Concord Control — Q2 FY26 earnings call

Call held 6 Nov 2025

Management summary

Concord Control Systems Limited delivered record H1 FY26 results, with revenue growing 64% and net profit up 85% year-on-year. Key achievements include RDSO clearance for Kavach 4.0 and securing its first field trial order, alongside strategic entry into zero-emission locomotive propulsion and railway EMS through the Fusion acquisition. The company maintains a bullish outlook, targeting significant long-term growth and market leadership in railway technology.

Highlights

  • Achieved highest ever H1 numbers with revenue growing 64% YoY to INR 81.55 crores.

  • Net Profit surged 85% YoY to INR 16.02 crores from INR 8.67 crores in H1 FY25.

  • Order book increased by 47% to INR 313 crores, indicating strong future revenue visibility.

  • Secured RDSO technical prototype clearance for Kavach 4.0 and received the first field trial order worth INR 19.5 crores.

  • Developed India's first zero-emission propulsion for diesel locomotives and entered railway electronics manufacturing services (EMS) via Fusion acquisition, targeting INR 200 crores revenue with >20% EBITDA margins.

Key financials

3 periods

Headline

  • Revenue
    ₹81.55 Cr
    YoY +64%
  • EBITDA
    ₹21.73 Cr
    YoY +53%
  • Net Profit
    ₹16.02 Cr
    YoY +85%
  • Order Book
    ₹313 Cr
    YoY +47%

H1 FY25

  • Net Profit
    ₹8.67 Cr

H1 FY26

  • Standalone Revenue
    ₹26 Cr
    YoY -26%

What they filed

Q4 FY26: revenue up 268.6%, net profit up 257.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY23Q4 FY23Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue26 23 30 35 36 +38%75 +226%82 +173%129 +269%
EBITDA3 5 8 9 10 +233%15 +200%22 +175%36 +300%
Net profit2 3 6 7 8 +300%14 +367%17 +183%25 +257%
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

₹313 Cr

as of 2025-09-30 quantified

47% YoY

Inflow this quarter

₹180 Cr

Execution

deliver the order book in next 18 to 24 months

Composition

  • Wireless communication and control systems (product)
  • Kavach 4.0 field trial (product) ₹19.5 Cr

Pipeline

qualified rfp

Upcoming Kavach tenders from ICF and CLW for multiple train sets, coach units, and locomotives; also other production units.

The company has a strong order book of INR 313 crores, representing a 47% increase, with a majority coming from wireless communication and control systems, and expects to deliver it within 18-24 months.

Source: Prepared remarks

Capital allocation

medium confidence
  • M&A Advanced Rail Acquisition · Integrated

    Acted as an innovation hub, driving growth and technology development.

    The capital invested has already been repaid through profits, and the business shows tremendous growth potential.

    The execution of that acquisition has been phenomenal. It was a very bold move. Similarly, Fusion is again a bold move with railway EMS coming in play. But to be honest, the turnaround has been really dramatic. The capital which we had invested, we have already been able to repay that through profits and the business is showing tremendous growth potential going forward.
  • M&A Fusion Acquisition · Integrated

    Entry into high-value electronics manufacturing services (EMS) for railway electronics, leveraging largest flexible PCB installed capacity in India and PLI schemes.

    Expected to achieve INR 200 crores revenue at full capacity with EBITDA margins upwards of 20%. Capital invested has already been repaid through profits.

    The capital which we had invested, we have already been able to repay that through profits and the business is showing tremendous growth potential going forward.
  • M&A Progota Stake increase · Closed

    To capitalize on high growth potential and order pipeline, making it a game changer for future growth.

    So today I can proudly say that we are now having 46.5% stake in Progota, and we at Concord are really conservative about any opportunity. We only get into something when we see that there is an opportunity which is about to be converted and this is exactly what happened when we took this call of increasing the stake.

Guidance & targets

Revenue

  • Revenue Growth (from FY25 base) Revenue · next 2 to 3 years · High confidence 5 times
    if I talk about our future growth, then in our way forward we will say that by whatever we delivered in financial year FY25, we are hopeful that in the next 2 to 3 years we will grow that by almost 5 times and this is just not our ambition, but we are very clear, confident and hopeful that we will be able to deliver that kind of growth in next 2 to 3 years.

    — Gaurav Lath

  • Revenue CAGR Revenue · next 3 to 5 years · High confidence 40% to 50%
    guidance basis we say that we look forward to grow at 40% to 50% CAGR for next 3 to 5 years in terms of our revenue

    — Gaurav Lath

  • Fusion Revenue Potential Revenue · at full capacity · High confidence INR 200 crores
    at full scale the company should be doing a revenue of about INR200 crores

    — Gaurav Lath

Profitability

  • Fusion EBITDA Margin Profitability · at full scale · High confidence upwards 20%
    the EBITDA margins should be upwards 20%.

