Vivid Electromech Ltd (VIVIDEL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Yashashvi: Ladies and gentlemen, good day, and welcome to the H1 FY '27 Conference Call hosted by Vivid Electromech Limited. 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 then zero on your touch-tone phone. I now hand the conference over to Mr. Akhilesh Gandhi from Stellar IR. Thank you, and over to you.
Akhilesh Gandhi (Stellar Investor Relations): Thank you, Yashashvi. Good afternoon, everyone. This is Akhilesh Gandhi. I'm talking on behalf of Stellar Investor Relations. I would like to welcome you all for the Vivid Electromech's H1 FY '27 earnings conference call. We shall be sharing the key operating and financial highlights for the half year ended on 30th September 2026. Today, we have with us the senior management team of Vivid Electromech Limited namely Mr. Sameer Ataware. He is our Chairman and Managing Director. With him we also have Mr. Varun Mishra. He is our Chief Financial Officer. Before we begin, I would like to state that this call may contain some of the forward-looking statements, which are completely based upon the company's beliefs, opinions, and expectations as of today. The statements made in today's call are not a guarantee of future performance and also involve unforeseen risks and uncertainties. The company also undertakes no obligation to update any forward-looking statements to reflect development that occur after the statement is made. Document related document relating to the company's financial performance is already uploaded on the stock exchange. With that, I now invite Mr. Sameer Ataware ji to share his initial and opening remarks on the company's performance for the half year ended on 30th September. Thank you and over to you, sir.
Sameer Athavale (Vivid Electromech Ltd): Yeah. Good afternoon, everyone. A very warm welcome to Vivid Electromech Limited's first earnings conference call following our listing on NSE Emerge platform in April 2026. I would like to thank all our shareholders, investors, analysts, and other participants for joining us today. We sincerely appreciate your interest in Vivid Electromech and the confidence you have placed in our company. We are pleased to share our financial and operational performance for the first half of FY '27, along with along with the key developments in our business and the progress we have made on our growth initiatives. Today, I will briefly introduce our business, share the key operational and strategic developments during the first half, and discuss our growth priorities. Thereafter, our CFO, Mr. Varun Mishra, will take you through our financial performance in detail. Vivid Electromech is an established electrical engineering and manufacturing solutions provider specializing in low-voltage and medium-voltage electrical panels, power distribution systems, and industrial automation solutions. Our product portfolio includes power control center, motor control center, variable frequency drive, VCB panels, and ring main units. We also specialize in power distribution units for the data center feed. Coming to the industry we serve, our solutions find applications across data center, industrial manufacturing, infrastructure, and construction, metro rail, renewable energy, and utilities. Each of these industries require reliable electrical distribution, control and automation systems, and a diversified product portfolio enables us to address these requirements. Data centers have emerged as one of our most important business segments and a key growth driver for the company. With increasing investment in cloud computing, artificial intelligence, and digital infrastructure, we see significant opportunities in this segment while continuing to strengthen our presence across the other end-markets. Before our manufacturing footprint, we had established an execution presence across more than 15 states in India, and it enabling us to serve customers across different industries and geographies. Over the years, we have also established strong associations with leading OEMs, global OEMs, including ABB, Hitachi, and Laurence, Scott & Electromotors, while while complement our engineering and manufacturing capabilities. Our strength lies in our ability to understand customer-specific requirements and deliver customized electrical solutions while maintaining high standards of quality, safety
