Concall AI

Yash Highvoltage — Q2 FY26 earnings call

Call held 15 Oct 2025

Management summary

Yash Highvoltage delivered a strong H1 FY26, marked by significant year-on-year growth in revenue, EBITDA, and PAT, driven by robust order inflows and operational efficiency. The company is actively expanding its capacity with a new greenfield plant on track for H2 FY27 commercial production and has made strategic moves including the acquisition of a 50% stake in Sukrut Electric Company and establishing a US presence. While the broader transformer market faces potential overcapacity, Yash believes its niche in bushings and strategic expansions position it for continued multi-fold growth, targeting a 35-40% CAGR over the next five years.

Highlights

Total revenues increased by 78.6% year-on-year to INR 102 crores in H1 FY26.
EBITDA grew by 109.9% year-on-year to INR 23 crores, with EBITDA margin expanding 341 BPS to 22.8%.
Profit after tax (PAT) increased by 119.4% year-on-year to INR 14 crores, with PAT margin at 13.7% (up 256 BPS).
Acquired 50% equity stake in Sukrut Electric Company to enhance scale, capability, and reach.
Established presence in the United States with ESFP USA and a dedicated sales and marketing office, strengthening global footprint.
Greenfield plant for RIP bushings is on track for trial production by Feb-Mar 2026 and commercial production by H2 FY27.

Concerns

Inventory levels have increased due to supply chain challenges, requiring higher stock to ensure timely dispatch.
Sukrut acquisition is not yet fully completed, with shareholder execution pending, meaning no revenue contribution in the current financial year.
Management acknowledges potential for overcapacity and price wars in the broader transformer market, though they believe bushing players are less affected.

Key financials

01 Revenue ₹102 Cr +78.6%YoY
02 EBITDA ₹23 Cr +109.9%YoY
03 EBITDA Margin 22.8%
04 PAT ₹14 Cr +119.4%YoY
05 PAT Margin 13.7%
06 Debt-to-Equity Ratio 0.17
07 Current Ratio 2.61

What they filed

Q4 FY26: revenue up 126.7%, net profit up 300.0% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY24	Q4 FY24	Q2 FY25	Q4 FY25	Q2 FY26	Q4 FY26
Revenue	48	60	57	93	100 +108%	136 +127%
Expenses	37	50	46	71	79	100
EBITDA	11	10	11	21	21 +91%	36 +260%
Margin	23%	17%	19%	23%	21%	26%
Other income	0	1	0	2	2	2
Interest	1	1	1	2	2	2
Depreciation	1	1	1	2	2	4
Profit before tax	9	9	9	19	19 +111%	32 +256%
Tax rate	28%	33%	27%	23%	26%	25%
Net profit	6	6	6	15	14 +133%	24 +300%
EPS	20.77	19.31	2.89	5.25	4.91	8.31

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

₹300 Cr

as of 2025-10-15 quantified

Execution

executable over the next 1.5 to 2 years

Composition

Mix 3 geographies

Export (total revenue) 4.5%
Indigenous Business Export 35%
New Greenfield Factory Potential Export 82%

Share of order book by geography· categories overlap, and sum to 121.5%

Pipeline

other

Order flow is unlimited, demand is huge.

Management reports a healthy order book for the next 1.5-2 years and an unlimited order flow, indicating strong demand that exceeds current capacity.

Source: Q&A

Capital allocation

high confidence

Capex ₹100 Cr IPO proceeds and internal accruals
- Greenfield project for 550 KB RIP bushings ₹100 Cr
- Infrastructure for civil, building, equipment, laboratory
- Tools for winding, autoclaves, material movement, high voltage test laboratories
So, first of all, the IPO proceeds are towards the capacity build-up. We are building the infrastructure for the civil, the building, the equipment, the laboratory. Okay. And since the company's balance sheet is healthy, smaller investments, what we need for marketing expenditure or people addition, that all is taken care from our internal accuracy.
Debt Debt disclosed

Our balance sheet remains healthy and conservatively funded with a debt-to-equity ratio of 0.17 and a current ratio of 2.61.
M&A Sukrut Electric Company Acquisition · Signed

Enhance Sukrut's scale, capability, and reach across both domestic and international transformer markets.
No change in current FY; revenue contribution expected from next financial year. Expected to grow 8-10 times the top line in 5-6 years.

