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Advait Energy — Q3 FY26 earnings call

Call held 12 Feb 2026

Management summary

Advait Energy reported strong Q3 FY26 results with significant YoY growth in consolidated revenue and PAT, driven by a robust order book exceeding INR 1,000 crores. The company is making strategic progress in its New and Renewable Energy division, with the first 30 MW electrolyzer unit set for commissioning by March 2026. While margins saw some pressure due to seasonality and strategic investments, management remains confident in future growth and profitability, supported by substantial capex plans and a disciplined approach to order selection.

Highlights

Consolidated revenue from operations surged by 114% YoY to INR 211.03 crores in Q3 FY26.
Consolidated PAT increased by 78% YoY to INR 17.39 crores for Q3 FY26.
The order book maintained an INR 1,000 crores milestone, reflecting a robust 132% YoY growth.
The first 30 MW electrolyzer assembly and manufacturing unit is targeted to be ready by March 15, 2026, marking a significant step in green energy.
The company achieved a significant milestone with its listing on the NSE Main Board on January 20, 2026.

Concerns

The NRE division's contribution to the order book declined to 16% from 24% in Q2 FY26, attributed to a focus on margin discipline over top-line growth in less lucrative orders.
Consolidated EBITDA margin for Q3 FY26 stood at 11.45%, which is lower than the standalone margin of 16.92%, partly due to seasonality and strategic investments in new segments.
Management noted that Q3 is typically impacted by weather and monsoon, which can affect execution and overall financial performance.

Key financials

2 periods

Headline

Consolidated Revenue
₹211.03 Cr
YoY +114%
Consolidated EBITDA
₹24.16 Cr
YoY +58%
Consolidated EBITDA Margin
11.4%
Consolidated PAT
₹17.39 Cr
YoY +78%
Consolidated PAT Margin
8.2%
Standalone Revenue
₹124.71 Cr
YoY +32%
Standalone EBITDA
₹21.1 Cr
YoY +40%
Standalone EBITDA Margin
16.9%
Standalone PAT
₹12.51 Cr
YoY +20%
Standalone PAT Margin
10%

9M

FY26 Consolidated Revenue
₹486 Cr
YoY +138%
FY26 Consolidated EBITDA
₹55 Cr
YoY +74%
FY26 Consolidated EBITDA Margin
11%
FY26 Consolidated PAT
₹35 Cr
YoY +80%
FY26 Consolidated PAT Margin
7%

What they filed

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

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	48	94	95	73	95 +98%	125 +33%	154 +62%	129 +77%
Expenses	38	79	81	62	80	104	131	108
EBITDA	9	15	14	12	15 +67%	21 +40%	23 +64%	21 +75%
Margin	20%	16%	15%	16%	16%	17%	15%	16%
Other income	1	2	4	3	3	2	3	1
Interest	2	2	4	3	3	5	4	4
Depreciation	1	1	1	1	1	1	1	1
Profit before tax	7	14	14	11	14 +100%	17 +21%	21 +50%	17 +55%
Tax rate	22%	26%	32%	24%	26%	27%	26%	25%
Net profit	6	10	10	8	10 +67%	13 +30%	15 +50%	13 +63%
EPS	5.17	9.62	8.96	7.40	9.42	11.44	14.09	11.54

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.

Segment breakdown

Power Transmission Solutions (PTS)
84% Order Book Contribution
New and Renewable Energy (NRE)
16% Order Book Contribution

Order book

high confidence

Total value

₹1,000 Cr

as of 2025-12-31 quantified

132% YoY

Execution

75% of current order book to be completed by next year

Composition

Mix 2 segments

Power Transmission Solutions (PTS) 84%
New and Renewable Energy (NRE) 16%

Share of order book by segment

Pipeline

qualified rfp

strong tender pipeline of similar size to current order book

The company maintains a robust order book with strong growth, primarily driven by the PTS division, and expects significant execution in the coming year, while being selective in NRE orders to maintain quality.

