PROSTARM - Prostarm Info

📊 NSE: PROSTARM 🏢 Other Electrical Equipment 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total consolidated revenue grew 35.12% to INR 345.89 Cr in FY25. Segment performance varied: End User Computing grew 5068% to INR 94.06 Cr; Third-party Products grew 45.3% to INR 111.14 Cr; Manufactured Products declined 15.8% to INR 121.42 Cr; Solar EPC declined 18.1% to INR 19.40 Cr; and Value-added Services declined 60.1% to INR 4.63 Cr.

Geographic Revenue Split

Not disclosed in available documents; however, manufacturing operations are concentrated in Maharashtra with units in Pune and Navi Mumbai.

Profitability Margins

Profitability remained stable but saw slight compression; PBILDT margin was 13.13% in FY25 compared to 13.75% in FY24. PAT margin stood at approximately 8.82% in FY25 (INR 30.51 Cr PAT on INR 345.89 Cr revenue).

EBITDA Margin

EBITDA margin was 13.13% in FY25, a decrease of 62 basis points from 13.75% in FY24. EBITDA grew 31.47% in absolute terms to INR 49.19 Cr, driven by the massive scale-up in the End User Computing segment.

Capital Expenditure

Not disclosed in absolute INR Cr for future periods, but the company operates two manufacturing units in Maharashtra, with Unit II operated under its wholly-owned subsidiary, Prostarm Energy Systems Private Limited.

Credit Rating & Borrowing

CARE Ratings notes a comfortable financial risk profile following the June 2025 IPO. Positive rating triggers include sustaining Total Operating Income above INR 750 Cr and PBILDT margins above 14%.

⚙️ Operational Drivers

Raw Materials

Not disclosed in available documents; the company focuses on power solutions, storage innovations, and end-user computing hardware.

Capacity Expansion

The company operates Manufacturing Unit I in Pune and Manufacturing Unit II in Maharashtra under a subsidiary. Specific capacity in units or MT is not disclosed.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company is exposed to foreign exchange risk on imports, though the impact is currently deemed non-material.

Manufacturing Efficiency

Return on Capital Employed (ROCE) was healthy at approximately 30% in FY25, indicating efficient use of capital in operations.

📈 Strategic Growth

Expected Growth Rate

35.12%

Growth Strategy

Growth is driven by a robust order book of approximately INR 1,100 Cr as of September 2025. The strategy involves scaling up the End User Computing segment (which grew from INR 1.82 Cr to INR 94.06 Cr in one year) and executing higher-value projects in Solar EPC and power storage.

Products & Services

Power solutions, storage innovations, Solar EPC services, End User Computing hardware, and Value-added services.

Brand Portfolio

Prostarm

New Products/Services

The company is focusing on storage innovations and expanded its End User Computing segment, which now contributes 26.8% of total consolidated revenue.

Market Expansion

The company listed on NSE and BSE in June 2025 to improve its financial profile and support expansion into critical industries like Healthcare and BFSI.

Market Share & Ranking

Not disclosed in available documents; described as operating in a highly competitive and fragmented industry.

🌍 External Factors

Industry Trends

The industry is shifting toward renewable energy and digital infrastructure. Prostarm is positioning itself through Solar EPC and End User Computing to capture this 35% YoY growth trend.

Competitive Landscape

Faces intense competition from large multinational corporations and fragmented domestic players in the power and IT infrastructure space.

Competitive Moat

The moat is built on long-standing relationships with marquee clients like the Tata and Adani groups and an established presence in critical sectors like Defense (DRDO) and Banking (RBI). Sustainability depends on maintaining these high-entry-barrier certifications.

Macro Economic Sensitivity

Sensitive to economic and political conditions in India and volatility in interest rates which impact customer purchasing power.

Consumer Behavior

Increased demand for digital infrastructure and connected systems is driving the 50x growth in the End User Computing segment.

Geopolitical Risks

Regulatory exposure to shifts in energy policies and compliance norms could impact the viability of Solar EPC and power storage projects.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by energy policies and compliance norms; the company must adhere to SEBI Listing Regulations following its June 2025 listing.

Legal Contingencies

No penalties or strictures have been imposed by stock exchanges, SEBI, or any statutory authority regarding capital markets in the last three years.

⚠️ Risk Analysis

Key Uncertainties

Technology obsolescence in power solutions and cybersecurity risks associated with connected digital infrastructure could impact operations by up to 100% of affected product lines.