💰 Financial Performance

Revenue Growth by Segment

Standalone total income grew by 59.6% YoY in H1 FY2025-26, reaching INR 317.34 Cr compared to INR 198.81 Cr in H1 FY2024-25. For Q2 FY2025-26, revenue was INR 155.21 Cr, a 42% increase from INR 109.29 Cr in the same quarter previous year.

Profitability Margins

Net Profit Margin for H1 FY2025-26 stood at 6.58% (INR 20.88 Cr profit on INR 317.34 Cr income), showing significant improvement from 6.12% in H1 FY2024-25. Standalone Net Profit grew 71.8% YoY for the half-year period.

EBITDA Margin

EBITDA margin for Q2 FY2025-26 was 8.63%, an improvement of 67 BPS from 7.96% in Q2 FY2024-25. For H1 FY2025-26, EBITDA margin was 8.36%, up 44 BPS from 7.92% YoY.

Capital Expenditure

The company raised INR 174.63 Cr through a rights issue in April 2024 and an additional INR 459.69 Cr through a second rights issue in February 2025. These funds are primarily allocated for margin requirements for bank guarantees/LCs (INR 60 Cr per issue) and general corporate purposes rather than traditional heavy asset capex.

Credit Rating & Borrowing

Monitoring reports were issued by CARE Ratings. While specific interest rate percentages are not disclosed, the company utilized INR 3.78 Cr in Q2 FY2026 for FD margins to secure letters of credit and bank guarantees for operations.

⚙️ Operational Drivers

Raw Materials

Steel, zinc, and aluminum components for transmission towers (estimated to represent 60-70% of total EPC costs based on industry standards for power infrastructure).

Capacity Expansion

The company operates factories in Nashik (Satpur Industrial Complex) and Raipur (Urla Industrial Complex), along with a Testing Station & R&D Center in Igatpuri. Specific capacity figures in MTPA are not disclosed in the provided documents.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company noted that 'cost optimization' contributed to the 67 BPS improvement in EBITDA margins in Q2 FY2025-26.

Manufacturing Efficiency

The company reported 'robust operational performance' and 'efficient execution of its order book,' though specific capacity utilization percentages were not provided.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth is driven by the execution of a healthy order book and expanding opportunities in the transmission and distribution (T&D) space. The company is utilizing proceeds from two rights issues (totaling over INR 630 Cr) to provide the necessary bank guarantee margins and working capital required to bid for and execute larger EPC projects.

Products & Services

Power transmission towers, engineering, procurement, and construction (EPC) services for power lines, and structural testing services.

Brand Portfolio

Jyoti Structures Limited (JSL).

Market Expansion

The company is targeting the expanding Transmission and Distribution (T&D) sector, specifically focusing on infrastructure engineering and power transmission projects.

🌍 External Factors

Industry Trends

The industry is shifting toward higher voltage transmission and renewable energy integration, requiring more robust and technically advanced tower structures. The T&D space is currently in a growth phase due to global energy transition needs.

Competitive Landscape

Operates in the heavy electrical equipment and capital goods sector, competing with other large-scale EPC firms in the power transmission segment.

Competitive Moat

The company's moat is built on its integrated capabilities, including in-house R&D and a specialized testing station at Igatpuri, which are critical for qualifying for high-voltage international and domestic EPC contracts.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and power sector reforms, which drive the demand for new transmission lines.

Consumer Behavior

Not applicable as the company is a B2B/B2G EPC provider.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to technical standards for power transmission and NCLT-approved resolution plan guidelines, as the company is currently implementing payments to operational creditors (INR 0.16 Cr paid in Q2 FY2026) under such a plan.

Taxation Policy Impact

The effective tax rate appears low for the period, with a PBT of INR 10.17 Cr and Net Profit of INR 9.72 Cr in Q2 FY2026, suggesting a tax impact of approximately 4.4%.

Legal Contingencies

The company is fulfilling obligations under an NCLT-approved resolution plan, which includes structured payments to operational creditors, employee dues, and statutory creditors through March 2026.

⚠️ Risk Analysis

Key Uncertainties

The Monitoring Agency noted 'comingling of funds' as the company transfers issue proceeds from monitoring accounts to current accounts for utilization, which creates a risk in tracking the exact end-use of funds.

Third Party Dependencies

High dependency on financial institutions for non-fund-based limits (LCs/BGs), which are essential for project execution.

Technology Obsolescence Risk

Low risk in structural steel, but high requirement for R&D in tower design to handle higher voltages and extreme weather conditions.

Credit & Counterparty Risk

The company is managing legacy credit issues through an NCLT resolution plan, with ongoing payments to operational creditors to restore counterparty trust.