Source: Prepared remarks

Capital allocation

high confidence

Capex ₹110 Cr PTS capex from internal cash flow and existing funds; AGPL capex partly from raising INR 90-100 crores along with mix of debt.
- Electrolyzer factory (current and next two financial years) ₹200 Cr
- PTS division capacity ₹100 Cr
- AGPL (electrolyzers and BESS facilities) ₹180 Cr
overall capex plan for the electrolyzer factory for the current and next two financial year would be close to Approx INR200 crores. ... Our PTS division is going with the capex of 100 crores. This capex equity we are managing from our internal cash flow and existing funds of the company. ... We are going ahead for the capex under AGPL for developing of the facility of electrolyzers and BESS. Here we are going with the total capex of about INR180 crores to INR200 crores and for that we are raising about 90 crores to 100 crores. ... So far during this nine month, we have already we have invest in technology adoption more than INR35 crores, that is the capex. ... So all put together, during this nine month, we are very much close to know, around INR60 crores kind of capex. And by end of this year, we are likely to incur another maybe INR110 crores kind of capex by end of this financial year.
Debt Debt disclosed

The fund raising what we've been doing now of about INR90 crores to INR100 crores along with the mix of debt will be creating the facility initially to start with 100 to 125 MW of supplying electrolyzer.

Guidance & targets

Revenue

Revenue Growth Revenue · 2026 · High confidence 40% to 45%

Looking ahead, we remain confident on delivering approximately 40% to 45% revenue growth in 2026.

— Shalin Sheth
Electrolyzer revenue (first full FY) Revenue · FY28 · Medium confidence INR 200-300 crores

We are expecting the revenue from first full financial year is roughly anything between INR200 crores to INR300 crores steadily adding up, considering the market demand and upcoming time ahead potential from the inquiries coming from the business sector.

— Priyank Shah
ERS order revenue recognition Revenue · Q4 FY26 onwards · High confidence Starting Q4 FY26, continuing for 4-6 quarters

For ERS, you know that we have received the biggest orders in these quarters. And our revenue for the biggest orders will start from the Q4 of this year to be continued for about 4 to 6 quarters for the coming year for the current orders what we received.

— Shalin Sheth

Capacity

Giga-factory commercialization Capacity · Mid-2028 · High confidence Mid-2028

The facility is targeted to be made fully commercialized and operationalized by the mid of 2028.

— Shalin Sheth
Electrolyzer 30 MW unit readiness Capacity · March 15, 2026 · High confidence March 15, 2026

the electrolyzer manufacturing in the first phase of 30 MW Electrolyser Assembly plant will be progressing as scheduled and will be completed and commissioned by 15th March this year.

— Chaitanya Mallurwar
Electrolyzer 100 MW plant completion Capacity · FY26 · High confidence End of this financial year

And the next phase of the 300 MW, with the first phase of 100MW Electrolyser Manufacturing Plant will be completed end of this financial year.

— Chaitanya Mallurwar
Electrolyzer 300 MW plant completion Capacity · FY27 · High confidence Next financial year

The remaining capacity will be executed in the next financial year.

— Chaitanya Mallurwar
Electrolyzer full-fledged capacity commissioning Capacity · March 2027 · High confidence End of March 2027

And we are expecting once our full-fledged capacity will be up, likely to be commissioned by end of the March '27

— Priyank Shah
BESS 2.5 GW assembly plant readiness Capacity · Q3 FY27 · High confidence Q3 FY27

for the BESS, we are putting the 2.5 gigawatt assembly plant to be ready by Q3 this year.

— Shalin Sheth

Order Book

Order book execution Order Book · Next year · High confidence 75%

From our current order book, we hope that about 75% order will be completed by the next year.

— Shalin Sheth
NRE division mix increase Order Book · Every year · Medium confidence 5% to 7% or 10% every year

We are looking forward to the mix will continuously changing towards NRE division by adding 5% to 7% increase in the mix every year or maybe 10%.

— Shalin Sheth

Margin

EBITDA margin for electrolyzer manufacturing Margin · Long-term · High confidence 8% to 10%

For electrolyzer manufacturing, the expected margin should be around 8% to 10%

— Chaitanya Mallurwar

Profitability

ROCE for manufacturing Profitability · Long-term · High confidence 25% to 30%

See, for our manufacturing, our ROCE is normally more than 25% to 30%.

