Prostarm Info Systems Limited reported a sharp expansion in profitability for the quarter ended June 30, 2026, with consolidated net profit attributable to owners rising 151% year-on-year to ₹45.8 crore. This performance was underpinned by a 38% increase in consolidated revenue from operations, which reached ₹760.5 crore, compared to ₹549.1 crore in the same period last year.

The results were reviewed by the Audit Committee and approved by the Board of Directors on August 12, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. An earnings conference call was held on August 13, 2026, featuring Chief Executive Officer Ram Agarwal and Chief Financial Officer Abhishek Jain.

Financial Performance

Consolidated revenue from operations stood at ₹760.48 crore for Q1FY27, up from ₹549.14 crore in Q1FY26. Total income reached ₹785.79 crore. Operating expenses totaled ₹724.37 crore, resulting in a profit before tax of ₹61.42 crore. After accounting for tax expenses, the net profit for the period was ₹45.79 crore.

On a standalone basis, revenue from operations grew 49% to ₹758.22 crore from ₹509.76 crore in the previous year. Standalone net profit increased 221% to ₹50.13 crore. Earnings per share (basic) were ₹0.78 on a consolidated basis and ₹0.85 on a standalone basis.

What the Numbers Show

The divergence between revenue growth and profit expansion highlights improved operational leverage. While consolidated revenue grew 38%, net profit more than doubled, indicating that cost structures did not scale linearly with income. Employee benefit expenses rose 14% to ₹74.38 crore (consolidated), lagging behind revenue growth, which contributed to margin expansion. Additionally, EBITDA margin improved by 126 bps YoY to 8.55% from 7.29%, supported by higher revenue efficiency.

Management noted that while Q1 revenue was lower sequentially compared to Q4FY26 (₹104 crore), this aligns with seasonal trends. Approximately ₹36 crore of deferred orders from Q4FY26, primarily related to Adani, were executed in Q1FY27. The remaining deferred amounts from SAIL and South Eastern Railway are expected to be billed in Q2 and Q3 FY27.

Working Capital and Cash Flow Improvements

A significant development in Q1FY27 was the improvement in working capital dynamics. The working capital cycle reduced to 168 days in Q1FY27 from 185 days in Q4FY26. Cash flow from operating activities improved to negative ₹16 crore from negative ₹49 crore in the prior quarter. Trade receivables declined to ₹231 crore as of June 2026 from ₹254 crore as of March 2026, with further reductions expected by the end of Q2FY27. Management targets a working capital cycle of 120-150 days by March 2027.

Corporate Developments

The board approved several key resolutions during its meeting on August 12, 2026:

• Preferential Allotment: The company will issue up to 29,43,717 fully convertible warrants (FCWs) at ₹147 per warrant, aggregating up to ₹43.27 crore. The allotment is to non-promoter investors including Mrs. Pushpa Rani Bakliwal, Mr. Amol Satish Godha, and others. Each warrant converts into one equity share of face value ₹10 within 18 months. The proceeds are intended for working capital requirements, specifically to support the upcoming manufacturing facilities in Jhajjar and Gujarat.
• Statutory Auditor Appointment: M/s. Valawat and Associates has been appointed as statutory auditors for five years, subject to member approval at the AGM. The proposed remuneration is ₹10.5 lakh plus applicable taxes.
• MOA Alteration: The object clause of the Memorandum of Association will be altered to include end-to-end system integration, IT infrastructure solutions, and digital technology services. This expansion explicitly covers Battery Energy Storage Systems (BESS), Artificial Intelligence (AI), Machine Learning (ML), Industrial Automation, Smart Infrastructure, and Renewable Energy Integration.
• AGM Details: The 19th Annual General Meeting is scheduled for September 11, 2026, at 3:00 pm through Video Conferencing/Other Audio-Visual Means. The register of members will remain closed from September 5, 2026, to September 11, 2026. Remote e-voting will commence on September 8, 2026, at 9:00 am and end on September 10, 2026, at 5:00 pm.
• Operational Update: Relocation of certain business operations is substantially ready, with commencement expected by September 30, 2026, pending regulatory approvals.

Investor Presentation Highlights

Prostarm Info Systems released its investor presentation for Q1FY26, detailing business segments and order book status. The company operates through four main segments: Manufactured Power Solution Products (28% of revenue), Third Party Power Solution Products & Other Products (30%), BESS-EPC (40%), and Value-Added Services (1%).

