Schneider Electric Infrastructure Limited (NSE: SCHNEIDER) Q1 2026 Earnings Call dated Aug. 08, 2025
Corporate Participants:
Unidentified Speaker
Udai Singh — Chief Executive Officer, Managing Director, Director
Suparna Banerjee Bhattacharyya — Chief Financial Officer
Analysts:
Unidentified Participant
Harshit Kapadia — Analyst
Naysar Parikh — Analyst
Abhijit Singh — Analyst
Naman Parmar — Analyst
Jayesh Shah — Analyst
Presentation:
operator
Please wait while you are joined to the conference. The conference is now being recorded. It. Sam It. Facebook. It Sam. Ladies and gentlemen, good day and welcome to the Snider Electric Infrastructure Ltd. Q1FY26 earnings conference call hosted by Alara Security. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harshit Kaparia. Thank you. And over to you sir.
Harshit Kapadia — Analyst
Thank you Shruti. Good morning everyone. On behalf of Elara securities, we welcome you all for the Q1 FY26 conference call of Schneider Electric Infrastructure Limited. I take this opportunity to welcome the management of Schneider Electric infrastructure represented by Mr. Uday Singh, Managing Director and CEO, Mrs. Supanna Bhattacharya, Chief Financial Officer and Mr. Mohit Agarwal, Head of Investigation. We will begin the call with a brief overview by management followed by Q and A session. I’ll now hand over call to Mr. Singh for his opening remark. Over to you sir.
Udai Singh — Chief Executive Officer, Managing Director, Director
I just. I’m sure you have gone through the presentation which we had shared a couple of days ago and I want to take you along that and then followed up by whatever questions you might have. Now I would like to reiterate and which is what I am very proud of of the setting up the mission and vision statement for the company. SEIL has a very clear vision of leading the new digitalized energy world as we say offering our customers and partners the most innovative connected products and solutions which would be ready for the then power distribution’s eliminated expectations.
We do this with our balanced business models, superior quality and efficient supply chains which will keep our growth and profitability intact and resilient. We have a very clear mission as you know, to be a digital partner for sustainability and efficiency. And we really believe that the light is on, as we say everywhere for everyone and every moment. I’ll start my presentation with a slide on the market outlook and what we have tried to share with you here is how is India evolving and what does the future look for your company? And what we have tried to do here is try to summarize this primarily into four pillars.
And these four pillars are the trends which we see them evolve which are greatly impacting the company which we currently run which is Schneider Electric Infrastructure. Now the first one is of course is the green energy which as you know, it has been moving very, in a very agile way. I would say, you know, India has attained 50% of power demand about four, four and a half or five years ahead of the schedule. And three fourth of what we added in this Q1 is actually coming out of renewable, which just reinforces the fact that we are on the right track as a country.
Now what is important and which I want to really point out is something which has been happening on the hydrogen demand and what is lying in front of us as regards to the green hydrogen. Now the analysts have said that we expect the hydrogen demand to be roughly about also 9mm TPA by 2032. Now what it also means is there are a lot of things which will start happening. I’m sure you have, you must have noticed the activities which are underlying this green hydrogen thing. There are people who are actually making electrolyzers. They are developers and investors who actually, and owners of course who are trying to make these facilities.
And this is something which as and when it picks up it really will, you know, has a very positive impact for the company. What is also important is, you know, about the integration of the solar produced power into the national grid. Now this also impacts us a lot because we have plentiful smart grid solutions which can be enacted upon as and when these demands picks up. And in fact, if you notice and you read about 14,000 crores actually scheme is being put just to hook up 9 gigawatts of solar being thereby produced into the national grid scheme.
As I said, this will open up some business avenues for us in terms of provisioning and installing the grid solutions which can make this flow, which is a multi directional flow, seamless. Another important element which you will recall our honorable finance minister said is our interest in small modular reactors. Now typically, if you perhaps have noticed, you know, nuclear power in India today we are roughly at about 7 gigawatts. And to put up a nuclear plant by Nuclear Power Corporation of India usually takes anywhere between five to seven or eight years because these plants are large.
There’s a, there is a huge capacity or huge requirement of land which is being sought. There is things around environmental clearances, etc. Which has to happen. And there’s a reason why the gestation period of these queues are longer. Now this being one of the clear fuels is being taught and which is being very rightfully thought is can we get into those reactors which are smaller in size? And therefore it will bring up few things. One is it will accelerate our ambition of becoming 100 gigawatts of renewable by 2047, which is the time where you will turn 100 years of independence.
