Bhadora Industries Ltd — Q4 FY26 earnings call

Call held 8 Jun 2026

Management summary

Bhadora Industries reported strong financial results for FY26, with revenue of INR124.93 crores and PAT of INR9.96 crores. The company boasts a robust order book exceeding INR100 crores and is on track to commission its new manufacturing facility by October '26, which will significantly expand capacity and diversify its product offerings into higher-margin segments. While H2 FY26 saw a slight dip in EBITDA margins due to raw material volatility, management expects stabilization and improvement in FY27, supported by pass-through clauses and a focus on value-added products.

Highlights

  • Revenue from operations for FY26 reached INR124.93 crores, demonstrating strong performance.

  • PAT for FY26 stood at INR9.96 crores, reflecting operational efficiency.

  • The current manufacturing facility is fully booked through October '26, providing strong revenue visibility.

  • Order book exceeds INR100 crores, including the largest single order in company history valued at over INR100 crores.

  • New manufacturing facility is 80% complete and expected to commence commercial production by October '26, significantly expanding capacity and product portfolio.

Concerns

  • EBITDA margins for H2 FY26 were around 13.5%, a decline from approximately 15.5% in the previous year, primarily due to raw material price fluctuations.

  • The timeline for the new facility's commercial production was slightly delayed from Q1 FY27 to October '26 due to machine supply and civil site delays.

Key financials

3 periods

H2 FY26

  • Revenue
    ₹78.01 Cr
  • PAT
    ₹6.38 Cr
  • EBITDA Margin
    13.5%

FY25

  • EBITDA Margin
    15.5%

FY26

  • Revenue
    ₹124.93 Cr
  • PAT
    ₹9.96 Cr

What they filed

₹ Cr · quarterly
Line itemQ2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue46 64 47 78
EBITDA6 10 6 11
Net profit3 7 3 6
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

₹100 Cr

as of 2026-06-08 quantified

Execution

Current plant fully booked till October '26

Composition

Mix 5 products
  • Aluminium-based products (current plant) 90%
  • Copper-based products (current plant) 10%
  • LT cables (new plant, future mix) 60%
  • HT cables (new plant, future mix) 30%
  • Control and Instrumentation cables (new plant, future mix) 10%

Share of order book by product· categories overlap, and sum to 200%

Pipeline

qualified rfp

Tenders in pipeline

The company has a strong order book exceeding INR100 crores, with the current plant fully booked until October '26, and a significant pipeline of tenders worth INR500 crores.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹75 Cr Term loan and working capital facilities for Phase 1; debt as primary choice for Phase 2 and 3, with potential for small equity raise.
    • Phase 1 new manufacturing facility ₹75 Cr
    • Phase 2 new manufacturing facility ₹75 Cr
    • Phase 3 new manufacturing facility ₹150 Cr
    In line with the strong demand outlook and our long-term growth strategy, the planned capital expenditure for Phase 1 has been enhanced with a total project investment now expected to exceed INR75 crores. To support this expansion, a term loan of approximately INR40 crores has already been sanctioned, and the required working capital facilities have also been arranged... For Phase 2, we will look at it when it, I mean the tentative planning so far is to go with debt is the primary choice going further. But it really depends as to what kind of circumstances we are seeking. If we are able to achieve the targeted numbers earlier, then we might think of going for another raise, a small raise.
  • Debt Debt disclosed
    • New borrowing Term loan sanctioned for Phase 1 capex ₹40 Cr
    a term loan of approximately INR40 crores has already been sanctioned, and the required working capital facilities have also been arranged

Guidance & targets

Profitability

  • EBITDA Margin Profitability · FY27 · High confidence 14% to 14.5%
    It will be in the range of 14% to 14.5% is what we can expect.

    — Shashank Bhadora

  • HT Cable Margin Profitability · High confidence 1.5% to 2% additional margin
    You can expect or anticipate a 1.5% to 2% additional margin in terms of HT cables.

    — Shashank Bhadora

Capacity

  • New Facility Utilization Capacity · FY27 · High confidence 15% to 20%
    we expect at least 15% to 20% of the new facility to be utilized in this financial year. Approximately 20% of the whole capacity will be utilized in this financial year.

    — Shashank Bhadora

  • Commercial Production Start (New Facility) Capacity · October 2026 · High confidence October '26
    Based on the current execution schedule, we expect to commence commercial production by October '26.

    — Shashank Bhadora

Revenue

  • Total Revenue Revenue · FY27 · High confidence INR200 crores to INR225 crores
    We have projected somewhere around INR200 crores to INR225 crores of revenue for this financial year.

    — Shashank Bhadora

  • Revenue Potential (New Facility, full utilization) Revenue · at optimum utilization · Medium confidence INR300 to INR350 crores
    So ideally then this facility is going three to four times. So ideally this facility will have INR300 to INR350 crores kind of a revenue potential, would that be a fair assumption at optimum utilization? Correct, correct.

