Elin Electronics Ltd Q3 FY26 Earnings Analysis

- FY26 revenue guidance: 15% growth to approximately INR 1350 crores; current H1 FY26 at 50% of target. - Potential 3% revenue impact FY26 due to US export tariff uncertainty; hopes to add export projects next 4-6 quarters. - FY27 expected revenues around INR 140 crores from new Rewari plant; INR 250 crores in FY28; plant revenue potential INR 500-600 crores. - Confidence in strong growth momentum for fan segment (especially BLDC ceiling fans); new customers being added. - Personal Care and Home Appliance segments showing robust growth with new product launches; Personal Care up 27% YoY. - Medium appliance category to grow from Bhiwadi facility starting next fiscal; exports to the USA on hold due to tariffs. - Motor manufacturing capacity expansion planned for washing machine motors and BLDC chimney motors. - Aspirations to improve EBITDA margin to 7-7.5% as new plants stabilize.

- FY26 revenue guidance is approximately INR 1,350 crores, targeting 15% growth over FY25, though there is a potential ~3% downside due to stalled exports to the USA (Page 5). - EBITDA margin guidance for FY26 is around 5.5% to 6%, slightly lower than earlier 6%-6.5% guidance mainly due to lower-margin domestic sales replacing higher-margin exports (Page 5). - For FY27, revenue from the new Rewari plant is expected around INR 140 crores, with a steady-state EBITDA margin of 7-7.5%, improving return on capital employed to around 20% (Page 5). - Management expects sustained growth in fan and appliance segments driven by new product launches, customer additions, and ODM expansion (Pages 6, 7). - Operational efficiencies and working capital improvements are expected to support EBITDA margin improvement to 7-7.5% in medium to long term as appliance volumes grow (Page 13). - Uncertainty on export recovery remains a risk for near-term profitability (Page 13).

- Current year CapEx guidance: INR 100 to 110 crores. - INR 60 to 65 crores allocated for Phase one of the new plant at Rewari. - INR 35 to 40 crores for growth of existing businesses and factories. - Rewari factory: - Total project cost estimated at INR 100 crores. - Construction started in July 2025; expected to be operational by March or April 2026. - Expected revenues: around INR 140 crores in FY 27 and INR 250 crores in FY 28. - Revenue potential at steady state: INR 500 to 600 crores. - Expected steady state EBITDA margin: 7-7.5%; ROCE around 20%. - Expansion in medical cartridge capacity by 15-18% underway, with new machinery ordered. - Limited CapEx expected for washing machine category motors (tools, moulds, limited machinery), existing facility space deemed sufficient.

- The transcript does not mention any current or future plans for fundraising through debt or equity. - CapEx for FY26 is planned at INR 100 to 110 crores, funded internally, split between new plant construction at Rewari and growth of existing businesses. - There is no discussion or indication of raising capital via equity or new debt during the call. - The company highlights a strong liquidity position with net cash of INR 94 crores as of September 2025, suggesting internal funding capability. - No explicit comments from management on any planned fundraising activities.

- The company is in the process of getting designs and products approved by customers, especially for air coolers, where there is a slight delay due to the delayed key cooler season. - Three out of four products planned to start production at the Bhiwadi facility are pre-approved and ready. - The fourth product, air coolers, is still awaiting customer agreement and a small initial order before proceeding with investments. - Existing capacity for FHP motors is sufficient, with some capacity diverted for captive use due to increased fan production. - Expansion plans include new ranges like cooler motors, BLDC chimney motors, and potentially washing machine motors. - Discussions with several OEMs for exports (mainly to the USA) are currently on hold due to tariff uncertainties. - Overall, the investment and capacity addition are closely aligned with confirmed customer approvals and market demand.