Concall AI

Yash Highvoltage — Q4 FY26 earnings call

Call held 14 May 2026

Management summary

Yash Highvoltage delivered a landmark FY26, reporting record revenue, EBITDA, and PAT, driven by strong execution and strategic initiatives. The company's order book surpassed INR400 crores, providing robust visibility for the next 1-2 years. Key milestones, including the Greenfield expansion and Sukrut acquisition, are progressing as planned, positioning the company for continued export-led growth and margin expansion, despite some geopolitical and operational challenges.

Highlights

FY26 Revenue from operations grew 57% YoY to INR235.1 crores, achieving highest ever revenue.
FY26 EBITDA grew 75% YoY to INR60.4 crores, with margins expanding to 25.7% (up 260 bps from FY25).
FY26 PAT grew 75% YoY to INR37.4 crores, also a record high.
Order book as of March 31, 2026, exceeded INR400 crores, ensuring 1-2 years of execution visibility.
Greenfield expansion project design capability expanded from 220 kV to 550 kV, significantly enhancing addressable market.

Concerns

Indirect cost escalation due to Middle East war impacting oil/gas prices, though currently transferable to customers.
Potential for initial teething challenges and delays in RIP core production from the new facility, though FY27 revenue is not dependent on it.
A cyber incident occurred with no recovery to date, and the associated expense has already been booked in the P&L.

Key financials

2 periods

H2 FY26

Revenue
₹135.5 Cr
YoY +46%
EBITDA
₹37.2 Cr
PAT
₹23.7 Cr

FY26

Revenue
₹235.1 Cr
YoY +57%
EBITDA
₹60.4 Cr
YoY +75%
EBITDA Margin
25.7%
YoY +2.6%
PAT
₹37.4 Cr
YoY +75%
PAT Margin
15.9%
Basic EPS
₹13.08
Bushings Produced
7,000 units
Retrofitting Revenue Share
6%

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

₹400 Cr

as of 2026-03-31 range

Execution

providing healthy execution visibility over the next one to two years.

Composition

Mix 2 products

OIP and High Current 15%
RIP 85%

Share of order book by product

Our order book as on 31st March '26 stood at INR400 plus crores, reflecting our very strong customer confidence and robust demand visibility.

Source: Prepared remarks

Capital allocation

high confidence

Capex ₹80 Cr this quarter · ₹100 Cr (FY27) planned Mainly for capex for increased production range up to 550 kV and testing infrastructure, Brownfield expansion, and potentially working capital from raised funds.
- Capex for increased production range up to 550 kV and testing infrastructure
- Brownfield expansion at existing unit
- New autoclaves
So, we are now considering a we have taken an approval up till INR150.0 crores, but we might not go to fully that extent. Around INR100 to INR110 is what we are eyeing. And that will be mainly for the capex for the increased production range up till 550 kV and the testing infrastructure. Also the Brownfield expansion at the existing unit looking at the business scenario, we are compelled to invest there also. And also we have a working capital around the INR28 crores or INR30 crores, which we might remain open with an option to close it from the raised funds. It's an option we are exploring. ... So, close to INR80 crores is already done and balance is now getting done in next two or three months.
Debt Debt disclosed

Our debt-to-equity ratio stands at a comfortable 0.17 times, a testament to our disciplined capital management and the inherent financial strength of the business.
M&A Sukrut Electric Acquisition · Closed

Strengthens participation across the broader transformer component ecosystem and complements existing product capabilities.

On the Sukrut Electric acquisition, the Sukrut acquisition closed during the year. Our focus is now on operational stabilization, professionalization, and value creation. The acquisition strengthens our participation across the broader transformer component ecosystem and complements our existing product capabilities.

Guidance & targets

Revenue Growth

Revenue Growth Revenue Growth · next 4-5 years minimum · High confidence 40-42%

And I feel that this growth momentum should continue next five, six years, and we should be able to grow at around 40%, 42% for next four or five years minimum.

— Keyur Shah

EBITDA Margin

EBITDA Margin EBITDA Margin · FY27 · High confidence 24-25%

We this year also we should be able to maintain around 24%, 25% EBITDA.

— Keyur Shah
EBITDA Margin EBITDA Margin · from FY28 onwards · Medium confidence gradual increase

But from next year onwards, we will see gradual increase in the profitability and reduce our import dependency, our margin expansion should begin.

— Keyur Shah

Order Inflow

Order Inflow Order Inflow · FY27 · High confidence INR500 plus crores

Yes. So, we, we have a target to book at least INR500 plus crores order this year also.

— Keyur Shah

Total Capacity

Bushing Units Total Capacity · with Greenfield and Brownfield investments · High confidence 15,000 bushings

the investments what we are doing in the Greenfield and the Brownfield, our total capacity will be moving to close to 15,000 bushings.

— Keyur Shah
Utilization Total Capacity · FY27 · High confidence 65%

Out of this, we target that around 65% we will be able to use in the year 2026-2027.

— Keyur Shah

Export Revenue Share

Export Revenue Share Export Revenue Share · in next 2-3 years · High confidence 20% plus

Our target would be that eventually in next two to three years, we at least do 20% plus from exports.

