💰 Financial Performance

Revenue Growth by Segment

Revenue from operations was INR 157.3 Cr in FY25, a slight decline of 1.8% from INR 160.2 Cr in FY24. H1 FY26 revenue reached INR 95.1 Cr. Segment contribution in FY25 was dominated by LED Bulbs at 65%, Battens at 24%, and 2x2 Panels at 11%. For FY26, the company is shifting focus to Street/Flood Lights (expected 14% share) and Solar/Industrial Lights (expected 8% each) to offset the decline in LED Bulbs, which are projected to drop to 38% of revenue.

Geographic Revenue Split

Not disclosed in available documents, though the company has a historical export background to Russia and the USA.

Profitability Margins

Gross margins are under pressure due to 40-60% price erosion in commoditized indoor lighting. Net Profit Margin improved to 2.7% in H1 FY26 (INR 2.6 Cr) compared to 0.7% in FY25 (INR 1.1 Cr) and 0.8% in FY24 (INR 1.3 Cr).

EBITDA Margin

EBITDA margin stood at 7.4% in FY25 (INR 11.7 Cr), up from 5.4% in FY24 (INR 8.6 Cr). H1 FY26 EBITDA margin further improved to 8.1% (INR 7.7 Cr) due to better fixed cost absorption and a shift toward higher-margin outdoor lighting products.

Capital Expenditure

Fixed assets (including PPE, CWIP, and ROU assets) increased by 34.5% from INR 60.2 Cr in FY24 to INR 81.0 Cr in FY25. As of H1 FY26, fixed assets stood at INR 86.4 Cr, reflecting ongoing investments in SMT lines and a new 50,000 sq. ft. factory space.

Credit Rating & Borrowing

The company faces stretched liquidity with bank limit utilization at approximately 90% of the INR 22.5 Cr limit. Rating sensitivity factors require cash accruals to exceed INR 15 Cr for an upgrade; current FY25 performance was below the initial CRISIL expectation of INR 180-200 Cr revenue.

⚙️ Operational Drivers

Raw Materials

Electronic components for SMT lines, plastic for moulding/extrusion, and specialized machinery for solar street lights. Specific percentage breakdown per material is not disclosed.

Import Sources

China (specifically for manufacturing machinery and SMT equipment).

Capacity Expansion

The company is adding 50,000 sq. ft. of factory space, installing a new plastic extrusion plant, and upgrading SMT lines and tool rooms to support the transition to ODM (Original Design Manufacturer) status.

Raw Material Costs

Cost of Goods Sold (COGS) was INR 120.7 Cr in FY25, representing 76.7% of revenue, down from 78.3% in FY24. Procurement is impacted by delays in importing machinery from China, which hindered solar street light execution.

Manufacturing Efficiency

Automation of bulb production is being implemented to increase output and offset a 40-60% drop in market prices for LED products.

📈 Strategic Growth

Expected Growth Rate

60%

Growth Strategy

The company plans to achieve INR 250+ Cr revenue in FY26 by diversifying into BLDC fans, Smart Lighting (IoT), and Solar Lighting. It is leveraging the PLI scheme (expected incentive of INR 13.8 Cr) and expanding its ODM business by adding 50,000 sq. ft. of infrastructure and new assembly lines.

Products & Services

LED bulbs, battens, 2x2 panels, street lights, flood lights, industrial lights, solar street lights, BLDC fans, EV chargers, and solar inverters.

Brand Portfolio

Calcom (primarily operates as an ODM/OEM for brands like Philips, LG, and Samsung).

New Products/Services

BLDC fans, EV chargers, and Solar Inverters are expected to drive the next level of growth, with new products projected to contribute significantly to the FY26 revenue target of INR 250+ Cr.

Market Expansion

Expansion into the Smart/IoT lighting vertical and the EV charging infrastructure market.

Strategic Alliances

Joint Venture with Calcom Taehwa Techno Private Limited; historical collaborations with Samsung Korea.

🌍 External Factors

Industry Trends

The lighting industry is shifting from 'Driver Type' to 'DOB (Driver on Board) Type' products, causing sharp price drops. The company is positioning itself for the USD 270 billion household electronics market projected by 2030.

Competitive Landscape

Faces stiff competition from both domestic and international players in the commoditized LED segment, leading to significant price erosion.

Competitive Moat

Moat is based on 40+ years of electronics manufacturing experience and backward integration in plastic moulding and SMT. Sustainability depends on the successful transition from OEM to a high-margin ODM model.

Macro Economic Sensitivity

Highly sensitive to government electronics spending, with the PLI budget for electronics expected to rise to INR 8,885 Cr in FY26.

Consumer Behavior

Rising demand for energy-efficient and 'smart' household electronics (IoT) is driving the shift toward BLDC fans and connected lighting.

Geopolitical Risks

Trade and import dependencies on China for manufacturing equipment pose a risk to timely capacity expansion and order fulfillment.

⚖️ Regulatory & Governance

Industry Regulations

Beneficiary of the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing with an approved incentive of INR 13.8 Cr.

Environmental Compliance

Focus on environment-friendly and energy-efficient lighting solutions; specific ESG costs not disclosed.

Taxation Policy Impact

Effective tax rate resulted in a tax expense of INR 0.9 Cr in H1 FY26.

Legal Contingencies

The company disclosed pending litigations in Note 43 of the financial statements. A significant internal governance issue occurred where an employee bypassed password security to divert funds to unauthorized payees; the company performed a forensic audit and terminated the employee.

⚠️ Risk Analysis

Key Uncertainties

Technological shifts to DOB products could further erode margins by 40-60%. Execution risk exists for the INR 250+ Cr revenue target if new product lines (BLDC fans, EV chargers) face slow adoption.

Geographic Concentration Risk

Manufacturing is concentrated in New Delhi/Greater Noida area.

Third Party Dependencies

High dependency on specialized machinery suppliers from China for the solar and SMT divisions.

Technology Obsolescence Risk

The shift from traditional LED drivers to integrated DOB technology represents a high risk of obsolescence for older manufacturing lines.

Credit & Counterparty Risk

Receivables of ~90 days indicate moderate credit risk from OEM/ODM customers.