Schneider Electric Infrastructure Ltd

Financial Performance

• Order inflow in Q1: INR 915 crores, highest ever quarterly booked.
• YoY orders growth: 0.5%; sequential orders growth: double-digit.
• Sales growth YoY: about 5%; sequential sales growth: double-digit.
• Backlog: ~INR 2,100 crores plus; up ~33% YoY; entering Q2.
• EBIT: INR 32 crores in Q1.
• Gross margin pressurized by external factors (copper, transformer wire); price variation actions initiated.
• FX impact: imports 10-15% of costs; natural hedge via exports.
• Kolkata plant started operations; depreciation begun; capex spread across Baroda and Kolkata.
• Capex across 3 plants ~INR 500 crores; ramp-up underway.
• Total income in Q1: 1.9%.

Operational Highlights

• Semiconductors: large front-end fab transformer orders with digital solutions.
• Data centers: MV panel transformers and automation devices supplied.
• Renewables: transformers for solar; cement plant project; SF6-free RMU pilot at airport.
• Digital wins: integrated energy management system; smart grid/transformer monitoring solutions deployed.
• ESG: 4 sites 100% renewable electricity; 0 incidents; 20% women; 1,900 skills trained; 220,000 beneficiaries.
• CRISIL rating: strong, score 63/100 in 2025.
• Emerging segments backlog share: more than 1/5 of new orders.

Projects and Capex

• Capex ~INR 500 crores over 3 plants to expand capacity and reduce imports.
• Kolkata plant now operational; Baroda expansion on track.
• RDSS and Make in India support capex alignment; capex ramp planned through FY27/28.

Outlook and Guidance

• Management sees underlying demand healthy; pricing actions initiated; execution plan in place; 3 quarters ahead expected to be good.
• Macro outlook: India GDP 6.5-7% over next 4 years; per-capita GDP ~INR 4 lakhs by 2030.
• Per-capita electricity consumption: 1,800–2,000 kWh by 2030.
• Data center capacity projected to 8 GW by 2030; digital economy ~20% by 2030.
• EV penetration ~30% by 2030; Make in India and related schemes supportive.

Q&A Highlights

• Transmission capex: focus on 33 kV switchgear, energy storage, software; no 400 kV transformers.
• Legacy orders: pre-December prices fixed; price variation clauses added to new contracts; some tenders unchanged.
• Export revenue share: current 10–12% of revenue; Kolkata plant supports exports; ramp-up expected.
• DISCOM capex TAM: hard to quantify; RDSS aims to reduce AT&C losses; selective engagement.
• Emerging segments: installation/commissioning tied to higher project execution; pipeline healthy.
• Expansion on track: multiple capex programs; capacity in H2 FY27; ramp-up plan.

Risks and Watchpoints

• Execution delays could impair gross margin on legacy orders.
• FX and commodity volatility; price variation clauses not universal across tenders.
• TAM visibility for DISCOM capex depends on state-level tender decisions.

AGM and AR access

• 16th AGM set for 10 September 2026 via VC/OAVM.
• Annual Report 2025-26 dispatched to shareholders with registered emails.
• Shareholders without registered emails can access AR and AGM Notice online.

Access links

• Links provided to access Annual Report and AGM Notice.

Physical transfer window

• Special window Feb 5, 2026 to Feb 4, 2027 for pre-2019 physical transfers.
• Window also applies to previously rejected transfer requests.

KYC and email updates

• Update email address with DP/RTA; complete KYC per MIRSD circular.
• Green Initiative encourages dematerialization of physical holdings.

Overview

• FY2025-26 BRSR filed; reporting is standalone and part of the annual report.
• Independent assurance provided by Forvis Mazars LLP on the BRSR Core.
• BRSR available on the company website.

Key ESG Risks & Opportunities

• Sustainability engagement with customers identified as material, enabling ESG-aligned revenue opportunities.
• Adopting sustainable practices for suppliers enhances supply chain resilience and may raise procurement costs.
• Climate change mitigation and energy efficiency initiatives yield potential cost savings and compliance benefits.
• Circularity and sustainable product design reduce waste and regulatory risk.
• Health, safety and diversity programs support workforce stability and productivity.

Governance & Policy Highlights

• Board oversight of ESG and policies on anti-bribery, whistleblower, and human rights.
• Independent assurance by Forvis Mazars LLP on BRSR Core and other disclosures.
• Boundary includes four manufacturing plants and 18 regional offices; site- and group-level data covered.

Social Responsibility & Workforce

• Workforce includes permanent employees and workers with gender diversity metrics disclosed.
• Employee well-being measures include health benefits and safety training.
• CSR activities focus on community empowerment and sustainable livelihoods.
• Training and development programs highlighted to upskill employees.

Environmental Performance

• GHG emissions (Scope 1 and 2) reported; energy usage and renewable energy share disclosed.
• Total water consumption with discharge by destination and treatment levels reported.
• Waste generation and recycling efforts, including potential ZLD initiatives.
• Environmental certifications and targets referenced.

