Unprofitable start contradicts 300bp margin promise

Revenue down 10.1% YoY; production gains locked in inventory due to shipping delays and prototype approvals

Q1 PBDIT margin 7%, implying 16%+ needed for 300bp uplift. Requires near 5x ramp in PBDIT from Q1 baseline.

Q1 hit by 600bp external headwinds (raw material 200bp, consumables 300bp, electricity 100bp), customer compensation lags by 1 quarter, recovery speculative

Order book reframed from prior 600-700 Cr reference to 500 Cr 'executable' for FY27, softly downgraded and now conditional on capacity ramp

Prior call reference was 600-700 Cr. Now positioned as 500 Cr 'executable' for FY27, later potential 600 Cr in FY28 with higher capacity. Soft reframing of execution risk.

Managing customer concentration by adding Nordex and Adani. Each new OEM can allocate 100-150 Cr, reducing Vestas dominance from 40-45% historically.

Diversifying beyond wind gearbox. BHEL coal-power castings critical import substitute; 8-9 month development cycle. Builds addressable market.

Margin impact Q1 driven by West Asia conflict (Furan Resin +60% from crude spike), commodity inflation (pig iron/CRC), shipping constraints, MSEDCL banking policy change. One-time solar retrospective hit this quarter. July utilization touched 85%, 3,200 tons production. Maintaining 500 Cr revenue and 300bp margin guidance.

We have good capacity and first quarter production was strong; it just did not convert to sales. Currently executing at much higher flow rate as things ease out. Machining process established, 50% customer approval, cycle times on track.

No. Everything produced was not sold due to shipping constraints and prototype approvals. Material produced; revenue recognition delayed. No change in realization price.

No, likely forex-related or export incentives. Entered PPA for 5MW wind power. 10MW captive solar covers one-third of energy needs. 50-60% power from own sources now. Realizations should move from 138-140 to 145+ levels.

Now call it executable order book, positioned at 500 Cr for current year considering various hurdles. In FY28 with higher capacity, can execute 600 Cr with same products/customers. Nordex US customers building inventory; delays managed. Domestic delays were prototype or LC issues, not reputation.

Want two or three good quarters of performance first. Targeting land acquisition by Dec or Mar. Next project initiation Q3 next year. Fundraising Q1/Q2 2028 ideal. Greenfield capex typically 15-18 months.

Received orders from L&T and BHEL for coal-based power plants. L&T development underway; BHEL PO this quarter (8-9 month development, critical import substitute). Mining sector strong order book from Terex due to Yen 20% appreciation vs Rupee; 5-10% landed cost advantage vs China. Wind is bigger opportunity due to US market incentives and China competitiveness gap.

No. Kolhapur is centrally located, equidistant to north and south. Two foundries increase costs and complexity. Developing locally allows sharing resources and infrastructure, reducing tech development time.

Adani 5MW parts exceed 30 metric tons, still require China imports (no Indian supplier yet). Already produce for 3.3MW platform (serial production). Supply bearing for 5.2MW (6-7 ton casting). Cannot attempt larger castings due to 30-metric ton limit. Offshore is 5-10 year play, low volumes early; requires port-side infrastructure we don't have. Strategy is onshore 3-4MW sweet spot.

Vestas largest for 15 years, sometimes 40-45%, may drop to 30% as we add capacity/clients (absolute revenue won't drop). Nordex becoming sizable. Third/fourth shuffle between Adani, Siemens, others.

Vestas asking for more allocation but we're committing capacity to new OEMs (Nordex, Adani) each allocating 100-150 Cr. Non-wind & gearboxes ~30% revenue, leaving ~400 Cr for wind. Stabilizing relationships with new OEMs while ramping existing.

Q1 delivered -10% YoY; needs strong Q2-Q4 ramp. Management cites inventory, prototype delays as timing issues, not demand destruction, but execution risk high.

Q1 PBDIT 7% vs 16%+ target implies need to nearly 2x margin. Requires volume leverage, cost pass-through and operational efficiencies not yet evident.

Greenfield capex 15-18 months; fundraising planned Q1/Q2 2028. Timing is post-FY27 guidance period, conditional on two or three good quarters performance first.

Net loss ₹10.1 Cr, NPM -13.3%. Company unprofitable despite new capacity coming online. Inventory buildup and sales lag indicate margin recovery timing at risk.

Production +10% YoY but revenue -10.1% YoY. Everything produced not sold due to shipping and prototype delays. Signals execution/demand timing risk, not just external logistics.

Management claims 600bp margin headwinds but only 200bp recoverable via indexation (1-quarter lag). Gap of ~200-300bp unresolved for 300bp full-year expansion target.

Vestas is largest customer for 15 years, representing 40-45% of revenue historically. Diversification plan relies on Nordex, Adani, and non-wind scaling. New customer ramps (Nordex, Vestas 4MW) face delays.

Current foundries cannot produce castings >30 tons. Adani 5MW parts exceed 30 tons, requiring China imports. Offshore wind (5-10+ MW) requires larger castings and port-side infrastructure not available in India.