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Highness Microelectronics LtdQ4 FY26 earnings call

All quarters

Summary generated by AI from the official transcript Highness Microelectronics Ltd filed with BSE on 10 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries

The short read

Highness Microelectronics reported FY26 revenue of Rs 16.11 crore, up 14.5% year-on-year, with EBITDA growing 46% to Rs 6.61 crore and PAT rising 66.9% to Rs 4.10 crore. Management attributed the growth to increasing exports, a favorable project mix, and higher-margin contracts across defense, railways, and medical electronics segments. The company also outlined plans for a new manufacturing facility in Goa for chip-on-glass and film-on-glass production, alongside a strategic partnership with Axiom in the United States.

Numbers mentioned

Revenue from operations: INR16.11 crores (FY2025-26)

p. 5
Revenue from the operation increased to INR16.11 crores compared to INR14.07 crores in FY2024 to 25, representing the growth of 14.5% year-on-year basis.

Mayurkumar Gori, page 5 of the filed PDF · View the filing

EBITDA: INR6.61 crores (FY2025-26)

p. 5
EBITDA also stood at strong INR6.61 crores compared to the INR4.51 crores in the previous year, registering a strong growth of 46% on year-on-year basis.

Mayurkumar Gori, page 5 of the filed PDF · View the filing

Profit after tax: INR4.10 crores (FY2025-26)

p. 6
Profit after tax increased from INR4.10 crores compared to the last year's INR2.45 crores, delivering a growth of 66.9% year-on-year basis, and our PAT margin improved from 17.5% to 25% during the year.

Mayurkumar Gori, page 6 of the filed PDF · View the filing

Net cash flow from operating activities: INR4.7 crores positive (FY2024-25)

p. 6
Net cash flow from the operating activities stood at INR4.7 crores positive compared to negative INR1.425 crores in FY2024-25.

Mayurkumar Gori, page 6 of the filed PDF · View the filing

Net cash used in investing activity: INR2.06 crores (FY2025-26)

p. 6
Net cash used in investing activity was around INR2.06 crores, primarily towards the capacity expansion, equipment, and technology investment for the future growth.

Mayurkumar Gori, page 6 of the filed PDF · View the filing

Net cash generated from finance activity: INR19.23 crores (FY2025-26)

p. 6
Net cash generated from the finance activity was INR19.23 crores, largely driven by proceeds from the IPO.

Mayurkumar Gori, page 6 of the filed PDF · View the filing

Defense and aerospace revenue share: approximately 39%, INR6.38 crores (FY2025-26)

p. 6
During FY2025-', defense and aerospace remain our largest segment, contributing approximately 39% of the total revenue, that is around INR6.38 crores.

Mayurkumar Gori, page 6 of the filed PDF · View the filing

Railway revenue: INR4.36 crores, 21.1% of revenue (FY2025-26)

p. 6
Railway contributed around INR4.36 crores, that is a 21.1% of total revenue.

Mayurkumar Gori, page 6 of the filed PDF · View the filing

Medical and healthcare revenue: approximately 26.7%, INR4.30 crores (FY2025-26)

p. 6
Medical and healthcare contribute approximately 26.7% of total revenue, that is INR4.30 crores.

Mayurkumar Gori, page 6 of the filed PDF · View the filing

Industrial automation revenue: approximately 6.6%, INR1.07 crores (FY2025-26)

p. 6
Industrial automation contributed around 6.6% of total revenue, that is INR1.07 crores.

Mayurkumar Gori, page 6 of the filed PDF · View the filing

Export revenue: 43.8% of total sales, INR7.06 crores (FY2025-26)

p. 6
export revenue contributed 43.8% of total sales, that is INR7.06 crores.

Mayurkumar Gori, page 6 of the filed PDF · View the filing

EBITDA margin: 46% (FY2025-26)

p. 9
So I'll tell you that our EBITDA margin improved approximately around 46% from around 33% in FY2025, while the FY26 benefited from the favorable project mix and the certain high-margin contracts.

