Eppeltone Engineers FY26 review: a strong H2, a large order book, and the next step into AMI services

Eppeltone Engineers Limited closed FY26 with revenue from operations of INR 1,347.4 million, EBITDA of INR 194.1 million, and net profit of INR 123.8 million. The year was not evenly paced. The company reported a subdued first half, followed by a sharp pickup in H2 as execution improved. H2FY26 revenue rose to INR 884.7 million versus INR 462.8 million in H1FY26.

The presentation also highlights a major one-off hit to reported performance. Management disclosed an irrevocable bad debts write-off of INR 62.4 million, quantified at 4.6% of FY26 revenue. Even with that charge, the company reported year-on-year growth in profits and a modest expansion in margins.

A manufacturing-led model supported by a widening product suite

Eppeltone positions itself as a metering and energy management solutions provider with a long operating history. It traces its origins to 1977, with early products in SMPS and power-conditioning devices, and a move into energy meter manufacturing in 1999. Today, the company’s portfolio spans single and three-phase static energy meters, smart meters, LTCT meters, multifunction meters and accessories. It also sells polycarbonate meter boxes, and lists newer product lines in water and gas metering.

The company frames its value proposition around reducing AT and C losses, improving accuracy, and enabling utilities to spot abnormal conditions and unauthorized abstraction. It also cites approvals and certifications across quality, safety, telecom and R&D, and notes empanelment with more than 36 DISCOMs, CPSUs and major contractors.

FY26 performance: H2 turnaround, stable EBITDA margin, higher gross margin

FY26 revenue grew to INR 1,347.4 million from INR 1,243.4 million in FY25. Gross profit increased to INR 470.2 million and gross margin improved to 34.9% from 33.3% in FY25. Management attributes the margin expansion to operational efficiencies and a favorable product mix shift towards smart meters, while also noting the impact of higher dollar exchange rates in the last six months.

EBITDA rose to INR 194.1 million in FY26 from INR 177.8 million in FY25, with EBITDA margin broadly flat at 14.4%. Reported PAT increased to INR 123.8 million from INR 109.6 million.

The half-year bridge helps explain the year’s shape. H2FY26 delivered INR 884.7 million in revenue versus INR 741.7 million in H2FY25, and EBITDA of INR 107.7 million. The company notes a turnaround in H2 driven by stronger execution and operational improvements.

Order book visibility is strong, but working capital signals require attention

The most important forward indicator in the presentation is the order book. Eppeltone reports a FY26 closing order book of INR 3,439 million excluding GST, executable over 18 to 24 months. It also discloses incremental additions of INR 316 million to the order book between 31 March 2026 and 20 May 2026.

Such an order book can provide revenue visibility, but it also tends to stretch working capital in project-driven manufacturing. The FY26 balance sheet shows clear working capital expansion. Trade receivables increased to INR 689.3 million in FY26 from INR 271.2 million in FY25. Inventories rose to INR 585.7 million. Cash and cash equivalents stood at INR 33.6 million.

Management’s disclosure of a bad debt write-off of INR 62.4 million adds another layer to the receivables story. The presentation does not provide customer-level details or aging, but the write-off is large enough to be material in the context of FY26 earnings.

Borrowings also reflect the heavier working capital cycle. Short-term borrowings rose to INR 225.2 million in FY26 from INR 125.8 million in FY25, while long-term borrowings reduced slightly to INR 164.8 million.

Strategy and outlook: AMI services, new facility, and water and gas meters

The company’s “Way Forward” section lays out four priorities.

First is the entry into AMI services. Eppeltone describes this as a transition towards a service-led model that can reduce dependence on manufacturing cycles and increase resilience. The presentation frames it as an expansion across the smart metering value chain, supported by the broader digitization of power distribution. While the strategic intent is clear, the document does not disclose revenue targets, contract wins, or the current scale of services.

Second is the water and gas meter segment. The company states these products are at an advanced stage of approvals, with order inflows expected in the forthcoming financial year. It also notes onboarding of professionals with over 15 years of experience in this industry. The key dependency here is the completion of approvals, which the company directly acknowledges.

Third is capacity expansion and smart manufacturing. Eppeltone plans a new facility and intends to upgrade manufacturing with IoT-enabled automation to improve output, reduce costs, and enhance quality. The timeline is specific: the new facility is expected to be operational in Q3 FY27. However, capex size and incremental capacity are not disclosed in the presentation.

Fourth is the company’s focus on IoT and analytics through its Head-End System platform, MidasEpp. The presentation highlights features such as end point protection, AI and cybersecurity readiness, and scalability. It positions the platform as a growth lever for AMI and smart grid deployments. Deployment metrics are not provided.

Market context: government rollout remains a key demand driver

The company ties its medium-term opportunity set to India’s smart metering push. It cites National Smart Grid Mission data as of 31 December 2025, with around 20.33 crore meters sanctioned and 6.13 crore installations completed. It also cites a sharp reduction in AT and C losses from FY21 to FY25 and highlights that government fund release is linked to utility performance metrics such as loss reduction and the ACS-ARR gap.

These data points support the broader thesis that utilities will need to keep investing in accurate metering and loss control, and that qualified domestic manufacturers with approvals can benefit.

Key takeaways

FY26 reinforces Eppeltone’s ability to execute strongly when project deliveries accelerate, as seen in the sharp H2 recovery. The disclosed order book of INR 3,439 million provides visibility over the next 18 to 24 months. At the same time, the FY26 bad debt write-off and the sharp rise in receivables and inventories suggest that working capital quality and collections discipline will be central to sustaining profitable growth.

Strategically, the planned commissioning of a new facility in Q3 FY27 and the stated move into AMI services indicate an intent to broaden beyond pure manufacturing. The near-term execution markers to watch, based strictly on this presentation, are the conversion of the order book into revenue, the start of water and gas meter order inflows after approvals, and progress towards the Q3 FY27 facility operational timeline.