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Viviana Power Tech Limited — Q2 FY26 earnings call

Call held 4 Dec 2025

Management summary

Viviana Power Tech Limited reported a strong H1 and Q2 FY26, marked by significant revenue and EBITDA growth. The company successfully entered the BESS market, securing two major projects contributing approximately INR 500 crores to its order book, which now stands at over INR 1,400 crores. Management expressed confidence in exceeding FY26 execution targets and outlined plans for mainboard migration and continued growth, despite some analyst concerns regarding BESS project profitability.

Highlights

Q2 FY26 Revenue from operations of INR 5,894.43 lakhs, reflecting 41% year-on-year growth.
Q2 FY26 EBITDA stood at INR 1,122.94 lakhs, registering 80% year-on-year growth.
Q2 FY26 EBITDA margin improved to 19.05%, expanding by 420 basis points year-on-year.
H1 FY26 Revenue from operations of INR 9,062.85 lakhs, which is 88% year-on-year growth.
Total consolidated order book now exceeds more than INR1,400 crores, offering strong revenue visibility.

Concerns

Analyst concern regarding the profitability and Internal Rate of Return (IRR) of the BESS projects given the capital deployed.
Analyst concern about potential capital misallocation towards the BESS segment.

Key financials

2 periods

Q2 FY26

Revenue
₹5,894.43 lakh
YoY +41%
EBITDA
₹1,122.94 lakh
YoY +80%
EBITDA Margin
19.1%
Net Profit
₹558.95 lakh
YoY +40%
EPS
₹10.47
YoY +58.4%

H1

FY26 Revenue
₹9,062.85 lakh
YoY +88%
FY26 EBITDA
₹1,768.68 lakh
YoY +136%
FY26 EBITDA Margin
19.5%
FY26 Net Profit
₹892 lakh
YoY +101%
FY26 EPS
₹15.14
YoY +106%

What they filed

Q1 FY27: revenue up 128.5%, net profit up 84.1% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	42	36	135	32	59 +41%	118 +226%	323 +140%	72 +129%
Expenses	36	30	116	25	48	104	279	61
EBITDA	6	6	19	6	11 +80%	14 +137%	44 +136%	11 +76%
Margin	15%	16%	14%	20%	19%	12%	14%	16%
Other income	0	0	1	0	0	1	4	1
Interest	1	1	1	2	3	2	3	4
Depreciation	0	0	0	0	0	0	0	0
Profit before tax	5	5	18	5	8 +58%	12 +168%	45 +147%	8 +67%
Tax rate	25%	26%	30%	37%	25%	39%	19%	28%
Net profit	4	3	12	3	6 +40%	8 +130%	36 +204%	6 +84%
EPS	3.98	3.44	11.85	3.27	5.51	7.81	35.55	5.95

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

Share of Order Book

₹1,400 Cr Total

Power Distribution ₹850 Cr 60.7%
BESS ₹400 Cr 28.6%
Power Transmission ₹150 Cr 10.7%

Order book

high confidence

Total value

₹1,400 Cr

as of 2025-09-30 quantified

Inflow this quarter

₹700 Cr

Execution

It varies from nine months to two years.

Composition

Mix 3 segments

BESS 28.6%
Power Transmission Lines 10.7%
Power Distribution Lines 60.7%

Share of order book by segment

Pipeline

qualified rfp

Expecting to add new orders by end of March

The total consolidated order book exceeds INR 1,400 crores, providing strong revenue visibility for coming quarters, with significant new orders received in the last quarter.

Source: Prepared remarks

Capital allocation

high confidence

Capex ₹300 Cr
- BESS projects ₹300 Cr
Coming to the capex part, approximately INR 300 crores would be the capex.
Debt Debt disclosed
- New borrowing Loan for BESS project, with 75-80% of capex funded by loan. ₹180 Cr
around 75% to 80% would be in terms of some loan and this we have to infuse... The loan would be approximately INR 180 crores and we will be getting the viability gap funding also, subsidy also.
Liquidity Undrawn ₹250 Cr Working capital limit expected to increase to over INR 250 crores, with a rotation of 2.5x to 3x annually.

at present it is more than INR 150 crores and we are getting the sanctions from one bank. So, it would be INR 250 crores plus by next week... In a year, at least 2.5x, 3x we can rotate.

