Schneider Electric Infrastructure Limited — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Schneider Electric Infrastructure reported a strong Q3 FY26, with sales growing 20% to over INR 1,000 crores and order booking up 60% to INR 909 crores. The company's order backlog increased over 50% YoY to INR 1,700 crores, indicating robust future growth. While gross margins saw some compression due to product mix, profitability before exceptional items remained healthy, growing 15% YoY for the quarter.

Highlights

  • Q3 FY26 sales grew 20% YoY to INR 1,000 crores.

  • Q3 FY26 order booking increased 60% YoY to INR 909 crores.

  • 9M FY26 order booking grew 37% YoY to INR 2,657 crores.

  • Order backlog reached INR 1,700 crores, representing over 50% YoY growth.

  • Profitability before exceptional items for 9M FY26 increased 8.2% YoY to INR 281 crores.

Concerns

  • Gross margin contraction in Q3 FY26 due to product mix impact.

  • One-time exceptional expense of INR 25 crores in 9M FY26 due to gratuity impact from labor code change.

Key financials

2 periods

Q3 FY26

  • Sales
    ₹1,000 Cr
    YoY +20%
  • Profitability (before exceptional) Growth
    —
    YoY +15%

9M

  • FY26 Sales
    ₹2,300 Cr
    YoY +12.3%
  • FY26 Profitability (before exceptional)
    ₹281 Cr
    YoY +8.2%
  • FY26 Exceptional Expense (Gratuity)
    ₹25 Cr

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.

Order book

high confidence

Total value

₹1,700 Cr

as of 2025-12-31 quantified

50% YoY

Inflow this quarter

₹909 Cr

The company expects to maintain a healthy order intake in coming times, boosted by government schemes and demand push.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex Capex disclosed
    • Getting ready for the future by infusing capex in all 3 plants
    the capex, which we are infusing in all our 3 plants in terms of getting ready for the future.
  • Debt Debt disclosed
    In finance cost also, if you look at in terms of the percentage is low, and we have a good cash in the company.
  • Liquidity Liquidity disclosed Company has good cash in the company.
    In finance cost also, if you look at in terms of the percentage is low, and we have a good cash in the company.

Guidance & targets

Government Spending

  • Next Year Capex Government Spending · next year · High confidence INR 12.2 lakh crores
    And the next year capex is slated to be about 11% more at about INR12.2 lakh crores

    — Udai Singh

Energy Transition

  • Renewable Target Energy Transition · 5 years down the line · High confidence 500 gigawatts
    5 years down the line, we are talking about a renewable target of 500 gigawatts.

    — Udai Singh

  • EV Penetration Rate Energy Transition · 5 years down the line · High confidence 30%
    We are talking about the EV penetration rate to go to 30%.

    — Udai Singh

Digitalization

  • IT Commission Load (Data Centers) Digitalization · next 5 years · High confidence 7 to 8 gigawatts

    From 1.7 gigawatts today

    today, as we speak, we are at roughly about 1.7 gigawatts of IT commission load, which we see that in next 5 years down the line, this will go up to at least 4x, if not more, to about anywhere number 7 to 8 gigawatts.

    — Udai Singh

Urbanization

  • Urbanization Rate Urbanization · 2030 · High confidence 41%

    From 17% today

    we have actually come up from 17% when we got independent to about 41% urbanization, which is slated to happen by 2030.

    — Udai Singh

Transportation

  • High-Speed Rail Corridors Length Transportation · High confidence 4,000 kilometers
    high-speed rail corridors, which are 7, which are getting announced, which will cover about 4,000 kilometers, the INR16,000 crores investment.

    — Udai Singh

  • High-Speed Rail Corridors Investment Transportation · High confidence INR 16,000 crores

    — Udai Singh

  • Dedicated Freight Corridor Length Transportation · High confidence 2,000 kilometers
    And also an additional dedicated freight corridor, which will be 2,000 kilometers connecting Dankuni to Surat.

