Advait Energy — Q2 FY26 earnings call

Call held 14 Nov 2025

Management summary

Advait Energy Transitions Limited reported strong H1 FY26 consolidated performance with revenue up 160% YoY to INR275 crores and EBITDA up 87% YoY to INR31.06 crores. The company's order book grew 177% YoY, exceeding INR1,000 crores, driven by both Power Transmission System (PTS) and New & Renewable Energy (NRE) segments. Key initiatives include capacity expansion for ERS and stringing tools, and significant progress in green hydrogen and BESS projects, with initial electrolyzer capacity expected by January 2026.

Highlights

  • H1 FY26 Consolidated Revenue increased 160% YoY to INR275 crores.

  • H1 FY26 Consolidated EBITDA grew 87% YoY to INR31.06 crores, achieving 11.3% margins.

  • Order book grew 177% YoY, surpassing INR1,000 crores, indicating robust execution capability.

  • Successfully secured a INR90 crores ERS order and a INR100+ crores EPC order for DGVCL.

  • First 10 MW electrolyzer capacity expected by January 2026, with 300 MW by end of 2026.

Concerns

  • Discrepancy in reported Q2 FY26 consolidated financial figures within the transcript.

  • Increase in trade receivables by INR60 crores in H1, leading to a INR33 crores funding gap compared to profit.

  • Analyst concern about potential slowdown in renewable energy tenders, particularly solar.

Key financials

4 periods

Headline

  • Debt Equity Ratio (Sep 30, 2025)
    0.24

Q2 FY26

  • Consolidated Revenue
    ₹156.87 Cr
    YoY +239%
  • Consolidated EBITDA
    ₹17.32 Cr
    YoY +103%
  • Consolidated EBITDA Margin
    11%
  • Consolidated PAT
    ₹11.87 Cr
    YoY +163%
  • Consolidated PAT Margin
    7.6%

H1

  • FY26 Consolidated Revenue
    ₹275 Cr
    YoY +160%
  • FY26 Consolidated EBITDA
    ₹31.06 Cr
    YoY +87%
  • FY26 Consolidated EBITDA Margin
    11.3%
  • FY26 Net Worth
    ₹263 Cr
    YoY +43%

H1 FY26

  • Current Ratio
    2.09

What they filed

Q1 FY27: revenue up 76.7%, net profit up 62.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue48 94 95 73 95 +98%125 +33%154 +62%129 +77%
EBITDA9 15 14 12 15 +67%21 +40%23 +64%21 +75%
Net profit6 10 10 8 10 +67%13 +30%15 +50%13 +63%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹1,340.24 Cr

as of 2025-09-30 quantified

177% YoY

Composition

Mix 8 products
  • PTS and OPGW 0.3%
  • ERS division 1.7%
  • Tools division 0.4%
  • PTS, EPC and others 58%
  • GH2 EPC 0.2%
  • Solar EPC 8.9%
  • New Energy business of BESS 10.3%
  • RDSS 20.1%

Share of order book by product

The company's order book surpasses Rs.1,000 crores, demonstrating robust execution capability and sustained growth, with significant contributions from both Power Transmission System and New & Renewable Energy businesses.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed internal cash flow
    • Integrated manufacturing facility at Gangad (Ahmedabad)
    • New ERS manufacturing facility
    • Electrolyzer manufacturing plant (10 MW initially, 300 MW eventually)
    And as I told you, from our internal cash flow, we are also able to fund up our new expansion from internal cash flow.
  • Liquidity Liquidity disclosed Trade receivables increased by INR60 crores in H1, creating a INR33 crores difference compared to profit, which management expects to normalize in coming months as it's circulatory in nature. Withheld money of approximately 46 crores is expected to be receivable in the next 12 months.
    The trade receivables have increased by INR60 crores in H1. But our profit is less than INR27 crores. So, there's a INR33 crores difference that we need to fund.

Guidance & targets

Growth

  • Overall Growth Rate Growth · ongoing · Medium confidence 50-60%
    But we believe that we will maintain our growth in a growth trajectory, that overall growth rate about 50%, 60% that we did. So, these are the numbers we are looking forward.

    — Shalin Sheth

Revenue

  • BESS Division Revenue (First Tranche) Revenue · Q4 2025-2026 (March) · High confidence INR50-60 crores
    We expect the battery energy, the first INR50 crores to INR60 crores of supplies to be done in the month of March and the entire order to be completed by June.

    — Shalin Sheth

  • BESS Division Revenue (Entire Order) Revenue · Q1 2026-2027 (June) · High confidence INR60 crores (balance)
    That is Q4 2025-2026 may be INR 50 crores and balance INR 60 crores or something will be Q1 of 2026-2027.

    — Shalin Sheth

Profitability

  • AGPL Profit Margins Profitability · in the year to come · Low confidence match group margins
    And I am very confident that it will match our group margins in the year to come.