— Shalin Sheth
ROCE for EPC Profitability · Long-term · High confidence 15% to 25%

For EPC, our ROCE will be about 15% to 25%.

— Shalin Sheth
ROCE for development project Profitability · Long-term · High confidence 12% to 15%

And for our development project, the ROCE will be about 12% to 15%.

— Shalin Sheth

What to watch in Q4 FY26

NRE division order inflow

Q4 FY26 and Q1 FY27

Current 16% of total order book

Target Increased order inflow and contribution to total order book

Why it matters

To verify if the company's selective approach in NRE translates into new quality orders and reverses the declining trend in segment contribution.

we are expecting the similar flow of the order coming into this division, in the Q4 for the year and the Q1 for the next year.

Risks & concerns

Lack of lucrative orders in NRE segment affecting margins
medium

Currently, there are not very lucrative orders in the NRE market where the company can achieve desired margins, leading to a focus on quality orders and capability building.

Management acknowledged, but prioritizing margin discipline
Intense competition and market consolidation in Green Hydrogen
medium

Many big and mid-sized players are entering the Green Hydrogen segment, leading to an expected consolidation phase in the next 2-3 years, which could impact market share and profitability.

Analyst acknowledged, confident in long-term strategy
Seasonality and weather impact on Q3 performance
low

Q3 is normally predominant with weather and monsoon, which can affect execution and overall financial performance.

Management acknowledged

Q&A highlights

7 direct

NRE division order buildup and pipeline Direct

we are expecting the similar flow of the order coming into this division, in the Q4 for the year and the Q1 for the next year. We are very selective in the orders and that is making us to make the right quality of the order book.

Addresses concerns about the declining share of NRE in the order book and provides a timeline for expected new orders, emphasizing a selective approach.

Asked by Shashank Jha

Electrolyzer 300 MW activation timeline Direct

we are putting up our first 30 MW electrolyzer assembly and manufacturing unit to be ready by 15th of March this year, in Ahmedabad. We are also actively going ahead for the first expansion towards our drive of 300 MW.

Clarifies the phased rollout of electrolyzer capacity, starting with 30 MW by March 2026, and confirms the 300 MW target is still on track.

Asked by Shashank Jha

NRE segment order book decline Direct

we are in a capacity and capability building zone when it comes to specifically solar projects... currently there are not very lucrative orders in the market where a company like us can be working at a desired margin.

Explains the reason for the lower NRE order book contribution, focusing on margin discipline and capability building over pure top-line growth in the current market.

Asked by Suvankar Mallick

EBITDA margin growth and target Partial

Normally this quarter 3 is predominant with the weather and monsoon also. So overall on YoY, because we should not look at the business on a fragmented basis, we should look at the business on YoY basis. So we are hopeful for having similar numbers by end of the year.

Management attributes current quarter margin performance to seasonality but avoids giving a specific forward-looking target, suggesting potential volatility or a conservative outlook.

Asked by Akhilesh Rawat

O&M services for EPC projects Direct

we are bringing value wherever it comes in terms of O&M services, but we also have the partners who are helping us for taking up our O&M projects for electrolyzers, for solar and for BESS. So we will take such projects wherever we are able to add the value in the company.

Indicates the company's strategy to leverage partnerships for O&M services, potentially expanding recurring revenue streams without significant in-house investment initially.

Asked by Akhilesh Rawat

Continuous decline in margins Direct

You have to get the business by compromising margin to develop the qualification and capability. So in one year, this portion will be completed and I'm sure that we'll be able to give those kind of margins into other part of the business also in time to come. And our target is to maintain the same numbers in terms of EBITDA and revenue for the all company basis in time to come.

Management explains that margin compression is a strategic trade-off for building qualifications and capabilities in new segments, with an expectation of margin recovery in the future.

Asked by Saurabh Gupta

NRE order book mix going down Direct

we've been developing the quality orders capability. And I think it is already completed. So by this year we'll be have the qualification of the solar. We'll be among the first company to complete the BESS project fully completed on EPC basis and as a developer basis. We expect our first project to come in June 2026.

