The company’s revenue from operations came in at Rs 2,168 crore, marking a 30% increase from Rs 1,672 crore reported in the corresponding quarter of the previous financial year.
The company reported a double-digit operational EBITDA margin of 15.6%, reinforcing its operational strength and strategic agility. It also achieved its highest-ever order backlog of Rs 29,872.2 crore, driven largely by robust demand in India and other key markets, expanding market share, and the successful execution of key strategic initiatives.
Management said the recent EU India FTA is set to strengthen clean energy collaboration, particularly in renewables and green hydrogen. This could unlock significant opportunities for Indian energy firms through enhanced technology exchange and increased investment flows. The agreement is also expected to create a more stable, climate-aligned trade framework, enabling companies to expand exports and attract long-term capital for infrastructure and innovation.
Opportunities in the energy sector are growing as India advances towards its broader energy transition goals. However, the challenge ahead goes beyond simply generating electricity. It lies in managing power systems under increasingly complex industrial and urban demands. Capacity expansion, effective control mechanisms, and strong coordination will be critical to ensuring the power ecosystem keeps pace with rising complexity and growth.
To achieve this, a collaborative and structured approach will be essential, involving all stakeholders and supported by strong domestic manufacturing capabilities and advanced technology development.
Also Read | Buy gold on corrections; rebalance silver via partial profit booking: Motilal Oswal PW
What should investors do?
Emkay Global has upgraded the stock to Add from Sell and raised the target price by about 20% to Rs 20,825 per share. While capex progress has been slower than planned, management remains confident of meeting its Rs 1,500 crore expansion plan. Factoring in stronger margins and earnings visibility, Emkay has raised FY26-28E EPS estimates by an average of 17%.
Nuvama maintained a Buy rating and set a target price of Rs 24,500 after the company reported a near doubling of PAT YoY, beating estimates by 29%, supported by strong execution growth of 28.5% YoY and operating profit margins of 16.6%, marking a second consecutive quarter of mid-teen margins. Management indicated no penalties are expected on the Maharashtra HVDC project, supporting margin sustainability. Nuvama expects robust execution with a 40% CAGR over FY25-27E and improving margins to about 15.6% by FY28E. It has raised FY26-28E EPS estimates and values the stock at 55x FY28E earnings.
Jefferies also reiterated a Buy recommendation with a target price of Rs 25,000, highlighting continued quarterly earnings beats and a strong structural growth story. The brokerage expects robust order flows to continue and believes operating leverage will drive further margin expansion. It sees limited risk from Chinese imports and projects a 74% EPS CAGR over FY25-28E along with ROE above 25%, which it believes will support elevated valuations for the stock.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Source link