    — Shalin Sheth

Margin

  • PTS EBITDA Margin Margin · ongoing · Medium confidence 14-16%
    PTS is a business we have demonstrated our ability by creating the qualifications, and again, we strategize. So, we hope to continue with the same margin year-on-year basis, which is basically EBITDA between 14% to 16% and that we've been doing.

    — Shalin Sheth

Capacity

  • ERS Manufacturing Plant Capacity Capacity · ongoing · High confidence 350 towers per year
    So, PTS is going to be expanded existing operations of the ERS by putting the new ERS manufacturing plant, which will be supplying about 350 towers per year.

    — Shalin Sheth

  • Stringing Tools Capacity Capacity · ongoing · High confidence INR80-100 crores per year

    Previously INR30-40 crores per year → INR80-100 crores per year

    Stringing tools, our capacity will be increased from current INR30 crores to INR40 crores to INR80 crores to INR100 crores per year.

    — Shalin Sheth

  • Electrolyzer Manufacturing Capacity (Initial) Capacity · January · High confidence 10 megawatt
    And then for our NRE business, we are first putting 10 megawatt of capacity for building up of the electrolyzers. That will be ready by the month of January.

    — Shalin Sheth

  • Electrolyzer Manufacturing Capacity (Full) Capacity · end of 2026 · High confidence 300 megawatt
    And we are looking forward for putting 300 megawatt of manufacturing capacity under this segment. That will be ready by the end of 2026.

    — Shalin Sheth

Manufacturing

  • PTS Division Manufacturing Expansion Completion Manufacturing · Q3 2026-27 · High confidence completion
    And we hope to complete the manufacturing expansion for the PTS division by Q3 for the 2026-27.

    — Shalin Sheth

  • AGPL Electrolyzer Manufacturing Completion Manufacturing · Q3-Q4 · High confidence completion of 300 megawatt capacity
    And the second part up to 300 megawatt, we are planning to complete by Q3-Q4.

    — Shalin Sheth

What to watch in Q3 FY26

ERS New Manufacturing Facility Readiness

Next month (December 2025)
Current New facility being put up.
Target Ready for operation.

Why it matters

Indicates capacity expansion and operational efficiency for the ERS segment, contributing to future order execution.

The company is also putting the new ERS manufacturing facility, which is going to be ready by next month.

Risks & concerns

  • Increased trade receivables and working capital strain

    medium

    Trade receivables increased by INR60 crores in H1, exceeding profit by INR33 crores, but management stated it's a 'circulatory nature' and funds will normalize.

    Analyst downplayed

  • Temporary slowdown in solar energy tenders

    medium

    Management confirmed a temporary slowdown in solar due to system stability but noted growth in BESS projects as a compensating factor.

    Analyst acknowledged

  • Lower profit margins on incremental revenue

    low

    Analyst noted lower profit margins on incremental revenue, but management focused on increasing net worth and funding expansion from internal cash flow.

    Analyst acknowledged

  • Competition and intellectual property protection

    low

    Management highlighted technology transfer agreements and patented technologies for regional exclusivity to mitigate competition.

    Analyst acknowledged

  • Dependence on government orders and funding

    low

    Management stated their projects are essential and priority sector, thus less susceptible to government funding fluctuations.

    Analyst downplayed

Q&A highlights

3 direct, 1 evasive
Order book breakdown for PTS division Direct
And for PTS and OPGW, we have Rs.3.54 crores order. In ERS division, we have INR22.45 crores. And for tools division, we have INR5.97 crores. And PTS, EPC and others INR777.86 crores. For GH2 EPC, INR3.14 crores. And solar EPC, INR119.90 crores and New Energy business of BESS, INR137.38 crores. ... RDSS figure is INR270 crores.

Provides a detailed segment-wise breakdown of the company's total order book, clarifying the composition of future revenue.

Asked by Raj Shah

Discrepancy in reported revenue figures Partial
So, revenue break-up, if I talk about the rest is from the HTLS EPC and Stringing Tool division.

Highlights a potential inconsistency in the reported revenue figures, requiring further clarification on the source of the additional revenue.

Asked by Raj Shah

H2 revenue expectations compared to previous year Evasive
Actually, this is very difficult to answer about the numbers. But we believe that we will maintain our growth in a growth trajectory, that overall growth rate about 50%, 60% that we did. So, these are the numbers we are looking forward.

Analyst sought specific guidance on H2 revenue seasonality, but management provided a general growth outlook instead of a direct comparison.

Asked by Raj Shah

Cash flow and increasing trade receivables Partial
Actually, what is happening, these are the things, which are changing month-on-month. So, when the quarters are changing, so it's the circulatory nature of the business. So, these funds you will see in the coming months will be there in the books. So, it's just circulatory in nature.

Analyst raised concerns about increasing trade receivables and the need for funding, to which management attributed it to the circulatory nature of the business, implying it's a temporary situation.

