💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew 62.27% YoY to INR 1,680.57 Lakhs in H1 FY26. The Operation & Maintenance (O&M) segment is a primary driver, with a specific project planned for INR 23.20 Cr revenue at a margin of INR 4.20 Cr.

Geographic Revenue Split

100% of operations are concentrated in Gujarat, specifically Palanpur and Surat. Major revenue is derived from state-level utility contracts like GETCO (Gujarat Energy Transmission Corporation).

Profitability Margins

PAT margin significantly improved to 13.42% in H1 FY26 (INR 225.63 Lakhs PAT) compared to 5.04% in H1 FY25. Management targets a sustainable PAT margin of 13.50% for the full year FY26.

EBITDA Margin

EBITDA margin was 23.40% in FY24 and approximately 25% in FY25. Management expects to sustain a 25% EBITDA margin in FY26 through disciplined project execution.

Capital Expenditure

Historical capex includes INR 1.5 Cr for advanced electrical testing machinery from Germany. Capital Work-in-Progress stood at INR 2.33 Cr as of September 30, 2025.

Credit Rating & Borrowing

The company utilized INR 2.85 Cr from IPO proceeds to repay term loans and cash credit, reducing short-term borrowings to just INR 1.90 Lakhs as of September 2025 to lower interest costs.

⚙️ Operational Drivers

Raw Materials

Not applicable (Service Industry). The primary operational cost is employee salary and benefits for technical staff.

Import Sources

Germany (for specialized electrical testing machinery and kits).

Capacity Expansion

Current staff capacity is 120 personnel. Expansion includes obtaining NABL certification for 250 scopes by December 2025 and deploying a new INR 1.5 Cr German testing kit to increase service throughput.

Raw Material Costs

Employee costs are the largest expense, though specific percentage of revenue is not disclosed. Historical PAT was impacted by high depreciation on solar projects.

Manufacturing Efficiency

Operating at peak capacity with 120 staff; efficiency is measured by the number of substations managed (currently 77) and revenue per substation.

Logistics & Distribution

Not applicable (Service Industry).

📈 Strategic Growth

Expected Growth Rate

26%

Growth Strategy

Execution of a INR 64 Cr order book (INR 20 Cr in Yr 1, INR 24 Cr in Yr 2). Growth will be achieved by securing NABL certification for 250 scopes to unlock high-margin (30-35% PAT) contracts with national PSUs like ONGC and BPCL, and utilizing advanced German machinery to increase revenue by INR 0.70-0.75 Cr per annum.

Products & Services

Electrical testing, commissioning, and substation Operation & Maintenance (O&M) services.

Brand Portfolio

Chamunda Electrical.

New Products/Services

NABL-certified specialized testing services, expected to contribute 30-35% PAT margins and increase annual revenue by approximately INR 75 Lakhs.

Market Expansion

Targeting national-level PSUs including ONGC, BPCL, and HPCL following the receipt of NABL certification in December 2025.

Market Share & Ranking

Ranked among the top 3 players in the specialized electrical testing and substation O&M industry, alongside Siemens and Kintec.

🌍 External Factors

Industry Trends

The industry is shifting toward mandatory NABL certification for all PSU contracts. Chamunda is positioning itself as an early adopter among mid-sized players to capture this regulatory shift.

Competitive Landscape

Primary competitors are global giant Siemens and domestic player Kintec.

Competitive Moat

Durable moat through technical expertise and a top 3 market position. NABL certification acts as a significant entry barrier for smaller competitors seeking PSU contracts.

Macro Economic Sensitivity

Highly sensitive to government and PSU infrastructure spending in the power transmission and distribution sector.

Consumer Behavior

Not applicable (B2B/B2G service model).

Geopolitical Risks

Trade barriers or logistics delays in Europe could impact the procurement of critical testing kits from Germany.

⚖️ Regulatory & Governance

Industry Regulations

NABL (National Accreditation Board for Testing and Calibration Laboratories) standards and PSU-specific tendering norms for electrical infrastructure.

Environmental Compliance

Compliance with solar project regulations; historical PAT was negatively impacted by accelerated depreciation required for solar infrastructure.

Taxation Policy Impact

Effective tax rate of approximately 4.1% in H1 FY26. Standard corporate tax rates apply, but historical earnings were shielded by high depreciation on solar assets.

⚠️ Risk Analysis

Key Uncertainties

Sustainability of 25% EBITDA margins post-IPO and the risk of losing major contracts during the annual or biennial tendering cycles.

Geographic Concentration Risk

100% of revenue is concentrated in Gujarat, making the company vulnerable to state-specific policy changes or economic shifts.

Third Party Dependencies

Significant dependency on GETCO for the current order book and German manufacturers for critical testing technology.

Technology Obsolescence Risk

Risk of obsolescence if the company fails to maintain NABL accreditation or upgrade to the latest testing standards required by national PSUs.

Credit & Counterparty Risk

Trade receivables increased 64.6% YoY to INR 8.76 Cr in September 2025, indicating potential working capital pressure or collection delays from PSU clients.