SCHNEIDER - Schneider Elect.

📊 NSE: SCHNEIDER 🏢 Electric Equipment 📅 Last Updated: 12/14/2025 12:57

💰 Financial Performance

Revenue Growth by Segment

Revenue grew 20.1% YoY in FY 2024-25 to INR 2,661.28 Cr. Segment mix as of Q2 FY26 is Systems (65%), Transactional (20%), and Services (15%). H1 FY26 order booking grew 28% YoY, while sales grew 6.6% YoY.

Geographic Revenue Split

Exports contribute approximately 12% of total revenue (calculated as 23% of the 65% Systems segment). The remaining 88% is derived from the domestic Indian market.

Profitability Margins

Gross material margin improved to 39.7% in Q2 FY26, up 0.9 percentage points from 38.8% YoY. Profit After Tax (PAT) margin for Q2 FY26 was 8.0%, down from 9.0% YoY.

EBITDA Margin

EBITDA margin for FY 2024-25 was 15.3% (INR 407.34 Cr), up from 13.8% YoY. For Q2 FY26, EBITDA margin was 13.6%, a slight decrease of 0.3 percentage points YoY.

Capital Expenditure

The company announced a forward-looking Capex plan of INR 200.8 Cr to expand manufacturing of Panels and Breakers at its Vadodara and Kolkata plants.

Credit Rating & Borrowing

Finance costs reduced by 13.4% YoY in H1 FY26 to INR 22 Cr, down from INR 25 Cr, indicating improved debt management or lower borrowing requirements.

⚙️ Operational Drivers

Raw Materials

Material costs represent 61.0% of sales as of Q2 FY26. Specific raw materials include components for Panels and Breakers. Synergy on raw material supply is a key focus for productivity.

Capacity Expansion

Current capacity utilization is estimated at 90-95%. Planned expansion includes an INR 200.8 Cr investment at Vadodara and Kolkata plants to enhance production of Panels and Breakers.

Raw Material Costs

Material costs were INR 397 Cr in Q2 FY26, representing 61% of revenue. The company is focusing on raw material supply synergies to maintain flat gross margins despite inflationary pressures.

Manufacturing Efficiency

The company is targeting operating leverage by aiming for revenue growth that exceeds the 9-10% growth rate of fixed and employee costs.

📈 Strategic Growth

Expected Growth Rate

10-15%

Growth Strategy

Growth will be achieved through an INR 200.8 Cr capacity expansion at Vadodara and Kolkata, a strategic shift toward high-margin Services (15% of mix) and Transactional (20% of mix) businesses, and targeting high-growth sectors including Data Centers, Renewables, Power Grids, and Mobility.

Products & Services

Electrical Panels, Circuit Breakers, Power Grid infrastructure systems, Data Center solutions, and related maintenance and transactional services.

Brand Portfolio

Schneider Electric

New Products/Services

Focus on innovation-led strategy with new product development and technological advancements in digital capabilities for the semiconductor and digital infrastructure ecosystem.

Market Expansion

Expansion of manufacturing capabilities at Vadodara and Kolkata to serve rising market demand with speed and scale.

Strategic Alliances

The company is part of the Schneider Electric group, which is investing a total of INR 3,200 Cr in India across various entities.

🌍 External Factors

Industry Trends

The industry is evolving toward digital infrastructure and green energy, with strong demand growth in Data Centers, Renewables, and Power Grid modernization.

Competitive Landscape

Competitors in the field are achieving operating leverage, which Schneider aims to match by accelerating revenue growth beyond its 10% fixed cost inflation.

Competitive Moat

Sustainable advantages include parent group synergies, an innovation-led product strategy, and a growing high-margin services business (15% of revenue) which provides recurring income.

Macro Economic Sensitivity

Sensitivity to inflation, with fixed and employee costs growing at a range of 9% to 10% annually.

Consumer Behavior

Shift toward semiconductor and digital infrastructure ecosystems is driving robust order bookings, which grew 13.4% YoY to INR 2,693 Cr in FY 2024-25.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to GST Act compliance; recent issues include wrong availment of ineligible Input Tax Credit (ITC).

Environmental Compliance

The company focuses on generating positive environmental and social outcomes through breakthrough technologies, though specific ESG costs are not disclosed.

Taxation Policy Impact

Normal Effective Tax Rate (ETR) applies, with permanent disallowances limited to CSR expenses as per law.

Legal Contingencies

Pending GST demand for FY 2018-19, 2021-22, and 2022-23 totaling INR 56.23 Lakhs (INR 28.11 Lakhs tax and INR 28.11 Lakhs penalty) plus interest.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the cyclical nature of the project business, where long lead times can cause a disconnect between order growth (28%) and revenue realization (6.6%).