Parth Electricals Reports 43.5% H1 FY27 Total Income Growth

Parth Electricals & Engineering Ltd. reported 43.5% year-on-year growth in total income to ₹116.40 crore in H1 FY27. Profit after tax rose 49.2% to ₹9.10 crore, while a higher share of services and EPC work lifted gross margin, although increased subcontracting costs kept EBITDA margin broadly stable.

What did Parth Electricals report for H1 FY27?

Parth Electricals reported revenue from operations of ₹114.19 crore for the half-year ended 30 September 2026, an increase of 42.0% from H1 FY26. Total income reached ₹116.40 crore, compared with ₹81.11 crore in the corresponding period of the previous financial year. The company disclosed the results and its investor presentation in early November 2026.

Profit after tax increased to ₹9.10 crore from ₹6.10 crore a year earlier. The result indicates that profit growth exceeded the increase in total income during the period. Parth Electricals manufactures switchgear used to control and protect power distribution systems, and also provides installation, repair, services and engineering, procurement and construction, or EPC, work across industrial and power-network applications.

How did the company’s margins change during the half year?

Parth Electricals increased gross profit margin by 444 basis points year on year to 33.25% in H1 FY27. Materials represented 66.8% of total income, lower than 71.2% in H1 FY26. The company attributed the improvement to a greater contribution from services and EPC activities in its business mix.

The gross-margin gain did not translate into a similar rise in EBITDA margin. Subcontracting expenses were ₹11.94 crore during the period, and EBITDA margin was 12.78%, 10 basis points below the H1 FY26 level. This shows that lower material intensity was offset by higher costs related to subcontracted execution work.

Why did operating cash flow turn negative despite higher profit?

Parth Electricals recorded negative operating cash flow of ₹6.45 crore in H1 FY27 despite the increase in profit after tax. The company reported a working-capital outflow of ₹16.67 crore, which was the main factor behind the cash-flow outcome.

Its cash-conversion cycle rose to 92 days from 58 days in H1 FY26. A longer cash-conversion cycle means more funds remained tied up in operating working capital during the period. For investors, this makes the relationship between reported earnings, receivables, inventory and execution-related funding an important part of assessing the half-year performance.

What are Parth Electricals’ growth plans and financial targets?

Parth Electricals has stated a minimum revenue compound annual growth rate target of 30% to 40% over the next one to three years. Management has also indicated that EBITDA margin could move from about 12% currently to a 12% to 15% range over the next three years.

The company reported an order book of ₹470 crore in its H1 FY27 investor presentation. It has also invested ₹19.77 crore in H1 FY27 for GIS facilities at Karachiya in Vadodara and Khordha in Odisha. Cumulative capital expenditure on these facilities reached ₹28.43 crore, according to the presentation.

What does the H1 FY27 performance mean for investors and operations?

Parth Electricals’ H1 performance combines strong income and profit growth with a significant improvement in gross margin. The figures also reflect the growing importance of service and EPC work, which reduced material cost as a share of income. However, the higher subcontracting expense shows that executing these activities can carry additional external operating costs.

The ₹470 crore order book provides disclosed visibility on contracted work, while the GIS facility investments indicate an expansion of operating capacity. At the same time, the rise in the cash-conversion cycle to 92 days places attention on working-capital management. The company’s future margin target will depend on the balance between product, service and EPC mix, as well as the cost of delivering projects.

Conclusion

Parth Electricals delivered H1 FY27 total income growth of 43.5% and profit after tax growth of 49.2%, supported by improved gross margin and a stronger contribution from services and EPC work. The operating result was tempered by ₹11.94 crore of subcontracting costs and a working-capital outflow that led to negative operating cash flow.

The next areas to watch are progress on the ₹470 crore order book, the build-out of the Karachiya and Khordha GIS facilities, and movement toward management’s 30% to 40% revenue growth target and 12% to 15% EBITDA-margin range over the next three years.