Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Yash Highvoltage Limited (NSE: YASHHV) Q4 2026 Earnings Call dated May. 15, 2026
Corporate Participants:
Darshan Thakkar — Executive Director Finance
Analysts:
Suti Agarwal — Analyst
Dasha — Analyst
Akshay — Analyst
Dev Gandhi — Analyst
Hussain — Analyst
Vinay Khatri — Analyst
Rushin Shah — Analyst
SK Nathani — Analyst
Mehul Panchwani — Analyst
Tejas Thakkar — Analyst
Lakshmi Narayanan — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Yash High Voltage Limited, H2 and FY26 earnings conference call. 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. Ladies and gentlemen, good day and welcome to the YESH High Voltage Limited, H2 and FY26 earnings conference call. As a reminder, all participant lines will be in the lesson 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 touchtone phone. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Kyosha, Chairman and Managing Director from Yash High Voltage Limited.
Thank you and over to you sir.
Suti Agarwal — Analyst
Thank you Madam. Thanks Annufector for organizing this call and thank you everyone for joining for this call. Earnings Conference call for Yash Good evening everyone. Most welcome I am today accompanied by Mr. Darshan Thakkar our Executive Director Finance, Mr. Nero Patel, Executive Director Global Business, Mr. Sumit Podart, our CFO and Mr. Mithan Shusha, our Strategic Advisor. Our financial results, investor presentation and press release have been uploaded on the stock Exchange and our website and I trust all of you have had the opportunity to review them.
Financial year 26 has been a landmark year in the journey of Aerti Voltage. During this year we achieved our highest ever revenue EBITDA and profit after tax while also closing the year with an all time high order book. More importantly, the strategic milestones we committed at the beginning of the year have progressed meaningfully and largely as planned. Our order book as on 31st March 26th stood at 400 plus crore reflecting a very strong customer confidence and robust demand visibility. Our greenfield expansion project has entered the final phase of commissioning Sukrun Substantially, our USA subsidiary is now operational.
Strategic distribution partnership across Europe and UK are already active and we successfully achieved the technical milestone of in house testing of our first 245kV oil to oil transformer machine. I would like to take a moment to sincerely thank our employees, customers and investors for their continued trust and support throughout 26. It is their confidence and commitment that enables us to achieve milestones like this year after year before diving deep into the company’s highlight for the year.
Let me also take you through some industry backdrop. The industry backdrop continues to remain highly favorable supported by structural long term drivers globally as well as in India. India is currently witnessing one of the largest power infrastructure investment cycles in its history. Significant investments are being directed towards transmission and distribution infrastructure, renewable integration, grid modernization and electrification initiatives. Peak power demand in India is expected to increase materially over the coming years supported by rising industrial activity, addition EV infrastructure, data centers and AI driven power demand growth.
This in turn continues to drive strong demand across transformers and associated high voltage equipment. Within this ecosystem, transformer bushings remain a critical and irreplaceable component. Every transformer requires multiple bushings and therefore growth in transformer capacity directly translates into growth opportunities for our segment. Another important structural trend is the ongoing technology transmission transition from conventional oil impregnated bushings towards resin impregnated RIP bushings.
The RIP technology offers advantages such as lower maintenance requirement, improved operational safety and better long term performance reliability. Today, India remains heavily dependent on imported capacity cores for RIP bushings. The localization of technology represents a significant strategic opportunity for the Indian industry and this forms the course objective for our greenfield expansion project. Globally, the transformation industry also remains highly specialized with limited independent players and long customer qualification cycles.
Over the years Air Voltage has built approvals across leading utilities, transformer OEMs and industrial customers in more than 60 countries supported by a repeat order rate of 96%. We believe this creates a strong and durable competitive advantage for the company. At the current stage of the industry cycle demand continues to be significantly exceed global supply capacity across the transformer machine ecosystem. Our approach however remains measured and disciplined. We are focused not only on maximizing short term volumes but also on executive orders, effectively maintaining delivery times lines, preserving product quality and strengthening the long term customer relationship.
In a highly specialized industry such as ours, customers trust and technical liability are built over decades and we remain committed to protect that positioning operationally. The CAPEX additions completed in the existing facility including the high speed winding machine for capacity cores up to 245kV, SCADA control autoclave ovens and additional production infrastructure were enabled to absorb the current road cycle efficiently. We have also strengthened our testing and quality infrastructure with additional RAV and TRT testing setups along with a dew point measurement facility due to during the year the company further enhanced its quality and compliance standards for ISO 14001 and ISO 1445 001.
There are also strategic initiatives for which I would love to submit a progress update. We we are providing we have taken several strategic initiatives during the year on the Greenfield expansion Our greenfield expansion facility is at final stage. Civil work and PV structures are substantially complete. Key equipments have been received and installation is in progress and on schedule. Trial production remains on track with commercial production targeted in H2 of this ongoing year. This facility will enable localization of RIP and RIS cores manufacturing, reducing dependency on imported capacity course, improve cost competitiveness and unlock export opportunities in RIP RI segment for the company.
Importantly, we have also expanded the design capability of the project from originally planned 220kV range to 550kV now, significantly announcing our addressable market opportunity. The new facility is expected to add approximately 5 to 7,000 units of annual capacity focused on high value RF RIS products with gradual ramp up over the next few years. On the Sukrut Electric acquisition the Sukrut acquisition closed during the year. Our focus is on NOW operational stabilization, professionalization and value creation.
