Electrical Equipment Archives - Page 2 of 4

ABB – ABB India – Q4 FY26 Earnings Call – 8-May-26

ABB’s topline growth hinges on backlog execution and macro stability, while margins remain hostage to forex/commodity volatility and pricing power—structural headwinds offset by cyclical demand resilience in data centers and infrastructure.

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Also see: ABB – ABB India – Q1 FY26 Financial Results – 8-May-26

3-Scenario Framework

📊 Base Case (60% Probability)

Key Variables: Stable INR, commodity prices plateau, West Asia crisis resolves by H2 2026.
Outcome: Revenue grows 10–12% YoY (backlog execution), margins recover to 14–15% (pricing + volume scale), cash flow remains robust (INR 6,000+ crores). Data center and rail orders sustain momentum, while Automation picks up in H2.

GVT&D – GE Vernova T&D India – Q4 FY26 Financial Results – 18-May-26

GVT&D’s FY26 delivered ₹62 Bn revenue with 28.6% EBITDA and ~20% net margins, strong FCF, and clean balance sheet. Customer advances reinforce order‑book strength. Risks: rising ICD exposure to GE ecosystem, inventory build ahead of revenue, and exceptional charge recurrence — key to compounding quality in next leg.

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🔍 Observations

Topline

Revenue surged 44.6% YoY to ₹62,063 Mn in FY26, reflecting accelerating T&D capex demand from utilities and industrial customers.
Q4FY26 revenue at ₹16,371 Mn grew 42.0% vs Q4FY25, confirming the full-year momentum was not back-end loaded — broad-based execution across quarters.
Sequential Q4 dip vs Q3 (₹17,006 Mn) is marginal at 3.7% and unremarkable given Q3’s exceptionally high delivery quarter.

Bottomline

Net profit doubled (+102.7% YoY) to ₹12,333 Mn, outpacing revenue growth by a wide margin — operating leverage is clearly at work.
EPS jumped to ₹48.16 from ₹23.76, on an unchanged share count, making the earnings accretion entirely organic.
Exceptional item (net ₹635.7 Mn charge in FY26, zero in FY25) slightly depressed reported PBT; underlying pre-exceptional PBT grew 109% YoY to ₹17,133 Mn.

Margins

EBITDA margin expanded ~810 bps YoY to 28.6% (FY26: ₹17,745 Mn vs FY25: ₹8,813 Mn), driven by operating leverage and mix improvement.
Raw material & project cost intensity fell from 61.8% to 58.0% of revenue — execution efficiency and better project pricing are flowing through.
Net profit margin expanded from 14.2% to 19.9% — a 570 bps improvement on a revenue base that itself grew 45%.

Growth Trajectory

Revenue CAGR implied over the FY25–26 base is 44.6%; the order-book-driven nature of this business suggests multi-year visibility if intake remains strong.
Q4FY26 EBITDA margin at 29.5% holds above the full-year 28.6%, signalling no margin dilution as the year progressed — execution quality is improving, not fading.
Pre-exceptional PBT growth of 109% YoY on 45% revenue growth demonstrates scaling economics; margin trajectory is the core re-rating catalyst here.

KEC – KEC International – Q4 FY26 Financial Results – 16-May-26

KEC’s FY26 shows EPC margin recovery, Others scaling 23%, and DSCR gains, but FCF remains negative with ₹18,600 Cr receivables vs ₹6,160 Cr equity. FY27 re‑rating hinges on margin expansion plus WC normalisation — until OCF turns positive, profitability remains incomplete for long‑term investors.

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🔍 Observations

Topline

FY26 revenue ₹23,506 Cr vs ₹21,847 Cr in FY25 — 7.6% YoY growth; healthy but decelerating vs prior cycles
Q4FY26 revenue ₹6,390 Cr — down 7% vs Q4FY25 (₹6,872 Cr), snapping the sequential recovery trend from Q3FY26
EPC segment drove 93% of FY26 revenue (₹21,988 Cr); Others (cables/civil) growing faster at 23% YoY (₹1,806 Cr → ₹2,217 Cr)