    — Udai Singh

Manufacturing Resilience

  • Indian Semiconductor Mission 2.0 Allocation Manufacturing Resilience · High confidence INR 1,000 crores
    And the last is the Indian Semiconductor Mission 2.0, where another INR1,000 crores have been allocated in the budget

    — Udai Singh

Market Size

  • E-House/CSS/PSS Market Size Market Size · Medium confidence INR 1,400 crores
    And the E-House or CSS or PSS market, if I may say, my sense is about INR1,400 crores in the country.

    — Udai Singh

Sales Mix

  • Exports as % of Sales Sales Mix · 9 months · High confidence 11% to 12%
    So if you look at exports today, in 9 months, if I give you the number, it's close to 11% to 12%, okay?

    — Omkar Prasad

Market context

  • GDP Forecast Economy · next year · High confidence 6.8% to 7.2%
    Just to elaborate on this further, the GDP forecast for next year is supposed to be anywhere in the range of 6.8% to 7.2%

    — Udai Singh

  • Digital Economy Contribution to GDP Digitalization · 2030 · High confidence 20%

    From 12%-13% today

    we expect the digital economy, which today is roughly about 12%-13% will contribute to about 20% of GDP in 2030.

    — Udai Singh

What to watch in Q4 FY26

Gross Margin Trend

next quarter
Current Contraction in Q3 due to mix impact
Target Stabilization or improvement in gross margins

Why it matters

To confirm that Q3's margin contraction was indeed a mix effect and not a sustained trend or pricing pressure.

When you look at gross margin, yes, if you look at it in terms of the percentage there is dilution, but what we have the sales growth. It's coming largely the impact of the mix. So it is just the margin dilution.

Risks & concerns

  • Geopolitical uncertainties and headwinds

    medium

    Global or geopolitical situations may cause things to go off track, but the company aims to mitigate.

    Management acknowledged

  • Raw material price volatility

    medium

    While current projects are largely hedged, future impact from commodity inflation is foreseen, and the company uses hedging for key components.

    Analyst acknowledged

  • Gross margin contraction due to product mix

    low

    The dilution in gross margin percentage is attributed to a change in product mix, not a fundamental issue.

    Analyst acknowledged

Q&A highlights

6 direct, 1 evasive
Order Pipeline Strength Direct
We see going forward, these schemes which have been getting rolled out will boost the requirements because government is pursuing that there has to be a demand push coming and which we see that we will be able to maintain a healthy, I would say, order intake in coming times as well.

Management confirms a positive outlook on future order intake, supported by government initiatives, indicating sustained growth potential.

Asked by Mahesh Bendre

GMSeT Product Uniqueness and Application Direct
It is a unique product, but not limited to data centers. It can apply wherever you need to distribute power at 33 kV in the most compact and highly digitalized way... this is something which is really out of the class.

Highlights a new, advanced, modular, and digital product (GMSeT) made in India, emphasizing its broad applicability beyond data centers and its technological superiority.

Asked by Mahesh Bendre

Gross Margin Contraction in Q3 Direct
When you look at gross margin, yes, if you look at it in terms of the percentage there is dilution, but what we have the sales growth. It's coming largely the impact of the mix... So it is just the margin dilution.

Clarifies that the gross margin contraction is primarily due to product mix rather than execution issues or pricing pressure, providing context for profitability.

Asked by Anirudh

Commodity Cost Inflation and Hedging Strategies Direct
Commodity inflation is not impacted in this quarter largely, because generally, our projects' tenure to execute it's 3 to 6 months. So we had an RM already on hand... But yes, obviously, as different industry getting impacted, we also foresee such impact may come... we do hedge not 100%, but we do hedge the commodity, some key component.

Addresses concerns about raw material price volatility, explaining that current projects are largely hedged, but future impact is possible, and the company employs hedging strategies.

