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• Danish Power Limited FY26 Investor Update */

Danish Power Limited ends FY26 with higher scale, while preparing for the next leg

Danish Power Limited closed FY26 with a sharp step-up in scale and profits, supported by steady execution in its core transformer business and improving financial discipline. On a consolidated basis, revenue from operations was INR 521.45 crore, up 22.20 percent year on year. Profit after tax rose faster than revenue, increasing 26.26 percent to INR 68.98 crore. EBITDA for the year stood at INR 99.72 crore, translating to an EBITDA margin of 19.12 percent.

The year was also defined by operational milestones. The company completed Phase II of its capacity expansion in January 2026, taking annual transformer manufacturing capacity to about 11,000 MVA. Management also highlighted the capability to manufacture transformers up to 100 MVA and 245 kV class, which expands the addressable customer set over time.

FY26 performance: growth with stable profitability

Even as revenue grew over 22 percent, margins compressed modestly versus FY25. Consolidated EBITDA margin fell from 20.91 percent in FY25 to 19.12 percent in FY26. Management attributed the softer margin profile to commissioning and ramp-up costs from the new facility, alongside a volatile external environment.

The company flagged global disruptions that can affect near-term execution. In the earnings call, management referred to geopolitical tensions, logistics issues, and commodity price swings, especially in transformer oil, aluminium and copper, as well as currency movement. Despite these factors, the company maintained EBITDA near 19 percent and improved PAT margin to 13.05 percent.

Financial summary (consolidated)

Business mix: transformers remain dominant

On a product basis, transformers remained the backbone of the revenue mix. The company’s product-wise disclosure shows transformer revenue of INR 478.64 crore in FY26, up 22.01 percent year on year, and accounting for 91.79 percent of total revenue. Control and relay panels contributed INR 35.87 crore, up 12.73 percent, representing 6.88 percent of revenue.

This mix indicates that Danish is still primarily a transformer manufacturer, even as it continues to sell control and relay panels and substation automation systems. In the earnings call, management described the panel and automation division as contributing around 7 to 9 percent of revenue, supported by grid modernisation and automation requirements.

A notable FY26 change was exports. The investor deck shows export revenue of INR 37.61 crore and domestic revenue of INR 476.89 crore. Management added context by stating export revenue moved from about 2 percent to about 8 to 9 percent of revenue in FY26, and the company remains focused on profitable export growth rather than volume-led expansion.

Strategy and execution: capacity, integration, and higher voltage readiness

The most important operational milestone was the commissioning of both phases of capacity expansion that were planned post-IPO. The company stated that annual capacity is now about 11,000 MVA. Beyond capacity, the facility is positioned as an upgrade in process capability, testing readiness, and scalability. Management also noted the facility supports higher voltage transformers, with manufacturing capability up to 100 MVA and 245 kV class.

While the capability is now available, management clarified that power transformers are not expected to become a meaningful revenue contributor immediately. Prototype development and type testing processes have commenced, and customer qualification is expected to progress through FY27. Management indicated that the segment could contribute meaningfully to revenue from FY28 onwards.

The company is also pursuing backward integration through an in-house sheet metal fabrication facility. This project was described as a key step to internalise outer bodies and cooling equipment, which management identified as a bottleneck for lead times and quality consistency. The investor presentation states commissioning is expected by August 2026. In the earnings call, management described a capital outlay of about INR 20 crore plus and said commissioning is expected in three to four months from May 2026. Importantly, management positioned this as an execution and quality initiative rather than an immediate margin expansion lever.

Danish also stated it upgraded its rating to Crisil A minus from Crisil BBB plus, and that 100 percent of IPO proceeds were fully utilised by March 31, 2026. The company additionally adopted Ind AS voluntarily, and highlighted ESG reporting systems and a Section 8 CSR vehicle.

Order book and FY27 outlook: guided acceleration, with commodity risks near term

The investor deck highlights an unexecuted order book of INR 500 plus crore. Management updated that the confirmed order book is over INR 500 crore, up from about INR 450 crore at the previous call, with deliveries spread across the next 6 to 9 months. Management stated that roughly 90 percent of this order book is expected to be executed within the current financial year, with some buffer for project delays.

A key qualitative shift is the order mix. Management said the pipeline is becoming more diversified, with contributions from battery energy storage systems, exports, and power transformer opportunities, alongside its core business. When asked specifically, management said battery energy storage could represent about 20 to 25 percent of the current order book.

For FY27, management provided explicit revenue guidance. Based on order visibility, capacity ramp-up and market outlook, management expects FY27 revenue to be more than INR 700 crore. It also provided volume guidance, indicating FY27 output of about 7,000 to 8,000 MVA and FY28 output expectation of more than 10,000 MVA.

On margins, management reiterated that EBITDA margins around 19 percent remain a key focus and suggested that 19 to 20 percent is sustainable. However, it warned that near-term volatility could affect Q1 FY27 due to the geopolitical situation and input cost spikes. Management specifically referred to transformer oil seeing an abnormal increase and said some older firm-price orders may come under pressure. It also stated that around 30 percent of the order book has a price variation clause.

Export share is another FY27 ambition. Management said the company is hopeful of reaching 15 to 20 percent of revenue from exports this year, supported by new capacity and framework agreements with international customers.

Takeaways

FY26 shows Danish Power scaling up while maintaining profitability. Revenue growth stayed strong, PAT grew faster than sales, and the company remained nearly debt free with improved credit rating. The key operational story is the move to about 11,000 MVA capacity and the start of the journey into higher voltage transformers.

The near-term monitorables are clear from management’s own commentary: commodity volatility, execution of older firm-price orders in a disrupted input environment, and working capital management as receivables have increased. At the same time, the order book of over INR 500 crore, guidance of more than INR 700 crore revenue in FY27, and higher export aspirations indicate management is positioning the company for a materially larger scale if execution holds.