Advait Energy — Q4 FY26 earnings call

Call held 1 Jun 2026

Management summary

Advait Energy Transitions reported a strong Q4 and full year FY26, driven by robust revenue growth and a record order book. The company is strategically investing in new energy segments like BESS and electrolysers, with significant capex plans for capacity expansion. While margins saw slight compression for the full year, management remains optimistic about future growth and margin improvement, supported by a healthy pipeline and strategic initiatives.

Highlights

  • Consolidated Revenue for Q4 FY26 grew 18% YoY to ₹228 crores.

  • Consolidated PAT for Q4 FY26 increased 55% YoY to ₹19.96 crores.

  • Full year FY26 Consolidated Revenue surged 80% YoY to ₹714.52 crores.

  • Order book reached an all-time high of ₹1,304 crores, demonstrating 159% YoY growth and strong visibility.

  • NABL laboratory certification and OPGW product supplier approval received, enhancing manufacturing capabilities and market reach.

Concerns

  • FY26 Consolidated EBITDA margin slightly compressed to 11.73% from 12.87% in FY25.

  • FY26 Consolidated PAT margin slightly compressed to 7.71% from 8.05% in FY25.

  • Debt-equity ratio increased to 0.46x as of March 26 from 0.23x as of March 25, indicating higher leverage.

Key financials

2 periods

Q4 FY26

  • Consolidated Revenue
    ₹228 Cr
    YoY +18%
  • Consolidated EBITDA
    ₹28.78 Cr
    YoY +49%
  • Consolidated EBITDA Margin
    12.6%
  • Consolidated PAT
    ₹19.96 Cr
    YoY +55%

FY26

  • Consolidated Revenue
    ₹714.52 Cr
    YoY +80%
  • Consolidated EBITDA
    ₹83.78 Cr
    YoY +64%
  • Consolidated EBITDA Margin
    11.7%
  • Consolidated PAT
    ₹58.08 Cr
    YoY +75%
  • Debt-Equity Ratio
    0.46×

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

₹1,304 Cr

as of 2026-03-31 quantified

159% YoY

Execution

Normally our orders execution timeline is between 6 months to 12 months to 18 months depending upon the type of business.

Composition

Mix 2 segments
  • Power Transmission Solution 64%
  • New and Renewable Business 36%

Share of order book by segment

Pipeline

qualified rfp

Working on various opportunities for orders about INR 2,000 crores for the year.

The diversified and strong order book provides excellent visibility for sustained growth over the coming years.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹100 Cr this quarter · ₹350 Cr (FY27) planned already arranged through internal funds for Q4 FY26 capex
    • PTS division ₹100 Cr
    • BESS and electrolysers facilities (excluding IPP) ₹212 Cr
    • Multi-integrated manufacturing facility near Dholera
    we have done a sizeable capex for PTS division during the year, that is about Approx INR100 crores. That is already arranged through our internal funds, our total our capex for the next year for the excluding IPP for the year 26, For the next year, we are looking forward the capex of about INR137 crores for excluding IPP and various IPP business and investment in our subsidiaries to put up the facilities for the BESS, electrolysers will be about INR75 crores. Total our capex should be about INR300 crores to INR350 crores for the year.
  • Debt Debt disclosed
    Debt-equity ratio stood at 0.46 times as on March 26 versus 0.23 times as on March 25. Long-term credit rating upgraded to CRISIL A-/stable.
  • Dividend ₹2/share (final)
    We are pleased to share Board of Directors have recommended a dividend of INR2 per equity share for the year 26, subject to shareholders' approval.
  • M&A Advait Green Energy Private Limited Joint venture · Integrated

    Focus on green hydrogen and EPC business of solar

    To further enhance focus and execution, we have set up a dedicated subsidiary like Advait Green Energy Private Limited focusing on green hydrogen and EPC business of solar
  • M&A Advait Battery Ecosystems Private Limited Joint venture · Integrated

    Focus on BESS manufacturing and C&I solutions

    Advait Battery Ecosystems Private Limited to focus on BESS manufacturing and C&I solutions
  • M&A Akara Joint venture · Integrated

    Focus on carbon solutions delivery

    Akara focusing on our carbon solutions delivery
  • M&A Aura (Advait Unified Resource) Joint venture · Integrated

    Focus on asset-based business

    Aura, that is Advait Unified Resource, to focus on our asset-based business.
  • M&A AVL and TECO (for fuel cell plant) Joint venture · Announced

    Technology transfer agreement for fuel cell manufacturing plant in Ahmedabad

    In fuel cell, you would have read our news that we did the joint venture MoU with one of the most renowned technical company called AVL and TECO for putting up a plant in Ahmedabad.

Guidance & targets

Revenue

  • Sustained revenue growth Revenue · future · High confidence 40%+
    We are confident on delivering sustained revenue growth, which may be 40% plus, supported by our strong order book and robust tender pipeline that provides clear visibility into future performance.

    — Shalin Sheth

Order Book

  • Order book by next year-end Order Book · next year-end · High confidence ₹1,600 to ₹1,650 crores
    We are looking forward that next year our company should stand at about INR1,600 to INR1,650 crores of order book by end of the next year.

