Concord Control Systems: On the Fast Track with Record H1 FY26 Performance

Concord Control Systems Limited, a prominent player in India's railway technology sector, has reported an outstanding financial performance for the first half of fiscal year 2026 (H1 FY26). The company achieved its highest-ever H1 numbers, signaling a period of accelerated growth and strategic expansion. Consolidated revenue from operations surged by an impressive 64% year-on-year, reaching ₹81.55 crore. This robust top-line growth translated into significant profitability, with EBITDA increasing by 53% to ₹21.73 crore and Net Profit after Tax (PAT) soaring by 85% to ₹16.02 crore. These figures underscore Concord's strong execution capabilities and the increasing demand for its advanced railway solutions.

The company's performance was bolstered by a substantial increase in its order book, which grew by 47% to ₹313.00 crore as of September 30, 2025, compared to ₹212.54 crore on March 31, 2025. This healthy order pipeline provides strong revenue visibility and reflects the successful commercialization of its innovative products. The management attributes this explosive growth to years of dedicated R&D efforts and strategic initiatives that are now bearing fruit.

Strategic Milestones Driving Future Growth

Concord's exceptional H1 FY26 performance is a direct result of several strategic milestones achieved during the period, positioning the company for sustained long-term growth. A pivotal development was the RDSO technical prototype clearance for Kavach 4.0, the indigenous SIL-4 ATP (Automatic Train Protection) system. This clearance is a critical gate-pass for field trials and commercial deployment across Indian Railways, making Concord's associate, Progota India, a developmental vendor for all upcoming Kavach 4.0 tenders. The company has already secured its first Kavach 4.0 order worth ₹19.45 crore through Progota India, marking the first live implementation of this advanced safety technology.

Another groundbreaking achievement is the development of India's first indigenous zero-emission propulsion system for diesel locomotive conversion. This 100% indigenous system, featuring LFP batteries and a DC chopper drive, has been retrofitted on a 700 HP platform. This innovation aligns with India's net-zero emission goals and offers significant fuel savings and efficiency, with global market potential. The management views this as a 'game-changer' that will transform Concord's trajectory.

Furthermore, Concord made a strategic leap into high-value Electronics Manufacturing Services (EMS) and railway electronics by acquiring an 80% stake in Fusion Electronics Pvt Ltd, India's largest flexible PCB manufacturer. This acquisition provides crucial backward integration for Concord's products, enhances manufacturing capabilities, and is expected to generate an additional ₹200 crore in revenue at full capacity with EBITDA margins upwards of 20%. The company also entered the Metro Business through a technology transfer agreement with a German firm for overhead monitoring solutions, securing an order from DMRC.

Management Outlook and Vision

Concord's management expressed strong confidence in the company's future trajectory, projecting a revenue CAGR of 40-50% over the next 3-5 years and aiming for a five-fold increase in revenue within 2-3 years from FY25 levels. They also anticipate maintaining EBITDA margins in the range of 22-25%. The vision is to become a 360-degree solution provider to the railway industry, with a focus on ESG initiatives, including hydrogen and battery technologies.

Mr. Gaurav Lath, Joint Managing Director, highlighted the company's transformation into an R&D and innovation-driven entity, with over 110 R&D engineers focused on developing cutting-edge solutions. He emphasized that Concord is not just thinking about the future but executing it speedily, positioning itself as a major railway innovation company in India and aspiring for global leadership. The company's disciplined approach to acquisitions, ensuring high conviction and clear opportunity, has been key to its inorganic growth strategy.

Concord Control Systems is clearly in a golden phase, leveraging indigenous technology, strategic acquisitions, and a robust order book to capitalize on the massive modernization drive within the Indian railway sector. The company's focus on safety, sustainability, and advanced electronics positions it as a formidable player poised for significant long-term value creation for its stakeholders.