Exicom Tele-Systems Limited — Q2 FY26 earnings call

Call held 10 Nov 2025

Management summary

Exicom Tele-Systems reported a strong Q2 FY26 on a standalone basis, with significant revenue growth across both Critical Power and EVSE segments, leading to improved EBITDA and PAT. The company secured a robust order backlog of over INR 1,400 crores and saw substantial growth in its EV charging business. However, consolidated profitability continues to be impacted by losses from its Tritium subsidiary, which is expected to persist for the next four quarters, though external financing is being arranged to mitigate Exicom's investment exposure.

Highlights

  • Standalone revenue for Q2 FY26 reached INR 228 crores, marking a 52% sequential growth and 54% year-on-year increase.

  • Standalone EBITDA for Q2 FY26 increased to INR 15.1 crores, up from INR 12.6 crores in the previous quarter and INR 6 crores in Q2 FY25.

  • Standalone PAT for Q2 FY26 saw a significant jump to INR 5.9 crores, compared to INR 1.1 crores last quarter.

  • The company secured a robust order backlog of more than INR 1,400 crores.

  • The EV charging business demonstrated strong momentum, growing 26-27% QoQ and 55% YoY, achieving highest-ever sales of AC chargers (>20,000 units).

Concerns

  • Consolidated EBITDA remains under strain due to Tritium's near-term losses, which are expected to continue for the next 4 quarters.

  • Margins were constrained due to a slight shift in product mix, specifically lower margins from lithium battery sales.

Key financials

  1. Standalone Revenue ₹228 Cr +54%YoY
  2. Standalone EBITDA ₹15.1 Cr
  3. Standalone PAT ₹5.9 Cr
  4. Consolidated Revenue ₹281.7 Cr
  5. Consolidated EBITDA Loss ₹-32.7 Cr

What they filed

Q1 FY27: revenue up 61.5%, net profit up 10.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue153 197 266 205 282 +84%277 +41%388 +46%331 +61%
EBITDA-15 -31 -16 -39 -33 −120%-32 −3%0 +100%-22 +44%
Net profit-17 -49 -62 -83 -69 −306%-68 −39%-54 +13%-74 +11%
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.

Segment breakdown

  • Critical Power
    53% YoY Growth11% Export Revenue Share
  • EVSE
    55% YoY Growth

Order book

high confidence

Total value

₹1,400 Cr

as of 2025-09-30 quantified

Pipeline

qualified rfp

Tender-based opportunities for Critical Power (BharatNet, BSNL, uncovered village project)

The company has a strong order backlog and significant tender-based opportunities, particularly in Critical Power, and expects to win a good share of this business.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹20 Cr
    • Hyderabad plant remaining spend ₹17.29 Cr
    • R&D expenditure ₹20 Cr
    We have in Hyderabad as of 30th of September, INR17.29 crores still to be spent. And as Anant mentioned, we are going in for trial production in the next couple of days and a full-fledged production starting January quarter. So all this will be utilized as per plan. R&D, we had planned for expenditure of INR20 crores in this financial year, which is still on, and we are trying to do the right amount of investment in R&D to continue to be developing new products.
  • Debt Debt disclosed
    • Repayment Repaid unsecured debt from rights issue proceeds. ₹55 Cr
    • New borrowing Raised almost INR 260 crores through a rights issue. ₹260 Cr
    The good part is through that, we had repaid the debt of INR55 crores, which is an unsecured debt. We have also converted a debt from promoters of INR106.9 crores into equity, and we had earmarked INR85 crores for investment in Tritium.
  • Liquidity Liquidity disclosed INR 28.3 crores still to be deployed for Tritium as of September 30, 2025.
    As of 30th of September, we still have INR28.3 crores as funds still to be deployed for Tritium.

Guidance & targets

Profitability

  • Tritium EBITDA and cash flow breakeven Profitability · last quarter of next year · High confidence Breakeven
    to enable Tritium to reach EBITDA and cash flow breakeven, which is in -- which will be achieved in the last quarter of next year.

    — Anant Nahata

  • Consolidated EBITDA pressure Profitability · next 4 quarters · High confidence Under pressure
    But yes, over the next three quarters, consolidated EBITDA will continue to be a sorry, for the next 4 quarters, consolidated EBITDA will continue to be under pressure.

    — Anant Nahata

  • Hyderabad plant P&L benefits Profitability · next financial year · Medium confidence Significant benefits
    But in terms of seeing any significant benefits on P&L, I think we'll have to wait till the next financial year because we'll be only in start-up mode even towards the end of this financial year.

    — Anant Nahata

Operations

  • Hyderabad plant commercial production Operations · January · High confidence Commercial production
    The commercial production will start from January.

