Advait Energy Transitions Limited Q4 FY26 Earnings Analysis

- Advait Energy Transitions Limited expects approximately 40% to 45% revenue growth in FY 2026. - The company foresees sustained growth driven by diversified order book over INR 1,000 crores and strong tender pipeline of similar size. - Growth is primarily driven by the PTS division, DISCOM EPC business, ERS, stringing tools, solar EPC, and NRE division. - New Energy segment revenues anticipated to reach around INR 200 crores by FY 2027-28. - Electrolyzer manufacturing capacity targets 100 MW by end FY 2027, scaling up to 300 MW and potentially gigawatt-scale in coming years. - BESS manufacturing capacity planned at 2.5 GW by Q3 FY 2026, supporting future volume growth. - Expected continuous increase in NRE division order mix by 5% to 10% annually. - Full-scale revenue from new energy initiatives expected by FY 2029–30. - The multi-integrated giga-factory targeted for full commercialization by mid-2028, fueling future growth.

- Company targets ~40%-45% revenue growth in 2026 and expects to sustain strong growth momentum in coming quarters. - For FY 2027-28, New & Renewable Energy (NRE) division revenue expected around INR 200 crores, with further growth beyond. - Manufacturing divisions aim for a Return on Capital Employed (ROCE) of 25%-30%; EPC projects expect 15%-25% ROCE; development projects expect 12%-15% ROCE. - EBITDA margins targeted to be maintained at current or better levels over the mid-term (2-3 years), with possible slight changes during new business development. - EBITDA for Standalone in Q3FY26 was 16.92%; consolidated at 11.45%, with optimism to maintain or improve margins. - Capex of INR 180-200 crores planned for electrolyzer and Battery Energy Storage Systems (BESS) with phased expansions to support growth. - New initiatives expected to contribute to earnings progressively from FY 2027 onwards, with two to three years needed to fully reflect margins in P&L.

- PTS division capex: INR 100 crores funded through internal accruals and existing funds (debt and equity). - Electrolyzer and BESS facility capex under Advait Green Energy Limited (AGPL): INR 180-200 crores total. - Fundraising: Around INR 90-100 crores planned to support electrolyzer and BESS expansion. - Electrolyzer manufacturing plant: - Phase 1: 30 MW capacity aimed to be live by March 15, 2026. - Full-fledged 100 MW capacity by March 2027. - Future scaling to 300 MW and eventually up to 1 gigawatt planned. - Capex incurred: - Approximately INR 60 crores spent in the first nine months of the current financial year. - Additional INR 50 crores expected in Q4, totaling around INR 110 crores by FY26-end. - Expansion of BESS assembly plant: Targeting 2.5 gigawatt capacity ready by Q3 of the current year.

- The company plans a fundraising of about INR 90 to 100 crores for its subsidiary (AGPL) to support expansion of electrolyzer and BESS manufacturing facilities, targeted within the next 2-3 months. - For the PTS division capex of INR 100 crores, funding will be managed internally through internal accruals and existing funds (debt and equity). - The fundraising for the electrolyzer and BESS facility (INR 180-200 crores capex) will involve raising approximately INR 90-100 crores alongside debt. - This recent fundraise is for Phase 1 capacity (100-125 MW electrolyzer manufacturing), with future scalability planned largely from the existing setup, requiring only smaller incremental investments. - The company is open to small investors and financial support, indicating potential minor divestments but no large-scale equity dilution announced yet.

- As of Q3FY26, Advait Energy Transitions Limited has a diversified order book worth over INR 1,000 crores with a strong tender pipeline of similar size, primarily driven by the PTS division. - Approximately 75% of the current order book is expected to be executed in the next financial year (FY27). - The company is selectively building quality orders in the New and Renewable Energy (NRE) division, expecting similar order flows in Q4FY26 and Q1FY27. - Key large orders include an EPC order of INR 216 crores from PGVCL, with revenue starting from Q4FY26. - The focus remains on profitable growth with improved order mix and margins. - The management is confident of sustained order inflow and expanding capabilities, supported by ongoing capex to enhance manufacturing and EPC capacity.