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    Hind Rectifiers Limited

    HIRECT
    Capital Goods·12 Feb 2026
    Management Summary

    Hind Rectifiers reported strong revenue growth in Q3 FY26 and 9M FY26, driven by sustained execution and a robust order book. While EBITDA margins saw some moderation due to input costs and strategic investments, the company expects improvement in coming quarters. Key strategic initiatives like backward integration, global expansion, and propulsion system trials are progressing, with management guiding for 30% revenue growth in FY27.

    Highlights

    5

    • Consolidated revenue from operations grew 64.2% Y-o-Y to INR277.4 crores in Q3 FY26.

    • Consolidated PAT (excl. minority interest) increased 30.1% Y-o-Y to INR13 crores in Q3 FY26.

    • Order book stands strong at INR1,103 crores as of December 31, 2025, providing good visibility.

    • Propulsion system trials have commenced and are expected to complete within 3-4 months, with INR50 crores of initial orders already secured.

    • Board approved a 1:1 bonus share issue, capitalizing on strong financial position and aiming to improve liquidity.

    Concerns

    3

    • EBITDA margin moderated by 120 bps Y-o-Y in Q3 FY26 due to expansion-led investment in the copper conductors plant and increased input costs.

    • New order inflow was muted in Q3 FY26 as railway tenders expected during the quarter were deferred.

    • BeLink subsidiary is currently loss-making and is expected to remain so for the next few quarters during its integration and growth phase.

    What Changed2

    vs Q4 FY26

    Guidance items6 → 5 (-1)Risks discussed2 → 4 (+2)
    Key financials

    Metrics

    9

    Periods

    2

    Q3 FY26

    5
    • Consolidated Revenue
      ₹277.4 Cr
      YoY+64.2%
    • Consolidated EBITDA
      ₹25.5 Cr
      YoY+44.9%
    • EBITDA Margin Moderation
      -120 bps
    • Consolidated PAT (excl. minority)
      ₹13 Cr
      YoY+30.1%
    • Exceptional Expense
      ₹1.3 Cr

    9M FY26

    4
    • Consolidated Revenue
      ₹719.3 Cr
      YoY+52.9%
    • Consolidated EBITDA
      ₹75.7 Cr
    • EBITDA Margin
      10.5%
    • Consolidated PAT
      ₹40.2 Cr
      YoY+48.2%

    Order Book

    high confidence

    Total Value

    ₹ 1,103 crores

    as of 2025-12-31

    quantified

    Execution

    It's spread over multiple quarters., and it keeps building so that's how it is.

    Pipeline

    deal pipeline tcv

    Requirements building up for transformers; Indian Railways plans to manufacture 1,700 electric locomotives, with tenders coming out now.

    Cancellations / Deferrals

    • deferred:Railway tenders expected in Q3 FY26 were moved out by a quarter.

    "Order book is robust, but new inflows in Q3 were muted due to deferred railway tenders, with expectations for orders to pick up in the next quarter and beyond."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹60 crores

    M&A

    Coincade Studios Private Limited

    acquisition · closed · Consideration ₹NaN (cash)

    Guidance & targets

    5
    CategoryTargetPriority
    Revenue
    Revenue Growth
    30%
    		High
    Order Book
    Order Board Growth
    30%
    		High
    Profitability
    EBITDA Margin
    back to even better than previously
    		Medium
    Operations
    CTC Factory Normalized Production
    normalized production
    		High
    Operations
    Propulsion System Trial Completion
    50,000 kilometers completed
    		High

    What to watch in Q4 FY26

    5

    Propulsion system trial completion

    within 3-4 months
    CurrentTrials commenced on Western Railway
    Target50,000 kilometers completed

    Why it matters

    Successful completion is key for securing more orders and validating new product capabilities.

    Yes. So as mentioned earlier during the call, the propulsion system trials have commenced, and we expect the 50,000 kilometers to be completed in three to four months, as mentioned earlier.

