Susan Electricals Q1 FY27: mix shift, tender visibility, and a Feb 2027 capacity step-up

Susan Electricals India Limited reported a sharp step-up in operating scale in Q1 FY27, alongside a clear narrative of moving toward higher-value power distribution products. For the quarter ended June 30, 2026, revenue from operations rose to INR 95.36 crore from INR 25.16 crore in Q1 FY26. Operating profitability expanded meaningfully, with operating margin improving to 11.90% versus 4.18% a year ago. Profit after tax turned positive at INR 6.39 crore, compared with a loss of INR 0.42 crore in the corresponding quarter last year.

Management linked the quarter’s improvement to two levers. First was stronger execution and scale. Second was a continued revenue mix shift away from winding wires toward cables and conductors, particularly LT cables, and a gradual build-up in HT cables and Medium Voltage Covered Conductors (MVCC). The company also highlighted near-term revenue visibility through its disclosed order book and pipeline, and reiterated that a major capacity expansion remains on track for Feb 2027.

Q1 FY27 performance: scale drove margins, profitability turned positive

The quarter’s income statement indicates that growth was volume-led, with costs also rising in absolute terms but improving in margin terms due to operating leverage. Total income for Q1 FY27 was INR 95.41 crore, and profit before tax stood at INR 8.58 crore.

A key feature of the quarter was the turnaround from losses to profits, which management attributed to better EBITDA per unit across the portfolio and a higher contribution from value-added products. The company reported an operating margin of 11.90% in Q1 FY27, which was broadly in line with its FY26 EBITDA margin of 11.91% but markedly higher than Q1 FY26 levels.

Revenue mix shift: LT cables dominate, HT and MVCC gaining share

One of the more data-backed parts of the presentation is the product-wise revenue mix table, which shows a visible shift toward cables. In Q1 FY27, LT cables and conductors accounted for 65.68% of revenue, up from 46.70% in Q1 FY26. Winding wire contribution reduced to 24.39% from 47.74%. HT cables and MVCC increased to 7.11% from 2.07%.

This mix shift is central to management’s positioning of Susan as moving from a commodity wire-and-cable manufacturer toward specification-driven distribution products. The company expects LT and HT cables and MVCC to offer higher value addition and, as their share rises, to support improved realisations and EBITDA per unit.

In the concall, management discussed product-level margin potential and stated that HT and MVCC have higher long-term margin potential as scale improves, but the transcript also contains inconsistent product margin references and management acknowledged the need to provide clearer disclosures going forward. As a result, the most verifiable margin signal remains the company-level operating margin improvement already reflected in the reported numbers.

Order visibility and capacity expansion: near-term pipeline and Feb 2027 commissioning

Management disclosed a sizeable order visibility pool. As of June 30, 2026, the unexecuted order book stood at about INR 142.39 crore, and management indicated that a significant portion is expected to be executed within the next three months. The company also disclosed an active order pipeline of about INR 150 crore, resulting in total order visibility of INR 292 crore.

The concall added colour on the order mix, stating that the order book mix is roughly 30% HT cables and MVCC, 35% LT cables and conductors, and 35% winding wires, with about a 50:50 split between government or DISCOMs and private or EPC customers. Orders were described as primarily tender-based, with regular bidding of INR 800 to 1,200 crore of tenders and an expected conversion rate of about 15% to 20%.

On the capacity front, the company’s expansion plan targets an additional 4,500 km per annum of capacity, increasing installed capacity from 7,500 km to 12,000 km per annum, a 60% increase. The project includes construction of an additional shed and installation of a 6 to 33 kV triple layer Continuous Catenary Vulcanization line at the Sahibabad facility. Commercial production is targeted for Feb 2027.

The presentation states total estimated project cost as INR 10,80,0.96 lakh, with INR 1,029.49 lakh to be funded from IPO net proceeds and the balance from internal accruals. Separately, management indicated FY27 capex plans of about INR 15 crore to INR 20 crore, primarily toward machinery and expansion-related requirements, with commissioning expected in February.

What to track from here

Susan Electricals’ Q1 FY27 results show a step-change in scale and a meaningful improvement in profitability, alongside disclosed near-term order visibility. The company is also explicit that its growth thesis is tied to mix shift into LT, HT and MVCC products, and it has attached a timeline to the next major capacity addition, targeting Feb 2027.

The key execution variables remain tender conversion, timely commissioning and ramp-up of the new CCV line, and whether the HT and MVCC share can rise without compromising working capital intensity and delivery timelines. Management has also indicated that disclosures around product-level profitability will be improved, which could help investors independently validate the mix-led margin narrative.

If the company sustains order execution over the next few quarters and delivers the Feb 2027 expansion on schedule, FY27 could become the year where the business transitions from fast growth to a more repeatable scale-led model, built around specification-driven distribution products rather than legacy winding wire volumes.