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Powerica Limited — Q4 FY26 earnings call

Call held 29 May 2026

Management summary

Powerica reported its highest-ever performance in FY26, with revenue crossing INR 3,000 crores for the first time, driven by strong growth in both DG Sets and Wind power segments. The company made significant strides in capital allocation by repaying INR 525 crores of debt post-IPO, which is expected to boost future PAT margins. While Q4 margins were temporarily impacted by geopolitical tensions, management anticipates continued double-digit growth in FY27, particularly from data centers and the rapidly growing Platino Automotive business.

Highlights

  • Highest ever performance with sustained margin growth in FY26.

  • FY26 Revenue from operations of INR 3,012 crores, up 13.5% YoY.

  • FY26 EBITDA of INR 386 crores, with a 12.8% margin.

  • FY26 PAT of INR 277 crores, with a 9.2% margin.

  • Debt repayment of INR 525 crores in Q1 FY27, expected to enhance PAT margin.

Concerns

  • Q4 FY26 margins were slightly subdued due to geopolitical tensions.

  • Project execution delays in Khavda wind project due to land acquisition issues.

  • Potential long-term impact of fuel cell technology on the DG business.

Key financials

2 periods

Q4

  • Revenue
    ₹801 Cr
    YoY +10.9%
  • EBITDA
    ₹86 Cr
  • EBITDA Margin
    10.8%
  • PAT
    ₹45 Cr
  • PAT Margin
    5.6%

FY26

  • Revenue
    ₹3,012 Cr
    YoY +13.5%
  • EBITDA
    ₹386 Cr
  • EBITDA Margin
    12.8%
  • PAT
    ₹277 Cr
  • PAT Margin
    9.2%
  • Deferred Tax Credit
    ₹51 Cr

What they filed

Q1 FY27: revenue up 26.6%, net profit up 25.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue704 722 616 832 763 +8%801 +11%780 +27%
EBITDA82 68 85 129 78 −5%84 +24%106 +25%
Net profit30 37 51 84 98 +227%45 +22%64 +25%
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.

Segment breakdown

  • Generator Set Business
    83% Revenue Contribution10.9% Growth9.1% EBITDA Margin66% Cummins DG Sets Revenue Share5% MSLG Revenue Share
  • Allied Business
    12.5% Revenue Contribution
  • Wind Power
    16.9% Revenue Contribution₹512 Cr Revenue28.6% Growth31.3% EBITDA Margin40% IPP Business Share60% EPC & O&M Business Share
  • Platino Automotive (Q4 FY26)
    ₹22 Cr Sales₹5.8 Cr PBT

Order book

high confidence

Total value

585 megawatt

as of 2026-03-31 quantified

Execution

Executing 585 MW order pipeline till December '27

Composition

Mix 2 project statuses
  • Gujarat (executing) 175 megawatt 29.9%
  • Maharashtra (executing for Torrent Power) 410 megawatt 70.1%

Share of order book by project status, derived from disclosed amounts

Pipeline

L1 awaiting loa

100 MW bid secured with GUVNL, 50 MW under advanced planning stage

The company has a strong and visible order book, particularly in the wind EPC and data center segments, with execution timelines extending into FY27.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex 51.3 megawatt
    Further, on the capex side, we did 51.3 megawatt of capex for the business during the year.
  • Debt Debt disclosed
    • Repayment Repaid existing debt post-IPO ₹525 Cr
    Following our IPO, the company has repaid the existing debt of INR525 crores in quarter 1 2027.
  • Liquidity Cash ₹450 Cr Includes cash and investments.
    And currently, company holds a cash, including investment of approximately INR450 crores as on May 26.

Guidance & targets

Volume

  • DG Sets organic growth Volume · FY27 · High confidence 11-12%
    So we target an organic growth of about 11%, 12%. So as I was saying, addressing sir's question, we expect organic growth at about 11% to 12% from our DG space.

    — Jai Ram Oberoi

  • EPC business volume Volume · every year · High confidence 250-300 MW
    But the EPC business which we will be doing for the other companies, that will be you can say 250, 300 megawatt or 250 megawatt every year.

