Susan Electrical Q1 FY27 Earnings Call — Analysis (BSE: 544793)

Susan Electricals posted 279% YoY revenue growth to ₹95.36 Cr and turned profitable at ₹6.39 Cr PAT, driven by scale and an ongoing product mix shift toward higher-margin HT and MVCC cables.

22 Aug 2026 · Analysis by Alpha Inflection

Result quality: strong — Loss reversed. Management sentiment: optimistic.

The take

Q1FY27 Revenue ₹95.36 Cr ( +279% YoY ) . New guidance — FY27 fy27 product revenue mix ~30-35% each . New story: Manufacturing capacity scale-up .

Results

Revenue ₹95.36 Cr (+279% YoY); Operating Profit ₹11.04 Cr (+980% YoY); PAT ₹6.39 Cr vs net loss of ₹0.42 Cr in Q1FY26; blended EBITDA margin ~11.9%.

Financial highlights

Guidance

Targeting 60% capacity expansion to 12,000 Km p.a. by Feb-2027 with ₹15-20 Cr FY27 capex, achieving a balanced 30-35% revenue mix across HT/MVCC, LT/conductors, and winding wires.

What management committed to

• [Susan Electricals] factory capacity expansion from 7,500 Km p.a. to 12,000 Km p.a. will commence commercial operations in February 2027. — 12,000 Km p.a., Q4FY27
• [Susan Electricals] plans capex of approximately INR 15 crore to INR 20 crore during FY27. — INR 15 crore to INR 20 crore, FY27
• [Susan Electricals] unexecuted order book of ₹142.39 Cr as of 30 June 2026 is expected to execute over the next ~3 months. — ₹142.39 Cr, Q2FY27
• [Susan Electricals] expects FY27 revenue mix to be roughly balanced at ~30-35% each across HT/MVCC, LT/conductors, and winding wires. — ~30-35% each, FY27

Key themes

Capacity expansion and high-margin product mix shift

How the narrative shifted

• Value-added HT and MVCC product mix shift: Management is pivoting production towards HT and MVCC cables to drive higher per-unit EBITDA and expand blended margins as operating leverage builds.
• Manufacturing capacity scale-up: Expanding manufacturing capacity by 60% by Feb 2027 to address power sector T&D and RDSS demand tailwinds, unlocking ₹700-800 Cr peak revenue potential.
• Tender order pipeline and execution velocity: Active bidding in ₹800-1,200 Cr tenders with high execution velocity, converting orders to supply within 45-60 days.
• Raw material price fluctuation management: Volatile aluminium rod prices are being managed via pricing mechanisms and operational adjustments.

Operational commentary

• Underway on 60% manufacturing capacity expansion, increasing capacity from 7,500 Km p.a. to 12,000 Km p.a., scheduled for commercial operations in February 2027.
• Order book split stands at ~30% HT cables & MVCC, ~35% LT cables & conductors, and ~35% winding wires, with a 50:50 mix between government/DISCOMs and private/EPC clients.
• Bidding actively on ₹800-1,200 Cr of tenders with historical and expected conversion rates of 15% to 20%; multiple pipeline bids at L1/L2 stage awaiting LOI.
• Exploring qualification and customer empanelment opportunities in railways, defence, and large power sector utilities.

Analyst Q&A

• Q. Could management provide specific FY27 full-year revenue growth guidance?

  Declined to provide an absolute revenue number, stating investors should look at the past 2-3 years trajectory to understand ongoing momentum.

• Q. Can management clarify segment-wise EBITDA margins given current lower margin in HT cables?

  Explained HT cables are currently ~7% due to early scale, but stated long-term HT/MVCC net margin potential is ~20% as operating leverage kicks in.

• Q. What is the outlook on long-term debt additions for expansion?

  Stated they will evaluate funding requirements based on business growth and expansion needs as they arise, withholding specific debt targets.

• Q. How is the company managing aluminium raw material price volatility?

  Stated that raw material movements are closely monitored and pricing decisions/operational measures are adjusted accordingly.

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