Prostarm Info Systems Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Prostarm Info Systems Ltd filed with BSE on 28 May 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
Prostarm reported Q4 FY26 operating revenue of INR105 crores, up 27% year-on-year but down 35% sequentially, with EBITDA margin at 10.43% and PAT margin at 7.56%. For the full year, operating revenue grew approximately 10% to INR386 crores, with EBITDA margin moderating to 12% from 12.98% in FY25 due to higher procurement costs and employee expenses. Management attributed the quarterly weakness to supply chain disruptions from the geopolitical situation in West Asia, gas availability constraints for fabrication, and dollar appreciation, which deferred certain project executions from Q4 into Q1 FY27.
2 statements from this call are not shown because their supporting quotes could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Operating revenue: INR105 crores (Q4 FY26)
p. 5
“Operating revenue for the quarter stood at INR105 crores representing a growth of 27% year-on-year and a degrowth of 35% sequentially.”
Chandan Chaudhari, page 5 of the filed PDF · View the filing
EBITDA: approximately INR11 crores, margin 10.43% (Q4 FY26)
p. 5
“EBITDA for the quarter stood at approximately INR11 crores, reflecting a year-on-year degrowth of approximately 3% with EBITDA margin of 10.43%.”
Chandan Chaudhari, page 5 of the filed PDF · View the filing
Profit after tax: approximately INR8 crores, PAT margin 7.56% (Q4 FY26)
p. 5
“Profit after tax for the quarter stood at approximately INR8 crores, representing a growth of nearly 16% year-on-year, while PAT margin stood at 7.56%.”
Chandan Chaudhari, page 5 of the filed PDF · View the filing
Operating revenue: INR386 crores (FY26)
p. 5
“For the full year, operating revenue stood at INR386 crores, reflecting a growth of approximately 10% year-on-year.”
Chandan Chaudhari, page 5 of the filed PDF · View the filing
EBITDA margin: 12% (FY26)
p. 5
“On the margins front, EBITDA margin moderated by 98 basis points to 12% in FY26 compared to 12.98% in FY25.”
Chandan Chaudhari, page 5 of the filed PDF · View the filing
Employee expenses: INR29 crores (FY26)
p. 5
“Employee expenses increased from INR22 crores in FY25 to INR29 crores in FY26, while employee strength increased from 425 to 470 during the year.”
Chandan Chaudhari, page 5 of the filed PDF · View the filing
Profit after tax: around INR33 crores, PAT margin 8.55% (FY26)
p. 5
“Profit after tax stood at around INR33 crores, reflecting a growth of approximately 14% year-on-year, while PAT margins improved to 8.55% as compared -- 8.24% in FY25.”
Chandan Chaudhari, page 5 of the filed PDF · View the filing
Working capital: INR83 crores, 185 days (FY26)
p. 5
“On the working capital front, working capital level increased to INR83 crores in FY26 from INR64 crores in FY25, while working capital days increased to 185 days from 68 days in FY25.”
Chandan Chaudhari, page 5 of the filed PDF · View the filing
Fixed deposits: over INR102 crores (FY26)
p. 6
“including fixed deposits of over INR102 crores, the company remains well-positioned to comfortably manage its near-term working capital requirements.”
Chandan Chaudhari, page 6 of the filed PDF · View the filing
Long-term debt: nearly INR80 lakhs (FY26)
p. 6
“Further, the company's balance sheet strengthened considerably during the year, with the long-term debt reducing from INR3.4 crores as of March 25 to nearly INR80 lakhs in FY26.”
Chandan Chaudhari, page 6 of the filed PDF · View the filing
Order book: approximately INR1202 crores (as of end of FY26)
p. 6
“As of end of FY26, our executable order in hand stood at approximately INR1106 crores along with the additional L1 orders of around INR96 crores, taking the overall order book to approximately INR1202 crores and providing strong revenue visibility for the coming quarters.”
Chandan Chaudhari, page 6 of the filed PDF · View the filing
Bids under evaluation: approximately INR257 crores
p. 6
“Additionally, bids aggregating approximately INR257 crores are currently under evaluation, which further strengthens our medium-term growth pipeline and execution visibility.”
