This article first appeared on GuruFocus .
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Quarterly Revenue:INR474 crores, a 26% increase year-on-year.
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Quarterly EBITDA (excluding other income):INR31 crores, a 7% increase year-on-year.
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Quarterly EBITDA Margin:7%.
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Quarterly Profit After Tax:INR10 crores.
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Annual Revenue:INR1,758 crores, a 24% increase year-on-year.
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Annual EBITDA (excluding other income):INR147 crores, a 10% increase year-on-year.
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Annual EBITDA Margin:8%.
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Annual Profit After Tax:INR54 crores, a 3% increase year-on-year.
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Industrial Switchgear Revenue Contribution:56% for the full year, 51% for the quarter.
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Wires and Cables Revenue Contribution:43% for the quarter, 39% for the full year.
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Building Products Revenue Contribution:6% for the quarter, 5% for the full year.
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Export Contribution:15.6% for the quarter, 21% for the full year.
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Kaycee Industries Quarterly Revenue:INR17 crores, a 9% increase year-on-year.
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Kaycee Industries Annual Revenue:INR60 crores, a 13% increase year-on-year.
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Kaycee Industries Quarterly EBITDA:INR2 crores.
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Kaycee Industries Quarterly PAT:INR1 crore.
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Kaycee Industries Annual EBITDA:INR8 crores.
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Kaycee Industries Annual PAT:INR5 crores.
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Release Date: May 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Salzer Electronics Ltd ( BOM:517059 ) reported a 26% year-on-year increase in quarterly revenues, driven by strong demand in industrial switchgears, wires and cables, and building products.
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The company achieved a 24% year-on-year growth in net revenues for the full fiscal year, with significant contributions from high-demand products like three-phase transformers and wire harnesses.
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Exports contributed 21% to the company's full-year revenues, with strong sales from Europe.
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Salzer Electronics Ltd ( BOM:517059 ) announced a strategic partnership with Wirepas to enhance its smart electricity meters, indicating a focus on future-oriented business segments.
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The company is optimistic about long-term growth opportunities in India's electrical equipment industry, driven by infrastructure development, renewable energy investments, and the adoption of EV charging solutions.
Negative Points
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The EBITDA margin for the quarter stood at 7%, reflecting a decline due to elevated commodity prices and pricing pressures.
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Profit after tax showed only a modest year-on-year growth of 3%, indicating challenges in translating revenue growth into higher profitability.
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The company faced temporary challenges in exports due to geopolitical tensions in the Middle East, impacting operations in Saudi Arabia.
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Salzer Electronics Ltd ( BOM:517059 ) experienced increased costs in raw materials like plastics, silver, and copper, affecting margins by 2% to 3%.
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The wires and cables business, which constitutes a significant portion of revenues, operates at lower EBITDA margins of 4% to 5%, raising concerns about profitability in this segment.
Q & A Highlights
Q: How confident is Salzer Electronics in achieving the EBITDA guidance of 10% for FY27, given recent price hikes and market volatility? A: Rajeshkumar Doraiswamy, Joint Managing Director, stated that while they initially guided for a 9.5% to 10% EBITDA margin, unforeseen circumstances like commodity price increases and the Middle East conflict have impacted margins by 2% to 3%. A price increase in February 2026 will show its impact in Q1, and another price increase is planned for June 2026. They expect margins to stabilize in Q2 of FY27.
Q: What is the expected growth and contribution from the smart meter segment for FY27? A: Rajeshkumar Doraiswamy mentioned that while they expect to reach a top line of INR2,000 crores to INR2,200 crores from existing businesses, they are not committing to specific figures for the smart meter segment yet. They are in discussions with large AMI customers and will provide updates as they receive more information.
Q: What are the expectations for export growth and key target markets for FY27? A: Rajeshkumar Doraiswamy highlighted that North and South America, along with Europe, are the largest export markets. Despite a 5% year-on-year decline in exports due to US tariff issues and Middle East tensions, they aim to return to a 25% revenue mix from exports, focusing on these key regions.
Q: What are the margins expected in the EV charging business, and what is the revenue outlook for FY27? A: The EV charging business, through their subsidiary Ultrafast Chargers Limited, is currently at breakeven due to low volumes. However, they anticipate EBITDA margins of 12% to 15% as volumes increase. They expect around INR35 crores in revenue for FY27, with potential for revision based on performance in Q1 and Q2.
Q: What is the company's strategy regarding the high debt levels and potential demerger of the wires and cables business? A: Rajeshkumar Doraiswamy acknowledged the concern about high debt levels, particularly in the wires and cables business, which contributes lower margins. He mentioned that they are considering options to unlock shareholder value, including the possibility of a demerger, and will take these suggestions into account.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
