Exicom Tele-Systems: Navigating Growth and Turnaround in Q3 FY26

Exicom Tele-Systems Limited, a prominent player in India's critical power and EV charging sectors, recently unveiled its financial results for the third quarter of fiscal year 2026 (Q3 FY26). The period, ending December 31, 2025, showcased a company in transition, balancing robust domestic growth with the strategic integration and turnaround efforts of its international subsidiary, Tritium. While standalone performance demonstrated significant year-on-year (YoY) growth and positive profitability, consolidated results reflected the ongoing impact of Tritium's operations.

For Q3 FY26, Exicom reported a consolidated revenue of Rs. 276.7 crore, marking a substantial 40.7% increase compared to Rs. 196.6 crore in Q3 FY25. However, the consolidated EBITDA stood at a negative Rs. 32.3 crore, and the consolidated Profit After Tax (PAT) was a negative Rs. 66.1 crore. This contrasts with the standalone performance, which saw revenue climb to Rs. 233.7 crore (up 58% YoY from Rs. 147.7 crore in Q3 FY25) and a positive PAT of Rs. 3.5 crore. The management highlighted that Q3 was a period of consolidation rather than acceleration, with a strategic focus on building the order pipeline, acquiring new customers, and improving execution across its business verticals.

Consolidated Financial Highlights (Q3 FY26 vs Q3 FY25)

Segmental Performance: Critical Power and EV Chargers

The Critical Power segment emerged as a significant growth driver, with consolidated revenue reaching Rs. 170.4 crore in Q3 FY26, a remarkable 98% increase over Rs. 86.1 crore in the corresponding quarter last year. This growth was primarily fueled by the BharatNet project, where Exicom is a market leader in hybrid UPS, batteries, and smart rack solutions, and by securing large purchase orders for DC power systems from major Indian telecom players. The company's open order book for Critical Power stands strong at Rs. 1,435 crore, providing substantial revenue visibility for the next 24-30 months. Management anticipates the Critical Power business to approach Rs. 1,000 crore by FY27, driven by an estimated CAPEX plan of over 120,000 new or upgraded telecom sites.

The EV Chargers segment, including Tritium, recorded a consolidated revenue of Rs. 106.3 crore in Q3 FY26, a slight decrease of 3.8% YoY from Rs. 110.5 crore. However, excluding Tritium, the EVSE segment demonstrated a healthy 6.7% YoY growth. The Indian EV market continues its upward trajectory, supported by new EV model launches and government schemes like PM e-Bus Sewa. Exicom is expanding its footprint with new customers across portable, two-wheeler, and electric truck charger segments, diversifying its revenue streams. The company's 'Exicom One' offering, which provides end-to-end EV charging site construction and management, is gaining traction with OEMs and CPOs, with further expansion expected in Q4 FY26.

Consolidated Segment Revenue (Q3 FY26 vs Q3 FY25)

Tritium Turnaround and Strategic Initiatives

The acquisition of Tritium has been a key focus, and management expressed confidence that the stabilization phase is now complete, with the subsidiary entering a growth phase. Tritium is projected to achieve its first double-digit million-dollar revenue quarter since acquisition in Q4 FY26, with an estimated $10 million in revenue, which is expected to cut its EBITDA losses by half compared to Q3. The long-term goal for Tritium is to achieve EBITDA breakeven by the later part of FY27, targeting a 3x revenue growth in FY27. This outlook is supported by a secured$30 million purchase order and forecast for high-speed DC EV Chargers from a large US customer, with deliveries scheduled throughout calendar year 2026.

Furthermore, Exicom is investing in the TRI-FLEX product development, with over $3 million invested in pilot lot builds. Production of the TRI-FLEX system is slated to begin in Tennessee in March 2026, with initial deployments in the US and EU expected to build momentum for future orders. The company also successfully secured$10 million in equity capital for Tritium from a UK-based PE firm, reinforcing its financial position for growth.

On the manufacturing front, the new Hyderabad plant is rapidly ramping up operations. It is already handling 100% of Li-ion battery assembly, and production for AC chargers, DC chargers, and SMPS has commenced. The plant is expected to be fully functional by March 2026, significantly enhancing Exicom's production capabilities and efficiency. The deployment of IPO and Right Issue funds has been largely completed as planned, supporting these strategic initiatives.

Outlook and Future Focus

Exicom is proactively expanding its global footprint, particularly in the Critical Power segment. The company aims to increase its export revenue contribution from 10% of total sales in Q3 FY26 to 20% in FY27, focusing on markets in Africa, Southeast Asia, and the Middle East. New product launches tailored for these international markets are expected to drive this growth. The company is also making inroads into the Battery Energy Storage Systems (BESS) market for commercial and industrial (C&I) segments, securing initial orders worth Rs. 10 crore.

Despite the current consolidated losses primarily due to Tritium, Exicom's management maintains a balanced and confident outlook. The focus remains on leveraging the strong order book in Critical Power, capitalizing on the growing Indian EV market, and ensuring the successful turnaround and growth of Tritium. The ramp-up of the Hyderabad plant and strategic export expansion are poised to strengthen Exicom's market position and drive future profitability.