Danish Power Limited: Powering Ahead with Robust H1 FY26 Performance and Strategic Expansion

Danish Power Limited, a prominent player in India's power equipment manufacturing sector, has reported a strong financial performance for the first half of Fiscal Year 2026 (H1 FY26). The company, known for its quality-conscious approach and global standards, delivered impressive growth across key metrics, signaling a confident outlook for the coming years. This period highlights Danish Power's strategic execution and its ability to capitalize on the burgeoning demand in the power sector.

For H1 FY26, Danish Power Limited recorded a substantial revenue of ₹211.06 crore, marking a 29% year-on-year growth compared to ₹163.74 crore in H1 FY25. Profit After Tax (PAT) surged by an impressive 41% to ₹29.31 crore from ₹20.73 crore in the previous year. This robust growth was complemented by a significant 65% reduction in finance costs, reflecting improved fund utilization efficiency. The company's order book stands strong at ₹405 crore, providing a clear pipeline for the next 6-8 months and underscoring the robust demand for its products.

Strategic Initiatives and Capacity Enhancement

Danish Power's growth trajectory is firmly supported by strategic capacity expansions and a keen focus on market diversification. The company's first phase of expansion, which allows for the manufacturing of transformers up to 220 kV voltage class, became operational in October 2025. This significantly boosts its MVA capacity and positions it for larger, more complex projects. The second and final phase of expansion, funded by IPO proceeds, is slated for completion by December 2025, adding another 2500 MVA to its capabilities. While initial ramp-up for this phase is expected by March, it will further solidify Danish Power's market position.

To enhance operational efficiency and product quality, Danish Power is also undertaking backward integration into sheet metal fabrication through a subsidiary. This ₹20 crore capital expenditure project, expected to be operational within six to eight months, aims to mitigate bottlenecks and improve turnaround times, which are critical in a made-to-order industry. This initiative reflects the company's commitment to quality and customer satisfaction.

Market Outlook and Export Ambitions

The management remains highly optimistic about the industry's future, citing continuous demand growth from key sectors such as renewables, transmission, and distribution. The push towards green energy, the increasing power demand from artificial intelligence and data centers, and a growing replacement cycle in developed countries are all contributing factors to this positive outlook. Danish Power aims to leverage these tailwinds to sustain its growth momentum.

In a strategic move to diversify its revenue streams, Danish Power is aggressively expanding its export business. Having historically exported since the early 2000s, the company is now targeting 8-10% of its sales from international markets this year, with ambitious plans to increase this to 20% in the next year and 30% in the year after. This focus on global markets, coupled with its established client base in over 30 countries, is expected to provide a healthy balance between domestic and international contributions, ensuring sustained profitability.

Financial Discipline and Future Guidance

Danish Power's financial discipline is evident in its efficient working capital management. The company has maintained a healthy cash cycle, significantly reduced short-term borrowings, and optimized trade payables, leading to better pricing and financial stability. As a debt-free entity, it possesses robust financial health, enabling agile decision-making and competitive pricing.

Looking ahead, Danish Power has provided clear guidance for FY26, targeting revenues between ₹500-550 crore. Post-full capacity utilization, the company anticipates a peak revenue potential of approximately ₹750 crore, with an acknowledged capability to reach ₹1000 crore. The management's focus remains on sustaining healthy operating margins and ensuring that all expansions are backed by confirmed orders, reflecting a disciplined approach to growth and investor trust. The company is targeting execution of ₹600+ crore worth of projects in the next 8-10 months, while maintaining a lean balance sheet with disciplined working capital management.