Bottomline

FY26 PAT ₹606 Cr vs ₹571 Cr — 6.1% YoY growth; thin improvement despite meaningful revenue scale-up
Q4FY26 PAT ₹193 Cr vs Q4FY25 ₹268 Cr — 28% YoY decline; Q3FY26 PAT ₹127 Cr was distorted by ₹58.78 Cr exceptional item charge
Effective tax rate moderated in FY26 (23.3%) vs FY25 (21.5%) due to lower deferred tax benefit — slight PAT headwind

Margins

FY26 operating margin 7.06% vs 6.88% in FY25 — 18 bps expansion; marginal but directionally positive
Q4FY26 EBITDA margin 7.01% vs 7.84% in Q4FY25 — 83 bps YoY compression; seasonal pattern not repeating at same intensity
Net margin flat: FY26 at 2.58% vs 2.61% in FY25 — finance costs consuming margin gains (₹664 Cr in both years)

Growth Trajectory

Revenue CAGR subdued; 7.6% YoY in FY26 is below the double-digit trajectory needed to re-rate the stock
Others segment (cables, civil) growing at 23% YoY — emerging as a meaningful margin and revenue diversifier
Segment EBITDA: EPC ₹1,513 Cr (+10.2% YoY), Others ₹146 Cr (+11.5% YoY) — both segments tracking ahead of revenue growth, suggesting operational leverage is building

TDPOWERSYS – TD Power Systems – Q4 FY26 Financial Results – 14-May-26

TD Power Systems’ FY26 delivered 45% revenue surge with clean earnings, debt‑free balance sheet, and accelerating Q4 run‑rate. Risks: receivables outpacing revenue, thin FCF, and 100 bps margin compression despite volume growth. FY27 valuation hinges on receivable discipline and margin stabilisation for sustained re‑rating.

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🔍 Observations

Topline

Revenue grew 45.2% YoY (₹1,27,876 Lakhs → ₹1,85,623 Lakhs) — exceptional scale for an industrial capital goods manufacturer; Q4FY26 alone at ₹58,919 Lakhs surged 69.2% vs Q4FY25 (₹34,821 Lakhs).
The Q4FY26 quarter represents 31.7% of full-year revenue (₹58,919 / ₹1,85,623), indicating strong year-end order execution and delivery concentration — typical for project-driven capital goods businesses.
Sequential revenue grew 33.1% from Q3FY26 (₹44,268 Lakhs) to Q4FY26 (₹58,919 Lakhs), confirming a strong order pipeline being executed at pace.

Bottomline

Net profit grew 36.8% YoY (₹17,458 Lakhs → ₹23,877 Lakhs); Q4FY26 net profit at ₹7,219 Lakhs was 36.2% above Q4FY25 (₹5,302 Lakhs).
PBT grew 40.8% (₹23,165 Lakhs → ₹32,612 Lakhs) — profit growth slower than revenue because material costs scaled proportionally with the order mix; no exceptional items in either year.
EPS grew 36.8%: ₹11.18 → ₹15.29, with near-identical basic and diluted (negligible dilution from ESOP).

Margins

EBITDA FY26: ₹32,612 + ₹190 + ₹2,299 = ₹35,101 Lakhs on revenue of ₹1,85,623 Lakhs = 18.9%; FY25: ₹23,165 + ₹306 + ₹1,970 = ₹25,441 Lakhs on ₹1,27,876 Lakhs = 19.9% — 100 bps compression despite 45% volume growth.
Net margin compressed from 13.7% to 12.9% (₹23,877 / ₹1,85,623 vs ₹17,458 / ₹1,27,876) — material costs as a proportion of revenue remained sticky, limiting operating leverage realisation.
Cost of materials consumed grew 43.4% (₹89,303 Lakhs → ₹1,28,068 Lakhs) — almost exactly in line with revenue growth, preventing margin expansion.

Growth Trajectory

Q4FY26 revenue at ₹58,919 Lakhs annualises to ~₹2.36 Lakh Lakhs, representing a potential FY27 exit rate well above FY26’s ₹1,85,623 Lakhs — run-rate trajectory is steep.
Trade receivables grew 69.6% (₹43,734 Lakhs → ₹74,209 Lakhs), outpacing revenue growth of 45.2% — DSO has worsened, suggesting longer payment cycles on larger contracts.
Employee costs grew 34.9% (₹12,275 Lakhs → ₹16,557 Lakhs) — below revenue growth, demonstrating workforce productivity leverage.