    Risks & concerns

    4
    RiskSeverity

    Raw material price volatility

    Fluctuations and volatility in commodity markets, particularly copper, impacted EBITDA margins in Q3 FY26. — Management acknowledged

    medium

    Delay in railway tenders

    Railway tenders expected in Q3 FY26 were moved out by a quarter, impacting new order inflow for the period. — Management acknowledged

    medium

    BeLink subsidiary loss-making

    The BeLink subsidiary is currently loss-making and is expected to remain so for the next few quarters during its integration phase. — Management acknowledged

    medium

    Long gestation period for new traction products and exports

    New traction products and export orders require significant time for commissioning, field trials, and customer adoption, making it a 'long game'. — Management acknowledged

    low

    Q&A highlights

    7

    “Our order book is, as shown, as mentioned earlier, is a robust order book. At the same time, particularly during this quarter, the railway tenders, which were expected to be closed had kind of moved out by a quarter, but the requirements are building up, especially for the transformers that is mainstay of our product line. We are expecting the orders to come in next quarter.”

    Analyst questioned muted order book in Q3, management clarified that tenders were deferred but expected in Q4, indicating pipeline strength.

    asked by Jay Jain

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Financial Performance in Q3 and 9M FY26

    Hind Rectifiers delivered robust financial results for Q3 FY26, with consolidated revenue from operations growing 64.2% year-on-year to INR277.4 crores. Consolidated EBITDA increased by 44.9% year-on-year to INR25.5 crores, while PAT (excluding minority interest) rose 30.1% to INR13 crores. For the nine-month period, revenue reached INR719.3 crores, up 52.9% year-on-year, with EBITDA at INR75.7 crores (10.5% margin) and PAT at INR40.2 crores, reflecting a 48.2% year-on-year growth.

    02

    Robust Order Book and Demand Outlook

    The company's order book remains strong at INR1,103 crores as of December 31, 2025, providing good revenue visibility for coming quarters. Management noted that while Q3 saw muted new order inflows due to deferred railway tenders, requirements are building up, and significant orders are expected in Q4 FY26. The Union Budget's record capital expenditure of INR2.93 lakh crores for Indian Railways, coupled with plans to manufacture 1,700 electric locomotives next year, creates a supportive demand environment.

    03

    Strategic Initiatives and Capability Building

    Hind Rectifiers is actively pursuing several strategic initiatives. The backward integration project for specialized copper conductors at the Sinnar facility is stabilizing, enabling in-house manufacturing and deployment in transformers supplied to Indian Railways. The company is also evaluating external market opportunities for this segment. Furthermore, the Board approved a 1:1 bonus share issue, capitalizing on the company's strong financial position and aiming to improve equity liquidity.

    04

    Propulsion System Trials and R&D Pipeline

    The trials for the company's propulsion system have officially commenced at Western Railway and are expected to be completed within three to four months. Hind Rectifiers already holds initial orders worth approximately INR50 crores for this system and anticipates more orders post-trial completion. The company also has about 40 products under development in R&D, including new products, upgrades, and engineering improvements, with continuous rollouts planned.

    05

    Global Expansion and BeLink Integration

    Integration with BeLink Solutions, operating under BELINK HIRECT SAS, is ongoing. While the subsidiary is currently loss-making and expected to remain so for a few quarters, management is focused on strengthening customer relations and exploring cross-selling opportunities in European markets, including railways and defense. The company also invested INR90 lakh in Coincade Studios Private Limited, its in-house AI software and design subsidiary, to bolster its capital base and support business expansion.

    06

    Margin Dynamics and Future Outlook

    EBITDA margins moderated by 120 basis points year-on-year in Q3 FY26, primarily due to expansion-led investments in the Sinnar copper conductors plant and increased input costs from supply chain disruption🌐s. However, management expects margins to improve in Q4 FY26 and Q1 FY27, with the 'real upside' anticipated from Q2 FY27 when the CTC factory is in full swing. The company guides for a 30% year-on-year revenue growth for FY27, driven by existing business and a similar growth in the order board.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.