    — Pradeep Gupta

Revenue Mix

  • DG Sets vs Wind Revenue Split Revenue Mix · next 4-5 years · Medium confidence 75-80% DG, 20-25% Wind
    So currently, it is 83% of the DG and 14%, 15% of the wind power. So in the next four or five years, it will be in the range of 75%, 25% only because DG is also going to grow in the same fashion plus the other our allied business is also growing. So in that fashion, but wind will also grow. ... You might see from a revenue side, it will be ranging between 75% to 80% on the Gen set and 20% to 25% ranges that will come into the wind vis-a-vis the EBITDA side, you will see the shift.

    — Pradeep Gupta, Ritesh Agrawal

  • Data center contribution to revenue Revenue Mix · FY27 · Medium confidence higher than 12%
    do we think that we'll have a meaningful increase in contribution of data center DG Sets in FY27. Currently, you mentioned it was 12%. So are we expecting this contribution to go higher in FY27 only? Yes, absolutely.

    — Jai Ram Oberoi

Revenue Growth

  • Platino Automotive growth Revenue Growth · implied near term · Medium confidence >10-12%
    Would it be fair to say that this part of the business would grow faster than the DG set at, let's say, more than that 10%, 12% growth? Yes, absolutely. I mean it's a small-scale high growth.

    — Jai Ram Oberoi

Market context

  • Top line growth Revenue · FY27 · Medium confidence double-digit
    We remain focused on the larger opportunity ahead and are targeting double-digit top line growth in FY27.

    — Jai Ram Oberoi

What to watch in Q1 FY27

Finance cost reduction

Q1 FY27
Current INR 525 crores debt repaid in Q1 FY27
Target Substantial reduction in finance cost and enhanced PAT margin

Why it matters

The debt repayment post-IPO is a significant capital allocation event expected to directly improve profitability.

Following our IPO, the company has repaid the existing debt of INR525 crores in quarter 1 2027... And as a result of substantial reduction is expected in the finance cost in Q1 FY27, and that is directly going to enhance our PAT margin.

Risks & concerns

  • Geopolitical & Macroeconomic Headwinds

    medium

    Geopolitical uncertainties, rising energy prices, and supply chain pressures are expected to weigh on near-term demand, especially in Q1 FY27.

    Management acknowledged

  • Land Acquisition & Connectivity Issues for Wind Projects

    medium

    ROW issues, land, and connectivity problems are causing delays in wind project execution, particularly for the Khavda project.

    Analyst acknowledged

  • Technological Disruption (Fuel Cells)

    low

    The emergence of fuel cell technology could potentially impact the DG business, but management believes DG sets will remain essential for power backup, and the company will adapt to new technologies.

    Analyst downplayed

Q&A highlights

6 direct, 1 evasive
Platino Q4 FY26 Performance Direct
So the Platino has a INR22 crores of sales with INR5.8 crores of PBT during the quarter -- Q4 of FY26.

Provides specific financial performance for a new, high-growth segment, which was not detailed in prepared remarks.

Asked by Nidhi Shah

Margin Trend (Q3/Q4 FY26) Partial
For the margin, the company has been working consistently on improving the margin. So this year, as we all know, there was a geopolitical tension that sparked during the Q4, and that also extended in the Q1. We believe this is a temporary...

Addresses investor concern about recent margin compression, attributing it to temporary geopolitical factors and CPCB4 impact.

Asked by Nidhi Shah

Khavda Project Execution & Land Issues Direct
So as far as Khavda project is concerned, it's a long-term project along with the joint venture with GE Vernova. And still we are in the process of getting the land from the Gujarat government. Post getting the land from the Gujarat government, only this project will get initiated with the IPP customers.

Highlights a key project and the challenges (land acquisition) affecting its timeline, which is a common risk in infrastructure projects.

Asked by Divyam Sureka

Threat from Fuel Cells to DG Business Direct
Yes. So, I mean, as the technology comes to India, we are always the part to market for these engines and to service these data centers... Just to add, any of the new technology, whichever will come, the generator set is a power backup, which is basically an insurance for any of the activities that we do. So whatever we'll do, the genset will be there. You might see some reduction in the quantity.

Addresses a potential long-term technological disruption risk to the core DG business, with management asserting adaptability and the continued need for backup power.

Asked by Sampath Nayak

Data Center Contribution to Hyperscaler Capex Evasive
It's very difficult to answer because it is with them. So someone is doing with X quality, someone is doing with Y quality. And since Powerica has not done the data center themselves, so it is very difficult for us to quantify. But what we do, we supply the generator set to them.

