Hind Rectifiers Limited — Q3 FY26 earnings call

Call held 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

  • 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

  • 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.

Key financials

2 periods

Q3 FY26

  • 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

  • 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%

What they filed

Q1 FY27: revenue up 20.3%, net profit down 49.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue166 169 185 215 227 +37%277 +64%280 +51%258 +20%
EBITDA18 18 20 24 26 +41%26 +45%8 −58%13 −45%
Net profit10 10 10 13 15 +44%13 +27%-2 −116%7 −49%
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

₹1,103 Cr

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

high confidence
  • Capex ₹60 Cr
    Approximately cash flow-wise around approximately INR60 crores. In FY '26, sir? Yes, correct. Yes.
  • M&A Coincade Studios Private Limited Acquisition · Closed · Consideration ₹[object Object] (cash)

    To strengthen the capital base of the subsidiary and support its business expansion plans and future operational requirements.

    Furthermore, during the quarter, the Board of Directors has approved an investment of INR90 lakh in Coincade Studios Private Limited, a wholly owned subsidiary of Hind Rectifiers Limited, to subscription of its equity shares.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY27 · High confidence 30%
    And we expect a growth of 30% year-on-year, and we continue to maintain that going into the next year as well.

    — Suramya Nevatia

Order Book

  • Order Board Growth Order Book · next year · High confidence 30%
    Yes. So as we mentioned earlier, we are looking at a 30% growth year-on-year, and we expect a similar kind of growth on the order board.

    — Manoj Nair

Profitability

  • EBITDA Margin Profitability · next couple of quarters · Medium confidence back to even better than previously
    And we should be back to even better than, in fact, what margins we've done previously, we should be back in the next couple of quarters.

    — Suramya Nevatia

Operations

  • CTC Factory Normalized Production Operations · Q2 FY27 · High confidence normalized production
    From Q2 of the next year.

    — Suramya Nevatia

  • Propulsion System Trial Completion Operations · three to four months · High confidence 50,000 kilometers completed
    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.

    — Manoj Nair

What to watch in Q4 FY26

Propulsion system trial completion

within 3-4 months
Current Trials commenced on Western Railway
Target 50,000 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

  • Raw material price volatility

    medium

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

    Management acknowledged

  • Delay in railway tenders

    medium

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

    Management acknowledged

  • BeLink subsidiary loss-making

    medium

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

    Management acknowledged

  • Long gestation period for new traction products and exports

    low

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

    Management acknowledged

Q&A highlights

5 direct
Order book trajectory and new orders in Q3 FY26 Partial
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

EBITDA margin drop and future outlook Direct
So, the reduction in the margins is due to fluctuations and volatility in the commodity market particularly to do with copper, but we are doing everything that we can to mitigate this. more focused on the internal copper factory, which will help us to further improve the supply chain, which leads to all these issues. And we should be back to even better than, in fact, what margins we've done previously, we should be back in the next couple of quarters.

Analyst probed the reason for margin compression, and management attributed it to raw material volatility and internal investments, providing a timeline for recovery.

Asked by Rahil

BeLink integration and path to profitability Direct
For BeLink, it will take some time to turn it around. But when the turnaround does happen, the profitability will be in big multiples. And we are at this stage today where we are trying to still do the integration in a proper manner. And we are building a big global team to address those issues.

Analyst inquired about the financial performance of the BeLink subsidiary, and management confirmed it's loss-making but has long-term profitability potential after integration.

Asked by Manish Goyal

Propulsion system trial progress and order pipeline Direct
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. And yes, we do have order board for propulsion system currently, and we are expecting more to come.

Analyst sought an update on the critical propulsion system project, and management provided clear timelines for trials and confirmed initial orders.

Asked by Prisha Rathi

Capex plans for current and next fiscal year Direct
Approximately cash flow-wise around approximately INR60 crores. In FY '26, sir? Yes, correct. Yes.

Analyst asked for capex plans, and management provided a specific figure for FY26, indicating investment levels.

Asked by Manish Goyal

Long-term vision and diversification beyond railways Direct
So we have a very ambitious plan. We intend to increase our offering within our segment, which is power electronics, which is industrial electronics, semiconductors. And we want to go beyond railways. ... not just be restricted to India, but also increase our sales outside of India. So export is a big opportunity.

Analyst asked about the company's 5-year vision, and management outlined ambitious plans for diversification, global expansion, and technology focus.

Asked by Payal Shah

Status of 40 R&D products and launch timelines Partial
Yes. So, there are about 40 products which are under development in R&D. These include completely new products, upgrades, improvements, engineering and these products are rolled out continuously. So, every few weeks, something is released either in the factory or in the market.

Analyst inquired about the R&D pipeline, and management confirmed a significant number of products under development, indicating future growth drivers.

Asked by Prisha Rathi

2 min read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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 disruptions. 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.

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