THERMAX – Thermax Ltd – Q4 FY26 Earnings Call – 8-May-26

Thermax’s topline growth hinges on execution pace and macro stability; margins resilient in Industrial Infra but vulnerable in Industrial Products; working capital normalization critical for cash flow.

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Also see: THERMAX – Thermax Ltd – Q4 FY26 Financial Results – 7-May-26

3-Scenario Framework

📊 Base Case (50% Probability)

Key Variables: Moderate Middle East disruption + steady domestic demand.
Outcome: Revenue grows 10–12% with supercritical order ramping up but data centre pipeline slower to materialize; margins stable (raw material pressures offset by new order pricing). Working capital improves gradually; legacy orders close as planned.

WAAREEENER – Waaree Energies – Q4 FY26 Earnings Call – 30-Apr-26

Waaree Energies’ topline growth hinges on policy execution (ALMM) and US capacity scaling, while margins depend on cell self-sufficiency and commodity hedging; bottomline resilience requires BESS/adjacency ramp-up to offset cyclical solar pressures.

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Also see: WAAREEENER – Waaree Energies – Q4 FY26 Financial Results – 29-Apr-26

3-Scenario Framework

📊 Base Case (50% Probability)

Key Variables: ALMM II delayed by 3–6 months, commodity prices remain volatile, US capacity scales but FEOC compliance adds cost.
Outcome: FY27 EBITDA at INR 7,200 crore (mid-guidance), 22–23% margins as cell capacity ramp-up offsets DCR mix dilution. BESS contributes 5–10% to FY28 revenue; working capital normalizes to 60 days. ROCE at 28–30%.

ABB – ABB India – Q1 FY26 Financial Results – 8-May-26

ABB India’s Q1 CY26 shows margin compression, Automation contraction, and earnings flattered by a divestiture gain. Cash‑rich, debt‑free, and Robotics exit simplifies portfolio, but ₹1,568 Cr proceeds’ allocation is key. Valuation should anchor on declining ₹16.14 EPS from continuing ops; margin and Automation recovery are critical.

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🔍 Observations

Topline

Q1 CY2026 revenue from continuing operations: ₹3,184 Cr, up 5.8% YoY (vs ₹3,010 Cr in Q1 CY2025); sequentially down 6.9% from Q4 CY2025’s ₹3,423 Cr.
Electrification leads segment mix at ₹1,564 Cr (49% of gross revenue), growing 15.2% YoY; Motion contributed ₹1,161 Cr (+5.9% YoY).
Automation contracted sharply — ₹500 Cr vs ₹586 Cr in Q1 CY2025 (-14.7% YoY) and ₹652 Cr in Q4 CY2025 — the weakest segment this quarter.

Bottomline

Continuing operations PAT: ₹342 Cr vs ₹457 Cr in Q1 CY2025 — a 25.2% YoY decline. (341.91 vs 457.31, verified.)
Discontinued operations contributed ₹1,442 Cr PAT this quarter, dominated by the ₹1,658 Cr profit on sale of the Robotics & Discrete Automation business — one-time, non-recurring.
Reported total PAT of ₹1,784 Cr is heavily distorted; recurring earnings power is materially lower.

Margins

Continuing operations PBT margin: 14.5% (₹462 Cr on ₹3,184 Cr revenue) vs 20.4% in Q1 CY2025 (₹614 Cr on ₹3,010 Cr) — a 590bps YoY compression. (Verified: 461.87/3184.06 = 14.5%; 613.66/3010.07 = 20.4%.)
Raw material + stock-in-trade + subcontracting as % of revenue: 63.3% in Q1 CY2026 vs 60.7% in Q1 CY2025 — input cost pressure is real. (1644+241+118−52 = 1,951 / 3,184 = 61.3% net of inventory build; gross: 2,003/3,184 = 62.9%.)
Other income (₹100 Cr) contributed meaningfully to PBT — without it, operating PBT margin would be ~11.4%.

Growth Trajectory

Full-year CY2025 revenue: ₹12,504 Cr. Q1 CY2026 annualised run-rate implies ~₹12,736 Cr — modest organic growth trajectory.
Electrification sustaining double-digit YoY growth; Motion steady; Automation a drag — segment divergence is widening.
EPS from continuing operations: ₹16.14 in Q1 CY2026 vs ₹21.58 in Q1 CY2025 — 25.2% YoY decline signals earnings quality erosion from core business.

