1. Opening Hook
Fresh from bagging the “Golden Peacock Award” 🦚, Schneider Electric Infra strutted into Q2 FY26 earnings like an ESG champion—only to find its execution speed trapped in bureaucratic amber. The company’s order book is bulging, the CAPEX is humming, but revenue growth looks like it missed the caffeine shot. While the CEO quoted GDP stats like a Finance Ministry intern, analysts kept asking the real question: “Where’s the growth, bro?” Stick around—because by the end, you’ll see how Schneider’s optimism could light up grids or short-circuit them entirely.
2. At a Glance
- Order Intake up 28% (H1)– The phone’s ringing off the hook; execution’s just on “Do Not Disturb.”
- Revenue up 6.6% (H1)– Sales jogged while orders sprinted.
- EBITDA Margin at 12.5% (Q2)– Margins flexed slightly, like a gym-goer on day one.
- PAT Margin 7.4% (H1)– The bottom line went on a mild diet.
- Finance Cost down– Interest income is the new profit center.
- Stock holding INR 59 Cr– Finished goods chilling till customers say, “Okay, dispatch.”
3. Management’s Key Commentary
“We won the Golden Peacock ESG Award.”(Translation: Even if growth’s slow, we’re sustainable while doing it.)😏
“Data center lull is over; AI will boost demand.”(Translation: Pray that ChatGPT uses more power, please.)
“India’s GDP is resilient at 6.7%; investments are firing.”(Translation: The economy’s growing faster than our top line.)
“CAPEX expansion at Kolkata, Vadodara, and transformer plants is on track.”(Translation: The bulldozers have at least started moving this time.)
“Finance costs down due to cash positivity and lower rates.”(Translation: We’re earning more from deposits than from customers.)
“Slow execution is cyclical.”(Translation: It’s not us—it’s them, the clients, the sites, and the stars.)
“Loco breakers and Vande Bharat contracts secured.”(Translation: At least trains are running on our hardware if not our growth.)
4. Numbers Decoded
| Metric | Q2 FY26 | Q1 FY26 | YoY Change | Comment |
|---|---|---|---|---|
| Order Inflow | +15.6% | +28% (H1) | ↑ | Pipeline hotter than grid transformers |
| Revenue | ₹1,300 Cr (est.) | ₹1,200 Cr | +8.4% | Slow but steady ramp-up |
| EBITDA Margin | 12.5% | 11.6% | ↑ | Margins resisting gravity |
| PAT Margin | 7.4% | 8.6% (H1 FY25) | ↓ | Profit took a brief nap |
| Finance Cost | ↓ 15% | — | ↓ | Cash-rich serenity |
| Inventory (FG) | ₹59 Cr | — | ↑ | Waiting for customer clearances |
Analyst decoding:Orders are flying, sales crawling. Think Formula One car stuck in third gear.
5. Analyst Questions
LIC MF:Why’s execution crawling?Mgmt:Project business, cyclical, client delays, astrology.
Ampersand Capital:Other expenses rising again?Mgmt:Inflation + vendors = same old song.
Invesco MF:Data center split between listed and parent?Mgmt:“Almost demarcated.” Translation: “Let’s not open that box.”
Native Investments:Guidance please—15% or 28% order growth?Mgmt:“Somewhere there.” Translation: Schrödinger’s guidance.
ThinQwise Wealth:New product slides missing.Mgmt:“We focused on wins, not launches.” Translation: PowerPoint fatigue.
6. Guidance & Outlook
Management insists H2 will be “better” (the most overused phrase on Dalal Street). Orders are rising across Power & Grid, Renewables, and Data Centers. Execution delays, they promise, are temporary—assuming customers finally open their gates. CAPEX of ₹200