The acquisition strengthens our participation across the broader transformer component ecosystem and complements our existing product capabilities. On the international expansion front, our whole owned subsidiary yes HP USA is now operational and serves as an important strategic step towards strengthening our presence in the American market. Having a direct local presence significantly in improves customer engagement, accelerates our approval cycles and also enhances our ability to work closely with the utilities, OEMs and consultants in that part of the world.
In addition, our distribution partnerships with Wideman and Electrolink are now operational across select European, North African and UK markets helping expand our international reach through established local networks. Together these initiatives position us strongly for the next phase of export led growth, particularly as the greenfield facility becomes operational. I would now request I will now hand over the call to Mr. Darshan Thakkar, our ED Finance for financial highlights for the year. Thank you
Darshan Thakkar — Executive Director Finance
Thank you Mr. Kehu. Good evening once again to all of you and a Warm welcome to FY26 earnings call of Yacht High Voltage Limited. I would take you through the key highlights the financial highlights for the year starting with H2 FY26 the revenue from operations in H2 stood at 135.5 crores registering a strong 36% year on year growth over H2 of FY25. H2 EBITDA came in at 37.2 crores while SPAC stood at 23.7 crores reflecting our continued operational momentum during the second half of it. Second half of the year for financial year 26 revenue from operations stood at 235.1 crores reflecting a year on year growth of 57% over the previous year’s revenue of 150 crores.
The growth was supported by strong execution across domestic and export markets, benefits from capacity addition at the existing facility and an improved product mix. EBITDA for the year stood at 60.4 crores, a growth of 75% year on year, EBITDA margins stood at 25.7% compared to 23.1% in FY25, a growth of almost 260 basis points. This reflects our continuous focus on maintaining margin discipline even during a phase of accelerated growth and expansion. Profit after tax stood at 37.4 crores, a growth of 75% year on year translating into a PAT margin of 15.9% while basic EPS for the year stood at 13.08 rupees.
Our balance sheet continues to remain conservatively funded and financially strong. We maintain a near debt free profile supported by healthy liquidity, disciplined working capital management and a prudent capital allocation approach. Our debt to equity ratio stands at a comfortable 0.17 times. A testament to our disciplined capital management and the inherent financial strength of the business. Like Mr. Shah mentioned as on 31st March 2026, our order book stored at over rupees 400 crores. 400 plus crores providing healthy execution visibility over the next one to two years.
Thank you once again and we are now happy to open the floor for questions.
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 touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question.
Dasha
Ladies
Operator
And gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Akshay from AK Investment. Please go ahead.
Akshay
Hi sir. First of all, congratulations on a very good set of number. Sir, my first question is how much top line growth over the next two to three years are we anticipating? And whether the Middle east war had any impact or will have any impact the in the next one to two quarters in our operations or in inflation input cost inflation or something like this.
Suti Agarwal
So I. I understand your questions are on two part. One is the Middle east war whether it is affecting us or not and second is what is the revenue which we are expecting next two or three years, Right?
Akshay
Yes, yes, exactly. Okay.
Suti Agarwal
So first of all fortunately we are not directly impacted by the war situation as we do not have any exports in those areas of the world and neither our material comes from Any of these two three countries which are directly impacted by the war. Of course there is an indirect cost escalation to us because of the oil and the gas situation which has come up and vendors have been asking us for revised price but that we are also able to successfully communicate to our customers. So not much impact on this for sure Going forward in next two or three months how the development goes we will be able to understand as of now we we don’t see much of worry.
Maybe next to three months how situation stabilizes we’ll be able to get to know. As of now we are protected. Coming to the growth what we are expecting in next two or three years we have been growing at a consistent profit of 30 to 40% CAGR last five to six years. I believe that growth this year was much better. Our historical growth and feel that this growth momentum should continue next five six years and we should be able to grow at around 40 42% for next four or five years minimum. So that’s.
That’s what we believe. Yeah, we are confident for that.
Akshay
Yeah, exactly. Answer ETA margin and the PET margin are we also expecting the same over around 24 to 25. So we presently
Suti Agarwal
Are operating around 25 a bit 25 plus percentage on the E. We this year also we should be able to maintain around 2425% ETA. This year we will increasing. We will be increasing some expenses on the new factory also. But from next year onwards we will see gradual increase in the profit we have reduce our import dependency. Our margin expansion should begin. So from next year onwards we expect increase in the EBITDA this ongoing year we don’t expect further enlargement but we will also make sure that we maintain and we don’t let it fall down further.
Akshay
Okay sir. And sir, last question on the capacity increment we are. We are currently developing our new facilities. So when will it is when are. It is the. When do we expect to contribute to the revenue from this financial. Next financial year.
Suti Agarwal
So this new factory would be only and tested. So we should be able to start assembling and testing our products from the next month. And the commercial production of the RIP core should take another three to four months once we take internal trials and then we do the type test. Okay. So the revenue for totally indigenous made RIP bushings from our own factory might be towards the end of this year financial but the revenue from this plant will still begin as we would be able to utilize the facility for assembly and testing which is highly a shortage today for us at the Capacity capacity constraint at our local existing factory.
So the readiness of this factory definitely will help us improve our invoicing.
Akshay
Okay sir, thank you so much and all the best.
