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 prior period. EBITDA grew by 109.9% to INR 23 crores, achieving a margin of 22.8%, a 341 BPS improvement. Profit after tax also saw significant growth, rising 119.4% to INR 14 crores, with a PAT margin of 13.7%, up 256 BPS. The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.17 and a current ratio of 2.61.

The company is aggressively expanding its manufacturing capabilities, with a new greenfield facility for 550 KB RIP bushings under construction, funded by IPO proceeds. As of September 30, 2025, approximately 45% of the IPO funds have been utilized, with INR 51 crores remaining for factory layout. The building box is expected to be ready by mid-December 2025, equipment installation by January 2026, and trial production by February-March 2026. Full utilization of this new capacity is targeted within 2.5-3 years, contributing to a combined revenue potential of INR 600-700 crores with existing facilities.

With the commissioning of the new greenfield project, Yash Highvoltage's addressable market is set to expand from its current INR 10,000-12,000 crores (covering 33 kV to 245 kV) to INR 15,000-16,000 crores, including the 550 KV range. The company has also established a presence in the United States with ESFP USA, a dedicated sales and marketing office, and forged strategic distribution partnerships in European and North African markets, and the UK, Ireland, and Wales. These initiatives leverage its 15-year export network across 60+ countries to drive global growth.

Yash Highvoltage acquired a 50% equity stake in Pune-based Sukrut Electric Company, a transformer component manufacturer, in partnership with Quality Power equipment. This collaboration aims to enhance Sukrut's scale, capability, and market reach across both domestic and international transformer markets. Management targets an 8-10 times growth in Sukrut's top line over the next 5-6 years. The acquisition is pending shareholder execution, with full control and value addition expected from the next financial year.

The company maintains a healthy order book exceeding INR 300 crores, providing revenue visibility for the next 1.5 to 2 years, driven by strong order inflows from both domestic and international power and infrastructure sectors. Management expressed confidence in surpassing H1 FY26 turnover in H2 FY26. Despite potential price wars in the broader transformer industry in the coming 3-4 years, Yash believes bushing players will remain insulated for 7-8 years due to the critical nature and low revenue contribution of bushings, allowing them to select profitable orders.

Yash Highvoltage anticipates a steep growth in EBITDA margins from FY27-28 onwards. This improvement is expected to be driven by localized production at the new greenfield plant, which will result in savings on import duties and airfares, and better price realization for RIP products in Western markets. The company is targeting a minimum CAGR of 35% over the next five years and aims to achieve 8-10 times its current annual revenue in the next 8-10 years, aspiring to increase its global market share from 1.5% to 5-7%.