28-Oct-2026 18:33:15
VIVID ELECTROMECH H1 FY27 CONCALL: MANAGEMENT GUIDES 35–40% FY27 REVENUE GROWTH, TARGETS ~₹300 CR REVENUE, 3X MANUFACTURING CAPACITY & STRONG H2 EXECUTION
• MANAGEMENT REITERATES FY27 REVENUE GROWTH GUIDANCE OF 35–40% YOY, SUPPORTED BY STRONG DATA CENTER DEMAND, INFRASTRUCTURE PROJECTS, EXPORTS & EXISTING ORDER BOOK EXECUTION • MANAGEMENT REMAINS CONFIDENT ABOUT AN APPROXIMATELY ₹300 CR FY27 REVENUE AMBITION, ALTHOUGH THE FORMALLY REITERATED GUIDANCE IS 35–40% YOY GROWTH • MANAGEMENT EXPECTS H2 FY27 REVENUE TO BE SIGNIFICANTLY STRONGER THAN H1, WITH HISTORICAL SECOND-HALF REVENUE TYPICALLY APPROXIMATELY 2X FIRST-HALF LEVELS • MANAGEMENT EXPECTS H2 FY27 EBITDA MARGINS TO REMAIN BROADLY COMPARABLE TO H2 FY26, SUPPORTED BY HIGHER REVENUE, OPERATING LEVERAGE & IMPROVING PRODUCT MIX • MANAGEMENT PLANS TO TRIPLE ANNUAL MANUFACTURING CAPACITY FROM 7,500 TO 22,500 VERTICALS THROUGH THE ADDITION OF 15,000 VERTICALS AT ITS NEW AMBERNATH FACILITY • MANAGEMENT TARGETS INITIAL COMMERCIAL DISPATCHES FROM AMBERNATH IN NOVEMBER 2026, WITH PHASE 2 MANUFACTURING WORKS EXPECTED TO BE COMPLETED BY DECEMBER 2026 • MANAGEMENT EXPECTS FULL AMBERNATH CAPACITY UTILIZATION TO RAMP UP OVER APPROXIMATELY 12–18 MONTHS, SUPPORTED BY AUTOMATION, ROBOTIC FABRICATION & IN-HOUSE TESTING • MANAGEMENT EXPECTS FRESH ORDER BOOKING MOMENTUM TO ACCELERATE POTENTIALLY FROM JANUARY 2027, AFTER PRIORITIZING EXECUTION OF EXISTING CUSTOMER ORDERS • MANAGEMENT EXPECTS WORKING CAPITAL & CASH CONVERSION TO IMPROVE THROUGH ENHANCED BANK GUARANTEES, LC-BACKED PAYMENT TERMS & FASTER CUSTOMER COLLECTIONS • H1 FY27 REVENUE GREW 29.7% YOY TO ₹91.53 CR FROM ₹70.57 CR, DRIVEN BY DATA CENTER PROJECTS, INFRASTRUCTURE DEMAND & EXPORT EXECUTION • H1 EBITDA SURGED 37.5% YOY TO ₹19 CR, WHILE EBITDA MARGIN EXPANDED 113 BPS TO 20.62% FROM 19.49% • H1 PAT INCREASED 38.5% YOY TO ₹13.08 CR FROM ₹9.44 CR, WITH PAT MARGIN AT APPROXIMATELY 14.2% • EXECUTABLE ORDER BOOK STOOD AT ₹307 CR AS OF OCTOBER 26, 2026, PROVIDING STRONG REVENUE VISIBILITY WITH TYPICAL EXECUTION CYCLES OF 2–9 MONTHS • DATA CENTER ORDERS CONTRIBUTED ₹115 CR TO THE ORDER BOOK, FOLLOWED BY METRO RAIL AT ₹46 CR & OTHER INDUSTRIES AT ₹146 CR • EXPORT ORDER BOOK REACHED APPROXIMATELY ₹66 CR, REPRESENTING AROUND 22% OF TOTAL ORDERS, WITH STRONG DEMAND FROM AFRICAN MARKETS • ORDER BOOK SPANS 43 CUSTOMERS, WITH EXISTING CUSTOMERS CONTRIBUTING 89% OF ORDER VALUE & NEW CUSTOMERS ACCOUNTING FOR 11% • DATA CENTERS CONTRIBUTED APPROXIMATELY 52% OF H1 REVENUE, MAKING THEM THE LARGEST END-USER SEGMENT, SUPPORTED BY CLOUD COMPUTING, AI & DIGITAL INFRASTRUCTURE INVESTMENTS • MAHARASHTRA ACCOUNTED FOR APPROXIMATELY 77% OF REVENUE, WHILE EXPORTS CONTRIBUTED AROUND 9%, HIGHLIGHTING BOTH GEOGRAPHIC CONCENTRATION & INTERNATIONAL GROWTH POTENTIAL • COMPANY CONTINUES TO SUPPLY ELECTRICAL PANELS & CUSTOMIZED POWER DISTRIBUTION UNITS TO MAJOR DATA CENTER OPERATORS INCLUDING STT GLOBAL DATA CENTRES, CTRLS DATACENTERS & ADANICONNEX • MANAGEMENT