And this will bring up an accelerated, as I said, accelerated mechanism of actually putting up nuclear power plants. Plus additionally it will also be facilitate the country to put up these nuclear power plants where the lands available are smaller in far plunged areas where perhaps today we have not been even thinking of putting up a nuclear plant. Now when I mention this, as and when these plants come up, this eventually opens up avenues for us for business, for really engaging and supplying power distribution equipment along with the software and solutions which we have not only for the plant but also for the people who actually will eventually make these smaller reactors in India.
And of course it’s being supported by the government through the National Green Hydrogen mission where about 20,000 crores have been earmarked for us. I jump into the second pillar which is essentially the artificial intelligence and the digitalization which is being solved. Data centers in India actually will see a different path altogether today. And this will get fueled by the growth in the digital economy. Now we were a couple of years ago, we’re roughly about 11% now we expect that this economy, digital economy ratio as we turn in say 2021 or 2032, this will be roughly about 20%.
Now what does it mean? It means that we have to handle large amounts of data. Not only this will become a push, but also the fast growing 5G needs will also push the data center demand in India to go up. And what we expect that we should be adding another 2.5 gigawatts or about 3 gigawatts of it load capacity on the existing 1.2 gigawatt load in the coming four to five years. Now this is very important for us again because we supply substantially to data centers and we have solutions which can be given in this segment to make them very energy efficient and resilient.
Now there are schemes which government has been driving to bring up this AI based infrastructure in India to fuel the data center growth or to aid the data center growth and other which have been happening. Another couple of important topics in this slide station is the semiconductors which now India has already. There are people who have announced OSAT facilities. There are tatas who are going in for a large semicon and Gujarat. And that is something which will set forth India in a different orbit. I would say in few years down the line where the Atam Nirvar Bharat or self reliant Bharat in terms of making the entire chips which will be of different thicknesses in India Self edition which is very important.
This is something which is going to happen and the company has solutions actually to deliver and support these initiatives of government and developers. RDSS scheme as you all know has been our backbone Swizzer EMR for this. There are states who have been working and we supply the primary and secondary side of seizure along with the solutions which we have which are in terms of again modernization of grids to bring the AT and feed losses down is something which we have been doing and which we will continue to do. Another important element which I think everyone of you will relate is the mobility segment, the growth at which EV is expected to witness.
While we all know that government has announced a densation of about 30% although it’s a different matter that we are today at 7.8% but I think you must have read the declarations made by the Minister where they are trying to really push this hard in terms of, even to an extent of de incentivizing people who are not embracing the cv, especially in the government side is something which will propel this and what we are really keen in seeing and supporting all those developers, whether they are CPO’s or DISCOMs, in terms of establishing a fast charging infrastructure which is the future for tomorrow.
Now when we say 30% penetration in year 2030, what we are essentially talking about is about 40% of buses will actually get electrified which will open up immense potential for us as we see and we anticipate going forward now even the charging infrastructure. I’m sure people who are interested in this segment may be aware that we were roughly about 5,000 charging stations or clocks which we had about three, four years ago. We have actually grown to about 26,000 and we are expected to be at maybe putting up another close to 13 lakh charging stations in the week.
We see them coming up by 2030 today there’s a large headroom to improvise because on an average, if I’m not wrong, we have one charger for 235 vehicles which is nowhere near to the advance of developed nations where EVs have been embraced much higher like in Europe or US. And there’s a reason why I say that this opens up a good avenue for us going forward. Another important element which actually are another two in the mobility segment, one I would like to call out is the Quran project of government which is nothing, but I’m sure you might have heard is Urega am Nagarik where we have been talking about, you know, 122, 120 new destinations being coming up and we get into close to about 4 crores of daily commute happening on the air.
And that’s something which will open up many, many things I’m sure you would have opened. You have seen in larger airports where people are speaking about these airports are sustainable and what they really mean is these are energy efficient airports which are aimed to bring the CO2 emission least. And that is where our solutions come into picture. We get into multiple packages besides power distribution, which we handle very well and we see a lot of upside going forward while the projects take some time to get implemented. But at least there is an ambition, there is a direction which government has in terms of augmenting the air infrastructure.
