MaxVolt Energy H2 FY26: Hyper-growth with a working-capital bill and a bigger circular ambition

MaxVolt Energy Industries Limited closed FY26 with sharp growth, taking revenue to INR 296.7 crore, up 176% year-on-year. Profitability rose alongside scale: EBITDA was INR 35.6 crore and PAT was INR 24.4 crore for FY26, both more than doubling versus FY25, as stated in the investor presentation and reiterated on the earnings call.

The second half showed the company’s momentum and its constraints at the same time. H2 FY26 revenue from operations was INR 166.7 crore, up 148% YoY, but margins were softer. EBITDA margin in H2 was 10.3% versus 14.2% in H1, and PAT margin was 6.9% in H2 versus 9.9% in H1. Management linked the margin compression to supply-chain stress, exchange-rate volatility, and higher import-linked input costs.

Revenue mix: e-scooters dominate, but ESS and chargers are now meaningful

The segment mix in FY26 remained mobility-led, with e-scooters continuing as the cornerstone. On the call, management disclosed FY26 segmental revenue and contribution to total revenue. E-scooters contributed more than two-thirds of sales, while three-wheelers and ESS provided incremental scale.

E-rickshaws stood out for growth rate from a small base, while ESS and chargers were already at over INR 20 crore each. The company also reported an “Others” bucket that has grown meaningfully, but without further breakdown.

Scale-up: capacity expanded, Phase 2 still to come

A central operational update was manufacturing ramp-up. Management stated output moved from around 6,300 to 6,500 batteries per month in December to about 14,000 batteries per month from January, implying a step-change after Phase 1 additions. They also described a broader plant plan of roughly 35,000 batteries per month, with Phase 1 at 14,000 and Phase 2 adding around 21,000.

On timelines, management indicated Phase 2 could be operational by October-November of the financial year. In another response around CWIP and capex, they referenced commercial production beginning by December 2026 or January 2027, alongside capitalization flowing through H1 as construction and installation complete.

The company also discussed capacity in energy terms on the call. One response referenced current capacity around 500 MWh and a longer-term view of around 2.2 to 2.5 GWh, dependent on product size and mix.

Margins and cash: profitability grew, but working capital absorbed cash

The presentation’s FY26 cash flow statement showed negative operating cash flow of about INR 29.0 crore. This was driven by a large working-capital outflow, even as profit before tax rose. The balance sheet also reflected higher inventories and a step-up in borrowings.

Management explained that inventory was deliberately increased to secure supply continuity and hedge against geopolitical and currency volatility. They indicated the company earlier maintained around three months of inventory, but moved toward four to five months due to current conditions. Borrowings were also linked to working capital needs and hedging. Management cited working capital borrowing costs broadly in the 8.15% to 8.9% range.

This matters because the business is still scaling, and growth is currently being supported by incremental working capital funding. The ability to bring working capital intensity down as operations stabilize will be a key monitorable, especially given the company’s claim of operating scale and faster service turnaround.

Circular ambition: ReEarth, Aligarh, and a black mass pathway

MaxVolt’s strategic narrative is built around a closed-loop battery lifecycle: manufacturing, service, buyback, second-life applications, and eventually recycling and mineral recovery. The company formed MaxVolt ReEarth as a wholly-owned subsidiary and described a staged recycling plan.

In the presentation, MaxVolt stated it received land allotment from the U.P. MSME Department for a lithium battery recycling plant in Aligarh, with construction expected to begin by August 2026. Phase 1 is designed for crushing and black mass generation, with operations expected to begin in FY 2026-27 and initial capacity of 7,800 MT per annum. Phase 2, focused on metal extraction and refining, is targeted by FY 2028-29 to recover Nickel, Cobalt, Manganese, and Lithium.

On the call, management added capex context. They stated an overall estimated project cost of about INR 282 crore across phases and a Phase 1 cost of about INR 74 to 75 crore, including covered area, pilot line, lab, and crushing plant. They also said FY27 revenue contribution could not be committed, but indicated that in FY27-28, if they sell only black mass at the installed capacity, revenue potential could be around INR 225 to 250 crore with EBITDA margins of about 18% to 20%.

Execution risk remains real. Management acknowledged delays linked to government processes and map approvals, despite land registry being completed. The commissioning timeline and first meaningful revenue from recycling are therefore dependent on approvals and build-out.

What management guided: growth, timelines, and the limits of certainty

Management avoided hard revenue targets for FY27 in most places, but one explicit range was stated. They indicated forward revenues could show at least 50% to 70% growth. On margins, management suggested sustainability around the FY26 base case, while cautioning that external shocks can disrupt near-term profitability.

In short, MaxVolt’s FY26 story is one of fast scale-up, improving profits, and a widening product set. The next phase will be judged on two fronts: whether Phase 2 manufacturing expansion comes online within the stated timeframe, and whether working capital normalizes as the company transitions from capacity-constrained growth to steady throughput.

The circular economy narrative, led by ReEarth, can become a differentiator if the Aligarh project moves from approvals to execution and then to stable output. Until then, the financial statements suggest that growth is being funded through higher inventory and higher borrowings, even as the reported profits look strong.