💰 Financial Performance

Revenue Growth by Segment

The company achieved a consolidated revenue of INR 78.74 Cr in FY25, representing a 40% growth over FY24's revenue of INR 56.53 Cr. Growth is primarily driven by the Power Quality Solution (PQS) and Advanced Metering Infrastructure (AMI) verticals, which saw a 90% increase in booked sales to INR 29.48 Cr in the early part of FY26 compared to the same period in the previous year.

Geographic Revenue Split

While specific regional percentages are not fully itemized, operations are concentrated in India with manufacturing plants in Nashik, Maharashtra, and significant project execution in Orissa, such as the Greenfield Street lighting turnkey project under the OUDF PPP program.

Profitability Margins

Net Profit After Tax (PAT) margin improved from 5.10% in FY24 to 5.60% in FY25. Profit Before Tax (PBT) grew by 47% YoY to INR 6.06 Cr in FY25, up from INR 4.12 Cr, driven by operational efficiencies and better control over administrative expenses as the company scales.

EBITDA Margin

Operating margins are targeted to remain above 12.5% for credit rating upgrades; however, the PAT margin currently stands at 5.60% for FY25, up from 5.10% in FY24, reflecting a 50 basis point improvement in core bottom-line efficiency.

Capital Expenditure

The company raised INR 27.48 Cr through an IPO in January 2024 specifically for funding future capital expenditure and working capital requirements. Additionally, INR 15.29 Cr was raised via preferential equity and INR 1.38 Cr via warrants in January 2025 to support expansion.

Credit Rating & Borrowing

CRISIL has assigned a 'Stable' rating. The company maintains a robust capital structure with a gearing ratio of 0.33 times as of March 31, 2024, and an interest coverage ratio of 3.53 times, indicating low reliance on high-cost external debt following the IPO fund infusion.

⚙️ Operational Drivers

Raw Materials

Key components include capacitors, vacuum circuit breakers, vacuum contactors, and smart meter components (electric, gas, and water), which constitute the bulk of the manufacturing cost for their PQS and AMI offerings.

Import Sources

Not explicitly disclosed in available documents, though the company maintains a long-standing technology partnership with TDK for design and component integration.

Key Suppliers

TDK is identified as a primary technology and strategic partner, instrumental in design capabilities and institutional knowledge for power quality solutions.

Capacity Expansion

The company operates two manufacturing plants in Nashik, Maharashtra. Expansion is funded by the INR 27.48 Cr IPO proceeds to increase production of smart meters and power quality systems to meet the projected revenue target of INR 140 Cr by FY26.

Raw Material Costs

Raw material costs are managed through strategic vertical integration and a long-term partnership with TDK, which helps maintain design efficiency and cost control despite the 40% increase in production volume in FY25.

Manufacturing Efficiency

The company is transitioning toward 'future-ready' solutions using grid analytics and smart metering to improve the value-add per unit manufactured.

📈 Strategic Growth

Expected Growth Rate

78%

Growth Strategy

The company plans to achieve its INR 140 Cr revenue target for FY26 (a 78% increase from FY25) by focusing on green energy and DISCOM reform initiatives, which already account for 60% of new orders. Strategy includes scaling the AMI (Smart Metering) vertical and expanding into smart gas and water metering infrastructure.

Products & Services

Automatic Power Factor Correction (APFC) panels, tuned and de-tuned harmonic filters, vacuum circuit breakers, capacitors, vacuum contactors, and advanced metering infrastructure (smart electric, gas, and water meters).

Brand Portfolio

AKANKSHA

New Products/Services

Expansion into Smart Gas Metering and Smart Water Metering Infrastructure is expected to diversify revenue streams beyond traditional power quality solutions.

Market Expansion

Targeting national DISCOM reforms and green energy transitions, with a focus on expanding the 'Smart City' project portfolio across India.

Strategic Alliances

Maintains a critical technology partnership with TDK for design and manufacturing of power quality components.

🌍 External Factors

Industry Trends

The industry is shifting toward smart grids and digital management. AKANKSHA is positioning itself as a 'future-ready' provider by integrating AMI with grid analytics to capture the growing demand for energy efficiency.

Competitive Landscape

Operates in a competitive, tender-driven market for electrical equipment and smart metering, competing with both domestic and international players.

Competitive Moat

The moat is built on 20+ years of promoter experience and a deep technology tie-up with TDK. This is sustainable due to the high technical entry barriers in power quality management and long-term relationships with utility providers.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and DISCOM reform policies, as 60% of new orders are linked to these initiatives.

Consumer Behavior

Shift toward green energy and efficient power consumption is driving utility companies to adopt AKANKSHA's smart metering and harmonic filter solutions.

Geopolitical Risks

Potential trade barriers on electronic components for smart meters could impact the supply chain for the AMI vertical.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by DISCOM reform policies, smart city mandates, and electrical safety/manufacturing standards (ISO 9001:2015).

Environmental Compliance

The company is aligning its infrastructure solutions with ESG (Environmental, Social, and Governance) standards to meet green energy project requirements.

Taxation Policy Impact

Standard Indian corporate tax rates apply; PAT growth of 50.52% in FY25 suggests effective tax management despite scaling operations.

Legal Contingencies

No significant fraud or material legal misstatements were reported in the FY25 audit; however, the company is subject to standard contractual risks inherent in PPP and turnkey projects.

⚠️ Risk Analysis

Key Uncertainties

The primary risk is the large working capital cycle and high debtor levels (specifically from the OUDF project), which could impact liquidity if realizations are delayed by more than 25%.

Geographic Concentration Risk

Significant project concentration in Orissa (OUDF project) and manufacturing concentration in Nashik, Maharashtra.

Third Party Dependencies

High dependency on TDK for technology and design support for its core power quality products.

Technology Obsolescence Risk

Risk of smart meter technology evolving rapidly; the company mitigates this by investing in grid analytics and 'future-ready' digital management systems.

Credit & Counterparty Risk

Exposure to government-linked entities and DISCOMs, which typically have longer payment cycles, leading to high working capital intensity.