Prostarm Info Systems LimitedCapital Goods & EngineeringPROSTARM
Q1 FY27 concall · earnings callProstarm Info Systems Limited
The company delivered 38% YoY revenue growth in Q1 and maintains a strong order book, but is navigating market headwinds in the utility BESS segment by shifting focus to the commercial and industrial (C&I) space.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue from Operations | ₹76 Cr | +38% YoY growth | |
| EBITDA | ₹7 Cr | — | |
| EBITDA Margin | 8.55% | improvement of 126 bps | |
| Profit After Tax (PAT) | ₹5 Cr | +156% YoY growth | |
| PAT Margin | 6.05% | — | |
| Order Book | approx ₹1,090 Cr | — |
TL;DR
- Revenue for Q1 FY27 was Rs 76 Cr, up 38% YoY, with EBITDA margin improving to 8.55%.
- Order book stands at approx Rs 1,090 Cr, with Energy Storage Systems as the largest component.
- Two new manufacturing facilities (Jhajjar BESS and Gujarat UPS) are set to become operational in H1 FY27.
- Management is shifting BESS strategy away from the stressed utility sector to focus on higher-margin C&I applications.
- Guidance includes minimum 25% revenue growth for FY27 and an EBITDA margin target of 12-13% for the full year.
Said on the call
“So instead of focusing on the utility side of BESS application, we have started focusing on the C&I side of BESS application.”
From the Q&A
| Topic | What management said |
|---|---|
| Q1 Revenue vs Deferred Q4 Orders | Management stated that of the deferred INR 43 Cr (Adani), INR 7 Cr (SAIL), and INR 13 Cr (South Eastern Railway) orders, INR 36 Cr was billed in Q1. The lower sequential revenue (Rs 76 Cr vs Q4's Rs 104 Cr) was attributed to seasonality and the remaining deferred billing. |
| Order Inflow and Book Composition | Excluding a large developer order, the 'in-hand' order book is INR 236 Cr, plus approximately INR 10 Cr/month from dealer business. Post-June, significant new orders have been won. |
| Margin Guidance and Trend | Management reiterated the full-year EBITDA margin guidance of 12-13%, noting Q1 margin is lower due to high fixed-cost-to-turnover ratio. PAT margin for FY27 is expected to be 8.5-9%. |
| Working Capital and Cash Flow | Working capital days improved to 168 days in Q1 from 185 days in Q4 FY26. Cash flow from operations improved to a negative INR 16 Cr from negative INR 49 Cr. The target for March '27 is 120-150 days, with expectations to turn cash flow positive by year-end. |
| BESS Developer Projects (Bihar, KPTCL) | The INR 857 Cr developer projects will not contribute recurring rental revenue in FY27, but EPC billing will appear on the standalone books. The company's first priority is to sell the Karnataka (KPTCL) project, and debt for the Bihar project will be in an SPV, not the flagship company. |
| Jhajjar BESS Facility Outlook | Commissioning was delayed due to a strategic shift from utility to C&I focus and rising costs. FY27 utilization is targeted at 20-25%, with FY28 targeted at 40-50%, generating around INR 500 Cr revenue. At optimal levels, EBITDA margin from this manufacturing is expected to be 14-15%. |
| Future Equity Dilution | Management stated there is no plan for equity dilution for at least the next year, unless required for a major expansion based on market opportunity, which would be a 'healthy dilution'. |
| BESS Market Challenges and Strategy | Management sees continued challenges in the utility BESS sector for the next 6-8 months due to aggressive bidding and geopolitical issues impacting battery imports from China. The company's strategy is to completely avoid the utility segment and focus on the higher-margin, less organized C&I segment. |
Guidance
- Minimum 25% revenue growth targeted for FY27.
- Full-year EBITDA margin target of 12% to 13%.
- FY27 PAT margin expected to be around 8.5% to 9%.
- Target to turn cash flow from operations positive by end of FY27.
- Working capital days target of 120 to 150 days by March '27.
- Jhajjar BESS facility expected to commence production by end of Q2 FY27.
- Gujarat UPS facility expected to commence commercial operations in Q2 FY27.
Source
Summary written from the transcript filed by Prostarm Info Systems Limited for the call held on 13 Aug 2026; published 18 Aug 2026, 21:00 IST.
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