    — Shalin Sheth

Order Book Composition

  • NRE contribution to order book Order Book Composition · next year · High confidence 65:35

    Previously 25% to 27% → 65:35

    Yes, our ratio is being changed with the shifting by 10% every year. So this year we are having about 25% to 27% from NRE. Next year looking forward that this will be about 65:35.

    — Shalin Sheth

Margin

  • Overall margin improvement Margin · next year · High confidence 1 point
    So we are looking forward for improving the margins by one point for the next year.

    — Shalin Sheth

BESS Operations

  • BESS plant operational status BESS Operations · September-October · High confidence operational
    Sir, this plant will be operational in the month of September-October.

    — Shalin Sheth

BESS Revenue

  • BESS manufacturing revenue BESS Revenue · next year · Medium confidence ₹100-200 crores
    So, we are looking forward maybe INR100 crores to INR200 crores of business for the manufacturing of the BESS.

    — Shalin Sheth

  • BESS manufacturing revenue BESS Revenue · from next year onwards · Medium confidence ₹1,000 crores+
    But from the next year onwards, your sentence may be right that if we operate so and so capacity, we can talk about INR1,000 crores plus for that plant.

    — Shalin Sheth

Electrolyser Margins

  • Electrolyser business margins Electrolyser Margins · subsequent year (FY28) · Medium confidence 20%

    Previously 5-10% → 20%

    And the margins is around 5% to 10% to start with, once the supply chain will be adding over, the margins will be around 20% in the subsequent year.

    — Chaitanya Mallurwar

PTS Division Growth

  • PTS division growth PTS Division Growth · next 5 years · High confidence 40% to 50%
    Sir, this after the capex is completed, our vision is to continue with this 40% to 50% growth for next 5 years.

    — Shalin Sheth

Fuel Cell Market

  • Fuel cell market size Fuel Cell Market · next two to three years · Medium confidence 500 megawatt
    I personally see this market should go up to 500 megawatt before '28, '29. I can see personally. And the total it can go into gigawatt. But at the moment, I see 500 megawatt in next two to three years.

    — Shalin Sheth

BESS Utilization

  • BESS plant utilization BESS Utilization · High confidence 80%, 85%
    80%, 85% utilization.

    — Shalin Sheth

What to watch in Q1 FY27

BESS plant commissioning and initial revenue contribution

next year
Current Under construction, expected operational Sep-Oct 2026
Target Commercial operations and initial revenue of ₹100-200 crores

Why it matters

Successful commissioning and revenue generation from the BESS plant are crucial for validating the company's strategic pivot into new energy segments and achieving revenue targets.

Sir, this plant will be operational in the month of September-October. So, we are looking forward maybe INR100 crores to INR200 crores of business for the manufacturing of the BESS.

Risks & concerns

  • Increased debt-equity ratio

    medium

    Debt-equity ratio increased to 0.46x as of March 26 from 0.23x as of March 25, indicating higher leverage for expansion.

    Debt-equity ratio stood at 0.46 times as on March 26 versus 0.23 times as on March 25.

    Management acknowledged

  • Raw material price volatility and impact on margins

    medium

    High growth in prices of metals, fuel, and other ingredients impacted industry margins, though the company aims for 1% improvement next year.

    Looking at the margin, madam, in this year we have seen very high growth in the prices of the metals, also the fuel, and lot of ingredients. So that has taken the margin of the industry as a whole.

    Management acknowledged

  • Working capital intensity impacting cash flow

    medium

    Operating cash flow is low despite high PAT due to significant working capital investment, which is expected to improve as working capital is realized.

    So, cash flow is largely INR5.82 crores, which is you have mentioned correctly. It is against after factoring the working capital investment into. Time ahead, year-on-year, when we are realizing working capital into a business, this cash flow will be further improved.

    Analyst acknowledged

Q&A highlights

5 direct
Order execution timeline and revenue growth conservatism Direct
Normally our orders execution timeline is between 6 months to 12 months to 18 months depending upon the type of business. If we refer to the last year investor call, we have also mentioned the similar thing. So this year we could achieve about 80% revenue growth, and we are expecting robust growth for this year. So yes, this figure is a little conservative.

Analyst questioned if the 40%+ revenue growth guidance was conservative given the strong order book and typical execution timelines, to which management confirmed it is a conservative estimate.

Asked by Disha

Order pipeline and FY27 order book target Direct
Looking to the order pipeline, we are working on the various opportunities for the order about INR2,000 crores for the year. We are looking forward that next year our company should stand at about INR1,600 to INR1,650 crores of order book by end of the next year.

Management provided specific figures for the current order pipeline and a target for the order book by the end of the next fiscal year, offering clear forward visibility.

Asked by Disha

Margin outlook for FY27 and capex plans Direct
Our margins with our manufacturing facility being opened up for this year and having the sustained program for putting more manufacturing will keep on improved marginally. So we are looking forward for improving the margins by one point for the next year. Total our capex should be about INR300 crores to INR350 crores for the year.

Analyst inquired about future margin expansion post-capex and the total capex for FY27, receiving specific targets for both.

