Yash Highvoltage makes high-voltage transformer bushings, a small but qualification-heavy component in power transformers. The business is currently carried by a ₹760 crore order book, near-full Halol utilisation and a 28.1% H1 FY27 EBITDA margin, while the Jarod greenfield is in an assembly-stage ramp. The investment case turns on whether localised RIP core production and US export representation convert into a larger, higher-margin product range before higher depreciation and competitive capacity erode the current margin. This remains a j-curve: assembly revenue and capacity relief come first, localised-core economics later. Management guides the greenfield at ₹220 crore total, with ₹106 crore paid to 30 September 2026 and the balance over 12 months. It targets localised RIP core commercial production up to 245 kV for Q4 FY28 or mid-2028 at the latest, with localised 550 kV after about 1.5 years, and sees Unit 1 and Unit 2 combined revenue potential at ₹900-1,000 crore with full utilisation by 2030-31. Those are management targets, not achieved results.
The current economics are strong but should not be annualised without care. H1 FY27 revenue was ₹194.5 crore, gross margin 48.3%, EBITDA ₹55 crore at 28.1%, and PAT ₹36 crore at 18.6%. Volume was 4,000 bushings versus 2,950 in H1 FY26, a roughly 40% increase, while RIP bushings were 86% of revenue by value and OIP plus high-current 14%. Domestic sales were 95% of revenue, so exports remain a small part of the mix. The transcript's H1 FY26 revenue comparator of ₹19.6 crore and stated 95% growth are internally inconsistent with the reported ₹194.5 crore and should not be used without correction. Management did not give a specific FY27 or FY28 EBITDA margin target in the Q2 FY27 call, saying only that efforts are to maintain or improve margins. Depreciation rose to ₹4.4 crore in H1 from ₹2.6 crore a year earlier, with the bulk expected in H2 and the full-year amount at 2.5-3x last year; management intends to maintain PAT margins despite that. My inference is that the H2 earnings path depends more on order conversion and assembly output than on immediate localisation gains.
The growth mechanisms are concrete. The brownfield expansion is guided to finish in Q3 FY27, with added capacity visible in Q4, which should relieve a Halol plant that ran near 90% utilisation in H1. The Jarod greenfield is already invoicing assembly-model product and using assembly and testing departments. 420 kV orders are in hand for assembly-model execution starting this year. The localised RIP core programme is the main margin lever: management estimates import duty and freight at 18-20% of imported core cost, but has not committed to an exact margin expansion because customer pricing and competition will decide pass-through. It expects to use imported and local cores together for a couple of years because its own capacity will not meet demand. The key milestones are type tests in weeks, customer plant and product approvals progressing in Q3 FY27, localised commercial output up to 245 kV in Q4 FY28 or mid-2028, and localised 550 kV after about 1.5 years.
Exports are a second option, not yet a proven engine. Exports were 5% of H1 FY27 revenue. Yash HV USA has representation agreements with Encel Electric Associates, Gateway Power Sales and ESP Solutions LLC, extending coverage to close to 27 states; management says agents cover close to 30 countries. It expects to start booking export orders from mid-next year and says the mix could change from FY28-29. RIP bushings have not yet been exported, and OIP export capacity is expected around end or mid-next year. The prior 20%+ export target was not reiterated, so it remains open. My inference is that US representation can improve approval depth and enquiry flow before it becomes material revenue; the timing is uncertain.
Capital allocation is supportive but not without claims on cash. The preferential allotment of equity shares and warrants aggregated about ₹151 crore, with about ₹106 crore received and the balance payable on warrant conversion within 18 months. Net cash was ₹195 crore on 30 September 2026. Receivables were 47 days, unchanged from H1 FY26, while other current assets rose mainly due to advances to core vendors to secure slots. Management says the current expansion should be sufficient for the ₹900-1,000 crore revenue potential, with only small incremental investment thereafter. Sukrut, taken over formally nine months ago, has been brought back to profit and is described as synergistic with Yash and Quality Power, but no updated revenue target was given. The acquisition adds another execution variable rather than a proven second leg.
Management delivery is only partly verifiable from the supplied material. The order book has grown to ₹760 crore and assembly-stage greenfield invoicing has begun, which supports execution. But the earlier H2 FY27 commercial-production framing now applies to assembly operations, while localised core output is later. The full historical promise chronology is not available in the supplied documents, so I do not assign a delivery score. The observable pattern is that capacity work is progressing, while the margin-changing localisation step remains ahead.
The falsifiers are specific. Localised RIP core type tests could fail or slip beyond Q4 FY28/mid-2028, delaying the 18-20% import duty and freight saving. Unit 2 plant approvals or customer product approvals for Yash-made cores could slow greenfield invoicing. US representation may take longer than a couple of months to convert, and export order booking from mid-next year may slip. Higher H2 depreciation could compress PAT margin if assembly revenue does not scale. New bushing entrants or aggressive Chinese pricing could erode the H1 28.1% EBITDA margin. Conversely, successful type tests, Q3 approvals, brownfield capacity in Q4 and export orders from mid-next year would validate the path toward the ₹900-1,000 crore revenue potential by FY31. I distinguish those management targets and aspirations from my inference that the near-term earnings base is supported by the order book while the margin uplift is back-end loaded.
companyname: Yash Highvoltage Limited ticker: 544310 sector: Transformer Bushings / Power Transmission Components Yash Highvoltage Limited manufactures high-voltage and high-current transformer bushings, the critical components that connect a transformer's internal windings to the external power grid. Founded in 2002 and headquartered in Vadodara, Gujarat, the company produces Oil-Impregnated Paper (OIP), Resin-Impregnated Paper (RIP), and Resin-Impregnated Synthetic (RIS) condenser bushings, a...
Read the full report →capex, margin expansion, geographic expansion, order book surge, acquisition inorganic
Management guides ₹220 crore total greenfield capex, with ₹106 crore paid to 30 September 2026 and the balance over the next 12 months. Brownfield completion is guided for Q3 FY27 with added capacity visible in Q4. Localised RIP core commercial production up to 245 kV is targeted for Q4 FY28 or mid-2028 at the latest; localised 550 kV follows after about 1.5 years. Management sees Unit 1 and Unit 2 revenue potential of ₹900-1,000 crore, with full utilisation expected by 2030-31. On margins, management would only say efforts are to maintain or improve, without a specific FY27 or FY28 target.
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