EXICOM - Exicom Tele-Sys.

📊 NSE: EXICOM 🏢 Electric Equipment 📅 Last Updated: 12/13/2025 22:01

💰 Financial Performance

Revenue Growth by Segment

In Q2 FY26, the Critical Power segment grew 53% YoY to INR 161.5 Cr, while the EVSE (EV Charger) segment grew 55% YoY to INR 66.9 Cr. Total standalone revenue reached INR 228.4 Cr, representing a 54% YoY increase and a 52% QoQ increase.

Geographic Revenue Split

Not disclosed in available documents, though the company mentions operations in Southeast Asia and international demand for over 50,000 chargers sold in FY25.

Profitability Margins

Standalone Gross Margin declined to 26.4% in Q2 FY26 from 32.0% in Q2 FY25 due to a shift in product mix toward lower-margin lithium batteries. Standalone Adjusted PAT margin stood at 2.6% (INR 5.92 Cr) for Q2 FY26.

EBITDA Margin

Standalone Adjusted EBITDA margin improved to 6.6% (INR 15.1 Cr) in Q2 FY26 from 4.0% (INR 6.0 Cr) in Q2 FY25, driven by higher revenue scale. However, consolidated EBITDA remains negative at -11.6% (Loss of INR 32.7 Cr) due to the Tritium acquisition.

Capital Expenditure

The company is investing in a new manufacturing facility in Hyderabad featuring SMT lines; trial production is scheduled for November 2025 with commercial production starting January 2026 to enhance capacity and yield.

Credit Rating & Borrowing

CARE Ratings assigned a rating of CARE BBB+ / CARE A2, currently placed on 'Rating Watch with Developing Implications' with a Negative Outlook due to the Tritium acquisition's impact on liquidity and debt repayment.

⚙️ Operational Drivers

Raw Materials

Lithium batteries (significant cost driver with lower margins) and SMT (Surface Mount Technology) components for power electronics manufacturing.

Capacity Expansion

Current capacity not specified in MT/units, but the company is expanding via the Hyderabad plant (commercial Jan 2026) to step up manufacturing technology and resource efficiency.

Raw Material Costs

Raw material costs are impacted by a shift toward lithium batteries, which carry lower margins than traditional products, contributing to a gross margin compression from 32.7% in Q1 FY26 to 26.4% in Q2 FY26.

Manufacturing Efficiency

The new Hyderabad SMT line is expected to yield better output from fewer resources, improving production efficiency starting in the next financial year.

📈 Strategic Growth

Expected Growth Rate

54%

Growth Strategy

Growth is targeted through the BharatNet project (milestone deliveries started), expansion into electric utilities for SCADA network power systems, and the integration of the Tritium acquisition to capture international EV market share. The company is also leveraging a strong order backlog of over INR 1,400 Cr.

Products & Services

DC power systems, Lithium batteries, EV chargers (AC and DC), V2G (Vehicle-to-Grid) solutions, and SCADA network protection systems.

Brand Portfolio

Exicom, Tritium.

New Products/Services

V2G-ready chargers and Plug-and-Charge compatible systems; diversification into electric utilities is expected to add a few percentage points to revenue.

Market Expansion

Targeting the electric utility segment and expanding manufacturing footprint in Hyderabad to support both domestic and export demand.

Strategic Alliances

Strategic partnerships within the EV ecosystem are used to influence regulatory changes and strengthen market positioning.

🌍 External Factors

Industry Trends

The EV market shows robust growth with over 50,000 chargers sold, but industry tower roll-out growth has slowed to 3.8% YoY compared to an 8% 5-year CAGR. The industry is shifting toward V2G and integrated power solutions.

Competitive Landscape

Intense competition in the EV charger segment from domestic and international players is causing price erosion.

Competitive Moat

Moat is built on long-standing relationships with major telecom companies and a diversified product portfolio in power electronics. This is sustainable due to high switching costs in critical infrastructure and established manufacturing capabilities.

Macro Economic Sensitivity

Sensitive to changes in government EV infrastructure regulations and economic conditions affecting supply-demand in domestic and overseas markets.

Consumer Behavior

Sustained demand for EV chargers from both domestic and international customers, though price sensitivity is increasing due to market competition.

Geopolitical Risks

Geographic diversification is used as a strategy to reduce dependency on any single jurisdiction and mitigate regulatory risks.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to EV infrastructure regulations, government tax structures, and telecom project rules (e.g., BharatNet approvals).

Environmental Compliance

The company maintains a Business Responsibility and Sustainability Report (BRSR) and focuses on EV infrastructure which aligns with green energy regulations.

Legal Contingencies

The company reports no material weaknesses in internal controls over financial reporting; specific pending court case values are not disclosed.

⚠️ Risk Analysis

Key Uncertainties

The Tritium acquisition poses a risk of continued consolidated losses (How: integration costs and subdued performance; Why: expected to pressure EBITDA for the next 4 quarters).