Reaffirms the focus on quality orders and building capabilities in NRE, with expectations for new project wins in mid-2026, despite the current lower order book contribution.

Asked by Saurabh Gupta

Competition in Green Hydrogen Direct

There are some big players, there are the mid-sized players already are entering into the segment. And next three years or two years will be the consolidation phase. Many big players may decide not to continue and many small players have decided already to exit. And we are among the company who is sticking to the plan since last three years.

Management acknowledges intense competition and an upcoming consolidation phase in the Green Hydrogen segment but expresses confidence in their long-term strategy and ability to navigate the market.

Asked by Gautam

3 min read 6 chapters

Detailed narrative

Company Overview and Strategic Focus

Advait Energy Transitions Limited, formerly Advait Infratech Limited, is strategically focused on identifying and manufacturing unique products, particularly under 'Make in India' and 'Atmanirbhar' initiatives. The company operates through two main divisions: Power Transmission Solutions (PTS) and New and Renewable Energy (NRE), each managed by separate business units. A key strategic move involves expanding into electrolyzer and fuel cell manufacturing, with the ambition to become a leading player in India's green energy transition. This approach emphasizes profitable growth and disciplined order selection.

Q3 FY26 Financial Performance Highlights

For Q3 FY26, Advait Energy reported a significant financial performance. Consolidated revenue from operations surged by 114% YoY to INR 211.03 crores, while consolidated PAT increased by 78% YoY to INR 17.39 crores. For the nine months ended December 31, 2025, consolidated revenue reached INR 486 crores, marking a 138% YoY growth, and consolidated PAT stood at INR 35 crores, an 80% YoY increase. The consolidated EBITDA margin for Q3 FY26 was 11.45%, reflecting a disciplined execution strategy.

Robust Order Book and Growth Drivers

The company's order book has maintained a significant milestone of INR 1,000 crores, demonstrating a robust 132% YoY growth. The Power Transmission Solutions (PTS) division is the primary contributor, accounting for approximately 84% of the order book, while the New and Renewable Energy (NRE) division contributes 16%. Management anticipates that about 75% of the current order book will be executed by the next year, providing strong revenue visibility and confidence in continued growth. The company also noted a strong tender pipeline of similar size to its current order book.

Expansion in New and Renewable Energy (NRE) Segment

Advait is making strategic advancements in its NRE segment, focusing on BESS manufacturing and solar EPC projects. A significant development is the establishment of its first 30 MW electrolyzer assembly and manufacturing unit in Ahmedabad, which is targeted to be ready by March 15, 2026. This initiative is part of a broader plan to achieve 300 MW electrolyzer manufacturing capacity, with the first 100 MW phase expected to be completed by the end of the current financial year. The company is also developing a 2.5 GW BESS assembly plant, targeted for readiness by Q3 FY27.

Capital Expenditure Plans

To support its ambitious growth plans, Advait Energy has outlined substantial capital expenditure. The PTS division has an allocated capex of INR 100 crores, funded through internal accruals and existing funds. For the Advait Green Energy (AGPL) subsidiary, a total capex of INR 180-200 crores is planned for electrolyzer and BESS facilities, with INR 90-100 crores being raised through a mix of debt and equity. The overall capex for the electrolyzer factory for the current and next two financial years is approximately INR 200 crores, with the first phase expected to be completed by March 2026. The company incurred approximately INR 60 crores in capex during 9M FY26, with a full-year FY26 projection of INR 110 crores.

Margin Strategy and Outlook

Management addressed questions regarding margin trends, explaining that current margin levels, particularly in the NRE segment, reflect a strategic decision to prioritize capability building and qualification in new areas. This involves accepting orders that may initially offer lower margins to establish market presence and expertise. The company's long-term target is to maintain consistent EBITDA and revenue numbers across all business segments. They project ROCE targets of 25-30% for manufacturing, 15-25% for EPC, and 12-15% for development projects, anticipating margin improvement as new businesses mature and achieve scale.

This is an AI-generated summary of a publicly available earnings call transcript.

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