Asked by Anirudh

Data Center Contribution to Order Inflows Partial
Data centers till date order has been roughly about 10-ish, and we are trying to see as to going forward how will this contribute more for your business.

Provides an initial qualitative assessment of data centers' contribution to order inflows and indicates it's a growing area the company is actively pursuing.

Asked by Anirudh

Dividend Distribution Timeline Evasive
Your company has a dividend policy. It's there in our website... we will let you know in coming time.

Analysts are pushing for clarity on dividend distribution, and management reiterates the existence of a policy without providing a specific timeline for declaration.

Asked by Parimal Mithani

Key Challenges and Concerns for the Company Direct
Today, we if you really ask me, the top most priority of us is how do we have a profitable growth. Which means that we have to pick up the right strategic contracts... how do we execute it profitably, mitigating the risk and volatility of raw material which those contracts might offer.

Management identifies profitable growth and mitigating raw material risk as key challenges, indicating strategic focus areas for the company.

Asked by Gunal Bansal

Operating Leverage and Margin Improvement Direct
So we are always in constant search for how -- which areas do we optimize the cost, which areas can we get better prices... With those volumes, certainly, there will be some advantage and some leverage will come on the profitability.

Management confirms efforts to optimize costs and prices, and expects operating leverage and profitability benefits from ongoing capex as volumes increase.

Asked by Pratik Dharmshi

2 min read 6 chapters

Detailed narrative

Robust Q3 FY26 Performance and Order Book Growth

Schneider Electric Infrastructure delivered a strong Q3 FY26, with sales reaching INR 1,000 crores, representing a 20% year-on-year increase. The company's order booking for the quarter surged by 60% year-on-year to INR 909 crores. This contributed to a healthy 9-month order booking of INR 2,657 crores, up 37% year-on-year, and an order backlog of INR 1,700 crores, reflecting over 50% year-on-year growth and providing significant revenue visibility.

Focus on Profitable Growth and Operational Efficiency

Management emphasized its commitment to profitable growth through efficient order execution and cost optimization. For the nine months ended December 31, 2025, profitability before exceptional items stood at INR 281 crores, marking an 8.2% year-on-year increase. The company's ability to leverage its fixed costs and ongoing capex in its three plants is expected to drive further operating leverage and profitability improvements as volumes scale up.

Positive Market Outlook Driven by Government Initiatives

The company anticipates a favorable market environment, buoyed by government-led capital expenditure and policy support. Key drivers include a projected GDP growth of 6.8%-7.2% for the next year and an estimated INR 12.2 lakh crores in government capex. Long-term trends such as the 500 GW renewable energy target, 30% EV penetration, and the digital economy's projected 20% contribution to GDP by 2030 are expected to sustain demand for Schneider Electric's solutions.

Launch of Innovative GMSeT Product and Digitalization Efforts

Schneider Electric Infrastructure launched GMSeT, a new modular and digital gas-based primary distribution equipment, manufactured entirely in India. This product integrates advanced global technologies, offering enhanced safety, reliability, and predictive maintenance capabilities. It is designed for diverse applications across power and grid, transportation, buildings, and data centers, aligning with the company's focus on digitalization and localized solutions.

Addressing Gross Margin and Raw Material Risks

The company clarified that the gross margin contraction in Q3 was primarily due to a change in product mix, rather than fundamental pricing or operational issues. Regarding raw material price volatility, management noted that current projects are largely insulated due to their shorter execution cycles and existing inventory. While future impact is possible, the company employs hedging strategies for key components to mitigate such risks.

Commitment to Sustainability and Community Development

Schneider Electric Infrastructure demonstrated its commitment to sustainability by installing 1 MW of on-site renewable capacity at its Vadodara plants, sourcing 25% of its power from renewables. Water management initiatives have reduced consumption by 30% through rainwater harvesting and achieving zero liquid discharge. Additionally, the company supports community development through 10 skill centers in ITIs, solar electrification of health centers, and providing portable lighting solutions to 2,500 underprivileged families.

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