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.