Indo SMC Limited (544681) Earnings Call Transcript & Summary

February 11, 2026

BSE IN Industrials Electrical Equipment earnings 85 min

Earnings Call Speaker Segments

Operator

operator
#1

Ladies and gentlemen, good day, and welcome to Indo SMC Limited Q3 FY '26 Results Conference Call hosted by EquiBridgeX Advisors Private Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Ruchika Shah from EquiBridgeX Advisors Private Limited. Thank you, and over to you, ma'am.

Ruchika Shah

analyst
#2

Thank you. A very good morning to everyone. Welcome to the Q3 FY '26 Earnings Call of Indo SMC Limited. From the management team, we have with us today, Mr. Neel Shah, Managing Director and Chief Financial Officer; Mr. Nitin Patel, Chairman and Non-Executive Director; Mr. Dipal Patel, Financial Consultant. We will have opening remarks from the management team, post which we will open the floor for question and answer. With that, I would like to hand over the call to Mr. Neel for opening remarks. Over to you, sir.

Neel Shah

executive
#3

Thank you, ma'am. Good afternoon, everyone. A warm welcome to all our investor stakeholders joining us for Indo SMC Q3 FY '26 Earnings Call, our first earnings call after listing. Thank you for your trust and support as we begin this new chapter as a public company. Indo SMC continues to focus on delivering high-precision, utility-compliant electrical solutions across meter cubicle, CT, FRP cable trays and SMC meter boxes. Our emphasis remaining on quality, execution and building long-term customer relationships. Q3 FY '26 has been a strong quarter for us. Revenue from operations stood at approximately INR 10,149 lakhs, reflecting a healthy quarter-on-quarter growth. EBITDA came in at INR 1,645 lakhs, and profit after tax stood at INR 1,210 lakhs, showing shooting improvement driven by operating leverage and disciplined cost management. During the quarter, we secured fresh orders worth INR 54 crores. As on the date, our total order book stands at INR 142 crores, giving the strong revenue visibility for the coming quarters. And also getting some new orders by today, approx. INR 48 lakhs -- INR 48 crores. We're also receiving MSEDCL vendor approval for the 11 kV meter cubicle, continue to see repeated orders from key customers. It's approx. INR 10 crores for this year, reinforce of our market position. Additionally, we significantly improved our working capital efficiency, with the receivable days reducing from 83 days to H1 FY '26 around 40 days in quarter 3 FY '26. It's remarkable for us because it's receiving duration around 40 days in quarter 3. Going forward, our focus is remaining on the profitability growth, effective execution of our order book and maintaining strong governance standards as a listed entity. With that, I conclude my remarks and would now be happy to take your questions. Thank you once again for your time and continued support.

Operator

operator
#4

[Operator Instructions] The first question is from the line of Abhi Jain from AJ Capital.

Abhi Jain

analyst
#5

Great set of numbers. Now since you have got some visibility around the order book, and we are also approaching the year-end, sir, I just wanted to understand how is growth shaping up? How do you see yourselves moving on from here? Any revised guidance for FY '26 and FY '27? Because especially, obviously, transformers is a space and the whole power sector is a space which is booming and which is high in demand. But given that we have seen a lot of rerating happening in the sector and a lot of companies being rated down given the uncertainty in the global world, how is demand shaping up for you? And can you give us some sort of idea about the next 2, 3 years, how do you see your revenues growing? How do you see the demand shaping up? Something around that.

Neel Shah

executive
#6

Yes, sir. Basically -- comparable with the Hindi?

Abhi Jain

analyst
#7

Yes, sir. Please. [Foreign Language]

Neel Shah

executive
#8

Surely, sir. Basically [Foreign Language]

Abhi Jain

analyst
#9

Okay. That's great, sir. Any guidance on FY '26, sir, what will you be closing at revenue on FY '27?

Neel Shah

executive
#10

Right now, [Foreign Language]

Abhi Jain

analyst
#11

I wish you all the best, sir. [Foreign Language] or you will be able to maintain these margins or there will be any risk? Because, obviously, when you are growing at a very fast pace [Foreign Language]. So can you address the investors and shareholders about what are the risks that you see towards your growth? [Foreign Language]

Neel Shah

executive
#12

Right now, [Foreign Language]

Operator

operator
#13

The next question is from the line of Nishita from Sapphire Capital.

