SMARTEN

Smarten Power Systems aims to transform into a trusted mass-market consumer electronics brand for batteries, inverters, and distributed solar energy solutions, targeting both India and emerging global markets like Africa, Asia, and the Middle East. The company currently offers around 372 SKUs across five major product categories, supported by over 500 global distributors and a presence in 23 Indian states and two union territories, with exports to 17+ countries. The core business focuses on solar power generating systems, comprising electronics, batteries, and traded solar panels.

For the first half of fiscal year 2026 (H1 FY26), Smarten Power Systems reported a revenue of INR 115 crores, demonstrating growth from INR 108 crores in H1 FY25. The company's profit for H1 FY26 was recorded at INR 5.88 crores. Current EBITDA margins are approximately 5.6-6%, with management targeting an improvement to 9-10% for the next fiscal year, driven by strategic initiatives.

Smarten is undertaking significant capacity expansion, with a new company-owned manufacturing facility in Jhajjar district, Reliance MET, expected to be operational by March 2026. This facility is projected to more than double the existing electronics manufacturing capacity. Additionally, the company recently acquired the Su-Urja plant for battery manufacturing using IPO funds, which is anticipated to enhance quality control and improve profit margins through backward integration. The new inverter capacity is expected to be effective from Q1 FY27.

The company's product portfolio includes home UPS and inverters, solar charge controllers, standalone PWM and MPPT-based charge controllers, solar PCUs, on-grid solar inverters, and various battery types (lead-acid tubular, SMA, lithium-ion). Smarten is actively developing hybrid inverters, which are expected to be ready for market launch in the first half of 2027, following a 3-4 month validation and certification process. The company emphasizes its R&D capabilities, having been early in introducing innovations like inverter compatibility with lithium batteries.

Currently, 80% of Smarten's domestic sales revenue originates from Haryana and half of Uttar Pradesh. The company is strategically expanding its footprint to other states, including South India, Northeast, Punjab, and J&K, through a phased approach. This expansion is supported by a wide and deep distribution network and technology-enabled customer service, including a centralized customer delight center and WhatsApp-based complaint resolution, ensuring 24-hour service availability.

Smarten has entered into an agreement to become an authorized channel partner for Exide Europe in India. This partnership focuses on the project and tender-based business, targeting large corporate clients, telecom companies, defense, and data centers, rather than the traditional distribution channel. Management is targeting INR 15-20 crores in revenue from this new venture in its first year, acknowledging it as a new business segment for the company.

Management acknowledges the presence of established players like Luminous and Microtek but asserts that Smarten has a proven business model and technological edge. They claim to be a leader in the solar segment in Haryana compared to competitors. The company's core competency in electronics and unique product features are highlighted as key differentiators in the market. They also noted that the lead-acid battery market is not going anywhere in the next 5-7 years, despite the rise of lithium-ion, especially for household applications where price is a constraint.

An analyst raised concerns regarding Smarten's customer service responsiveness, citing feedback about unaddressed queries and lack of communication. Management acknowledged this feedback, stating they would take it positively and commit to improving their service delivery. This highlights an area of focus for the company to enhance its customer engagement and support infrastructure.