Yash Highvoltage Q2 FY27 Earnings Call — Analysis (BSE: 544310)

Yash Highvoltage reported strong H1 FY27 revenue growth of 95% YoY to ₹194.5 Cr with EBITDA margin expanding to 28.1%, supported by an order book expansion to ₹760 Cr and greenfield capacity ramp-up.

26 Oct 2026 · Analysis by Alpha Inflection

Result quality: stable — Results context unavailable. Management sentiment: optimistic.

The take

H1FY27 Revenue from Operations ₹194.5 Cr ( +95% YoY ) . New guidance — FY31 total revenue capacity potential ₹900 Cr to ₹1,000 Cr . New story: Backward Integration and Core Localization .

Results

H1 FY27 revenue rose 95% YoY to ₹194.5 Cr; EBITDA grew 139% to ₹55 Cr with margins expanding 480 bps YoY to 28.1%, and PAT grew 157% to ₹36 Cr.

Financial highlights

Guidance

Management targets full utilization of combined manufacturing facilities by FY31 to generate ₹900–1,000 Cr in revenue, with localized RIP commercial production beginning Q4 FY27.

What management committed to

• [Brownfield project] should get end by the third quarter [Q3 FY27] and in the last quarter [Q4 FY27] we should be able to see some increased capacity from the Brownfield project. — Q4FY27
• [Greenfield facility at Jarod] for our own localized bushing up till 245 kV, the commercial production should happen from the fourth quarter of this year [Q4 FY27]. — Q4FY27
• [Yash Highvoltage] have already got orders unexecuted for 420 kV, and we should start invoicing it from this year [FY27] itself for an assembly model. — FY27
• For the 420 kV and 550 kV [localized bushings], it should be in the Q4 of '28 or mid-28 max. — Q4FY28
• [Unit 1 and Unit 2 combined] would be able to invoice close to INR900 crores to INR1,000 crores of bushings as a combination of Unit 1 and Unit 2... by 2030-'31, we expect to fully utilize this potential. — INR900 crores to INR1,000 crores, FY31
• On the global front, we aspire to increase our market share substantially and to at least capture 5% in next 4 to 5 years [from ~1-1.2%]. — at least 5%, FY31
• The total capex planned for the greenfield project is INR220 crores, of which INR106 crores is spent till 30th September '26, and the balance [INR114 crores] is expected to be deployed over the next 12 months. — INR220 crores, Q2FY28
• [The order book of INR760 crores] is expected to be executed over the next 15 to 18 months. — INR760 crores, Q4FY28

Key themes

Capacity expansion and backward integration ramp-up

How the narrative shifted

• Backward Integration and Core Localization: Localizing RIP core manufacturing at Jarod will eliminate 18-20% import duty and freight costs while expanding gross margins and securing supply continuity.
• Global Transmission Infrastructure Tailwinds: Structural multi-year demand driven by grid modernization, renewables, and data centers creates a tight seller's market in high-voltage bushings for the next 2-4 years.
• Geographic Expansion into the US: Entering representation agreements covering 27 US states and achieving IEEE seismic certification positions the company for recurring export business from mid-FY28.
• Margin Discipline and Pricing Stance: Management intends to sustain ~27-28% EBITDA margins by balancing internal efficiency gains with reasonable customer pricing to preserve long-term client relationships.
• Working Capital and Balance Sheet Health: Preferential equity infusion and disciplined cash conversion cycle (63 days) provide liquidity buffer and self-fund expansion capex.

Operational commentary

• In the US market, subsidiary Yash HV USA signed representation agreements with Ensales Electrical Associates, Gateway Power Sales, and EHV Solutions LLC, expanding representation to ~27 US states.
• Successfully achieved seismic qualification testing for IEEE compliant 138 kV and 230 kV OIP condenser transformer bushings, becoming the first Indian OEM to qualify.
• Completed preferential allotment of shares and warrants aggregating ₹151 Cr, receiving ₹106 Cr upfront (₹90.99 Cr equity, ₹15 Cr warrants) with balance receivable within 18 months.
• Successfully tested and supplied first in-house 245 kV wall-through transformer bushing to a leading public sector undertaking.
• Migrated global operating systems to SAP S/4HANA to support growing scale and coordination across functions.
• Product revenue mix in H1 FY27 was dominated by RIP bushings at 86% of revenue, while OIP and high-current accounted for 14%; domestic sales represented 95% and exports 5%.

Analyst Q&A

• Q. Can management provide a breakdown of EBITDA margin improvement drivers and future margin expectations for FY28?

  Attributed margin expansion to favorable product mix, improved realization, vendor terms, and operating leverage; declined to commit to a 32-35% margin band but noted efforts will focus on sustaining or improving current levels.

• Q. What is the status of greenfield and brownfield projects and expected commercial production timelines?

  Brownfield expansion completes in Q3 FY27 with capacity adding in Q4 FY27; greenfield assembly and testing invoicing has started, while localized RIP core trial results are encouraging and type testing is slated for Q3 FY27.

• Q. What are the estimated cost savings from backward integration and local core manufacturing?

  Noted elimination of 18-20% combined import duty and freight costs plus reduced overheads, but emphasized final margin impact depends on competitive pricing dynamics in India.

• Q. Can management provide kV class-wise and segment-wise volume breakdown for H1 FY27?

  Declined to divulge kV class-wise or segment-specific volume metrics beyond aggregate ~4,000 units (~1,500 OIP and ~2,200 RIP).

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