Unknown Analyst

analyst
#14

[Foreign Language]

Neel Shah

executive
#15

[Foreign Language]

Unknown Analyst

analyst
#16

[Foreign Language]

Neel Shah

executive
#17

[Foreign Language]

Unknown Analyst

analyst
#18

[Foreign Language]

Neel Shah

executive
#19

[Foreign Language]

Unknown Analyst

analyst
#20

[Foreign Language]

Neel Shah

executive
#21

[Foreign Language]

Unknown Analyst

analyst
#22

[Foreign Language]

Neel Shah

executive
#23

[Foreign Language]

Operator

operator
#24

The next question is from the line of [indiscernible] from SKS Capital.

Unknown Analyst

analyst
#25

[Foreign Language]

Neel Shah

executive
#26

Last year -- next year [Foreign Language]

Unknown Analyst

analyst
#27

Current year.

Neel Shah

executive
#28

Current year [Foreign Language]

Unknown Analyst

analyst
#29

[Foreign Language]

Neel Shah

executive
#30

[Foreign Language]

Unknown Analyst

analyst
#31

[Foreign Language] I'm talking about EBITDA margin.

Neel Shah

executive
#32

Yes. [Foreign Language]

Unknown Analyst

analyst
#33

Agree. All right. And congratulations for a very good set of numbers and all the best.

Operator

operator
#34

The next question is from the line of Hrishit Jhaveri from CBA Assets Managers LLP.

Hrishit Jhaveri

analyst
#35

Congratulations on a great set of numbers. Sir, my first question was on the segment split. Obviously, our segment wise split that has been a bit volatile. So going ahead in the next 2 to 3 years, how do we see our segment split spanning around the 3 core segments which we are in?

Neel Shah

executive
#36

Basically [Foreign Language]

Hrishit Jhaveri

analyst
#37

[Foreign Language]

Neel Shah

executive
#38

[Foreign Language]

Hrishit Jhaveri

analyst
#39

Okay. Understood, sir. And sir, next question, I understand the industry we work on a monthly order booking system. Every month we will increase the order book. But to achieve the INR 450 crores, do we have enough working capital or we have to add some to cater to the large order book and the growing order?

Neel Shah

executive
#40

No. Right now we have that working capital because the IPO [Foreign Language].

Hrishit Jhaveri

analyst
#41

Okay. And sir, to achieve that massive INR 450 crore mark, [Foreign Language]?

Neel Shah

executive
#42

[Foreign Language]

Hrishit Jhaveri

analyst
#43

Okay, sir. Sir, last question if I missed this. Sir, in our business, first of all, you guided for a INR 300 crores top line. If we take the quarterly run rate, so are we expecting a softer Q4 on a Y-o-Y basis [Foreign Language]?

Neel Shah

executive
#44

Pardon, sir?

Hrishit Jhaveri

analyst
#45

INR 300 crores [Foreign Language] overall? [indiscernible] we close the INR 100 crores of top line, so is there any seasonality in our business and are we expecting a softer Q4?

Operator

operator
#46

Sorry to interrupt, Hrishit. You are not audible. Can you use your handset mode please?

Hrishit Jhaveri

analyst
#47

Is it better now?

Operator

operator
#48

Yes, this is good.

Hrishit Jhaveri

analyst
#49

First question on the seasonality. Is there any seasonality in our business?

Neel Shah

executive
#50

I don't understand that.

Hrishit Jhaveri

analyst
#51

[Foreign Language]

Neel Shah

executive
#52

[Foreign Language]

Operator

operator
#53

The next question is from the line of [ Nirav Bhanushali ] from Systematix PMS & AIF.

Unknown Analyst

analyst
#54

Yes. Congratulations on a great set of numbers. [Foreign Language]

Neel Shah

executive
#55

[Foreign Language]

Unknown Analyst

analyst
#56

Next year '27?

Neel Shah

executive
#57

Next year, sir.

Unknown Analyst

analyst
#58

In CT/PT, we are targeting how much, sir?

Neel Shah

executive
#59

In CT/PT [Foreign Language]

Unknown Analyst

analyst
#60

[Foreign Language]

Neel Shah

executive
#61

[Foreign Language]

Operator

operator
#62

I'm sorry to interrupt, [ Mr. Bhanushali ], we are unable to hear you.

Unknown Analyst

analyst
#63

Am I audible now?