    — Anant Nahata

  • Tritium DC fast charging rollout in fleet sector Operations · H2 CY26 (October next year) · High confidence Deployment starts
    for deployment in second half of calendar year '26. So this deployment will start sometime in October of next year.

    — Anant Nahata

Order Inflow

  • Bus depot chargers awards Order Inflow · next 1 month · High confidence Awards
    And hopefully, they should be awarded in the next 1 month, which will bring in a lot of at least it will bring in a large addressable market for bus depot chargers over the next calendar year.

    — Anant Nahata

  • Tritium pipeline conversion to orders Order Inflow · next 3 months · High confidence Converted to orders
    and we expect this pipeline to be converted into orders over the next 3 months.

    — Anant Nahata

Order Book Execution

  • Critical Power BharatNet project continuation Order Book Execution · at least 10-11 quarters · High confidence Continue
    So I think this will continue for at least 10 to 11 quarters. The project would continue. It's just in the start-up phase at this point.

    — Anant Nahata

  • Critical Power RVNL AMC Order Book Execution · thereafter · High confidence 5 years of AMC
    And just to add, thereafter, we have another 5 years of AMC on the RVNL that we're giving.

    — Shiraz Khanna

What to watch in Q3 FY26

Tritium Fundraise Progress

Next quarter
Current Approved by Exicom BV, engaged with investors for $40M fundraise
Target Fundraise closed, investment exposure reduced

Why it matters

Successful fundraise is crucial for Tritium's breakeven and to limit Exicom's investment exposure, impacting consolidated profitability.

Exicom BV, which is the holding company for Tritium Group of Companies, has approved $40 million fund raise to fund product commercialization, working capital investment and fixed cost coverage to enable Tritium to reach EBITDA and cash flow breakeven, which is in -- which will be achieved in the last quarter of next year. We are confident at this point of time, we are engaged with investors and confident of this fund raise.

Risks & concerns

  • Consolidated EBITDA pressure from Tritium losses

    medium

    Tritium's near-term losses are expected to continue to impact consolidated results for a few more quarters, specifically the next 4 quarters.

    Management acknowledged

  • Margin constraint due to product mix shift

    medium

    A slight shift in product mix, particularly higher sales of lower-margin lithium batteries, has constrained overall gross margins.

    Management acknowledged

  • Uncovered village project ending and new tender uncertainty

    low

    The 'uncovered village project' is coming to an end by December, with a new similar tender currently under evaluation, potentially creating a gap if not secured promptly.

    Management acknowledged

Q&A highlights

5 direct
Tritium Losses and Breakeven Timeline Partial
On the consolidated basis, yes, the EBITDA is under pressure. At this point of time, as I said in my presentation, I can only say we see long-term potential and not in terms of potential in the air, but with real contracts on ground. ... But yes, over the next three quarters, consolidated EBITDA will continue to be a sorry, for the next 4 quarters, consolidated EBITDA will continue to be under pressure.

Analyst challenged the high losses from Tritium and its impact on consolidated performance, seeking clarity on breakeven and mitigation actions. Management confirmed continued pressure for 4 quarters but highlighted long-term potential and external financing efforts.

Asked by Sai Surendra

Hyderabad Plant Revenue Contribution and Impact Timeline Direct
So as I said, trial production is starting in 2, 3 days, and we'll take one by one product line and do the trial production over the next 2 months. The commercial production will start from January. So I think you will start seeing benefit of this plant from January onwards. But in terms of seeing any significant benefits on P&L, I think we'll have to wait till the next financial year because we'll be only in start-up mode even towards the end of this financial year.

Analyst inquired about the financial impact of the new Hyderabad plant. Management provided a clear timeline for trial and commercial production but tempered expectations for P&L benefits until the next financial year due to the start-up phase.

Asked by Sai Surendra

Hyderabad Plant's Role for Tritium Products Direct
Yes. So in the so we have designed plant in a way where it can be used for Tritium products as well. However, as you are aware, Tritium has a large plant in U.S. where we are incurring cost. So first, Tritium's objective would be to utilize that plant. However, there are certain components of that product, which we'll be manufacturing in the Hyderabad plant from the very beginning. And when their volume grow beyond a certain point, we will also utilize this plant to make their final products. But that time line is not certain at this point. From a capability perspective, it absolutely can cater to Tritium's products.

Analyst sought clarification on whether the new Hyderabad plant would serve Tritium. Management confirmed the plant's capability but outlined a phased approach, prioritizing Tritium's US plant first, with Hyderabad initially producing components and eventually final products as volumes grow.

