Strong Q1 growth masks execution risks on capex delay

Delivered result ₹27.2 Cr; transcript reports ₹27.16 Cr; YoY growth matches 29.3%

Q1 EBITDA ₹3.98 Cr yields 14.7% margin; only 80-85% of input costs passed through; West Asia headwinds cited

Prior guidance: clean room ready mid-March 2026, production 90 days after HT connection (target March 31). Actual: power connected Aug 2026, production now Q3 (6+ month slip)

Current quarter ₹27.2 Cr; guidance ~10% growth to ₹30+ Cr vs prior 29.3% growth; implies significant slowdown

In-principle approval received; final sanction delayed to next week (as of call date Aug 13); not yet disbursed

Prior guidance: clean room ready mid-March 2026, production 90 days after HT connection (target March 31, 2026). Actual: transformer energized Aug 13, 2026; epitaxy production now Q3 FY'27.

Current quarter ₹27.2 Cr with 29.3% YoY growth. Management targeting ₹30+ Cr quarterly going forward, implying ~10% sequential growth vs 29% historical. Cites need for supply-chain optimization, back-end improvements.

Q1 EBITDA margin 14.7%. Management aims for 15-17% but acknowledged only 80-85% cost passthrough in Q1; geopolitical factors create uncertainty. No upgrade from prior 15-17% aspiration; maintained but conditional.

₹70 Cr bank loan application pending final sanction. Government subsidy ₹58 Cr received. Company contribution ₹70 Cr so far. Funding is NOT finalized despite in-principle approval.

Not yet. Targeting ₹30+ Cr quarterly this year. Will take 6-9 months. Need back-end supply chain work, productivity improvements.

Need new products. HPD (high power devices) penetration in India still low; more business from overseas. LPD reached saturation. Growth drivers: HPD India, new equipment products.

8%-10% of revenue as long-term policy. Advantage of being agile and innovative in small market.

Depends on geopolitical factors. Not fully in our control. We aim for 15-17% range.

Passed on 80-85%. Old orders with locked schedules couldn't be renegotiated; all new orders at new prices.

Phase 1: ₹225 Cr. Phase 2: ₹395-400 Cr. Total ₹618 Cr. FY'27 spend ₹100-120 Cr Phase 1 only.

Generally we don't give long-term commitments. Targeting 3-4x growth in top-line and more in bottom-line this year. No specific deadline for ₹X Cr revenue.

Government subsidy ₹58 Cr. Company contribution ₹70 Cr (+ ₹8-10 Cr non-CAPEX). Remaining ₹100 Cr being sought via ₹70 Cr bank loan.

Approached international customers in US, Taiwan. Indian govt labs interested. Have specs. Two reactors installed (4, 6, 8-inch). 8-inch for export; 4, 6-inch for India.

Following up. No update at this time. Marketing team also following up.

Epi wafers: 20-25% EBITDA margin. SiC products and devices would be better than epi.

Focusing on SiC to full potential first. GaN still has yield issues. Only 100V (charger) and 650V applications viable. SiC likely to capture power side of GaN market in 3 years.

Current baseline 85%. Target above 90%. Dicing/curve losses cannot control; focus on defect control.

Implied ~10% sequential growth. Requires HPD penetration India, equipment division traction. 6-9 months to achieve.

Production ramp contingent on manufacturing qualification (target 30 days), customer validation. International + Indian govt lab interest noted but no firm orders.

Q1 achieved 14.7%. 80-85% cost passthrough indicates margin pressure. Geopolitical factors outside control. Sustainability hedged.

Better than current 14.7%. Unproven at scale. No yield / manufacturing data yet.

Phase 2 timing still under discussion. Total Phase 1: ₹225 Cr. Funding: govt subsidy ₹58 Cr + company ₹70 Cr + bank loan ₹70 Cr (pending).

₹70 Cr bank loan final sanction pending (as of Aug 13). Odisha Phase 1 capex ₹225 Cr dependent on loan approval. Delays to loan approval would cascade to production timeline (currently Q3 FY'27).

Odisha epitaxy production target Q3 FY'27. Qualification and customer validation must complete within 30 days of commissioning. Richardson Electronics 20k SiC chip trial (ongoing since prior call) shows no progress. New customer wins are unproven.

Q1 EBITDA margin 14.7% vs 15-17% target. Only 80-85% of input cost increases passed to customers. West Asia geopolitical headwinds cited. Margin sustainability is hedged by management.

Current quarter ₹27.2 Cr with 29.3% YoY growth. Management targeting ₹30+ Cr quarterly going forward, implying ~10% sequential growth vs historical 29%. LPD (low power devices) has reached saturation; growth now dependent on HPD India penetration and new products.

Richardson Electronics trial (20k SiC chips) ongoing with no progress update. International customer pipeline early-stage (US, Taiwan approach, no firm orders). Epi wafer customer qualification unproven.