Neel Shah

executive
#64

Yes.

Unknown Analyst

analyst
#65

[Foreign Language] at the EBITDA level. So broadly, what will be the sustainable margins we are okay to operate?

Neel Shah

executive
#66

[Foreign Language]

Unknown Analyst

analyst
#67

Okay. [Foreign Language] how much will be our exit order book? And what is the order pipeline, right, we are having?

Neel Shah

executive
#68

[Foreign Language]

Unknown Analyst

analyst
#69

[Foreign Language]

Neel Shah

executive
#70

Yes. [Foreign Language]

Unknown Analyst

analyst
#71

Sir, payment [Foreign Language] how is it? Are you facing any issues on this front, state-wise...

Neel Shah

executive
#72

Right now, we are not ever facing the issues. Because [Foreign Language]

Unknown Analyst

analyst
#73

Sustainable, sir, working capital cycle [Foreign Language] going forward?

Neel Shah

executive
#74

[Foreign Language]

Operator

operator
#75

Next question, [ Siddharth, Darsh Capital ].

Unknown Analyst

analyst
#76

Congratulations on a great set of numbers. Sir, I have 2 questions. [Foreign Language] But that growth hasn't really materialized into numbers. [Foreign Language] Could you please throw some light on this? [Foreign Language] both the segments, yes, flattish performance?

Neel Shah

executive
#77

[Foreign Language]

Unknown Analyst

analyst
#78

[Foreign Language]

Neel Shah

executive
#79

[Foreign Language]

Unknown Analyst

analyst
#80

Understood. Sir, another follow-up question on segmental pay [Foreign Language] bifurcation will be in terms of revenue?

Neel Shah

executive
#81

[Foreign Language]

Unknown Analyst

analyst
#82

Understood. Sir, just one last question [Foreign Language]

Neel Shah

executive
#83

[Foreign Language]

Unknown Analyst

analyst
#84

[Foreign Language] so this is, primarily, because of...

Neel Shah

executive
#85

[Foreign Language]

Unknown Analyst

analyst
#86

Understood [Foreign Language]

Neel Shah

executive
#87

[Foreign Language]

Operator

operator
#88

[Foreign Language] [Jignesh, Jiva Capital ].

Unknown Analyst

analyst
#89

[Foreign Language] So are we -- now, we can start approaching them for newer products also. [Foreign Language]

Neel Shah

executive
#90

[Foreign Language]

Unknown Analyst

analyst
#91

[Foreign Language]

Neel Shah

executive
#92

Right now [Foreign Language]

Unknown Analyst

analyst
#93

Okay. [Foreign Language]

Neel Shah

executive
#94

[Foreign Language]

Unknown Analyst

analyst
#95

[Foreign Language]

Neel Shah

executive
#96

[Foreign Language]

Unknown Analyst

analyst
#97

[Foreign Language]

Neel Shah

executive
#98

[Foreign Language]

Unknown Analyst

analyst
#99

[Foreign Language]

Neel Shah

executive
#100

[Foreign Language]

Unknown Analyst

analyst
#101

[Foreign Language]

Neel Shah

executive
#102

[Foreign Language]

Unknown Executive

executive
#103

[indiscernible] sorry for interfering. Dipal bhai, please share what is the [indiscernible]?

Dipal Patel

executive
#104

Yes, I would like to add something. Hello, sir, I'm Dipal Patel. Actually we are focused now on a stock clearance on a fast movement basis as already Mr. Neel bhai said that we have got so much of orders and we are -- our delivery and all we have improved so much. As we have a good infrastructure, we can have that flexibility of delivery of the goods on a very good rate on a daily basis. And another is for we have got clearance of debtors. We have very worked hard on this part and now we have control over debtors to the 45 days to 60 days. And for the LTCT part where the copper is the main product where the price fluctuation is there, we have tried to convert our debtors in some part to some extent on an advance basis also. So we are working on that part to improve our cash flows.

Unknown Analyst

analyst
#105

Correct. So that advances, are we able to get 20%, 30% advances?

Dipal Patel

executive
#106

Yes. It depends on the party and depends on the order size what we are getting. We have that range of 20% to 50%.

Neel Shah

executive
#107

[Foreign Language]

Dipal Patel

executive
#108

Yes.