Guidance & targets

Order Inflow

New Order Inflow Order Inflow · by end of March (FY26) · High confidence INR 350-400 crores

We are expecting to add around INR 350 crores to INR 400 crores by end of March.

— Richi Choksi
New Order Inflow Order Inflow · FY27 · High confidence INR 500-600 crores

So, we are targeting at least INR 500 crores to INR 600 crores just to meet our next year's.

— Richi Choksi

Revenue

Top Line Revenue · Q3 FY26 · High confidence more than INR 100 crores

particularly in Q3, we will be having the top line of more than INR 100 crores

— Richi Choksi
Top Line Revenue · Q4 FY26 · High confidence around INR 350 crores

And for Q4, it will be around INR 350 crores.

— Richi Choksi
Top Line Revenue · FY28 · High confidence INR 1300 crores plus

So far, we are making yourself ready for FY '2028. We have given the target of INR 1300 crores plus.

— Richi Choksi

Net Profit

PAT Net Profit · FY27 · High confidence INR 80-100 crores

And next year, based on your projection and your comfort level in achieving FY'27 guidance, we might have around INR 80-INR 100 crores kind of PAT in FY'27.

— Rajesh Singla

BESS Project

IRR BESS Project · BESS project life · Medium confidence two digits

And coming to the margins, the IRR would be in two digits.

— Richi Choksi
EBITDA Margin BESS Project · BESS project life · Medium confidence 80%

It would be around EBITDA around; it would be 80%.

— Management

Working Capital

Rotation Working Capital · annually · High confidence 2.5x, 3x

In a year, at least 2.5x, 3x we can rotate.

— Richi Choksi

What to watch in Q3 FY26

BESS Project Financial Viability Details

Next financial year (FY27)

Current Management stated IRR in double digits, 80% EBITDA margin, 12% PAT margin, but analysts expressed skepticism.

Target Detailed financial viability report for BESS projects.

Why it matters

Addresses investor concerns about capital misallocation and profitability of new BESS ventures, crucial for future investment decisions.

the equity or any fund which will be infusing would be in next financial year. And we have that viability, we will be sharing that also in our next investor presentation. Once we complete our procurement order and closure. So, we will be sharing in our next investment presentation that, how it is viable and how we will get money from BESS project.

Risks & concerns

BESS Project Profitability and Capital Misallocation
medium

Analysts expressed skepticism about the profitability and IRR of BESS projects given the capital deployed, raising concerns about potential capital misallocation. Management promised a detailed viability report.

Analyst acknowledged

Q&A highlights

7 direct

BESS Project Profitability and IRR Partial

Particularly in BESS model, the salvage value of the material is very high, because the transformers will be used, the switchgears would be there. So, salvage value, if we consider, so it would be much higher. So, with that, even after 12 years, if we consider the profitability will be much higher.

Analysts questioned the low perceived profitability of BESS projects, prompting management to clarify on salvage value and future disclosures on viability.

Asked by Deepanshu Bhatia

Receivables from Punjab Direct

No, they have improved the credit rating also. So, we are not facing any issue along with Punjab.

Addressed concerns about potential issues with receivables from the Punjab utility, confirming improved credit rating and no current problems.

Asked by Agastya Dave

Transformer Industry Overcapacity Direct

It looks like a scarcity, particularly in transformers globally, because our first order is to supply more than 3,000 transformers to Gujarat utilities... for four to five years, there won't be any oversupply in transformer industries.

Provided clarity on the market dynamics for transformers, indicating a scarcity rather than overcapacity, which is positive for the company's manufacturing subsidiary.

Asked by Kaushal Sharma

Mainboard Migration Progress Direct

Yes. The first step was to make the equity. So, we have issued the bonus mainly to migrate on mainboard and we have applied and working along with our merchant banker. So, soon we will be on mainboard. We have started the process.

Confirmed active steps towards mainboard migration, including a bonus issue, which is a key strategic move for the company.

Asked by Rajesh Singla

Slowdown in T&D Project Awards Direct

So, we are not seeing any slowdown, because continuously INR 1,000 crores of tenders are there, which are open for the bidding. In almost all the DISCOMs, as well as Transcom, India is still a transmission deficient country.

