Yash Highvoltage — Q4 FY25 earnings call

Call held 28 May 2025

Management summary

Yash Highvoltage reported strong financial performance in FY25, with sales growing 38% to Rs. 152 crores and PAT increasing 73.7% to Rs. 21.40 crores. The company is net debt positive and is investing Rs. 90 crores in a new greenfield plant for RIP bushings, expected to be operational by mid-next year. This expansion, along with backward integration for RIP cores, is anticipated to drive significant margin improvement and support a 3-4 fold revenue growth by 2030.

Highlights

  • Sales increased by 38% to Rs. 152 crores from Rs. 108 crores in FY24.

  • PAT grew by 73.7% to Rs. 21.40 crores from Rs. 12.32 crores in FY24.

  • EPS increased by 60.14% to Rs. 8.92 per share from Rs. 5.57 per share.

  • ROCE was robust at 20.23%.

  • Net debt positive with cash and bank balance of Rs. 50 crores as of March 31, 2025.

  • New greenfield plant with Rs. 90 crores outlay expected to be ready by H2 next year.

  • Exports grew almost 2x in FY25.

Concerns

  • Supply chain and talent management identified as ongoing challenges.

Key financials

  1. Revenue ₹152 Cr +38%YoY
  2. PAT ₹21.4 Cr +73.7%YoY
  3. PAT % of Sales 14.3%
  4. EPS ₹8.92 +60.1%YoY
  5. ROCE 20.2%
  6. Material Sales Ratio 53.8%
  7. Inventory Holding Period 62 days
  8. Receivables 49 days
  9. Cash & Bank Balance ₹50 Cr

What they filed

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

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue48 60 57 93 100 +108%136 +127%
EBITDA11 10 11 21 21 +91%36 +260%
Net profit6 6 6 15 14 +133%24 +300%
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

low confidence

Execution

Order book can take care of next year's invoicing if targeting 25-30% growth, and for 2025-26 and 2026-27.

Composition

  • RIP Bushings (product) 80%
  • Export (Oil Impregnated Products) (geography) 35%
The company has a reasonable order book that provides visibility for next year's invoicing and extends into FY26 and FY27, supporting targeted growth rates.

Source: Q&A

Capital allocation

high confidence
  • Capex ₹90 Cr
    • New greenfield plant for RIP bushings in Vadodara (1.2 lac sq. ft. built-up area) ₹90 Cr
    • Major investments for 2025-2026 to be completed before March 2026 ₹85 Cr
    The new greenfield plant has a land area of 1.6 lacs sq. ft with built up area of 1.2 lac sq. ft in Vadodara and would be ready by H2 of next year with total outlay of Rs. 90 crores.
  • Debt Net cash ₹50 Cr
    We continue to remain net debt positive with cash and bank balance of Rs. 50 crores as on 31st March 2025.
  • M&A Yash High Voltage US Inc Acquisition · Closed

    Expand global footprint and implement 'Local in Global' strategy, starting with sales office, service personnel, and potential localization of assembly/production.

    We have already incorporated a company in US i.e. Yash High Voltage US Inc which is a 100% subsidiary of YHVL. This is in line with our strategy of “Local in Global".
  • M&A YASH HV POWER COMPONENTS PVT LTD Acquisition · Closed

    Add certain more products to the product line and develop/partner with manufacturers for tie-ups.

    add certain more products to the product line for which we have also created 100% subsidiary in the name of YASH HV POWER COMPONENTS PVT LTD
  • Liquidity Cash ₹50 Cr Company is net debt positive.
    We continue to remain net debt positive with cash and bank balance of Rs. 50 crores as on 31st March 2025.

Guidance & targets

Revenue

  • Revenue Growth Revenue · next half decade · Medium confidence 30% +/-
    While we had very impressive growth over last 5 years, we shall continue to grow at 30% +/- over next half decade.

    — Keyur Shah, Managing Director

  • Revenue Growth Revenue · by 2030 · High confidence 3-4 fold minimum
    So. We can, you know, as I reasonably reach a top line of may be at least 3-4 four fold between now and at the end of the 5th year from today.

    — Keyur Shah, Managing Director

  • Revenue Growth (Existing Facilities) Revenue · Ongoing · High confidence 25-35%
    So as I mentioned, we have been doing historically between 25 to 35%. We should maintain that.

    — Keyur Shah, Managing Director

Profitability

  • EBITDA Margin Profitability · as new plant becomes operational · Medium confidence maintain current levels and improve
    We shall strive to maintain EBDITA at current levels and also improve it as we get into our new plant.

    — Keyur Shah, Managing Director

Capacity

  • New Greenfield Plant Operational Capacity · H2 of next year · High confidence Ready
    The new greenfield plant has a land area of 1.6 lacs sq. ft with built up area of 1.2 lac sq. ft in Vadodara and would be ready by H2 of next year with total outlay of Rs. 90 crores.

    — Keyur Shah, Managing Director

  • RIP Plant Fully Operational Capacity · By Next year this time (May 2026) · High confidence Fully operational
    By Next year this time, it will be fully operational.

    — Keyur Shah, Managing Director

What to watch in Q1 FY26

New RIP Plant Operational Status

mid-next year (May 2026)
Current Under construction, expected ready H2 next year
Target Commercial production commencement

Why it matters

Successful commissioning is key for capacity expansion, backward integration benefits, and future revenue growth.

The new greenfield plant has a land area of 1.6 lacs sq. ft with built up area of 1.2 lac sq. ft in Vadodara and would be ready by H2 of next year with total outlay of Rs. 90 crores.

Risks & concerns

  • Product quality in critical applications

    high

    Bushings are critical components, requiring constant vigilance on quality to avoid customer issues.

