ADVAIT - ADVAIT ENERGY TRANSITIONS LIMITED Share Price

Management provided an optimistic outlook for Advait Energy Transitions Limited, projecting revenue growth of 40% to 45% for the financial year 2026. The order book maintained a robust milestone of INR 1,000 crores, reflecting a 132% year-over-year growth, predominantly driven by the Power Transmission Solutions (PTS) division which contributed 84% of this figure.

Key highlights presented included:

1. Consolidated revenue for the nine months ended December 31, 2025, stood at INR 486 crores, marking a remarkable 138% YoY growth.
2. EBITDA rose to INR 55 crores, representing a 74% increase YoY, with associated margins at 11%.
3. Profit after tax (PAT) escalated to INR 35 crores, an 80% YoY growth, with PAT margins at 7%.
4. Operational successes included the completion of critical EPC projects ahead of schedule, further strengthening execution credibility.

Additionally, the company emphasized its strategy to prioritize profitable growth over mere revenue expansion. They indicated plans to accelerate long-term growth by establishing a Giga-factory complex for the New and Renewable Energy division by mid-2028.

Future plans also included:

• Capital expenditure initiatives of about INR 200 crores for the electrolyzer plant, anticipated to generate revenues between INR 250 crores to INR 300 crores post-expansion.
• A diverse tender pipeline aligning with expectations for consistent cash flow and order inflows, primarily in the EPC segment.
• Significant focus on expanding capabilities in both conventional power transmission and renewable energy sectors.

Overall, management's projections underscore a strong confidence in sustaining growth momentum while navigating a favorable market landscape.

1. Question from Shashank Jha: "How is order buildup happening in the NRE division? You reported substantial orders from the Transmission division, but none from the New and Renewable Energy division."

   Answer: "Thank you for your question, Shashank. You're correct that our recent focus on the Power Transmission Solutions (PTS) division has created a strong order base. However, we're also anticipating a surge in orders for the NRE division in Q4 of this year and Q1 of next year. We're being selective to ensure the quality of our order book remains high."

2. Question from Shashank Jha: "What kind of revenue impact do you expect from the recent order with Adani regarding Balance of Plant work?"

   Answer: "The recent order mainly involves Balance of Plant work, excluding solar panel supply. We expect significant revenue recognition from this contract by March, but full EPC orders will come as we enhance our qualifications in that segment. Revenue from these projects is contingent on our capabilities and timing in securing complete EPC contracts."

3. Question from Suvankar Mallick: "Can you provide an overview of your company's business segments and current performance trends?"

   Answer: "Certainly! We primarily operate in two segments: Power Transmission Solutions (PTS) and New and Renewable Energy (NRE). PTS focuses on manufacturing and EPC services for transmission equipment, while NRE encompasses solar EPC and BESS. In terms of financials, our EBITDA margins have been stable, but we're committed to improving profitability amidst growth. We expect to continue sustainable growth in these segments."

4. Question from Akhilesh Rawat: "What margin improvements do you foresee moving into FY '26 and FY '27?"

   Answer: "While I can't quantify targets in detail, we hope to maintain overall margins in line with our historical track record. With ongoing efforts to optimize our business and complete qualification processes, we are aiming to stabilize margins while also supporting our growth initiatives. Aiming for EBITDA margins around 12-13% for FY '27 is our target."

5. Question from Nitin Gandhi: "What is the expected capex for the electrolyzer facility and potential asset turnover?"

   Answer: "Our total capex plan for the electrolyzer facility is approximately INR 200 crores. This investment will support a capacity of 100 MW. We anticipate revenues ranging from INR 200 to 300 crores per financial year once fully operational by FY '28, with an expected asset turnover of around 1 to 1.5."

6. Question from Saurabh Gupta: "What's the current status of the electrolyzer plant and the capex incurred so far?"

   Answer: "As of now, we're on track to commission our first phase of the electrolyzer manufacturing plant by March 15, 2026, which will have a capacity of 30 MW. We have incurred about INR 60 crores in capex over the last nine months and expect to reach around INR 110 crores by the end of FY '26."