Any current/future new fundraising through debt or equity?

Supreme Power Equipment Limited currently plans to manage growth and working capital needs primarily through bank borrowings (debt). No plans for equity dilution have been made at this point to fund expansion. The company is comfortable with existing and increased bank working capital facilities to support revenue growth up to INR300 crores in the near term. For further capacity expansion beyond the current new plant, the company is considering acquiring new land, but no specific fundraising method (debt or equity) has been indicated yet. Overall, growth financing is expected to be managed thr

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

The new production facility is a significant capital investment, with over INR95 crores to INR100 crores spent. The new plant is about 95% complete, with only minor interior and admin building work remaining, expected to be fully operational by Q4 FY '26. The company plans further expansion beyond the current 6-acre facility but will require acquiring additional land due to full utilization. Management is actively considering land acquisition for bigger capacity, likely within the next quarter, though land costs in Chennai are high. No current plans for equity dilution; growth will be managed

Future growth expectations in sales/revenue/volumes?

FY 2026 revenue target is INR180 to INR200 crores, with confidence to achieve INR70-80 crores in Q4 alone. FY 2027 expected revenue is above INR300 crores, reflecting significant growth over current year. FY 2028 revenue expected to reach INR400 to INR500 crores, supported by capacity utilization and strong order book. New plant capacity expected to handle INR600 to INR650 crores; existing plant INR100 to INR110 crores, totaling about INR700 crores max. Order pipeline of INR700 to INR800 crores currently, with continuous inflow month-on-month. Demand outlook remains strong for next 5

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

The company expects revenue for FY '27 to exceed INR 300 crores, up from around INR 180 crores in FY '26. Order pipeline stands strong at INR 700-800 crores, supporting ongoing growth. EBITDA and net profit margins are expected to maintain between 10% to 12%, with potential slight improvement (1-2%) from larger transformer manufacturing in the new plant. Capacity utilization is set to improve as the new facility becomes fully operational over the next 2-3 years, enabling revenue growth towards INR 450-500 crores by FY '28. EPS growth follows top-line growth, with 9-month FY '26 EPS up 23.67% Y

Current/ Expected Orderbook/ Pending Orders?

Current order book is approximately INR 300 crores (mentioned multiple times by Vee Rajmohan). Order pipeline is around INR 700 crores to INR 800 crores. Out of the pipeline, expected conversion/confidence is about 10% to 20%. Government orders constitute about 30%-35% of the order book; private orders make up the balance. Order book split by geography: around 40% Tamil Nadu, 30%-40% Karnataka, and 10% Kerala. Orders received recently include INR 24.63 crores from Karnataka-based EPC companies for 20 MVA transformers. The current year's revenue target is INR 180-200 crores, with expectations t

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Supreme Power Equipment LtdQ4 FY27Electrical Equipment

Supreme Power Equipment Ltd Q4 FY27 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 2

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→FY 2026 revenue target is INR180 to INR200 crores, with confidence to achieve INR70-80 crores in Q4 alone.
→FY 2027 expected revenue is above INR300 crores, reflecting significant growth over current year.
→FY 2028 revenue expected to reach INR400 to INR500 crores, supported by capacity utilization and strong order book.
→New plant capacity expected to handle INR600 to INR650 crores; existing plant INR100 to INR110 crores, totaling about INR700 crores max.
→Order pipeline of INR700 to INR800 crores currently, with continuous inflow month-on-month.
→Demand outlook remains strong for next 5 to 10 years, driven by infrastructure growth and power sector expansion.
→Expansion plans are underway to acquire new land for further capacity increase within 2-3 years.
→Growth fueled by diversification into new regions (e.g., Karnataka, Kerala), targeting balanced geographic mix.
→Manpower recruitment is a current focus to support scaling production volumes.

Margin guidance

Category 3

→The company expects revenue for FY '27 to exceed INR 300 crores, up from around INR 180 crores in FY '26.
→Order pipeline stands strong at INR 700-800 crores, supporting ongoing growth.
→EBITDA and net profit margins are expected to maintain between 10% to 12%, with potential slight improvement (1-2%) from larger transformer manufacturing in the new plant.
→Capacity utilization is set to improve as the new facility becomes fully operational over the next 2-3 years, enabling revenue growth towards INR 450-500 crores by FY '28.
→EPS growth follows top-line growth, with 9-month FY '26 EPS up 23.67% YoY; continued margin stability should support EPS expansion.
→Working capital management improvements reduce risk and support scaling.
→Long-term demand outlook for 5-10 years remains strong, driven by infrastructure growth and government investments, supporting sustainable earnings growth.

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Fundraise plans

Yes

→Supreme Power Equipment Limited currently plans to manage growth and working capital needs primarily through bank borrowings (debt).
→No plans for equity dilution have been made at this point to fund expansion.
→The company is comfortable with existing and increased bank working capital facilities to support revenue growth up to INR300 crores in the near term.
→For further capacity expansion beyond the current new plant, the company is considering acquiring new land, but no specific fundraising method (debt or equity) has been indicated yet.
→Overall, growth financing is expected to be managed through debt, with no immediate equity fundraising planned.

Order book

Yes

→Current order book is approximately INR 300 crores (mentioned multiple times by Vee Rajmohan).
→Order pipeline is around INR 700 crores to INR 800 crores.
→Out of the pipeline, expected conversion/confidence is about 10% to 20%.
→Government orders constitute about 30%-35% of the order book; private orders make up the balance.
→Order book split by geography: around 40% Tamil Nadu, 30%-40% Karnataka, and 10% Kerala.
→Orders received recently include INR 24.63 crores from Karnataka-based EPC companies for 20 MVA transformers.
→The current year's revenue target is INR 180-200 crores, with expectations to exceed INR 300 crores next year (FY27).
→The company expects order booking to be sustained with strong demand for the next 5-10 years.

Capex plans

Yes

→The new production facility is a significant capital investment, with over INR95 crores to INR100 crores spent.
→The new plant is about 95% complete, with only minor interior and admin building work remaining, expected to be fully operational by Q4 FY '26.
→The company plans further expansion beyond the current 6-acre facility but will require acquiring additional land due to full utilization.
→Management is actively considering land acquisition for bigger capacity, likely within the next quarter, though land costs in Chennai are high.
→No current plans for equity dilution; growth will be managed through increased bank borrowings for working capital.
→Strategic focus on expanding capacity to meet anticipated strong demand over the next 5-10 years.

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