Advait Energy

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.

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.

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.

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.

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.

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.