I. Power and Distribution Transformers
Power transformers handle large amounts of electricity at substations and power-generation facilities. Generator transformers connect power plant generators to the electricity network, while auto-transformers change voltage using a shared winding arrangement.
TARIL manufactures power transformers rated up to 1,000 MVA and for voltage classes up to 1,200 kV. MVA measures a transformer's power-handling capacity, while kV indicates its voltage rating.
Distribution transformers reduce voltage closer to end users, supplying electricity to homes, businesses and other consumers. The company also manufactures transformers for solar applications, helping connect renewable energy generation to the electricity network.
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Power transformers handle large amounts of electricity at substations and power-generation facilities. Generator transformers connect power plant generators to the electricity network, while auto-transformers change voltage using a shared winding arrangement.
TARIL manufactures power transformers rated up to 1,000 MVA and for voltage classes up to 1,200 kV. MVA measures a transformer's power-handling capacity, while kV indicates its voltage rating.
Distribution transformers reduce voltage closer to end users, supplying electricity to homes, businesses and other consumers. The company also manufactures transformers for solar applications, helping connect renewable energy generation to the electricity network.
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II. Furnace and Rectifier Transformers
TARIL manufactures transformers for industries that require large amounts of electricity. Furnace transformers supply the high electrical current needed by equipment such as electric arc furnaces, which melt scrap metal to produce steel, and other industrial furnaces used in metal processing.
Rectifier transformers work alongside systems that convert alternating current (AC) into direct current (DC). This is required for industrial processes such as electrolysis, metal refining and certain chemical applications.
These transformers are designed to handle the demanding electrical loads involved in such operations.
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TARIL manufactures transformers for industries that require large amounts of electricity. Furnace transformers supply the high electrical current needed by equipment such as electric arc furnaces, which melt scrap metal to produce steel, and other industrial furnaces used in metal processing.
Rectifier transformers work alongside systems that convert alternating current (AC) into direct current (DC). This is required for industrial processes such as electrolysis, metal refining and certain chemical applications.
These transformers are designed to handle the demanding electrical loads involved in such operations.
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III. Reactors and Specialised Transformers
TARIL also manufactures series and shunt reactors, which help control electrical power flows and manage voltage in transmission networks. These devices support grid stability, particularly as electricity networks become larger and more complex.
Its specialised products include locomotive traction transformers used in railway applications, earthing transformers that provide a grounding point for electrical systems, and equipment for specialised industrial applications.
The company is also pursuing entry into high-voltage direct-current (HVDC) converter transformers, which are used in systems that transmit electricity over long distances using direct current. However, this remains a qualification process, with commercial participation dependent on successful testing and customer approval.
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TARIL also manufactures series and shunt reactors, which help control electrical power flows and manage voltage in transmission networks. These devices support grid stability, particularly as electricity networks become larger and more complex.
Its specialised products include locomotive traction transformers used in railway applications, earthing transformers that provide a grounding point for electrical systems, and equipment for specialised industrial applications.
The company is also pursuing entry into high-voltage direct-current (HVDC) converter transformers, which are used in systems that transmit electricity over long distances using direct current. However, this remains a qualification process, with commercial participation dependent on successful testing and customer approval.
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The Markets Driving Demand
Investment in power grids and transmission networks drives demand for TARIL's products. New substations and transmission lines need transformers and reactors, while solar and wind projects need transformers to connect them to the grid.
Demand also comes from industries that use large amounts of electricity, such as steel and metal plants, which need specialised transformers. Railway electrification, EV infrastructure and other energy projects add to demand for electrical equipment.
Data centres are another market for the company, which already supplies large facilities in India and abroad. The company has also won its first nuclear-sector order to supply generator transformers for NPCIL's Kaiga Units 5 and 6. More nuclear projects could bring repeat orders in the future.
Investment in power grids and transmission networks drives demand for TARIL's products. New substations and transmission lines need transformers and reactors, while solar and wind projects need transformers to connect them to the grid.
