Remsons Industries Ltd Q4 FY26 Earnings Analysis

- Remsons targets consolidated revenue of INR 900 to 1,000 crores by FY 2029-2030. - Revenue CAGR expected to be 20%+ leading up to FY 2029. - FY 2027 revenue guidance is INR 520-570 crores, excluding acquisitions. - Legacy business expected to contribute ~60% and new-age businesses ~40% of revenue by FY 2029-30. - Growth supported by major orders including INR 60 crore CV order (5-year tenure starting FY 2027) and INR 12 crore BEE Lighting order. - Expansion into new verticals like railways and electric mobility to add incremental revenue streams. - Organic growth expected to drive INR 800-850 crores of revenues; INR 150-200 crores expected from acquisitions. - Incremental capex of around INR 100 crores planned to support growth, including inorganic investments. - Export and domestic sales both expected to grow, maintaining roughly 40-60 ratio. - Railway business expected to reach INR 150 crores revenue over 3-4 years.

- Remsons targets consolidated revenue between INR520 crores to INR570 crores for FY 2027. - EBITDA margins are expected to steadily improve, aiming for 13% to 14% over the next 2-3 years. - Profit after tax margins for Q3 FY 2026 stood at approximately 4%, with steady improvement anticipated. - The company aims to achieve INR900 to INR1,000 crores in revenue by FY 2029-2030. - Approximately 60% of revenue by then will come from legacy business, 40% from new-age business, with product mix changes boosting margins. - Earnings growth is supported by expansions into railways, electric mobility, lighting, and exports. - Remsons plans to maintain a net debt-to-equity ratio between 0.6x to 0.8x, supporting disciplined financial growth. - Overall, Remsons is confident of delivering a 20%+ CAGR in revenues with improving profitability and sustainable value creation.

- Current year Capex: INR15-19 crores done, with an additional INR5-7 crores planned to complete the year. - Next year Capex guidance: Approximately INR20 crores plus. - Expansion Capex for NCR facility: Around INR3-4 crores. - Future Capex for revenue target of INR900 crores to INR1,000 crores by FY 2029 includes INR100 crores total investment, encompassing both organic and inorganic (acquisition) investments. - Acquisition funding: Evaluating options including part equity and part debt, with INR50-70 crores earmarked for acquisitions. - Capex and acquisitions aimed at capacity augmentation, new product launches, forward integration into more value-added system supplies, and entry into new geographies like Brazil. - Plan to maintain net debt-to-equity ratio between 0.6 to 0.8 going forward.

- The company is evaluating all options for funding an acquisition, including part equity and part debt. - No firm timeline for the acquisition funding; it could happen anytime this year, next year, or later, depending on opportunity and market conditions. - Plans to keep the debt-equity ratio between 0.6 and 0.8 going forward to manage leverage. - Capex for expansion is planned around INR100 crores, which includes both organic growth and inorganic acquisitions. - No large leveraging of the balance sheet is anticipated; various capital-raising methods are being considered to maintain financial stability.

- Current order book stands at approximately INR 500 crores. - The order pipeline (potential orders expected) is around INR 800 to 900 crores over the next 2 to 3 years. - For the immediate next period, the pipeline figure is also mentioned as INR 500 crores. - The industry operates on a schedule basis with yearly renewals and ongoing order wins, making exact figures dynamic. - The company maintains a diversified order base including domestic and international customers.