Detailed Narrative
Q1 FY27 Financial Performance Overview
Laser Power & Infra Limited reported a robust Q1 FY27 with revenue from operations increasing by 15% year-over-year to INR521.5 crores. EBITDA saw a stronger growth of 26% to INR65.9 crores, leading to an improved EBITDA margin of 12.6% compared to 11.5% in Q1 FY26. Profit Before Tax (PBT) also grew by approximately 27% to INR28.6 crores, with PAT at INR21.1 crores. Finance costs, however, remained high at INR36.2 crores, absorbing 55% of quarterly EBITDA.
Strong Order Book and Segmental Growth Drivers
The company's order book stood at INR2,788.4 crores as of June 2026, comprising INR1,432.7 crores from manufacturing and INR1,355.7 crores from EPC. The EPC segment was a significant growth driver, with its revenue increasing by 129% year-over-year to INR139.1 crores and EBITDA growing substantially to INR27.6 crores from INR9.3 crores in Q1 FY26. Manufacturing revenue was INR382.4 crores with EBITDA of INR38.8 crores.
Strategic Focus on Advanced Conductors and Market Expansion
Laser Power & Infra is strategically expanding into advanced conductors, particularly High-Temperature Low-Sag (HTLS) technology, through a partnership with US-based TS Conductors. The addressable market for HTLS conductors saw tenders worth approximately INR3,500 crores in the last year, with Laser participating in tenders worth over INR1,250 crores. This shift is expected to increase technology content, expand project range, and improve realizations and margins, with HT cable sales already increasing from 9% to 29% of total revenue in the last nine quarters.
Impact of IPO Proceeds on Debt and Finance Costs
The company utilized INR490 crores from its IPO proceeds in July 2026 for loan repayment, which is expected to significantly reduce finance costs from Q2 FY27 onwards. Gross debt currently stands at approximately INR360 crores, and after adjusting for INR240 crores in fixed deposits held as margin money, the net debt position becomes negligible. This deleveraging is projected to save approximately INR40 crores annually in interest expenses, improving PAT conversion.
Working Capital Dynamics and Management Priorities
Working capital remained a key focus area, with an increase in inventory working capital during Q1 FY27 due to the initial stages of projects worth approximately INR800 crores commenced in Q4 FY26. Management expects working capital to gradually moderate as these projects progress through execution. The company aims to improve working capital efficiency, accelerate collections, and convert project inventory into revenue and cash, maintaining typical working capital days of 110-120.
Capacity and Product Mix Evolution
With an installed manufacturing capacity of 85,000 metric tons, the company has sufficient capacity for its next phase of growth. While production volume has remained relatively flat, the focus has shifted towards specialized, higher-value products, which contribute more to the bottom line. Sales of high-voltage cables have increased from 9% to 29% of total revenue over the last nine quarters, indicating a successful product mix enrichment strategy. The company plans to enhance capacity when utilization reaches 75-80%.
Deferred Tax Benefits and Future Tax Outlook
The company is utilizing deferred tax benefits of approximately INR125-130 crores arising from a carry-forward loss in FY23 due to an acquisition. These benefits are expected to be fully set off in the current financial year (FY27), after which the company anticipates returning to normal tax payments post FY27. This transition will impact the cash outflow for taxes in subsequent fiscal years.