Chamunda Electrical LtdQ1 FY25Commercial Services & Supplies

Chamunda Electrical Ltd

Q1 FY25 Earnings Call Analysis

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Revenue guidance

Category 2

→Revenue is expected to grow from INR25 crores in FY 2025 to approximately INR31-33 crores in FY 2026, and further to around INR35.5-38 crores by FY 2027.
→The company plans a 20% growth in Operation & Maintenance (O&M) vertical and a 25%-30% growth in testing services.
→Solar division capacity is expected to increase from 1.7 MW to 4 MW by March 2026, with revenue from solar projected to rise from INR72 lakhs in FY 2025 to about INR1 crore in FY 2026, and significantly higher in FY 2027.
→Order book execution of INR64 crores is spread over three years: ~INR20 crores in the first year, INR24 crores in the second, and the remainder in the third year.
→The company expects steady EBITDA margins around 25%, supporting sustained revenue growth.

Category 3

→Revenue targets: INR31-33 crores in FY '26, INR35.5-38 crores in FY '27.
→EBITDA margin expected to sustain around 25%; historical margin rose from ~4% in 2022 to 23-25% recently.
→PAT margin consistent at 12-13%, expected slight growth; FY '25 PAT margin ~13.27%, with 13.5% margin growth expected for FY '26.
→O&M business projected to grow ~20%; testing vertical growth at 25-30%.
→Solar capacity planned expansion from 1.7 MW to 4 MW by FY '26-27; revenue from solar expected around INR1 crore by FY '26.
→Order book execution spread over 3 years, incremental revenue phased accordingly.
→Sustainability of margins supported by major employee cost control and operational efficiencies.
→Earnings growth driven by expansion into NABL certification and increased solar project capacity.

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Yes

→Currently, Chamunda Electrical Limited is a debt-free company after successfully repaying all debts using IPO proceeds.
→The company utilized IPO funds for debt repayment, working capital, and pending machinery purchases.
→There is no immediate plan for new debt or equity fundraising.
→However, expansion plans, particularly in solar capacity growth to 4 megawatts, may require additional fundraising in the future.
→Management mentioned the possibility of future fundraising if expansions evolve but has not synchronized or finalized plans yet.
→Overall, future fundraising is under consideration but not actively planned or committed at this time.

Yes

→Current order book is INR 64 crores (as of June 2025).
→Recent order of INR 30 crores received from GETCO in February 2025.
→Order execution timeline: INR 20 crores expected in year one, INR 24 crores in year two, remaining in year three.
→Company is at peak capacity with 118 substations currently under O&M contracts.
→O&M contracts are typically 3 years minimum, extendable up to 5 years.
→The company operates mainly in Gujarat with some testing services across India.
→Competes with Siemens and Kintec as top players in this segment.
→Plans to expand solar capacity, which will add to future order book and revenue streams.

Yes

→Capex is planned across three verticals: O&M (Operation & Maintenance), testing with NABL certification, and solar power expansion.
→Solar capacity is planned to increase from current 1.7 megawatts to 4 megawatts by March 2026-27.
→Estimated capex for solar expansion is approximately INR 12-15 crores to be utilized equally across FY 2025-26 and FY 2026-27.
→Investment in new testing equipment from Germany to enhance the testing division; orders placed but expected delivery after ~15-20 days.
→Capex will also support expansion related to NABL certification, enabling reach beyond India.
→Additional investments for substation commissioning projects and related kits and machinery, partially funded by IPO proceeds.
→Currently debt-free after IPO fund utilization for debt repayment and working capital; no immediate plans for raising debt but considering future options for solar expansion.

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