Any current/future new fundraising through debt or equity?

Supreme Power Equipment Limited has taken a term loan of INR 35 crores for the new capacity expansion. There is no mention of any planned equity fundraising in the earnings call transcript. The INR 35 crores loan is intended to support capacity expansion, which is expected to come into operation in Q4 of calendar year 2026. Current debt levels are low, and the company expects peak debt related to the new facility to be INR 35 crores. No other immediate or future fundraising plans through debt or equity were disclosed in the call.

Any current/future capex/capital investment/strategic investment?

Supreme Power Equipment Limited is constructing a state-of-the-art new manufacturing facility, with 30% of work completed as of October. The new facility will significantly enhance production capacity and operational efficiency. Current existing facility capacity is around 2,500 MVA, while the new facility will increase this to approximately 6,000 to 6,500 MVA. The new manufacturing facility is expected to start operations in Q4 of calendar year 2026. Upon full utilization (80-90%), the expanded capacity is expected to generate revenue of INR 500 to 550 crores within 2 to 3 years. The company

Future growth expectations in sales/revenue/volumes?

Post expansion, Supreme Power Equipment aims for revenue of INR 500-550 crores at 80-90% capacity utilization within 2-3 years. The new manufacturing facility, expected operational in Q4 FY '26, will significantly boost revenue capacity from INR 100-150 crores to INR 500-550 crores. Order book currently stands around INR 90 crores with a pipeline quoted at approximately INR 900 crores, with a realistic win probability of INR 200-300 crores over 2-3 quarters. Strategic focus is shifting from 80% government orders historically to 75% private sector, aiming for higher margins and better profitabi

Future growth expectations in earnings/operating earnings/profits/EPS?

Revenue Growth: The company is optimistic about revenue growth of 10% to 30% in the next year, supported by rising demand in both government and private sectors. Capacity Utilization: With enhanced capacity (existing 2,500 MVA plus new facility of 6,000 to 6,500 MVA), revenue is expected to reach INR 500-550 crores at 80%-90% utilization in 2-3 years. Margins: Operating margins are expected to be maintained at around 15%-17%. New larger power transformer capacity may slightly reduce margins by 0.5%-1% due to higher overheads. Profitability: Profit after tax (PAT) is projected at 11%-12% at ful

Current/ Expected Orderbook/ Pending Orders?

Current confirmed order book stands around INR 90-91.5 crores. About 30% to 40% of this order book will be executed within the current financial year (FY '25). The order book includes INR 84.5 crores from Supreme Power Equipment Limited and INR 7 crores from Danya Electric Company (90% stake held). The company has quoted tenders worth approximately INR 900 crores across multiple states (Punjab, Kerala, Karnataka) with an expected success/winning rate of 10% to 30%. Optimistically, the company anticipates winning orders worth INR 200 to 300 crores within the next two to three quarters. Pipeline

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Supreme Power Equipment LtdQ4 FY26Electrical Equipment

Supreme Power Equipment Ltd Q4 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹250P/E: 27.4Market Cap: ₹578 CrSector: Electrical Equipment

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Post expansion, Supreme Power Equipment aims for revenue of INR 500-550 crores at 80-90% capacity utilization within 2-3 years.
→The new manufacturing facility, expected operational in Q4 FY '26, will significantly boost revenue capacity from INR 100-150 crores to INR 500-550 crores.
→Order book currently stands around INR 90 crores with a pipeline quoted at approximately INR 900 crores, with a realistic win probability of INR 200-300 crores over 2-3 quarters.
→Strategic focus is shifting from 80% government orders historically to 75% private sector, aiming for higher margins and better profitability.
→Revenue growth target is 10-30% year-on-year, with further potential from newer larger power transformers and renewable energy segments which now contribute 18-20% of sales.
→Efforts are underway to pursue exports for higher-margin business, though no firm progress yet.
→EBITDA margins expected stable around 15-17%, with PAT margin targeted at 11-12% at full capacity.

Margin guidance

Category 3

→Revenue Growth: The company is optimistic about revenue growth of 10% to 30% in the next year, supported by rising demand in both government and private sectors.
→Capacity Utilization: With enhanced capacity (existing 2,500 MVA plus new facility of 6,000 to 6,500 MVA), revenue is expected to reach INR 500-550 crores at 80%-90% utilization in 2-3 years.
→Margins: Operating margins are expected to be maintained at around 15%-17%. New larger power transformer capacity may slightly reduce margins by 0.5%-1% due to higher overheads.
→Profitability: Profit after tax (PAT) is projected at 11%-12% at full capacity utilization.
→EPS: For 9 months FY '25, EPS grew by 10.11% YoY to INR 4.14; sequential growth is anticipated aligned with revenue and profit growth.
→Order Book: Current order book of around INR 90 crores, with a 10%-30% success rate on tenders valued INR 900 crores adds growth visibility.

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Fundraise plans

Yes

→Supreme Power Equipment Limited has taken a term loan of INR 35 crores for the new capacity expansion.
→There is no mention of any planned equity fundraising in the earnings call transcript.
→The INR 35 crores loan is intended to support capacity expansion, which is expected to come into operation in Q4 of calendar year 2026.
→Current debt levels are low, and the company expects peak debt related to the new facility to be INR 35 crores.
→No other immediate or future fundraising plans through debt or equity were disclosed in the call.

Order book

Yes

→Current confirmed order book stands around INR 90-91.5 crores.
→About 30% to 40% of this order book will be executed within the current financial year (FY '25).
→The order book includes INR 84.5 crores from Supreme Power Equipment Limited and INR 7 crores from Danya Electric Company (90% stake held).
→The company has quoted tenders worth approximately INR 900 crores across multiple states (Punjab, Kerala, Karnataka) with an expected success/winning rate of 10% to 30%.
→Optimistically, the company anticipates winning orders worth INR 200 to 300 crores within the next two to three quarters.
→Pipeline tenders include solar, wind, IDT, distribution, and power transformers, with solar contributing roughly 8-10%.
→The order execution duration for new orders is estimated around 9 months (2-3 quarters).

Capex plans

Yes

→Supreme Power Equipment Limited is constructing a state-of-the-art new manufacturing facility, with 30% of work completed as of October.
→The new facility will significantly enhance production capacity and operational efficiency.
→Current existing facility capacity is around 2,500 MVA, while the new facility will increase this to approximately 6,000 to 6,500 MVA.
→The new manufacturing facility is expected to start operations in Q4 of calendar year 2026.
→Upon full utilization (80-90%), the expanded capacity is expected to generate revenue of INR 500 to 550 crores within 2 to 3 years.
→The company has availed a term loan of INR 35 crores to support the new capacity expansion.
→The company is also focusing on qualifying the new plant to supply larger power transformers, implying ongoing strategic investment in certifications and compliance.

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