Demand also comes from industries that use large amounts of electricity, such as steel and metal plants, which need specialised transformers. Railway electrification, EV infrastructure and other energy projects add to demand for electrical equipment.
Data centres are another market for the company, which already supplies large facilities in India and abroad. The company has also won its first nuclear-sector order to supply generator transformers for NPCIL's Kaiga Units 5 and 6. More nuclear projects could bring repeat orders in the future.
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Exports offer another growth opportunity, contributing around 8% of Q2 FY27 revenue and 15% of the order book. In September 2026, TARIL set up a UK subsidiary to support customers and expand in the UK and Europe. Over time, it plans to add local sales and assembly capabilities, with the potential to establish a manufacturing base in the region.
BESS transformers are a new opportunity for the company. It had not yet started executing any orders, but inquiries were ongoing, and management expected some orders in Q3 FY27. The next step is to convert these inquiries into orders and execute them profitably.
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BESS transformers are a new opportunity for the company. It had not yet started executing any orders, but inquiries were ongoing, and management expected some orders in Q3 FY27. The next step is to convert these inquiries into orders and execute them profitably.
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Inside the Factories
The company has three manufacturing facilities in Gujarat: Moraiya, Changodar and Odhav. Moraiya focuses on large and high-voltage transformers, while Changodar makes distribution, renewable-energy and power transformers. Odhav manufactures smaller transformers.
After the Changodar expansion, TARIL's total manufacturing capacity will reach around 75,000 MVA. MVA measures how much electrical power equipment can handle, not how much the company actually produces.
The company has three manufacturing facilities in Gujarat: Moraiya, Changodar and Odhav. Moraiya focuses on large and high-voltage transformers, while Changodar makes distribution, renewable-energy and power transformers. Odhav manufactures smaller transformers.
After the Changodar expansion, TARIL's total manufacturing capacity will reach around 75,000 MVA. MVA measures how much electrical power equipment can handle, not how much the company actually produces.
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TARIL produced around 9,500 MVA of transformers in Q2 FY27. Management aims to raise capacity utilisation to around 90%, but has not set a timeline for achieving this.
The challenge is to convert installed capacity into actual production. Manufacturing throughput, access to critical materials, testing requirements, customer approvals and delivery schedules will determine how quickly the company can fulfil orders and improve utilisation.
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The challenge is to convert installed capacity into actual production. Manufacturing throughput, access to critical materials, testing requirements, customer approvals and delivery schedules will determine how quickly the company can fulfil orders and improve utilisation.
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Scaling Up Manufacturing
Changodar's capacity is being expanded from 12,000 MVA to 35,000 MVA at a cost of around ₹150 crore. The project was nearing completion during the Q2 FY27 concall, with commercial production expected around Diwali.
The added capacity will help TARIL meet rising orders and manufacture more distribution, renewable-energy and power transformers rated up to 220 kV, while easing the load on its existing facilities.
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Changodar's capacity is being expanded from 12,000 MVA to 35,000 MVA at a cost of around ₹150 crore. The project was nearing completion during the Q2 FY27 concall, with commercial production expected around Diwali.
The added capacity will help TARIL meet rising orders and manufacture more distribution, renewable-energy and power transformers rated up to 220 kV, while easing the load on its existing facilities.
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After Changodar, TARIL plans to expand EHV transformer manufacturing at Moraiya, though no timeline has been confirmed. Separately, once the pressboard plant becomes operational, the space used for insulation manufacturing at Moraiya will be freed up for transformer production, adding over 30% to its capacity.
TARIL's post-expansion revenue potential is estimated at ₹5,000-6,000 crore. Management aims to reach US$1 billion in revenue by late FY29 or early 2030. Beyond transformers, growth is expected to come from sales of bushings, pressboard, CRGO steel, conductors and tanks.
TARIL's post-expansion revenue potential is estimated at ₹5,000-6,000 crore. Management aims to reach US$1 billion in revenue by late FY29 or early 2030. Beyond transformers, growth is expected to come from sales of bushings, pressboard, CRGO steel, conductors and tanks.