    — Gaurav Lath

  • Kavach EBITDA Margin Profitability · future · High confidence upwards 25%
    we foresee that it should contribute anywhere upwards of 25% in terms of EBITDA margins

    — Gaurav Lath

Other

  • WILD Opportunity Realization Other · by 2028-2029 · Medium confidence 3 to 4 years

    Previously 5 years → 3 to 4 years

    we are very hopeful that this opportunity or the target opportunity which is there in 2030 instead of 5 years we might do it a little before in 3 to 4 years maybe.

    — Gaurav Lath

What to watch in Q3 FY26

Kavach 4.0 Field Trial Completion

next quarter
Current Loco commissioning to start in a few weeks
Target Completion of 5,000 km trial

Why it matters

Successful completion is crucial for widespread implementation and commercialization of Kavach 4.0, unlocking significant revenue potential.

We will start the loco commissioning in a few weeks.

Q&A highlights

7 direct
Fusion Acquisition Cost and Financial Potential Partial
So acquisition cost is confidential as part of the agreement and it will be shared in 2 years. ... at full scale the company should be doing a revenue of about INR200 crores and the EBITDA margins should be upwards 20%.

Clarifies the significant revenue and margin expectations from the new strategic acquisition, though the acquisition cost remains undisclosed for now.

Asked by Akshay Kaila

Kavach 4.0 Qualification and Field Trial Status Direct
So our entire product has been developed and has been functionally tested by the main authorities. And based on that, the RDSO has validated us for field trials for which we have already secured an order and have received the tender. ... We will start the loco commissioning in a few weeks.

Confirms the critical RDSO clearance for Kavach 4.0 and provides a clear timeline for the commencement of field trials, which are essential for widespread implementation.

Asked by Rupesh Tatia

Kavach Tender Participation and Opportunity Direct
In both the tenders, Progota India as Concord is definitely qualified to participate as a developmental vendor. And we foresee that these tenders will be finalized before this financial year ends. And we will have secured good amount of orders if we are able to secure a decent position.

Highlights the company's eligibility and strong positioning to secure significant orders from upcoming large Kavach tenders, expected to finalize by FY26 end.

Asked by Rupesh Tatia

Order Book Tracking for Retail Investors Direct
No, sir. What I mean to say is that you might have received an order worth more than INR160 crore, INR170 crores. But we received a notification as a retail investor of the Kavach order worth INR14 crore, INR15 crores. We did not receive a notification of the rest of the orders. So, we do not know what is going on in the company. So it will be helpful. Thank you. Point noted, sir.

Addresses a concern regarding the transparency and frequency of order book updates for retail investors, indicating a potential improvement in future disclosures.

Asked by Shashank Sagar

Working Capital Requirements and Fundraising Direct
Plus, at the same time, we are working with multiple banks to increase as and when the working capital requirement arises. ... Sir, as and when there is growth, we will do when it is necessary, be it from the banks or from the investors.

Provides insight into the company's strategy for managing working capital and potential funding sources to support its aggressive growth plans.

Asked by Chitresh Lunawat

Fusion's Strategic Scope and Government Support Direct
So flexible PCB India is one of the most sunshine sectors with semiconductors and everything coming in. And there are massive PLI schemes which the government of India is coming with and is contributing to grow this industry.

Explains the strategic rationale behind the Fusion acquisition, emphasizing its alignment with government initiatives and the growth potential in the semiconductor and flexible PCB sector.

Asked by Chitresh Lunawat

Acquisition Strategy and Kavach Approval Process Direct
Generally, your question is what do we see that we acquire? We either look at any technology which is directly impacting the safety of Indian Railways. That is one technology we want to get into. Everything you can't develop in-house on day one. So you have to partner, collaborate and bring more people and work with them, if you understand the railway ecosystem.

Clarifies the company's M&A philosophy, focusing on acquiring technologies that enhance railway safety and complement in-house development, rather than just acquiring for scale.

Asked by Anurag Agarwal

Kavach Developmental Vendor Restrictions and Product Differentiation Direct
To clarify there are no restrictions in terms of product specifications or product deployment of Kavach for any approved or a developmental vendor. ... We are a company which has a 100% in-house developed product and we are not dependent on any third-party developer for any improvements or cost optimization which brings our overall cost of the product significantly lower than others.

Provides clarity on the competitive landscape for Kavach, highlighting that developmental vendors are only limited by quantity entitlement, and emphasizing Concord's cost advantage and in-house R&D as key differentiators.

Asked by Anurag Agarwal

2 min read 6 chapters

Detailed narrative

Record H1 FY26 Financial Performance

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.

Kavach 4.0 Clearance and Commercialization

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.

Pioneering Zero-Emission Locomotive Propulsion

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.

Strategic Entry into Railway Electronics Manufacturing Services (EMS)

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.

Aggressive Growth and Acquisition Strategy

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.

Kavach Market Opportunity and Competitive Edge

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.

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