Trom Industries Q3 FY26 Earnings Analysis

- The company is targeting a revenue growth of around 30% for the upcoming financial years (FY26, FY27), aiming to achieve INR120-130 crores. - Growth is expected through expansion in commercial, industrial, and government markets with new project executions. - Trom Industries plans to expand geographically beyond Gujarat and Maharashtra into Rajasthan and MP. - They are focusing on new growth areas such as battery storage systems and green hydrogen, anticipating these will significantly contribute in the near future. - The RESCO model (annuity-based portfolio) is expected to grow, with orders in the pipeline totaling around 27 megawatts and expected ROI within 4-5 years. - The company anticipates steady growth at 30-40% annually by maintaining operational efficiency, better pricing, and project execution speed improvements.

- Trom Industries expects around 30% to 40% annual growth in revenues over the next few years. - Growth drivers include entry into green hydrogen and battery storage systems markets. - They plan to expand geographically beyond Gujarat and Maharashtra as policies improve. - Continued focus on expanding EPC acquisitions and building their annuity-based RESCO portfolio. - Operational efficiencies and better project mix are expected to sustain improved EBITDA margins (around 17% seen recently). - Management expressed confidence in stable and possibly increasing profitability due to stable panel and inverter pricing. - The company anticipates steady growth in O&M contracts and expects battery storage systems to contribute to revenue. - Emphasis on disciplined execution, quality improvements, and policy support to deliver sustainable long-term value creation.

- Trom Industries is planning to enter and expand in the battery storage system (BSS) market, which is seen as a huge future opportunity in India. - The company is working on green hydrogen projects and actively participating in seminars and exhibitions, indicating strategic investment in this emerging sector. - They are also developing a unique and robust manufacturing product, aiming to enter merchant manufacturing, though details are yet to be disclosed. - The company intends to maintain manufacturing capabilities alongside EPC and RESCO models, expecting 30%-40% growth annually. - Trom Industries is investing in digital tools and AI for O&M operations, using software like SAP ERP and app-based monitoring systems to improve efficiency. - They are focusing on geographic expansion beyond Gujarat and Maharashtra, supported by upcoming battery storage policies and participation in large tenders. Overall, the company is investing strategically in new technology areas (battery storage, green hydrogen, and manufacturing), digitalization, and geographical expansion.

- For funding the RESCO SPB pipeline, Trom Industries plans to use general financing or bank financing. - Banks are aggressive and offer attractive schemes for solar projects, facilitating easy financing. - The company is already in talks with banks for financing these projects. - No explicit mention of new equity fundraising in the provided transcript. - Overall focus is on leveraging bank debt for project execution, especially for RESCO projects.

- Current order book is around INR 30 crores that is executable before March 2026. - Additional smaller orders worth INR 15-20 crores expected to be completed by December 2025. - Management is targeting INR 120-130 crores orders for FY 2026-27 based on ongoing discussions and pipeline. - Approximately 27 megawatts of RESCO orders are in the pipeline to be executed within a year. - Biggest orders include projects from Government Energy Development Agency (GEDA), Jyotindra International, Hermes Technology, and Bihar Renewable Energy (~INR 35 crores). - Order book is supported by robust demand across commercial, industrial, and government segments. - Management indicates steady improvement in order visibility and expects growth driven by government-led rooftop solar adoption programs and new state expansions.