The Metrics That Matter: Orders, Production, Realisation and Margins
TARIL's Q2 FY27 revenue rose 66% YoY to ₹709 crore, while EBITDA grew 203% to ₹114 crore. EBITDA margin improved to 16.1%, from 8.8% in Q2 FY26 and 13.3% in Q1 FY27. Management attributed the improvement to better execution and higher capacity utilisation, particularly at Moraiya, which helped spread fixed costs over higher production.
In H1 FY27, revenue grew 35% YoY to ₹1,268 crore and EBITDA rose 47% to ₹185 crore. EBITDA margin improved to 14.6%, from 13.4% in H1 FY26. Management retained its FY27 guidance of 25%+ revenue growth and a 9-10% PAT margin.
TARIL's Q2 FY27 revenue rose 66% YoY to ₹709 crore, while EBITDA grew 203% to ₹114 crore. EBITDA margin improved to 16.1%, from 8.8% in Q2 FY26 and 13.3% in Q1 FY27. Management attributed the improvement to better execution and higher capacity utilisation, particularly at Moraiya, which helped spread fixed costs over higher production.
In H1 FY27, revenue grew 35% YoY to ₹1,268 crore and EBITDA rose 47% to ₹185 crore. EBITDA margin improved to 14.6%, from 13.4% in H1 FY26. Management retained its FY27 guidance of 25%+ revenue growth and a 9-10% PAT margin.
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As of 30 September 2026, company's unexecuted order book stood at ₹7,237 crore, up 32% YoY, with execution expected over 18-24 months. Q2 order inflows rose 97% YoY to ₹1,169 crore, partly due to a low base last year.
It had around ₹21,000 crore of inquiries under negotiation or bidding, which are yet to be converted into orders. Around 80% were domestic and 20% export, with an even split between government and private customers.
It had around ₹21,000 crore of inquiries under negotiation or bidding, which are yet to be converted into orders. Around 80% were domestic and 20% export, with an even split between government and private customers.
Average realisation varies by transformer type, but TARIL earns around ₹7 lakh for every MVA of transformer capacity sold. MVA measures how much electrical load a transformer can handle. Price variations contributed approximately 7-8% of Q2 FY27 revenue growth. TARIL adjusts customer bills each quarter for changes in raw material costs, helping protect margins.
The next test is whether the order book converts into production and billing on schedule. Higher capacity utilisation, product mix and pricing will influence profitability, while execution delays or rising costs could limit the benefits of revenue growth.
The next test is whether the order book converts into production and billing on schedule. Higher capacity utilisation, product mix and pricing will influence profitability, while execution delays or rising costs could limit the benefits of revenue growth.
Backward Integration: The Next Margin Driver
Transformers use specialised materials such as electrical steel, conductors, insulation and bushings, along with fabricated tanks. Making more of these in-house can reduce reliance on suppliers, improve quality and shorten production times while lowering costs.
TARIL's backward integration programme includes continuously transposed conductors (CTC), pressboard and insulation, CRGO processing, bushings and tank manufacturing.
CTC is a specialised conductor used in transformer windings to manage electrical losses and improve performance. Management expects the CTC plant to have a capacity of 3,000 tonnes per annum, with approximately 60% of output consumed internally.
Transformers use specialised materials such as electrical steel, conductors, insulation and bushings, along with fabricated tanks. Making more of these in-house can reduce reliance on suppliers, improve quality and shorten production times while lowering costs.
TARIL's backward integration programme includes continuously transposed conductors (CTC), pressboard and insulation, CRGO processing, bushings and tank manufacturing.
CTC is a specialised conductor used in transformer windings to manage electrical losses and improve performance. Management expects the CTC plant to have a capacity of 3,000 tonnes per annum, with approximately 60% of output consumed internally.
TARIL expects to commission the CTC plant around Diwali, begin trial runs in November-December and start commercial production in Q4 FY27. Initially, output will meet its own requirements, with external sales expected from Q1 FY28. The plant will take time to stabilise before delivering its full benefits.
Management expects backward integration to contribute approximately 200-300 basis points of margin expansion, with benefits building through FY28 and FY29 and the full impact expected by FY29.
