💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for H1 FY26 reached INR 275.3 Cr, a 160% YoY increase from INR 105.88 Cr. The order book of INR 1,000 Cr is split between Power Transmission Solutions (76%) and New and Renewable Energy (24%).

Geographic Revenue Split

The company operates primarily in India with manufacturing facilities in Kadi, Gujarat. Specific regional revenue percentages are not disclosed, but the company is executing projects like the 1 MW green hydrogen project in Bharuch.

Profitability Margins

PAT margin for H1 FY26 stood at 7.83%, a decrease from 9.39% in H1 FY25. Operating margins in FY24 were 16.84%, slightly down from 17.3% in FY23 due to diversification costs.

EBITDA Margin

EBITDA margin for H1 FY26 was 11.28%, down from 15.65% in H1 FY25. The decline is attributed to the 'building phase' of the AGPL subsidiary where the company is investing in capability and qualifications.

Capital Expenditure

The company is investing INR 75 Cr for a 300 MW electrolyzer manufacturing facility. It has already invested INR 54 Cr into its subsidiary, Advait Greenergy Private Limited (AGPL), for this expansion.

Credit Rating & Borrowing

CRISIL upgraded the company's rating to 'CRISIL BBB+/Stable/CRISIL A2' in December 2024 from 'CRISIL BBB/Stable/CRISIL A3+'. Borrowing is supported by a robust financial profile with gearing at 0.24 times.

⚙️ Operational Drivers

Raw Materials

Key materials include aluminum and steel for ACS/OPGW wires and stringing tools, though specific cost percentages per material are not disclosed.

Capacity Expansion

Current electrolyzer capacity is being established with 10 MW ready by January 2026, expanding to a total of 300 MW by the end of 2026. The company also manufactures 140+ types of stringing tools.

Raw Material Costs

Raw material costs are a significant component of the Power Transmission division; however, the company does not engage in commodity hedging, making it sensitive to price fluctuations.

Manufacturing Efficiency

The company is expanding its Kadi, Gujarat plant to enhance capacity for Emergency Restoration Systems (ERS) and stringing tools to meet the 177% YoY growth in the order book.

📈 Strategic Growth

Expected Growth Rate

50-60%

Growth Strategy

Growth will be driven by the transition from power transmission to green energy, specifically through the 300 MW electrolyzer plant and the execution of a INR 130 Cr Battery Energy Storage System (BESS) order, with INR 50-60 Cr revenue expected in Q4 FY26.

Products & Services

OPGW (Optical Ground Wire), ACS (Aluminium Clad Steel) wires, Emergency Restoration Systems (ERS), 140+ types of stringing tools, Electrolyzers, Fuel Cells, and Green Hydrogen EPC services.

Brand Portfolio

Advait Energy Transitions, Advait Greenergy (AGPL).

New Products/Services

BESS (Battery Energy Storage Systems) with a current order of INR 130 Cr and indigenous fuel cells developed through global technology partnerships.

Market Expansion

Expanding into the Green Hydrogen ecosystem and BESS, targeting the completion of the 300 MW electrolyzer facility by late 2026.

Strategic Alliances

Partnerships with global technology providers for electrolyzer and fuel cell licenses; AGPL is the primary subsidiary for these ventures.

🌍 External Factors

Industry Trends

The industry is shifting toward Green Hydrogen and BESS. Advait is positioning itself as an integrated player in the NRE ecosystem to capture growth as India targets carbon neutrality.

Competitive Landscape

Competes in the Power Transmission EPC and manufacturing space, now entering the highly competitive electrolyzer market against global and domestic technology firms.

Competitive Moat

Moat is built on a niche product portfolio (ERS, 140+ stringing tools) and being a first-mover in Indian green hydrogen EPC, evidenced by completing India's first such project.

Macro Economic Sensitivity

Highly sensitive to government renewable energy policies and the 'priority sector' status of energy transition projects which currently drives the INR 1,000 Cr order book.

Consumer Behavior

Shift in government and corporate preference toward sustainable energy solutions is driving the 177% YoY increase in the company's order book.

Geopolitical Risks

Dependency on global technology partners for electrolyzer licenses could be affected by trade or technology transfer regulations.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by SEBI (LODR) Regulations and Ministry of Power standards for transmission equipment. Compliance with the Code of Conduct is confirmed by the MD.

Environmental Compliance

The company is pivoting its entire business model toward 'Energy Transitions' to align with global ESG and carbon reduction mandates.

Taxation Policy Impact

The company is subject to standard Indian corporate tax rates; dividend of 17.50% (INR 1.75 per share) was recommended for FY25.

Legal Contingencies

The company declared no material subsidiaries as of March 2025 and maintains compliance with mandatory requirements of Regulation 17 to 27 of SEBI LODR.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'monitorable' ramp-up of the new electrolyzer facility and the potential for a 20% margin squeeze if raw material costs rise without hedging.

Geographic Concentration Risk

Manufacturing is concentrated in Gujarat (Kadi plant), making operations sensitive to regional industrial policies and infrastructure.

Third Party Dependencies

High dependency on technology partners for electrolyzer and fuel cell licenses to maintain the NRE division's growth.

Technology Obsolescence Risk

The green hydrogen space is evolving rapidly; the company mitigates this by partnering with 'world-class' providers to ensure 'proven global technologies' are used.

Credit & Counterparty Risk

Trade receivables are increasing, which could indicate credit risk or collection delays from DISCOMs and EPC clients.