Suti Agarwal
Thank you sir.
Operator
Thank you. Next question is from the line of Dasha from Sapphire Capital. Please go ahead.
Dasha
Hello. Am I audible, sir?
Dev Gandhi
Yeah.
Dasha
Thank you so much sir for this opportunity and congratulations for a good set of numbers.
Operator
Firstly sir, in the second half we have seen a meaningful improvement in our gross in EBITDA margins. Could you please elaborate a bit more on what was the reason for that?
Suti Agarwal
Historically it has always been like that, that the third and the fourth quarter brings us always a higher portion of the turnover. And this is how it has been happening for so many years that the transformer companies in the second half of the year would demand more and that is reasonably been the reason for the increased revenue in the second part of the year. And purchases always happen in cyclic manner. So sometimes we have a price excretion from a vendor, sometimes we able to net a good price with our customer.
So that is the only reason for the change in the margin percentage? No, not. Not any very specific reason for that.
Operator
Okay. Okay, that is clear sir. And so this current order book, so we have 400cr audible. What is the sort of pipeline that you’re looking at? How, what is the sort of order inflow that you’re targeting for this year?
Suti Agarwal
Yeah, so we, we have a target to book at least 500/cr order this year also. So we, we could execute also this year with 40, 45% growth and also to have a healthy order book for, for the next year as a opening order book. So we are aggressive on order booking and we are continuing the order book filling every week, every month. We are reviewing very closely.
Operator
Okay. And so this is current capacity as we have. What is the utilization that we achieved in, in. In FR26?
Suti Agarwal
We have been able to utilize at least 75, 80% of our existing facility. Ongoing year. We should still be able to utilize at least 65 to 70% this year also.
Operator
So. Sorry, I could not hear you. Could you please repeat that?
Suti Agarwal
We have been able to utilize 75 to 80% in FY26.
Operator
Okay. And I think we made some additions. Please reach on the queue for more questions. Okay, thank you. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to three per participant. Should you have a follow up question, please rejoin the queue. We will take our next question from the line of Hussain From Carnelian Capital. Please go ahead.
Hussain
Just two things are. One is on the current capacity, what is the current capacity? And with the new capex what will be our new capacity? Because we have guided 80% is the current utilization and 65% will be next year on the increased capacity so can you give us the number of the in terms of capacity?
Suti Agarwal
So capacity I can describe in two ways One is by the number of bushing and second is by a value wise capacity so our present capacity of 9 to 10,000 bushing we have been able to produce 7 plus thousand bushing this year that’s the reason I mentioned around 75% we have been able to utilize and with the investments what we are doing in the Greenfield and the brownfield our total capacity will be moving to close to 15,000 bushings. Out of this we target that around 65% we will be able to use in the year 60, 20, 26, 27.
Hussain
That was helpful and secondly sir, I just want you to understand we are planning to have a fundraiser 150 odd crores. So what was the purpose of that fundraiser? Is it for a future growth? Can’t we take debt for the very specific reason we are taking this 150 crores
Suti Agarwal
So we are now considering we have taken an approval up till 150cr but we might not go to fully that extent around 100, 110 is what we are eyeing and that will be mainly for the capex for the increased production range up till 550 KV and the testing infrastructure also the ground field expansion at the existing unit Looking at the business scenario we are compelled to invest there also and also we have a working capital around 28 or 30 crore which we might remain open with an option to close it from the raise funds.
It’s an option we are exploring.
Hussain
Got it? Got it sir. And just one more thing sir in the bush transformer segment when I understand from the calls of the other companies one thing which is clearly there that the on the lower KV side is less than 400k is where there would be over capacity as the new capacities of all the companies come in. So there could be margin compression that can happen is the understanding the time by hand. So is it can there be a pressure on the bushing side? Because I think somewhere we are earning a very good margins of 20 watts per trade and the gross margins are also expanding so can we see some pressure on the margin especially on the gross margin side?
Suti Agarwal
I. I don’t believe that we would fall in that trap because Capacity addition is happening largely at the transformer side but the demand is also increasing globally. Okay. So generally I believe that there will not be any issue with the transformers also. And even if it happens at their end at our level since we are expanding our geography globally and especially since we will be localizing the product in India versus our imported component. So as such we are seeing margin expansion at the input stage also and also RIP once we start export we definitely see some better prices on the export size on the export side also.
So overall we should be able to to improve our E going forward irrespective of what happens with the transformer companies margins.
Hussain
Got it. And so just last one question. I’m sorry to interrupt.
Operator
Hussain, you may please rejoin the key for more questions. Thank you. Next question is from the line of Benjan Kabra from Nish N. Please go ahead.
Dasha
Hi. Thank you so much for the opportunity. I have a few questions. First is that how is the order tendering in the industry right now? Because in the last quarter that I hear and understand though it’s the most critical part right now but because of the commodity prices increasing, there’s lot of failovers in the order tendering both on the transformation side and also on the transmission side. So how is the scenario right now in India?
Suti Agarwal
So madam, there is a huge pressure to the transformer companies and the bushing companies also to increase the capacity and to be ready for the orders which they are getting and which eventually we have to execute. So the situation is the transformer companies are giving us blanket orders for the next 24 to 36 months and they want us to prepare the our site for those whole delivery execution. Maybe something in 2627, something in 2728. Okay. So from our side we are also securing the prices with considering the inflation, considering the inadvertent price rise which we might need to give to our suppliers also certain currency fluctuation.
