Concord Control Systems Ltd

- Concord expects a strong growth trajectory with a 40% to 50% CAGR in revenue over the next 3 to 5 years. - The next 2 to 3 years are viewed as a "golden period" with transformational growth driven by new products, R&D, and market expansion. - Management aims to increase FY25 revenue by approximately 5 times within 2 to 3 years. - They anticipate explosive growth from subsidiaries like Advanced Rail and strategic investments like Fusion Electronics, expecting Fusion to contribute up to INR 200 crores in revenue in the near future. - Growth will be driven by large-scale deployment of products like Kavach and expansion in railway technologies domestically and globally. - H2 is consistently stronger than H1, and the company expects accelerating execution and order conversion in upcoming quarters. - Overall, Concord is bullish on doubling or more of current revenues with expanding product offerings and global market access.

- Concord Control Systems aims for a **40% to 50% CAGR growth in revenue over the next 3 to 5 years**, with an especially transformational growth phase expected in the next 2 to 3 years ("golden period"). - The company delivered a **64% YoY revenue growth in H1 FY26** and an **85% increase in net profit**, achieving INR 16 crores net profit in H1 alone. - They forecast to grow 5 times the FY25 revenue in the next 2 to 3 years. - EBITDA margins for newly acquired Fusion Electronics are expected to be **upwards of 20%** at full scale. - The management expects the consolidated revenue to cross **INR 200 crores in FY26**, supported by a strong order book and execution pipeline. - H2 (second half) traditionally sees heavier revenue and profit contribution than H1, supporting optimistic future earnings.

- Current order book stands at INR 313 crore as of the half-year ended September 2025, reflecting a 47% increase. - Orders received during H1 FY26 exceeded INR 180 crore. - Executed orders worth approximately INR 80 crore in H1 FY26. - Strong order pipeline expected to convert into revenues over the next 18-24 months. - Kavach-related orders include INR 19.5 crore from Progota for manufacturing and commissioning systems on a 53 km rail section. - Additional significant tenders in progress for 6,500+ locomotives and 2,500 train sets; Concord is qualified as a developmental vendor. - Anticipated sizable order flow from Kavach tenders within this financial year. - Company plans to provide quarterly updates on order book progress going forward.

- Concord is working with multiple banks to increase working capital as and when required. - There are no immediate plans for fundraising; funds will be raised only when necessary. - Fundraising may come from banks or investors, but the company is conservative about keeping the cost of capital low. - The company assures that the need for capital will never be a concern for growth. - There is an emphasis on considering retail investors in future fundraising. - Overall, Concord prefers smart, calculated moves regarding fundraising, balancing growth needs and capital costs.

- Concord completed the acquisition of Fusion Electronics, one of the largest flexible PCB manufacturers in India, providing backward integration for railway-grade assemblies and EMS requirements; CapEx for this is largely done with plans to enhance technology. - Fusion has installed capacity of over 2 lakh sq. meters of flexible PCBs and potential revenue of INR 200 crore at full capacity, with EBITDA margins upwards of 20%. - The company is investing in zero-emission propulsion technologies, including hydrogen, hybrid variants, and higher capacity systems, developed entirely in-house. - Strategic investments include remote monitoring and HMI solutions aligned with propulsion systems. - Concord takes a calculated, conservative approach to acquisitions, focusing on technologies impacting Indian Railways' safety and innovation. - Government PLI schemes support semiconductor and flexible PCB sectors, benefiting Fusion's growth. - CapEx for PCB manufacturing was already in place at Fusion; further investment will focus on technology upgrades rather than new capacity.