Chandan Chaudhari, page 6 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.
Jhajjar (BESS) plant commissioning — operational · end of Q1 FY27
stated firmly by Ram Agarwal
p. 4
“We are setting up 1.20 GWh battery manufacturing facility in Jhajjar, Haryana, which is nearing commissioning and is expected to become operational at the end of Q1.”
Ram Agarwal, page 4 of the filed PDF · View the filing
Gujarat UPS facility commissioning — operational · Q2 FY27
stated firmly by Ram Agarwal
p. 4
“The facility is now expected to become operational by Q2, FY27.”
Ram Agarwal, page 4 of the filed PDF · View the filing
Jhajjar plant capacity utilization — 25% to 40% · FY27
stated as an aspiration by Ram Agarwal
p. 14
“This year we are hoping to touch 25% to 40% utilization in this financial year.”
Ram Agarwal, page 14 of the filed PDF · View the filing
Jhajjar plant capacity utilization — 70% · FY28
stated as an aspiration by Ram Agarwal
p. 14
“Next year we are very hopeful to touch 70%.”
Ram Agarwal, page 14 of the filed PDF · View the filing
UPS business growth — more than 30%-40% · next two financial years
stated as an aspiration by Ram Agarwal
p. 14
“Maybe more than 30%. 40% growth in next two year compared to last two year.”
Ram Agarwal, page 14 of the filed PDF · View the filing
Bihar EPC project execution — completed · this financial year
stated firmly by Ram Agarwal
p. 14
“But as we do not have control on the legal issues, legal side issues of Karnataka, so Bihar is in our control, so Bihar we will execute for sure in this financial year.”
Ram Agarwal, page 14 of the filed PDF · View the filing
Karnataka EPC project execution — execution · this financial year
stated conditionally by Ram Agarwal
p. 14
“Karnataka there are some hurdles which if it happen, then we will try to execute even Karnataka also in this financial year.”
Ram Agarwal, page 14 of the filed PDF · View the filing
BESS developer projects hive-off — hive off both projects
stated as an aspiration by Ram Agarwal
p. 14
“And we are too sure that we will be able to hive off both projects.”
Ram Agarwal, page 14 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 a significant portion of receivables tied to one major order would be collected in Q1, improving the debtor position.
Answered by a speaker the transcript does not identify
Asked by Paras Chheda: What proportion of the elevated receivables will be collected in Q1 FY27?
p. 7
“So you would find a significant improvement in debtors in quarter one.”
From the transcript, page 7 of the filed PDF · View the filing
Management reaffirmed the target while explaining negative cash flow was due to higher debtors and supplier advances.
Answered by a speaker the transcript does not identify
Asked by Paras Chheda: Is the company still on track for operating cash flow to turn positive in FY27?
p. 7
“Right, Paras ji, we are still on track of that.”
From the transcript, page 7 of the filed PDF · View the filing
Management said no equity dilution is planned and working capital needs can be met from bank sources or internal accruals.
Answered by a speaker the transcript does not identify
Asked by Paras Chheda: Will the company need equity dilution to meet FY27 working capital requirements of about INR 200 crores?
p. 8
“Right now, we are in a position where if any requirement is to be done on the working capital side, it can be met from the bank sources or our internal accruals.”
From the transcript, page 8 of the filed PDF · View the filing
Management said the Jhajjar plant capex of about INR25 crores could generate INR1000 crores of revenue, and that overall EBITDA margin runs 12-13% due to order mix.
Answered by a speaker the transcript does not identify
Asked by Jaynam Ranka: What is the asset turnover ratio in the BESS segment and segment-wise EBITDA margins?
p. 8
“See, the total capex that we are planning up is around INR25 crores for the BESS capacity that we are adding. And that factory has a potential of generating revenue of around INR 1000 crores.”
From the transcript, page 8 of the filed PDF · View the filing
Management said minimum 25% growth is on the cards based on current order book and channel business.
