Strong order momentum offsets receivables drag; 765 kV entry sets up multi-year runway

Sept 30 book ₹565.99 Cr + Oct wins detailed (220 kV GETCO, underground cabling). Oct total ₹273.21 Cr

Q2 FY27 at 56.4% YoY, H1 at 46.3% YoY. On pace to exceed 50% full-year

Q2 EBITDA margin 15.25% vs guidance 12–13%; H1 margin 13.74%. Claim backed; guidance conservative

All Q&A responses confirm 12–24 month project cycle. 765 kV orders 24–36 months

11 kV PGVCL, 66 kV GETCO, UGVCL Ambaji orders received/in pipeline. Government ₹500 Cr first phase provision confirmed

GETCO tenders opened in Sept–Oct after slow start (prior call mentioned slowness). Oct alone delivered ₹273 Cr. Q2 order book stood ₹565.99 Cr; now ₹839 Cr post-Oct wins.

Management announced 765 kV capability build-out (GETCO planning 765 kV network; Power Grid tenders forthcoming). Company targeting these after 400 kV GIS success. Target ₹1,600 Cr bid pipeline for 765 kV included.

Trade receivables ₹237 Cr vs. ₹221.42 Cr March 2026. Absolute increase of ₹16 Cr despite revenue growth, driven by 24-month project cycle nearing completion (retention accumulation in final 3–4 billing periods).

Borrowing cost 9–10% (prior: not quantified). CRISIL upgrade expected to lower to 8%. Bank guarantee commissions rising due to large order base (e.g., 10% guarantee on GETCO contracts). Temporary headwind, mitigated by IPO proceeds deployment.

765 kV orders 24–36 months execution. Transmission line (79% H1 revenue) higher margin than sub-station (17%). Q2 elevated on project mix + Dholera GIS execution. Yearly range 12–13% EBITDA, 8–9% PAT maintained; quarterly variance on project mix.

Receivable days improved: 176 days (March 2023) → 140 (Mar 24) → 118 (Mar 26). Cash collects within 12–24 month project cycle. Current 45% reflects advanced execution stage on large orders (3–4 month final billing pattern). Normalizes after project closure.

Transmission line highest margin. Underground cabling lower but sufficient to maintain 12–13% EBITDA. Business decision: participate in Gujarat mission (structural opportunity), maintain blended margin discipline.

Don't want to discuss numbers. At much higher scale. Participating in 765 kV + GIS tenders; FY30 targeting ₹2,500 Cr revenue. Just commissioned 1 GIS substation; upcoming tenders will build GIS order book for higher revenue mix.

Pipeline conversion 3–4 months. Receivables: 84% of debtors <6 months old. Retention accumulated in final 3–4 months of 12–24 month projects; released after completion. Sept 26: 45% receivables; normalizes as projects close.

Substantial 765 kV orders in pipeline. Expanding state-wise; some bids in Delhi, Madhya Pradesh. No wins yet outside Gujarat. Dholera: Package 2 by Dec, Package 3 by March. This marquee success builds credentials for future GIS substation orders.

Historical 50% CAGR (3–4 years per call). Q2 at 56.4% YoY, H1 at 46.3%. Order book ₹839 Cr (1.9x Q2 revenue) supports full-year visibility. Execution timeline 12–24 months.

Reaffirmed on call despite Q2 delivering 15.25% EBITDA, 10.7% PAT. H2 expected 14–15% range (elevated project mix). Yearly guidance reflects normalized mix across transmission, sub-station, O&M.

Deployed in line with project requirements. Company notes capacity will scale with order book (execution 12–24 months allows just-in-time deployment). No specific FY27 capex target given.

Company newly entered 765 kV segment; largest prior project is 400 kV GIS Dholera. 765 kV orders require 24–36 month cycles, complex skills (pile foundation, river crossing, HVDC). Pipeline ₹1,600 Cr includes 765 kV; if execution slips or cost overruns occur, profitability at risk.

Trade receivables ₹237 Cr = 45% of Sept revenue. While management cites 12–24 month project cycle and cash collection within that window, absolute receivables spike from ₹221.42 Cr (March 2026) to ₹237 Cr. If project delays occur or payment terms extend, working capital stress rises. IPO cash deployment provides buffer, but runway finite.

Order inflow heavily dependent on PSU utilities: GETCO, Power Grid, municipal corporations. ₹273 Cr Oct wins include GETCO orders. ₹1,600 Cr bid pipeline skewed towards GETCO, Power Grid. If tender delays, budget cuts, or policy changes occur, order inflow dries up.

Borrowing cost 9–10% currently (vs. 8% expected post-CRISIL upgrade). Bank guarantee commissions rising due to large order base (10% performance guarantee on GETCO contracts). Finance cost as % of profit could compress margins if debt not de-leveraged rapidly.

If underground cabling orders (lower margin than transmission line) and O&M segment scale significantly, blended margin could compress below 12–13% EBITDA guidance. Q2 benefited from transmission line dominance (79% of H1 revenue) and Dholera GIS execution.