Not only that, we are also pretty much prevalent in the mass rapid transport system. You know, we have already close to about 1,000 km of rail network marks rapids and we intend to add another thousand in coming years. And that is where we actually would be generally very much interested and very much keen in actually engaging with the agencies which push up this infrastructure. We have quite high and appreciable percentage of power distribution in the entire country for in this area. And where we would like to take this further up, you know, I’m sure you are aware we make VCB’s for you know, on the trains which are one day private trains.
About 80%, 75% or 3,4 of chains in India are being powered up by your company as a breaker. The last but not the least is something which I would like to call out is the energy storage systems. Now these are just to give you a sense about this, these are required essentially to handle the peaking demand so that you know, the discoms can handle and ensure the reliability of availability of power when there is the peak in the, or the surge in the demand. And you know, India and the authorities which are essentially the Central Electricity Authority have spelled out that in five years from now we would be having a capacity of 400 plus gigawatt hours out of which about 230 plus gigawatt hours will come out of battery based energy storage systems.
And this is something which we see emerging very, very fast. And we, and this is very relevant and pertinent to us because we have multiple solutions in this, we have modular solutions in this. This has got three basic parts. We can supply one part, two part or three part all together to the people who actually are putting up these capacities and infrastructure in India. Another important thing is of course because you have EV picking up, we have battery based energy storage systems picking up and therefore what is also picking up is the battery itself. Now there are battery manufacturers, or rather I will put cell manufacturers with C.
And they are pretty bullish about setting up a localized infrastructure of cell manufacturing and battery manufacturing in India. We engage with them, we supply them the same set of solutions which are, which make them really make their operations, I would say resilient, trouble free and consistent. And therefore the surge in the battery which we will see, if not now, maybe one or two years later, is something based where we will be very much interested and it will be impacting to us and why we see this. What we are also trying to do is really. I would like to take your attention to the bottom of the slide.
What is that which we are trying to do here? Number one, we are engaging with the policymakers, we are engaging with the other set of stakeholders which are relevant and pertinent in these areas in terms of either on the, I would say on advising mode in terms of bringing in best practices of the globe to India. What we should be doing and what we should not be doing. The way we are going to expand these infrastructure in India and how the technologies can contribute. We are one of the respected voice here and that’s the reason why we are engaging with these regulatory bodies or policymakers.
We are also trying to see as to how can we be few years ahead of the rest of the market in terms of really bringing up something which is innovation. And when we say innovation, it is not because the entire innovation piece in the company is directed towards the differential value additive which we bring in for the end user. And that’s something which is being appreciated. And that is the reason why we are really being heard and respected. And of course we are also fully cautious of that when these evolution of new technologies, new markets, new market, new dynamics which are emerging, are we really capable.
And we are trying to really keep those skills with us which we keep on refreshing as we move on so that we are really there as a company when we are required to be there. I would like to take you to the next slide which is just proudly sharing as to what your company has been bidding. One, the first is the core and I am talking about page number six where we have actually put up three cases in water, power and grid and mobility segment where as I said, we have won the entire package for one of the large cities in west followed by transformers again in west which are long duration contracts which we have signed up.
And third of course is in the water and this is actually in central India in NP where we are trying to supply again transformers which are intelligent and which are fed by the right set of oil. And I would take you another further ahead in terms of the success which we have seen in data centers again in power and grid and in Triple M. I’m talking about page seven where the success came in. Because we were seen as a technology provider or a shop which can give not only one set of equipment, but a bundled solution where each one of these things speak up to each other.
And therefore what the user gets is more advanced, more informative set of equipment by which he can make the operations run more seamlessly and more efficiently. And therefore we have done. We have supplied to a steel industry in West. We are actually supplying to a re established data center player in north where we have supplied the air insulated panels and the secondary distribution panels along with a. And these equipment are fully sensitized which are coming up with our subscription plan for accelerated resolution and support. And we have also supplied in north where is a complete E house which has got the cash based Prandy distribution.
It has got 11kv primary distribution again. And this is something which is coming out of motorized riro. And this is important I would like to just share with you. You know, this is a feature which we have made which is nothing. But when you are interfacing with the equipment there are times it is felt to make it more safer and secure. Can we operate the equipment in terms of fiscal movement of the breakers without going and standing in the vicinity of the equipment. Which is where people were looking for something which is motorized remote rack in and rack out of equipment.
