Hind Rectifiers FY27: 30% Growth Target, $1B Plan

Overview of the FY26 earnings call

Hind Rectifiers outlined fresh growth targets and investment plans after its Q4 and FY26 earnings conference call held on Monday, May 18, 2026. The Mumbai-based power electronics player said it is targeting 30% standalone revenue growth in FY27. It also reiterated a longer-term aspiration to scale revenue to $1 billion within five years, which it described as roughly a tenfold increase from its FY26 revenue base of INR 949.2 crore. Management said consolidated growth targets will be reviewed in the next quarter. Alongside growth guidance, the company detailed capacity expansion plans and gave an update on its newly acquired European subsidiary.

FY26 performance: strong standalone growth

For FY26, Hind Rectifiers reported a sharp year-on-year expansion in its standalone business. Standalone revenue from operations rose 44.8% to INR 949.2 crore from INR 655.4 crore in FY25. Standalone EBITDA increased 45.5% to INR 102.5 crore from INR 70.5 crore in FY25. Standalone profit after tax (PAT) rose 54.7% to INR 57.7 crore from INR 37.3 crore. Cash flow from operations improved 154.8% to INR 90.7 crore. Return ratios also improved, with ROCE at 24.2% versus 23.4% in FY25 and ROE at 30.3% versus 26.2% in FY25.

Consolidated FY26: revenue near INR 1,000 crore

On a consolidated basis, the group reported revenue from operations of INR 999.1 crore for FY26, up 52.5% year on year. Consolidated EBITDA grew 19.6% to INR 84.1 crore from INR 70.3 crore in FY25. Consolidated PAT after minority interest rose 21.3% to INR 45.0 crore. Cash flow from operations grew 141.0% to INR 85.8 crore. The company also highlighted a healthy order book of INR 845.5 crore.

Q4 FY26 results: growth in revenue, mixed profit signals

For Q4 FY26, Hind Rectifiers reported consolidated revenue from operations of INR 279.8 crore, up from INR 185.0 crore in Q4 FY25. In the earnings call deck and management commentary, the company also disclosed standalone Q4 revenue from operations of INR 260.0 crore (versus INR 185.0 crore in Q4 FY25) and standalone Q4 PAT of INR 16.4 crore. At the consolidated level, multiple disclosures pointed to pressure on profitability due to the first year of consolidation of the European subsidiary.

Some published summaries reported consolidated net profit attributable to owners of INR 4.51 crore for the quarter, down from INR 9.99 crore in Q4 FY25, while other data points indicated a reported consolidated net loss of INR 1.59 crore for Q4 FY26 after accounting for non-controlling interest effects. Management also referred to a Q4 consolidated EBITDA margin of about 3%, attributing this to the subsidiary operating below break-even in its first year under consolidation.

What drove FY26 momentum: traction transformers and new verticals

Management flagged traction transformers as a defining product line in FY26 and said the company holds the largest market share in the industry. It said the near-term focus is to defend and extend that position. The company also said it commercialised a fully automated copper conductor facility during the year and has started receiving trial orders from private customers. Management expects revenue generation from this vertical to build over time.

The company also discussed a shift toward integrated railway power electronics, stating that this transition has tripled its addressable wallet share per locomotive. It quantified the wallet share per locomotive at approximately INR 5.0 to 5.5 crore.

Order book and order inflows

Hind Rectifiers reported an order book of INR 845.5 crore as of March 31, 2026. New order inflows for FY26 were stated at INR 858 crore. Management noted that order intake can be structurally lumpy, particularly due to railway-led ordering patterns. The order book and execution cadence remain central to visibility on FY27 revenue conversion.

FY27 outlook: 30% standalone revenue growth target

For FY27, the company reiterated a target of 30% standalone topline growth. It said consolidated growth guidance will be reviewed in the next quarter. The company also set a medium-term profitability aspiration, targeting mid- to late-teens EBITDA margins by FY31. This is a stated goal rather than a reported metric, and management positioned it as part of a five-year scale-up plan from the FY26 base.

CAPEX plans: capacity expansion across key lines

On capital expenditure, the company said CAPEX for FY26 stood at approximately INR 70 crore. For FY27, it plans INR 50 crore in CAPEX. The stated purpose is to expand capacity across transformers, propulsion, and the copper plant. These investments tie back to the company’s focus areas in railways and industrial segments and are intended to support higher volumes.

Subsidiary update: Elventive France and path to profitability

Hind Rectifiers said its subsidiary Elventive France (also referred to in the call context as formerly Beink Solutions) provides manufacturing and R&D presence in Europe across EMS, robotics, and printed electronics. Management stated that the business is currently running at about EUR 0.7 to 0.9 million of monthly revenue. It said the goal is to lift this by 15% to 30% to reach break-even and eventually profitability.

Crucially, the company indicated Elventive France is likely to become profitable at the PBT (profit before tax) level within 6 to 8 quarters. Management also linked the subsidiary’s current scale and investment phase to the lower consolidated margin in Q4, stating the subsidiary was operating below break-even during the first year of consolidation.

Dividend and bonus issue

The Board recommended a final dividend of INR 1.40 per equity share of face value INR 2, described as 70% of face value. The company also approved a 1:1 bonus issue. These corporate actions were communicated alongside the results and call commentary.

Key numbers at a glance

Why the guidance matters for investors and the sector

The company’s FY27 standalone growth target comes after a year of strong standalone execution, with FY26 revenue growth of 44.8% and PAT growth of 54.7%. Investors will likely track whether the 30% growth target is supported by order book conversion and capacity readiness, given the stated expansion across transformers, propulsion, and copper conductors. The order book of INR 845.5 crore and FY26 inflows of INR 858 crore provide a concrete reference point for near-term execution.

On the consolidated side, management’s commentary highlights how subsidiary performance can affect reported profitability even when the standalone business remains strong. The stated timeline of 6 to 8 quarters for Elventive France to reach PBT profitability, and the goal to lift monthly revenue by 15% to 30%, will be key markers for assessing whether consolidated margins can normalise as the European unit scales.

Conclusion

Hind Rectifiers used its Q4 and FY26 earnings call to pair a strong FY26 standalone performance with an explicit FY27 growth target and a five-year scale ambition. The company guided 30% standalone revenue growth for FY27, planned INR 50 crore in CAPEX to expand core capacities, and set an FY31 margin aspiration of mid to late teens at the EBITDA level. It also acknowledged that consolidated profitability has been affected by the first year of consolidation of Elventive France and gave a 6 to 8 quarter timeline for PBT-level profitability there. The company said it will revisit consolidated growth targets in the next quarter, which is likely to be the next key update point for investors.