This article first appeared on GuruFocus .
Release Date: August 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Record Q1 revenue of INR1,310 crores, up 4.5% YoY, with EBITDA up 10% and margin expansion of 60 bps to 10.7%.
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PAT grew 26% to INR56.5 crores, driven by improved operational leverage, better project mix, and lower finance costs (3.6% of revenue vs. 4.2% YoY).
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Successfully raised INR433.5 crore via preferential equity from marquee investors, followed by a credit rating upgrade to A+ (stable), enhancing financial flexibility and lowering cost of capital.
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Highest-ever unexecuted order book of over INR9,200 crores, with fresh order inflows of INR1,674 crores and a record bidding pipeline of INR35,000 crores.
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Strong long-term growth outlook: expects INR90,000-1,00,000 crores of domestic transmission bids in FY27, a 50% jump in export order inflows, and new capacity expansion to 450,000 tonnes by H2 FY27.
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Improved project mix and near-complete exit from legacy low-margin contracts (now <5% of order book), supporting structural margin improvement toward the 12% aspirational target.
Negative Points
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Q1 revenue growth was modest at 4.5% YoY, impacted by geopolitical disruptions, West Bengal elections, and high shipping costs that delayed export dispatches and revenue recognition.
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Export order inflows were weak in the previous year, and current export customers are deferring shipments due to elevated freight rates, temporarily pressuring the engineering segment.
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Polymer segment revenue was muted in Q1 due to sharp commodity price fluctuations and cautious trade destocking, though margins were maintained.
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The company faces challenges in recruiting and retaining quality technical manpower, which could hinder execution amid high demand.
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FY27 revenue growth guidance of 15% is H2-weighted, with Q1 and Q2 expected to be slower due to monsoons and ongoing export logistics issues.
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Capacity expansion (75,000 tonnes) has been deferred by a few months, now expected to commission by end of Q2 FY27, which may limit near-term production capacity.
Q & A Highlights
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Q: What is the outlook for ordering activity in FY27 compared to the muted FY26, and what is the expected bid pipeline? A: The ordering environment has significantly improved. We expect bids of close to INR90,000 crores to INR1 lakh crores in the Indian transmission market this financial year, a substantial increase from the INR50,000-60,000 crores seen last year. This is boosted by intrastate projects now also coming through the TBCB route. We are confident FY27 will be much better than FY26 in overall ordering. (Unidentified Representative)
Q: Can you provide more color on the export revenue situation and the growth guidance for the year? A: Export ordering is not stopped or slowed down; it is just delayed due to temporary geopolitical and shipping cost issues. We are in advanced contract discussions and expect a more than 50% jump in export order inflow compared to last year. Despite Q1 growth of only ~5%, we maintain our 15% revenue growth guidance for FY27, as Q1 and Q2 are typically the slowest quarters due to monsoons. The growth will be a combination of all three segments, with infra expected to see higher growth. (Unidentified Representative)
Q: How much of the current INR9,200 crore order book will be executed by the end of FY27? A: Typically, our orders are executable over a period of 2 to 2.5 years. We believe that in FY27, approximately INR5,000 crores out of the INR9,200 crore order book will be executed, along with additional short-term orders that will come in during the year. (Unidentified Representative)
Q: What is driving the margin improvement, and is it sustainable or structural? A: The margin improvement is structural. Our long-term aspirational margin is 12%, and we are moving in the right direction. The benefits are coming from legacy low-margin contracts now being almost negligible in the order book, new contracts having better margin profiles, and our constant efforts on operational leverage. We also deploy measures like increasing inventory and hedging to manage commodity price fluctuations, which is why we delivered margin expansion despite cost inflation. (Unidentified Representative)
Q: What is the order inflow guidance for FY27, and how much of it is expected from exports? A: We should be able to achieve INR7,000 crores plus in order inflows for FY27, which would take our closing order book to INR10,000 crores plus. Out of this, we are budgeting about INR1,100 crores from exports, which represents a 50% jump over last year. (Unidentified Representative)
Q: Why is the engineering segment soft this quarter, and is this slowdown structural? A: The engineering slowdown is temporary and not structural. It is suffering from lower order intake last year, particularly on the export side, and current disruptions where customers are deferring shipments due to high shipping prices. However, the long-term outlook is very positive. We are guiding for a 50% jump in export order inflow this year, and with our new capacity coming online (total 450,000 tonnes), we will see a bounce back in engineering revenue from next year. (Unidentified Representative)
Q: How did the company manage to improve margins despite rising steel and aluminum prices in Q1? A: We are not that impacted by commodity price movements because we have a combination of firm price and variable price contracts. Variable price contracts get adjusted monthly based on commodity prices, and firm price contracts have a buffer built in. We also deploy measures like increasing inventory and partial hedging. Additionally, steel prices normalized back to pre-February levels by May, so the spike was temporary. (Unidentified Representative)
Q: What is the breakup of the order book between EPC (infra) and engineering product segments? A: Out of the total order book of INR9,200 crores, approximately INR1,800 crores is infra revenue order book (mostly T&D and some telecom, roughly 75-25 split). The order inflow this quarter of ~INR1,600 crores was almost all TNB, with about 25% related to infra and the balance 75% for the engineering portion. (Unidentified Representative)
Q: What are the main challenges or concerns for the company currently? A: The biggest challenge is quality manpower, especially on the technical side, both in manufacturing and project execution. With the spurt in demand, recruiting and retaining quality manpower is the biggest challenge. We manage this through a robust HR team and a strong graduate trainee program, taking in close to 250 graduate trainees annually from good institutions. (Unidentified Representative)
Q: How should one look at the export revenue mix target and the timeline to reach it? A: Our long-term aspirational target is for export order inflow to be 50% of our overall order inflow. This year, with exports translating to about 15% of total inflows, we can expect anywhere between 20% to 25% next year on a higher order inflow target. We are on the right track, with orders now flowing in from developed countries like the USA and Australia, which are our main targets. (Unidentified Representative)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