And this is what we have done. And this, which is a progressive in nature was in fact the one which came forward and said this is what we want. And we delivered them the features that they were looking for. Further continuing our areas in terms of what we have been talking about for what we have been known for is the area of sustainability. I talk about page 8 where one is our smart inverter DP transformers which we have supplied for a solar farm in I would say Rajasthan developer. Then we are also trying to. We also supply to another transformer which was extremely intelligent in terms of all such a base.
And of course it came up with a subscription model of support and service in a solar and wind developer. And the last which we are very proud is the elements which we have started piloting. And there are certain private discounts which have started experimenting this. And there is a clear mindset change or shift there in terms of how do I These new technologies will make their operations more sustainable. And there’s a first smart wingman unit which we are supplying to a utility in North. And when I say smart the smartness is that it can do multi more things more automatically than a normal wingman unit.
I will actually take you to the last slide before I hand over the which actually speaks about the financial numbers. And I’m talking about page nine where I’m happy to say that we have upgraded our design at 33kV wherein we have come out with an updated version of breaker which actually can handle up to 3,000amperes at 33,000 volts. This was something which we were trying to work upon and this is something which we have done for India which we have came up with. And we were successful in actually also winning one order last quarter. But this is very important because it has got many many features which usually market is looking for.
Got a reservoir, breakers. It is tested with something which we call the internal arc which is only towards the safety operator. It is efficient because it is a roll on floor design, really compact, fully displaced with easy access enclosed door to ensure safety of operating person. As I said and fully edit by like all of our products with QR code which gives everything what is there inside. And of course this is catering to the renewable market and also in the triple M segment. So this is a new addition in the basket. And happy to say that we have also concluded one order which is large in few hundreds which is something being done.
I’ll pause here and make request to Suparna to take through financial performance with all of you. Over to you Supanya.
Suparna Banerjee Bhattacharyya — Chief Financial Officer
Thank you Uday and good morning everyone. Is my voice clear?
Udai Singh — Chief Executive Officer, Managing Director, Director
Yes.
Suparna Banerjee Bhattacharyya — Chief Financial Officer
Okay. So we are in slide number 11, page number 11. And I am happy to share the strong momentum in orders that we picked up now during this quarter and also the financial results for the quarter. And we have a great number in terms of orders for this quarter. We clocked 910 crores which is 42.1% increase over the corresponding period of last year. Sales have been at 622 crores which is close to 5% increase. Our gross margins are at 241 crores which is slightly lower by 1.5% over last year. EBIT at 67 crores which is also slightly lower than the corresponding period of last year by 2.5 points.
At the PAT level we are at 41 crores, 1.5% lower. But we have a very strong backlog which is 25% higher than last year, the corresponding period and which ensures that whatever lag we have in terms of the sales, we will accelerate sales and catch up in the quarters to come. So overall a strong order growth which is very, very encouraging. We have a steady sales growth and as I said, we’ll surely catch up in the months in the quarters to had some spillovers and some project delays which were not fully in our control. That is why it has been spilled to the next quarter.
Also important to see that our future readiness in terms of the capacity expansion for which we took the CAPEX approvals a few months back. They are all on track and the future in terms of taking care of the market requirements is being fully protected. The strategic levers if I talk of we have accelerated the growth in the segments and Uday has already talked we have leveraged some emerging segments and of course strengthened the resilient segments where we are market leaders from time to time. Lot of focus on services, the modernization, the digital services and the remote asset monitoring are the key features of the service related solutions that we offer to our customer.
And we have the transactional business which is done mainly by our partners. We are promoting the partner business significantly because it is a quick turnaround in terms of as compared to the project business. And so that we are right on track to achieve the sales target for the full year. As we said that we have a good traction in orders with better product mix. And I’m on page number 12 now. The orders. Good growth, good backlog, good profitability in terms of the orders that we have picked up and we are these days selective in terms of the orders.
We are picking up very good orders in terms of the. The margin as well as the payment terms, et cetera, which is ensuring not only the growth in the business and the margins, but also the hygiene as far as the collections etc. Is concerned. Sales again at 4.8% which as we are saying is moderate. Now over to page number 13 which is the as I said, we did sales growth of 4.8%. Overall the total revenue growth has been 5.1%. Our material margin has been 38.8% which is 1.5 points lower. And the reason for this is the corresponding period of last year had some exceptional credits.