So we also try to build on that. So make sure that we don’t end up into bleeding from our side if something goes abruptly wrong on the input side.
Dasha
Got it. So if they are giving you blanket orders then how long is the first execution cycle from the order that would take? Like what’s the nature of contract if there is any price hike for us also like insulator prices are increasing, oil prices are increasing and we import the code. So rupee depreciation is also one of the reasons. So what is the execution and how fast, how long is the contract and fixed contract variable?
Suti Agarwal
We have scheduled contracts with all our suppliers and as and when we get the material we are able to sell it to our customers. So there is no stoppage from either side.
Dasha
Either side. Got it. And so what’s the price side that you have taken from H1 to H2 and how is it right now?
Suti Agarwal
I didn’t get your question.
Dasha
What is the price hike in bushings that we have taken from for example H1 to H2 and how is it right now?
Suti Agarwal
I won’t be able to to tell us very specifically but it’s very clear that at appropriate time we have a understanding with our customer that based on what we will be needing to pay more based on the commodity price variation or the currency fluctuation. There is an arrangement with the customer that we will also be transferring their price rise to them and they are able to give it to us.
Dasha
Got it. And just one last I to export to the US where we have. Please rejoin
Operator
The queue for more questions ma’. Am. Thank you. We will take our next question from the line of Vinay Khatri from Turu Wealth Managers. Please go ahead.
Vinay Khatri
Hello sir. Good evening and congratulations for the good set of results. Yes and one of the transformer companies calls they were mentioning about the OIP having good demand than rip. I mean they were mentioning about rips capacities in the domestic market has come up but the OIB is facing shortage which is otherwise to what we were hearing from the wishing sector. So like I would love to hear your comments on this.
Suti Agarwal
So the feedback what you got is right that OIPs are in shortage. It is not that the RIP demand has reduced as we have been able to stabilize the RIP supplies. The customers are happy that they don’t have to wait for RIP machines. We are able to deliver on the schedule agreement but the OIPs we are not able to deliver because we are also limited on capacity and there is a huge amount of order which has come up to us also. So that is the reason which has translated into increased timeline which we now want to address by adding up our capacity.
In addition by doing this brownfield investment.
Vinay Khatri
Got it sir. And sir, after the second question is with respect to the capex that we have done for the backward integration after which there’s our positioning in the exports like earlier we were being restricted to sell in the export market. Is that thing getting removed after our backward integration?
Suti Agarwal
Yeah, there’s no restriction. We once we do, once we have our own bushing we can sell anywhere in the world.
Vinay Khatri
Thank you sir and all the best for the future.
Suti Agarwal
Thank you. Thank you sir.
Operator
Thank you. Next question is from the line of Naman Parma from Nivesha Investments. Please go ahead.
Vinay Khatri
Yeah. Good evening sir. Thank you so much for the opportunity. So firstly I wanted to understand basically on the volume side like that you have mentioned in the press release like current volume it was 7200 pushing. Right. And in previous it was 5752. Boing. So if we compare on 24 to 25 it’s more or less there is a decline in the volume but your sales has been grown. So can you clarify what’s the reason for that? It’s because of the KV class and all. That’s why the revenue and the volume look differently.
Or
Suti Agarwal
Our numbers have not reduced from 2425 to 2526 numbers have increased. No, from 5750 to 7000 bushing number to increase
Vinay Khatri
Means in DRHP it’s mentioned 5800. In 24 and 25 it’s 5752. So I was just asking about it. No, I can clarify after that. Yeah, not secondly. Yeah, yeah, secondly I wanted to understand on the Swiss contract so when it is going to ended and how
Suti Agarwal
We will be calibrated that contract has already got over. Okay. And they. They are supplying the material as per the contractual agreement till mid of 27. Okay. But otherwise the contract has got over with them the technology.
Vinay Khatri
Okay. So after the this overall backward integration all you will be able to sell anywhere the core or the.
Suti Agarwal
Yes sir, you are right sir.
Vinay Khatri
Okay, understood. And how will be the export market for you? Like us, you have started with the. We have got very good
Suti Agarwal
Encouraging response from all the customers globally. And they are waiting for our new factory to get ready so they can come and meet us, see the facility and place orders.
Vinay Khatri
Okay. And in next one or two years how much you expect from the export side?
Suti Agarwal
Our target would be that eventually in next two to three years we at least do 20% plus from exports.
Vinay Khatri
Okay, understood. Yeah. Thank you so much for answering.
Suti Agarwal
Thank you sir.
Operator
Thank you. Next question is from the line of Rushin Shah from Molecule from Molecule Ventures. Please go ahead.
Darshan Thakkar
Conversion serves a good set of numbers. Yeah, I have one question that what is our current status of R D for manufacturing coal in house? So are we through the process of manufacturing it in house or we have. We were going to have a tie up with one person from Switzerland again. So what is the status there?
Suti Agarwal
Yeah, so as the contract is ongoing with them and we have been able to successfully transfer the knowledge now we are going to commission the equipments and to start travel production to validate our knowledge what we have gained from them. And the contract is in it is continuous, ongoing. So if we have any challenges, they are there to support us.