Stakeholder Engagement & Complaints

• Key stakeholder groups identified with defined engagement channels and frequency.
• Grievance redressal mechanisms in place; no material unresolved complaints highlighted.
• Disclosures include data privacy/cybersecurity and product safety considerations.

Other Notable Metrics

• Supply chain sustainability metrics and supplier assessments disclosed.
• Lifecycle assessment inputs and product-level sustainability data included.
• Assurance scope and boundaries defined; risk-based sampling described.

Financial performance

• Revenue from operations rose to 2,89,063 ₹ Lakhs, up 9.6% YoY.
• Order intake grew 27.4% to ₹3,430 Crores.
• EBITDA was ₹38,877 Lakhs (~₹389 Crores) with 13.4% margin.
• PAT stood at ₹21,256 Lakhs with 7.4% PAT margin.
• Net debt ₹19,040 Lakhs; gearing 0.71x.
• ROE 31.8%, ROCE 25.5%.

Geographic and product footprint

• India revenue ₹2,55,403 Lakhs; outside India ₹33,660 Lakhs.
• Single primary segment; no Ind AS 108 segmentation.
• Closing backlog ₹1,911 Crores.
• Capex programme ₹477 Crores; capacity-expansion underway at key plants.
• Capex roadmap targets include significant capacity additions at Vadodara and Kolkata.

Growth strategy and technology

• Strategic pillars: Technology Leadership, Customer Differentiation, Operational Excellence.
• EcoStruxure platform, SF6-free solutions, BESS, One Digital Grid.
• Capex expansion supports data centres, renewables, semiconductors and grid modernization.
• Localization and manufacturing efficiency to reduce lead times and boost resilience.

Dividend & capital allocation

• Dividend for FY2025-26 not recommended; funds redirected to growth initiatives.
• No equity issuance or buybacks reported during the year.

Governance & board changes

• Udai Singh reappointed as MD&CEO for 3 years from 15 Sep 2026.
• Independent Directors Sundaram Damodaranair and Shalini Sarin appointed from Oct 24, 2025.
• Namrata Kaul ceased as Independent Director on Nov 5, 2025.
• Board meetings totaled 7 in FY2025-26; diverse independent representation.

ESG & sustainability

• 100% electricity from renewables; SF6 leakage at 0.15%.
• 83% reduction in Scope 1+2 emissions intensity YoY.
• CRISIL ESG: Strong; NSE Sustainability: Aspirant.
• CSR spend ₹469.70 Lakhs; 1,55,103 people benefited.
• Golden Peacock ESG Award 2025; BRSR assurance by Forvis Mazars.

Outlook and risks

• Outlook positive for India with electrification, grid modernization and digital infra growth.
• Growth momentum expected in data centres, semiconductors, EV and renewables sectors.
• Strategic emphasis on EcoStruxure, local manufacturing and capacity expansion to sustain profitability.

Meeting Details

• Date: August 17, 2026; time not disclosed.
• Event: investor conference call; organiser: Schneider Electric Infrastructure Limited.
• Mode: not stated; Type: investor conference call.
• Purpose: discuss unaudited financial results and earnings performance for Q1 ended June 30, 2026.

Participants

• Key participant: Company Secretary & Compliance Officer.

Additional Notes

• Audio recording of the conference call is available; Rec tab under 'Q1' of '2026-2027 Financial Results'.

Business overview

• Core business: energy distribution equipment and digital energy solutions.
• Key growth engines: semiconductors, data centers, renewables, cement, airports, and chemicals.

Operational highlights

• Q1 FY27 orders at record high; backlog INR 2169 cr, +32.7% YoY.
• Strong demand in data centers and semiconductors; revenue growth moderated by project timelines.

Financial performance

• Sales: INR 651.4 cr; Total Sales: INR 658.3 cr; YoY +4.8% and +5.2%.
• EBITDA: INR 41.0 cr; EBIT: INR 32.1 cr; PAT: INR 12.4 cr.
• Gross margin 36.5%; material costs INR 420.8 cr (64.6% of sales).
• Other income INR 6.9 cr; finance cost INR 15.2 cr; PBT INR 17.0 cr.

Strategy & outlook

• India 2030: four structural growth engines to drive infrastructure expansion.
• Emphasis on digital solutions and energy management to improve asset reliability.
• Backlog provides revenue visibility; moderate revenue growth expected due to project timelines.

Risks & mitigation

• Commodity price volatility and lag in passing through higher input costs.
• Revenue timing risk from project execution delays; mitigated by diversified segments and pricing.

Key highlights

• Orders reached INR 915 crores, the highest quarterly figure in the company's history.
• Revenue at INR 651 crores, up 4.8% YoY and 10.4% QoQ.
• EBIT stood at INR 32.1 crores.
• Order backlog at INR 2169 crores as of 30 June 2026, up 32.7% YoY.
• Profitability affected by commodity price volatility and delay in passing higher input costs on legacy orders.
• Strong demand across data centers and semiconductors.