Otherwise we are pretty much in tune with the margins that we are expecting. As far as employee costs which have grown by 11.8%. This is well in control. It has the inflation, the salary hikes as well as the additional expenses with respect to the headcount. And we also have the variable salary cost, which is predominantly the labor, etc. Used in production because of the project or the long tack of our business or the project business or the equipment. We need to spend today to have the sales and the inventory ready for the next quarter. So that is the employee cost component which is pretty much in control.
Very important to see that the other expenses have stabilized as compared to last year where we were building on capabilities and other things within the organization. So almost 4.9% increase in the other expenses. EBITDA at 11.8% lower by 2.4 points. Depreciation slight increase due to the increase in the asset that we are investing time to time. EBIT at 10.7% less than 2.5. Finance costs lowered a little because of the optimization of the interest expenses which is on the treasury bill. After that we can come to the profit before tax, which is 56 crores, which is 9% as a percentage of sales.
And we are lower from last year by about 2 points. Now coming to the pack, we are at 6.6% of sales. Last year corresponding period we were at 8.2% which is again 1.5% lower. However, as we said, we had a moderate growth in sales for this quarter. But we are sure that we should be able to optimize on all of this in the next quarter with the good orders and the good backlog that we have with us. Thank you very much. Over to Lara.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Nyser Parikh from Native Investment Managers, please proceed. Hello, Mr. Nicer. Fariq.
Naysar Parikh
Yeah, hi. Am I audible?
operator
Yes, sir.
Naysar Parikh
Sorry, thanks for taking my question. Yes, what I wanted to understand is. That you spoke about a bunch of segments in the start, but can you just be a bit more specific and with regard to the kind of order wins that we’ve had this quarter, just talk a bit about where exactly are we seeing traction. And secondly, margin front, you said that we’ve kind of gone for orders where the margin is better. But this time this quarter, obviously our margins have been lower. Gross margins are versus average that we’ve been seeing have actually been trending lower. So how should we look at gross margins especially for the remaining part of the year
Udai Singh
I’ll start from.
Thank you first of all and good morning. Now the orders, the margin which you see is something which on the sale which has happened and the orders which you see are for the quarter which has been booked but not yet sold. Now this number which you see, a small drop is more of a time impact. It is not that. And whatever guidance we have actually taken internally for the full year, we are confident that we will be delivering that margin and profitability for the full year. Now this was to your question number two and question number one is essentially you were asking if I am not wrong about these four segments which I did speak about some time earlier, earlier on as to how do we see ourselves getting positioned and what sort of traction will these segments give us? Now what we are trying to tell you by that is that how is your company getting prepared for what is seen and anticipated by us in India in coming years and times.
Now the business as usual which has continued will continue but it is a step towards getting ourselves future ready in terms of being there ahead of our peers like the way we are till now and the coming new evolving India as well. That was the only thing, only intent and purpose which we were trying to share with all of you.
Naysar Parikh
Right, understood. My question was if you could give. Some kind of a split between your the order inflow for the quarter, you know, what segments between, you know, data center, transmission, etc. How what segments are driving it. You can give that mix that would be helpful.
Udai Singh
That mix can be given later by Suparna. But you know, typically in a quarter you really can’t figure out on a quarter performance in terms of segment split and nuances because typically what we see a lot larger duration which actually rolls up to at least 2/4 is something to get you a sense in terms of whether which segment is accelerating and which segment is actually more flattish.
But this Q1 split Subarna, if you have, you can share. Otherwise we can get in touch with them later maybe perhaps
Suparna Banerjee Bhattacharyya
I’ll just add here. See Pravaram Grid is our bread and butter business and that contributes to 40 to 45%. Regarding the other segments, it all depends on what kind of investments are coming and what kind of, you know, which orders we take. And it is not a very standard mix all the time. So we would refrain from commenting on that. But yes, Power and Grid is a 40 to 45% contributor to our overall business at all, almost at all times.
Naysar Parikh
And how much would Data center be this quarter?
Suparna Banerjee Bhattacharyya
See data then the data center, the investments come up like one big investment comes up at one point of time and then it is a little lull for some time. So we cannot really comment on that because there is no established trend as such in our numbers or even in the industry for that matter. I would say
Naysar Parikh
no, I was trying. To understand because the order wins. Obviously we seen strong growth. So I was trying to understand from where is, I understand the 45% of power and grid, where is the growth? What is driving that growth and acceleration?
