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Earnings Call Transcript

Prostarm Info Systems Earnings Call Transcript: Key Takeaways

Prostarm reported strong 38% YoY revenue growth in Q1 FY27, yet management is navigating severe working capital stress and geopolitical headwinds in the lithium battery segment.

Guidance and delivery
Management target Revenue 25.0% FY27
Highlights
Revenue growth38% YoY growth; sequentially lower due to seasonal execution cycles.
MarginsTargeting 12-13% annually; Q1 hit by fixed cost absorption issues.
Order bookRobust ₹1,090 Cr pipeline; energy storage systems hold largest share.
Demand visibilityStrong visibility via ₹1,090 Cr order book spanning power and BESS.
Management confidenceBalanced; optimistic on order book but cautious on battery cell pricing.

Growth

Revenue grew 38% YoY to ₹77 Cr; EBITDA margins improved 126 bps to 8.55% driven by operating leverage.

Outlook

Targeting 25% minimum revenue growth for FY27 and 12-13% EBITDA margins as H2 typically scales higher.

Risks

High receivables (₹231 Cr), execution delays in railway orders, and China-led pricing pressure on lithium cells.

Last quarter's promises, checked

Delivered

  • Guided Jhajjar BESS plant operational Q4 FY26 → delivered operational Q2 FY27 (= BEAT)
  • Guided Gujarat UPS plant operational Q1 FY27 → delivered operational Q2 FY27 (= BEAT)
  • Guided 20-25% revenue growth FY26 → delivered 38% YoY Q1 FY27 (= BEAT)

Partly delivered

  • Guided 20% conversion of bid pipeline → delivered strong order book of ₹1,090 Cr but execution delays in railways (= PARTIAL)

Missed

  • Guided EBITDA margin 12-15% → delivered 8.55% (= MISS)
  • Guided receivable days to come down from 190 → delivered high receivables of ₹231 Cr (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: PROSTARM. Summary written with AI assistance from the document.

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Prostarm Info Systems Ltd: key numbers

Share price
₹141.17
Market cap
₹831.1 Cr
Revenue (annual)
₹385.8 Cr
Net profit (annual)
₹33.00 Cr
P/E (TTM)
23.3×Sector 45.9×
Promoter holding
72.83%+0.01% QoQ
FII holding
0.51%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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From
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