Power & Instrumentation (Gujarat) Reports Strong Q3 FY26 Growth, Secures Key Orders

Consolidated total income of INR 48.89 Cr for Q3 FY'26, a 43.18% YoY increase. EBITDA for the quarter was INR 6.16 Cr with a 12.6% margin.
Reader Takeaway: Revenue jumps 43% on strong orders; working capital days remain a watch point.

What just happened (today’s filing)

Power & Instrumentation (Gujarat) Limited announced robust financial results for Q3 and the nine-month period ended December 31, 2025. The company reported a consolidated total income of INR 48.89 crore for Q3 FY'26, marking an impressive 43.18% year-on-year increase.

EBITDA for the quarter stood at INR 6.16 crore, achieving a margin of 12.6%. This growth was significantly driven by the acquisition of new contracts totaling INR 124.17 crore during the quarter. Notable among these are projects under the Revamped Distribution Sector Scheme (RDSS).

Additionally, its subsidiary, Peaton Electricals, secured CPRI approval for its 'Phibar' busduct system, targeting high-load environments like data centers and airports. The company maintains an order book of INR 450 crore and is actively bidding for another INR 450 crore.

Why this matters

The strong revenue growth highlights the company's successful execution of projects, particularly those supported by government infrastructure initiatives like RDSS. The expansion into specialized manufacturing through the busduct system aims to diversify revenue streams and enhance profitability.

With a substantial order book, the company has good revenue visibility for the coming quarters. The focus on securing government-backed projects, which constitute 97-98% of its pipeline, provides a stable demand base.

The backstory (grounded)

Power & Instrumentation (Gujarat) has been actively securing orders under the Government of India's RDSS scheme, including significant contracts worth INR 68.22 crore and INR 102.78 crore from Ajmer Vidyut Vitran Nigam Limited (AVVNL) in late 2025.

In September 2025, the company strengthened its manufacturing capabilities by increasing its stake in Peaton Electrical Company Limited to 51.06%, making it a subsidiary. Peaton Electricals' subsequent CPRI approval for its busduct system marks a key development for future product contributions.

The company also completed the allotment of equity shares via warrant conversion to promoter group entities in January 2026, reinforcing promoter confidence. P&I Gujarat migrated to the main boards of the NSE and BSE in May 2023.

What changes now

Shareholders can expect enhanced revenue visibility due to the strong order book and new contract wins. The planned contribution from the busduct product line is expected to bolster future top-line growth, potentially between 20-30% of the total revenue.

Management guidance for 30-35% annual revenue growth over the next five years, coupled with efforts to improve EBITDA margins to 12-14% and PAT margins to 9-10%, suggests a positive outlook.

The company is also exploring the Battery Energy Storage Systems (BESS) sector as an EPC provider, indicating potential future diversification.

Risks to watch

Management has identified a 'dearth of technical people' as a key challenge due to rapid market scaling, which is being addressed through active hiring. The volatility of input costs, particularly for copper and aluminum, remains a factor to monitor, although this is mitigated by price variation clauses in major orders.

Concerns around working capital days, currently at 95-100 days, require attention as the company aims to bring this below 90 days. While the company has a SEBI Adjudication Order from March 2024, its specific details and ongoing implications are not detailed in the filing text. Some analyses have also pointed to a recent increase in standalone debt and a decline in interest coverage.

Peer comparison

Power & Instrumentation (Gujarat) operates in a sector populated by larger, more diversified engineering, procurement, and construction (EPC) players like KEC International and Kalpataru Projects International Ltd. While these peers have broader operations and global reach, P&I Gujarat is carving out a niche by focusing on specific segments within India's power infrastructure, particularly rural electrification and distribution modernization projects under government schemes like RDSS. Its strategic push into specialized manufacturing, such as busduct systems, differentiates it from broader EPC providers.

Context metrics (time-bound)

• Consolidated revenue has shown growth, rising from approximately ₹145 Cr in FY23 to ₹209 Cr in FY24, with Q3 FY25 at ₹45 Cr.
• Consolidated PAT has also increased, from ₹7 Cr in FY23 to ₹13.5 Cr in FY24, with Q3 FY25 at ₹5 Cr.
• Consolidated EBITDA margins have remained stable around 11-12.6% over recent periods.
• Consolidated working capital days have been around 100-105 days in FY23-FY24.

What to track next

Investors will be watching the company's ability to achieve its ambitious 30-35% annual revenue growth guidance over the next five years. The successful integration and contribution of the newly approved busduct product line to the top line, targeting 20-30% of revenue, will be crucial.

Monitoring the progress in reducing working capital days below 90 days and the expansion into the Battery Energy Storage Systems (BESS) sector are key indicators. Performance against its guidance for PAT margins of 9-10% in the next 1-2 years will also be closely scrutinized.