Mayurkumar Gori, page 9 of the filed PDF · View the filing

Unexecuted order value: INR8 crores to INR10 crores (current quarter)

p. 15
Right now, we have order around INR8 crores to INR10 crores which we have not executed, and we will execute it in this quarter.

Mayurkumar Gori, page 15 of the filed PDF · View the filing

Confirmed project pipeline: INR30 crores (next 18 months)

p. 15
we have a INR30 crores of projection, confirmed projection for next 18 months.

Gaurav Kejriwal, page 15 of the filed PDF · View the filing

What management said it would do

A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.

Goa facility capex — about INR20 crores

stated firmly by Gaurav Kejriwal

p. 9
The first investment will happen in tune of INR10 crores to INR12 crores only on the machine side, not including the civil work, etcetera.

Gaurav Kejriwal, page 9 of the filed PDF · View the filing

Goa facility commercial production — about a year from now

stated firmly by Gaurav Kejriwal

p. 9
The first commercial production is say about a year from now, so we can say next July, next August.

Gaurav Kejriwal, page 9 of the filed PDF · View the filing

Steady-state EBITDA margin — around 30%, 32%

stated as an aspiration by Mayurkumar Gori

p. 10
Once everything settles and business is mature as you are saying, our EBITDA margin should be around 30%, 32% in normal case and 15% to 17% as PAT.

Mayurkumar Gori, page 10 of the filed PDF · View the filing

FY27 revenue — around INR30 crores to INR32 crores · FY27

stated conditionally by Mayurkumar Gori

p. 10
We are targeting a revenue of around INR30 crores to INR32 crores in revenue at the EBITDA of around 35% and a PAT at a more than 25%.

Mayurkumar Gori, page 10 of the filed PDF · View the filing

FY28 revenue — more than INR50 crores · FY28

stated as an aspiration by Mayurkumar Gori

p. 10
FY28, we are targeting more than INR50 crores as a revenue.

Mayurkumar Gori, page 10 of the filed PDF · View the filing

Glass cutting line at Rabale facility — end of July, latest mid-August

stated firmly by Gaurav Kejriwal

p. 8
This facility will be up and running by end of July, latest mid-August.

Gaurav Kejriwal, page 8 of the filed PDF · View the filing

Trade receivables realization — before end of September

stated conditionally by Gaurav Kejriwal

p. 8
as the confirmation received from the party, from the vendor overseas, entire receivable will be completed before the end of September.

Gaurav Kejriwal, page 8 of the filed PDF · View the filing

Automotive display segment entry — 2 years from now

stated as an aspiration by Gaurav Kejriwal

p. 14
But again, that itself, the certification process itself takes another year. So we will not be able to enter the automotive space immediately, but 2 years from now is when we should be targeting.

Gaurav Kejriwal, page 14 of the filed PDF · View the filing

Revenue milestone — three-digit revenue (Rs 100 crore range) · four years, sooner than five years

stated as an aspiration by Gaurav Kejriwal

p. 17
We should try and do it in four years or maybe closer to that timeframe.

Gaurav Kejriwal, page 17 of the filed PDF · View the filing

Market share in railway/metro displays — 10% initially, then 20%, then 50%

stated as an aspiration by Gaurav Kejriwal

p. 13
we will target that also, we should start with at least 10% of market share and then slowly increase it to 20% and then 50%.

Gaurav Kejriwal, page 13 of the filed PDF · View the filing

Q&A highlights

Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.

Management said value addition is currently 40-50% and could rise to 60% with more capex.

Answered by Gaurav Kejriwal

Asked by Chintan Parikh: What is the value addition percentage on defense and aerospace products?

p. 7
it is inching closer to halfway mark. As and when we increase our capex investment, machines coming in, that will easily, you know, go beyond 50% and closer to 60%.

Gaurav Kejriwal, page 7 of the filed PDF · View the filing

Management said the three wins have already generated over Rs 5-6 crore in revenue, with more in the pipeline.

