S&S Power Group targets FY28 revenue doubling and 12-15% EBITDA

S&S Power is targeting a doubling of FY25 organic revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA) of 12-15% by FY28, following Q2 FY27 revenue of Rs 73.79 crore, up from Rs 61.06 crore a year earlier. Its three-year plan links those aspirations to product development, exports, factory work and digital systems.

What is S&S Power targeting by FY28?

S&S Power aspires to double its organic revenue from FY25, achieve EBITDA of 12-15% and generate positive free cash flow by FY28. The plan also lists expansion in selected export markets, one or two technology acquisitions based on fit and potential, research and development (R&D) spending of 1.0-1.25% of revenue, and a fair dividend for shareholders. These are management aspirations and key performance indicators, not reported FY28 outcomes.

The FY26-FY28 programme is in its second year: FY26, or fiscal year 2026, was year one, FY27 is ongoing, and FY28 is the destination year. S&S Power plans revenue growth at a compound annual growth rate (CAGR) above 20% through regular and growth budgets. Its roadmap also calls for profitable orders, streamlined project management, commercial management and supply-chain management, secured payment terms and progress towards zero overdue payments.

The presentation does not disclose the FY25 organic-revenue base or an FY28 revenue target in rupees. It therefore provides a relative revenue objective rather than a figure that can be directly tracked in rupees. Other disclosed numerical milestones are R&D investment of 1.0-1.25% of revenue and creation of one or two intellectual-property rights per company each year.

How does FY27 performance compare with S&S Power's plan?

S&S Power reported Q2 FY27 revenue of Rs 73.79 crore, compared with Rs 61.06 crore in Q2 FY26, while year-to-date (YTD) revenue rose to Rs 145.44 crore from Rs 121.48 crore. The approximately 20% quarterly increase is in line with the group's planned revenue CAGR above 20%, although one quarter and a partial-year period do not establish delivery of the FY28 doubling target.

New-order performance differed between the quarterly and YTD periods. Q2 FY27 new orders increased to Rs 108.38 crore from Rs 102.53 crore, but YTD new orders declined to Rs 145.97 crore from Rs 189.73 crore. Management said the automation business recorded record order inflows and transmission and distribution orders were steady, while the order backlog remained robust.

The presentation's earnings before interest, depreciation and amortisation (EBIDA) measure improved in Q2, with the loss narrowing to Rs 1.58 crore from Rs 1.97 crore, but YTD EBIDA fell to Rs 0.63 crore from Rs 2.13 crore. Management expects EBIDA to improve in the second half. The FY28 target uses EBITDA while the performance table uses EBIDA, and the presentation does not provide a reconciliation between the two measures.

Which product and export actions support the FY28 target?

S&S Power's product programme covers operations in Chennai, the United Kingdom and Kolkata across FY26-FY28. For S&SPSE in Chennai, it includes 765 kilovolt commercialisation, the Global series Double Break product, low-voltage control-cabinet scale-up and stronger engineering services for Acrastyle in the United Kingdom. Acrastyle is also planning more value-added International Electrotechnical Commission 61850 orders, original-equipment-manufacturer partnerships, field services and UK engineering services.

HART in Kolkata is pursuing improved POT controllers, warehouse-management-system development, HRS development, Green AI technology and a digital twin. These projects accompany the target to spend 1.0-1.25% of revenue on R&D and develop one or two intellectual-property rights per company each year. The presentation gives no product-level revenue forecast, budget or launch-date target for these initiatives.

Export actions are directed towards selected markets rather than a disclosed export-sales target. S&SPSE plans re-entry into Vietnam, Malaysia, Bangladesh and African markets, alongside exhibitions in Kenya, Rwanda, Ethiopia and Tanzania. Acrastyle plans to engage with the BEAMA industry association, refresh its website and social-media presence, and promote its full disconnector range in the United Kingdom.

HART plans to attend forums including IBAAS, ICSOBA, ARABAL and TMS, engage domain experts and expand in Middle East and African markets. The roadmap identifies FY26 as completed, FY27 as planned and FY28 as scheduled, but does not assign individual country actions to specific years. S&S Power has therefore disclosed market-development activities without export revenue, customer-win or market-share goals.

How will S&S Power modernise factories and operating systems?

S&S Power plans capacity expansion and factory modernisation across S&SPSE, HART and Acrastyle over FY26-FY28. The programme includes expanding capacity at current sites, exploring new sites and lean manufacturing layouts, and leasing office space when required. Management says Phase I at Acrastyle has been completed and that a new factory plus an ATC is starting for HART, without disclosing capital expenditure or additional capacity.

The group also applies a zero-deviation policy to quality, environment, health and safety (EHS), and compliance. Listed actions include risk assessments, fire and electrical safety, machine guarding, personal protective equipment, ergonomic workstations, energy efficiency, water conservation and waste management. The plan additionally includes job-specific training, safety drills, supplier sustainability assessments, solar panels, paperless production and testing, and increased waste segregation and recycling.

Digital systems are intended to connect the three facilities. S&S Power is implementing enterprise resource planning (ERP) for group companies on a single platform, with aligned processes, centralised reporting, cross-entity visibility, regulatory compliance and cybersecurity measures. The FY26-FY28 timeline labels stages as completed, planned and scheduled, but does not identify the ERP modules or cybersecurity controls already in operation.

Conclusion

S&S Power's FY28 plan combines a financial aspiration, doubling FY25 organic revenue and reaching EBITDA of 12-15%, with specific execution work in products, exports, factories, safety and systems. Q2 FY27 revenue increased to Rs 73.79 crore from Rs 61.06 crore, while YTD revenue reached Rs 145.44 crore; however, YTD new orders and EBIDA were lower than in the comparable FY26 period.

The next disclosed milestones are FY27 planned actions and FY28 scheduled actions in the roadmap. Investors can watch for 765 kilovolt commercialisation, progress in selected export markets, the HART factory and ATC, ERP implementation across three facilities, and whether second-half FY27 EBIDA improves as management expects. The presentation does not disclose project budgets, export-sales targets or an FY28 revenue figure in rupees.