Prostarm Q1 FY27: Order Book Strength Meets Execution and Working Capital Focus

Prostarm Info Systems Limited entered FY27 with stronger year-on-year profitability, but also with clear near-term execution tasks. For Q1 FY27, the company reported revenue from operations of INR 76 crore, EBITDA of INR 6.5 crore, and PAT of INR 4.6 crore. Revenue grew 38% year-on-year, while EBITDA margin improved to 8.55% from 7.29% in Q1 FY26. PAT margin also expanded to 6.05% from 3.28%.

Management attributed the sequential revenue decline versus Q4 FY26 to the seasonal nature of its project business, where Q1 typically sees lower order activity. It also reiterated that quarterly margins can vary based on project mix, execution timelines, and revenue recognition.

The business mix is shifting, with BESS EPC rising sharply

The investor presentation outlines a diversified operating model across manufactured power products, BESS EPC, third-party power products, system integration solutions, solar EPC, and value-added services.

In Q1 FY27, the segmental revenue mix disclosed in the deck was led by BESS EPC at 40%, followed by third-party power products and other products at 30%, and manufactured power solution products at 28%. Value-added services contributed 1%.

The sharpest near-term change is visible in BESS EPC. Reported BESS EPC revenue increased from INR 4.2 crore in FY26 to INR 30.7 crore in Q1 FY27 alone, reflecting project execution momentum as well as a changing mix.

Financial snapshot

Order book remains the core driver of visibility

As of June 30, 2026, Prostarm disclosed an order in hand of INR 1,085.2 crore across 117 projects and an additional INR 5 crore in L1 status. The order book is heavily skewed toward BESS, which totals INR 875.4 crore, including BESS EPC of INR 21.5 crore and BESS developer projects of INR 853.8 crore.

Solar EPC contracts form the second-largest bucket in the disclosed order book at INR 185.1 crore. Manufactured power solution products account for INR 23.5 crore, and third-party manufactured power products add INR 0.9 crore.

The presentation also discloses that government customers account for 82% of the order book, with private customers at 18%.

Strategy: Manufacturing expansion and a BESS course correction

A central theme of the quarter was capacity building. Prostarm is setting up a 1.2 GWh BESS facility at Reliance MET, Jhajjar, Haryana, with capex of INR 25 crore. The investor presentation indicates commissioning expected by the end of H1 FY27.

In the earnings call, management added context on timing and market conditions. It said it had held the production start temporarily due to component cost increases and logistics costs, and it expects to commence production by the end of Q2 FY27. Management also described a strategic shift away from utility-scale BESS bidding due to pricing pressure and toward commercial and industrial BESS, where it believes margins are structurally better.

Alongside Jhajjar, Prostarm is also establishing a UPS manufacturing facility in Gujarat for 1 kVA to 600 kVA, expected to become operational by Q2 FY27.

A third operational initiative is digitisation. The company stated that SAP and Salesforce implementation is nearing completion and is expected to be operational by the end of H1 FY27.

Working capital is a key monitorable

The company’s working capital days increased to 185 days in FY26. In the call, management stated that this improved to 168 days in Q1 FY27 and guided a target range of 120 to 150 days by March 2027.

Management also indicated improvement in operating cash flow, stating that cash flow from operating activity improved from negative INR 49 crore in FY26 to around negative INR 16 crore in Q1 FY27. While still negative, the direction of change is relevant because the company is simultaneously ramping new facilities, which can increase working capital needs.

What management guided for FY27

Management commentary in the call and deck included explicit targets and qualitative guardrails. It reiterated a minimum 25% revenue growth target for FY27 and maintained its full-year EBITDA margin guidance of 12% to 13%, while acknowledging quarter-to-quarter variability.

Management also indicated that PAT margin expectations for FY27 are around 8.5% to 9%, reflecting rising costs from facility ramp-ups, higher employee costs, and import-related pressures within the energy storage ecosystem.

Closing takeaways

Prostarm’s Q1 FY27 performance shows improving year-on-year profitability and a meaningful jump in BESS EPC revenue contribution. The disclosed order book provides strong visibility, but the mix matters, with a large portion in BESS developer projects that follow different revenue recognition patterns.

For the next few quarters, execution will be the key narrative: commissioning and ramp-up of the Jhajjar BESS facility and Gujarat UPS facility, conversion of the order pipeline into billed revenue, and sustained improvement in working capital metrics. The company’s stated shift from utility BESS to C&I BESS is also an important indicator of management’s willingness to course-correct based on market realities.