Reassured investors that there is no slowdown in T&D project awards, citing a continuous pipeline of tenders and India's transmission deficit.

Asked by Ankur Aggarwal

Competitive Intensity and Margins Direct

Particularly, coming to the competition, we are bidding at our comfortable rates. So, we try to bid more projects as our conversion ratio is not more than 40%-50%.

Addressed concerns about rising competitive intensity by stating the company maintains comfortable bidding rates and a healthy conversion ratio, implying margin protection.

Asked by Ankur Aggarwal

BESS Asset Sale and Salvage Value Direct

So, particularly in BESS, it is on BOO model, build, own, and operate. The asset would be ours only. We do not need to transfer the asset to utility. So, after completion of 12 years, we will be getting the salvage value, which would be the considerable amount.

Clarified the BOO model for BESS projects and the expectation of considerable salvage value after 12 years, which impacts the overall project economics.

Asked by Deepanshu Bhatia

Capital Misallocation to BESS Direct

the equity or any fund which will be infusing would be in next financial year. And we have that viability, we will be sharing that also in our next investor presentation. Once we complete our procurement order and closure. So, we will be sharing in our next investment presentation that, how it is viable and how we will get money from BESS project.

Management committed to providing a detailed viability report for BESS projects in the next investor presentation to address concerns about capital misallocation.

Asked by Bala Sai Duth

2 min read 6 chapters

Detailed narrative

Strong H1 and Q2 FY26 Financial Performance

Viviana Power Tech Limited delivered robust financial results for H1 and Q2 FY26. Q2 FY26 revenue from operations grew 41% year-on-year to INR 5,894.43 lakhs, with EBITDA increasing 80% year-on-year to INR 1,122.94 lakhs. The EBITDA margin expanded by 420 basis points to 19.05%. For H1 FY26, revenue surged 88% year-on-year to INR 9,062.85 lakhs, and net profit grew 101% year-on-year to INR 892 lakhs, reflecting strong execution and operational efficiency.

Strategic Entry into BESS Market

The company made a strategic entry into the Battery Energy Storage System (BESS) market, securing two major projects in H1 FY26, contributing approximately INR 500 crores to the order inflow. These projects, one in Rajasthan and another from the Gujarat government, position Viviana as an early player in India's expanding energy storage market. The BESS projects are expected to have an 18-month execution timeline and an IRR in double digits, with an estimated EBITDA margin of around 80%.

Robust Order Book and Pipeline

Viviana's consolidated order book now exceeds INR 1,400 crores, providing strong revenue visibility. The order book composition includes INR 400 crores from BESS, INR 150 crores from power transmission lines, and INR 850 crores from power distribution. The company received over INR 700 crores in orders in the last quarter alone and targets adding INR 350-400 crores by March 2026, with an FY27 order inflow target of INR 500-600 crores.

Enhanced Working Capital and Mainboard Migration

To support its accelerated execution pace, the company is enhancing its working capital limits, expecting to secure over INR 250 crores by next week, up from INR 150 crores. Management anticipates a working capital rotation of 2.5x to 3x annually. Furthermore, Viviana is actively pursuing migration to the mainboard, having issued bonus shares and initiated the application process with its merchant banker.

Outlook and Growth Strategy

Viviana is confident in exceeding its FY26 execution targets, with Q3 FY26 revenue projected to exceed INR 100 crores and Q4 FY26 revenue around INR 350 crores. The company aims for a PAT of INR 80-100 crores in FY27 and a revenue target of over INR 1,300 crores by FY28. Management emphasized that their core business remains power transmission and distribution, which will continue to be a key growth driver for at least a decade.

Transformer Manufacturing and Market Dynamics

The company's manufacturing subsidiary, Aarsh Transformers Private Limited, is progressing well with capacity expansion. Viviana currently manufactures distribution transformers up to 500 kVA and plans to develop power transformers up to 33 kVA. Management noted a global scarcity in transformers, particularly for the next four to five years, ensuring no oversupply in the industry.

This is an AI-generated summary of a publicly available earnings call transcript.

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