Key operational highlights include:

• Order Book: As of June 2026, the company holds an order book of ₹10,852 crore across 117 projects, with an additional ₹50 crore in L1 status orders. The BESS segment dominates the order book with ₹8,754 crore, followed by Solar EPC Contracts at ₹1,851 crore. Excluding large developer projects, the in-hand order book stands at approximately ₹236 crore, with additional dealer business contributing around ₹10 crore per month.
• Manufacturing Expansion: The 1.2 GWh Jhajjar BESS facility is nearing commissioning, expected to enhance manufacturing capacity for large-scale energy storage solutions. A new UPS manufacturing facility in Bakrol, Gujarat, is also underway, expected to be operational by Q2FY27. Management expects utilization at the Jhajjar facility to remain below 25% in FY27, targeting 40-50% in FY28, with a strategic focus on high-margin Commercial and Industrial (C&I) segments rather than utility-scale projects.
• Strategic Wins: The company secured multiple strategic orders in Q1FY27, including ₹113 crore in BESS projects from a reputed corporate and a ₹1,650 crore Solar EPC order from Solarium Green Energy. The entire Solarium order is expected to be executed within FY27.
• Digitisation: SAP and Salesforce implementation is nearing completion, expected to be operational by the end of H1FY27.

Strategic Shifts and Market Outlook

Management indicated a strategic pivot away from utility-scale BESS projects due to aggressive bidding and margin pressures in the sector. Instead, the company is focusing on the C&I segment, where margins are reportedly better. The Jhajjar facility’s initial utilization will be conservative to prioritize these higher-margin opportunities. Regarding future capital requirements, management stated that no further equity dilution is planned for the next year, with debt for developer projects like the Bihar initiative being raised through subsidiary SPVs backed by LC-supported cash flows.

The presentation underscores the company's focus on reducing working capital cycles, rationalizing indebtedness, and expanding capabilities through inorganic and organic growth, targeting the projected 236 GWh BESS demand by 2032.

Prostarm Info Systems reported a 14.4% increase in consolidated net profit to ₹330.1 million (₹3,300.5 lakh) for FY26, driven by a 10% rise in revenue to ₹3,857.7 million (₹38,576.7 lakh). The power solutions provider posted standalone net profit of ₹347.4 million, up 13.9% year-on-year.

The results reflect the company's first full fiscal year as a listed entity following its initial public offering in June 2025. Management attributed the growth to strong commercial momentum and a diversified customer base across government, enterprise, and institutional segments.

Financial Performance

The company delivered consistent top-line and bottom-line growth across both standalone and consolidated metrics.

The board decided not to recommend any dividend for the financial year ended March 31, 2026, opting instead to conserve resources for future growth plans.

What the Numbers Show

Revenue growth outpaced net profit growth in percentage terms only marginally, indicating stable operational leverage despite higher investments in talent and manufacturing expansion. The company’s balance sheet strengthened significantly post-IPO, with management noting a substantial reduction in long-term debt and improved financial flexibility.

Strategic Expansion

Prostarm is investing in new manufacturing capabilities to address growing demand for energy storage. The company is developing a 1.2 GWh Battery Energy Storage System (BESS) facility in Haryana and a new UPS manufacturing unit in Gujarat. Both facilities are expected to commence operations in the first half of FY27.

The company also incorporated two wholly-owned subsidiaries during the year—Prostarm Bihar BESS Private Limited and Prostarm Karnataka BESS Private Limited—to support project execution in those regions.

Order Book and Outlook

Management highlighted a healthy executable order book of over ₹1,100 crore (₹11,064 million), providing strong revenue visibility. The company continues to secure orders from leading organizations in the public and private sectors, including railways, healthcare, BFSI, and infrastructure.

Looking ahead, Prostarm expects to benefit from India’s transition towards cleaner energy and greater electrification. The company is also progressing with the implementation of SAP Business One and Salesforce platforms to enhance process efficiency and customer engagement.

Corporate Actions

The company will hold its 19th Annual General Meeting on September 11, 2026. Key agenda items include:

• Re-appointment of Mr. Ram Agarwal as a director.
• Appointment of M/s Valawat and Associates as statutory auditors for five years.
• Ratification of remuneration for cost auditors M/s Y R Doshi & Company.
• Alteration of the Memorandum of Association to include end-to-end system integration and IT infrastructure services.
• Preferential issue of up to 29.4 lakh convertible warrants at ₹147 per warrant to raise approximately ₹432.7 million for working capital requirements.