Strong order book, margin pain: Q1 stumbles, H2 recovery bet

₹442.7 Cr confirmed, growth 19.2% vs prior year Q1

Delivered margin compression confirmed; PBT decline aligns with PAT -20.7% YoY

Closing OB ₹21.8 Cr vs ₹20.74 Cr prior, 5.1% confirmed

Closing aftermarket orders ₹6.24 Cr, 115% YoY growth claimed; significant contributor to order book

Q1 delivered PAT -49.9% QoQ and revenue -34.9% QoQ; margin compressed 770bps; claims lack specificity on recovery magnitude

Domestic orders down 35.4% YoY; enquiries down in Q1; management hedging without timeline; no recovery signal yet

Domestic orders -35.4% YoY this quarter vs prior quarters' stronger domestic traction; enquiries also softened; cited as 'geopolitical' but broad-based with no recovery timeline.

Aftermarket orders +115% YoY to ₹6.24 Cr, now 39% of total order booking (vs 27% prior); geothermal, utility, refurb traction globally; higher margin offerings per management.

Export orders now 68% of total vs 47% prior; biomass, waste-to-energy, aftermarket gaining; supply-side deferrals (freight) mask underlying demand.

Prior medium-term PBT >20% target maintained, but Q1 miss and ongoing lumpiness introduce execution risk; no specific H2 margin guidance given.

NTPC is ₹175 Cr tech-validation project taken at negligible margins; freight rate spike 3-4x deferred exports; domestic mix depressed margins; no exact NTPC revenue quantum disclosed.

Enquiry book is vague demand signal; orders finalize 6-12 months post-enquiry; current quarter softening will show in future order bookings; Indian market broad-based decline but not material given large historical pipeline.

~₹175 Cr remains to execute; ~40% Q1+Q2, rest Q3; project commissioning Q2/early Q3; no exact Q1 revenue quantum shared.

30-70% varies by order; fixed-price contracts so no pass-through; company bears commodity risk; margins de-risked at booking time.

Multiple enquiries in US from data-centre segment; still in conversion phase; hopeful for order in FY27; long gas-turbine lead times (4 yrs) driving interest in alternatives.

Yes; strong growth across sectors, regions (Africa, SE Asia, India); utility segment now higher value-add; refurb + gas turbine MRO expanding.

FOB terms; clients bear freight. Clients deferred shipments due to 3-4x freight spike.

<10% of reported order booking from US facility; US utility segment licensing/certification slow; market opportunity high but execution delayed.

FY27 facility utilization adequate, expecting break-even; FY28 product execution will be supported from India; optimistic given enquiry growth.

>12 months observed in US; water permitting, state-level licensing slower; product first, then refurb follow; seeing traction Q1/Q2 with material announcement expected later.

Old orders from commodity-volatile period taken at lower prices; BOP pricing stable; each order different margin; going forward, enquiry book shows substantially higher margin orders.

Only way is larger order book. Expanding product range (ORC, heat pump, CO2) to diversify demand. Will reduce lumpiness as book grows.

Approved by consultants/OEs; qualified to quote; competitive but few global players; local US workshop building customer confidence; optimistic on FY27 conversions.

Early stage enquiries only; long gestation (first-of-a-kind tech); working with EPCs/developers; will take longer than combined-cycle; no FY27 revenue expected.

<15 MW: 7-8 months; 15-45 MW: 9-12 months; 30-45 MW: 14-15 months; 100 MW: ~18 months.

Not tracked quarterly; measured via annual market share; dependent on market dynamics.

Performance in Europe very good, appreciated by customer; would not have pursued if not competitive; technology is validated, now must prove in India.

Very strong relationship with technical partner; nature of relationship not disclosed; committed to joint market approach.

Yes, qualified and capable to bid; will wait and watch policy developments.

Premature to estimate timeline; first-of-a-kind project; will wait to see what happens post-validation; optimistic on market opportunity.

Reaffirmed from prior call; no specific FY27 number given. Domestic order -35% and Q1 revenue miss raise near-term risk to growth narrative.

Reiterated from prior investor communications; Q1 delivered 15.7% PBT margin (vs prior 23.5%), contradicting near-term sustainability claim. H2 recovery implied but unquantified.

FY27 facility expected adequate utilization, target break-even; product execution supported from India. No FY27-28 capex plan shared.

Domestic product order booking down 35.4% YoY; enquiry pipeline also softened this quarter. Indian market weak across all industries per CEO; no recovery timeline given. Signals forward revenue risk.

NTPC CO2-based energy storage ₹175 Cr order taken at 'negligible and near zero margins' for technology validation. ~40% executed in Q1/Q2, rest in Q3. PAT likely already depressed in Q1; Q2/Q3 will see additional drag.

Freight rates up 3-4x; vessel availability constrained. Clients deferring export order shipments from Q1 to Q2/Q3, reducing near-term revenue recognition. Clients bear freight cost (FOB), but delivery deferrals create earnings lumpiness.

EBITDA margin fell 770 bps YoY (25.8%→18%); PBT margin fell 780 bps (23.5%→15.7%). Management attributes to (1) higher domestic share (lower-margin segment), (2) old orders from commodity-volatile period taken at depressed pricing, (3) NTPC zero-margin project. Risk is if commodity/pricing environment remains soft, margin recovery may not materialize as forecast.

US subsidiary incurred 'substantial loss' in Q1 despite no product orders yet. Facility operational but awaiting data-centre/combined-cycle enquiry conversions (>12 months timeline). Breakeven expected FY27 based on improving enquiries, but risk is if conversions slip.

Management acknowledges 'geopolitical uncertainties' causing quarterly and monthly lumpiness in dispatch and order booking; expects volatility to 'continue for couple more quarters' on both positive and negative sides. Implies hard to forecast quarterly earnings; investor communication risk.