Darshan Thakkar
So are there any chance that once we start manufacturing there will be some in our type testing. There will be some negative outcome which we have. Which will this we will have to face that could lead to, you know a delay in our production for rip.
Suti Agarwal
We always anticipate that there will be initial teething challenges. And that has been built in. Okay. So this year’s revenue is not dependent on the success of the localization of board from the new facility. Even if it is delayed for two, three months, our. Our this year’s plan revenue is not going to get affected.
Darshan Thakkar
Okay. So whatever you have added is without considering the rip getting in house. The 44.
Suti Agarwal
Exactly. Exactly. Exactly.
Darshan Thakkar
Okay. So my second question is in RIP exports market which you will target there will be. There will be competition from Chinese and European players as well. So what is our strategy to compete with those players? Are we trying to compete on the price side or there is something else?
Suti Agarwal
Availability. Availability and pricing and good infrastructure to showcase. These three are the most important for winning the customers trust.
Darshan Thakkar
Okay. And so what is the current autoclave capacity and how much bushing can we process in a single autoclave cycle? Is it. Is there any bottleneck in that?
Suti Agarwal
In our YP machines? We have a bottleneck. That is the reason we are adding capacity over there. No,
Darshan Thakkar
No. For. For the autoclave capacity.
Suti Agarwal
That is what I am saying. For the autoclave capacity we have a constraint. That is the reason we are investing in new autoclaves.
Darshan Thakkar
Okay. Thank you. I’ll get back to back in the queue.
Rushin Shah
Thank
Suti Agarwal
You.
Operator
Thank you. Next question is from the line of Suti Agarwal from Chhattisgarh Investment limited. Please go ahead.
Dasha
Hello. Am I audible?
Suti Agarwal
Yes, madam.
Dasha
Yeah. So my first question is
Operator
What is the revenue potential of sucrition.
Suti Agarwal
Sorry.
Operator
What is the revenue potential for the secret?
Suti Agarwal
We assume that in next four to five years we should be able to cross at least 150 to 160 crore of revenue. And presently it is around 25. 26 crore revenue financially at 26. And we believe that at least five to six times crore growth we can do in next four, five years.
Operator
Okay, sir. And so my second question is the green kill expansion which you are doing for RIT. So we have said it will start from H2. So can you tell me the month like
Suti Agarwal
We are targeting? October.
Operator
October. And sir, how is this different from the other bushing plants.
Suti Agarwal
I did not get your question,
Operator
Sir. The difference like what type of specialization this plant has from the other plants or the type of bushing.
Suti Agarwal
So this will be dry bushings which will be made in this factory. And the present factory we have oil impregnated bushing. This will be resin impregnated bushing. This will have different set of winding machines, different set of autoclave, different type of mixing dosing machines. So it is. It is very different from our existing products.
Operator
And what is the KV class of this machine?
Suti Agarwal
So we are making a facility for testing up till 550kV.
Operator
Okay. Thank you so much, sir.
Suti Agarwal
Thank you.
Operator
And
SK Nathani
Then my last question is like what is the timeline? I’m
Operator
Sorry to interrupt, ma’. Am. Please rejoin the T4 more questions.
SK Nathani
Okay, thank you.
Operator
Thank you. Next question is from the line of Rohan Kera from Singularity. Please go ahead.
Rushin Shah
Hi, am I audible?
Darshan Thakkar
Yes, sir. Yes,
Operator
You are.
Rushin Shah
Could you please double click on the margin expansion? Because in the last three years our margin EBITDA margin was about 20 to 21% excluding other income. But this year we jumped to in the second over overall like about 26%. So can you talk more about how did this margin expansion come in? Can you go into whether it was on the material side or whether it was more on the realization side? If you can please double click on that. And second is whatever. What are our plans to climb further up in the higher voltage category of bushings?
And are we Targeting higher voltage KV class of bushings more than north of 400 KV class? You just spoke about testing. But is there are there plans to have more earmark capacity for higher voltage bushings touching up to higher HVDC glass as well? If you can talk about that, that would be very helpful.
Suti Agarwal
So thank you for the question. The reason for the improvement in the EBITDA are mainly primarily for two reasons. One, definitely we have economies of scale. When we increase the turnover, we can negotiate better. Okay. And we could also get some good price recovery done from our customers. There is always a potential to utilize the situation when there is a shortage. And if you are able to extract better prices from the customer, as any, as any seller would do, we would also attempt that. Any we are successful, we get a better price.
And if we are able to negotiate better with our suppliers, we are able to reduce our input. So that has translated into a better margin. And we also did our currency hedging very correctly so that we were not too much impacted by the fluctuations that all we could do well. So our finance team also could do well on time. So that all has overall translated and slowly and steadily. Our export is also increasing. Our retrofit business is also increasing. These are all marginal business. So we are mixing and matching every possible ways where we can expand our profitability.
Coming to the increased voltage class. Yes, today with the 420kV for India and 550kV for the global market. Because in India after 420kV it is directly 800kV. But in global markets there is still a 550kV also. So with 550kV range, definitely we will be going one step above in the voltage clock us and beyond that for 765kV or the HC immediately. We would not plan next 18 to 24 months before we stabilize this factory and before we stabilize the product and the market and reach a certain potential.
After that, definitely yes, we are also open. We are in this industry and slowly and gradually as what the market demands, we would definitely be open to investing further into expanding and enlarging the capacity for further high EHV classes.