Suparna Banerjee Bhattacharyya
Mainly power and grid and related energy sector.
Naysar Parikh
Okay, and for this year in the H2, what is, what would be your outlook on growth and margins? Don’t need to give numbers as such per se, but just directionally do you think H2 is looking better than H1? Just where you stand, both from order inflow and maybe margins as well.
Suparna Banerjee Bhattacharyya
Currently we’ll be completing H1 with the next quarter and honestly I need not say, but the orders itself and the backlog that we have, they are strong indicators that we shall have better numbers in the quarters to come.
Naysar Parikh
Thank you so much. All the best.
operator
Thank you. The next question is from the line of Mahesh Bintes from lic. Please proceed.
Unidentified Participant
Hi sir, thank you so much for the opportunity. Sir, in the presentation we have mentioned, I mean for this quarter our sales growth was muted. So we have mentioned that the moderate growth on account of spillovers and project delays. Sir, what is it possible to elaborate this.
Udai Singh
5% growth is what we have witnessed in this quarter, which is perhaps because of one main reason that there are certain projects which got shifted into Q2 and really if you ask me, not a matter of concern because we are talking for larger periods and what gets gets consumed and cannibalized in the subsequent quarters. So overall, as I had said before, we are staying with the guidance which is we have taken for the full year and which is also evident from the strong 26% growth in order which we have backed. So other than that, I mean nothing to be very particular.
And the project business quarters doesn’t really matter much because we talk about large iterations.
Unidentified Participant
So whatever the spillovers and project delays, those will be captured in Q2 and Q3.
Udai Singh
Yes.
Unidentified Participant
Sure. And sir, quarterly, I mean the order inflow is very, very strong. I mean this is based in last eight, nine quarters, sir. So is the momentum. Momentum will be continue going forward next two, three quarters.
Udai Singh
You know, if you see the data, and this is not specific to your company, but the data typically indicates a decline because if you see all the data which typically are the financial indicators if you really ask me. Like the GDP is strong. We actually have. If you remember last Q4 of last year we hit the GDP was upwards of 9%. Okay. Where we die Last year we were supposed to 7.1. We fell to about 6.5. The guidance of IMF recently 6.4. You know, the industrial. The IIP is another indicator which we speak of which is actually sort of I would say on a decline.
The GFCF another indicator is also for this quarter has not been great. So you know, in other words nothing to greatly worry about. But in my opinion as I look on a personal level, it’s something which we are sort of stabilizing. And you know, not to be too much concerned about the recent announcement geopolitical announcements which has been happening. These are few operations which eventually will get settled out, I’m sure. And overall not as bad. It’s not as weak. We are returning back to the normal set of operations like what we had. In fact the operation I would call will be the COVID era started 20.
Very lull in 20, you know, picked up greatly in 21 parts of 22 and now post that in 2324. We are sort of stabilizing. So we will get stabilized.
Unidentified Participant
And it’s the last question. I mean given the. What we heard from the tariff from us on India. So there won’t be any direct or indirect impact as such for us, major impact?
Udai Singh
No, no, not for us as the best of our knowledge.
Unidentified Participant
Sure. Thank you so much, sir.
operator
Thank you. Participants, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Abhijit Singh from Systematics. Please proceed.
Abhijit Singh
Thank you for the opportunity. Sir, any guidance that you would like to give for FY26 in terms of revenue growth margin and order inflow.
Udai Singh
I would request Suparna to take this if she can.
Suparna Banerjee Bhattacharyya
Well, thank you for your question but as I said that while we do not give any guidance on the numbers that we’ll be doing for the future. But it is important for you to see that the orders which have been picked up they will be executed with complete focus in the months to come. And we just hope that it should be good in terms of the future. Because anyways we had a muted Q1.
Abhijit Singh
So my question was based on the understanding that in Q1 and you can correct me if I’m wrong we have grown around 5% in terms of revenue. And if I look at the, and look at some of the peers in fact the entire industry, the growth seems to be more than this. So and one of the reasons that you mentioned is that there was some project delays on the customer level. So apart from that is there any other challenge that we are facing in terms of labor, in terms of market share loss, something like that that you would like to comment on?