Unknown Analyst

analyst
#109

[Foreign Language]

Dipal Patel

executive
#110

Really, now onwards, I think last quarter we have started on that part, and now we are controlling to give the credit period, more credit period to the small parties. And for still on a higher side, we are giving some sort of credit period. But at least we have -- that we are generating facility for them to create an advance to 20% to the 50%.

Unknown Analyst

analyst
#111

[Foreign Language]

Dipal Patel

executive
#112

[Foreign Language ] they have fixed payment cycles.

Neel Shah

executive
#113

[Foreign Language]

Operator

operator
#114

[Foreign Language] [ Jayesh, HDFC Securities. ]

Unknown Analyst

analyst
#115

[Foreign Language]

Neel Shah

executive
#116

[Foreign Language]

Unknown Analyst

analyst
#117

[Foreign Language]

Neel Shah

executive
#118

[Foreign Language]

Unknown Analyst

analyst
#119

[Foreign Language] another question from my end. Sir, how dependent is the business on power distribution and the government CapEx? [Foreign Language]

Neel Shah

executive
#120

[Foreign Language]

Unknown Analyst

analyst
#121

And sir, what is the typical order size and execution cycle of that?

Neel Shah

executive
#122

[Foreign Language]

Unknown Analyst

analyst
#123

[Foreign Language]

Neel Shah

executive
#124

Pardon?

Unknown Analyst

analyst
#125

[Foreign Language] products are those largely standardized or customized as per the client requirement?

Neel Shah

executive
#126

[Foreign Language]

Unknown Analyst

analyst
#127

And sir, if we talk about the scalability, so how scalable are your SMC and FRP production lines?

Neel Shah

executive
#128

[Foreign Language]

Unknown Analyst

analyst
#129

[Foreign Language]

Neel Shah

executive
#130

[Foreign Language]

Unknown Analyst

analyst
#131

And sir, what is the current installed capacity across all 4 manufacturing plants? [Foreign Language]

Neel Shah

executive
#132

[Foreign Language]

Unknown Analyst

analyst
#133

[Foreign Language]

Neel Shah

executive
#134

[Foreign Language]

Unknown Analyst

analyst
#135

And sir, do you see sustainable order inflow momentum in the upcoming financial year that is FY '26 through FY '27?

Neel Shah

executive
#136

[Foreign Language]

Unknown Analyst

analyst
#137

Sir, sustainable inflow momentum.

Neel Shah

executive
#138

Right now, we have almost achieved 250 [Foreign Language]

Unknown Analyst

analyst
#139

Okay. And sir, are there any patented or proprietary product designs? [Foreign Language]

Neel Shah

executive
#140

Just Pardon? Just clear, sir, question?

Unknown Analyst

analyst
#141

[Foreign Language]

Neel Shah

executive
#142

Basically, right now [Foreign Language]

Unknown Analyst

analyst
#143

[Foreign Language] what is the management team's experience in composites and electrical products?

Neel Shah

executive
#144

[Foreign Language]

Unknown Analyst

analyst
#145

Okay, sir. And sir, one last question from my side. Sir, on the future [Foreign Language] what are the biggest operational risks that you foresee? And sir [Foreign Language] mitigation plans?

Neel Shah

executive
#146

[Foreign Language]

Unknown Analyst

analyst
#147

[Foreign Language]

Neel Shah

executive
#148

[Foreign Language]

Operator

operator
#149

[Foreign Language] [ Raunak Bansal, Nova Orbit. ]

Raunak Bansal

analyst
#150

Congratulations, sir, on a great set of numbers. Most of my questions are answered; I have one small question. The current order book around INR 150 crores [Foreign Language].

Neel Shah

executive
#151

[Foreign Language]

Raunak Bansal

analyst
#152

[Foreign Language]

Neel Shah

executive
#153

[Foreign Language]

Raunak Bansal

analyst
#154

[Foreign Language]

Neel Shah

executive
#155

[Foreign Language]

Raunak Bansal

analyst
#156

[Foreign Language]

Neel Shah

executive
#157

[Foreign Language]

Operator

operator
#158

[Foreign Language] [ Nishma, Alpha Group. ]

Unknown Analyst

analyst
#159

Congratulations for the fabulous results. I do have one question. Could you shed some more light [Foreign Language] new product line that you are starting [Foreign Language]?

Neel Shah

executive
#160

[Foreign Language] just clear it?

