Yash Highvoltage Ltd (YASHHV) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the H1 FY27 earnings conference call of Yash High Voltage Limited. As a reminder, all participants' 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 this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Before we proceed, this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not a guarantee of the future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Kalpesh Shah, Chairman and Managing Director from Yash High Voltage Limited. Thank you, and over to you, sir.
Kalpesh Shah (Yash Highvoltage Ltd): Thank you so much, madam. Good evening, everyone, and a very warm welcome to Yash High Voltage's earning conference call for the first half ended September 2026. I'm joined today by Mr. Darshan Thakkar, our Executive Director Finance, Mr. Nirav Patel, Executive Director Global Business, and Mr. Mitanshu Shah, our Strategic Advisor. Our financial results, investor presentation, and press release have been uploaded to the Stock Exchange and our website. I trust you have had an opportunity to review these documents. H1 '27 marked a period of operational and strategic progress for the company with key developments across international expansion, product capabilities, greenfield facility operations, and internal systems strengthening our
Kalpesh Shah (Yash Highvoltage Ltd): taken for future growth. Before discussing our progress in the period, I would like to briefly touch upon the industry outlook which remains an important focus market for us. The global power transmission and distribution industry continues to witness structural demand drivers, including grid modernization, replacement of aging infrastructure, renewable energy integration, and rising electricity consumption. The growing requirements of data centers, digital infrastructure, and industrial electrification are further reinforcing the need for reliable and efficient power networks. Transformer bushings are critical components within this ecosystem, ensuring safe electrical connections between the transformer and external circuit. As utilities and transformer manufacturers focus on reliability, performance, and high-voltage applications, the demand for technically qualified and dependable bushing suppliers remains very important. For the company, these developments present opportunities across domestic and international markets, supported by our product capabilities, customer relationships, and ongoing expansion into high-voltage applications. I would also like to give some strategic highlights. Our strategic priorities remain centered on expanding our international outreach, enhancing our technical credentials, and investing in capabilities that can support sustainable growth over the coming years. In the United States, our subsidiary, Yash HV USA has entered into representation agreements with Ansel Sales Electric Associates, Gateway Power Sales, and EHV Solutions, LLC. Together, these agreements extend our representation footprint to close to 27 states. This is an important step in strengthening our engagement with utilities, transformer OEMs, and other prospective customers. A wider local network should help us improve customer access, support product approval, and build relationships over time. We see these agreements as an important part of our broader effort to establish a stronger presence in the US market. We also achieved a significant technical milestone with successful completion of stringent seismic qualification testing for our IEEE compliant 138 and 230 kV OIP condenser transformer bushings. The company has become the first Indian OEM and one of a select group of global OEMs to achieve this qualification. This milestone reinforces our capabilities to serve customers in North and South American region. The planned expansion of RIP bushing capabilities up to 550 kV is on track and intended to broaden our addressable product range and to enable us to cater to more demanding customer requirements globally. The greenfield facility at Jarod is an important element of this ambition, and our focus will remain on translating the investments made into common meaningful capabilities through a disciplined ramp up. During the period, we completed a preferential allotment of equity shares and warrants aggregating to approximately 151 crores from marquee investors like Malabar Investment, WhiteOak, Motilal Oswal, ValueQuest, and Ananthroop to name a few. Of this, 90.99 crores was received from the allotment of equity shares and 15 crore was received upfront against warrants, taking the total fund received to approximately 106 crores. The balance amount payable against the warrants will be received upon conversion slash exercise within the applicable 18-month period. The proceeds will support the company's growth plan and ongoing capacity expansion initiatives. On the operational front, during the first half, we continue to strengthen our product and execution capabilities while taking important steps towards expanding our manufacturing footprint. We successfully tested our first 245 kV wall through transformer bushing in-house and supplied the product to a leading public sector undertaking. This marks a meaningful addition to our product portfolio and demonstrates our growing design, testing, and execution capabilities in the high-voltage applications. We also successfully migrated to SAP S/4HANA grow while maintaining business continuity through the transition. This is an important step in strengthening our operating systems, improving process visibility, and supporting better coordination across business functions as the company grows in scale and complexity. These operational developments provide foundation for the next phase of our growth. Alongside strengthening our manufacturing and execution capabilities, we have also made progress in expanding our market access and improving our readiness to serve specialized international applications. With that, I would now like to hand over the call to Mr. Darshan Thakkar, our Executive Director Finance, who will take you through our financial performance and business position. Over to you, Darshan.
Darshan Thakkar (Yash Highvoltage Ltd): Thank you, Mr. Shah. Good evening everyone, and a warm welcome once again to Yash Highvoltage Limited's H1 earnings call. For H1 FY '27, revenue from operations stood at 194.5 crores
Darshan Thakkar (Yash Highvoltage Ltd): domestic market which accounted for 95% of sales while exports contributed to 5%. By product category, RIP bushings accounted for 86% of the revenue, while OIP and high current bushings contributed to 14%. Within the domestic sales, the contribution of the retrofit and services business has doubled from 4 to 8% year-on-year. Gross margin for H1 FY27 was 48.3% compared with 42.4% in H1 of previous year. Product mix and operating leverage, which is a combination of volume increase of close to 40%, better price realizations and cost efficiency measures were the main contributors to the improved gross profit margins. EBITDA for the period stood at 55 crores vis-a-vis 23 crores in the corresponding period of the previous year, translating to a growth of 139% year-on-year. The EBITDA margin improved from 23.3% to 28.1% year-on-year. PAT for the period is 36 crores vis-a-vis 14 crores in H1 of FY26, translating to a growth of 157% year-on-year. The PAT margins improved from 13.7% to 18.6% year-on-year. On the order book, as on 30th September 2026, our order book stands at 760 crores, up from 400 crores at the start of the financial year, providing healthy visibility for future execution. The order book is expected to be executed over the next 15 to 18 months. The cash conversion cycle stands at 63 days as on 30th September '26, compared to 81 days for the full year ended FY26, with focus and tighter controls on business operations. The total CapEx planned for the greenfield project is 220 220 crores, of which 106 crores is spent till 30th September 2026 and the balance is expected to be deployed over the next 12 months. The net cash position stands at 90 95 crores as on 30th September 2026. With this, I would like to conclude and open the floor for questions from our esteemed participants.
Moderator: Thank you very much. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their 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 will wait for a moment while the question queue assembles. The first question is from the line of Sanjay A. from Elara Capital. Please go ahead.
Sanjay A. (Elara Capital): Yeah. Thank you for giving me this opportunity. Good evening. I would like to ask that can we simplify the current market share over in the domestic markets and the global markets? And what is the market share we are targeting in the next 5 years for domestic as well as global? Thank you.
Kalpesh Shah (Yash Highvoltage Ltd): Yeah. Thank you. Thank you for the question. On the global front, we would still not be almost around 1 or 1.2% of the global market demand. And at India, we would still be leading with presence in the Indian domestic sector. We should be increasing our position further in India with the addition of 420 kV, and hopefully we would want to maintain the leadership in India for couple of more years. The global front we aspire to increase our market share substantially and to at least capture 5% in next 4 to 5 years.
Sanjay A. (Elara Capital): Okay. Okay. Thank you so much for this answer. That's all from my end. Thank you.
Kalpesh Shah (Yash Highvoltage Ltd): Thank you.
Moderator: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to two per participant. The next question is from the line of Vaibhav Mishra from Finvestors Research. Please go ahead.
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