Strong Q1 growth, but order pipeline delays cloud near-term outlook

₹7.3 Cr vs ₹4.33 Cr prior year = 68.5% growth

Management claim consistent with 68% YoY growth trajectory; supported by delivered ₹7.3 Cr

Q1 delivery: +68% YoY revenue, 17.4% NPM; but QoQ -58% drop signals Q1 exceptional, not baseline

Balance sheet assertions not contradicted by delivered results; consistent with declared NPM 17.4%

Pushed to 'by this FY or around same time in next FY'; analyst pressure suggests conversion delays

Prior call: ₹100 Cr inquiries, ₹10-15 Cr orders in hand, ₹25 Cr target by June. Current: ₹100 Cr still in evaluation, conversions pushed to 'by this FY or around same time in next FY' — effectively FY28 under analyst pressure

CRP pricing at ~10% vs peers at higher ratings (415-765 KV). Strategy: move upmarket via OEM collaboration then own relay manufacturing. No capex timeline given; execution risk high

Identified data center + energy storage as growing segment. Products in dev: flywheels, ultracapacitors, rectifiers. No specific revenue or timeline disclosed

Analyst questioned AAPM/EMAS/ultracapacitor timelines. Management: 18-24 months technical evaluation, then 'much, much longer' to break entry barrier. Commercialization 5+ years away

Philosophy: add value to existing applications, solve customer pain points. Ultracapacitors tech 15+ years with org. Applications: locomotives, army tanks, nanotechnology in missiles. Proprietary, can't disclose details due to customer commitments (Indian Army). Products made in India for nation-building.

CRP pricing ~10% plus. Competitors at 415-765 KV have higher margins. Our vision: move to higher ratings via OEM collaboration for relays, then own manufacturing. Supply chain for higher KV slightly stagnant but offers good margins. Type testing via PGCIL/KMA required for market entry.

Yes, recognized as 'make' by utilities like NTPC for extreme terrain vehicles. Roadmap: collaborate with relay manufacturers to move 220→415 KV. Future: own relay manufacturing and pool. Type certifications needed to establish market presence.

More than welcome. Coordinates via compliance officer.

Synergies in books (better revenues, performance) should be considered by investors. Free market; investors will definitely consider & incorporate in pricing in future.

Total inquiries ₹100 Cr quoted, orders in hand ₹10-15 Cr. Long-gestation projects. Inquiries still alive, should get good numbers this FY. Even if conservative on timeline stretch due to ecosystem/policy changes, expect near-about number by this FY or around same time in next FY.

Each product has own life cycle dependent on application, timing, location. New industries opening: Bus Transfer System (was GENS, now refineries, process, cement). AAPM interesting with Indian Army, more applications globally in future. Product life cycle philosophy.

Data centers developing in India. Product lines for energy storage. Applications for data centers: flywheels, ultracapacitors, rectifiers. Long-term basis for new industries.

Timelines vary by product and budget. Technical evaluation typically 18-24 months (prototype in field, observe efficiency, robustness). Breaking entry barrier takes 'much, much longer.' Current tech applicable in next 5 years; we started development 5 years ago.

Technology companies' books checked for R&D spend. We don't expense overheads (HR, procurements) as R&D; frugal basis. Capitalize R&D expenses as assets (help long-term, not just expense). Understand tech, make prototype, iterate, validate, market. Low spend justified by asset capitalization strategy.

Technology must be affordable to gain traction. When commoditized, customer-friendly. Currently focus on customer pain points where application is apt and creates big difference. Not our lookout right now.

Oil & refineries: Bus Transfer System (process industry apt). Prior: Dangote turnkey to Reliance for BTS. Refineries show good sunrise for BTS; we proved credentials. Ultracapacitor: defence + energy-starting (vehicles, autos, aerospace). Commercialization long-term.

Caveat: Q1 +68% was exceptional; QoQ -58% suggests baseline lower. Order pipeline (₹100 Cr inquiries) conversions uncertain & pushed to FY28 per analyst pressure

Q1 NPM 17.4% likely mix-driven (defense/project), not sustainable at baseline CRP (~10% margins). Upmarket CRP migration is multi-year; defense margins depend on approval gestation

Implies no major capex in near term; gradual deployment for CRP high-voltage manufacturing & defense product scaling

₹100 Cr inquiry pipeline stuck in evaluation; conversions explicitly pushed to FY28 under analyst pressure. Analyst (Dev) asked if ₹100 Cr pipeline conversions materialized; management hedged 'long-gestation, even if I become very conservative... by this FY or around same time in next FY'

CRP (bread-and-butter, ₹2.24 Cr) at ~10% margins while competitors at higher KV ratings (415-765 KV) earn more. Upmarket shift via OEM relay collaboration & eventual own manufacturing is multi-year with execution risk. Defense/project mix (₹1.56 Cr, high margin) is volatile

Ultracapacitor (AAPM, EMAS, nanotech variants) has 18-24 month technical evaluation phase, then 'much, much longer' to break entry barriers. Commercialization horizon 5+ years. Analyst (Dev) pressed on approval timeline & cost reduction; management provided vague response. R&D spend (₹45 Lakh) low relative to claimed product complexity

Analyst (Shivani) noted strong financial performance (↑revenue, ↑profit) but stock price has not reflected gains. Management deflected to 'free market,' implying lack of control over narrative or limited institutional interest. Signals potential valuation gap or liquidity risk that could constrain future fundraising

Q1 revenue ₹7.3 Cr is exceptional; management noted Q1 'normally pretty subdued' but 'this year we have had record numbers.' QoQ -58% sequential drop suggests baseline run-rate is much lower (~₹3-4 Cr). Management's claim 'next three quarters going to be very healthy' is undermined by order pipeline delays (pushed to FY28)