Prostarm Info Systems Ltd (NSE: PROSTARM), a provider of power backup and energy storage solutions, reported a sharp improvement in performance during the third quarter of FY26, supported by strong revenue growth and improved profitability. The company’s market capitalization stood at approximately ₹934 crore at the time of reporting.
For the quarter ended December 31, 2025, Prostarm delivered a robust top-line expansion, with revenue rising to around ₹160–162 crore, marking year-on-year growth of roughly 110%. The sharp surge reflects a recovery from earlier quarters and was aided by higher order execution and improved demand momentum across key segments. Sequentially, revenue also rose sharply compared with the September quarter, highlighting accelerating business traction.
Profitability also improved significantly during the quarter. Net profit came in at about ₹14.9–16 crore, representing nearly a doubling from the year-ago period and strong quarter-on-quarter gains. The expansion in earnings was driven by higher operating leverage, reflecting the company’s ability to scale revenue faster than costs during the period.
Operational metrics showed a mixed but improving picture. Profit before tax rose to over ₹20 crore, supported by stronger operating performance and better cost absorption. While operating profit growth remained more modest relative to revenue expansion, management indicated improving efficiencies as scale benefits begin to materialize.
The company’s recent IPO continues to influence its balance sheet dynamics. According to regulatory filings, Prostarm has already deployed the bulk of its IPO proceeds, including allocations toward working capital, debt repayment, and general corporate purposes. Monitoring agency reports indicated that most funds had been utilized as planned, with only a small portion earmarked for inorganic growth still unutilized.
The strong Q3 performance marks a notable shift compared with earlier quarters of FY26, when the company faced pressure due to a high base effect and fluctuating margins. The December-quarter rebound suggests a normalization of order flows and execution, potentially positioning the company for improved full-year performance if demand trends remain stable.
Industry context remains relevant to Prostarm’s outlook. The company operates in the electrical equipment and energy backup ecosystem, where demand is influenced by industrial capex cycles, infrastructure spending, and increasing adoption of energy storage solutions. The recent revenue surge indicates that Prostarm is benefiting from improving sectoral tailwinds, though sustaining margins will depend on execution consistency and cost management.
Looking ahead, the company’s focus areas are expected to include scaling its order book, strengthening working capital efficiency, and leveraging IPO-funded initiatives to expand capabilities. With a strengthened financial base and improving quarterly momentum, Prostarm enters the final stretch of FY26 with renewed operational traction. Overall, Prostarm Info Systems’ Q3 FY26 earnings underscore a meaningful recovery phase, driven by strong revenue growth and improved profitability, signaling a potential inflection point following a volatile first half of the fiscal year.