUs = 90%. Single-sector/customer-type concentration. Government policy changes (as seen in J&K, Haryana) can scrub orders.

J&K transmission tender L1 awarded, then held due to state policy. Haryana/UP tenders scrapped (document issues). Government switching procurement models or vendor preferences could derail bid pipeline.