Supreme Power Equipment LtdQ1 FY27
Supreme Power Equipment Ltd Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹227P/E: 25.6Market Cap: ₹523 CrSector: Electrical Equipment
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
Yes
Order
Yes
Capex
Yes
3 of 5 growth signals are positive.
Full analysisRevenue guidance
Category 2- →FY27 revenue guidance is INR250 crores to INR300 crores, with cautious optimism around INR280 crores.
- →Year-on-year revenue growth target of 20-30%, with a 30% increase expected for FY28, potentially reaching around INR400 crores.
- →By FY29, revenue could grow to between INR550 crores to INR600 crores.
- →Order book expected to be maintained between INR500 crores to INR600 crores continuously.
- →Capacity utilization expected to ramp up from current 20-30% at new plant to 30-50% by Q4 FY27.
- →Focus on timely execution to support revenue growth.
- →Plans for capacity expansion contingent on land acquisition; no finalized plan yet.
- →Long-term demand environment is strong, with visibility of sustained demand for at least 10 years domestically and globally.
- →International market entry being explored but no significant breakthrough yet.
Margin guidance
Category 3- →Revenue growth guidance: Expected to increase by 30% year-on-year. For FY27, revenue is projected between INR 250-300 crores; for FY28, around INR 400 crores; and for FY29, INR 550-600 crores.
- →Order book: Expected to be maintained between INR 500-600 crores consistently, supporting steady future revenue.
- →Margins: PAT margins are expected to be maintained between 9% to 12%, with power transformers potentially adding 1-2% margin but offset by overhead costs.
- →Operating leverage: Ramp-up of new Kannur manufacturing facility and increased capacity utilization (from current 20-25% to 30-50% by Q4 FY27) to improve operating efficiency.
- →EPS: With consistent margin maintenance and revenue growth, EPS growth is expected to track revenue expansion, supported by better execution and stable profitability.
- →Medium-term growth is supported by strong order inflow, expanded technical capabilities, and increased capacity, targeting sustainable and profitable growth.
Fundraise plans
Yes- →For FY27, there is no requirement for equity dilution as adequate bank limits have been secured.
- →Term loans will be raised from banks for ongoing capex, including tank manufacturing facilities.
- →Decisions on any further equity raise to support revenue growth near INR600 crores will be taken next year (FY28 or FY29).
- →Equity dilution is considered a costlier form of fund compared to bank borrowings.
- →Working capital requirements for increased revenue are being addressed through higher limits from banks.
- →No immediate plans for equity fundraising, but potential equity raise may be considered in FY28 or FY29 depending on expansion plans and working capital needs.
Order book
Yes- →As of August 13, 2026, the order book stands at approximately INR 590 crores, providing healthy execution visibility.
- →The order book is expected to be maintained between INR 500 crores to INR 600 crores going forward.
- →Out of the INR 590 crores order book, about INR 377 crores is targeted for completion in FY27, with INR 212 crores carrying into FY28.
- →The company is expecting additional orders worth INR 300 crores to INR 500 crores under negotiation for the rest of the year.
- →There is a focus on power transformers in the order book, constituting about 77%, followed by distribution transformers at 18%, and inverter duty transformers at 5%.
- →About 80% of the orders have a price variation clause linked to LME to protect margins.
- →Orders are backed by both government (30%) and non-government (70%) customers.
Capex plans
Yes- →Land purchase is being considered for future capacity expansion, but no land has been acquired yet; plans will be discussed once finalized.
- →Tank manufacturing facility: Land was bought about a year ago; statutory approvals are awaited and expected by next month. Capex for this facility is around INR 20-22 crores, with construction expected to complete before March.
- →Expansion of transformer capacity: Current capacity is 9,000 MVA; plans to increase capability for transformers in the 300 to 500 MVA range, especially targeting larger power transformers.
- →Term loans will be raised from banks to fund capex.
- →No equity dilution is planned this year; equity funding might be required in FY27 or FY28 to support growth beyond INR 400 crores revenue.
- →Focus remains on measured scaling with continued investment in technical capabilities and operational efficiency.
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Margin guidance
Category 3- →Revenue growth guidance: Expected to increase by 30% year-on-year. For FY27, revenue is projected between INR 250-300 crores; for FY28, around INR 400 crores; and for FY29, INR 550-600 crores.
- →Order book: Expected to be maintained between INR 500-600 crores consistently, supporting steady future revenue.
- →Margins: PAT margins are expected to be maintained between 9% to 12%, with power transformers potentially adding 1-2% margin but offset by overhead costs.
- →Operating leverage: Ramp-up of new Kannur manufacturing facility and increased capacity utilization (from current 20-25% to 30-50% by Q4 FY27) to improve operating efficiency.
- →EPS: With consistent margin maintenance and revenue growth, EPS growth is expected to track revenue expansion, supported by better execution and stable profitability.
- →Medium-term growth is supported by strong order inflow, expanded technical capabilities, and increased capacity, targeting sustainable and profitable growth.
Order book
Yes- →As of August 13, 2026, the order book stands at approximately INR 590 crores, providing healthy execution visibility.
- →The order book is expected to be maintained between INR 500 crores to INR 600 crores going forward.
- →Out of the INR 590 crores order book, about INR 377 crores is targeted for completion in FY27, with INR 212 crores carrying into FY28.
- →The company is expecting additional orders worth INR 300 crores to INR 500 crores under negotiation for the rest of the year.
- →There is a focus on power transformers in the order book, constituting about 77%, followed by distribution transformers at 18%, and inverter duty transformers at 5%.
- →About 80% of the orders have a price variation clause linked to LME to protect margins.
- →Orders are backed by both government (30%) and non-government (70%) customers.
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