Powerica Ltd Q1 FY27 Earnings Analysis

- Targeting organic growth of about 11-12% in DG Sets business for FY27. - Strong order book in data center DG Sets with 9-12 months visibility; data center DG contribution was 12% in FY26 and expected to increase. - High-voltage DG Sets (high horsepower) account for over 50% of Cummins business value, with a healthy pipeline. - Key growth drivers: manufacturing, realty sectors, increased rental market activity, and data centers. - Platino automotive retrofit emission devices business expected to grow faster than DG sets, supported by state mandates. - Wind portfolio growth driven by expanding IPP capacity and EPC projects; wind to form 20-25% of revenue in 4-5 years. - Exploring new avenues like DG backup for EV charging stations. - Overall, targeting double-digit top-line growth in FY27.

- Powerica targets organic DG set business growth of about 11%-12% in FY27, driven by data centers, manufacturing, realty, and rental market expansion. - The Platino automotive business is expected to grow faster than DG sets, supported by emission regulation mandates, accelerating revenue and profits. - Renewable power segment, especially wind IPP and EPC, will grow steadily, shifting revenue mix towards approximately 75% DG sets and 25% renewable power in the coming years. - Wind IPP EBITDA margins stable around 82%-88% post first-year operation, supporting profitability. - Post IPO, debt repayment reduces finance costs, enhancing PAT margins from Q1 FY27. - Capex of ~50 MW planned in FY27 may increase depreciation but supports capacity growth. - Data center DG sets contribution (12% in FY26) expected to increase with a strong order book and rising inquiries. - Overall, double-digit top-line growth and margin improvement anticipated through diversified portfolio and operational efficiency.

- FY27 capex expected to include capitalization of an additional 50 megawatts, potentially leading to higher depreciation (Ritesh Agrawal, Page 13). - No capex needed for the MSLG service order in Australia; it is service-based (Ritesh Agrawal, Page 13). - The company is actively constructing 52.7 MW wind power project, increasing IPP portfolio to 384 MW (Pradeep Gupta, Page 8). - Additional bids secured for 100 MW with GUVNL, and 50 MW under advanced planning (Pradeep Gupta, Page 8). - Company aiming to scale IPP portfolio including wind and WSH projects by 2030, subject to RE Park land allotment (Pradeep Gupta, Page 8). - Evaluating hybrid wind, solar, and battery energy storage system opportunities within IPP portfolio (Pradeep Gupta, Page 8). - Continued investment in marketing infrastructure for Platino automotive retrofit emission devices to accelerate growth (Jai Ram Oberoi, Page 12).

- The transcript does not mention any current or planned fundraising through debt or equity. - The company has repaid existing debt of INR 525 crores in Q1 FY27 following its IPO. - As of May 26, 2026, Powerica holds approximately INR 450 crores in cash and investments. - Substantial reduction in finance costs is expected in Q1 FY27 due to debt repayment, which will enhance PAT margin. - No announcements or discussions regarding new debt or equity fundraising were disclosed during the call.

- Powerica has an order pipeline of approximately 585 MW currently under execution. - 175 MW orders are being executed in Gujarat, expected to be completed by December 2026. - 410 MW orders are underway in Maharashtra for Torrent Power. - The company has a six to seven-month healthy order book pipeline in the DG sets business. - For data centers specifically, there is a strong order book visibility of 9 months to about a year. - The Australia project for MSLG is 90% to 95% complete, with ongoing service orders for operation and maintenance. - Future capex includes plans to capitalize an additional 50 MW in FY27. - Wind IPP projects under construction include 52.7 MW, targeting a portfolio of 384 MW at completion. - Additional secured bids include 100 MW with GUVNL and 50 MW at an advanced planning stage. This reflects strong current execution with robust future order visibility.