    Management acknowledged

  • Supply chain and talent management

    medium

    Getting the right people and managing the supply chain are ongoing challenges.

    Management acknowledged

  • Increased competition from other investors

    low

    With other players investing in the bushing market, competition might increase from one or two more suppliers.

    Management acknowledged

Q&A highlights

7 direct
Margins outlook post backward integration Direct
The main advantage of localizing the manufacturing of this product is that we will be having a significant cost advantage overseas. Also of course the savings on transportation (freight) plus the import duty will help us reduce our input cost. ... margins should see reasonable betterment from the present figures..

Highlights the key driver for future margin expansion through cost optimization from in-house RIP core manufacturing.

Asked by Lakshminarayanan KG

New plant capacity and utilization Direct
the capacity utilization of the factory today is between 50 to 60% after addition of the new manufacturing capacity for OIP products last year... today the capacity is close to 9000 or 10,000 Bushings with the existing setup. Out of which we are at 50% utilization. ... the incremental capacity that you're putting up about 5000 bushings. That is all rip and that is that'll be largely manufacturing from the new factory.

Provides specific current and future capacity figures, product mix, and utilization rates, indicating significant room for growth.

Asked by Soumil Jain

Value differential between RIP and OIP bushings Direct
in India the price realization or if you see the rate difference between a similar rating of RIP versus OIP, the difference is close to 4 and 1/2 times of what it is in the global market and one and half or two times in the local market ... a 100 OIP in India of the same rating RIP will be around 400 to 500. In the global markets, $100 OIP product might be close to plus +-200 for a RIP product.

Clarifies the significant premium for RIP bushings, especially in global markets, which supports the company's focus on this product and export strategy.

Asked by Soumil Jain

Backward integration for active parts of RIP bushings Direct
we agree that this product is made by a handful of companies and when we go for the localization of RIP core we have taken adequate care to hire the best engineering group who have been successful in this. ... these active parts would be 35-40% of our total raw material cost. ... we have to make it fully only because if you want to, there is no way by which we can do a small batch production and then do a trial and then go for a larger investment.

Details the strategic importance and execution plan for indigenizing a highly technical and costly component, which is crucial for margin improvement and competitive advantage.

Asked by Ayush Agarwal

Order book visibility and future growth Direct
we have almost an order book, which can take care of our next year invoicing if we have to target 25-30% growth. So, we have reasonable order book which can take care of the ongoing year now i.e. 2025-26.

Confirms strong revenue visibility for the near to medium term, supporting the company's growth targets.

Asked by Taher Hydrabadwala

CapEx plan and timeline Direct
presently we have a greenfield expansion project going on for RIP bushings and the factory should be ready in about 12 months and after that we don't see any further CapEx for two or three years. This capacity what we will build should take care of our plans till 2030. ... in 2025-2026, in this ongoing year, we plan to complete the major investments of upto 85-90 crs plus ... all the investments should get completed before March 26.

Provides a clear roadmap for CapEx, its completion timeline, and the long-term capacity benefits it will bring.

Asked by Abhijit Mitra

End customers and demand drivers Direct
We have the power stations, many of the renewable sites, steel industries, cement industry is expanding, railways are expanding, so in a nutshell, end users are almost all the data centers, renewable sites are also there with the generating and Transmission sites are also there. And also, the industry at large.

Illustrates the diversified demand base for the company's products, highlighting exposure to key growth sectors like renewables and data centers.

Asked by Aman Soni

2 min read 5 chapters

Detailed narrative

Strong Financial Performance in FY25

Yash Highvoltage delivered robust results in FY25, with sales increasing by 38% to Rs. 152 crores from Rs. 108 crores in FY24. PAT saw a significant jump of 73.7% to Rs. 21.40 crores, representing 14.26% of sales, up from 11.36% in the previous year. EPS also rose substantially from Rs. 5.57 to Rs. 8.92 per share, and ROCE stood at a healthy 20.23%. The company maintained a net debt positive position with a cash and bank balance of Rs. 50 crores as of March 31, 2025.

Strategic Capacity Expansion and Backward Integration

The company is investing Rs. 90 crores in a new greenfield plant in Vadodara, spanning 1.2 lakh sq. ft., which is expected to be ready by H2 of next year (mid-2026). This plant will primarily focus on RIP bushings, increasing the total annual capacity from 9,000-10,000 bushings to 15,000-16,000, with a target split of 50-60% between OIP and RIP. A key strategic move is the localization of RIP core manufacturing, currently imported, which is expected to provide significant cost advantages and lead to a 'reasonable betterment' in margins.

Aggressive Growth Targets and Export Focus

Yash Highvoltage aims for a 30% +/- growth rate over the next half-decade and expects revenues to grow three to four-fold by 2030. Exports saw a significant '2x' growth in FY25, and the company is expanding its global footprint by incorporating a 100% US subsidiary, Yash High Voltage US Inc., to establish sales offices and potentially localize assembly/production. The global market for bushings is experiencing high demand and supply shortages, presenting a strong opportunity for the company.

Product Strategy and Market Diversification

The company focuses on high-value, high-margin niche products like RIP and HC bushings, where there are few players. They are developing products for global standards, including IEC, IEEE (American/South American), European, and Russian markets. Demand is robust across various end-user industries, including power stations, renewable sites, steel, cement, railways, and data centers, with specialized bushings being supplied for data centers.

Order Book Visibility and Operational Challenges

The company has a 'reasonable order book' that provides visibility for next year's invoicing, supporting a targeted 25-30% growth for 2025-26 and extending into 2026-27. Management is confident in maintaining historical growth rates of 25-35% from existing facilities. However, challenges related to supply chain and talent management were acknowledged, requiring continuous focus.

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