Answered by Gaurav Kejriwal

Asked by Chintan Parekh: What revenue has been achieved from the three APAC design wins?

p. 8
we've had a revenue of in excess of INR5 or INR6 crores already built, and others are in pipeline.

Gaurav Kejriwal, page 8 of the filed PDF · View the filing

CFO said margins improved due to favorable project mix and high-margin contracts and should remain healthy, though quarterly fluctuations may occur.

Answered by Mayurkumar Gori

Asked by Disha: Are the improved H2 gross and EBITDA margins sustainable?

p. 9
We believe the margin should remain healthy going forward.

Mayurkumar Gori, page 9 of the filed PDF · View the filing

Management detailed a phased capex of roughly Rs 20 crore across two phases for machinery.

Answered by Gaurav Kejriwal

Asked by Disha: What capex is planned for the Goa facility?

p. 9
if both of these are put together, it is about INR20 crores in that neighborhood.

Gaurav Kejriwal, page 9 of the filed PDF · View the filing

Management said input costs could drop by roughly 10-15% once the lines mature.

Answered by Gaurav Kejriwal

Asked by Disha: What impact will backward integration (COG/FOG) have on margins?

p. 10
we can easily see a, drop of our input cost by another 5%, making it about 15% drop in input cost.

Gaurav Kejriwal, page 10 of the filed PDF · View the filing

Management explained Goa is for backward integration to avoid importing open cell glass and to automate manual processes.

Answered by Gaurav Kejriwal

Asked by Nishit Lunia: Why invest in the Goa plant when current capacity utilization is only around 20%?

p. 12
the Goa plant primarily focuses on backward integration, which means there is, let's say, an ITO glass or let's say there is an open cell glass which we import from China or Taiwan at the moment.

Gaurav Kejriwal, page 12 of the filed PDF · View the filing

Management described the display industry as heavily import-reliant with no domestic manufacturing competitor, and outlined a plan to capture increasing market share.

Answered by Gaurav Kejriwal

Asked by Abhishek Bansal: What market share can the company capture given the industry landscape?

p. 13
there is definitely no ecosystem or there is no player who's manufacturing displays in India, even in the kind of manufacturing and assembly and integration we are doing, there is no player at the moment.

Gaurav Kejriwal, page 13 of the filed PDF · View the filing

Management attributed high margins to indigenization efforts and reducing reliance on imports.

Answered by Gaurav Kejriwal

Asked by Jaideep Ray: Is the more than 90% gross margin shown in H2 sustainable?

p. 16
we are trying to indigenize everything. We are trying to create an entire display ecosystem here.

Gaurav Kejriwal, page 16 of the filed PDF · View the filing

CFO said this is achievable due to sales team expansion and government subsidy applications.

Answered by Mayurkumar Gori

Asked by Jaideep Ray: Is the projected INR30-32 crore revenue with 25% margin achievable given stagnant revenue historically?

p. 17
Definitely it is achievable because after the IPO, we are ramping up our sales team with the various segment, we are recruiting sales team.

Mayurkumar Gori, page 17 of the filed PDF · View the filing

Risks flagged

Quarterly margin fluctuations due to project execution timing and product mix

p. 9
But yes, there will be a some delay in the quarterly fluctuation in the project execution and schedules and a product mix.

Mayurkumar Gori, page 9 of the filed PDF · View the filing

Increase in fuel surcharge and freight cost from geopolitical disruptions

p. 11
there is an increase in fuel surcharge, so there is increase in freight cost.

Gaurav Kejriwal, page 11 of the filed PDF · View the filing

Long certification and qualification process delaying entry into automotive display segment

p. 14
there is a long certification and qualification criteria on the factory for you to qualify as an automotive grade display supplier.

Gaurav Kejriwal, page 14 of the filed PDF · View the filing

Dependence on imported display glass from Far East Asia

p. 7
We do source our display glass from Far East Asia from multiple locations, and we do value addition at our existing facility here in Rabale.

Gaurav Kejriwal, page 7 of the filed PDF · View the filing

Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.