Prostarm Info Systems Ltd Q1 FY27 Earnings Analysis

- FY27 revenue growth guidance is a minimum of 25% compared to FY26. - Executable order book of approximately INR 430 crores (INR 330 crores order in hand + INR 100 crores channel business) expected to be executed in FY27. - Jhajjar factory capacity utilization expected to be 25-40% in FY27, potentially reaching 70% in FY28. - The new Gujarat UPS factory can generate INR 500-600 crores revenue at full utilization. - Combined operations at full capacity from Jhajjar and Gujarat facilities could yield INR 1,700-1,800 crores revenue, excluding imports. - UPS business expected to grow by over 30%-40% over the next two years due to new plant expansions. - The company aims for sustained EBITDA margin of 12%-13% assisting healthy profitability. - Order book visibility of INR 1,200 crores provides strong medium-term revenue outlook.

- FY27 revenue growth target is minimum 25% compared to FY26, driven by order book and channel business (Page 9-10). - EBITDA margin guidance for Q1 and Q2 is expected in the range of 12% to 13% (Page 19). - PAT margin for Q1 and Q2 is guided between 8.5% to 9.5% (Page 19). - Capacity utilization at Jhajjar facility expected to reach 25%-40% in FY27 and increase to 70% in FY28, supporting revenue growth (Page 13-14). - UPS business expected to grow 30%-40% over the next two years due to expansion including Ahmedabad plant (Page 13). - Operating cash flow expected to turn positive in FY27 (Page 7). - Order execution of INR 430 crores expected mostly within FY27, supporting revenue realization (Page 10, 19). - Base EBITDA margin expected to remain above 10%, with overall EBITDA margin around 12%-13% year-on-year (Page 11, 19).

- Prostarm Info Systems is setting up a 1.20 GWh battery manufacturing facility in Jhajjar, Haryana, expected to become operational by end of Q1 FY27. Capex for this facility is around INR 25 crores. - Expansion project in Gujarat for manufacturing UPS systems (1 kVA to 600 kVA) is progressing, expected operational by Q2 FY27, with capex around INR 5-6 crores. - Previous capex for lithium battery pack assembly line was INR 3.5 to 4 crores. - The capex is relatively low compared to turnover, with high asset turnover ratios (e.g., Jhajjar plant: INR 25 crores capex for potential INR 1000 crores revenue). - Strategic onboarding of salespeople and expansion of employee base to support growth. - No equity dilution planned; working capital and internal accruals expected to fund requirements. - Focus on operational excellence via implementation of SAP B1 and Salesforce platforms to enhance controls and efficiency.

- No equity dilution is currently planned. The management stated they are in a position to meet working capital requirements through bank debt and internal accruals without needing equity dilution. - The company has maintained a strong balance sheet post-IPO, effectively being net debt-free with long-term debt reduced to around INR 80 lakhs in FY26. - Working capital requirements for FY27 (~INR 200 crores) are expected to be met via internal accruals and bank funding. - The company is focusing on managing working capital and operational cash flow to support growth without external equity fundraising.

- As of the end of FY26, Prostarm Info Systems' executable order book stood at approximately INR 1,106 crores. - Additional L1 orders amount to around INR 96 crores, bringing the overall order book to approximately INR 1,202 crores. - Bids aggregating approximately INR 257 crores are currently under evaluation, strengthening medium-term growth visibility. - Management mentioned an order backlog of around INR 430 crores (including channel business) expected to be executed in FY27. - Out of this, INR 336 crores plus INR 100 crores channel business is anticipated to be recognized as revenue. - The BESS developer business order is not included in the INR 430 crores figure and is addressed separately. - The company is also expecting to execute a deferred single order worth INR 40 crores in Q1 due to earlier supply chain disruptions. - Majority of these orders are anticipated to be executed within the current financial year (FY27).