The contribution will depend on timely commissioning, production stabilisation and the extent to which internal manufacturing actually reduces costs. The broader plan is not just to improve transformer margins but also to develop additional revenue streams through component sales.
Management expects backward integration to contribute approximately 200-300 basis points of margin expansion, with benefits building through FY28 and FY29 and the full impact expected by FY29.
The contribution will depend on timely commissioning, production stabilisation and the extent to which internal manufacturing actually reduces costs. The broader plan is not just to improve transformer margins but also to develop additional revenue streams through component sales.
The Cash Flow Test
Rapid growth ties up cash in inventory, production and pending customer payments. For TARIL, managing working capital is as important as growing revenue.
As of 30 September 2026, the company had ₹654 crore in inventory and ₹1,053 crore in trade receivables, of which ₹825 crore was current and ₹228 crore non-current. Its working capital cycle stood at 154 days, with 93 inventory days, 117 receivable days and 56 payable days.
It had around ₹200 crore in retention money. Depending on the customer, 5-10% of an order's value is withheld under contract terms, delaying the collection of that amount.
Rapid growth ties up cash in inventory, production and pending customer payments. For TARIL, managing working capital is as important as growing revenue.
As of 30 September 2026, the company had ₹654 crore in inventory and ₹1,053 crore in trade receivables, of which ₹825 crore was current and ₹228 crore non-current. Its working capital cycle stood at 154 days, with 93 inventory days, 117 receivable days and 56 payable days.
It had around ₹200 crore in retention money. Depending on the customer, 5-10% of an order's value is withheld under contract terms, delaying the collection of that amount.
TARIL aims to reduce its working capital cycle from 154 days to 120-130 days, with a further target of 110-120 days. The reduction is expected to begin by the end of FY27 and help improve cash flow.
The standalone debt stood at ₹575 crore, comprising ₹125 crore of long-term and ₹449 crore of short-term borrowings. Cash and cash equivalents were ₹77 crore, while the debt-to-equity ratio stood at 0.35x. The company also has other bank balances and unutilised QIP proceeds set aside for backward integration.
It needs to convert higher revenue and margins into cash. Better inventory management, timely execution and faster customer payments will be key. Growth will create more value if it also improves cash flow and returns on the money invested.
The standalone debt stood at ₹575 crore, comprising ₹125 crore of long-term and ₹449 crore of short-term borrowings. Cash and cash equivalents were ₹77 crore, while the debt-to-equity ratio stood at 0.35x. The company also has other bank balances and unutilised QIP proceeds set aside for backward integration.
It needs to convert higher revenue and margins into cash. Better inventory management, timely execution and faster customer payments will be key. Growth will create more value if it also improves cash flow and returns on the money invested.
Beyond the Growth Numbers
TARIL has a growing order book, expanding capacity and plans to bring more manufacturing in-house. The next phase will test its ability to execute orders on time, deliver the expected cost savings and improve working capital.
Ultimately, growth will matter only if it translates into sustainable margins, stronger cash flows and better returns on capital.
DISCLAIMER: NO BUY OR HOLD SUGGESTION, ONLY FOR INFORMATION PURPOSE
TARIL has a growing order book, expanding capacity and plans to bring more manufacturing in-house. The next phase will test its ability to execute orders on time, deliver the expected cost savings and improve working capital.
Ultimately, growth will matter only if it translates into sustainable margins, stronger cash flows and better returns on capital.