Suparna Banerjee Bhattacharyya
No. See sales, a little moderate growth in sales doesn’t really give the indication that there is a loss of order or there is a loss of market share. It is just that it has been deferred from this quarter to that quarter in our case specifically talking of any other challenges like labor etc. Thankfully we do not see any such challenges. So our order execution is quite focused and quite, we are optimistic in terms of the order execution in the quarters to come for the orders which we have picked up. So no challenge.
Abhijit Singh
Also in terms of the order book, what is the mix between I mean the private clients and the government lines, PSU etc.
Suparna Banerjee Bhattacharyya
So mainly the PNG segment is I would say the government or the you know, partnership. So I would go that for 40, 45% predominantly pertains to the government. The rest kind of comes from private. Uday, if you would like to add to this.
Udai Singh
No, I think Subanna, you have actually shared it. I was just trying to tell Mr. Abhishek that you know when you really compare it’s very hard to find an industry which is exactly a set of and the scheme of things which we have now been mixed and I’m sure we have healthy double digit growth in certain companies which are from the peer side, not exactly the people who have puts for the quarter which is lesser than even five. So I would not like to comment upon the rest but what I’m saying quarter performance essentially is three months 90 days performance and as I had said before, staying confident that the guidance which we have taken internally for the full year FY26 we would be in a position to deliver it and that is evident from the order backlog which we have now created which is sitting at about.
Abhijit Singh
Right. Sir.
operator
May we request you to join the question queue for a follow up question?
Abhijit Singh
Sure. Thank you for answering the question.
operator
Thank you. The next question is from the line of number Naman Parmar from Navisha Investment. Please proceed.
Naman Parmar
Yeah, good morning sir. Thank you so much for the opportunity. Firstly I wanted to understand how is the capex is progressing and when it will be getting live in which quarter in Afy 27th.
Udai Singh
I can give you one answer which perhaps will summarize it all. We is all moving all the projects and they are many full. I would not be in a position to tell you each one of them. But just on a summary note, everything is actually moving as a plan and we have actually been taking the right set of actions to deliver the internal execution cycle and execution plan which we had thought of all is moving on track.
Naman Parmar
Okay. And secondly on the industry side, so don’t you think that the lot of players have increased their capacity and given that there is a very big demand from the renewable and data centers and all that. But don’t you think there is a very competitive pressures on the various equipment and that’s why the margin has been impacted or what’s the take on the industry outlook?
Udai Singh
No. So you know, because we follow our strategy. We you know, and you’re right there multiple manufacturers who actually have been expanding capacities. We are the ones who actually are niching ourselves out as one of the technology players with whom our customer engages and is happy to connect and transact with us because of the features and the usefulness and the reduction in the total cost of ownership which we bring into them. And therefore we are not running out of volumes, we are running out of technology. And. And we are also trying to see as to how we really can create a differentiation, as I said, in terms of those set of customers and whatever capacities are needed.
We have already started working on IT and maybe 200 plus crore is what we have planned. And this is besides what we started a couple of years ago which was another about 130 crores. So that’s something which we are trying to do and we are not eating anybody who is actually trying to enhance and put up manufacturing capacities. We are pretty strategic in nature and trying to invest and enhance capacities wherever we did.
Naman Parmar
Okay, thank you so much.
operator
Thank you. The next question is from the line of Jayesh Shah from OHM Portfolio. Please proceed.
Jayesh Shah
Hi. Thanks for the opportunity. Sir, you have been saying that you would maintain your guidance. So for the benefit of us, can you exactly tell us what is the guidance that you have been saying that you would maintain?
Udai Singh
I am afraid JI may not be perhaps possible to share the guidance but it will be something that Supana you would like to add. Is there anything which you can talk about? But I guess no.
Suparna Banerjee Bhattacharyya
Yeah, I’ll certainly add when we say guidance it is the internal target etc. Which we have with us. And of course because as an organization, as Schneider Electric in India, we are all poised for Growth in terms of the revenues, in terms of the margin, in terms of the working capital efficiency. I can only say that we are chasing those targets internally and please be rest assured.
Jayesh Shah
Okay, just to understand better, and I’m not asking for any numbers, if I look at the first quarter, what is effectively the capacity utilization and what is the peak level of revenue can achieve based on the current capacity and after the capex that is going on without giving the time frame. So I’m just looking at a theoretical capacity sales possible and companies operating at what capacity utilization right now to have this current turnover of you know, 400 crore, sorry, 600 crores.