    — Deepak Poddar (confirmed by Shashank Bhadora)

  • H1 FY27 Revenue (from old plant) Revenue · H1 FY27 · High confidence INR70 crores range
    So somewhere in the INR70 crores range. So we expect from the old INR46 crores we can expect a 40% to 50% jump from the last H1.

    — Shashank Bhadora

Product Mix

  • New Plant Product Mix Product Mix · a year down the line · High confidence 60% LT, 30% HT, 10% control and instrumentation cables
    we will have close to 60% of revenue coming in from LT cables, 30% from HT cables, and 10% from control and instrumentation cables.

    — Shashank Bhadora

Capex

  • Phase 2 Capex Capex · High confidence INR75 crores to INR80 crores
    Now Phase 2 the capex will be close to INR75 crores to INR80 crores again.

    — Shashank Bhadora

  • Phase 3 Capex Capex · High confidence INR150 crores
    Yes, Phase 3 will have a close to INR150 crores of capex.

    — Shashank Bhadora

Timeline

  • Phase 2 Start Timeline · mid-2027 · High confidence mid of 2027
    And as soon as the Phase 1 is live and running for a year, we will start with Phase 2. So this will be somewhere in the mid of 2027 when we start working for the Phase 2.

    — Shashank Bhadora

  • Phase 3 Start Timeline · High confidence post Phase 2
    And same goes with Phase 3 that will be undertaken post Phase 2.

    — Shashank Bhadora

Strategy

  • Retail Market Entry Strategy · High confidence Not anytime soon
    Not anytime soon. We haven't planned out according to that, Yes. Not yet. We expect we know we will think about it once we cross, you know, INR700 crores to INR800 crores of revenue.

    — Shashank Bhadora

What to watch in Q1 FY27

New Manufacturing Facility Commercial Production

October '26
Current 80% complete
Target Commercial operations by October '26

Why it matters

Successful commissioning is key to realizing planned capacity expansion and revenue growth.

Based on the current execution schedule, we expect to commence commercial production by October '26.

Risks & concerns

  • Raw Material Price Volatility

    medium

    Fluctuations in raw material prices led to a decrease in EBITDA margins in H2 FY26, though 98% of orders have price variation clauses.

    Management acknowledged

  • New Facility Execution Delays

    low

    Phase 1 commercial production was slightly delayed from Q1 FY27 to October '26 due to machine supply and civil site issues.

    Management acknowledged

Q&A highlights

8 direct
Raw Material Mix and Volatility Management Direct
So both the things, the main raw materials in the current plant is aluminium, copper, XLPE, and PVC. These are the major raw materials. When we bifurcate in terms of the production side, then we are doing close to 10% of our business through copper and the rest 90% through aluminium... Yes, currently, as of today, 98% of our orders are on a price variation method.

Clarifies the current raw material composition and the company's strategy to mitigate raw material price volatility through pass-through clauses.

Asked by Deepak Poddar

EBITDA Margin Outlook for FY27 Direct
It will be in the range of 14% to 14.5% is what we can expect. This mainly happened because of the second half. As I said, there have been a lot of fluctuations in the raw material prices. That had been the major reason in terms of the decrease in EBITDA.

Provides specific guidance on expected EBITDA margins for the next fiscal year and explains the reasons for the H2 FY26 decline.

Asked by Deepak Poddar

Revenue Potential of New Capacity Direct
I will give you a wider understanding of the capacity. So the current unit has a capacity of around 200 tons of aluminium consumption per month and 25 metric tons of copper consumption per month. Going further, the new facility will have 600 tons of aluminium consumption per month and 200 tons of copper consumption per month. So as a whole, you can say we are increasing the capacity by three to four folds.

Quantifies the significant increase in manufacturing capacity and its potential revenue contribution at full utilization.

Asked by Deepak Poddar

Competitive Landscape and Differentiation Direct
So currently we are holding over 40 approvals, which gives us an edge when we compete with other peers. That is one. Then being the kind of relationship which we are carrying with the large EPCs, right? So those are also built over, I mean those trusts is also built over time. So it requires five to six years of time to build a trust or a relation with large EPC contractors. This is where our, when we talk about the relationship building, this is one aspect where we differentiate. Then another one is our location. We are centrally located. That gives us an edge in terms of transportation also carries a significant amount of cost.

Highlights the company's key competitive advantages in a highly competitive sector.

Asked by Akash Jain

Product Mix and Margin Profile of New Capacity Direct
So the current facility is only for LT. And as I already mentioned that out of that 90% is aluminium and only 10% is copper. Going further with the new plant, we will have LT cables as well. Apart from that we will be going into MVCC, Medium Voltage Covered Conductors, then HT cable up to 33kV... You can expect or anticipate a 1.5% to 2% additional margin in terms of HT cables.

Details the strategic shift in product mix towards higher-margin products with the new facility and quantifies the margin benefit.