DISCLAIMER: NO BUY OR HOLD SUGGESTION, ONLY FOR INFORMATION PURPOSE
POOJAA PRECISION ENGINEERING - H1FY27 BUSINESS UPDATE
H1FY27 FINANCIAL PERFORMANCE
- Revenue ₹210.1 Cr, up 68% YoY
- EBITDA ₹30.1 Cr, up 69% YoY
- EBITDA margin stood at 14.3%
- PAT ₹15.4 Cr, up 107% YoY
- PAT margin improved 140 bps to 7.3%
- IPO raised approximately ₹160 Cr
- IPO was oversubscribed 655 times
BUSINESS OVERVIEW
- Over two decades of precision-engineering experience
- Manufactures precision-engineered aluminium components
- Integrated operations cover casting, machining and assembly
- Also handles engineering, prototyping and tool manufacturing
- Installed aluminium melting capacity stands at 33,000 MTPA
- Serves OEMs across India
- Domestic market contributes approximately 99% of revenue
REVENUE MIX - H1FY27
- Commercial Vehicles: 40%
- Non-Automotive: 17%
- Electric Vehicles: 16%
- Passenger Vehicles: 14%
- Two and Three-Wheelers: 13%
EV AND NON-AUTOMOTIVE OPPORTUNITY
- EV contribution increased to 16% from 9.8% in FY26
- Estimated H1FY27 EV revenue reached approximately ₹33.5 Cr
- Non-automotive businesses contributed 17% of revenue
- EV and non-automotive segments together contributed 33%
- Applications span defence, aviation, energy and healthcare
PRODUCT PORTFOLIO
- Commercial vehicles: cylinder heads, manifolds and steering knuckles
- Electric vehicles: split casings and motor mounts
- Two-wheelers: transmission cases and inlet pipes
- Defence and aviation: intake pipes and casing assemblies
- Energy: GIS components, insulator flanges and radiator tanks
- Healthcare and agriculture: structural parts and gearbox casings
ORDER BOOK AND CAPACITY EXPANSION
- Order book stands at ₹1,180 Cr
- Orders are scheduled for execution by FY29
- Annualised H1 revenue is approximately ₹420 Cr
- Order book equals approximately 2.8x annualised revenue
- Unit III at Chakan, Pune: planned 15,000 MTPA capacity
- Unit IV: planned 12,000 MTPA capacity
- Total capacity targeted at 60,000 MTPA by FY28
- Expansion will nearly double existing capacity
- IPO proceeds are funding the capacity expansion
MANAGEMENT'S GROWTH PRIORITIES
- Scale high-margin EV, aviation and defence segments
- Expand renewable-energy component opportunities
- Improve margins through value-added precision components
- Capture economies of scale from capacity expansion
- Begin targeting international export markets
- Reduce dependence on traditional internal-combustion engine components
KEY RISKS TO MONITOR
- Customer concentration details are not provided
- Aluminium price movements may affect margins
- Raw-material cost pass-through terms remain unspecified
- Capacity expansion requires timely execution
- New segments involve customer qualification and execution risks
- Valuation and debt details require further assessment
KEY TAKEAWAYS
- H1 revenue grew 68%, while PAT more than doubled
- EV revenue contribution increased meaningfully
- Order book provides substantial execution visibility
- Planned capacity expansion supports future growth potential
- Diversification could reduce dependence on traditional automotive components
- Export expansion offers an additional growth opportunity
- Monitor execution, margins, customer concentration and valuation
H1FY27 FINANCIAL PERFORMANCE
- Revenue ₹210.1 Cr, up 68% YoY
- EBITDA ₹30.1 Cr, up 69% YoY
- EBITDA margin stood at 14.3%
- PAT ₹15.4 Cr, up 107% YoY
- PAT margin improved 140 bps to 7.3%
- IPO raised approximately ₹160 Cr
- IPO was oversubscribed 655 times
BUSINESS OVERVIEW
- Over two decades of precision-engineering experience
- Manufactures precision-engineered aluminium components
- Integrated operations cover casting, machining and assembly
- Also handles engineering, prototyping and tool manufacturing
- Installed aluminium melting capacity stands at 33,000 MTPA
- Serves OEMs across India
- Domestic market contributes approximately 99% of revenue
REVENUE MIX - H1FY27
- Commercial Vehicles: 40%
- Non-Automotive: 17%
