Exicom Tele-Systems: A Deep Dive into Q2 FY26 Performance

Exicom Tele-Systems Limited, a prominent player in the critical power and electric vehicle (EV) charging solutions sectors, recently unveiled its financial results for the second quarter and half-year ended September 30, 2025. The company reported a robust standalone performance, with revenue reaching INR 228.4 crore, marking a significant 52% quarter-on-quarter and 54% year-on-year growth. This impressive top-line expansion was complemented by healthy increases in EBITDA and PAT, reflecting the company's strategic clarity and consistent execution across its business segments.

The Critical Power division, a cornerstone of Exicom's operations, demonstrated strong growth, with revenue climbing to INR 170.0 crore in Q2 FY26. This segment's performance was significantly bolstered by major milestone deliveries for the BharatNet project, where Exicom successfully deployed solutions for approximately 5,000 sites during the quarter. The company also secured substantial orders from large telcos and tower companies for lithium-ion batteries, capitalizing on the ongoing trend of lead-acid battery conversions. Export revenues from Africa and Southeast Asia contributed 11% to the quarterly revenue, with Exicom executing its first order for a major African tower company and expanding into new international markets like Ivory Coast and Cameroon. The EV Charger segment also experienced phenomenal growth, with revenue reaching INR 111.7 crore. This surge was primarily driven by new EV model launches from leading Indian OEMs and the accelerated adoption of e-buses under the PM e-Bus Sewa scheme. Exicom achieved its highest-ever sales of AC chargers, exceeding 20,000 units, and successfully migrated all customers to its Gen 2.0 DC charger platform.

Strategic Initiatives and Future Outlook

Exicom is actively pursuing several strategic initiatives to sustain its growth trajectory. The company's new Hyderabad plant is nearing completion, with trial production slated for November 2025 and full commercial production expected by January 2026. This state-of-the-art facility is designed to enhance manufacturing capabilities for PCB assembly, lithium-ion battery lines, and AC/DC chargers, promising more efficient production and better resource utilization in the long term. In the Critical Power segment, Exicom is eyeing significant opportunities from upcoming tenders for BharatNet Phase 3, BSNL network upgrades, and the Uncovered Village Project, collectively representing an addressable market of approximately INR 700 crore. The company is also diversifying into electric utilities, supplying DC power systems for SCADA networks, a segment expected to contribute to future revenue growth.

Navigating Consolidated Challenges with Tritium

While Exicom's standalone performance shines, its consolidated results continue to be impacted by the near-term losses of its subsidiary, Tritium. The consolidated EBITDA for Q2 FY26 stood at INR -32.7 crore, reflecting the ongoing challenges. However, management views Tritium as a long-term growth driver and has taken proactive steps to address its financial health. Exicom BV, the holding company for Tritium, has approved a $40 million fundraise to support product commercialization, working capital, and fixed cost coverage, with the aim of achieving EBITDA and cash flow breakeven by the last quarter of FY27. Tritium is focusing on key geographies like America, the UK, and Europe, targeting the fleet charging segment with its Tri-Flex DC fast chargers, and has been selected as a primary vendor for a major rollout in this sector.

Management's Vision and Investor Confidence

Exicom's management expressed confidence in the company's direction, emphasizing sustained improvement in standalone EBITDA in the coming quarters. They acknowledged the challenges posed by Tritium's losses but reiterated their commitment to its turnaround, highlighting the long-term potential. The company's disciplined capital allocation, evidenced by the utilization of IPO funds for the Hyderabad plant and debt repayment, underscores its focus on strengthening the balance sheet and driving sustainable growth. With a strong order backlog, strategic expansions, and continuous product innovation, Exicom Tele-Systems is positioning itself for continued leadership in its core markets, aiming to deliver long-term shareholder value despite the current consolidated headwinds.