Rushin Shah
Okay, great. Thank you.
Suti Agarwal
Thank you sir.
Operator
Thank you. Next question is from the line of Mehul Panchwani from 40 Sons. Please go ahead.
Mehul Panchwani
Hello. Good evening sir. Thank you so much for the opportunity and congratulations on great set of numbers.
Suti Agarwal
Thank you, sir.
Mehul Panchwani
First I would like to appreciate your presentation. You know for example the slide which talks about the technology shift from OIP to rip. And I am tracking our company very recently. So that is helping me. So first question is about the rip. You have mentioned on the slide that the rip is 95% core is imported. So are we the first company in India to make rips or there are other. I mean, I don’t want to.
Suti Agarwal
There are three or four players in India who are putting a facility for localized rip. Apart from us, CG Power, Hitachi India and Mimi Moses Russian subsidiary in India. So there are four people who are investing in the capacity for localized RIP machines.
Mehul Panchwani
So sir, I mean is it because rips are not available so we are using. So let’s say for example if RIPs are available for whatever requirements we have, then OIPs will get redundant.
Suti Agarwal
It would not get redundant because there is still class of engineers who still like oip.
Mehul Panchwani
Okay. And sir, this is coming up. RIP is coming at Jarod or is the new capacity which new plant is Greenfield
Suti Agarwal
Factory is coming up at Jarod which is 20 km from Barod airport. And this will be fully utilized for Ayurvedic production.
Mehul Panchwani
Okay, so my next second Question is about the profit, I mean about the turnover. So you know you mentioned that we have orders worth of 400 crores. And right now we have generated a revenue of around 235 crores. So can we say that we will almost double our revenue because we are already having a 400 crore order book. Or are we maybe surpass even more than double of our current revenues? I
Suti Agarwal
Won’t be able to give an exact number, but as I told earlier in the part of the call that between 350, 360 to 400 is our target to invoice this year.
Mehul Panchwani
Right, sir. Okay. I’ll come back to in a few. Sir. Thank you so much. Thank
Suti Agarwal
You.
Operator
Thank you. Next question is from the line of Tejas Thakkar from ISG Investment. Please go ahead.
Tejas Thakkar
Yes sir. Thank you for the opportunity and congregation. A good set of numbers. I just wanted to understand that although we have mentioned that there is no kind of contractual obligation that we have with the company, with the, with msc. But do we have any, you know, residual IP related licensing restrictions that might come into few after we. No,
Suti Agarwal
No.
Tejas Thakkar
It’s a clean break. Is that clean? Clean,
Suti Agarwal
Clean, clean. No restrictive clause.
Tejas Thakkar
Okay. And so second is now once you make this rip like you mentioned, we’ll also have some testing period and all that before we can actually launch this commercially. And you explain that, you know, the revenues will start because of the job work, but actual business will come probably to the end of FY27 financial year. But what is the. You know, once you give it to our clients, it will be some time for us to, you know, testing and all that time will be taken. Right. So do you anticipate that all that will happen in this year or you think will be extended beyond FY28?
Suti Agarwal
No, no. Everything will be completed in this year. So the internal trials, type test and supplies commencement, everything will happen in this year only. Nothing will be pushed back to next year.
Tejas Thakkar
But sir, clients testing will happen. I mean internal testing is one thing, but there will be some time to lag for the clients approved. If I’m not wrong
Suti Agarwal
Today, that today the situation is such that everybody is waiting for the factory to get ready and a successful type test so they can pick up the material from the factory.
Tejas Thakkar
Okay, and the last question, what is the expected SUCRU debit that we foresee maybe from FY27 or 28? It will be
Suti Agarwal
Too early for me to comment. Let me us go through one or two more quarters over there. We are very positively, happily investing in that Company our times and time and efforts. But maybe in the next call, whenever we have in the later part of this I’ll be able to give more insight on that.
Tejas Thakkar
Okay sir. Thank you. And if you can just share that in your PPT also going forward about Sukrut in your next ppt we’ll appreciate. Absolutely.
Suti Agarwal
Absolutely. Okay. No problem.
Tejas Thakkar
Okay. Thank you so much, sir.
Suti Agarwal
Thank you.
Operator
Thank you. We will take a next question from the line of Prakash Pandey from Plenify Capital. Please go ahead.
Rushin Shah
Hello sir. Am I audible?
Suti Agarwal
Yes sir.
Rushin Shah
Yeah. My question is on the capacity side like once the new RF solution capacity gets commissioned. What is the capacity. Total capacity we will be having of four executions and rfm. You can.
Suti Agarwal
Sorry, I did not get the question.
Rushin Shah
Yeah, once the total the new RIP capacity gets commissioned. Right?
Suti Agarwal
Yeah.
Rushin Shah
Yeah. Then what is the total capacity? We be like how much will be o capacity and how much will be capacity.
Suti Agarwal
So the total bushing capacity of around 15,000 bushings and a revenue potential of close to 700 crore. Out of reach around 100 crore. 100 odd crore would be for OIP and balance will be for RIP.
Rushin Shah
My question was in terms of the units like currently we have about 30
Suti Agarwal
Difficult to translate into units because 400kv bushing can be of 40 legs and a 24kv bushings of OIP can be of 30,000. So.