THERMAX – Thermax Ltd – Q4 FY26 Financial Results – 7-May-26

Thermax’s FY26: PAT +21.5% (tax‑aided) vs sluggish 3.1% revenue. Positives: Industrial Infra recovery, Green Solutions inflection. Risks: Chemicals margin deterioration, OCF conversion halved, ₹1,392 Cr CWIP and ₹952 Cr capex amid rising borrowings/receivables. FY27 hinges on execution quality to validate investment phase vs balance sheet strain.

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🔍 Observations

Topline

Revenue grew 3.1% YoY (₹10,369 Cr → ₹10,694 Cr FY26); Q4FY26 at ₹3,428 Cr was the strongest quarter, up 12.5% YoY vs Q4FY25’s ₹3,046 Cr — suggesting H2 loading continues.
Industrial Products led with ₹5,096 Cr (+12.5% YoY), while Industrial Infra contracted to ₹4,348 Cr (–7.4% YoY), masking headline resilience.
Chemicals declined marginally (₹763 Cr → ₹758 Cr); Green Solutions grew 6.1% (₹690 Cr → ₹732 Cr) off a small base.

Bottomline

PAT (before minority) rose 21.5% YoY (₹669 Cr → ₹812 Cr); basic EPS improved from ₹30.35 to ₹36.85 — clean earnings expansion despite muted revenue growth.
PBT at ₹1,008 Cr includes ₹61.21 Cr exceptional gain; stripping that, normalized PBT ≈ ₹947 Cr vs ₹884 Cr prior year — still +7.1% organic growth.
Effective tax rate dropped to 19.4% (FY25: 24.4%), partly from a ₹92.15 Cr deferred tax reversal — a meaningful tailwind that won’t recur mechanically.

Margins

Segment EBIT margin (segment profit / segment revenue): Industrial Products 10.6% (FY25: 11.7%) — compressed. Industrial Infra 5.0% (FY25: 2.3%) — sharp recovery. Chemicals 7.1% (FY25: 16.0%) — severe deterioration.
Reported EBITDA proxy (PBT + finance costs + D&A – other income): ₹1,008 + ₹140 + ₹208 – ₹267 = ₹1,089 Cr; EBITDA margin ≈ 10.2% on revenue of ₹10,694 Cr.
Employee costs grew 11.6% YoY (₹751 Cr → ₹838 Cr) while other expenses grew 12.7% (₹1,107 Cr → ₹1,248 Cr) — cost escalation outpacing 3.1% revenue growth.

Growth Trajectory

Revenue CAGR remains subdued at low single digits; profit growth outpaces revenue via mix improvement and lower tax, not operating leverage.
Industrial Infra’s turnaround (₹110 Cr → ₹218 Cr segment profit) is the single biggest earnings driver this year — sustainability depends on order execution pipeline.
Chemicals’ collapse (₹122 Cr → ₹54 Cr segment profit, –56%) is a structural concern, not a quarterly blip — warrants close monitoring.

AVALON – Avalon Technologies – Q4 FY26 Financial Results – 6-May-26

Avalon’s FY26 delivered 46% revenue and 78% PAT growth with margin expansion, confirming operating leverage. Risks: near‑zero FCF, rising short‑term debt, and WC inefficiency. Q4 run‑rate supports FY27 visibility, but re‑rating hinges on receivables discipline and cash conversion; growth profile compelling for EMS‑savvy investors.

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🔍 Observations

Topline

Revenue surged 46% YoY (₹10,981M → ₹16,032M), with Q4FY26 alone at ₹4,799M — 40% above Q4FY25 (₹3,428M), signalling sustained demand acceleration, not a one-quarter aberration.
Sequential Q3→Q4 growth of 15% (₹4,175M → ₹4,799M) confirms momentum is building within the year, not plateauing.
Revenue scale has nearly 1.5x’d in a single year — exceptional for an EMS player and indicative of wallet-share gains or new programme ramp-ups with existing clients.

Bottomline

Net profit more than doubled YoY: ₹634M → ₹1,129M (+78%), with EPS rising from ₹9.62 to ₹16.95 (basic) — a significant re-rating trigger.
Q4FY26 PAT of ₹412M is 69% above Q4FY25 (₹243M), and 26% above Q3FY26 (₹326M) — sequential as well as annual acceleration intact.
Effective tax rate held steady at ~26.5% (₹407M on ₹1,536M PBT), so profit growth is operationally driven, not tax-benefit inflated.

