Detailed Narrative
FY26 Performance Highlights and Margin Expansion
Yash Highvoltage achieved its highest ever revenue, EBITDA, and profit after tax in FY26. Revenue from operations grew by a strong 57% year-on-year to INR235.1 crores, while EBITDA increased by 75% to INR60.4 crores. This led to an EBITDA margin of 25.7%, a significant expansion of 260 basis points compared to 23.1% in FY25. Profit after tax also saw a 75% growth, reaching INR37.4 crores, translating to a PAT margin of 15.9% and basic EPS of INR13.08. Management attributes margin improvement to economies of scale, better price realization, and improved supplier negotiations.
Robust Order Book and Ambitious Growth Outlook
The company closed FY26 with an all-time high order book exceeding INR400 crores as of March 31, 2026, providing 1-2 years of healthy execution visibility. Management targets booking at least INR500 plus crores in orders for FY27 and expects to sustain a revenue growth rate of 40-42% for the next 4-5 years. The FY27 revenue target is set between INR360-400 crores, demonstrating strong confidence in market demand and execution capabilities, with current capacity utilization at 75-80% in FY26 and projected 65-70% in FY27.
Greenfield Expansion & RIP Core Localization Progress
The Greenfield expansion project is in its final commissioning phase, with civil work and PEB structures substantially complete and key equipment received. This new facility, with design capability expanded from 220 kV to 550 kV, is expected to add 5,000 to 7,000 units of annual capacity, focusing on high-value RIP/RIS products. Trial production is on track, with commercial production of indigenous RIP cores targeted for H2 FY27 (October 2026), aiming to reduce import dependency, improve cost competitiveness, and unlock export opportunities.
Strategic Acquisitions and International Market Penetration
The acquisition of Sukrut Electric was successfully closed in FY26, strengthening Yash Highvoltage's participation across the broader transformer component ecosystem. Internationally, the wholly-owned USA subsidiary is now operational, and distribution partnerships with Widemann and Electrolink are active in Europe, North Africa, and the UK. These initiatives position the company for export-led growth, with a target of achieving over 20% of revenue from exports in the next 2-3 years, up from the current 6-7% from retrofitting.
Conservative Capital Allocation and Funding Strategy
The company is eyeing INR100-110 crores for capex, primarily for increased production range up to 550 kV, testing infrastructure, and Brownfield expansion, with approximately INR80 crores already spent. Management maintains a conservative, near debt-free balance sheet with a debt-to-equity ratio of 0.17 times. Despite debt being mathematically cheaper, the company prefers equity funding to attract good investors and maintain a debt-averse stance, exploring options to cover working capital needs from raised funds.
Operational Challenges and Risk Mitigation
Management acknowledged potential operational challenges, including supply chain constraints due to suppliers not matching pace and difficulties in talent retention within the niche industry. They also noted anticipated initial teething challenges for the new RIP core production facility but assured that FY27 revenue targets are not dependent on its immediate success. A cyber incident occurred during the year, with no recovery to date, and the associated expense has already been booked in the P&L, highlighting an operational risk and its financial consequence.