We have acquired 50% equity stake in Sukrut Electric Company, which is a Pune based transformer component manufacturing company, and in partnership with the Quality Power equipment from Sangli. This collaboration combines the strengths of Yash and Quality Power both to enhance Sukrut's scale, capability, and reach across both domestic and international transformer markets.
Liquidity Liquidity disclosed Sufficient liquidity to support controlled growth, with working capital effectively managed through tighter collections and efficient supply functions. INR 51 crores balance from IPO proceeds earmarked for factory layout.

Providing us with sufficient liquidity, sufficient to support controlled growth. As we prepare inventory and capacity to ramp up, our working capital is effectively managed through tighter collections and efficient supply functions, maintaining a good cash flow conversion.

Guidance & targets

Growth

Overall Company Growth Growth · historically maintained · High confidence 35-40%

We believe that even if we maintain a 35%, 40% growth, as we have been maintaining historically, from a 200-plus-Crore turnover, which would generally be expected this year.

— Keyur Shah
Multi-fold Growth CAGR Growth · next five years · High confidence 35%

we are well on course to deliver multi-fold growth over the next five years, targeting a minimum CAGR of 35%, as we have been maintaining historically.

— Keyur Shah

Revenue

Annual Revenue Growth Revenue · coming 8-10 years · High confidence 8-10x

We believe that growth of 8x to 10x of the annual revenue is not a conservative number, it is a much achievable number in the coming 8-10 years.

— Keyur Shah
Sukrut Top Line Growth Revenue · next 5-6 years · High confidence 8-10x

we believe that we should be able to grow at least 8 to 10 times the Sukrut top line also in next, not more than 5-6 years.

— Keyur Shah

Capacity

Greenfield Plant Commercial Production Start Capacity · H2 FY27 · High confidence H2 FY27

We expect plant to be ready by the end of this financial year, and we'll start contributing in a couple of quarters, after that with commercial production.

— Keyur Shah
Greenfield Plant Full Utilization Capacity · 2.5-3 years · High confidence 2.5-3 years

Yes, full utilization. Sorry, I thought fund utilization. Yes. Full utilization will take 2.5 to 3 years. That's clear, of the new facility.

— Keyur Shah
Greenfield Plant First Year Utilization Capacity · first year · High confidence 30-35%

Yes, I think that would be incremental. It will start with 30%-35%.

— Keyur Shah

Margin

EBITDA Margin Trajectory Margin · from '27-'28 onwards · Medium confidence Steep growth

So we believe that there will be considerable margin expansion from '27-'28 onwards. '26-'27, we still might be able to improvise marginally on our EBITDA, maintain our EBIT increase, but beyond that we see steep increase.

— Keyur Shah

What to watch in Q3 FY26

Greenfield Plant Commercial Production Start

H2 FY27

Current Trial production expected Feb-Mar 2026

Target Commercial production start

Why it matters

Crucial for expanding capacity to 550 KV RIP bushings and unlocking new market opportunities, driving future revenue growth and margin expansion.

We expect plant to be ready by the end of this financial year, and we'll start contributing in a couple of quarters, after that with commercial production.

Risks & concerns

Overcapacity and price wars in the broader transformer market
medium

Analyst raised concerns about potential overcapacity in the transformer sector leading to price wars. Management believes the bushing segment is less affected due to high entry barriers and sustained demand.

Analyst downplayed
Supply chain challenges leading to increased inventory
medium

Inventory levels have increased compared to March due to component supply delays, requiring the company to hold more stock to ensure timely dispatch, moving away from a just-in-time model.

Analyst acknowledged
Competition and capacity additions in the bushing segment
medium

Management acknowledged existing domestic and global competition, noting that all 10-12 global bushing players are also investing in capacity to meet increased demand.

Analyst acknowledged
Land acquisition and transmission line problems as headwinds for the transformer sector
low

Analyst raised concerns about macro issues like land acquisition and transmission line problems. Management views these as broader regulatory/sector issues that do not directly impact Yash as a component manufacturer.

