- Opening HookWhile most companies brag about “synergy,” Hirect went ahead and bought a French one — BeLink Solutions — because why not add a European twist to your transformers? From copper conductors in Nashik to robotics in France, Hind Rectifiers has gone global faster than an Indian IT engineer on a work visa. The management calls itstrategic expansion; the rest of us call it bold in this economy. Stick around — it gets juicier when railways, robots, and margins start mixing.
- At a Glance
- Revenue up 37%– No spreadsheet magic, just volts, amps, and serious execution.
- EBITDA grew 41.4%– The current was strong, the circuit didn’t trip.
- PAT up 44.6%– Even CFO’s calculator blushed at that efficiency.
- Margins at 11.3%– Slightly more charged than last year’s 10.9%.
- Order book ₹1,099 crore– Enough backlog to keep machines buzzing for 18 months.
- Stock?– Probably humming along with the transformers.
- Management’s Key Commentary
“Our order book remains strong at ₹1,099 crore.”(Translation: There’s no recession in the world of transformers, just high voltage optimism. ⚡)
“Completion of backward integration at Sinnar — we now make copper conductors.”(Translation: If suppliers can’t deliver, we’ll justbecomethe supplier. 😏)
“Acquired BeLink Solutions, a France-based robotics firm.”(Translation: Indian railways meets European robotics — sounds like a Netflix crossover.)
“BeLink isn’t profitable yet; we’ll fund €1.5 million yearly.”(Translation: Adopted a French child, but it eats euros, not croissants.)
“Appointed new CEO Manoj Nair.”(Translation: A Cummins veteran now charged with keeping margins alive and railways on track.)
“30% growth target remains intact for next 3 years.”(Translation: We don’t do modest expectations — just sustained voltage and ambition.)
“Backward integration to reduce supply chain risks.”(Translation: Because depending on Chinese copper is so 2022.)
- Numbers Decoded
| Metric | Q2 FY26 | YoY Change | Commentary |
|---|---|---|---|
| Revenue | ₹227.1 Cr | +37% | Demand on full charge |
| EBITDA | ₹25.9 Cr | +41.4% | Efficiency boost |
| PAT | ₹14.7 Cr | +44.6% | Current flow turned to cash |
| H1 Revenue | ₹441.9 Cr | +46.6% | Railway traction and transformers lead |
| EBITDA Margin | 11.3% | +0.4% | A small but steady surge |
| ROE | 31.4% | +5.5 pts | High voltage returns |
| Working Capital Days | 80 | -16 days | Supply chain got caffeinated |
Even the CFO admitted: imports byairfrom Korea hurt gross margins — clearly, logistics charged a premium.
- Analyst Questions
Q:“Are you diversifying beyond railways?”A:“Yes, defense and electronics next.”(Translation: From tracks to tanks. 🚄➡️🛡️)
Q:“BeLink is loss-making — why buy it?”A:“It’s strategic and has patents.”(Translation: Because R&D sounds better than ROI right now.)
Q:“Any margin improvement expected?”A:“Backward integration will help.”(Translation: If copper prices behave, we’ll shine.)
Q:“Competition?”A:“They can come; we’re ahead in IP.”(Translation: Our tech is hotter than theirs.)
- Guidance & Outlook
Management swears by a 30% annual growth target “for at least three years.” The math seems believable — an ₹1,100 crore order book, a new copper line that kills raw material anxiety, and European entry through BeLink. But assumptions are equally spicy — “no new railway delays, smooth copper pricing, and euro stability.” In short: assumes the world won’t break again. The company also