Asked by Shivam Singh

AGPL profit margin improvement Partial
So, AGPL, we are at the phase of doing all the three things. And we are proudly saying that for AGPL, last quarter, we are now qualified for bidding very big EPC orders for the solar. By next month, we will be only among the few companies, maybe two or three companies in India who have completed two projects in the green hydrogen. So, that is one more thing.

Analyst questioned the timeline for AGPL's profit margin improvement, and management responded by highlighting qualification for large EPC orders and green hydrogen project completions, implying future margin benefits.

Asked by Shivam Singh

Protection against competition (patents/IP) Direct
See, what I will say that we have done a technology transfer agreement. And under the agreement that the same technology cannot be given in a particular segment in a particular country, that's what we have done. ... Similarly, for fuel cell, we have entered an agreement that for our Asia-Pacific region, we will be only holding those technologies and which is patented.

Addresses concerns about intellectual property and competitive defense, outlining strategies like technology transfer agreements and regional exclusivity for patented technologies.

Asked by Shivam Singh

Derisking from PSUs and government funding Partial
See, your company at the moment is not working in a business of INR3,000 crores, INR4,000 crores. And all the products that we are operating are very essential in nature. Like optical fiber, like ERS, like special conductors that increase the conductivity, like this BESS that has to be done in time. So, these are the specialized funded projects. And we do not foresee any problem, because those are the priority sector of the government.

Analyst raised concerns about potential government funding slowdown, but management emphasized their focus on essential, specialized, and priority sector projects, suggesting resilience.

Asked by Shivam Singh

Slowdown in renewable energy tenders (solar sector) Direct
So, I think you would have heard this is about the slowdown of some of the solar sector. Am I right? ... So, the immediate need has come to stabilize the system by augmenting with the other transient energy solutions so that you might be seeing that many states are maintaining their obligation for the storage, EOS, energy obligation for the storage. So, under EOS scheme, a lot of BESS projects are coming.

Management acknowledged a temporary slowdown in the solar sector due to grid stability issues but highlighted the compensating growth in BESS projects driven by energy storage obligations.

Asked by Basant Bansal

2 min read 6 chapters

Detailed narrative

Strong H1 FY26 Performance and Order Book Growth

Advait Energy Transitions Limited reported a robust H1 FY26 consolidated revenue of INR275 crores, marking a significant 160% year-on-year growth. EBITDA for the same period stood at INR31.06 crores, an 87% YoY increase, with EBITDA margins at 11.3%. The company's order book has surpassed INR1,000 crores, demonstrating a 177% YoY growth, with 76% attributed to the Power Transmission System (PTS) business and 24% to the New & Renewable Energy (NRE) business.

Key Order Wins and Project Execution Highlights

During the quarter, Advait Energy secured a significant ERS order for 765 KV and 400 KV segments from Power Grid, amounting to approximately INR90 crores. Another major win was an EPC order exceeding INR100 crores for DGVCL for the replacement of MVCC conductors. The company also successfully executed a challenging 250 km stringing of OPW cables on a live line for 220 KV at high altitudes in Leh and Ladakh, completing it in record time under extreme conditions.

Capacity Expansion and New Facilities

The company is establishing a grand integrated manufacturing facility at Gangad, Ahmedabad, with all new and expanded units expected to be ready by July 2026. The capex for this facility has already been tied up. Additionally, a new ERS manufacturing facility is slated for completion by next month (December 2025), and stringing tools capacity is targeted to increase from INR30-40 crores to INR80-100 crores per year.

Advancing in New & Renewable Energy (NRE) Segment

Advait Energy is making significant strides in the NRE sector, initiating the construction of a 300 megawatt electrolyzer manufacturing plant and completing India's first green hydrogen EPC project. The first 10 megawatt capacity of the electrolyzer plant is expected to be ready by January 2026, with the full 300 megawatt capacity by the end of 2026. The company has also secured its first Level-N projects in Malaysia for ACS and OPGW cables, with further overseas expansion planned.

Financial Ratios and Working Capital

As of September 30, 2025, the Debt-Equity ratio stood at 0.24, a slight increase from 0.23 as of March 31, 2025. The Current Ratio for H1 FY26 was 2.09, compared to 2.33 in FY25. Trade receivables increased by INR60 crores in H1, creating a INR33 crores gap compared to profit, which management expects to normalize. Approximately INR46 crores of withheld money, due in the next 12 months, has been reclassified as current assets.

Strategic Outlook and Future Growth

Management expressed confidence in maintaining an overall growth rate of 50-60%. They anticipate the BESS division to generate INR50-60 crores in supplies by March 2026, with the entire order completed by June 2026. The company is actively pursuing EPC opportunities in the NRE sector and expanding its international footprint for stringing tools and OPGW LiveLine business, with expressions of interest in Ethiopia and Kazakhstan.

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