Viviana Power Tech Ltd Q1 FY27 Earnings Call Summary

Event Participants

Executives

5 Nikesh Choksi, Dipesh Patel, Gopal Chandak, Priyanka Choksi, Richi Choksi

Analysts

4 Deekshant Boolchandani, Nikhil Bafna, Nishita Shanklesha, Shubham Agarwal

Financials & KPIs

Geographic & Segment Commentary

• Power Transmission & Distribution EPC (Core Business): Revenue of ₹71.86 crore for Q1, up 246% YoY, driven by central government-funded projects. The company has executed projects in 10+ states and is actively bidding in Haryana, Rajasthan, Bihar, and Uttarakhand, alongside Gujarat where current bids exceed ₹6,000 crore. Management maintains selective bidding for sustainable margins and healthy cash flows.
• Battery Energy Storage Systems (BESS): Order book of ~₹500 crore with two projects secured - one in Gujarat and one in Rajasthan. Gujarat project awaiting notice to proceed from GUVNL; the park will be developed with another developer. Rajasthan project has land secured, awaiting further approvals. Potential is seen as high but near-term execution depends on utility approvals.
• Power Transformer Manufacturing: New leased facility (to be inaugurated end of August 2026) has capacity to manufacture up to 20 MVA transformers. Greenfield facility in Gujarat will manufacture up to 132 kV in first phase, scaling to 220 kV and 400 kV subsequently. First phase Greenfield capex is ~₹90 crore; capability for 132 kV, 63 MVA class targeted next FY.
• Viviana Life Spaces (Real Estate - Proposed Divestment): Assets held in this subsidiary (targeting ~₹100 crore collateral by 2030) will continue to back Viviana Power Tech's bank facilities post-divestment, as promoters remain the same and Priyanka Choksi oversees that business.
• Aarsh Transformers (Distribution Transformers - Proposed Divestment): Contributed less than 5% of revenue last year and expected ~2% in FY27; no material impact on revenue or profit post-divestment. Manufacturing capability is limited to 500 kVA, whereas Viviana Power's new facility starts at 5.5 MVA - prequalifications do not transfer.

Company-Specific & Strategic Commentary

• Corporate Restructuring - Subsidiary Divestments: Board approved disinvestment of 100% stake in Viviana Life Spaces and Aarsh Transformers, subject to regulatory approvals. Rationale is strategic focus, not financial distress - each vertical requires dedicated management and independent capital allocation. Simplification aimed at eliminating conglomerate discount and enhancing valuation transparency; no impact on ongoing operations, working capital, or growth outlook.
• Core Business Focus: Post-restructuring, Viviana Power Tech will focus exclusively on power infrastructure: T&D EPC, power transformer manufacturing, renewable energy integration, BESS, and data centers. Strategy of maintaining strong hard collateral base for EPC business remains unchanged.
• Transformer Manufacturing Growth Initiative: Inauguration of 10 MVA/20 MVA capacity facility is scheduled for end of August 2026. Greenfield project first phase capex ~₹90 crore, with ~₹3.54 crore spent to date; FY27 capex projected at ~₹10 crore, with major capex in next FY. By FY30, transformer facility expected to generate ₹400-500 crore revenue out of the ₹2,000+ crore platform target.
• NCD as Contingent Liquidity: Funds raised via NCD in December and January as contingency while awaiting bank working capital enhancement; approval process took longer than expected. No impact on current working capital position.
• Institutional Investor Outreach: Listed on main board on June 2, 2026. Initiated meetings with domestic mutual funds, PMS houses, and family offices; strengthening investor communication through quarterly presentations and regular disclosures. Management noted potential promoter group investment as part of ongoing development.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Order Pipeline and Bidding Strategy

• Question: How has the journey been in getting larger orders, and what is the vision for bidding pipeline? (Deekshant Boolchandani, DB Wealth)
• Answer: Current order book is ₹800+ crore EPC alone; combined with BESS it exceeds ₹1,300 crore. Bids under evaluation ₹1,400+ crore; active bids ₹2,600+ crore. Since first order of ₹21 lakh in 2014, single largest bid capacity is now ₹120+ crore. Vision is to participate in TBCB and large-scale bids of ₹1,000-2,000 crore within a couple of years. (Nikesh Choksi)

Margin Profile for Larger Bids

• Question: Will ₹1,000-2,000 crore bids be lower margin business? (Deekshant Boolchandani)
• Answer: For at least the next 4-5 years, the company expects to maintain current profitability levels. (Nikesh Choksi)

Institutional Investor Engagement

• Question: What is being done to get more institutional recognition and improve shareholding? (Deekshant Boolchandani)
• Answer: Listed on main board June 2, 2026; initiated meetings with domestic mutual funds, PMS houses, and family offices. Strengthened investor communication through quarterly presentations, earnings calls, and regular disclosures. Institutional ownership builds through consistent execution; will announce any completed deals. Land acquisition for Greenfield facility identified, construction soon. (Nikesh Choksi)

Demand Environment and State-wise Focus

• Question: What is the demand environment in Gujarat, Punjab, and other states? (Nikhil Bafna, Global Healthcare)
• Answer: Executing projects mainly backed by central government funds; focusing on Gujarat where eligible bids exceed ₹6,000 crore. Have executed projects in 10+ states; actively bidding in Haryana, Rajasthan, Bihar, and Uttarakhand. (Nikesh Choksi)

