Servotech Renewable Power System Ltd

- Currently, many things are in progress regarding fundraising; specifically, some work related to a Qualified Institutional Placement (QIP) is ongoing. - The company hopes the market will understand the need for fundraising, and if conditions improve, they will definitely proceed with it. (Page 36) - For FY27, the company has planned no fresh long-term debt; CapEx will moderate significantly and be funded entirely from internal accruals. (Page 5) - The focus for FY27 is on operational consolidation, working capital normalization, and disciplined capital allocation without seeking new long-term debt. (Page 5)

- FY26 CapEx was Rs. 64 crore, mainly for new manufacturing lines for solar hybrid inverters, grid-tied models, battery energy storage systems, and lithium-ion battery packs. - The FY26 CapEx program is substantially complete. - For FY27, CapEx is expected to moderate to a lower run rate and will be funded entirely from internal accruals. - Around Rs. 79 crore of fresh debt in FY26 deployed into capital expenditure, asset purchase, and investment in solar PV manufacturing capacity. - No plans to enter new business lines; focus remains on innovation within existing products. - Work on multiple strategic initiatives like QIP (Qualified Institutional Placement) is ongoing for future fundraise. - Major growth anticipated from retail channel expansion and channel distribution to optimize working capital and support next growth phase.

- FY26 revenue showed strong performance; standalone revenue grew 8.4% YoY to ₹637 crore with 12% EBITDA margin in H2 FY26—the highest in company history. - FY27 expected as a year of operational consolidation with no fresh long-term debt and moderate CapEx funded by internal accruals. - Target to fully utilize new manufacturing capacity by Q2 FY27, indicating capacity-driven growth. - Business diversification into retail channels, targeting over 50% revenue from retail versus government tenders by 2027. - Incremental growth anticipated from solar inverters, higher capacity DC chargers (120-360kW), and battery energy storage systems (BESS). - Continuing shift to green energy products (solar + EV chargers) with common production processes supports flexible volume growth. - Focus on working capital normalization and disciplined capital allocation to support sustained growth. - Management cautious on forward guidance due to regulatory restrictions but aiming to replicate or improve past 5-6 years' growth trajectory.

- FY26 marked a transformational year with highest-ever EBITDA margin (11.6%) and strong revenue growth. - Profit after tax grew 8.3% despite higher depreciation and finance costs due to ₹64 crore CapEx commissioning. - From FY26 onwards, CapEx impact will normalize, leading to full operating leverage benefit reflected in the bottom line. - FY27 focus is on operational consolidation, working capital normalization, and disciplined capital allocation. - Margin expansion in FY26 is structural; FY27 expected to sustain or modestly improve margins. - No exact forward guidance on percentage growth is provided due to regulatory restrictions and market sensitivity. - Management aims to maintain or repeat the successful growth trajectory seen over the past five years. - Target to improve utilization of assets to 100% by FY27. - Commitment to restoring positive operating cash flow and reducing gearing below 0.5 times during FY27.

- The transcript does not explicitly mention the current or expected order book size in exact figures. - However, it is highlighted that the order book and run rate expected in Q4 provide confidence in the topline trajectory for FY27. - There is ongoing work in several business segments: solar, inverter, DC chargers (supported by government EV infrastructure rollout), and BESS (battery energy storage systems). - FY27 is expected to be a year of operational consolidation built on FY26 capacity additions with a healthy order book. - The company is focused on operational efficiency, working capital normalization, and disciplined capital allocation to support order execution. - Questions about utilization of fixed assets indicate a target of 100% utilization in FY27 to meet demand from order book growth. - Overall, the company shows strong execution confidence backed by a healthy and growing order pipeline.