Susan Electrical H1FY27 Results (BSE: 544793)
Signal: Margin pressure
The read
The trajectory remains sharply growth-led: H1 FY27 revenue increased 190.01% to ₹20,206.23 lakh and order visibility reached ₹347 crore, but operating margin contracted 136bps to 11.77% after expanding to 13.98% in Q4FY26. The key inflection is the product mix shift into HT Cables and MVCC, with sales rising to approximately ₹39 crore from ₹0.52 crore, while the next proof point is whether the planned CCV and capacity additions support the stated stronger H2 FY27 without further margin erosion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹202.06 Cr | 190.01% | N/A |
| EBIT | ₹23.78 Cr | 160.04% | |
| Net profit | ₹13.15 Cr | 190.59% | |
| EBIT margin | 11.77% |
P&L walk
Standalone H1 FY27 revenue increased 190.01% to ₹20,206.23 lakh and operating profit increased 160.04% to ₹2,378.45 lakh, while operating margin contracted 136bps to 11.77%; PAT rose 190.59% to ₹1,315.34 lakh, broadly tracking operating profit growth.
Segments
The filing does not provide a segment-results table, but the product mix shows HT Cables and MVCC becoming a material growth driver at 19.36% of H1 FY27 revenue versus 0.75% in H1 FY26, while LT Cables and Conductors remained the largest product category at 47.83%.
Key positives
- Revenue from operations increased 190.01% to ₹20,206.23 lakh in H1 FY27, supported by robust order execution and an unexecuted order book of ₹147 crore.
- Total order visibility reached ₹347 crore, comprising a ₹147 crore unexecuted order book and a ₹200 crore active pipeline.
- HT Cables and MVCC sales rose to approximately ₹39 crore from ₹0.52 crore in H1 FY26, increasing their revenue contribution to 19.36% from 0.75%.
- Cash flow from operations turned positive despite aggressive business expansion, according to the filing.
- Cable capacity is planned to increase from 11,000 Km p.a. to 16,000 Km p.a., while winding wire capacity increased from 3,307 to 4,200 and is planned to reach 5,500.
Key concerns
- Operating margin declined 136bps YoY to 11.77% even as revenue increased 190.01%, and the filing does not identify the cause of the margin contraction.
- Operating profit growth of 160.04% lagged revenue growth of 190.01%, indicating negative operating-margin movement rather than operating leverage.
- The company is entering a substantial capacity-expansion phase, with cable capacity targeted to rise by 5,000 Km p.a. and winding wire capacity planned to reach 5,500; execution and utilisation will determine whether growth converts into stable margins.
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