Sameer Athavale (Vivid Electromech Ltd): and reliability. Building on this established foundation, we are now focused on scaling our manufacturing capabilities, expanding our product offerings, and strengthening our presence across key growth industries. Coming to our business performance during the first half of FY25, our growth was supported by continued execution of customer orders, demand across key industries, and increasing participation in international markets. Data centers remained our key growth driver, supported by our relationships with established operators, including STT Global Data Centres, CtrlS Datacenters, and AdaniConnex. Capabilities in customized electrical distribution systems and specialized PDUs continue to support our presence in this segment. Beyond data center, we continue to execute our projects across industrial, infrastructure, industrial manufacturing, and renewable energy, serving customers such as NCC, Afcons, JSW, and Spanomatic Solar. This diversified industry exposure provides us with multiple avenues for growth. Another encouraging development was the expansion of our international business, with increased exports across African markets, including Tanzania, Kenya, Mali, Burkina Faso, and Ghana. Coming to our order book, as of October 26, 2026, our executable order book stood at approximately 307 crores, providing healthy revenue visibility for coming two quarters. Our typical execution cycle ranges between two to nine months, depending on project requirements and delivery schedules. Moving to our strategic initiative, we are focused on expanding our manufacturing capacity, strengthening our product portfolio, and enhancing our technical capabilities. A key development in our new manufacturing facility in Ambernath, where phase one has entered the equipment installation and operational readiness assessment stage. Subject to requisite statutory approvals, commercial operations are expected to commence by the end of November this year. Upon completion of the facility, the facility will add 15,000 verticals annually, taking our total installed capacity from 7,500 verticals to 22,500 verticals per year. With advanced automation, robotic fabrication, and in-house testing capability, the facility is expected to improve manufacturing efficiency and strengthen our ability to execute larger and more complex orders. On the product development front, we have introduced a 800V low voltage panels type tested at CPRI Bhopal as per IEC 61439, strengthening our offer for energy application. We have also acquired a 99% partnership interest in Mectech Infra Solution, a Siemens licensed partner for SIVACON 8PU low voltage switchboards. This acquisition is aimed at broadening our product capabilities and strengthening our presence in industrial, electrical, and automation solutions. Looking ahead, our growth strategy remains centered on three key priorities: strengthening our position across existing industries, expanding our geographical reach, and scaling our manufacturing capacity. Our immediate focus is on converting our order pipeline into timely execution while continuing to deepen relationship with existing customer and pursue new business opportunities. The upcoming Ambernath facility, combined with our technical expertise and OEM partnerships, will enhance our ability to address larger projects, improve operational efficiency, and expand our product offerings. We believe our established engineering capabilities, diversified industry presence, and growing order pipeline provide a solid foundation for the next phase of growth. With that, I would now like to hand over the call to our CFO, who will take you through our financial performance for the first half of FY25 in greater detail. Over to you, Varun.
Varun Mishra (Vivid Electromech Ltd): Thank you, sir, and good afternoon, everyone. Let me now take you through our financial performance for the first half of FY2027, followed by our revenue composition, operational metrics, balance sheet, and cash flow position. Starting with our financial performance, revenue from operations stood at
Varun Mishra (Vivid Electromech Ltd): 1.53 CR, registering growth of 29.7% YoY compared to ₹70.57 crore in H1 FY26. And total income stood at ₹92.15 crore, registering growth of 30% YoY compared to ₹70.89 crore in H1 FY26. EBITDA increased by 37.5% YoY to ₹19 crore compared to ₹13.82 crore in H1 FY26. EBITDA margin improved to 20.62% from 19.49% in the corresponding period last year. Profit after tax grew by 38.5 % YoY to ₹13.08 CR compared to ₹9.44 CR in the corresponding period last year, with PAT margin improving to 14.2%. Revenue growth was supported by execution of orders across key industries, while improved product mix, operating leverage, and execution efficiencies contributed to stronger profitability. Coming to our revenue composition, low voltage panels contributed 82% of revenue, followed by medium voltage panels at 17%, with the balance coming from traded products and services. From an industry perspective, data centers contributed approximately 52% of revenue, followed by infrastructure and real estate at 24%, industrial manufacturing at 17%, and the remaining 7% from solar and other industries. Geographically, Maharashtra contributed 77% of revenue, while domestic business accounted for approximately 91% of revenue, while exports contributed 9%. Export revenue stood at approximately ₹ 8.1 crore during H1 FY27, compared to 2.5 crore for the entire FY2026. During the first half year, we served 71 customers with average revenue per customer of approx ₹1.28 CR. On the manufacturing front, capacity utilization at our Navi Mumbai and Pune facilities stood at 95% respectively. Coming to the