Summary
Supreme Power Equipment Limited - Q3 FY 2026 Earnings Call Summary Wednesday, February 11, 2026, 11:00 AM
Event Participants
Executives 1 Vee Rajmohan (Chairman and Managing Director)
Analysts 5 Dhanraj Tolani (Kuber Advisors), Garvit Goyal (Serene Alpha), Gaurav Shukla (Finvestors), Majid Ahamed (PinPoint X Capital), Paras Chheda (Purpleone Vertex Ventures LLP), Ramaiy Kapoor (Tillman Global Holdings)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income (Q3) | ₹36.03 crores | +14.83% YoY; growth hampered by ₹5-10 crores of finished goods awaiting billing due to customer-side payment delays. |
| Total Income (9M) | ₹111.38 crores | +23.70% YoY; reflects consistent execution across utilities and industrial client segments. |
| EBITDA (Q3) | ₹5.28 crores | Margins saw a slight dip due to copper price fluctuations and revenue deferment. |
| Net Profit (Q3) | ₹3.38 crores | +6.34% YoY; profit growth lagged revenue due to higher raw material costs and lower billing realization. |
| Net Profit (9M) | ₹12.78 crores | +23.66% YoY; tracking closely with top-line growth for the nine-month period. |
| EPS (Q3) | ₹1.35 | +6.30% YoY; aligned with PAT growth. |
| Receivable Days | 80 - 90 days | Reduced from 210 days in previous years; government payments now received within 60 days. |
| Order Book | ₹311.00 crores | Includes ₹105 crores from government and ₹206 crores from non-government sectors. |
Geographic & Segment Commentary
- Domestic Regional Mix: The company is aggressively diversifying beyond Tamil Nadu (40% of future mix), with Karnataka emerging as a major hub (30-40% of mix) through EPC contractors. Kerala and Andhra Pradesh are also being targeted, with recent L1 status achieved in Kerala tenders.
- Customer Segments: Order book is currently split 30-35% Government and 65-70% Private/Non-government. Management intends to keep government exposure below 50% to maintain better working capital control.
- Product Segments: Transitioning to higher MVA power transformers at the new facility. Distribution transformers continue to be a steady volume driver, evidenced by a recent order for 75 units from TNPDCL.
Company-Specific & Strategic Commentary
- New Facility Readiness: The new 140,000 sq. ft. facility is 95% complete with trial production already underway. The first commercial invoice is scheduled for February 13, 2026, marking the transition to operational status.
- Capacity Scale-up: The new plant has a theoretical revenue potential of ₹600-650 crores, while the existing unit can contribute ₹100-110 crores. Combined, management sees a path to ₹700+ crores in total capacity.
- MSME Recognition: Awarded the MSME Ratna Award 2025 for electronics innovation and engineering excellence, validating the company’s focus on high-quality engineered products.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue (FY26) | ₹180 - ₹200 crores | Requires a heavy Q4 (₹70-80 crores) driven by deferred Q3 billing and new plant contribution. |
| Revenue (FY27) | ₹300+ crores | Driven by full-year operations of the new plant and current ₹311 crore order book. |
| Revenue (FY28) | ₹400 - ₹500 crores | Based on gradual ramp-up of utilization at the new facility and strong sector demand. |
| PAT Margins | 10% - 12% | Expected to remain stable as higher margins from large transformers are offset by higher skilled labor overheads. |
Risks & Constraints
| Risk | Context |
|---|---|
| Manpower Availability | Management identified the availability of skilled workers as the primary constraint to ramping up the new facility. 30% of required staff is currently deployed. |
| Raw Material Volatility | Copper prices have remained high and volatile; while 100% of price hikes are passed through on the copper portion, fluctuations cause temporary margin compression. |
| Environmental Approvals | Final PCB/Environmental clearances for the new facility are still in the “final stage,” which caused a slight delay in the official commercial launch. |
Q&A Highlights
Execution Delays
- Question: Why was execution poor in Q3 given the ₹45 crore quarterly theoretical capacity? (Garvit Goyal)
- Answer: Finished products worth ₹5-10 crores were ready but not invoiced due to customer payment delays. This revenue is deferred to Q4. (Vee Rajmohan)
New Plant Contribution
- Question: How much will the new plant contribute in Q4 FY26? (Majid Ahamed)
- Answer: It is expected to contribute ₹30-40 crores in its first partial quarter of operations as raw materials are already on-site. (Vee Rajmohan)
Pricing Power
- Question: Can you pass on the 100% of copper price increases? (Garvit Goyal)
- Answer: The company passes on the specific copper cost increase to the customer, but the overall margin percentage can fluctuate during the lag. (Vee Rajmohan)
Future Expansion
- Question: Given the 5-10 year demand cycle, when will you need more land? (Paras Chheda)
- Answer: Management is already scouting for land in Chennai for the next leg of expansion, though high land costs are a factor. (Vee Rajmohan)
Key Takeaway
Supreme Power Equipment Limited reported a steady Q3 FY26 with a 14.83% revenue growth, despite deferring approximately ₹10 crores in billing to the final quarter. The company is at a strategic inflection point as it commences commercial production at its new facility, which increases total revenue capacity to ₹700 crores. With a current order book of ₹311 crores and a pipeline of ₹700-800 crores, management is confident in reaching ₹180-200 crores for FY26 and doubling revenue to ₹300+ crores in FY27. Strategic focus remains on diversifying the geographic mix toward Karnataka and Kerala and maintaining a private-sector-heavy order book to protect the 80-90 day working capital cycle. While skilled labor remains a key execution risk, the robust infra-led demand for power transformers supports a positive 5-10 year outlook for the company.
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