Asked by Anand Kumar

Lithium-ion Batteries for Data Centers Update Direct
Yes. So we are so while 90% of our sales continue to be in telecom, data center is not as big a market for us as telecom. However, there are multiple live inquiries. Even this quarter, I think we have sold almost 20 battery systems to data center. And I think the effort is to grow that.

Analyst asked for an update on the data center application for Li-ion batteries. Management provided specific sales figures for the quarter (~20 systems) and reiterated the strategic intent to grow this segment, acknowledging its smaller scale compared to telecom.

Asked by Khush Khotari

Tritium's Geographic Strategy and Focus Direct
So Tritium's main focus is America and U.K. and Europe. So these are the 3 geographies where Tritium's entire focus is, though they do some sales in Australia, other regions, but the main focus would be these three geographies. That's why we acquired Tritium to begin with because we saw it as complementary. Exicom focuses on India, Southeast Asia, Middle East, while Tritium would focus on the developed markets with their product, and that still is the strategy.

Analyst questioned Tritium's strategic focus and target geographies. Management clearly articulated Tritium's concentration on developed markets (America, UK, Europe) as complementary to Exicom's focus on emerging markets, confirming the original acquisition rationale.

Asked by Khush Khotari

BharatNet Project Duration and Post-Completion Outlook Direct
So it's a 30-month project, though we started in... End of quarter 1, but from any significant volume perspective, it's only been 1 quarter since we have started, which is quarter 2. So I think this will continue for at least 10 to 11 quarters. The project would continue. It's just in the start-up phase at this point. ... And just to add, thereafter, we have another 5 years of AMC on the RVNL that we're giving.

Analyst sought clarification on the BharatNet project's end date and its impact on critical power revenue. Management clarified it's a long-term project (30 months, continuing for 10-11 quarters) and highlighted a subsequent 5-year AMC contract, providing long-term revenue visibility beyond the initial project phase.

Asked by Anand Kumar

2 min read 6 chapters

Detailed narrative

Strong Standalone Performance in Q2 FY26

Exicom Tele-Systems reported a robust standalone performance in Q2 FY26, with revenue reaching INR 228 crores, marking a 52% sequential growth and 54% year-on-year increase. This growth was broad-based, with the Critical Power segment expanding by 53% YoY and the EVSE segment by 55% YoY. Standalone EBITDA grew to INR 15.1 crores from INR 12.6 crores in the previous quarter, and PAT saw a significant jump to INR 5.9 crores from INR 1.1 crores.

Robust Order Backlog and Future Opportunities

The company ended the quarter with a strong order backlog exceeding INR 1,400 crores. In the Critical Power segment, new tender-based opportunities worth approximately INR 700 crores were identified, driven by BSNL, rural connectivity, and the next phase of BharatNet. The company also secured multiyear supply and AMC contracts with a fourth system integrator and delivered solutions for about 5,000 BharatNet sites in Q2.

EV Charging Business Momentum

The EV charging business demonstrated significant momentum, growing 26-27% QoQ and 55% YoY. The company achieved its highest-ever sales volume for AC chargers, supplying over 20,000 units this quarter, and recorded its highest revenue for home chargers. Exicom also partnered with an OEM to enter the defense segment for bus and truck charging, with 43 chargers to be supplied next quarter, and won 50 high-power chargers for bus hubs and a truck OEM.

Tritium Subsidiary's Financial Strain and Strategic Funding

While standalone performance was strong, consolidated EBITDA remained under pressure, with a loss of INR 32.7 crores in Q2 FY26, primarily due to near-term losses from the Tritium subsidiary. Management expects this strain to continue for the next four quarters. To address this, Exicom BV, the holding company for Tritium, approved a $40 million fundraise to support product commercialization, working capital, and fixed costs, aiming for Tritium to achieve EBITDA and cash flow breakeven by the last quarter of next year.

New Hyderabad Manufacturing Facility

Exicom's new manufacturing plant in Hyderabad is on track, with trial production commencing in November 2025 and full commercial production expected by January 2026. The company has allocated INR 17.29 crores for the plant, which will enhance capabilities across PCB assembly, system integration, and Li-ion battery lines. While commercial production starts soon, significant P&L benefits are anticipated only from the next financial year as the plant scales up from its initial start-up phase.

Strategic Debt Reduction and Capital Deployment

Following a rights issue that raised approximately INR 260 crores, Exicom strategically utilized the funds. The company repaid INR 55 crores of unsecured debt and converted INR 106.9 crores of promoter debt into equity, strengthening its balance sheet. Additionally, INR 85 crores were earmarked for investment in Tritium, with INR 28.3 crores still to be deployed as of September 30, 2025, aligning with the company's plan to support its subsidiary's growth.

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

More Capital Goods earnings calls