detailed composition of our order book, of the approximately ₹307 crore executable order book mentioned earlier, data centers accounted for ₹115 CR, metros/rail ₹46 CR, and other industries ₹146 CR. From a geographical perspective, export orders stood at approximately 66 CR, accounting for nearly 22% of the total order book. Our order book comprises 42 customers with approximately 89% of the order value coming from the existing customers and the remaining 11% from the new customers. Now coming back to our balance sheet, we have significantly reduced our long-term borrowings during the first half. Long-term borrowings declined to ₹1.76 CR as of September 20th 30th, 2026, compared to ₹19.66 CR as of 31st March 2026, with repayments of approximately ₹23.0 2 CR during the period. Our total borrowings reduced to ₹24.27 CR compared to ₹33.30 crore as of March 2026, despite an increase in short-term borrowings to ₹22.51 CR. This increase in short-term borrowings was primarily to support working capital requirements, including procurement and execution of ongoing customer orders. On the working capital front, inventories increased to ₹17.29 CR from rupees 6.66 CR, while trade receivables stood at 119.75 CR compared to 116.5 CR as of March 2026. The increase in inventories was primarily driven by procurement ahead of scheduled project execution and dispatches, while receivables remained broadly stable. Trade payables reduced following settlements with suppliers during the period. During H1 FY27, net cash flow from operating activities stood at negative 55.49 CR. This outflow reflected higher inventories and short-term advances, a reduction a reduction in trade payables, and an increase in other bank balance and income tax payments. With an order with a healthy order book and increasing pace of order execution, our working capital requirements have remained elevated in the near term, particularly towards procurement and ongoing projects. However, as execution progresses and customer collections materialize, we expect working capital pressures to gradually ease and operating cash flows to improve over the coming quarters. Cash outflow from investing activities stood at negative 28.23 CR, reflecting investments in property, plant and equipment, intangible assets, and capital work-in-progress, partly offset by other investing inflows. Capital expenditure during the period stood at approximately 34 CR, primarily towards manufacturing expansion and related investments. Our focus remains on improving working capital efficiency and strengthening our operating cash flow as progress project execution progresses. Now coming to our IPO
Varun Mishra (Vivid Electromech Ltd): proceed. So out of the fresh proceeds of 104.56 CR approximately 81.64 crore have been utilized as of 30 September 2026, with rupees 22.92 CR remaining unutilized. These proceeds have been deployed towards repa- repayment of certain borrowings, CAPEX, working capital requirements and and other approved purposes. As approved by our shareholders on 36 AGM dated 25 August 2026, 9 crore rupees was reallocated from the manufacturing facility CAPEX allocation towards working capital requirements. Our focus remains on disciplined capital allocation, efficient working capital management, and maintaining financial flexibility as we scale our operations. Overall, we remain focused on translating business growth into sustainability profitability and improving operational efficiency, and strengthening our financial position. That conclude our financial overview for the first half of financial year '27. With that, now I would like to hand over to our CMD, Mr. Sameer Athavale ji for his concluding remarks. Over to you, sir.
Sameer Athavale (Vivid Electromech Ltd): Yeah. Thank you for the financial overview. As we look ahead, we remain confident about the long-term growth opportunities for Vivid Electromech, supported by our established business fundamentals, expanding manufacturing capacity, and presence across key growth segments. With a healthy order pipeline and established customer relationship, our immediate priority remains the timely execution of orders, securi- securing repeat business, and expanding our custo- customer base. The completion of our phase one of our Ambernath manufacturing facility marks an important milestone in our growth journey. Our focus will now be on progressively scaling production, improving manufacturing efficiency, and leveraging the expanded capacity to pursue larger and more complex orders. I would like to thank all our shareholders, investors, and other stakeholders for their continued trust and support. With that, we would now be happy to take your questions. Thank you.
Yashashvi: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone 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 will wait for a moment while the question queue assembles. We'll take our first question from the line of Nishita from Sapphire Capital. Please, go ahead.
Nishita (Sapphire Capital): Hello?
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