— Keyur Shah

Sukrut Revenue

Sukrut Revenue Sukrut Revenue · in next 4-5 years · High confidence INR150-160 crores

From INR25-26 crores today

So, Sukrut, we assume that in next four to five years, we should be able to cross at least INR150 to INR160 crores of revenue. And presently it is around INR25 crores, INR26 crores revenue financial year '26. And we believe that at least 5x to 6x growth we can do in next four, five years.

— Keyur Shah

FY27 Revenue Target

Revenue FY27 Revenue Target · FY27 · High confidence INR360-400 crores

So, I won't be able to give an exact number, but as I told earlier in the part of the call that between INR360 crores to INR400 crores is our target to invoice this year.

— Keyur Shah

EHV Capacity Expansion

Voltage Class EHV Capacity Expansion · beyond 18-24 months · Medium confidence 765 kV or HVDC

And beyond that for 765 kV or the HVDC, immediately we would not plan next 18 to 24 months before we stabilize this factory and before we stabilize the product and the market and reach a certain potential. After that definitely yes, we are also open, we are in this industry and slowly and gradually as what the market demands, we would definitely be open to investing further and to expanding and enlarging the capacity for further high, higher EHV classes.

— Keyur Shah

What to watch in Q1 FY27

Greenfield RIP Core Commercial Production

H2 FY27 (October 2026)

Current Trial production on track

Target Commercial production starts

Why it matters

Successful commercial production of indigenous RIP cores is crucial for reducing import dependency, improving cost competitiveness, and unlocking export opportunities.

Trial production remains on track, with commercial production targeted in H2 of this ongoing year.

Risks & concerns

Geopolitical impact on input costs
medium

Indirect cost escalation due to Middle East war impacting oil/gas prices, though able to transfer to customers.

Management acknowledged
Supply chain constraints
medium

Difficulty in scaling up due to suppliers not matching pace or prioritizing other orders, and long vendor development cycles.

Management acknowledged
Talent attrition
medium

Challenge in retaining skilled personnel in a niche industry with high attrition rates.

Management acknowledged
Cyber incident
medium

Cyber incident with no recovery yet, police investigation ongoing, and expense already booked in P&L.

Management acknowledged
Greenfield RIP core production delays
low

Anticipated initial teething challenges in new facility's RIP core production, but FY27 revenue not dependent on immediate success.

Management acknowledged

Q&A highlights

5 direct, 2 evasive

Competitor analysis Evasive

We don't see any reason to discuss this. Everybody's in the field, everybody is good, everybody has their fate in the market. So, why would we say that somebody is not good and we are better or somebody is better and we are not good, but everybody has got its own core competency to sell.

Management avoided directly comparing themselves to competitors, suggesting a reluctance to highlight competitive landscape or specific advantages/disadvantages.

Asked by Sk Nathani

Limiting factors for scaling up Direct

Supply chain and people.

Identifies key operational bottlenecks (supplier reliability, talent retention) that could constrain future growth, despite strong demand and capacity expansion.

Asked by Lakshminarayanan

Funding strategy (equity vs. debt) Direct

We understand that mathematically the debt is always a better route. But we also want good investors on our cap table and we also personally I am a bit debt-averse person. I would prefer to remain debt-free.

Reveals management's conservative financial philosophy, prioritizing equity funding and a debt-free balance sheet over potentially cheaper debt, which impacts capital structure and shareholder dilution.

Asked by Lakshminarayanan

Impact of Middle East war Partial

Of course, there is an indirect cost escalation to us because of the oil and the gas situation which has come up and the vendors have been asking us for revised prices. But that we are also able to successfully communicate to our customers.

Acknowledges indirect cost pressures from geopolitical events but states ability to pass on costs, indicating resilience but also potential for margin pressure if cost pass-through becomes difficult.

Asked by Akshay

Chinese bushing competition Direct

Sir, Chinese bushings are never restricted in India since last 6 years, 7 years. There is always an option available with an Indian buyer to buy bushings from China and they have not been doing. Probably our Indian pricing and Indian availability and Indian commercial terms and after sales service is better, that's the reason they are not buying from China.

Clarifies that Chinese competition is not a new threat and that Indian players, including Yash Highvoltage, maintain a competitive edge through service and local presence.

Asked by Hussain

Sukrut EBITDA guidance Evasive

It will be too early for me to comment. Let me just go through one or two more quarters over there. ... But maybe in the next call whenever we have in the later part of this year, I'll be able to give more insight on that.

Management deferred specific financial guidance for a recently acquired entity, indicating either early stages of integration or a lack of clear near-term financial targets.

Asked by Tejash Thakkar

Cyber incident recovery Direct

No, there is no recovery. We have filed a police complaint and there is an investigation which is happening. And it will only be revealed after the investigation is over whether we are able to recover or not. ... Yes, we, we have already expensed it out.

Confirms a cyber incident with no recovery to date and that associated costs have already impacted the P&L, highlighting an operational risk and its financial consequence.

Asked by Akshay

Greenfield RIP core production delay risk Direct

We always anticipate that there will be initial teething challenges and that has been built in. Okay. So our, this year's revenue is not dependent on the success of the localization of core from the new facility. Even if it is delayed for two, three months, our this year's planned revenue is not going to get affected.

Management acknowledges potential for delays in new facility's core production but assures that FY27 revenue targets are not contingent on its immediate success, indicating a conservative revenue forecast.

Asked by Rushin Shah

3 min read 6 chapters

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.

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

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