ArMee’s renewable businesses form 88% of its order book

ArMee Intech Limited’s renewable-energy businesses represented 88.39% of its Rs 2,663.4435 crore standalone order book at June 30, 2026, despite Renewable Energy engineering, procurement and construction revenue first being recognised in Fiscal 2026. Renewable EPC, power purchase agreement and battery storage projects accounted for Rs 2,354.0438 crore across 13 of ArMee’s 99 ongoing projects.

Why do ArMee’s renewable businesses make up 88% of its order book?

ArMee’s renewable businesses make up 88% of its order book because solar engineering, procurement and construction, or EPC, solar power purchase agreements, or PPAs, and battery energy storage systems, or BESS, account for Rs 2,354.0438 crore of the Rs 2,663.4435 crore standalone balance. EPC contributed Rs 1,377.2571 crore, or 51.71%; PPAs contributed Rs 381.6030 crore, or 14.33%; and BESS contributed Rs 595.1837 crore, or 22.35%.

ArMee defines order book as the total contracted value of projects minus revenue already recognised. The measure excludes goods and services tax, escalation and changes in work scope not contracted by the relevant date. It is therefore a measure of remaining contracted work rather than reported revenue, and its conversion depends on performance under each project’s contractual terms.

The renewable balance is concentrated in relatively few projects. At June 30, 2026, ArMee had 10 renewable EPC projects, one renewable PPA project and two BESS projects, compared with 65 IT Infrastructure projects and 21 IT managed-services projects. The 10 EPC projects had aggregate capacity of 2,074.10 megawatts, while ArMee’s directly undertaken PPA project had 25.00 megawatts of capacity.

The PPA activity also extends through subsidiaries. ArMee disclosed two further solar PPA contracts, with 54.10 megawatts of capacity, through special-purpose vehicle subsidiaries. A special-purpose vehicle is a subsidiary established for a particular project, and ArMee operates renewable activities through its company and subsidiaries including ArMee MH Renewable Energy Private Limited and ArMee UP Renewable Energy Private Limited.

How did ArMee’s renewable order book change between March and June 2026?

ArMee’s standalone renewable order book rose to Rs 2,354.0438 crore at June 30, 2026 from Rs 842.2429 crore at March 31, 2026. Its share of the total standalone order book consequently increased to 88.39% from 70.42%. The total standalone order book increased from Rs 1,196.0602 crore to Rs 2,663.4435 crore over the three-month period.

The main change was in EPC and BESS. Renewable EPC order book increased from Rs 460.6399 crore at March 31, 2026 to Rs 1,377.2571 crore at June 30, while BESS added Rs 595.1837 crore after having no order-book balance at March 31. Renewable PPA order book remained Rs 381.6030 crore at both dates, although its share declined as the total backlog expanded.

The non-renewable order book changed differently. IT Infrastructure declined from Rs 267.3551 crore, or 22.35% of the March 31 total, to Rs 166.2640 crore, or 6.25%, at June 30. IT managed services increased from Rs 86.4623 crore to Rs 142.1357 crore, but its share fell from 7.23% to 5.37% because renewable commitments grew faster.

What does ArMee’s revenue history show about the diversification?

ArMee’s reported revenue history remains predominantly IT-based despite the renewable-heavy order book. Renewable Energy EPC generated Rs 124.6960 crore in Fiscal 2026, representing 8.93% of revenue from operations, after no Renewable Energy Solar EPC revenue was recognised in Fiscal 2025 or Fiscal 2024. The company describes renewable energy as a strategic growth and diversification area while acknowledging limited experience in the sector.

IT Infrastructure remained ArMee’s largest revenue category in Fiscal 2026 at Rs 1,199.4888 crore, or 85.81% of revenue from operations. IT managed services generated Rs 73.4413 crore, or 5.26%. Total revenue from operations was Rs 1,396.6261 crore in Fiscal 2026, compared with Rs 1,313.3137 crore in Fiscal 2025, a reported year-on-year increase of 6.34%.

The comparison shows both the newness of renewable revenue and a decline in the two established IT categories during Fiscal 2026. IT Infrastructure revenue fell by Rs 34.8265 crore from Fiscal 2025, while IT managed-services revenue fell by Rs 15.5571 crore. At the same time, 83.84% of Fiscal 2026 revenue came from government or public-sector undertaking clients, or projects where the end user was a government or public-sector undertaking.

How must ArMee convert renewable orders into revenue?

ArMee must complete different contractual obligations before renewable order book becomes revenue. In an EPC project, ArMee is responsible for project assessment, design, procurement of equipment, construction, commissioning and handover of a solar plant. Its projects are majorly billed on milestones, meaning revenue conversion depends on achieving the payment and performance milestones specified in each contract.

Under a PPA, ArMee develops, owns, operates and maintains solar assets, then supplies the electricity generated at a predetermined tariff for a specified period. Under BESS arrangements, it supplies energy from battery storage at a predetermined rate and is responsible for operating and maintaining the storage plants. These models differ from EPC because they include continuing ownership, supply or maintenance obligations rather than only project delivery.

Performance bank guarantees also affect the ability to execute and add projects. ArMee says such guarantees, including earnest money deposits, generally range from 3% to 10% of project value and may remain valid beyond completion because of operation, maintenance or warranty obligations. If ArMee cannot maintain the margins needed to secure guarantees, it says its capacity to obtain guarantees for new contracts could be affected.

ArMee had 263 employees at June 30, 2026, including 219 skilled and semi-skilled technical personnel, and engaged 1,648 contractual employees through third-party service providers. The company also states that its promoters’ and senior management’s expertise in the renewable sector is minimal and identifies regulatory, financial, technological and execution complexities. The renewable order-book mix will persist only if projects are performed, billed and maintained under these requirements.

What does the standalone figure exclude from ArMee’s renewable activity?

ArMee’s Rs 2,663.4435 crore figure is its standalone order book, which does not capture all PPA activity conducted through subsidiaries. The consolidated order book was Rs 3,287.3716 crore at June 30, 2026, compared with the standalone total of Rs 2,663.4435 crore. The consolidated renewable PPA order book was Rs 1,186.7158 crore across three projects, versus Rs 381.6030 crore for one standalone PPA project.

The difference reflects the structure disclosed for subsidiary projects. ArMee states that PPA-related activities for certain projects will be carried out by renewable-energy subsidiaries, while EPC work will be performed by the company. For the standalone measure in the headline, the 88.39% share describes projects contracted at ArMee rather than the larger groupwide PPA portfolio.

Project geography also illustrates the scale concentration in the June 30 standalone order book. Rajasthan represented Rs 677.9631 crore, or 25.45%, Madhya Pradesh represented Rs 595.1837 crore, or 22.35%, and Maharashtra represented Rs 760.6835 crore, or 28.56%. Together, these three states accounted for 76.36% of the standalone order book, largely reflecting renewable and BESS project values.

Conclusion

ArMee’s order book has shifted much faster than its revenue base. Renewable EPC, PPA and BESS projects represented Rs 2,354.0438 crore, or 88.39%, of standalone contracted backlog at June 30, 2026, while Fiscal 2026 revenue remained led by IT Infrastructure at 85.81%. The divergence reflects the distinction between secured remaining work and revenue recognised from completed contractual performance.

What to watch next is execution of the 13 renewable projects through EPC milestones, PPA development and BESS operating obligations, including the required bank-guarantee margins. ArMee has disclosed that it continues to evaluate and bid for renewable projects and proposes to explore BESS opportunities; future disclosures on project progress, subsidiary PPA activity and renewable revenue recognition will show whether the order-book mix is maintained.