Prostarm Info Systems Ltd Q1 FY27 Earnings Analysis

- FY27 revenue growth guidance of minimum 25% compared to FY26. - Order book strong with INR 1,200 crores executable orders, providing solid revenue visibility. - New Jhajjar facility targeted to achieve 25%-40% capacity utilization in FY27, expected to reach 70% next year. - Expansion in Gujarat UPS facility expected to boost UPS business growth by 30%-40% over next two years. - Broadening manufacturing capabilities, including localized assembly, to increase factory utilization. - Continuous addition of large orders and channel business (~INR 100 crores) to sustain growth. - Anticipated improved project execution in Bihar and potential execution in Karnataka. - Confidence in medium- to long-term growth driven by stable order pipeline and expanding capacities.

- Prostarm Info Systems expects a minimum revenue growth of 25% for FY27 compared to FY26. - EBITDA margin guidance for Q1 and Q2 is targeted in the range of 12% to 13%. - PAT margin guidance for Q1 and Q2 is targeted between 8.5% and 9.5%. - The company aims to operate its new Jhajjar BESS facility at 25%-40% capacity utilization in FY27, expecting to increase to 70% the following year. - UPS business growth is anticipated to be strong, potentially 30%-40% over the next two years. - Cash flow positive status is expected for FY27 overall. - Long-term operational efficiencies and profitability are expected to improve following investments in employee strength and manufacturing capacity. - EBITDA margin may experience short-term fluctuations due to project mix and supply chain factors but is expected to maintain the 12%-13% range annually.

- Prostarm Info Systems is undertaking capital expenditure to enhance manufacturing capabilities. - A 1.20 GWh battery manufacturing facility in Jhajjar, Haryana is nearing commissioning, expected to be operational by end of Q1 FY27. Estimated capex ~INR 25 crores. This will boost large-scale energy storage production. - Expansion of the Gujarat UPS manufacturing plant (1 kVA to 600 kVA) is ongoing, expected operational by Q2 FY27. Capex ~INR 5-6 crores, focusing on assembly and increasing factory capacity utilization. - Prior expansions, such as Pune and lithium battery pack lines, involved relatively low capex (~INR 3.5 to 4 crores for lithium expansion). - The company plans strategic investments in talent acquisition via ESOPs, with a pool of 40 lakh shares and ongoing issuances. - No current plans for equity dilution; working capital funded through bank sources and internal accruals. - The focus is on expanding manufacturing, increasing revenue capacity to ~INR 1,700-1,800 crores at full utilization.

- No equity dilution is currently planned; company expects to meet working capital needs through bank sources and internal accruals. - Management confirmed no equity dilution has occurred so far, with promoter holding around 73%. - Working capital requirement for FY27 (~INR 200 crores) is expected to be met by internal accruals and debt. - The company is effectively net debt-free currently, with long-term debt reduced significantly. - No mention of any new debt fundraising in the near term; financial flexibility is strong due to strengthened post-IPO balance sheet and liquidity buffer (fixed deposits over INR 102 crores).

- Executable order book as of end FY26: approximately INR 1,106 crores - Additional L1 orders under evaluation: around INR 96 crores - Total order book including L1 orders: approximately INR 1,202 crores - Bids currently under evaluation: aggregating INR 257 crores - Order in hand excluding BESS developer business: INR 430 crores - Channel business orders (regular base business): around INR 100 crores minimum - The company expects to execute most of the INR 430 crores order in the current financial year, except the BESS developer model which has a rental component (~INR 63 crores per year) - Delayed order from Adani (~INR 40 crores) postponed from Q4 to Q1 FY27, impacting recent quarter revenue - Strong visibility and healthy order pipeline support medium to long-term growth prospects