Asked by Disha

BESS project revenue recognition (BOO vs EPC) Partial
Shashank bhai, actually that revenue is what the project for BOO we have won, we have given order on EPC basis to our group company named Advait Green Energy Private Limited and the INR43 crores we have reported from the same as an EPC revenue. Sir, electricity generation revenue will be reported in special purpose vehicle -SPV company separately. It is going to be part of consolidated statement.

Analyst sought clarification on how revenue from Build-Own-Operate (BOO) BESS projects would be recognized, revealing that EPC portion is recognized by a subsidiary and generation revenue by an SPV, consolidated later.

Asked by Shashank Jha

Electrolyser margins and NRE impact on overall margins Direct
And the margins is around 5% to 10% to start with, once the supply chain will be adding over, the margins will be around 20% in the subsequent year. Madam, thank you very much for the question. Looking at the margin, madam, in this year we have seen very high growth in the prices of the metals, also the fuel, and lot of ingredients. So that has taken the margin of the industry as a whole. But wherein in this situation also, we envisage at least 1% improvement in the margin for the next year.

Analyst questioned the impact of NRE segment growth on overall margins, leading to management's explanation of raw material price impact and a commitment to 1% margin improvement next year, with specific electrolyser margin targets.

Asked by Krishna Yoga

Funding plan for capex and potential equity dilution Direct
Yes, of course, we'll take up the equity route, but more predominantly it will also follow the debt route. So we'll make a mix based on the business composition. But it is very clear that we are going to expand. Sir, equity dilution will only happen if it benefits the business and overall shareholders. Because I am also a shareholder like you.

Analyst pressed on the funding strategy for the significant capex, specifically regarding equity dilution, to which management confirmed a mix of equity and debt, emphasizing shareholder benefit.

Asked by Shashank Jha

Cash flow conversion from PAT Partial
So, cash flow is largely INR5.82 crores, which is you have mentioned correctly. It is against after factoring the working capital investment into. Time ahead, year-on-year, when we are realizing working capital into a business, this cash flow will be further improved. Largely our revenue has been increased during last quarter, if you can see.

Analyst highlighted the low operating cash flow despite high PAT, prompting management to explain it's due to working capital investment driven by increased revenue, with expected improvement over time.

Asked by Santosh

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Detailed narrative

Strong Financial Performance in Q4 and Full Year FY26

Advait Energy Transitions reported a robust Q4 FY26 with consolidated revenue growing 18% YoY to ₹228 crores and PAT increasing 55% YoY to ₹19.96 crores. For the full year FY26, consolidated revenue surged 80% YoY to ₹714.52 crores, with PAT growing 75% YoY to ₹58.08 crores. While full-year EBITDA and PAT margins saw slight compression compared to FY25 (EBITDA margin 11.73% vs 12.87%, PAT margin 7.71% vs 8.05%), the company demonstrated strong top-line growth.

Record Order Book and Future Visibility

The company achieved an all-time high order book of ₹1,304 crores as of March 31, 2026, representing a significant 159% YoY growth. This order book is diversified, with 64% from power transmission solutions and 36% from the new and renewable business segment, providing excellent visibility for sustained growth. Management indicated an order pipeline of ₹2,000 crores for the year and aims for an order book of ₹1,600-1,650 crores by the end of the next fiscal year.

Strategic Investments in New Energy Transitions

Advait Energy is aggressively investing in future growth areas aligned with its Vision 2030, particularly in green hydrogen, BESS, and electrolysers. A multi-integrated manufacturing facility near Dholera is expected to be operational by Q4 FY27. The company has established dedicated subsidiaries like Advait Green Energy, Advait Battery Ecosystems, Akara, and Advait Unified Resource to focus on these high-potential segments, including a JV for a fuel cell plant in Ahmedabad.

Key Milestones and Approvals Achieved

During Q4 FY26, Advait secured a ₹70 crore supply order for ERS to MNRE and a ₹33 crore EPC order in Uttarakhand. The company also received NABL laboratory certification for its manufacturing facility and OPGW product supplier approval from three new state utility boards. In the renewable energy segment, Advait commissioned 75 MW of Adani's project at Khavda and is executing another 67.5 MW project expected to complete by Q1 FY27.

Capital Allocation and Shareholder Returns

The company incurred approximately ₹100 crores in capex for the PTS division in Q4 FY26, funded through internal accruals. For FY27, total capex is projected to be ₹300-350 crores, including ₹137 crores (excluding IPP) and ₹75 crores for BESS and electrolysers facilities. The Board recommended a dividend of ₹2 per equity share for FY26, subject to shareholder approval. The debt-equity ratio increased to 0.46x from 0.23x YoY, and the long-term credit rating was upgraded to CRISIL A-/stable.

Outlook and Margin Improvement Strategy

Management is confident of delivering sustained revenue growth of 40%+ and aims for a 1-point improvement in overall margins for the next year, despite raw material price volatility. Electrolyser business margins are expected to start at 5-10% and reach 20% in the subsequent year. The company anticipates the NRE segment's contribution to the order book to shift significantly to a 65:35 ratio next year, reflecting its strategic focus on energy transition.

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