Exicom Tele-Systems Limited , a leading player in critical power solutions and EV charging infrastructure, has reported robust financial results for the second quarter of fiscal year 2026, showcasing significant growth across its business segments.

Key Financial Highlights

• Standalone revenue reached INR 228.00 crores, up 52% quarter-on-quarter and 54% year-on-year
• Gross margin improved to INR 60.30 crores from INR 49.30 crores in the previous quarter
• EBITDA grew to INR 15.10 crores, compared to INR 12.60 crores in Q1 FY26
• PAT jumped to INR 5.90 crores from INR 1.10 crores in the previous quarter

Segment Performance

Critical Power Business

The Critical Power division witnessed a remarkable growth of approximately 60% both quarter-on-quarter and year-on-year. Key highlights include:

• Commenced deliveries for the BharatNet project, supplying solutions for about 5,000 sites
• Secured orders from large telcos and tower companies for lithium-ion batteries
• Maintained dominance in the uncovered village project with over 60% business share
• Export revenue from Africa and Southeast Asia accounted for 11% of quarterly revenue

EV Charging Segment

The EV charging business unit demonstrated strong performance with 27% quarter-on-quarter growth and 55% year-on-year growth. Notable achievements include:

• Highest-ever sales of AC chargers by volume, exceeding 20,000 units
• Partnered with an OEM to enter the defense segment
• Won orders for 50 high-power chargers for bus hubs in Delhi and a truck OEM
• Successfully launched and migrated customers to the new Generation 2 platform of DC chargers

Expansion and Future Outlook

Exicom Tele-Systems is set to commence trial production at its new Hyderabad facility this month, with commercial production expected to begin in January 2026. The plant will have capabilities ranging from PCB assembly to entire system integration, including lithium-ion battery lines for telecom and multiple lines for AC and DC chargers.

Consolidated Performance and Tritium Update

On a consolidated basis, including Tritium, revenue stood at INR 281.70 crores. While Tritium's performance continues to impact consolidated EBITDA, management remains optimistic about its long-term potential. Noteworthy developments include:

• Tritium selected as the primary vendor for the largest DC fast charging rollout in the fleet sector
• Advanced pipeline for Tritium's new Tri-Flex product, with order conversions expected in the coming months
• Approval of a $40.00 million fund raise for Tritium to support product commercialization and working capital needs

Management Commentary

Anant Nahata, Managing Director and CEO, commented, "We had a strong quarter with growth in both our Critical Power and EV charging segments. Our focus on exports and new product development is yielding results. While consolidated EBITDA remains under pressure due to Tritium, we are confident about its long-term potential given the significant opportunities in the pipeline."

Shiraz Khanna, CFO, added, "Our standalone performance has shown significant improvement this quarter. With the new Hyderabad facility coming online and our continued focus on R&D, we are well-positioned for sustained growth in the coming quarters."

Conclusion

Exicom Tele-Systems' Q2 FY26 results demonstrate the company's strong market position and growth potential in both the Critical Power and EV charging segments. While challenges remain on the consolidated front due to Tritium, management's strategic initiatives and the promising outlook for new products and markets suggest a positive trajectory for the company in the medium to long term.

Exicom Tele-Systems , a key player in the electric vehicle (EV) charging and critical power solutions sector, has reported progress on its IPO and rights issue fund utilization while also approving a significant $40 million fundraising initiative.

Fund Utilization Report

Exicom Tele-Systems Limited submitted monitoring agency reports from CARE Ratings for fund utilization from its Rs 400.00 crore IPO and Rs 259.41 crore rights issue for the quarter ended September 30, 2025. Key points from the report include:

IPO Proceeds

• Rs 45.60 crore remains unutilized
• The company received board approval to extend the utilization timeline to March 31, 2026
• Key utilizations:
  • Rs 32.24 crore for manufacturing facility setup
  • Rs 20.65 crore for working capital
  • Rs 6.03 crore for R&D activities

Rights Issue Proceeds

• Rs 56.73 crore invested in wholly-owned subsidiary for Tritium business operations
• Rs 55.00 crore for loan repayments
• Rs 3.49 crore for general corporate purposes
• Rs 2.44 crore for issue expenses

Financial Performance

The company reported:

• Total operating income of Rs 213.53 crore
• PBILDT of negative Rs 30.37 crore
• Revenue was impacted by slowdown in telecom equipment industry and subdued EV sales
• Margins were compressed due to industry moderation and initial costs from Tritium acquisition

New Fundraising Approval

Exicom Tele-Systems' board has approved a $40 million fundraising initiative aimed at:

1. Fueling expansion activities, potentially including:

   • Enhancing production capabilities
   • Expanding market reach
   • Investing in research and development

2. Supporting the company's journey to reach EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) break-even

Strategic Implications

This fundraising initiative carries several important implications:

1. Financial Stability: By aiming for EBITDA break-even, the company is positioning itself for improved financial stability.

2. Market Competitiveness: The expansion activities could enhance Exicom Tele-Systems' competitiveness in the rapidly evolving EV charging and critical power solutions market.

3. Investor Confidence: The board's approval for such a significant fundraising effort may signal confidence in the company's business model and growth prospects.

Industry Context

Exicom Tele-Systems' moves come at a time when the EV charging infrastructure sector is experiencing rapid growth and increasing competition. The critical power solutions segment also continues to be vital for various industries, underlining the importance of the company's diversified portfolio.

Looking Ahead

As Exicom Tele-Systems moves forward with its fundraising plan and continues to utilize its IPO and rights issue proceeds, stakeholders will be keenly watching how the company deploys the capital and progresses towards its strategic objectives. The company's ability to effectively utilize these funds and achieve its goals will be critical in determining its long-term success and market position in the competitive landscape of EV charging and critical power solutions.