Hind Rectifiers

Hind Rectifiers reported robust standalone performance for Q4 and FY26. Standalone revenue from operations grew 42.7% YoY to INR264 crores in Q4 FY26, and 44.8% YoY to INR949.2 crores for the full year. Standalone EBITDA for FY26 increased 45.5% to INR102.5 crores, achieving a margin of 10.8%, while PAT rose 54.7% to INR57.7 crores. Consolidated results, however, showed a Q4 EBITDA margin of 3% and FY26 EBITDA growth of 19.6% to INR84.1 crores, primarily impacted by the Elventive France acquisition.

The acquisition of Elventive France (formerly BeLink Solutions) for EUR1 million, with an additional EUR2 million capital infusion, established HIRECT's manufacturing and R&D footprint in Europe. This acquisition strengthens capabilities in EMS, robotics, printed electronics, and power electronics, providing access to defense, aerospace, and industrial automation sectors. While currently operating at EUR700,000-EUR900,000 monthly revenue and being loss-making, management aims to increase revenue by 15-30% and expects it to reach PBT breakeven within 6-8 quarters.

The company is undergoing a rebranding to 'HIRECT' to better reflect its evolution beyond rectifiers. An ambitious long-term vision aims for a 10-fold growth to a $1 billion top-line goal within the next 5 years, compared to the 10 years it took to reach INR949 crores in FY26. This growth will be driven by organic expansion in the railway franchise, growth in adjacent verticals like defense, mining, and power management, and selective inorganic moves. Long-term EBITDA margins are targeted to be in the mid to late teens.

HIRECT successfully completed all external type tests for its Propulsion Systems, making it eligible to bid for development orders in upcoming tenders. The company expects field trials to commence immediately. Management anticipates results from propulsion systems to start coming in from Q3 onwards and aims to become an approved source by next year. The propulsion system component contributes INR1.7-1.8 crores to the INR5-5.5 crores wallet share per locomotive.

The company commercialized its fully automated copper conductor facility during the year and has begun receiving trial orders from private customers. This vertical is expected to generate good revenue in the coming years. Plans include tripling copper conductor capacity, which is part of the strategic deployment of the recently approved preferential issue funds.

The Board approved a preferential issue of INR100 crores from Tata Mutual Funds, subject to approvals. These funds will be strategically deployed to increase monthly transformer production capacity by 20%, triple copper conductor capacity, modernize power electronics test systems, and enhance R&D infrastructure. Additionally, a portion will support working capital and general corporate purposes. Capex for FY26 was approximately INR70 crores, with an estimated INR50 crores planned for FY27, primarily for capacity expansion in propulsions, transformers, and copper.

The Indian Railways sector continues to offer significant long-term opportunities, supported by a record INR2.93 lakh crores budget allocation. HIRECT has evolved from a component supplier to a vertically integrated system solutions provider, expanding into higher value-added products like HVAC systems, IGBT-based electronics, and control systems. The company's addressable wallet share per locomotive has tripled to approximately INR5-5.5 crores.

HIRECT's R&D team has grown to 150 members, with plans to reach 200 by Q3, working on over 40 active projects. A key achievement for the year was the indigenous brake system for 6,000 HP locomotives. The company emphasizes its in-house design and development, which ensures adaptability to Indian conditions and adherence to stringent quality standards like FRPCPY (<30%), a critical differentiator in the competitive landscape.