FY27 Order Intake Expectation

• Question: Can we expect ₹500-600 crore order book addition by FY27? (Nikhil Bafna)
• Answer: Conservatively yes; internal expectation is much higher given ₹1,400+ crore under evaluation and ₹2,600+ crore in active bids. (Nikesh Choksi)

Collateral Post-Divestment

• Question: How does the divestment of Viviana Life Spaces impact collateral for working capital? (Nikhil Bafna)
• Answer: Major purpose of developing Viviana Life Spaces was to generate assets for Viviana Power Tech without impacting its books. Post-divestment, collateral of around ₹100 crore by 2030 will remain available for bank facilities, as promoters are the same and Priyanka Choksi oversees that business. (Nikesh Choksi)
• Follow-up clarification: Even after selling the entity, collateral can still be used. (Nikesh Choksi)

Transformer Facility Progress

• Question: Is the battleship and data center transformer facility on track? (Nikhil Bafna)
• Answer: On track. Inaugurating the leased 10 MVA transformer facility (eligible up to 20 MVA) by end of August 2026. Greenfield project land identified, construction to begin soon. (Nikesh Choksi)

Greenfield Capex Details

• Question: What is the capex spent till now and planned for FY27 on the Greenfield project? (Nishita Shanklesha, Sapphire Capital)
• Answer: Total first phase capex ~₹90 crore; spent ₹3.54 crore to date; FY27 capex ~₹10 crore, major capex in next FY. First phase Greenfield will enable up to 132 kV manufacturing; the leased facility (inaugurating this month) will manufacture up to 20 MVA. (Nikesh Choksi)

L1 Status and Order Visibility

• Question: Are we L1 in any of the bids mentioned? (Nishita Shanklesha)
• Answer: Unexecuted order book plus L1 position is ~₹840 crore. DGVPL single tender LOA of ~₹100 crore expected. ₹1,400+ crore under evaluation (technical/commercial yet to open); ₹2,600+ crore active tenders in Gujarat and Haryana. (Nikesh Choksi, Dipesh Patel)

Revenue Split - Manufacturing vs EPC

• Question: What will the revenue bifurcation look like post transformer facility commissioning? (Nishita Shanklesha)
• Answer: By 2030, expect total revenue of ₹2,000+ crore, with transformer facility contributing ₹400-500 crore. (Nikesh Choksi)

BESS Growth Outlook

• Question: How do you see BESS order book growing? (Nishita Shanklesha)
• Answer: High potential in BESS. Two projects - Gujarat awaiting GUVNL notice to proceed with another developer; Rajasthan has land, awaiting further approvals. (Nikesh Choksi)

Margin Sustainability

• Question: Is the EBITDA margin temporary or structural? (Nikhil Bafna)
• Answer: Q1 margin of ~8.5-16% is elevated; annual guidance is ~9-9.5%. (Dipesh Patel)

Divestment Proceeds Utilization

• Question: How will disinvestment proceeds be utilized, and how much will come in? (Nikhil Bafna)
• Answer: Valuation ongoing, amount not yet disclosed. Funds will come to Viviana Power Tech Ltd. Any promoter shareholding changes will be updated soon. (Dipesh Patel, Nikesh Choksi)

Aarsh Transformers - Prequalification Transfer

• Question: Does the prequalification from Aarsh transfer to Viviana Power Tech after divestment? (Shubham Agarwal, Lattice Pensar)
• Answer: Aarsh has prequalification for up to 500 kVA transformers only; Viviana Power is starting from 5.5 MVA, so we have to start from scratch anyway. (Nikesh Choksi)

Receivables and Cash Flow

• Question: What is the expected timeline to collect receivables? (Unidentified Participant, RR Investor Capital)
• Answer: Major revenue came in March; major amounts received from debtors since then. No delayed payments from any client. Over ₹40 crore of June 30 receivables were received in July; collections from discoms and power utilities are timely. (Dipesh Patel, Nikesh Choksi)

Key Takeaway

Viviana Power Tech delivered exceptional Q1 FY27 results with revenue of ₹71.86 crore (up 246% YoY), EBITDA of ₹11.56 crore (up 232%), and PAT of ₹6.93 crore, underpinned by a ₹1,312.53 crore order book and ₹840 crore of unexecuted/L1 positions. Management announced a strategic restructuring - divesting Viviana Life Spaces and Aarsh Transformers to sharpen focus on the core power infrastructure platform, with no impact on operations or collateral support (₹100 crore by 2030 remains available for bank facilities). Transformer manufacturing is accelerating with a leased facility (up to 20 MVA) being inaugurated end-August 2026 and a Greenfield plant (₹90 crore capex) targeting 132 kV capability next FY. BESS order book of ~₹500 crore awaits regulatory approvals in Gujarat and Rajasthan. FY27 revenue guidance of ₹875-910 crore and FY30 target of ₹2,000-2,200 crore remain intact. Key watch points include margin normalization to ~9-9.5% annually, working capital management as execution scales, and execution of institutional investor engagement post main-board listing.

Transcript incomplete - Q&A section available and included; all other sections complete.