Supreme Power Equipment Ltd Q4 FY26 Earnings Analysis

- FY 2026 revenue target is INR180 to INR200 crores, with confidence to achieve INR70-80 crores in Q4 alone. - FY 2027 expected revenue is above INR300 crores, reflecting significant growth over current year. - FY 2028 revenue expected to reach INR400 to INR500 crores, supported by capacity utilization and strong order book. - New plant capacity expected to handle INR600 to INR650 crores; existing plant INR100 to INR110 crores, totaling about INR700 crores max. - Order pipeline of INR700 to INR800 crores currently, with continuous inflow month-on-month. - Demand outlook remains strong for next 5 to 10 years, driven by infrastructure growth and power sector expansion. - Expansion plans are underway to acquire new land for further capacity increase within 2-3 years. - Growth fueled by diversification into new regions (e.g., Karnataka, Kerala), targeting balanced geographic mix. - Manpower recruitment is a current focus to support scaling production volumes.

- The company expects revenue for FY '27 to exceed INR 300 crores, up from around INR 180 crores in FY '26. - Order pipeline stands strong at INR 700-800 crores, supporting ongoing growth. - EBITDA and net profit margins are expected to maintain between 10% to 12%, with potential slight improvement (1-2%) from larger transformer manufacturing in the new plant. - Capacity utilization is set to improve as the new facility becomes fully operational over the next 2-3 years, enabling revenue growth towards INR 450-500 crores by FY '28. - EPS growth follows top-line growth, with 9-month FY '26 EPS up 23.67% YoY; continued margin stability should support EPS expansion. - Working capital management improvements reduce risk and support scaling. - Long-term demand outlook for 5-10 years remains strong, driven by infrastructure growth and government investments, supporting sustainable earnings growth.

- The new production facility is a significant capital investment, with over INR95 crores to INR100 crores spent. - The new plant is about 95% complete, with only minor interior and admin building work remaining, expected to be fully operational by Q4 FY '26. - The company plans further expansion beyond the current 6-acre facility but will require acquiring additional land due to full utilization. - Management is actively considering land acquisition for bigger capacity, likely within the next quarter, though land costs in Chennai are high. - No current plans for equity dilution; growth will be managed through increased bank borrowings for working capital. - Strategic focus on expanding capacity to meet anticipated strong demand over the next 5-10 years.

- Supreme Power Equipment Limited currently plans to manage growth and working capital needs primarily through bank borrowings (debt). - No plans for equity dilution have been made at this point to fund expansion. - The company is comfortable with existing and increased bank working capital facilities to support revenue growth up to INR300 crores in the near term. - For further capacity expansion beyond the current new plant, the company is considering acquiring new land, but no specific fundraising method (debt or equity) has been indicated yet. - Overall, growth financing is expected to be managed through debt, with no immediate equity fundraising planned.

- Current order book is approximately INR 300 crores (mentioned multiple times by Vee Rajmohan). - Order pipeline is around INR 700 crores to INR 800 crores. - Out of the pipeline, expected conversion/confidence is about 10% to 20%. - Government orders constitute about 30%-35% of the order book; private orders make up the balance. - Order book split by geography: around 40% Tamil Nadu, 30%-40% Karnataka, and 10% Kerala. - Orders received recently include INR 24.63 crores from Karnataka-based EPC companies for 20 MVA transformers. - The current year's revenue target is INR 180-200 crores, with expectations to exceed INR 300 crores next year (FY27). - The company expects order booking to be sustained with strong demand for the next 5-10 years.