Parth Electricals has Rs 470 crore backlog for 12-15 months

Parth Electricals & Engineering Limited has a Rs 470 crore order book scheduled for execution over the next 12 to 15 months, following H1 FY27 total income growth of 43.5% to Rs 116.40 crore. Management is relying on the booked backlog, a planned November 2026 Vadodara GIS inauguration and Odisha capacity expansion to support its next phase of delivery.

How much execution visibility does Parth Electricals have?

Parth Electricals has disclosed 12 to 15 months of execution visibility through its Rs 470 crore booked order book. Management also cited an active pipeline exceeding Rs 300 crore on its November 5, 2026 earnings call, but this is prospective business rather than confirmed work and should be distinguished from the order book.

The order book is large relative to the Rs 114.19 crore revenue from operations reported in the half year ended September 30, 2026. Total income rose 43.5% year on year to Rs 116.40 crore, while profit after tax, or PAT, increased 49.2% to Rs 9.10 crore from Rs 6.10 crore in H1 FY26, meaning profit grew faster than income during the period.

One identified backlog component is a data-centre project for Vertiv Energy on account of Reliance Jio's artificial-intelligence factory in Jamnagar. Management said the original order was Rs 46 crore and had received a Rs 1.60 crore amendment, taking it to Rs 47.60 crore; delivery was expected to be completed by December 2026.

What changed in Parth Electricals’ costs and margins in H1 FY27?

Parth Electricals reported a gross-margin increase of 444 basis points to 33.25% in H1 FY27, while earnings before interest, tax, depreciation and amortisation, or EBITDA, margin was flat at 12.78%. Management attributed the gross-margin change to business mix and a lower material-cost share, while EBITDA increased 42.4% to Rs 14.88 crore.

Other expenses rose to Rs 16.84 crore from Rs 5.79 crore a year earlier because subcontracting increased in service and engineering, procurement and construction, or EPC, projects. Subcontracting cost rose to Rs 11.94 crore from Rs 2.61 crore, whereas employee cost was broadly flat at Rs 6.97 crore.

Management said existing EPC orders are expected to be executed over the next 12 months and that the business mix should become more product-led from H2 FY27. It said it would remain selective on EPC work, including projects that incorporate its products, such as the 66 kilovolt and 11 kilovolt gas-insulated switchgear substation project under execution for Kandla Port.

When will Parth Electricals’ new plants begin operating?

Parth Electricals said its Karachiya, Vadodara gas-insulated switchgear, or GIS, facility was complete and was planned to be inaugurated in November 2026. Its second Odisha unit, with 60,000 square feet of shop-floor space, is targeted for infrastructure completion by March 2027 and full operations by June 2027.

The company invested Rs 19.77 crore in capital expenditure in H1 FY27, taking cumulative spending on the Karachiya GIS and Khordha, Odisha projects to Rs 28.43 crore. Management said the Vadodara factory could conservatively add Rs 150 crore of sales revenue, while cautioning that the outcome would depend on product mix and available orders.

The Vadodara facility is intended to manufacture newly developed 33 kilovolt GIS and 33 kilovolt Ring Main Unit, or RMU, products, which were undergoing final type testing during the call. Management said it had already started quoting the products to private industries and renewable-energy players, while the first Odisha unit had begun executing initial orders and processing utility approvals.

How is Parth Electricals funding and staffing execution?

Parth Electricals is adding personnel and banking capacity to support the Rs 470 crore backlog and its new facilities. Its training centre had 25 engineers and technicians in a first batch for Odisha operations, 30 recruits assigned to Vadodara, and a plan to recruit a further 50 engineers and technicians within six months.

Operating cash flow was negative Rs 6.45 crore in H1 FY27 because Rs 16.67 crore was deployed into working capital. Management said inventory was built in September for a large data-centre project to support October and November delivery, and that an additional Rs 27 crore of fund-based banking limits had been available since October 2026.

Management reported a current ratio of 1.89 times, net equity of 0.14 times and no long-term debt, with net worth of Rs 131.74 crore. It said immediate capital expenditure for the Vadodara and Odisha facilities was funded, with smaller capex over the next year intended to be met through internal accruals rather than an additional fundraise.

What targets has Parth Electricals set after the expansion?

Parth Electricals’ management expects revenue compound annual growth of at least 30% over the medium term and is targeting a stable PAT margin of 10% over the next two to three years. These are management targets, tied to execution of the order book, commissioning of the Vadodara plant, Odisha ramp-up, technology-led products and exports.

Management is also pursuing the acquisition of 100% of Takalkar Power Engineers & Consultants Private Limited, which provides engineering design and advisory services for transmission and distribution systems ranging from 11 kilovolt to 765 kilovolt. The call did not disclose a transaction value, completion date or closing conditions, so the acquisition remains a proposed part of the expansion plan.

Conclusion

Parth Electricals’ Rs 470 crore order book gives management a disclosed 12-to-15-month delivery base at a time when H1 FY27 income reached Rs 116.40 crore and PAT rose to Rs 9.10 crore. The principal execution issue is converting this work into revenue and cash while managing subcontracting costs associated with the current EPC-heavy mix.

The next milestones disclosed are the planned November 2026 inauguration of the Vadodara GIS facility, December 2026 completion of the Jamnagar data-centre project, and Odisha infrastructure completion and operations targets of March and June 2027. Final type testing of the 33 kilovolt GIS and RMU products, working-capital conversion and terms of the proposed Takalkar acquisition remain matters to watch.