Margins

EBITDA (PBT + Finance costs + D&A): FY26 = ₹1,536M + ₹150M + ₹336M = ₹2,022M on revenue of ₹16,032M → EBITDA margin ~12.6% vs FY25: (₹867M + ₹167M + ₹286M) / ₹10,981M = ₹1,320M / ₹10,981M = ~12.0%. Modest but meaningful 60bps expansion.
Net profit margin improved from 5.8% (₹634M / ₹10,981M) to 7.0% (₹1,129M / ₹16,032M) — 120bps expansion at PAT level, better than EBITDA expansion, reflecting lower finance costs as a share of revenue.
Employee costs rose from 18.1% of revenue (FY25) to 17.5% (FY26) — operational leverage visible in the largest cost head after raw materials.

Growth Trajectory

Revenue CAGR implied over 1 year: 46%. Raw material consumption grew from ₹7,188M to ₹11,061M (+54%), slightly outpacing revenue — worth monitoring for input cost pass-through efficiency.
PAT growth (78%) decisively outpacing revenue growth (46%) = positive operating leverage at work.
Q4FY26 run-rate of ~₹4,800M implies annualised revenue of ~₹19,200M — suggesting FY27 organic growth could sustain 15–20%+ even without fresh programme additions.

CGPOWER – CG Power – Q4 FY26 Financial Results – 6-May-26

CG Power’s FY26 upcycle: Power Systems margins rising, near‑zero debt, ₹3,000 Cr QIP. Risks: receivables outpacing revenue, deteriorating OCF compressing FCF. Semiconductor bet dilutes near‑term margins, absorbs capital before payoff. Industrial Systems margin erosion is immediate consensus risk; Q1FY27 commentary key for trajectory.

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🔍 Observations

Topline

Revenue scaled 25.3% YoY to ₹12,418 Cr in FY26, with Q4 FY26 posting ₹3,442 Cr — the strongest single quarter on record, up 25.0% YoY.
Power Systems drove outperformance: ₹5,138 Cr in FY26 vs ₹3,510 Cr in FY25 (+46.4% YoY), absorbing macro capex tailwinds in T&D and industrial power.
Semiconductors added ₹503 Cr in its first full year of operations (Axiro acquisition); Industrial Systems grew a modest 5.8% YoY to ₹6,747 Cr, indicating maturation in that segment.

Bottomline

PAT rose 23.2% YoY to ₹1,199 Cr in FY26; Q4 FY26 PAT of ₹363 Cr grew 32.5% YoY — acceleration in the exit quarter signals operational leverage kicking in.
Effective tax rate normalized to ~26.4% in FY26 (vs a distorted 27.8% in FY25 driven by ₹190 Cr deferred tax charge); current tax jumped to ₹471 Cr vs ₹185 Cr, confirming MAT credit exhaustion and shift to full tax paying status.
Employee costs surged 55.2% YoY (₹613 Cr → ₹952 Cr), reflecting headcount expansion tied to semiconductor operations and new business build-out — the single fastest-growing cost line.

Margins

Consolidated EBIT margin compressed to 13.3% in FY26 from 14.1% in FY25; Power Systems partially offset this by expanding EBIT margin to 21.8% (+280 bps YoY).
Industrial Systems EBIT margin contracted sharply from 11.6% to 9.3% — a 230 bps deterioration suggesting pricing pressure or cost absorption in that segment.
Semiconductor segment dragged consolidated EBIT by ₹108 Cr in FY26; excluding Semiconductors, consolidated EBIT margin would be materially higher, masking underlying segment-level strength.

Growth Trajectory

Three-year topline CAGR (implied from FY25 base of ₹9,909 Cr to FY26’s ₹12,418 Cr) reflects a step-change driven by organic Power Systems growth and inorganic Semiconductor addition.
QIP of ₹3,000 Cr in FY26 has nearly doubled equity base (₹4,038 Cr → ₹8,198 Cr), positioning the company to fund future capacity expansion without leverage — a structural inflection.
EPS grew from ₹6.38 to ₹7.72 (+21.0% YoY) despite the equity dilution from QIP and ESOP issuances, confirming that earnings growth outpaced share count expansion.