Answered by a speaker the transcript does not identify
Asked by Archit Agrawal: What is the FY27 revenue guidance?
p. 10
“So minimum 25% growth is there with us is there for next financial year.”
From the transcript, page 10 of the filed PDF · View the filing
Management explained the company also imports and outsources to job workers, so factory utilization does not constrain revenue, and gave maximum revenue estimates of INR1,700-1,800 crores fully localized.
Answered by a speaker the transcript does not identify
Asked by Priyansh Miri: Why has capacity utilization been low, and what is the maximum revenue potential from existing facilities?
p. 11
“the revenue from all facilities together can be around roughly around INR 1,700 crores to INR1,800 crores other than import that we do.”
From the transcript, page 11 of the filed PDF · View the filing
Management said the ESOP pool is 40 lakh shares with about 13.26 lakh outstanding and fresh grants of 3.22 lakh, with more expected for talent acquisition.
Answered by a speaker the transcript does not identify
Asked by Ayush Jain: What ESOP commitments are outstanding?
p. 13
“13.26 is the current outstanding. And fresh ESOP has been granted for around 3.22 Lakh has been granted.”
From the transcript, page 13 of the filed PDF · View the filing
Management said the project IRR is currently around 10-11% and that Bihar execution is targeted for this financial year.
Answered by a speaker the transcript does not identify
Asked by Paras Chheda: What is the project IRR on the solar plus BESS developer project?
p. 14
“Project IRR currently is coming at around 10% to 11% on an overall project basis.”
From the transcript, page 14 of the filed PDF · View the filing
Management said the disruption effectively began in January with container movement issues, intensifying from March 15, and that large orders like Adani's were postponed into Q1.
Answered by Ram Agarwal
Asked by Archit Agrawal: Why did Q4 and FY26 growth lag the industry given the supply chain issues began only around mid-March?
p. 17
“No, no, 15th March was severely affected, but problem was going for last January onwards because the container movement was not happening.”
Ram Agarwal, page 17 of the filed PDF · View the filing
Management confirmed Q1 revenue growth versus the prior year's Q1.
Answered by a speaker the transcript does not identify
Asked by Archit Agrawal: Will Q1 FY27 show revenue growth despite the disruption?
p. 19
“In quarter one of this financial year, you would see a revenue growth as vis-à-vis the quarter one which was there in quarter one last year.”
From the transcript, page 19 of the filed PDF · View the filing
Risks flagged
Geopolitical situation in West Asia causing supply chain and execution disruptions
p. 4
“While the on-going geopolitical situation in West Asia created certain temporary supply chain and execution-related disruptions during the fourth quarter, we believe the long-term demand outlook for reliable power backup and energy storage solutions remains very strong.”
Ram Agarwal, page 4 of the filed PDF · View the filing
Limited gas availability affecting fabrication/manufacturing
p. 5
“During the quarter, execution timelines were impacted by temporary supply chain disruptions and manufacturing challenges caused by limited gas availability arising from the ongoing geopolitical situation in West Asia.”
Chandan Chaudhari, page 5 of the filed PDF · View the filing
Rising freight costs from China to India
p. 16
“The logistic movement from the China to India was one side. We are not getting the proper timely logistic support and the cost of freight has gone up by more than 2x in Q4 compared to earlier.”
Ram Agarwal, page 16 of the filed PDF · View the filing
China removing export incentive on BESS raising material costs
p. 16
“Third, due to geopolitical issues, China knowingly they have -- they have removed the export incentive on BESS from 1st April.”
Ram Agarwal, page 16 of the filed PDF · View the filing
Legal issues delaying Karnataka project execution
p. 14
“But as we do not have control on the legal issues, legal side issues of Karnataka, so Bihar is in our control, so Bihar we will execute for sure in this financial year.”
Ram Agarwal, page 14 of the filed PDF · View the filing
Margin fluctuation due to project-led business mix
p. 5
“Given the project-led nature of our business, margins may fluctuate on a quarterly basis depending on project mix, execution timelines and revenue recognition.”
Chandan Chaudhari, page 5 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.