Record margin surge masks caution on sustainability

₹194.5 Cr vs ₹89.6 Cr H1 FY26 = 116.7% per Darshan, ~95% per mgmt (rounding variance)

₹55 Cr EBITDA on ₹194.5 Cr revenue = 28.3%, beat 24-25% prior guide

₹36.1 Cr PAT on ₹194.5 Cr = 18.6%, aligns with delivered NPM 18.4%

Stated explicitly, healthy 15-18 month execution visibility

Early commercialization only, type test pending couple weeks, full production timeline uncertain

Mgmt refused specific forward targets, cited cost savings offset by competitive pricing pressure

₹106 Cr of ₹220 Cr capex spent by Sept 30; balanced over next 12 months. 245 kV commercial by Q4.

Representation agreements concluded with Ensales, Gateway, EHV Solutions covering 27 states; small order book (₹40-50 Cr, 5-7% of total) but multi-year pipeline.

First Indian OEM to achieve IEEE 138/230 kV OIP seismic certification; validates high-voltage capability.

₹760 Cr (Sept 30) vs ₹400 Cr (Apr 1 FY27 start); record visibility, 15-18 month execution window.

28.1% achieved vs 24-25% prior guide; but no forward margin targets restated (hedging signal).

Keyur explicitly refused to commit to 32-35% margins post-integration: 'I would not want to make exact number till I have full production.'

Global <1%, India leading. Aiming 5% global share in 4-5 years while maintaining India leadership via 420 kV expansions.

Product mix, price realization, operations efficiency helped. Effort to maintain or improve in H2/FY28. No specific target given.

Both projects on track. Greenfield invoicing started, diverting orders from existing book. Brownfield Q3 completion, new capacity ramping H2.

Not tying to govt circulars. Increased order inflow from customers India/abroad already exceeds original targets. Executing 15-18 month pipeline.

Not giving specific guidelines. Want to do better each year but not commit to future numbers. Will know exact margin expansion from localization later.

86% is value. Volume close to 40%. Ratio will change once exporting from India; from next year mid expect export orders.

Bushings go into transformers; end-use varies (transmission, renewable, data center). Increasing renewable/data-center bushings but transmission still majority.

Representation agreements concluded couple weeks back. Orders 6-12/15 months timelines. Lead times longer locally. Ready mid next year for exports. RIP/OIP not exported yet.

5-7% today, ₹40-50 Cr out of ₹760 Cr total.

Commercial production started, initial results very encouraging. Type test couple weeks. Will continue imports (capacity not sufficient). Maintain import/local combination couple years.

No supply chain disruptions. Everything good for next couple months.

~90% at Halol. New facility ramping H2. Existing fully utilized. Likely zero bushings not invoiced.

Depreciation invested mainly in Sept (₹2.6 Cr → ₹4.4 Cr). Bulk flows H2. Want to maintain profit margins as last year despite 2.5-3x depreciation.

Two approvals: plant and product. Approval process filed for majority customers. New entrants announced; prepared for competition.

Greenfield ready by year-end (245 kV), 1.5 year for 550 kV. Units 1+2 invoice ₹900-1,000 Cr combined. Fully utilize by 2030-31.

18-20% on import/duty/freight. But customer wants localized pricing vs imported. Competition also offering from India. Maintain EBITDA or make it bit better.

Seller's market next 2-3 years. No excess capacity. Bushings niche product, high barriers. At least 5-6 years before margin bloodbath. Payback 4-5 years for new plants.

Trying to ensure linearity. H2 always outperforms H1 historically. Expect balanced H2 and H1.

Not reciprocal that higher voltage = higher profitability. Combination in project. Pricing depends on factory/capacity loading. Blended margin approach.

Taken over 9 months back (Dec), brought from loss to profit. Good synergies with Yash, Quality Power. Aiming growth path with professional management.

Bushing prices vary ₹30K-40L by voltage/class. Not giving average. Higher voltage enables larger revenues. Steep increase 245→420/550 kV expected.

Not equating capacity/volume/turnover to average number. Facility for RIP 24-550 kV entire range. Combined units ₹900-1,000 Cr potential.

Already have unexecuted orders for 420 kV. Invoice from this year (assembly model). Localized 245 kV Q4. 420/550 kV Q4 '28 or mid-28 max.

Receivables absolute number increased with revenue. Days remained 47 (same as prior). Advance to vendors explains other current assets ₹11 Cr → ₹40 Cr.

Demand increasing day by day regardless of tech. Don't see customers data-center orders stopping. Not the right person to comment on AI future.

~4,000 bushings H1 FY27 vs 2,950 H1 FY26 = 40% volume growth. Won't divulge kV-class breakdown.

Agreements now in place. Permitting approval deepens end-customer/OEM relationships. Global agents in ~30 countries. Expect results from US like other countries.

No major problem, no hiccup. Should be able to maintain what we are doing.

2030-31 is right time for ₹1,000 Cr. Expansion sufficient today. May need small incremental capex but not substantial. Strong internal accruals support.

Replied in earlier question; summary provided.

₹194.5 Cr H1 run-rate. H2 historically stronger. Order book ₹760 Cr covers 15-18 months.

Greenfield 245 kV Q4, 550 kV H2 FY28. Brownfield 245 kV commissioned. Execution timeline 4 years out.

US representation agreements concluded. Lead times 6-12 months. RIP/OIP not yet exported; timeline H2 FY28.

Beat via product mix, price realization, and operational efficiency. H2/FY28 target: maintain or improve (no specific % given).

Mgmt explicitly refused to commit. Keyur: 'I would not want to make exact number till I have full production.' Caution signal.

Depreciation ₹4.4 Cr H1; bulk backloaded H2. Want to defend profit margins as last year.

On track. Deploying capex ratably. Expected completion Q4 FY27 (245 kV) and H2 FY28 (550 kV).

Current greenfield/brownfield sufficient to reach ₹1,000 Cr. Internal accruals can fund marginal additions.

Hitachi, CG, and other players announced capacity additions for bushings. Post 2027-28, when plants online, pricing pressure expected. Mgmt acknowledges but downplays.

RIP localization in trial phase. Type test couple weeks pending. Commercial production timeline Q3/Q4. If delays occur or commercial yield lower than expected, margin targets at risk.

Company dependent on international vendors for RIP core supplies. Advance payments ₹29 Cr to secure slots. Geopolitical risks (component bans from China) could disrupt.

Current 28% EBITDA elevated by supply shortage and seller's market. Localization cost savings (18-20%) likely passed to customers due to Indian competition starting to offer locally. Mgmt explicitly refuses to commit to forward margin targets.

Greenfield ₹220 Cr project with multiple phases (245 kV Q4, 550 kV H2 FY28). Delays or execution issues could impact FY27/FY28 targets.

Depreciation ₹2.6 Cr H1 FY26 vs ₹4.4 Cr H1 FY27 (70% increase). Bulk of capex depreciation back-loaded to H2. Reported PAT may face headwind.