Smarten Power Systems Ltd (SMARTEN) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the Q2 FY '26-'27 Smarten Power Systems Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. I now hand the conference over to Mr. Ravi Dutt. Thank you, and over to you.
Ravi Dutt (Smarten Power Systems Ltd): Thank you. Good day, everyone, and a warm welcome to the H1 financial year '27 Earnings Conference Call of Smarten Power Systems Limited. Our results and investor presentations have been uploaded to the stock exchange and available on our website. I hope everyone has had a chance to review them. I am joined by Arun Bharadwaj, our Managing Director, and AdFactor PR.
Ravi Dutt (Smarten Power Systems Ltd): investor relation partner. Let me begin by drawing the industry landscape. India's power backup and solar market are converging into one opportunity. With solar, hybrid inverters and lithium storage working together, our core home UPS and inverter battery segment remain large, but it is evolving. Established brand and new entrants are launching lithium-based all-in-one backup products. And customers increasingly accept backup that is solar-ready, charges faster and requires less maintenance. Hybrid inverters have become the fastest-growing category, and several players, including Smarten, have launched hybrid inverters with battery compatibility. Lithium adoption is rising for its longer life, faster charging and lower maintenance, though its upfront price remains a barrier. So, lead-acid continues to play an important role. Our electronics work with both lead-acid and lithium batteries, so we can serve customers on either path. We believe these development developments favor integrated solutions and combine solar, hybrid inverters, batteries and monitoring. Let me now speak about the company. Smarten was established in 2014 and listed on NSE Emerge platform in July 2025 through the SME IPO of Rs. 60.1 crores. We design and assemble home UPS systems, solar inverters, batteries, solar panels and solar charge controllers with over 372 SKUs. Research, procurement, assembly and distribution are managed under one roof, which gives a tighter control over quality, cost and turnaround time. We reach customer through our 427 distributors across 24 states and two union territories and 32 international distributors, supported by 109 in-house and field service engineers. Let me briefly take you through our growth pillars. First is capacity expansion. Our new owned facility at Jhajjar, Haryana is ready to move for doubling the our production capacity from 600 units per day to 1,200 units per day, and which is expected to commence by the end of FY '27, moving us to automated PCB testing. Second is the backward integration in batteries. Batteries contributed about 72 crore, about 30% of revenues in FY '26. In H1 FY '27, battery sales were about 60 crore, 29% of revenue from the operations. Through an asset purchase agreement for a battery production line in Baddi, Himachal Pradesh, we are moving from trading into manufacturing, which should improve margins and strengthen quality control. Third is the new technology. Our smart solar inverters with integrated remote monitoring address the growing institutional demand for the smart power infrastructure. Fourth is government projects and partnerships. We executed about 1.75 Cr government order for 4,000 solar PCUs and have been authorized as channel distributor for Exide. With that, I will hand over to Arun sir to take you through financial performance.
Arun Bharadwaj (Smarten Power Systems Ltd): Thank you, Ravi. Let me now walk you through the
Arun Bharadwaj (Smarten Power Systems Ltd): Financial performance of H1 financial year of 2027. Revenue from the operation was INR 204.54 crore, a growth of 77.5% year on year and 60.5% over the H2 financial year '26. Gross profit was Rs. 45.68 cr, up to 77.9% year on year and 88% over H2 financial year '26. Gross margin was 22.3% in line with the last year and up from 19.1% in H2 financial year '26. EBITDA was Rs. 17.02 cr, a growth of 148.7% year on year and 231.8% over H2 financial year '26. EBITDA margin was 8.3%, up from 5.9% last year and 4% in H2 financial year '26. Profit after tax was Rs. 11.99 cr, a growth of 103.9% year on year and 310.6% over H2 financial year '26. PAT margin was 5.9%, up from 5.1% last year and 2.3% in H2 financial year '26. To summarize, H1 financial year '27 was a half of the strong growth with a better margin profile. With that, I would like open the floor for questions, over to moderator.
Moderator: Thank you. We will now begin the question and answer session. Participants who wish to ask a question may press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. We have the first question from the line of Pranav from Prudent Equity, please go ahead.
Pranav (Prudent Equity): Hello, am I audible?
Arun Bharadwaj (Smarten Power Systems Ltd): Yes, we can hear you.
Pranav (Prudent Equity): Yeah. Hi, sir. Hope you're well. First of all, congratulations on like a good set of numbers. Mere questions tha ki like in the first half we showed almost an 80% growth and you had guided for like a 20% growth. So, would you like to revise that guidance for the full year of FY27?
Ravi Dutt (Smarten Power Systems Ltd): Guidance for H2.
Arun Bharadwaj (Smarten Power Systems Ltd): Actually, our guidance is on the track what we have discussed in our DRST, so we are on right track and maybe we will do even better than that. Because our
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