- Electric Vehicles: 16%
- Passenger Vehicles: 14%
- Two and Three-Wheelers: 13%
EV AND NON-AUTOMOTIVE OPPORTUNITY
- EV contribution increased to 16% from 9.8% in FY26
- Estimated H1FY27 EV revenue reached approximately ₹33.5 Cr
- Non-automotive businesses contributed 17% of revenue
- EV and non-automotive segments together contributed 33%
- Applications span defence, aviation, energy and healthcare
PRODUCT PORTFOLIO
- Commercial vehicles: cylinder heads, manifolds and steering knuckles
- Electric vehicles: split casings and motor mounts
- Two-wheelers: transmission cases and inlet pipes
- Defence and aviation: intake pipes and casing assemblies
- Energy: GIS components, insulator flanges and radiator tanks
- Healthcare and agriculture: structural parts and gearbox casings
ORDER BOOK AND CAPACITY EXPANSION
- Order book stands at ₹1,180 Cr
- Orders are scheduled for execution by FY29
- Annualised H1 revenue is approximately ₹420 Cr
- Order book equals approximately 2.8x annualised revenue
- Unit III at Chakan, Pune: planned 15,000 MTPA capacity
- Unit IV: planned 12,000 MTPA capacity
- Total capacity targeted at 60,000 MTPA by FY28
- Expansion will nearly double existing capacity
- IPO proceeds are funding the capacity expansion
MANAGEMENT'S GROWTH PRIORITIES
- Scale high-margin EV, aviation and defence segments
- Expand renewable-energy component opportunities
- Improve margins through value-added precision components
- Capture economies of scale from capacity expansion
- Begin targeting international export markets
- Reduce dependence on traditional internal-combustion engine components
KEY RISKS TO MONITOR
- Customer concentration details are not provided
- Aluminium price movements may affect margins
- Raw-material cost pass-through terms remain unspecified
- Capacity expansion requires timely execution
- New segments involve customer qualification and execution risks
- Valuation and debt details require further assessment
KEY TAKEAWAYS
- H1 revenue grew 68%, while PAT more than doubled
- EV revenue contribution increased meaningfully
- Order book provides substantial execution visibility
- Planned capacity expansion supports future growth potential
- Diversification could reduce dependence on traditional automotive components
- Export expansion offers an additional growth opportunity
- Monitor execution, margins, customer concentration and valuation
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Fundamental Analysis (Long term)
POOJAA PRECISION ENGINEERING - H1FY27 BUSINESS UPDATE H1FY27 FINANCIAL PERFORMANCE - Revenue ₹210.1 Cr, up 68% YoY - EBITDA ₹30.1 Cr, up 69% YoY - EBITDA margin stood at 14.3% - PAT ₹15.4 Cr, up 107% YoY - PAT margin improved 140 bps to 7.3% - IPO raised…
PPEL
CMP: 833
Good to add long term point of view
CMP: 833
Good to add long term point of view
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STERLITE TECHNOLOGIES - Q2FY27 RESULTS
#Q2FY27
FINANCIAL PERFORMANCE
- Revenue ₹2,529 Cr, up 145% YoY and 32% QoQ
- Reported EBITDA reached ₹846 Cr
- PAT ₹517 Cr versus ₹4 Cr last year
- Record open order book of ₹35,274 Cr
EBITDA ADJUSTMENT
- Reported EBITDA includes a ₹161 Cr one-time US tariff refund
- Operational EBITDA stood at approximately ₹685 Cr
- Operational EBITDA margin reached approximately 27.1%
- Operational margin improved from 20.8% in Q1FY27
- Operational margin improved from 13.6% last year
ORDER BOOK AND MAJOR WINS
- H1FY27 order intake reached ₹32,026 Cr
- Order intake was approximately 4.2x FY26 order intake
- Hyperscaler LTSA secured worth ₹11,500+ Cr till CY30
- Hyperscaler award secured worth ₹10,500+ Cr till FY29
- High-density fibre cable deal worth ₹2,700 Cr
- North American telecom deal worth ₹2,000 Cr
- Indian telecom order worth ₹960 Cr
PRODUCT MIX AND MARKET SHARE
- Optical connectivity attach rate reached a record 24%
- Higher-value integrated connectivity products are gaining traction
- Global ex-China OFC market share increased from 7% to 9%