Unknown Analyst

analyst
#161

Sir, the one thing that you mentioned [Foreign Language]

Neel Shah

executive
#162

[Foreign Language]

Unknown Analyst

analyst
#163

[Foreign Language]

Neel Shah

executive
#164

[Foreign Language]

Operator

operator
#165

[Foreign Language] Surya, PhillipCapital PCG.

Surya Patra

analyst
#166

First of all, [Foreign Language]

Neel Shah

executive
#167

[Foreign Language]

Surya Patra

analyst
#168

[Foreign Language]

Neel Shah

executive
#169

[Foreign Language]

Surya Patra

analyst
#170

Understood sir, just one last question, sir [Foreign Language]

Neel Shah

executive
#171

[Foreign Language]

Surya Patra

analyst
#172

[Foreign Language]

Neel Shah

executive
#173

[Foreign Language]

Surya Patra

analyst
#174

[Foreign Language]

Neel Shah

executive
#175

[Foreign Language]

Operator

operator
#176

[Foreign Language] [ Rakesh Khosla, Dhanishth Technical Investments. ]

Unknown Analyst

analyst
#177

[Foreign Language]

Neel Shah

executive
#178

[Foreign Language]

Unknown Analyst

analyst
#179

[Foreign Language]

Neel Shah

executive
#180

[Foreign Language]

Unknown Executive

executive
#181

Suitable for [Foreign Language]

Neel Shah

executive
#182

[Foreign Language]

Unknown Analyst

analyst
#183

[Foreign Language]

Neel Shah

executive
#184

[Foreign Language] 7575088803.

Unknown Analyst

analyst
#185

[Foreign Language]

Neel Shah

executive
#186

[Foreign Language]

Operator

operator
#187

[Foreign Language] [ Jignesh, Jiva Capital. ]

Unknown Analyst

analyst
#188

[Foreign Language]

Neel Shah

executive
#189

Dipal bhai?

Dipal Patel

executive
#190

Yes. I'm Dipal Patel. Just a moment, I'll give you the brief. As we already have that finance in our hand, correct, so -- and we have that purchasing power, and we have suppressed our payment terms from the vendors also -- sorry, customers. And we are, as Mr. Neel said, we have that capacity to route the funds very fast and we have -- and we'll achieve the numbers. We can have that -- hope that we can maximum satisfy the ROE and ROCE. We can -- based on that, we can achieve the highest maximum profit with a good EBITDA margin. And based on that, we can satisfy the investments with a good ROE and ROCE.

Unknown Analyst

analyst
#191

So broadly, if I can understand, as per December, we had INR 36 crores of net worth?

Dipal Patel

executive
#192

Correct.

Unknown Analyst

analyst
#193

And after that, we did an IPO of INR 92 crores.

Dipal Patel

executive
#194

Correct.

Unknown Analyst

analyst
#195

And this year, we are expecting profit of around INR 30 crores. So broadly, we can reach -- INR 30 crores divided by around -- INR 150 crores. So 20% ROE, can this be possible?

Dipal Patel

executive
#196

Yes. We are expecting a good ROE for investors. But if the market and something which unexpected things are there, that will create a problem. But we are committing our new investors a good ROE, ROCE. And our efforts is on the positive side only, because what I can say is we are building a good team, as we already, Mr. Neel said, we are building a good team with a good vision.

Unknown Analyst

analyst
#197

See, that is understood. But since this was a very big dilution, so there is -- to recover the ROE, it takes a lot of time. So I wanted to understand if you have any financials. But, okay. So I have one other question. [Foreign Language] So these companies may be because of a lot of issues, they, I think, [Foreign Language].

Dipal Patel

executive
#198

Sir, for that, I give you some brief about the vision of our promoters.

Neel Shah

executive
#199

[Foreign Language]

Unknown Analyst

analyst
#200

[Foreign Language]

Neel Shah

executive
#201

[Foreign Language]

Operator

operator
#202

One last announcement [Foreign Language] As there are no further questions from the participants, I would like to hand the conference over to the management for closing comments.

Neel Shah

executive
#203

Thank you, everyone, to come, your patience and all the [Foreign Language]. Thank you, everyone to talk to us.

Operator

operator
#204

[Foreign Language] Thank you.

Neel Shah

executive
#205

Thank you.

Dipal Patel

executive
#206

Thank you, ma'am.

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