💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 25% YoY to INR 78.3 billion in FY25. The Transmission segment grew 40% to INR 41.9 billion, driven by power evacuation needs, while the Generation segment grew 11% to INR 36.4 billion supported by order backlog execution.

Geographic Revenue Split

Domestic revenue accounts for 77% of the total, while Export revenue contributes 23%, representing a 300 basis point increase from 20.1% in FY24 as the company leverages its global manufacturing network.

Profitability Margins

EBITDA margins have shown consistent improvement, rising from 12.7% in FY23 to 15.7% in FY24, and reaching 19.3% in FY25. This trend is driven by a higher mix of services and improved operational efficiency.

EBITDA Margin

EBITDA margin stood at 19.3% for FY25, a 360bps increase YoY. Excluding a 1.3% one-time effect, the normalized EBITDA margin is 18%, reflecting strong core profitability from project execution and service mix.

Capital Expenditure

Not disclosed in absolute INR Cr, but the company is investing in local manufacturing and R&D facilities, maintaining 8 factories and 4 engineering centers to support a 49% growth in order intake.

⚙️ Operational Drivers

Raw Materials

Specific raw materials like copper or steel are not quantified, but 'spare parts' and 'components' for turbines and transformers are critical, with the company emphasizing local manufacturing to manage costs.

Capacity Expansion

Currently operates 8 factories and 4 R&D centers. Scalability is planned through digitalization and operational leverage, ensuring employee costs do not grow linearly with the 25% revenue increase.

Raw Material Costs

Gross margins are reported as sustainable; the business mix has shifted with products increasing to 32% of revenue (up from 27.3%) and projects decreasing to 42.4% (down from 47%).

Manufacturing Efficiency

Operating leverage is expected to improve as volumes increase; the company aims to reduce the proportion of employee costs through a high accent on digitalization and R&D (1,500 employees).

📈 Strategic Growth

Expected Growth Rate

39-40%

Growth Strategy

Growth will be achieved by capitalizing on the Indian 'electrification cycle' and a 49% YoY increase in order intake (INR 131.1 billion). Strategy includes expanding the high-margin service portfolio (25.6% of revenue), targeting a 50% market share in grid stabilization tech like Statcom/FACTS, and increasing export contributions which grew 300bps this year.

Products & Services

Gas turbines, steam turbines, transformers, switchgears, Statcom, FACTS, and specialized engineering/R&D services for global and domestic power plants.

Brand Portfolio

Siemens Energy.

New Products/Services

Statcom and FACTS products, which already hold a 50% market share, are expected to be significant contributors to future intake as renewable energy integration increases.

Market Expansion

Targeting India, Bhutan, Nepal, Maldives, and Sri Lanka, while serving as a global 'competence hub' for engineering and R&D.

Market Share & Ranking

Holds a 50% market share in the Statcom and FACTS segment.

Strategic Alliances

Licensed trademark and technology partnership with Siemens AG.

🌍 External Factors

Industry Trends

The industry is shifting toward 'Renewable plus Coal' solutions, requiring grid stabilization. Transmission demand is growing rapidly, evidenced by the company's 76% growth in transmission orders to INR 84.3 billion.

Competitive Landscape

Competes with GE Vernova and Hitachi, particularly in large-scale HVDC projects and power equipment expansion.

Competitive Moat

Sustainable moat through a 50% market share in specialized grid technology (Statcom) and a large installed base that secures recurring service revenue (25.6% of total revenue).

Macro Economic Sensitivity

Highly sensitive to India's GDP growth (6.6% projected) and the resulting electrification cycle, as industrial electricity consumption is expected to grow from 590 TWh to 1,650 TWh by 2035.

Consumer Behavior

Increased demand for 24/7 power and renewable energy evacuation is driving utilities toward advanced switchgears and transformers.

Geopolitical Risks

Export revenue (23%) is subject to global manufacturing network decisions made at the headquarters level, which considers lead times and factory qualifications globally.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Ind AS 103 for financial reporting following the company's incorporation on February 7, 2024.

Environmental Compliance

Fully committed to 'Zero Harm' safety standards for all employees and contractors; focus on renewable energy evacuation supports national ESG goals.

⚠️ Risk Analysis

Key Uncertainties

The timing of 'big ticket' HVDC orders remains uncertain, which could lead to lumpy order intake. Export growth is also uncertain as it depends on global parent company mandates.

Geographic Concentration Risk

77% of revenue is concentrated in the domestic Indian market, making the company highly dependent on local infrastructure spending.

Third Party Dependencies

Heavy dependency on the parent company for R&D direction, export market access, and the 'Siemens Energy' trademark license.

Technology Obsolescence Risk

Mitigated by employing 1,500 R&D engineers and focusing on digitalization to maintain a competitive edge in turbine and grid technology.