Asked by Deepak Poddar

Funding Strategy for Future Capex Phases Direct
So the first phase will be done, as I said, will be -- it has already been done. The term loan has already been taken for the remaining part of Phase 1. So this should be live. For Phase 2, we will look at it when it, I mean the tentative planning so far is to go with debt is the primary choice going further. But it really depends as to what kind of circumstances we are seeking. If we are able to achieve the targeted numbers earlier, then we might think of going for another raise, a small raise.

Outlines the company's capital allocation strategy for upcoming expansion phases, indicating a preference for debt but openness to equity.

Asked by Akash Jain

Industry Demand Outlook and Growth Drivers Direct
So, one is the push on the renewable side... Then there is a constant upgradation of infrastructure by the government... So, just to name a few of the schemes, like RDSS scheme is there... Then there is smart cities, which are increasingly happening... There is a lot of metros which are coming up... The industrialization is increasing. The urbanisation is increasing... So, taking all these factors, I see a very increasing demand year-on-year, at least in the next 10 years, what I can see, right. So, there is no shortage of demand of the product.

Provides a comprehensive overview of the macro demand drivers for the cable industry, supporting the company's long-term growth strategy.

Asked by Kanika Maheshwari

Sustainability of Higher EBITDA Margins vs. Peers Direct
Major differences major difference lies in one of the things that most of the other cable manufacturers, the peers right, so they are doing a mix of cable and conductors both... So conductors is a usually very low margin game... So we have completely eliminated conductors. We are not doing a single meter of conductors manufacturing. We are only manufacturing cables. This is one of the reasons. Then we have also focused, shifted our focus to high margin products.

Explains the structural reasons behind Bhadora's ability to maintain higher EBITDA margins compared to the industry average.

Asked by Jaideep Ray

3 min read 7 chapters

Detailed narrative

Strong FY26 Performance and H2 Growth Momentum

Bhadora Industries reported robust financial performance for the full year FY26, with revenue from operations reaching INR124.93 crores and a PAT of INR9.96 crores. The second half of FY26 (H2 FY26) contributed significantly, with revenue of INR78.01 crores and PAT of INR6.38 crores, reflecting strong execution and healthy customer demand. This performance underscores the company's ability to deliver consistent results.

Robust Order Book and Future Revenue Visibility

The company's current manufacturing facility is fully booked through October '26, supported by an order book exceeding INR100 crores. This includes a landmark single order valued at over INR100 crores from a reputed multinational customer, enhancing long-term revenue visibility. Additionally, Bhadora has tenders in the pipeline worth close to INR500 crores, with an expected conversion of INR50-60 crores in the next few months, further strengthening its future order book.

Strategic Capacity Expansion and Product Diversification

The new manufacturing facility is approximately 80% complete and is slated to commence commercial production by October '26. This expansion will increase the company's capacity by three to four times, specifically from 200 tons/month to 600 tons/month for aluminium and 25 metric tons/month to 200 metric tons/month for copper. The new facility will enable diversification into MVCC, HT cables up to 33kV, instrumentation, and control cables, with a projected future product mix of 60% LT, 30% HT, and 10% control/instrumentation cables, offering 1.5-2% higher margins for HT cables.

Capital Expenditure and Funding Strategy

The total project investment for Phase 1 of the new facility is expected to exceed INR75 crores, with approximately INR40 crores already sanctioned as a term loan, alongside arranged working capital facilities. The company plans for two more phases: Phase 2 with a capex of INR75-80 crores, expected to start in mid-2027, and Phase 3 with a capex of INR150 crores. Debt is the primary funding choice for future phases, though a small equity raise might be considered if targets are achieved earlier.

EBITDA Margin Management and Outlook

EBITDA margins for H2 FY26 were around 13.5%, a decline from approximately 15.5% in the previous year, primarily due to fluctuations in raw material prices. However, 98% of the company's orders are on a price variation method, allowing for pass-through of cost increments. Management expects EBITDA margins to stabilize and range between 14% to 14.5% for FY27, driven by operational efficiencies and the introduction of higher-margin products from the new facility.

Positive Industry Tailwinds and Growth Drivers

The power and infrastructure sector continues to exhibit strong growth momentum, particularly in transmission, distribution, and renewable segments. Key drivers include the push for renewable energy, government infrastructure upgradation schemes like RDSS (with an outlay of INR1.5 lakh crores), smart cities, metro projects, industrialization, and urbanization. Bhadora anticipates sustained demand growth for cables over the next decade, positioning it well to capitalize on these opportunities.

Competitive Advantages and Organizational Strengthening

Bhadora differentiates itself through over 40 regulatory approvals, strong, long-standing relationships with large EPC contractors, and a strategically central location that offers cost advantages in transportation. The company is also strengthening its organizational capabilities across manufacturing, quality, technical services, business development, and institutional sales to support the smooth commissioning and scale-up of its expanded operations.

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