Rushin Shah
My question is regarding your order book, right? So currently the kind of orders that you see coming in like how much percentage is offered of RIP and how much is of OIP and do you see any kind of growth in your order book when it comes to rip?
Suti Agarwal
The order booking is of the almost same proportion as of what we have been invoicing. Okay. So close to 15 to 18% is combination of OIP and high current and balances of RIP.
Rushin Shah
Going forward do you see any kind of like demand coming in more from rpm?
Suti Agarwal
Right now the demand is from all the segments. OIP is also high currents also and RIP also. It’s up to us that what combination suits better to us to make our balance sheet healthier. That is the way we would book orders.
Rushin Shah
Okay, got you. So that’s it from my side. Thank you.
Operator
Thank you. Next question is from line of Hussain from Carnelian Capital. Please go ahead.
Hussain
From my side. I just wanted to know sir, government was thinking in between who basically allow Chinese bushings again input. If that happens, how do you see the risk in terms of the margins and in terms of our revenues?
Suti Agarwal
Sir, Chinese bushings are never restricted in India. Since last 67 years. There is always an option available with an Indian buyer to buy bushings from China. And they have not been doing probably our Indian pricing and Indian availability and Indian commercial terms. And after sales service is better. That is the reason they are not buying from China.
Darshan Thakkar
Got it sir. Got it. That was the only question from my side. Thank you.
Suti Agarwal
Thank you.
Operator
Thank you. Next question is from the line of SK Nathani. From SK Nathani. Please go ahead.
SK Nathani
Yeah. Hi sir.
Rushin Shah
Yes, sir. Yeah.
SK Nathani
Congratulations on your very good financial results. Just a general question because most of the questions have been taken up. So just generally question on this. Would you consider your better competitor and why? And if there is, if you say there is no better competitor than you, then you, why you consider yourself as a best.
Suti Agarwal
We don’t see any reason to discuss this. Everybody’s in the field. Everybody is good. Everybody, everybody has their fate in the market. So why would we say that somebody is not good and we are better or somebody, somebody is better and we are not good. Everybody has got its own poor competency to sell.
SK Nathani
So any, any competitor you consider better and why do you consider them better?
Suti Agarwal
No, no. Everybody has got a good company, good product and then the customer will decide whom he wants to buy from.
SK Nathani
Okay. The answer is actually political.
Operator
From
SK Nathani
My end.
Operator
Okay, thank you. Next question is from the line of Lakshmi Narayanan from Tunga Advisors llp. Please go ahead.
Lakshmi Narayanan
My question is that as you scale up, you’re talking about high growth numbers. What would be the constraints you would actually land up in? Is it the people or capital or capacity? I think capacity you anyway has? I mean there’s no problem in capacity. What, what would be the limiting conditions for you as you scale up
Suti Agarwal
Supply chain and people?
Lakshmi Narayanan
Okay, can you just tell me more about that?
Suti Agarwal
So moment we keep on growing, keep on growing beyond the point. We also need to have our suppliers also match the footsteps, right? And nowadays the suppliers also are getting opportunities from so many different areas, so sometimes they might not give us priority. So we need to expand our supplier base continuously. And in a product like us, it is always a difficulty that overnight you cannot add a vendor because their quality is going to be eventually reflecting on your overall product quality.
So a lot of time goes on in investing in developing a vendor. And if, suppose after six months, if I develop a vendor and then if he says that, sorry, Mr. Shah, I won’t be able to deliver you in this year because I have gotten a huge export order. So then my six months get wasted and I’m still remaining with the capacity constraint. Of course we are trying to mitigate it by doing each and everything in our capacity. But yes, that can be someday a problem. Second is we don’t know what happens with the war scenario if there is something abruptly going very wrong and if something comes which is totally out of the box unexpected, we don’t know what, what can be done over there.
And people, yes, always there is a challenge on the people front because there is a huge amount of attrition happening in the entire sector and our product win niche. Very few people are there in this field. It takes a while to invest on people and develop on them and we, we sometimes are not able to retain them. We are not always able to meet their expectations. So yes, that’s a challenge for us.
Lakshmi Narayanan
And, and how are you. I mean as you scale up is your current supply chain would actually take you to what level mean of course it’s a concurrent thing. You’re working this kind of the next one year. You think your supply chain is kind of completely buttoned up
Suti Agarwal
At the moment. Everything is buttoned up. No problem for next 2, 3 years unless something abruptly comes which was below the belt and which we never expected.
Lakshmi Narayanan
Okay. And. And one other second. Just one. One question madam. I, I just have only one question. You. You’re taking capital, equity capital, right? And, and how do you consider equity over debt? Is it not debt? This better for you? Like I mean we,
Suti Agarwal
We understand that mathematically the debt is always a better rule but we also want good investors on our cap table and we also personally I am a bit debt traverse person. I would prefer to reminded free.
Dev Gandhi
Okay,
Lakshmi Narayanan
Thank you so much.
Operator
Thank you. Next question is from the line of Dev Gandhi from I thought pms. Please go ahead.
Dev Gandhi
Yeah. Hi sir, this question is on the retrofitting side. So if you can let us know what was the revenue in FY26 from retrofitting and how do you see this number going in next two to three years?
Suti Agarwal
So I understand it should be close to 6 or 7% of our overall revenue. And we see that gradually it will keep on increasing the way we are expanding our reach and we are expanding our service and offerings to the international customers making it more and more visible. So and we are getting very good interest also from different customers across the world. So I don’t see there should be much a problem over there. Our MSR is very low. It is very high margin business. So it is also close to our heart to increase that business.
