Elin Bhiwadi plant targets Rs 150 crore, lacks full visibility

Elin Electronics Limited targets about Rs 150 crore of revenue from its Bhiwadi plant in fiscal year 2028 (FY28), but management has customer-planning visibility only for that amount, versus a stated potential of Rs 500-550 crore. Commercial production began in mid-September 2026, with about Rs 45-50 crore estimated for fiscal year 2027 (FY27).

What revenue is Elin targeting from Bhiwadi?

Elin is targeting about Rs 45-50 crore from Bhiwadi in FY27 and about Rs 150 crore in FY28. Management said FY27 has only about six months of contribution following the plant’s commercial start in mid-September 2026. The FY28 number therefore represents a scale-up from a partial first year, not full utilisation of the site.

Management’s longer-term goal is Rs 500-550 crore of revenue in approximately four years. It described that figure as Bhiwadi’s potential, rather than a revenue commitment. Management specifically said it could not provide a revenue assurance for Rs 500 crore at present.

The FY28 estimate is linked to three product categories: the product line management termed ORP, ceiling fans and chimneys. The plant began production with ORP, while fans and chimneys are planned additions. Management said the combined visibility from those categories supports the Rs 150 crore estimate for the next fiscal year.

How much Bhiwadi revenue has customer planning supported?

Elin has customer-planning visibility for about Rs 150 crore of Bhiwadi revenue in FY28, rather than the stated Rs 500-550 crore potential. Management said Elin does not use an order-book system, and customer indications received for planning are non-binding. It characterised the FY27 and FY28 revenue figures as reasonable estimates based on customer planning.

The plant’s construction plan reflects that distinction. Phase 1 comprises about 1.25 lakh square feet, against an eventual site size of roughly 2.25 lakh square feet. Management said it had not built the full facility because it did not yet have visibility for Rs 500 crore of revenue.

About 1 lakh square feet of factory-shed area remains to be built. Common utilities have already been completed, according to management, but Elin did not disclose signed orders, customer names or product-level volumes supporting the longer-term potential. It also gave no date by which it expects visibility to extend beyond Rs 150 crore.

What further capital expenditure does Elin plan at Bhiwadi?

Elin has capitalised about Rs 65 crore at Bhiwadi and expects another roughly Rs 12-14 crore of capital expenditure next year for the remaining shed area. The Rs 65 crore covered Phase 1 construction and common utilities. Management described the additional amount as an approximate requirement, not a final total cost for attaining Rs 500-550 crore of revenue.

In the first half of FY27, Elin spent Rs 77.5 crore on capital expenditure, including Rs 65 crore for Bhiwadi and Rs 12.5 crore for its existing business. The difference indicates that Bhiwadi accounted for most of the company’s reported first-half spending.

Elin reported net debt of Rs 6.4 crore as of September 2026. Working-capital days were 52 at September 2026, compared with 53 at September 2025. Management did not specify whether the proposed Rs 12-14 crore expenditure would be financed through operating cash flow, borrowings or another source.

How is Bhiwadi margin expected to change as revenue rises?

Elin expects Bhiwadi earnings before interest, tax, depreciation and amortisation (EBITDA) margin of about 2.5-3% in FY27 on revenue of around Rs 50 crore. Management said a newly operating factory carries fixed roles in general management, purchasing, maintenance and stores even when revenue is at an early ramp-up level.

At around Rs 150 crore of FY28 revenue, management guided to Bhiwadi EBITDA margin of 6-6.5%. That is an expected increase of about 3.5-4 percentage points from the FY27 plant-level range, based on improved absorption of fixed costs as turnover grows.

Management said Bhiwadi EBITDA margin could move towards 7-7.5% once turnover reaches close to or above Rs 400 crore, while stressing that level remains some time away. At the consolidated level, Elin reported quarterly EBITDA margin of 3.4% in the second quarter of FY27, up from 1.1% in the first quarter, and said Bhiwadi’s incomplete utilisation was weighing on overall margins.

What could affect Elin's Bhiwadi ramp-up?

Elin’s Bhiwadi ramp depends on bringing ceiling fans and chimneys alongside its initial production line. Management said it was adding brushless direct-current, or BLDC, ceiling-fan capacity at Bhiwadi. It expects annual BLDC fan output of about 500,000 units in the current calendar year and 750,000-800,000 units in the next calendar year.

Broader cost recovery is also relevant to the company’s profitability during the ramp. Management said minimum wages in the Ghaziabad region rose 25% in April and a further 7% from October 1, amounting to a cumulative increase of about 33-35% in six months. The region accounts for about 65% of Elin’s revenue, and management estimated the margin impact at close to 1 percentage point while it discusses assembly-cost recovery with customers.

Elin guided to FY27 consolidated revenue of about Rs 1,400 crore, with a variation of plus or minus 3%. Management did not provide firm EBITDA guidance because it cited macroeconomic volatility, but said full-year EBITDA margin should be above 2.5% and could fall in the 3-3.5% range. The Bhiwadi ramp will therefore take place while the company seeks to pass through material and labour costs.

Conclusion

Bhiwadi has a defined near-term revenue path, from about Rs 45-50 crore in its partial FY27 to about Rs 150 crore in FY28, with management expecting plant-level EBITDA margin to rise to 6-6.5% at the latter scale. However, the difference between that customer-supported plan and the Rs 500-550 crore potential remains material because management has not secured visibility for the larger figure.

The next disclosures to watch are whether Elin achieves its Rs 45-50 crore FY27 Bhiwadi estimate, ramps fans and chimneys alongside the initial production line, and proceeds with the indicated Rs 12-14 crore shed investment. Management’s margin expectation of 7-7.5% above roughly Rs 400 crore of Bhiwadi turnover remains a longer-term target, not FY28 guidance.