Prostarm Info Systems , a growing player in the Indian tech sector, has initiated a significant move to bolster its financial capabilities. The company has issued a postal ballot notice to its shareholders, seeking approval for a series of special resolutions aimed at expanding its financial flexibility.

Key Proposals

Rationale for Expansion

The company attributes this substantial increase in borrowing limits to its expanded business operations following a milestone event:

• Stock Exchange Listing: Prostarm Infosystems went public on June 3, 2025
• Consequences of Listing:
  • Enhanced visibility
  • Increased business opportunities
  • Greater financial responsibilities

Financial Flexibility

The proposed resolutions aim to provide Prostarm Infosystems with:

1. Increased working capital support
2. Greater financial flexibility
3. Ability to capitalize on growth opportunities

Shareholder Action Required

Shareholders are required to participate in the postal ballot to vote on these special resolutions. The outcome of this vote will significantly impact the company's financial strategy moving forward.

Market Implications

If approved, this expanded borrowing capacity could signal:

• Potential for significant capital investments
• Increased financial leverage

Investors and market watchers may want to monitor how Prostarm Infosystems plans to utilize this enhanced financial capacity, should the resolutions pass.

Shareholders are advised to carefully consider the implications of these proposals before casting their votes.

Prostarm Info Systems , a leading player in power solutions and energy storage equipment, has reported its financial results for the second quarter of fiscal year 2026, showcasing resilience in the face of market challenges.

Q2 FY26 Performance Highlights

Prostarm Info Systems reported a total income of INR 659.00 million for Q2 FY26, marking a significant 20% sequential growth from the previous quarter. However, this figure represents a 33.1% year-on-year decline compared to Q2 FY25, which the company attributes to a high base effect from large one-time orders in the previous year.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q2 FY26 stood at INR 113.00 million, with an EBITDA margin of 17.15%. While this indicates a decline from the 20.81% margin in Q2 FY25, it shows a substantial improvement from the 7.29% margin in Q1 FY26.

Profit After Tax (PAT) for Q2 FY26 was INR 83.00 million, representing a PAT margin of 12.59%. This demonstrates a remarkable sequential growth of about 350% compared to Q1 FY26's PAT of INR 18.00 million.

H1 FY26 Performance

For the first half of FY26, Prostarm Info Systems reported:

While these figures show a decline from H1 FY25, the company has managed to improve its PAT margin from 7.59% in H1 FY25 to 8.36% in H1 FY26, indicating enhanced operational efficiency.

Key Developments

1. Order Book Strength: Prostarm secured multiple notable orders during Q2, including:

   • Maharashtra State Police CCTNS project
   • A major UPS-rental and transformer order from Electronics Payments & Services
   • A large Battery Energy Storage System (BESS) project from Karnataka Power Transmission Corporation Limited (KPTCL)

2. Balance Sheet Improvement: The company significantly reduced its debt position:

   • Long-term debt decreased from INR 34.00 million in March 2025 to INR 10.00 million in H1 FY26
   • Short-term debt sharply declined from INR 638.00 million to INR 152.00 million over the same period

3. Regulatory Closure: Prostarm achieved regulatory closure on a customs matter, with the Commissioner of Customs issuing a favorable order on July 29, 2025, resulting in the complete dropping of a Show Cause Notice.

4. Expansion Plans: The company is on track with its growth initiatives:

   • The 1.2 GWh Jhajjar BESS facility is nearing commissioning
   • Implementation of SAP B1 and Salesforce is underway
   • Launch of lithium-based BESS for the Commercial and Industrial segment
   • Plans to introduce a full range of Home Energy Storage System (ESS) solutions

Market Outlook

The Indian power inverter market, valued at USD 6.00 billion in 2024, is projected to reach USD 22.00 billion by 2034, growing at a CAGR of 15%. This growth is driven by increasing demand for backup power, renewable energy adoption, and supportive government policies.

The Indian Battery Energy Storage System (BESS) market is expected to grow from under 0.2 GW to 66 GW by 2032, with an investment potential of INR 5,000.00 billion. This sector is crucial for managing intermittency in renewable energy sources and ensuring grid stability.

Management Commentary

While specific management quotes were not provided, the company's focus on expanding its BESS capabilities, reducing debt, and improving operational efficiency indicates a strategic approach to navigating market challenges and capitalizing on growth opportunities in the power solutions and energy storage sectors.

Prostarm Info Systems' performance in Q2 FY26 demonstrates its ability to adapt to market conditions and maintain profitability despite revenue pressures. The company's strong order book and strategic initiatives position it well for future growth in India's evolving power and energy storage landscape.