Hind Rectifiers

Hind Rectifiers reported robust financial results for Q2 and H1 FY26. Q2 revenue from operations grew 37% YoY to ₹227.1 crores, with EBITDA increasing 41.4% to ₹25.9 crores and PAT up 44.6% to ₹14.7 crores. For H1 FY26, revenue reached ₹441.9 crores, a 46.6% YoY growth, and PAT surged 60.6% to ₹27.5 crores. The company also saw an improvement in EBITDA margin to 11.3% in H1 FY26 from 10.9% in H1 FY25, and working capital days improved significantly from 96 to 80 days.

A major milestone was the completion of the backward integration project at the Sinnar Plant, with commercial production of critical specialized copper conductors (CTC, EPICC, PICC) commencing. This initiative, involving an investment of approximately ₹56 crores, aims to enhance operational efficiency, streamline the supply chain, reduce dependence on external vendors, and avoid penalties from Indian Railways. It also establishes a new vertical focused on fast-moving copper conductors with strong export potential, catering to both internal needs and the broader transformer industry.

Hind Rectifiers strategically acquired BeLink Solutions, a France-based company with expertise in robotics, electronics manufacturing, and power electronics R&D. This acquisition provides a strong foothold in Europe, combining advanced manufacturing capabilities with deep R&D. BeLink currently has revenues of approximately EUR10 million but is not yet profitable, requiring a commitment of EUR1.5 million per year for three years to fund its losses. The acquisition is expected to scale globally and accelerate innovation across mobility, energy, and industrial markets, leveraging BeLink's intellectual property and technology.

The company maintained a strong order book of ₹1,099 crores as of September 30, 2025, providing 12 to 18 months of revenue visibility, primarily supported by Indian Railways and leading OEM customers. Management noted that while the order book appears flat QoQ, execution momentum has increased. Hind Rectifiers is actively diversifying its business beyond railways into segments like defense and electronics, with the BeLink acquisition contributing to this strategy by expanding into new applications and geographies.

Trials for the propulsion system have been underway, though initial official commencement faced delays due to Western Railway's first-time experience with such trials. Clearances have now been received, and trials are expected to start soon. Management expressed confidence in securing orders from recent tenders for the propulsion system, which will make the company eligible for high-quantum locomotives like P7 and G9, following 50,000 kilometers of field trials and subsequent commercialization.

Gross margins contracted from approximately 28% to 25% in H1 FY26. This was primarily attributed to shortages of copper conductors, necessitating imports from South Korea and China, often requiring costly air freight due to supply chain and logistics problems. Management expects this issue to be resolved with the commissioning of the in-house copper conductor facility, targeting a return to previous gross margin levels from Q4 FY26 onward.