💰 Financial Performance

Revenue Growth by Segment

Total revenue grew by 73.2% YoY, reaching approximately INR 171.28 Cr in FY25 compared to INR 98.89 Cr in FY24. Segment-specific percentage growth for Solar EPC and BESS is not explicitly disclosed, but the company anticipates a 50% overall YoY revenue growth driven by these new segments.

Profitability Margins

Net profit margin improved from 5.95% in FY24 to 6.86% in FY25. Profit before tax (PBT) margin was 9.31% in FY25, up from 7.82% in FY24, reflecting improved operational efficiency despite a 70.4% increase in total expenses.

EBITDA Margin

EBITDA margin is estimated at 11.4% for FY25 (INR 19.52 Cr) compared to 12.5% in FY24 (INR 12.36 Cr). While absolute EBITDA grew by 57.9%, the margin slightly compressed due to the rapid scale-up in execution capacity and higher finance costs which rose 28.7% YoY.

Capital Expenditure

Net cash outflow from investing activities was INR 11.84 Cr in FY25, a significant increase from INR 0.16 Cr in FY24. This includes INR 0.31 Cr for Property, Plant, and Equipment and a net investment of INR 1.08 Cr (after redemptions) to support the expansion into Solar EPC and BESS manufacturing.

Credit Rating & Borrowing

Not disclosed in available documents. However, finance costs were INR 3.38 Cr in FY25 on total borrowings of INR 18.09 Cr, suggesting an effective interest rate of approximately 18.7%.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include electrical components, copper, and steel (required for electrical panels and compact substations). The exact percentage of total cost for each is not disclosed.

Capacity Expansion

PIGL is currently scaling operations to qualify for high-value contracts of INR 300-350 Cr by 2025. The acquisition of Peaton Electrical has expanded manufacturing capacity for electrical panels and compact substations to support this growth.

Raw Material Costs

Total expenses, which include raw material consumption, rose 70.4% to INR 155.33 Cr in FY25. The company is focusing on operational excellence to manage these costs as it scales.

📈 Strategic Growth

Expected Growth Rate

50%

Growth Strategy

The 50% CAGR will be achieved through a phased growth strategy: entering the Solar EPC and BESS (Battery Energy Storage Systems) markets, acquiring Peaton Electrical to internalize panel manufacturing, and qualifying for larger-scale contracts valued between INR 300-350 Cr.

Products & Services

Solar EPC services, Battery Energy Storage Systems (BESS), Electrical Panels, and Compact Substations.

Brand Portfolio

PIGL, Peaton Electrical.

New Products/Services

New launches include Solar EPC and BESS solutions, which are expected to be the primary drivers of the 50% revenue growth forecast.

Market Expansion

PIGL is expanding its market presence by entering the renewable energy and storage sectors, targeting larger infrastructure projects by 2025.

Strategic Alliances

The company operates a 50% joint venture named PIGL GEPL JV, which contributed INR 1.135 Lacs to consolidated profits in FY25.

🌍 External Factors

Industry Trends

The industry is shifting toward renewable energy and energy storage. PIGL is positioning itself as a technical player in Solar EPC and BESS to capitalize on the Indian government's green energy targets.

Competitive Landscape

The company competes in the highly technical electrical instrumentation and renewable EPC sector, where qualification for high-value contracts (INR 300 Cr+) is a significant barrier to entry.

Competitive Moat

PIGL's moat is built on its integrated model—combining technical EPC services with in-house manufacturing of electrical panels (via Peaton). This reduces third-party dependency and improves project execution timelines.

Macro Economic Sensitivity

The business is sensitive to government infrastructure spending and renewable energy policies, which drive the demand for Solar EPC and BESS.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by Ind AS 115 for revenue recognition on an 'over the time' basis and SEBI (Listing Obligations and Disclosure Requirements) Regulations for corporate governance.

Taxation Policy Impact

The company's effective tax rate for FY25 was 26.3%, with a total tax expense of INR 4.20 Cr on a PBT of INR 15.95 Cr.

Legal Contingencies

The company reported zero pending litigations that would impact its financial position as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Working capital management is a critical risk; cash flow from operations turned negative at INR -39.89 Cr in FY25, primarily due to a 96.7% increase in trade receivables.

Third Party Dependencies

The company is reducing third-party dependency for critical components by acquiring Peaton Electrical for in-house panel manufacturing.

Technology Obsolescence Risk

The pivot to BESS and Solar EPC is a proactive measure to address the transition from traditional power instrumentation to renewable energy technologies.

Credit & Counterparty Risk

Trade receivables rose to INR 60.45 Cr in FY25, representing 35.3% of total revenue, which indicates a high concentration of credit risk and potential impact on liquidity if collections are delayed.