VANS revenue rose nearly ninefold as EBITDA margin reached 31.6%

VANS Electroengineerings Limited reported Rs 22.84 crore of revenue from operations in FY 2025-26, compared with Rs 2.60 crore in FY 2023-24, while EBITDA margin rose to 31.63% from 0.94%. The expansion coincided with higher sales across vacuum-interrupter and circuit-breaker products, new overhead-equipment revenue and utilisation below 43% in every reported product category.

How quickly did VANS revenue and EBITDA margin grow?

VANS increased revenue from operations to 8.80 times its FY 2023-24 level over two years. Revenue from operations, defined as revenue from sale of goods, rose from Rs 2.60 crore in FY 2023-24 to Rs 13.56 crore in FY 2024-25 and Rs 22.84 crore in FY 2025-26. The FY 2025-26 increase was Rs 9.28 crore, or 68.43%, from FY 2024-25.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose from Rs 2.43 lakh in FY 2023-24 to Rs 2.48 crore in FY 2024-25 and Rs 7.23 crore in FY 2025-26. VANS defines EBITDA as profit before tax plus depreciation and interest expenses, less other income. EBITDA margin, calculated as EBITDA divided by revenue from operations, increased by 30.69 percentage points between FY 2023-24 and FY 2025-26.

Profit after tax, or PAT, reached Rs 5.39 crore in FY 2025-26, versus Rs 1.73 crore in FY 2024-25 and Rs 2.14 lakh in FY 2023-24. PAT margin rose from 0.83% in FY 2023-24 to 23.61% in FY 2025-26, while net worth increased from Rs 1.05 crore to Rs 9.17 crore. Return on equity, defined as PAT divided by average shareholder equity, was 83.27% in FY 2025-26, compared with 2.06% two years earlier.

What changed in VANS product mix as revenue expanded?

VANS added overhead equipment and braided flexible connectors to its reported FY 2025-26 product mix. Overhead equipment generated Rs 2.79 crore, or 12.22% of FY 2025-26 sales, and braided flexible connectors generated Rs 41.02 lakh, or 1.80%. Neither category reported sales in FY 2023-24 or FY 2024-25.

Double-pole vacuum interrupters remained VANS’s largest FY 2025-26 product line at Rs 6.97 crore, or 30.50% of sales. Single-pole vacuum interrupters generated Rs 4.71 crore, double-pole vacuum circuit breakers generated Rs 4.20 crore and single-pole vacuum circuit breakers generated Rs 3.66 crore. Double-pole vacuum interrupters and double-pole circuit breakers together accounted for 84.75% of sales in FY 2023-24, compared with 48.89% in FY 2025-26.

The sales-mix change occurred alongside a lower cost of goods sold ratio than in FY 2024-25. Cost of goods sold was Rs 12.35 crore, equal to 54.05% of FY 2025-26 revenue, compared with Rs 8.29 crore, or 61.10%, in FY 2024-25. The ratio was 35.87% in FY 2023-24, when cost of goods sold was Rs 93.10 lakh on revenue of Rs 2.60 crore, so the three-year figures do not show a uniform cost-ratio trend.

How much production capacity did VANS use in FY 2025-26?

VANS produced 478 units in FY 2025-26 against stated annual installed capacity of 1,800 units under a single eight-hour shift. The company reported installed capacity of 450 units for each of its four principal product categories. No category reached 50% utilisation during FY 2025-26 despite the increase in revenue and EBITDA margin.

Actual production rose from 57 units in FY 2023-24 and 387 units in FY 2024-25 to 478 units in FY 2025-26, while stated capacity remained 1,800 units in all three years. Single-pole vacuum interrupters recorded the highest FY 2025-26 utilisation at 42.88%, up from 35.33% in FY 2024-25 and 2.00% in FY 2023-24. VANS states that available capacity may vary with production schedules, operational efficiency and shift utilisation.

How concentrated are VANS sales and supplier purchases?

VANS generated Rs 19.82 crore, or 86.66%, of FY 2025-26 revenue from business-to-business, or B2B, customers. Business-to-government, or B2G, sales contributed Rs 3.02 crore, or 13.24%. The B2B share increased from 80.34% in FY 2023-24, when B2B revenue was Rs 2.09 crore.

North, West and South India generated Rs 8.25 crore, Rs 7.11 crore and Rs 5.85 crore, respectively, in FY 2025-26. Together, the three regions accounted for 88.86% of revenue. West India represented 76.77% of FY 2023-24 sales, while North India’s share increased from 6.47% to 32.12% by FY 2025-26.

Supplier purchases also remained concentrated, although the concentration reduced across the reported period. VANS’s largest supplier accounted for Rs 3.27 crore, or 25.24%, of FY 2025-26 raw-material purchases, compared with 56.86% in FY 2024-25. Its top 10 suppliers represented 72.48% of FY 2025-26 purchases, down from 88.55% in FY 2023-24; VANS says it generally negotiates prices and volumes for each purchase order rather than using long-term supply contracts.

What must hold for VANS to sustain its higher margin?

VANS must continue converting railway and contractor demand into product sales while keeping costs aligned with revenue for the FY 2025-26 margin level to persist. Its products include traction power supply and overhead-equipment components used in Indian railway electrification infrastructure and metro systems. VANS holds approvals from the Research Designs and Standards Organisation, or RDSO, for manufacture and supply of vacuum circuit breakers and vacuum interrupters to prescribed specifications.

VANS has disclosed plans to expand its research and development team and develop earthing switches and key multipliers. It also intends to diversify into complementary products, including single-bottle circuit breakers and earthing switches. These are stated plans, not reported sales, so their effect depends on product development, manufacturing execution and customer procurement.

Conclusion

VANS’s FY 2025-26 results show a substantial increase in both scale and reported operating profitability from FY 2023-24. Higher sales of established interrupter and circuit-breaker products, the addition of overhead equipment and braided flexible connectors, and a lower cost of goods sold ratio than FY 2024-25 accompanied revenue of Rs 22.84 crore and EBITDA margin of 31.63%.

The next disclosed factors to watch are use of the 1,800-unit annual single-shift capacity and execution of planned earthing-switch and single-bottle circuit-breaker development. VANS’s order-by-order supplier pricing, top-10 supplier share of 72.48%, and B2B revenue share of 86.66% also remain relevant to future sales mix and costs.