Strong Q1 growth, but execution risk ahead in H2

400 kV contribution confirmed at 70.16% of Q1 revenue, up from 52% FY26, 10.3% FY24

Order book ₹2,026 Cr / ₹137.1 Cr quarterly = 14.8 quarters (4+ years visibility at current run rate)

Gross margin 41.9% vs 43.2% prior year (190 bps compression), explained by product mix shift but margin pressure evident

EBITDA margin 28.3% vs 22.8% prior year (550 bps expansion) confirmed; PAT margin 19.9% vs prior 19.6% (30 bps expansion)

Q2 (July-Sept) incremental orders ₹867.3 Cr confirmed, including large ₹250+ Cr orders from CPSE; order book execution risk remains in H2 FY27

400 kV contribution jumped from 52% FY26 to 70% Q1 FY27, driven by GEC-III/railway demand; pricing power high but margin profile needs monitoring.

INR 2,026 Cr (+11% QoQ) vs INR 1,818 Cr at FY26 end; Q2 added ₹867.3 Cr incremental (large CPSE orders), setting up strong H2 execution.

EBITDA margin 28.3% (+550 bps YoY) via operational leverage despite gross margin compression; PAT margin 19.9% confirms strong bottom-line conversion.

IEEMA price variation clause hedges input inflation. Mix improved toward 400 kV (higher margin). Contracts have fixed pricing with pass-through; margins stable.

Approximately 60,000-70,000 MVA annually; growing at 10%-15% driven by transmission and renewable integration.

Past export experience to US, Africa, SE Asia exists. Currently focused on India's abundant opportunity. Export revisit in 3-4 years if needed.

Yes, multi-decadal structural tailwind from intra-state transmission. Sector poised for strong growth.

Transformer has higher margin than EPC. 400 kV, Scott, shunt reactors all have similar margin profile on a gross level.

Yes. Railways own estimate ~1,000 traction substations, 2 transformers each = ~2,000. INR 20,000 Cr market opportunity.

Demand will sustain all supply coming online over 2-year qualification cycle. Margins stable across product categories.

We don't really disclose the bid pipeline number; we see good opportunities with various customers.

Yes, GECIII could lead to significant uptick in 400/500 MVA, supported by strong order pipeline.

No one-offs. This is pure operational margin similar to full-year FY26.

Railway's traction substation requirement ~1,000 units; 2 transformers each; INR 20,000 Cr market over 5-10 years. Only 5 manufacturers qualified.

Yes, H1 softer, H2 heavier is industry norm and expected to continue.

Majority of power transformer order book is 400 kV (roughly 70-80% implied from Q1 revenue split).

Guiding similar EBITDA margin as FY26; Q4 is biggest execution period. Margins expected stable.

Q1 margin very similar to full-year FY26 margin; no one-offs, pure margin.

Similar YoY growth expected for FY28; capacity addition planned by FY29 to support further growth.

Shunt reactors are 10-15% of order book; steady-state contributor to revenue.

24-month execution window. Focus on 400 kV, Scott-connected, shunt reactors; 220 kV and below lower priority.

FY24 was certifications year (18-24 mo lead time); not a business weakness. Once certs obtained, order intake jumped, leading to Q1 FY27 growth.

Order book execution will drive ramp; new capacity addition in FY29 will extend utilization headroom.

Highly variable by product mix and rating. Last year roughly 6.1 lakhs per MVA; will vary.

Don't maintain separate segment EBITDA. Directionally, transformer margin is higher than EPC.

Rough math checks out but difficult to give exact number. FY29 new capacity planned for growth beyond FY28.

New entrants expected 18-24 months post-certification. Strong demand will support multiple suppliers. No new entrants yet as of Oct 2026.

Sustainability initiative; savings calculation available separately (didn't provide on call).

Yes, 765 kV capacity suitable. Technology developed in-house; prototype ready.

Supply chain is key risk; managed via careful planning. Backward integration in components (tanks, panels, radiators, insulation) for control.

H2 remains key execution period; ₹2,026 Cr order book covers guidance with room to spare; 11% of Q1 revenue realized, ~₹813 Cr H2 needed

Q1 EBITDA margin 28.3% is ahead of historical; management said pure margin (no one-offs) but H2 seasonal strength should drive full-year ~25-26%

IPO proceeds being used; no specific quarterly phasing given; critical for FY28+ growth beyond FY27 guidance

Input costs (copper, steel) volatile; new competitors in 400 kV segment expected in 18-24 months could compress pricing despite demand growth; Q1 already shows 190 bps compression YoY

Must deliver ₹813 Cr revenue in H2 to hit ₹950 Cr FY27 guidance. Order book ample (₹2,026 Cr) but Q1 execution only 1,725 MVA (~40% of capacity). H2 is seasonally stronger but new CPSE orders may face delays

Current capacity 19.2K MVA (46% utilized in FY26) limits growth to ~15-20% annually unless expansion accelerates. New Gangol 18K MVA not ready until FY29, creating growth ceiling in FY27-28

Copper, steel, insulation materials subject to geopolitical/commodity cycles. Transformer tanks, control panels, radiators sourced externally create supply concentration risk

Recent Q2 orders include ₹250+ Cr large orders from CPSE (likely 1-2 major customers). Delays in large project execution (PGCIL, railways) could materially impact quarterly revenue

Management claims 765 kV technology developed in-house and prototype ready, but market has limited 765 kV tender opportunity. Readiness unproven in field