Concord Control

Concord Control Systems Limited delivered robust financial results for FY25, with consolidated revenue reaching ₹124.5 crores, marking a significant 90% year-on-year increase. Net profit (PAT) also saw substantial growth, increasing by 77% to ₹22.60 crores. The second half of FY25 was particularly strong, with revenues up 113%, EBITDA margins up 67%, and EPS growing by 97.6% compared to H2 FY24, showcasing accelerated performance.

As of March 31, 2025, the company maintains a sustainable unexecuted order book of ₹212.5 crores, which is approximately 1.7 times its FY25 revenues. During H2 FY25, the company received new orders totaling ₹152 crores. Management indicated that orders are generally executed within 12 to 18 months, providing strong revenue visibility and a solid foundation for sustained growth in the near to medium term.

Concord has strategically expanded its business structure to include a new Metro vertical, following a German Transfer of Technology (TOT) agreement in FY2025 for OHE condition monitoring. This segment presents an opportunity size of approximately ₹250 crores until FY2030. Furthermore, the company increased its ownership in Advanced Rail, acquired in early Q1 2025, from 90% to 100%, focusing on embedded electronics for locomotives and aiming for improved operational efficiencies.

The company is actively pursuing significant opportunities in DPWCS (Super Anaconda), which has an estimated market size of over ₹2,000 crores for fitment in freight locomotives over the next 4-5 years. Additionally, Concord is progressing with Kavach 4.0, with its prototype under RDSO evaluation and ongoing SIL4 certification efforts, anticipating participation in field trial tenders soon for this large-scale railway safety system. The WILD initiative, in partnership with IISc Bangalore, has also secured initial orders.

Management reiterated its commitment to achieving a 40-50% CAGR in revenue growth over the next 3-5 years. They also aim to sustain EBITDA margins within the 22-25% range, consistent with last year's performance. The company's competitive edge is attributed to its in-house technology, a robust R&D team of 60-70+ engineers, and a focus on cost optimization and intellectual property protection, positioning it for long-term success.

The company acknowledged an increase in inventory and debtors, primarily due to the nature of embedded electronics products that involve imports and on-site installation, leading to payments post-commissioning. Concord's debt-to-equity ratio remains negligible. The company will evaluate fund availability, including debt or equity, to support future growth and will continue to assess equity positions in associate companies like Progota for potential increased investment as needs arise, while being cautious with public money.

Concord Control Systems is on track to complete its three-year listing requirement on the exchange by October 10, 2025, after which it plans to migrate to the main board, subject to regulatory approvals. This move is expected to enhance the company's visibility and access to a broader investor base, supporting its ambitious growth plans and positioning it as a 360-degree solution provider for global railway and locomotive clients, with increasing focus on hydrogen and battery-powered locomotives.