Dev Gandhi
Sure. Can you highlight what kind of EBITDA margin range do you make in this segment
Suti Agarwal
I won’t be able to give you an exact bifurcation
Dev Gandhi
Answer in terms of exports. I mean in next few years the larger growth driver is going to be exports. After the new plant comes in. I mean you know what all things the team is doing. Where are we in terms of are we ready with all the approvals with our customers or do they first want to see the factory and only then we’ll start getting the approvals. If you can, you know, run us through that journey.
Suti Agarwal
Yeah. So the first part is to develop a relationship with them and to understand what would be they needing to approve us. Somebody would say that I will need you to fill up all the documents and give me all the supporting credential and then we might not visit you. Somebody would say that unless I visited you, I will not start the process with you. So it is. It is different with every customer. So our at the moment our approach is very clear. We are making a touch base with every decision maker and trying to tabulate what what they would need.
If somebody wants a factory visit then we will organize a factory visit. If somebody says we are okay with a zoom call then we will do a zoom call. Somebody would say that send me all the documents when you are ready and then basis the document we will approve you. So we are okay for that also. So whatever they want we are doing and we are only increasing our reach.
Dev Gandhi
Sure. That’s it. From my. Thank you.
Operator
Thank you. Next question is from the line of Rushin Shah from Molecule Ventures. Please go ahead
Darshan Thakkar
Sir. For the new plant which we are doing out of 153 crore carrots, how much is already done and how much is spending?
Suti Agarwal
So close to 80 crore is already done and balance is now getting done in next two or three months.
Darshan Thakkar
Sir, can you please give us list of 7200 units sold in current year in terms of RIP and can you please give a split of units sold in rip? YP it
Suti Agarwal
Is. It is almost half up around 3500, 3600 for both.
Darshan Thakkar
Okay. Can you throw some light on average realization for rip, OIP and HC in domestic and export? Looks good
Suti Agarwal
But it is. It is always different on different rating. So I would not be able to generalize it
Darshan Thakkar
But any sense. Is there any increase in prices of wuing from last two three years or. Yeah,
Suti Agarwal
Yeah definitely there is an increase. No input cost is also increased and the price realization has also increased.
Darshan Thakkar
And just to confirm on the start of the call you have mentioned about ebitda guidance of 25%.
Suti Agarwal
Right? Right.
Darshan Thakkar
Okay. Thank you.
Suti Agarwal
Thank you.
Operator
Thank you. Next question is from the line of Shubham Padhya from Chhattisgarh Investment limited. Please go ahead.
Rushin Shah
Hi. Am I audible? Yes, sir. Yes,
Operator
You.
Rushin Shah
Yeah. Hi. So I just wanted to know how much busings go into a transformer. So let’s say for a transformer manufacturer, a transformer he sells at 50,000. So what would be the bushings cost?
Suti Agarwal
Approximately 5% of the transformer revenue is a bushing cost. And every transformer will need three bushings on the LV side, three bushings on the high voltage side and a neutral bushing. Got it?
Rushin Shah
Yeah, that’s it. Thank you.
Suti Agarwal
Thank you.
Operator
Thank you. Next question is from the line of Akshay for AK Investment. Please go ahead.
Akshay
Thanks for the follow up. Sir, I just had one small question regarding. Just regarding the recent cyber incident that happened. Is the recovery done or what was that regarding?
Suti Agarwal
No, there is no recovery. We have filed a police complaint and there is an investigation which is happening. And it will only be revealed after the investigation is over whether we are able to recover or not.
Akshay
Okay. So for that we have that expense out that from our pnl. Yeah,
Suti Agarwal
We have already expensed it out.
Akshay
Okay, sir. Thank you, sir.
Suti Agarwal
Thank you.
Operator
Thank you. Ladies and gentlemen. We will take this as the last question for today. I would now like to hand the conference over to Mr. For closing comments.
Suti Agarwal
Yeah. Thank you everyone for showing the interest in and for your music. For our company and our activities looking ahead, it is for 27 are clearly defined successful commissioning and the ramp up of the greenfield facilities. Along with this we will also continue to strengthen our international presence. We will deepen our customer relationship and also execute the sucrude integration in a disciplined and measured manner. We also remain committed to maintaining operational discipline, prudent capital allocation and sustainable profitability while scaling up the business.
To Conclude, financial year 26 has been a defining year for Yes I voltage. Marked by record financial performance, a strong order book, meaningful strategic progress and continuing strengthening of our competitive position. We wish to continue the same efforts for the upcoming year also. And we are doing each and everything possible in our capacity to ensure that we are able to utilize this time. Looking at the strong tailwinds, we are expanding our global opportunities. Localization driven growth initiatives, multiple strategic projects nearing completion.
We believe the company is entering the next phase of its growth journey and from a position of significant strength. We thank you once again for joining us today and for your continued interest and confidence in Yash. We look forward to interacting with you again in the coming quarters. Thank you so much, everyone. And thanks, headfactor, for organizing this call.
Operator
Thank you very much on behalf of Yesh High Voltage Limited. That concludes this conference. Thank you all for joining us today. And you may now disconnect your lines.
Vinay Khatri
Thank you, madam.