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    Smarten Power Systems Limited

    SMARTEN
    Capital Goods·6 Mar 2026
    Management Summary

    Smarten Power Systems Limited held an investor meeting to discuss its business, strategy, and growth outlook. The company highlighted its integrated manufacturing, diverse product portfolio, and strong distribution network. Key initiatives include a new manufacturing facility in Jhajjar to double capacity and improve margins, and aggressive geographical expansion. While expecting 20-30% revenue growth and 9-10% EBITDA margins for FY27, the company noted its current heavy reliance on lead-acid batteries and geographical sales concentration.

    Highlights

    6

    • Integrated manufacturing of energy storage and power backup solutions with a diverse portfolio of over 370 products.

    • Strong distribution network across 23 states, 2 UTs, and exports to 17+ international markets.

    • Expanding manufacturing footprint with a new facility in Jhajjar, Haryana, expected to significantly increase production capacity and operational efficiency.

    • Entry into battery manufacturing for backward integration, improving margins, supply chain reliability, and quality control.

    • Well-positioned to benefit from global energy transition trends due to integrated product ecosystem and in-house R&D capabilities.

    • Expected 20-30% minimum revenue growth for FY27 and 9-10% EBITDA margins due to operational efficiencies.

    Concerns

    3

    • Heavy reliance on lead-acid batteries, contributing 90% of current revenue, despite electronics being compatible with lithium-ion.

    • Significant geographical concentration, with 80% of domestic sales revenue currently coming from Haryana and Uttar Pradesh.

    • New facility benefits (PLI, state benefits) are described as 'small', indicating limited external incentives.

    Key financials

    Single quarter

    01 metrics
    1. 01Revenue (Qualitative)₹200 Cr

    Segment breakdown

    Electronics (Solar Inverters, Charge Controllers)
    60% Revenue Share
    Batteries
    30% Revenue Share
    Solar Panels
    10% Revenue Share
    List

    Order Book

    high confidence

    Inflow this qtr

    ₹ 5,000 pieces

    Pipeline

    L1 awaiting loa

    Inquiries for repeat orders

    "The company has started participating in government tenders and successfully delivered a 5000-piece order, with significant inquiries for repeat orders."

    Source:
    Q&A

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Guidance & targets

    4
    CategoryTargetPriority
    Revenue
    Minimum Revenue Growth
    20-30%
    		High
    Profitability
    EBITDA Margin
    9-10%
    		High
    Capacity
    Electronics Production Capacity (Single Shift)
    1200 units per day
    		High
    Cost Savings
    Monthly Rent Savings
    ₹20 lakhs
    		High

    What to watch in Q4 FY26

    4

    Jhajjar facility partial commissioning

    Within 3-4 months (next quarter)
    CurrentCivil work 100% complete, fire safety/electrical ongoing.
    TargetPartial 25% production capacity operational.

    Why it matters

    Indicates progress on capacity expansion, which is a key driver for future revenue growth and operational efficiency.

    In the next three to four months, we will shift some partial 25% production capacity to the introductory level there.

    Risks & concerns

    3
    RiskSeverity

    Heavy reliance on lead-acid batteries

    90% of revenue from lead-acid, while lithium-ion adoption is growing, though electronics are compatible and assembly is easier. — Analyst acknowledged

    medium

    Geographical concentration of sales

    80% of domestic sales from Haryana and UP, requiring aggressive expansion into other states for sustained growth. — Management acknowledged

    medium

    Limited benefits from new facility incentives

    PLI and state benefits for the new factory are described as 'small', implying less financial incentive than potentially expected. — Management acknowledged

    low

    Q&A highlights

    8

    “So our 60% revenues come from electronics, like solar inverters, charge controllers. And around 30% revenue comes from batteries. And about 10% revenues come from solar panels. ... our battery manufacturing is in-house. And inverters, solar inverters, everything we do in-house—everything, design, development, production, assembly, everything like bill of material, control, everything is in-house. And solar panel, we are buying from outside.”

    Clarifies the company's core business, revenue mix, and in-house vs. outsourced manufacturing strategy for different product categories.

    asked by Patel Pahel

    2 min read5 chapters

    Detailed Narrative

    01

    Company Overview and Product Portfolio

    Smarten Power Systems Limited, established in 2014, is an integrated manufacturer of energy storage and power backup solutions. The company offers a diverse portfolio of over 370 products, including solar inverters, UPS systems, batteries, solar charge controllers, and solar panels, catering to residential, commercial, and solar energy applications. Its core business, electronics manufacturing, contributes 60% of revenue, followed by batteries at 30%, and solar panels at 10%.

    02

    Manufacturing and R&D Strategy

    Smarten employs an asset-light manufacturing model for its electronics, outsourcing PCB assembly, injection molding, and sheet metal work while retaining in-house design, final assembly, quality control, and after-sales service. This strategy minimizes machinery investment, with approximately ₹1 crore for inverter assembly and ₹7.5 crores for battery manufacturing. The company emphasizes its strong in-house R&D, which ensures 100% control over bill of materials, rapid issue resolution, and quick development of new technologies, supported by promoters with 20-30+ years of R&D experience.

    03

    Capacity Expansion and Operational Efficiency

    The company is expanding its manufacturing footprint with a new facility in Jhajjar, Haryana, where civil work is 100% complete. This expansion is expected to double production capacity for electronics items on a single shift, from 600 units/day to 1200 units/day. A partial 25% production shift is planned within 3-4 months, with parallel operations for about a year. This move to an owned facility will also eliminate approximately ₹20 lakhs per month in rent, contributing to an expected EBITDA margin of 9-10% for the next fiscal year.

    04

    Market Strategy and Growth Outlook

    Smarten aims for a minimum revenue growth of 20-30% in the next fiscal year (FY27), driven by enhanced manufacturing capabilities and aggressive geographical expansion. Currently, 80% of domestic sales originate from Haryana and Uttar Pradesh, and the company is actively working to expand its presence in other states. Additionally, Smarten has begun participating in government tenders, having delivered a 5,000-piece order for Odisha and receiving inquiries for another 10,000-15,000 units, signaling a new channel for large, repeat orders.

    05

    Battery Technology and Market Dynamics

    While the company's electronics are 100% compatible with both lead-acid and lithium-ion batteries, approximately 90% of current revenue comes from lead-acid solutions. This is attributed to their lower price, end-of-life resale value, and recent GST regime changes that made lead-acid more competitive. However, Smarten notes that lithium-ion battery assembly is less complex than lead-acid manufacturing, positioning the company to adapt easily if demand for lithium-ion increases, as cells are sourced externally.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.