Tag: Electrical Equipment

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.

1–2 minutes

🔍 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.
Continue reading “CGPOWER – CG Power – Q4 FY26 Financial Results – 6-May-26”

BHEL – Bharat Heavy Electricals – Q4 FY26 Financial Results – 4-May-26

BHEL’s FY26 marks inflection: revenue scale, margin expansion, PAT tripled. Balance sheet clean with ₹11,867 Cr liquid, cash flow supported by advances. Risks: Q4 revenue concentration, ₹14,716 Cr opaque assets, inventory build. FY27 durability hinges on order inflow continuity and Q1–Q3 execution delivery.

1–2 minutes

🔍 Observations

🔎 Observations

Topline

  • Revenue from operations surged 19.2% YoY (₹28,339 Cr → ₹33,782 Cr), with Power segment driving 75% of incremental revenue (₹4,469 Cr added).
  • Q4 FY26 alone clocked ₹12,310 Cr — 37% of full-year revenue — confirming BHEL’s persistent H2/Q4-heavy execution skew.
  • Industry segment held steady at ₹8,375 Cr (+13.1% YoY), providing a cushion against Power lumpiness.

Bottomline

  • PAT tripled YoY (₹534 Cr → ₹1,600 Cr, +199.7%), with Q4 FY26 alone contributing ₹1,290 Cr — outsized quarter-end profit recognition.
  • EPS expanded from ₹1.53 to ₹4.60 (+200.7%), reflecting pure operating leverage with no equity dilution (share capital unchanged at ₹696 Cr).
  • Deferred tax expense of ₹535 Cr in FY26 vs. ₹189 Cr in FY25 indicates DTA utilization accelerating as taxable profits scale — effective tax burden remains low due to legacy DTA buffer (₹3,533 Cr on balance sheet).

Margins

  • EBITDA margin (excl. other income) expanded 252 bps YoY: 4.59% → 7.11%; Q4 FY26 spike to 14.38% reflects revenue-heavy quarter absorbing fixed costs fully.
  • Net profit margin more than doubled: 1.88% → 4.74% FY26; employee cost as % of revenue rose marginally (20.9% → 19.1% — actually improved), while other expenses fell from ₹2,329 Cr → ₹1,989 Cr (-14.6%), a meaningful efficiency gain.
  • Finance costs held flat at ~₹756 Cr despite short-term borrowings declining ₹845 Cr — interest burden stable, not worsening.

Growth Trajectory

  • Revenue CAGR implied over two years is strong, but Q4 concentration risk is structural: FY26 Q4/FY25 Q4 revenue grew 36.9% YoY — driven by execution acceleration, not new order wins alone.
  • Power segment EBIT margin (segment result/revenue): FY26: 9.65% vs. FY25: 5.81% — 384 bps expansion signals improved project mix and cost recovery.
  • Other income jumped 73.6% YoY (₹465 Cr → ₹808 Cr), partly driven by interest on bank balances (₹10,431 Cr parked) — a non-recurring tailwind that flatters PBT.
Continue reading “BHEL – Bharat Heavy Electricals – Q4 FY26 Financial Results – 4-May-26”

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

Waaree’s FY26 doubled revenue and profit with margin gains, low leverage, and solar dominance. Yet inventory/receivables growth drives negative FCF, making working capital intensity the key risk. FY27 hinges on WC cycle normalization and CWIP commissioning to align balance sheet quality with P&L strength.

1–2 minutes

🔍 Observations

Topline

  • Revenue from operations nearly doubled YoY — ₹14,445 Cr in FY25 to ₹26,537 Cr in FY26 (+83.7%), driven overwhelmingly by Solar PV Modules (₹12,957 Cr → ₹24,133 Cr, +86.2%).
  • Q4FY26 revenue hit ₹8,480 Cr — up 111.8% YoY vs Q4FY25’s ₹4,004 Cr — signalling accelerating momentum into year-end.
  • EPC segment nearly doubled too (₹1,559 Cr → ₹3,282 Cr, +110.5%), emerging as a meaningful second growth engine alongside modules.