IS PRIORITIZING SHORTER-CYCLE PANEL & PDU PROJECTS WHILE AVOIDING SELECT LARGE, LONG-DURATION CONTRACTS EXPOSED TO RAW MATERIAL PRICE VOLATILITY • H1 EXPORT REVENUE REACHED APPROXIMATELY ₹8.1 CR, SIGNIFICANTLY EXCEEDING THE ENTIRE FY26 EXPORT REVENUE OF ₹2.5 CR • EXPORT EXPANSION IS FOCUSED ON TANZANIA, KENYA, MALI, BURKINA FASO & GHANA, WITH LETTER-OF-CREDIT-BACKED ORDERS SUPPORTING PAYMENT SECURITY • MANAGEMENT INDICATED EXPORT CONTRACTS GENERALLY REQUIRE AT LEAST 10% ADVANCE PAYMENT, WITH THE BALANCE TYPICALLY SETTLED THROUGH 60–90-DAY LETTERS OF CREDIT • COMPANY IS INCREASING THE CONTRIBUTION OF PROPRIETARY V-SET PANELS & POWER DISTRIBUTION UNITS, WHICH MANAGEMENT BELIEVES OFFER BETTER PROCUREMENT FLEXIBILITY & HIGHER MARGINS THAN OEM-BRANDED PRODUCTS • MANAGEMENT INDICATED THAT THE REVENUE SHARE OF ABB ARTU K PRODUCTS HAS DECLINED AS PROPRIETARY PANEL DESIGNS GAIN TRACTION, ALTHOUGH THE CURRENT PRODUCT-WISE REVENUE SPLIT WAS NOT DISCLOSED • COMPANY INTRODUCED 800V LOW-VOLTAGE PANELS TYPE-TESTED AT CPRI BHOPAL UNDER IEC 61439, EXPANDING ITS TECHNICAL PRODUCT PORTFOLIO • COMPANY ACQUIRED A 99% PARTNERSHIP INTEREST IN MECHTECH INFRA SOLUTION, A SIEMENS-LICENSED SIEPAN 8PU SWITCHBOARD PARTNER • H1 FY27 OPERATING CASH FLOW REMAINED NEGATIVE AT ₹55.49 CR DESPITE ₹13.08 CR PAT, REFLECTING INVENTORY BUILDUP, ADVANCES, SUPPLIER PAYMENTS & COLLECTION DELAYS • TRADE RECEIVABLES STOOD AT ₹119.75 CR VS ₹116.50 CR IN MARCH 2026, WHILE INVENTORY INCREASED TO ₹17.29 CR FROM ₹6.66 CR • MANAGEMENT IS NEGOTIATING LC-BACKED PAYMENT TERMS COVERING UP TO 90% OF CERTAIN PROJECT VALUES, POTENTIALLY ACCEPTING APPROXIMATELY 25 BPS MARGIN SACRIFICE TO ACCELERATE CASH COLLECTIONS • TOTAL BORROWINGS DECLINED TO ₹24.27 CR FROM ₹33.30 CR IN MARCH 2026, WHILE SHORT-TERM BORROWINGS REMAIN IMPORTANT FOR WORKING CAPITAL FUNDING • COMPANY INCURRED APPROXIMATELY ₹34 CR CAPEX DURING H1 FY27, PRIMARILY SUPPORTING ITS MANUFACTURING CAPACITY EXPANSION • COMPANY UTILIZED ₹81.64 CR OF ₹104.56 CR IPO FRESH ISSUE PROCEEDS BY SEPTEMBER 2026, WITH ₹22.92 CR REMAINING UNUTILIZED & ₹9 CR REALLOCATED FROM CAPEX TO WORKING CAPITAL • MANAGEMENT EXPECTS EXISTING BANKING FACILITIES, IPO PROCEEDS & WORKING CAPITAL MEASURES TO SUPPORT LIQUIDITY REQUIREMENTS OVER APPROXIMATELY THE NEXT 18 MONTHS • MANAGEMENT REMAINS POSITIVE ON DATA CENTER DEMAND, ₹307 CR ORDER BOOK EXECUTION, EXPORT GROWTH, PROPRIETARY PRODUCT MARGINS & CAPACITY EXPANSION, BUT NEGATIVE OPERATING CASH FLOW, HIGH RECEIVABLES & COMMISSIONING DELAYS REMAIN KEY RISKS KEY MONITORABLE: DELIVERY OF 35–40% FY27 REVENUE GROWTH, PROGRESS TOWARD THE APPROXIMATELY ₹300 CR REVENUE AMBITION, AMBERNATH COMMISSIONING, CONVERSION OF ₹66 CR EXPORT ORDERS & RECOVERY IN OPERATING CASH FLOW. Note: The ₹300 Cr FY27 revenue figure was discussed as an ambition, while 35–40% YoY growth is the clearest formal guidance. Achieving ₹300 Cr would require approximately ₹208.5 Cr revenue in H2 FY27, versus ₹91.53 Cr in H1.
VIVID ELECTROMECH LIMITED