Analyst distanced

Q&A highlights

7 direct

Global market strategy and competitive differentiation Direct

We, as Yash, have understood the global transformer market and we have identified those countries who have strong customer OEMs. There are two types of requirements. One is where there is a strong OEM base and second is where there are the end users. So, we are focusing on both the strategies.

Clarifies the company's dual strategy for global expansion, targeting both OEMs and end-users, and its approach to market entry.

Asked by Sucrit Patil

Utilization of IPO proceeds and long-term growth goals Direct

So, first of all, the IPO proceeds are towards the capacity build-up. We are building the infrastructure for the civil, the building, the equipment, the laboratory. Okay. And since the company's balance sheet is healthy, smaller investments, what we need for marketing expenditure or people addition, that all is taken care from our internal accuracy.

Confirms that IPO funds are specifically for capacity expansion, aligning with stated objectives, and reiterates ambitious long-term growth targets.

Asked by Sucrit Patil

End markets driving incremental demand for high-voltage equipment Direct

This demand is driven by energy intensive sectors such as data centers, artificial intelligence, infrastructure for renewable energy, solar, offshore wind projects and many others which have made the new capacity addition and could surpass 4G generation.

Provides insight into the specific sectors fueling demand for the company's products, indicating diversified growth drivers beyond traditional power grids.

Asked by Jai Chauhan

Complexity of bushing product and reasons for transformer manufacturers not backward integrating Direct

For any transformer company, bushing doesn't contribute more than 2-3% of their annual revenue. So generally, people would prefer to outsource it, because it is very critical, and if there is any issue in the bushing, their transformer guarantee warranty can be extended to a much longer period, which generally they would not prefer to do.

Explains the strategic rationale behind outsourcing bushings, highlighting their criticality and low revenue contribution for OEMs, which supports Yash's specialized business model.

Asked by Jai Chauhan

Current plant utilization and greenfield plant progress/timeline Direct

So, first of all, two good things happened. It was good that we invested in the present facility also last year. And the second good part is that now that is also 80-plus percentage utilized. So, we are again adding in that capacity in the existing factory also. And just last week, I finalized all the orders for the existing factory also.

Details the high utilization of existing capacity and confirms the greenfield project is on schedule, providing confidence in future capacity and revenue growth.

Asked by Abhisar Jain

EBITDA margin trajectory post-greenfield plant commissioning Direct

Beyond that, we see a steep growth in the EBITDA margins given the fact that we will be producing things locally, which we are importing saving us on our import duty, our airfares. And also definitely there is an advantage when we make locally our product which we are importing from Europe.

Outlines the expected drivers for significant margin expansion from FY27-28, primarily due to cost savings from localized production and better export price realization.

Asked by Akshay

Sukrut acquisition completion timeline and revenue contribution Direct

From our side, Sukrut acquisition is still not completed. So, the share purchase agreement is signed and the shareholder execution is still to happen. So, we have not taken control of the company, so it should take a while for us. So, nothing in this year should change. From next year, for sure, we assume from next financial year, we should be able to increase well over there.

Clarifies the current status of the Sukrut acquisition and sets expectations for its financial impact, indicating revenue contribution will begin from the next fiscal year.

Asked by Kumar Divyanshu

Debt repayment strategy and future funding decisions Partial

See, many things will depend on how the demand is increasing. Okay. We might also need to keep on adding something beyond our IPO procedures also for which we might need more and more money, okay, which might be sometimes beyond the internal accruals also. So, I would not make any assumption today that we would repay the loan or we will take additional funds. We will allow the time to decide.

Indicates management's flexible approach to debt, prioritizing growth and future capex needs, and suggests a wait-and-see approach for repayment or new borrowings.

Asked by Rohit Bahirwani

3 min read 7 chapters

Detailed narrative

H1 FY26 Financial Performance

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%.

Market Opportunity & Growth Drivers

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.

Strategic Initiatives & Capacity Expansion

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.

Sukrut Electric Company Acquisition

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.

Global Expansion & Market Presence

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.

Industry Outlook & Competitive Landscape

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.

Capital Structure & Debt Strategy

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.

This is an AI-generated summary of a publicly available earnings call transcript.

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