Exicom Tele-Systems has begun manufacturing liquid-cooled EV charger modules in Hyderabad to boost exports. While this move aims to improve technology and product margins, investors are monitoring the company’s financial recovery, as it reported net losses in recent quarters.
Exicom Tele-Systems has commenced the production of liquid-cooled AC and DC power modules for electric vehicle (EV) chargers at its new Hyderabad manufacturing facility. This marks the first time an Indian company has manufactured this category of advanced power electronics for international markets, specifically targeting customers in North America and Europe. The initiative is part of a broader effort to strengthen the company’s export capabilities and move toward higher-value products.
Technology and Manufacturing Strategy
The new production line focuses on solving a common problem in the EV charging sector: thermal stress. Exicom notes that excessive heat causes approximately 60% of power electronics failures, as high-power charging generates significant warmth during operation. Liquid-cooled systems provide a more efficient way to manage this heat compared to traditional air-cooled methods, keeping internal temperatures roughly 10 degrees Celsius lower. This advancement is intended to make chargers more durable and reliable in diverse climates.
Exicom invested approximately $3.5 million over the past two years to develop this technology. The modules will be integrated into the company’s existing EV charging product lines, including the ultra-fast DC chargers from its subsidiary, Tritium, which Exicom acquired in 2024. By bringing this manufacturing in-house, the company aims to better control quality and reduce dependency on external component suppliers.
Financial Context and Risks
While the company is expanding its technological capabilities, it is also facing a challenging financial period. Exicom reported net losses in recent quarters, including in the first quarter of fiscal year 2027. The company's overall financial health is currently tied to the turnaround of the Tritium business. Management has stated that they expect the Tritium unit to reach a breakeven point by the fourth quarter of FY27. Investors will be tracking whether this new high-tech manufacturing initiative can contribute to narrowing these losses.
Beyond financial performance, the company faces typical manufacturing risks. These include potential pressure on profit margins due to competitive pricing in the global market, exposure to exchange rate fluctuations, and the challenge of scaling operations efficiently. Since the company is targeting global markets, its success will also depend on its ability to navigate international regulatory standards and maintain consistent supply chain performance.
The key monitorable for shareholders in coming quarters will be the contribution of these new modules to revenue and whether the company can meet its target for improving profitability. Updates on the Tritium breakeven timeline and production volume at the Hyderabad plant will be important areas for investors to follow.