Yash Highvoltage

Yash Highvoltage reported robust financial results for H1 FY26, with total revenues increasing by 78.6% year-on-year to INR 102 crores, up from INR 57 crores in the previous corresponding period. EBITDA grew by 109.9% year-on-year to INR 23 crores, with the EBITDA margin expanding by 341 basis points to 22.8%. Profit after tax (PAT) also saw significant growth of 119.4% year-on-year, reaching INR 14 crores, and the PAT margin improved by 256 basis points to 13.7%.

The global transformer bushing market is estimated at INR 25,000 crores, projected to grow at a CAGR of at least 5.6% through 2034, driven by renewable integration, grid modernization, and smart grid expansion. Yash Highvoltage's current product range addresses a global market of INR 10,000-12,000 crores, which is set to expand to INR 15,000-16,000 crores with the commissioning of its new greenfield project scaling up to 550 KB. The company anticipates multi-fold growth, targeting a minimum CAGR of 35% over the next five years.

The company is actively expanding its manufacturing capabilities, with a new greenfield facility for RIP bushings under development. As of September 30, 2025, approximately 45% of the IPO proceeds have been applied towards this project, with a balance of INR 51 crores earmarked for factory layout. The plant is expected to be ready by the end of the current financial year, with trial production commencing by February-March 2026 and commercial production by H2 FY27. The total capex for this greenfield project is estimated at INR 100 crores plus, covering civil, building, equipment, and high voltage test laboratories.

Yash Highvoltage has acquired a 50% equity stake in Sukrut Electric Company, a Pune-based transformer component manufacturer, in partnership with Quality Power equipment. This collaboration aims to enhance Sukrut's scale, capability, and market reach. While the share purchase agreement is signed, shareholder execution is still pending, meaning the acquisition is not yet fully completed, and no revenue contribution is expected in the current financial year. Management anticipates Sukrut's top line to grow 8-10 times over the next 5-6 years post-integration.

The company is expanding its global footprint, having established a presence in the United States with ESFP USA, a dedicated sales and marketing office. This move aims to bring innovation and reliability closer to customers across the Americas. Additionally, Yash has launched strategic distribution partnerships with Weidmann for European and North African markets, and with Electrolink UK for expansion into the UK, Ireland, and Wales. The company's export contribution currently stands at 4.5-5% of total revenue, with significant potential to increase this as the new greenfield factory opens up global markets for products not currently exported.

Management notes that the global energy demand is expanding, driving significant stress on transmission and distribution infrastructure, leading to strong demand for transformers and components like bushings. While the broader transformer market might face overcapacity and price wars, Yash believes the bushing segment has high entry barriers and is less susceptible to such pressures. The company currently holds about 30-35% market share in the Indian market and aims to capture a much larger share of the rapidly expanding global market, which is dominated by a few large players like Hitachi, Siemens, and GE.

Yash Highvoltage maintains a healthy balance sheet with a conservative debt-to-equity ratio of 0.17 and a current ratio of 2.61, providing sufficient liquidity for controlled growth. The company effectively manages working capital through tighter collections and efficient supply functions. While there is a small debt of INR 27-28 crores, management is comfortable with current levels and is open to considering additional debt or equity for future expansion needs, but has no immediate plans for repayment or new borrowings, preferring to decide based on demand and internal accruals.