The company’s net profit halved to Rs 48 crore in Q4, plunging from Rs 97 crore during the year-ago period. Restricted capacity and lower realisations also contributed to the drop in profitability.
The company’s revenue from operations came in at Rs 617.22 crore, a drop of 1% from Rs 624.8 crore posted in the corresponding quarter of the previous financial year. However, for the full year, revenue gained 11% to Rs 2,153.69 crore.
For the quarter under review, the company clocked an EBITDA margin at 13.17%, sharply lower from 18.63% in the same period last year. The sharp drop in margin translates to a decline of 2,900 basis points. One basis point is one hundredth of a percent. FY26 margins stood at 16.5% down from 18.93% in FY25.
EBITDA margin for the March 2026 quarter was impacted by several factors. These included a one-time provision of Rs 4.85 crore to comply with the revised Labour Code, and another one-time provision of Rs 5.50 crore towards a target-linked group incentive for employees.
Margins were also affected by rupee depreciation, which raised the cost of imported raw materials. In addition, there was a sharp increase in the cost of critical components as vendors shifted focus to export markets and passed on higher costs. Further pressure came from a steep rise in transformer oil prices, driven by the ongoing Middle East conflict.
The company has entered FY27 with an order backlog of Rs 1,200 crore (10,270 MVA). In April 2026, it secured fresh orders worth Rs 310 crore (2,107 MVA), while the enquiry pipeline remains robust.Other income was impacted during the quarter. Over the past two years, the company had allocated a significant portion of its funds to long-term government securities and long-duration mutual fund schemes at the peak of the interest rate cycle.
This approach had earlier resulted in strong returns and record mark-to-market gains. However, in the March quarter, a rise in long-term G-sec yields compared to the first quarter of the financial year led to negative MTM gains. The company noted that its investment strategy remains long-term in nature, and the impact of recent volatility is largely accounting-related rather than reflective of underlying performance.
On the capex front, construction of the new power transformer facility is progressing as planned and is expected to be operational from July 2026. Additionally, the board has approved an investment of Rs 25 crore for the acquisition of land near Vadodara to build a future land bank. This investment will be funded through internal accruals.
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