Udai Singh
I can take that question. JG, if I would like to tell you we are operating at optimal level and the second question is. Second question if I recall right, was you know, when as and when the CAPEX comes up, we are gearing to building up those CapEx and those capacities which is assumed with which we will be operating at optimum level.
Jayesh Shah
I see. Can you quantify what is the optimum level?
operator
Mr. J. May we request you to join the queue?
Jayesh Shah
No, it’s the same question for clarification. Yeah, yeah. Can you quantify, you know, can you say the optimum or desired level, you know, from where you are, is it 2x3x over, you know, period. Once your capex gets commissioned and you get subject to, you’re getting orders. So I’m not committing you or holding you to it, but just want to understand the theoretical level as to what is the asset turn that would really be there and what’s the theoretical peak capacity sales?
Udai Singh
I would be. JG is a nice question, but we have actually declared this in our semi notary because there are multiple lines which are being expanded. We have actually said as to where we are and almost heading. So I think maybe perhaps if I may request you to have a note or we can separately reach out to you in terms of really telling you as to which areas are we expanding to what times 1x2x4x.
Suparna Banerjee Bhattacharyya
To add to this, the capacity expansion is in different lines and would come up at different points of time. Currently we are in the 85, 90% capacity utilization. But then I always say that even if we are at that level of capacity utilization, it’s not that we will not be able to accommodate another 10, 15% of business and we grow full capacity because during operations in a plant it so happens that sometimes with some extra shift, with some small.
Jayesh Shah
Yes, with some debottle, etc.
Suparna Banerjee Bhattacharyya
We are able to, you know, generate some additional Marginally additional volume also. So there’s nothing which you know right now from our capacity utilization point, there’s no bottleneck and in any case the lines will be ready in different points of time. So right now difficult to say. And that. And also what will be the asset turnover? That’s also difficult to say at the moment.
Jayesh Shah
But over three years can we look at something like doubling or tripling the theoretical level of operations?
Suparna Banerjee Bhattacharyya
Sorry, we can’t comment on that.
Jayesh Shah
Okay. Okay, I’ll reach out to you.
operator
Thank you. Okay, thank you. The next question is from the line of ANU Biot from Hedge Equities. Please proceed.
Unidentified Participant
Good morning sir. Thank you for taking my question. And I would like to know, as you have already said you have been focusing on the good order with margin, good market and quality training. So by what time you can expect the improvement in margin. Can you get an idea about that?
Udai Singh
See primarily what we are trying to see and explore and really work on those set of parties with which we are guaranteed for payments and of course where we get an opportunity to showcase some technological advantage which we bring to the market. And three, if it is strategic in nature to really showcase the technology which is aligned to India needs. Now the margin is always a mix and as you will appreciate is which line are you making, what is the product mix, how much are services, how much is transactional, how much is equipment, how much are projects.
And therefore you know it is very difficult to comment because quarter on quarter at times these components and these constituents changes. But on an overall thing when I said we are chasing the right orders I meant these qualifying criteria. And two is we are always looking for a right product mix so that we are able to sustain and keep definitive growth in the margins which we have been previously delivering on that level.
Unidentified Participant
Okay. Yeah. Thank you sir. And is there any cadence on the capex going forward?
Udai Singh
Yeah, we have announced to Sebi it’s actually been released and is available on the site. We can separately reach out to you if you so need.
Unidentified Participant
Yeah, okay, I can. Thank you. Thank you sir. And all the best.
Udai Singh
Thank you.
operator
Thank you. Due to time constraints, that was the last question. I now hand the conference over to Mr. Harid Kapadia for his closing comments. Over to you.
Harshit Kapadia
Thanks Shruti. We would like to thank the management of Standard Electric Infrastructure for giving us an opportunity to host this call. We also would like to thank all investors and use for joining for this call. Any closing remark Udaisa, you want to share with investors?
Udai Singh
No, I just would like to thank all of you in really having faith in us, having us move where we have reached till now. I can assure that the management has been taking all efforts to really drive this business. And have a great day. Thank you so much.
operator
Thank you. On behalf of Alara securities, that concludes this conference. Thank you for joining us. And you may now disconnect your lines. SA.