Bottomline

  • PAT grew from ₹1,928 Cr to ₹3,884 Cr (+101.4% YoY) — profit growth outpaced revenue growth, a hallmark of operating leverage kicking in.
  • Attributable PAT (to parent) grew from ₹1,869 Cr to ₹3,709 Cr (+98.5%); NCI profit jumped from ₹61 Cr to ₹173 Cr, reflecting subsidiary scale-up.
  • Basic EPS nearly doubled: ₹68.24 → ₹129.10 (+89.2%), with no meaningful equity dilution.

Margins

  • EBIT (pre-unallocable): ₹4,981 Cr on ₹26,537 Cr revenue = 18.8% EBIT margin vs ₹2,361 Cr on ₹14,445 Cr = 16.3% in FY25 — 250 bps expansion.
  • EBITDA (EBIT + D&A of ₹990 Cr) = ₹5,971 Cr → 22.5% EBITDA margin vs (₹2,361 + ₹402 Cr) = ₹2,763 Cr → 19.1% in FY25 — ~340 bps improvement.
  • Net margin: ₹3,884 Cr ÷ ₹26,537 Cr = 14.6% vs ₹1,928 Cr ÷ ₹14,445 Cr = 13.3% in FY25 — clean bottom-line margin expansion alongside revenue scale.

Growth Trajectory

  • FY26 revenue of ₹26,537 Cr and Q4FY26 run-rate of ₹8,480 Cr implies an annualised pace exceeding ₹33,000 Cr — growth is not plateauing.
  • D&A nearly tripled (₹402 Cr → ₹990 Cr), reflecting aggressive capacity additions — the investment cycle is deep and ongoing.
  • Module EBIT margin: ₹4,423 Cr on ₹24,133 Cr = 18.3% vs ₹2,065 Cr on ₹12,957 Cr = 15.9% in FY25 — operational efficiency improving even at higher volume.
Continue reading “WAAREEENER – Waaree Energies – Q4 FY26 Financial Results – 29-Apr-26”

AVALON – Q3 FY26 Earnings Call – 5-Feb-26

AVALON’s topline growth is underpinned by diversified verticals and geographic expansion, but tariff policy and semiconductor execution remain key swing factors; bottomline leverage hinges on U.S. margin turnaround and working capital discipline, while margins face structural headwinds from tariffs but benefit from operating leverage and long-term contracts.

1–2 minutes

3-Scenario Framework

📊 Base Case (50% Probability)

  • Key Variables: Tariffs stabilize at 18%, semiconductor volume production begins FY’27, and BESS demand sustains.
  • Outcome: Revenue grows 25–30% (FY’27), with gross margins at 34–35% and EBITDA margins expanding to 12–13%. U.S. manufacturing turns EBITDA-positive by H2 FY’27; ROCE stabilizes at 18–20%. PAT grows 50–60% YoY.
Continue reading “AVALON – Q3 FY26 Earnings Call – 5-Feb-26”

THERMAX – Q3 FY26 Earnings Call – 5-Feb-26

THERMAX’s topline: 8–15% revenue growth (international-led, domestic lagging); Bottomline: 10–12% EBITDA margins (chemicals recovery critical); Margins: Structural headwinds (China, mix) offset by IP-driven niches (data center, carbon capture).

1–2 minutes

3-Scenario Framework

📊 Base Case (50% Probability)

  • Key Variables: International orders (data center/refinery) offset domestic weakness; chemicals EBITDA recovers to 12–13%.
  • Outcome: Revenue grows 10–12% YoY; EBITDA margins expand to 10–11%; FY27 EPS supported by TBWES capacity utilization.
Continue reading “THERMAX – Q3 FY26 Earnings Call – 5-Feb-26”

POWERINDIA – Q3 FY26 Earnings Call – 5-Feb-26

POWERINDIA’s base case supports 18–22% topline growth, 17–19% PBT margins, and 15–18% bottomline expansion, with HVDC execution and data center traction as swing factors; bear case hinges on execution risks, while bull case requires export/data center breakouts.

