Schneider Electric Infrastructure Limited — Q1 FY26 earnings call

Call held 8 Aug 2025

Management summary

Schneider Electric Infrastructure delivered a quarter of strong order momentum but muted revenue execution. While order inflows grew by over 42%, revenue growth was limited to 5% due to project delays and spillovers into Q2. Profitability margins were under pressure compared to the previous year's high base, which included exceptional credits, but management remains confident in achieving full-year targets backed by a record order book.

Highlights

  • Order inflow surged to ₹910 crores, a 42.1% increase YoY

  • Revenue grew by 5% YoY to ₹622 crores, impacted by project spillovers

  • Order backlog stands at a robust ₹1,635 crores, up 25% YoY

  • EBITDA margin contracted by 240bps to 11.8% due to base year exceptional credits

  • PAT reported at ₹41 crores, a slight decline of 1.5% YoY

  • Capacity utilization remains high at 85-90%

  • Planned capex of ₹200-plus crores for capacity expansion is on track

  • Power and Grid segment remains the core contributor at 40-45% of business

Concerns

  • Project Execution Delays

Key financials

  1. Revenue ₹622 Cr +5%YoY
  2. Order Inflow ₹910 Cr +42.1%YoY
  3. EBITDA Margin 11.8%
  4. PAT ₹41 Cr -1.5%YoY
  5. Order Book ₹1,635 Cr +25%YoY
  6. Material Margin 38.8%

What they filed

Q1 FY27: revenue up 4.7%, net profit down 70.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue600 857 587 622 650 +8%1,029 +20%590 +1%651 +5%
EBITDA74 140 87 69 84 +14%173 +24%45 −48%34 −51%
Net profit54 111 55 41 52 −4%97 −13%22 −60%12 −71%
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

  • Power and Grid
    42.5% Revenue Contribution

Guidance & targets

Capex

  • Planned Capacity Expansion Capex Capex · FY26-FY27 · High confidence ₹200-plus crores
    whatever capacities are needed, we already have started working on it and maybe INR 200-plus crores is what we have planned.

    — Udai Singh, MD & CEO

Capacity

  • Capacity Utilization Capacity · Current · High confidence 85-90%
    Currently, we are in the 85%, 90% capacity utilization.

    — Suparna Bhattacharyya, CFO

Market Share

  • Data Center IT Load Capacity Addition Market Share · next 4-5 years · Medium confidence 2.5-3 GW
    what we expect that we should be adding another 2.5 gigawatts or about 3 gigawatts of IT load capacity on the existing 1.2 gigawatt load in, say, coming 4 to 5 years.

    — Udai Singh, MD & CEO

Margin

  • Full Year Margin and Profitability Margin · FY26 · Medium confidence Maintain internal guidance
    whatever guidance we have actually taken internally for the full year, we are confident that we'll be delivering that margin and profitability for the full year.

    — Udai Singh, MD & CEO

Risks & concerns

  • Project Execution Delays

    high

    Revenue growth was muted at 5% due to spillovers and project delays at the customer level.

    Both acknowledged

  • Competitive Pricing Pressure

    medium

    Analyst raised concerns about increased industry capacity leading to margin pressure; management claims they focus on technology niches rather than volumes.

    Analyst downplayed

  • Geopolitical Abrasion

    low

    Management noted recent geopolitical announcements as 'abrasions' that will eventually settle out.

    Management acknowledged

Areas of evasion (3)

  • Specific numerical guidance for FY26
  • Detailed segment-wise revenue/margin split beyond Power and Grid
  • Theoretical peak capacity sales figures

Q&A highlights

1 direct, 1 evasive
Margin Compression and Guidance Partial
This number, which you see a small drop is more of a time impact... whatever guidance we have actually taken internally for the full year, we are confident that we'll be delivering.

Investors were concerned about the YoY margin drop; management attributed it to timing and base effects rather than structural issues.

Asked by Naysar Parikh, Native Investment Managers

Specific Financial Guidance Evasive
I'm afraid Jayeshji, it may not be perhaps possible to share the guidance, but it will be something which Suparna would like to add... I can only say that we are chasing those targets internally.

Management repeatedly refused to provide specific numerical guidance for revenue or margins, relying instead on 'internal targets'.

Asked by Jayesh Shah, OHM Portfolio

Growth Lag vs Peers Direct
Sales, a little moderate growth in sales doesn't really give the indication that there is loss of orders or there is a loss of market share. It is just that it has been deferred from this quarter to that quarter.

Addresses the red flag of 5% growth while competitors are seeing double-digit growth; management clarifies it is a timing/deferral issue, not a market share loss.

Asked by Abhijeet Singh, Systematix

1 min read 5 chapters

Detailed narrative

Order Inflow Outpaces Execution

Schneider Electric Infrastructure saw a massive 42.1% YoY jump in order inflows, reaching ₹910 crores for the quarter. However, revenue execution lagged significantly at just 5% growth (₹622 crores) due to project spillovers and customer-side delays. This has resulted in a record order backlog of ₹1,635 crores, which management expects to convert into higher revenue in Q2 and Q3 FY26.

Margin Compression Analysis

The EBITDA margin fell to 11.8% from 14.2% in the previous year. Management attributed this 240bps decline to exceptional credits in the base year and a lower material margin of 38.8% (down 1.5 points). Despite the Q1 dip, they maintain that internal full-year margin targets remain intact and will be supported by a better product mix in upcoming quarters.

Strategic Focus on High-Growth Segments

The company is positioning itself to capture massive tailwinds in the data center and EV mobility sectors. Management expects India to add 2.5-3 GW of IT load capacity in the next 4-5 years and targets 30% EV penetration by 2030. SEIL is already a dominant player in rail infrastructure, providing breakers for 75-80% of Vande Bharat trains.

Capacity Expansion and Utilization

Current capacity utilization is high at 85-90%, prompting a planned capex of over ₹200 crores. This is in addition to a ₹130 crore investment started previously. Management stated they are operating at 'optimal levels' and are expanding multiple lines to accommodate the growing order book without creating bottlenecks.

Digital and Sustainable Infrastructure Pivot

SEIL is transitioning from a pure equipment provider to a digital partner for sustainability. They highlighted wins in smart inverter duty transformers for solar farms and the first smart ring main units for utilities. This shift toward sensorized, subscription-based equipment models is intended to create differentiation and higher value-add for customers.

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