S & S Power Switchgear Limited Q2 FY26 Concall Decoded: EBITDA Took a Coffee Break, Orders Didn’t
1. Opening Hook
Just when markets were busy arguing whether capital goods is “overheated,” S&S Power quietly dropped a presentation reminding everyone that orders don’t care about Twitter debates. Q2 FY26 came with record order inflows, growing revenues, and—plot twist—negative EBITDA. Yes, EBITDA blinked first, but management insists it’s a one-time mood swing, not a personality flaw.
Between 765 kV disconnectors, aluminium smelter tech, and UK protection panels, the group looks less like a sleepy switchgear company and more like a boutique engineering MNC in training. The balance sheet has been detoxed, promoters wrote a ₹50 Cr cheque, and global ambitions are back on the table.
Read on, because the numbers sulk in Q2, but the strategy is loudly confident—and slightly smug—about FY27 and beyond.
2. At a Glance
New Orders ₹102.5 Cr – Order book didn’t get the EBITDA memo.
Order Book ~₹300+ Cr (FY25 exit) – Management’s favourite flex.
3. Management’s Key Commentary
“We are seeing strong domestic and global demand across all three businesses.” (Translation: Utilities, aluminium smelters, and OEMs are still spending 😏)
“EBITDA performance was impacted by product mix and one-time effects.” (Translation: This quarter picked the wrong cocktail of orders 🍹)
“Margins are expected to rebound in Q3.” (Translation: Please don’t annualise one bad quarter.)
“765 kV disconnector critical tests are completed, and IPR has been filed.” (Translation: This isn’t brochure tech anymore ⚡)
“We are targeting EBITDA margins of 12–15% by FY28.” (Translation: Today’s pain, tomorrow’s investor deck.)
“We plan to be debt-free and generate positive free cash flow.” (Translation: Banks will miss us, shareholders won’t.)
“We are investing 1–1.25% of revenue into R&D.” (Translation: Growth won’t be copy-paste engineering.)
4. Numbers Decoded
Metric
Q2 FY26
Q2 FY25
What Actually Happened
New Orders
₹10,253 L
₹8,200 L
Demand pipeline widened
Revenue
₹6,107 L
₹5,538 L
Execution held steady
EBITDA
-₹197 L
₹601 L
Mix + one-offs struck
EPS
₹2.38
₹3.11
Tax assets saved face
Decoded: Revenue grew, orders surged, but profitability tripped on execution mix. Management claims the stumble isn’t structural—Q3 is the promised comeback episode.
5. Analyst Questions
On EBITDA collapse: Management blamed product mix and restructuring hangovers.
On order quality: Focus is now on profitable, secured-payment orders.
On exports: Middle East, Africa, and UK are priority hunting grounds.
On capex: Brownfield expansion approved, wallets open but disciplined.
Management reiterated a 15–20% revenue CAGR, 12–15% EBITDA margins, and debt-free status by FY28. This assumes no macro shock, no execution drama, and customers paying on time—ambitious, but not delusional.
The 765 kV product launch in FY27 could materially lift
