Concord Control - Concord Control

📊 BSE: 543619 🏢 Industrial Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 63.90% YoY to INR 81.55 Cr in H1 FY26. Standalone revenue declined 26% YoY to approximately INR 26 Cr, while the subsidiary Advanced Rail drove the majority of the consolidated growth.

Geographic Revenue Split

Not disclosed in available documents, though management reports strong performance across all geographies in FY25.

Profitability Margins

PAT margin improved by 223 bps YoY to 19.65% in H1 FY26. Operating profit margin for FY25 was 27.11%.

EBITDA Margin

EBITDA margin was 26.65% in H1 FY26, representing a decrease of 189 bps from 28.54% in H1 FY25.

Capital Expenditure

Management noted that the Fusion acquisition is capital intensive due to advanced PCB manufacturing requirements, though specific planned INR Cr values for future CapEx were not disclosed.

Credit Rating & Borrowing

Interest costs fell 76.94% YoY to INR 0.54 Cr in H1 FY26. The Debt-Equity ratio significantly improved from 5.89 to 0.31 in FY25 due to debt repayment and new share capital issuance.

⚙️ Operational Drivers

Raw Materials

Electronic components, PCB materials, and locomotive subsystem components. Specific percentage of total cost for each is not disclosed.

Capacity Expansion

Fusion holds India's largest installed capacity for flex PCBs. Management plans to enhance technology and scale operations at Fusion and Progota to meet a 5x revenue growth target over 2-3 years.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but management focus is on cost optimization through 100% in-house product development.

📈 Strategic Growth

Expected Growth Rate

40-50%

Growth Strategy

The company aims to achieve 5x revenue growth in 2-3 years by scaling its 100% in-house developed Kavach 4.0 safety systems, increasing its stake in Progota to 46.5%, and leveraging Fusion's flex PCB capacity. Growth is driven by a team of 110+ R&D engineers focusing on indigenous railway technology and electronics.

Products & Services

Kavach 4.0 safety automation, Brake Interface Units, Driver Displays, Control Computing Units (CCUs), Vehicle Control Units (VCUs), Flex PCBs, and Zero-Emission Propulsion systems for diesel locomotive conversion.

Brand Portfolio

Concord Control Systems, Advanced Rail, Progota, Fusion.

New Products/Services

Kavach 4.0 (RDSO technical prototype clearance received) and Zero-Emission Propulsion systems are expected to be major revenue contributors in the next 24-36 months.

Market Expansion

Targeting the global railway engineering sector and expanding presence in the Indian market through ICF tenders for train sets.

Market Share & Ranking

Aims to become India's largest railway company by 2030 in terms of revenue and technology capability.

Strategic Alliances

Increased stake in Progota to 46.5% and acquired a majority stake in Fusion to vertically integrate electronics manufacturing.

🌍 External Factors

Industry Trends

The Indian railway industry is undergoing a massive transformation with a focus on safety (Kavach) and indigenous manufacturing. The market is growing as the government pushes for 100% local technology, positioning Concord as a key player due to its in-house R&D capabilities.

Competitive Landscape

Competes with other railway technology providers, but maintains an edge through vertical integration and in-house electronics assembly.

Competitive Moat

100% in-house R&D for products like Kavach 4.0 creates a significant cost advantage and reduces dependency on external technology providers, making the company more agile in meeting RDSO standards compared to competitors.

Macro Economic Sensitivity

Sensitive to government infrastructure spending and national railway policy changes.

Consumer Behavior

Not applicable as the company is B2B/B2G focused on railway infrastructure.

⚖️ Regulatory & Governance

Industry Regulations

Operations are strictly governed by RDSO (Research Designs and Standards Organisation) technical clearances and prototype approvals, such as the Kavach 4.0 clearance received in H1 FY26.