💰 Financial Performance

Revenue Growth by Segment

Overall revenue grew by 58.5% in FY25 to INR 124.34 Cr from INR 78.46 Cr in FY24. H1 FY26 revenue saw a 7.8% YoY dip to INR 46.28 Cr due to prolonged monsoon delaying field execution. The company targets a 30-40% increase in turnover for the full year FY26 compared to FY25.

Geographic Revenue Split

Not disclosed in available documents; however, the company operates across India with approvals for national utility rollouts like the RDSS scheme.

Profitability Margins

Gross Profit Margin improved to 38.8% in H1 FY26 from 36.2% in H1 FY25 (+261 bps). Net Profit Margin increased to 13.5% in H1 FY26 from 8.0% in H1 FY25 (+549 bps) due to optimization of in-house processes and reduced job work.

EBITDA Margin

EBITDA Margin stood at 18.4% in H1 FY26, up from 13.8% in H1 FY25 (+459 bps). Core profitability improved as EBITDA grew 22.9% YoY to INR 8.51 Cr despite lower revenues, driven by a higher share of premium smart meters.

Capital Expenditure

The company is investing in a new 60,000 sq. ft. fully automated facility to complement its existing 36,000 sq. ft. plant. Intangibles under development (R&D) stood at INR 1.92 Cr as of H1 FY26, with 70-80% (INR 1.4-1.5 Cr) being capitalized employee costs.

Credit Rating & Borrowing

Rated by CRISIL Ratings. Interest costs decreased by 22.2% YoY to INR 1.0 Cr in H1 FY26 following IPO proceeds utilization. Total borrowings include Long-term debt of INR 16.31 Cr and Short-term debt of INR 14.03 Cr.

⚙️ Operational Drivers

Raw Materials

Specific raw material names are not disclosed, but Cost of Goods Sold (COGS) represented 61.2% of revenue in H1 FY26 (INR 28.32 Cr), down from 63.8% in H1 FY25.

Capacity Expansion

Current facility is 36,000 sq. ft. with a revenue potential of INR 300-350 Cr. Planned expansion includes a new 60,000 sq. ft. fully automated plant, targeting a 50% increase in capacity to support top-line growth of 45-50% by FY27.

Raw Material Costs

COGS was INR 28.32 Cr in H1 FY26, a decrease of 11.5% YoY. Procurement strategies have shifted toward in-house manufacturing and reducing job work to capture higher margins.

Manufacturing Efficiency

Capacity utilization was described as 'minimal' recently due to external factors like monsoons, but automation is expected to drive 18% sustainable EBITDA margins.

📈 Strategic Growth

Expected Growth Rate

35-40%

Growth Strategy

Growth will be driven by the AMISP expansion (Advanced Metering Infrastructure Service Provider) with a revenue potential of INR 300-400 Cr, entry into gas and water metering, and the execution of a current INR 416 Cr order book. The company is also bidding for an additional INR 600 Cr in contracts.

Products & Services

Static Watt Hour Energy Meters (Single and Three phase), Smart Meters, eco-friendly emergency lights, MCB, UPS, gas meters, water meters, and railway underslung chargers.

Brand Portfolio

EEPL (Eppeltone Engineers Limited).

New Products/Services

Gas meters (testing ending Q3 FY26), water meters (testing completed), and railway equipment/chargers. These are expected to contribute small revenue in FY26 and scale substantially in FY27.

Market Expansion

Expansion into the AMISP service model under the RDSS scheme (INR 2.5 lakh Cr government outlay) and targeting the smart utility flagship program as a bronze partner.

Market Share & Ranking

Not disclosed, but the company is a major player in the Indian smart meter market, which is projected to reach ~$3,180 Mn by 2032.

Strategic Alliances

Bronze partner with the 'Smart Utility' flagship program of the Government of India.

🌍 External Factors

Industry Trends

The Indian smart meter market is growing at a 34.6% CAGR (2024-2032). The industry is shifting from simple energy meters to Advanced Metering Infrastructure (AMI) and service-based models (AMISP).

Competitive Landscape

Operates in a competitive landscape of meter manufacturers and service providers bidding for RDSS tenders; eligibility for AMISP tenders is expected by February 2026.

Competitive Moat

Moat is built on in-house R&D capabilities, DSIR certification, and being an approved supplier for critical PSUs like Power Grid and NTPC, which requires stringent factory approvals.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending, specifically the RDSS scheme and the National Smart Grid Mission.

Consumer Behavior

Shift toward automated billing and smart grids is driving utility demand for smart meters.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with RDSS (Revamped Distribution Sector Scheme) guidelines and REC (Rural Electrification Corporation) application requirements for AMISP status.

Environmental Compliance

Implemented 'Green Initiative' for electronic delivery of documents; manufactures eco-friendly emergency lights.

Taxation Policy Impact

Tax expense for H1 FY26 was INR 0.81 Cr on PBT of INR 7.07 Cr (effective rate ~11.5%). The company benefits from eligible tax deductions and IPO issue expense offsets.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the timing of AMISP approval (expected within 30-40 days of Nov 2025) and the success rate of the INR 600 Cr in pending bids.

Geographic Concentration Risk

Not disclosed, but field execution is subject to regional weather patterns (monsoons).

Third Party Dependencies

Dependency on government clearances and utility approvals for field-level execution of the INR 416 Cr order book.

Technology Obsolescence Risk

Mitigated by in-house R&D focusing on next-gen smart, gas, and water meters to stay ahead of the 34.6% industry CAGR.

Credit & Counterparty Risk

High receivables (99.22% of sales in H1 FY26) indicate significant credit exposure to utility clients, though management expects this to normalize by year-end.