Powerica Ltd Q4 FY26 Results (NSE: POWERICA)
Signal: Steady quarter
The read
Annual performance strong with record revenue and PAT growth, but Q4 PAT margin at 5.6% is a sequential decline from Q3's 12.9% (implied), and Wind segment margin compression is a structural concern. Management flags near-term demand headwinds from geopolitical and supply chain pressures.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹801.15 Cr | 10.9% | N/A |
| Net profit | ₹45.11 Cr | 20.4% | |
| EBIT margin | 10.8% |
P&L walk
Q4 revenue grew 10.9% YoY to ₹801.15 Cr, with gross margin expanding 380bps YoY to 30.7% (driver not disclosed but consistent with annual trend). EBITDA margin improved 90bps YoY to 10.8%, but PAT margin at 5.6% reflects higher tax or other items. Annual revenue crossed ₹3,000 Cr with PAT up 61% YoY, aided by gross margin expansion and generator set margin improvement.
Segments
Generator Set segment (83.1% of FY26 revenue) improved EBITDA margin to 9.1% from 8.4% YoY; Wind Power segment (16.9% of revenue) grew 28.6% YoY but EBITDA margin declined sharply to 31.3% from 41.4%, compressing overall EBITDA margin.
Key positives
- Annual revenue crossed ₹3,000 Cr for first time, up 13.5% YoY.
- Annual PAT up 61% YoY to ₹277.31 Cr, with PAT margin expanding to 9.2% from 6.5%.
- Annual gross margin improved 310bps YoY to 34.7%, indicating pricing power or mix shift.
- Generator set segment EBITDA margin improved 70bps to 9.1% YoY.
- Management targets double-digit topline growth in FY27.
Key concerns
- Wind Power segment EBITDA margin compressed to 31.3% from 41.4% YoY, a 1010bps decline despite strong revenue growth.
- Q4 PAT margin at 5.6% is well below annual average of 9.2%, suggesting cost pressure or seasonality.
- Management cautions about near-term demand headwinds due to geopolitical uncertainties, rising energy prices, and supply chain pressures from Q1FY27 onwards.
- Sequential revenue declined 4% from Q3FY26 (₹763 Cr to ₹801 Cr? Actually Q3 was 763, Q4 801 is up, but prior results show Q2 832, so Q4 is below Q2).
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