Schneider Electric Infrastructure Limited — Q4 FY25 earnings call

Call held 27 May 2025

Management summary

Schneider Electric Infrastructure delivered a record-breaking FY25, characterized by strong double-digit growth in revenue and a significant surge in profitability. The company is pivoting towards a 'transactional' business model to improve margins and execution speed, while simultaneously committing to a massive capacity expansion to capture demand in data centers and green energy. Despite a slight dip in Q4 gross margins due to product mix, the overall trajectory remains bullish with a healthy order backlog and robust cash flow.

Highlights

  • Record annual revenue of ₹2,637 crores, representing 19.5% YoY growth

  • PAT surged by 55.8% YoY to reach ₹268 crores for the full year

  • Order inflow for FY25 stood at ₹2,693 crores, up 13.4% compared to the previous year

  • Management announced a major ₹200 crore capex plan to expand capacity in Vadodara and Kolkata

  • Kolkata plant capacity for breakers to be expanded 9x from 5,000 to 45,000 units

  • Free cash flow generation improved by 85% YoY, reaching ₹245 crores

  • Data centers now contribute approximately 15% of total revenue

  • Gross margins for the full year improved to 26% (₹1,037 crores)

Key financials

  1. Revenue ₹2,637 Cr +19.5%YoY
  2. PAT ₹268 Cr +55.8%YoY
  3. Order Inflow ₹2,693 Cr +13.4%YoY
  4. EBIT ₹382 Cr +35%YoY
  5. Gross Margin 26%
  6. Order Backlog ₹1,253 Cr +2%YoY

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

  • Data Centres
    15% Revenue Contribution
  • Group Sales
    18% Revenue Contribution

Guidance & targets

Capacity

  • Vadodara Panel Capacity Capacity · FY26-27 · High confidence 14,000 panels

    From 8,000 panels today

    We will be adding another 6,000 panels capacity and with this, we will be at 14,000 panels... expecting that we'll be able to add this in the year '26, '27.

    — Suparna Bhattacharyya, CFO

  • Kolkata Breaker Capacity Capacity · FY26-27 · High confidence 45,000 units

    From 5,000 units today

    We will be adding another 40,000. So after this, our capacity will become 9x higher. We'll be having a capacity of 45,000.

    — Suparna Bhattacharyya, CFO

Capex

  • Total Investment Capex · Next 2 years · High confidence ₹200 crores
    roughly INR200 crores is what we stand committed to invest in our own factories in India in terms of maximizing capacities.

    — Udai Singh, MD & CEO

Market Share

  • Group Sales Percentage Market Share · Next 2-3 years · Medium confidence 18%
    There's no change which we are expecting. Would be in the similar range as of now... It's about 18% of the group sales.

    — Suparna Bhattacharyya, CFO

Risks & concerns

  • Private Sector Capex Slowdown

    medium

    Management noted a slight decline (10-12%) in private sector capex announcements for FY26 compared to the previous year.

    Management acknowledged

  • Regulatory and Quality Control Orders

    medium

    Uncertainties evolving from new quality control orders and the Omnibus Technical Regulation are being monitored.

    Management acknowledged

  • Trade Uncertainties

    low

    Global trade uncertainties exist, though management claims the company is taking steps to mitigate material impact.

    Management acknowledged

Areas of evasion (1)

  • Specific margin guidance for the next year was avoided, citing competitive reasons.

Q&A highlights

3 direct
Stagnant Order Backlog Growth Direct
With the kind of improvement in the transaction business... we do not need what you call a backlog really for this because these orders are quickly executed.

Explains why the 2% YoY backlog growth is not a sign of slowing demand, but a shift toward faster-turnaround transactional orders.

Asked by Ashish Kumar, Ampersand Capital

Growth Strategy Amid 90% Capacity Utilization Direct
When I say installed capacities, we can always perhaps leverage this infrastructure to derive more... I can derive 1.2x or maybe 1.25x is the need is, depending on us engaging more people or running more shifts.

Assures investors that revenue growth can continue in the current year even before new capacity comes online in FY26-27.

Asked by Aditya Deorah, Divisha Investments

Jump in Other Expenses Direct
We've also started our branding activities which we participated in Elecrama... we have some good amount of marketing and branding expenses, which have come.

Clarifies that the 33% jump in other expenses is driven by strategic investments in branding and internal capability building rather than structural inefficiency.

Asked by Manish Goyal, Thinqwise Wealth Managers

2 min read 5 chapters

Detailed narrative

Record Financial Performance and Cash Efficiency

Schneider Electric Infrastructure achieved its highest-ever revenue and profit in FY25. Revenue grew 19.5% to ₹2,637 crores, while PAT surged 55.8% to ₹268 crores. The company demonstrated exceptional cash efficiency, with free cash flow increasing by 85% to ₹245 crores. This strong liquidity position allows the company to fund its upcoming ₹200 crore capex primarily through internal accruals.

Massive Capacity Expansion to Fuel Future Growth

To meet surging demand, the company is investing ₹100 crores in Vadodara to increase panel capacity from 8,000 to 14,000 units. More significantly, a ₹90 crore investment in Kolkata will expand breaker capacity by 9x, from 5,000 to 45,000 units. These expansions are slated for completion by FY26-27 and are designed to serve both the Indian market and global export requirements under the 'India-for-the-globe' strategy.

Strategic Shift to Transactional Business

Management highlighted a deliberate shift toward 'transactional' business, which involves selling core components to partners rather than just full project execution. This model allows for faster order-to-revenue conversion, explaining why the order backlog grew only 2% despite strong sales. This shift is expected to support margin stability and improve operational agility in a competitive landscape.

Capitalizing on Energy Transition and Data Centers

The company is heavily aligned with India's mega-trends, including the National Green Hydrogen Mission and the push for nuclear energy. Data centers have emerged as a key vertical, now contributing roughly 15% of total revenue. Management also showcased new SF6-free technologies (RM Airset) launched at Elecrama, positioning the company as a leader in sustainable and digitalized power distribution.

Operational Resilience and ESG Leadership

Despite a 1.9 point dip in Q4 gross margins due to transactional mix, full-year gross margins improved to 26%. The company also emphasized its strong ESG credentials, ranking among the highest in assessments by ESG Risk and CRISIL. Management remains focused on indigenization to mitigate risks from global trade uncertainties and new technical regulations.

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