Reveals the company's position in the data center value chain (supplier, not full EPC) and the difficulty in estimating its share of overall hyperscaler capex, indicating limited visibility into the broader capex.

Asked by Sampath Nayak

FY27 Capex and Depreciation Direct
So in FY27, you might see some higher in terms of depreciation as we capitalize 50 megawatts, whether we are going to capitalize another 50 megawatt during the year. So you might see additional 50 megawatt capex and some bit of a higher depreciation during the year.

Provides insight into future capital expenditure plans and their expected impact on depreciation, affecting future profitability.

Asked by Hetvi Sanghvi

Australia MSLG Project Status Direct
Yes. So the Australia project is in the advanced stages, about 90% to 95% complete. We've also secured a good service order in terms of operation and maintenance for the project, which will be continuous and ongoing post that.

Gives an update on a specific international project, indicating near-completion and potential for recurring service revenue.

Asked by Hetvi Sanghvi

Other Growth Drivers for FY27 (beyond Data Centers) Direct
See, so manufacturing and realty have always been our key growth drivers across the entire product range, right? Even with the surge in data centers, we as a proportion of our revenue, we haven't seen data center match these two industries, right? Like there's a lot of market to factor in with these two sectors. And we see rental players really picking up from our perspective as well in the market.

Broadens the understanding of the company's growth strategy beyond the highly discussed data center segment, highlighting traditional strengths and emerging opportunities.

Asked by Nidhi Shah

2 min read 6 chapters

Detailed narrative

Record FY26 Performance Driven by Diversified Growth

Powerica achieved its highest-ever performance in FY26, with revenue from operations reaching INR 3,012 crores, marking a 13.5% YoY growth and crossing the INR 3,000 crore benchmark for the first time. The company reported an EBITDA of INR 386 crores with a 12.8% margin and a PAT of INR 277 crores with a 9.2% margin. This growth was fueled by a 10.9% YoY increase in the generator set business, contributing 83% of total revenue, and a robust 28.6% YoY growth in the wind power segment, which contributed 16.9% of revenue.

Strategic Debt Reduction and Enhanced Liquidity

Following its IPO, Powerica demonstrated strong financial discipline by repaying INR 525 crores of existing debt in Q1 FY27. This significant debt reduction is expected to lead to a substantial decrease in finance costs and a direct enhancement of PAT margins in the upcoming quarter. The company also maintains a healthy liquidity position, holding approximately INR 450 crores in cash and investments as of May 26, providing financial flexibility for future growth initiatives.

Expanding Renewable Energy Footprint

Powerica is actively expanding its presence in the renewable energy sector. The company is currently constructing an additional 52.7 MW wind project, which will increase its IPP portfolio to 384 MW upon completion. Furthermore, it has secured bids for another 100 MW with GUVNL and has an additional 50 MW under advanced planning. The in-house EPC and O&M capabilities provide a strong execution advantage, contributing to the wind segment's 31.3% EBITDA margin in FY26.

Data Centers and High-Horsepower DG Sets as Key Growth Vectors

The data center industry is a significant growth driver for Powerica, contributing 12% to the company's top line in FY26. Management anticipates this contribution to grow further in FY27, supported by a strong order book with 9-12 months of visibility. The company's expertise in high-horsepower DG Sets and its established reputation with major hyperscale and colo data centers position it well to capitalize on the increasing demand in this sector.

Platino Automotive: Addressing Emission Norms with High Growth Potential

Powerica's associate company, Platino Automotive Private Limited, is strategically positioned to address the retrofit market for CPCB4+ emission norms. Its RECD device, applicable to engines 125 kVA and above, generated INR 22 crores in sales and INR 5.8 crores in PBT in Q4 FY26. This segment is expected to grow faster than the traditional DG Sets business, driven by evolving state-level mandates for emission compliance and a large addressable market.

Q4 Margin Impact and Positive FY27 Outlook

While Q4 FY26 saw slightly subdued margins, with EBITDA at 10.8% and PAT at 5.6%, management attributed this to temporary geopolitical tensions. Despite these short-term pressures, Powerica is targeting double-digit top-line growth in FY27, with an expected 11-12% organic growth in the DG Sets business. The company projects a long-term revenue mix shift towards 75-80% from DG Sets and 20-25% from wind power within the next 4-5 years, reflecting its diversified growth strategy.

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