Concord Control

Concord Control Systems Limited reported its highest-ever H1 numbers for FY26, with revenue growing 64% year-on-year to INR 81.55 crores. EBITDA increased by 53% to INR 21.73 crores, demonstrating strong operational performance. Net profit saw a significant surge of 85% to INR 16.02 crores, up from INR 8.67 crores in H1 FY25. The company's order book also expanded by 47% to INR 313 crores, providing robust revenue visibility for the coming periods.

The company achieved a major milestone by securing RDSO technical prototype clearance for Kavach 4.0, making its products eligible for widespread implementation across the railway network. Following this, Concord received its first field trial order for Kavach 4.0, valued at INR 19.5 crores, covering a 53-kilometer section in the South Central Railway zone. Loco commissioning for these trials is slated to begin in a few weeks, with the 5,000 km trial expected to be completed within approximately 31 days of uninterrupted running, paving the way for commercial deployment.

Concord has developed India's first zero-emission propulsion system for diesel locomotives, enabling the conversion of existing diesel engines into fully electric or battery-powered units. This innovation not only reduces the scrappage of railway assets but also offers significant cost benefits and supports net-zero carbon emission goals. The company is also in advanced stages of developing a hybrid hydrogen-battery propulsion system, positioning itself for both domestic and global market opportunities in sustainable railway technology.

Through the acquisition of Fusion, Concord has strategically entered the high-value railway electronics manufacturing services (EMS) sector. Fusion possesses India's largest installed capacity for flexible PCBs, and this move is expected to generate over INR 200 crores in revenue at full capacity with EBITDA margins exceeding 20%. This acquisition provides backward integration for Concord's existing products and leverages government PLI schemes for the semiconductor industry, enhancing the company's capabilities and market reach.

Concord's growth strategy is driven by both organic development and strategic acquisitions. The company increased its stake in Progota to 46.5%, anticipating it to be a 'game changer' for future growth and order pipeline. The successful integration of Advanced Rail, acquired last year, has already repaid its invested capital through profits. Management is bullish on future prospects, aiming for a 40-50% revenue CAGR over the next 3-5 years and a 5-fold increase in revenue from FY25 levels within 2-3 years, underpinned by continuous R&D and innovation.

Concord is qualified as a developmental vendor for significant upcoming Kavach tenders, including 2,500 train sets from ICF and over 6,000 locomotives from other production units, with finalization expected by the end of FY26. The company emphasizes its competitive advantage through 100% in-house developed Kavach products, which offer superior cost efficiency and target EBITDA margins upwards of 25%. This differentiation stems from its integrated R&D, design, and manufacturing capabilities, reducing reliance on third-party developers.