Prostarm Info Systems Ltd

- **Jhajjar, Haryana Facility**: Setting up a 1.2 gigawatt BESS manufacturing plant, expected to be operational by Q4 FY'26. - **Ahmedabad (Bakrol) Unit**: Expansion for UPS manufacturing (1KV to 600KVA) with CAPEX around Rs. 6 crores, targeted for commissioning in Q1 FY'27. - **1.2 GW BESS Capacity**: Rs. 25 crore direct CAPEX for assembly plant in Haryana; additional working capital required (~Rs. 200-400 crores depending on utilization). - **Strategic Shift**: Aim to reduce dependence on China with local manufacturing of UPS and lithium-ion battery packs. - **Potential New Verticals**: Promoter stated plans to add 5-8 new business verticals in coming months for sustained growth. - **Exploring Alternate Funding**: For BESS projects (Karnataka, Bihar), open to raising funds or exploring other business structures.

- The company is open to both raising funds and exploring other financing options for its projects, including the BESS built-on operator model projects valued around Rs. 400-450 crores (Page 18). - There is no explicit commitment to raising debt or equity at this time; alternative funding approaches are being actively discussed and will be communicated when finalized. - Working capital requirements for BESS operations are expected around Rs. 200 crores, but no direct statement about fundraising specifically for working capital is mentioned (Page 12). - The management is focusing on disciplined working capital management aligned with project execution cycles (Page 6). - Overall, fundraising plans appear flexible and contingent on project needs and strategic decisions, with openness to equity or debt as required.

- Targeting 20% to 25% growth in core/traditional business revenue year-on-year. - Expect meaningful revenue contribution from BESS segment starting FY’27, with 40%-50% capacity utilization in BESS factory. - BESS revenue potential at full utilization estimated between Rs. 1000 to Rs. 1200 crores. - Conversion rate of bids under evaluation expected around 20%, supporting order book growth. - Focus on diversified vertical-wise growth across geographies and segments to sustain growth for next 3 to 5 years. - Addition of new capacities such as the Ahmedabad UPS unit to reduce import dependence and improve margins. - Policy support expected from Government of India mandating 50% domestic content in BESS tenders from April 1, enhancing competitiveness and margins. - Working capital efficiently managed aligned with order execution timelines.

- The company targets a revenue growth of 20% to 25% year-on-year, driven by robust order book and bids under evaluation (~Rs. 750 crore). - EBITDA margins are expected to revert to a range of 12% to 15%, with sustainable operating leverage benefits as revenues scale. - BESS segment is anticipated to contribute meaningfully starting FY’27, with around 40%-50% capacity utilization and minimum EBITDA margins of 14%-15%. - Operating cash flow, currently negative due to project execution, is expected to turn positive from Q3 FY’27 onward. - Profit after tax has shown a strong YoY growth of approximately 101% this quarter; PAT margin should improve with margin normalization. - EPS growth is expected to follow earnings growth trends, supported by enhanced margin profile, increased revenue, and improved cash flows.

- Current order book stands at approximately INR 890 crore in the BESS segment. - Total order book across segments is INR 946 crore (INR 9,460 million) covering 91 projects. - Bid pipeline under evaluation is around INR 750 crore, primarily in non-BESS/core product segments. - Expected conversion rate for bids under evaluation is approximately 20%. - About 20% of the existing order book is expected to be executed in FY’26, with majority in FY’27 and beyond. - No significant BESS orders have been booked as revenue till Q3 FY’26; around INR 40 crore expected in Q4. - BESS factory operational from end FY’26 with expected utilization of 40-50% in the next financial year.