Advait Energy Transitions Limited

Advait Energy Transitions reported strong financial results for Q3 and 9M FY26. Consolidated revenue for the nine months ended December 31, 2025, reached INR486 crores, marking a substantial 138% YoY growth. Consolidated EBITDA stood at INR55 crores, up 74% YoY with an 11% margin, and PAT was INR35 crores, growing 80% YoY with a 7% margin. The company's order book maintained a milestone of INR1,000 crores as of Q3 FY26, reflecting a 132% YoY increase, with 84% contributed by Power Transmission Solutions and 16% by New and Renewable Energy. Management expects to complete approximately 75% of the current order book by the end of FY27.

The company is making significant strides in its green energy transition, with plans to establish a multi-integrated Giga-factory complex. The first 30 MW electrolyzer assembly and manufacturing unit in Ahmedabad is scheduled to be ready by March 15, 2026. This is part of a larger strategy to achieve 300 MW electrolyzer capacity, with the first 100 MW phase targeted for completion by the end of FY26 and the full 300 MW by FY27 end. Additionally, a 2.5 GWh BESS assembly plant is targeted to be ready by Q3 FY27, with factory commissioning by October.

Advait has outlined significant capex plans for both its PTS and green energy divisions. The PTS division will incur INR100 crores in capex, funded through internal cash flow and existing funds. For the Advait Green Energy (AGPL) segment, capex for electrolyzers and BESS facilities is projected at INR180-200 crores. This will be partially financed by a planned divestment of INR90-100 crores within Advait Green Energy itself, without diluting Advait Energy's stake. The company incurred approximately INR60 crores in capex during 9M FY26, with a total FY26 capex target of INR110 crores.

While standalone margins remained strong (Q3 FY26 EBITDA margin at 16.92%), consolidated margins were lower (Q3 FY26 EBITDA margin at 11.45%). Management attributed this to strategic investments in new green energy businesses, where initial lower margins are accepted to build qualification and capability. They expressed confidence in restoring consolidated EBITDA margins to 12-13% by FY27, expecting improvement within 2-3 years. The company aims to maintain its 40-50% CAGR growth trajectory and increase the NRE division's mix by 5-10% annually.

Operationally, Advait executed INR59 crores of ACS and OPGW supplies and installation work and supplied INR52.8 crores worth of transmission tools in FY26. Several critical EPC projects were completed on or ahead of schedule. The Adani solar project, including a 12.5 MW block, is due for completion by March end. Revenue from the INR216 crores PGVCL EPC order is expected to commence flowing from Q4 FY26, with full completion anticipated by next year.

Management foresees exponential growth in the green hydrogen market over the next 3-5 years, driven by substantial demand from the fertilizer, steel, and industrial sectors. They highlighted their strategy of investing in technology development and strengthening engineering capabilities to enhance pre-qualification strength. The company believes it can secure projects with better margins, distinguishing itself from larger players who focus on molecule production rather than electrolyzer supply, ensuring a fair market share.