- North America has become a larger business contributor
- AI and data-centre connectivity offer growth opportunities
BALANCE SHEET AND CASH FLOW
- Raised ₹1,500 Cr through QIP during H1FY27
- QIP proceeds partly used to repay borrowings
- Company reported a net debt-free position
- Management reported net cash of approximately ₹703 Cr
- H1 operating cash flow reached ₹692 Cr
- Working capital absorbed approximately ₹441 Cr
CAPACITY EXPANSION AND GROWTH ROADMAP
- Targeting approximately 50% capacity expansion by FY29
- Expansion covers preform, fibre and cable capacities
- New greenfield facility planned for pre-terminated connectivity solutions
- Annual capex planned at approximately ₹1,000 Cr
- Capex roadmap covers FY27-FY29
- R&D investment targeted at approximately 2% of annual revenue
- FY29 revenue aspiration stands at ₹20,000 Cr
KEY TAKEAWAYS
- Strong order intake improves multi-year revenue visibility
- Operational EBITDA margin improved significantly
- Tariff refund boosted reported EBITDA
- Hyperscaler demand supports AI and data-centre connectivity growth
- Higher-value products are improving the business mix
- Net cash position strengthens funding flexibility
- Capacity expansion will require disciplined execution
- Working capital absorption remains an important monitorable
- Sustainability of operational margins is the key question
- Track order conversion, cash flow and capital efficiency
#Q2FY27
FINANCIAL PERFORMANCE
- Revenue ₹2,529 Cr, up 145% YoY and 32% QoQ
- Reported EBITDA reached ₹846 Cr
- PAT ₹517 Cr versus ₹4 Cr last year
- Record open order book of ₹35,274 Cr
EBITDA ADJUSTMENT
- Reported EBITDA includes a ₹161 Cr one-time US tariff refund
- Operational EBITDA stood at approximately ₹685 Cr
- Operational EBITDA margin reached approximately 27.1%
- Operational margin improved from 20.8% in Q1FY27
- Operational margin improved from 13.6% last year
ORDER BOOK AND MAJOR WINS
- H1FY27 order intake reached ₹32,026 Cr
- Order intake was approximately 4.2x FY26 order intake
- Hyperscaler LTSA secured worth ₹11,500+ Cr till CY30
- Hyperscaler award secured worth ₹10,500+ Cr till FY29
- High-density fibre cable deal worth ₹2,700 Cr
- North American telecom deal worth ₹2,000 Cr
- Indian telecom order worth ₹960 Cr
PRODUCT MIX AND MARKET SHARE
- Optical connectivity attach rate reached a record 24%
- Higher-value integrated connectivity products are gaining traction
- Global ex-China OFC market share increased from 7% to 9%
- North America has become a larger business contributor
- AI and data-centre connectivity offer growth opportunities
BALANCE SHEET AND CASH FLOW
- Raised ₹1,500 Cr through QIP during H1FY27
- QIP proceeds partly used to repay borrowings
- Company reported a net debt-free position
- Management reported net cash of approximately ₹703 Cr
- H1 operating cash flow reached ₹692 Cr
- Working capital absorbed approximately ₹441 Cr
CAPACITY EXPANSION AND GROWTH ROADMAP
- Targeting approximately 50% capacity expansion by FY29
- Expansion covers preform, fibre and cable capacities
- New greenfield facility planned for pre-terminated connectivity solutions
- Annual capex planned at approximately ₹1,000 Cr
- Capex roadmap covers FY27-FY29
- R&D investment targeted at approximately 2% of annual revenue
- FY29 revenue aspiration stands at ₹20,000 Cr
KEY TAKEAWAYS
- Strong order intake improves multi-year revenue visibility
- Operational EBITDA margin improved significantly
- Tariff refund boosted reported EBITDA
- Hyperscaler demand supports AI and data-centre connectivity growth
- Higher-value products are improving the business mix
- Net cash position strengthens funding flexibility
- Capacity expansion will require disciplined execution
- Working capital absorption remains an important monitorable
- Sustainability of operational margins is the key question
- Track order conversion, cash flow and capital efficiency
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