1–2 minutes

3-Scenario Framework

📊 Base Case (50% Probability)

Key Variables: (1) HVDC execution on track (Mumbai commissioned, Barmer bid won); (2) Domestic transformer demand sustains (data center/rail tailwinds); (3) Exports hold at 25–30%.
Outcome: Revenue grows 18–22% YoY, driven by HVDC recognition (10–12% of revenue) and data center/industrial orders (15–20% YoY growth). PBT margins stabilize at 17–19% as labor code impacts fade and operational leverage offsets commodity pressures. Export revenue flat at 25–30%, with FX tailwinds offsetting trade volatility. CAPEX catches up in H2, supporting FY27 capacity.
Implication: Topline: +18–22% YoY; Bottomline: +15–18%; Margins: 17–19%.

Continue reading “POWERINDIA – Q3 FY26 Earnings Call – 5-Feb-26”

ABB – Q4 FY25 Earnings Call – 23-Jan-26

ABB Outlook: Revenue growth of 8–12% hinges on private capex and exports, with downside if macro weakens. Structural cost pressures (QCO, wages) offset by volume leverage; PBT margin floor 15–16%, ceiling 18% in bull case. Margins stay range-bound unless premiumization or FX/commodity relief emerges.

1–2 minutes

3-Scenario Framework

📊 Base Case (50% Probability)

Key Variables: Private capex recovers in 2H2026 (government projects execute), QCO costs normalize by Q3, data center/hyperscale demand sustains (10–12% backlog).
Outcome: Revenue grows 8–10% YoY, PBT margin stabilizes at 16–17% (Labour Code offset by volume), EPS grows 10–12%. FCF improves (backlog conversion), dividend grows 5–7%. Stock trades as “secular growth + cyclical optionality”.

Continue reading “ABB – Q4 FY25 Earnings Call – 23-Jan-26”

TDPOWERSYS – Q3 FY26 Earnings Call – 30-Jan-26

1–2 minutes

3-Scenario Framework

📊 Base Case (50% Probability)

Key Variables: (1) INR 575–600Cr/quarter run-rate achieved, (2) FX tailwinds persist, (3) No data center slowdown.
Outcome: Revenue INR 2,300Cr FY27 (5% above guidance); EBITDA 19–20% (FX + pricing power). Free cash flow positive; ROCE expansion supports rerating.

Continue reading “TDPOWERSYS – Q3 FY26 Earnings Call – 30-Jan-26”

CGPOWER – Q3 FY26 Earnings Call – 27-Jan-26

CGPOWER’s topline growth (15–20% YoY) is underpinned by structural power demand and export diversification, but margin expansion hinges on Industrials recovery and semiconductor execution, with Power Systems as the stable anchor.

1–2 minutes

3-Scenario Framework

📊 Base Case (50% Probability)

  • Key Variables: Commodity prices stabilize; export momentum sustains (50%+ YoY growth); M2 semiconductor plant on track (Dec 2026).
  • Outcome: Power Systems margins hold at 20%+; Industrials margins recover to 10–12% by FY27. Transformer capacity expansion supports 15–20% revenue growth. Semiconductor drag reduces post-M2 ramp-up. EPS growth: 12–15% CAGR.
Continue reading “CGPOWER – Q3 FY26 Earnings Call – 27-Jan-26”

APARINDS – Q3 FY26 Earnings Call – 29-Jan-26

APARINDS’ topline likely tracks 20%+ CAGR on domestic resilience (renewables, railways, data centers) and U.S. order rebound, but margins face 100–150 bps compression from tariffs/commodities; bottomline hinges on capex utilization timing and transmission catch-up in H2 FY26.

1–2 minutes

3-Scenario Framework

📊 Base Case (50% Probability)

  • Key Variables: U.S. tariffs ease in H2 FY27; transmission additions catch up in Q4 (government concessions); commodity prices stabilize.
  • Outcome: Cable revenue grows 20–22% (INR 500 crore U.S. orders executed); conductor volumes at 8–9%. EBITDA margins hold at 9.5–10%. Capex utilization ramps in FY28; ROIC 12–14%. EPS grows 15–18% YoY, tracking guidance.
Continue reading “APARINDS – Q3 FY26 Earnings Call – 29-Jan-26”