Buy Yash Highvoltage Ltd For Target Rs.1,500 by Choice Institutional Equities
Strong Volume Growth and Improved Product Mix in H1FY27
YASHHV reported strong H1FY27 performance, with revenue increasing 95% YoY to INR 1,945 Mn, supported by nearly 40% volume growth and a robust domestic demand. Improved product mix, higher realisation, cost-efficiencies and operating leverage supported margin expansion. The order book of INR 7,600 Mn and ramp-up of the Jarod greenfield facility support growth outlook.
H1FY27 Growth Led by Strong Volumes and Higher Realisation
* Revenue increased 95.3% YoY to INR 1.9 Bn, supported by 40% YoY volume growth (~4,000 bushings) and higher realisation, reflecting a strong domestic demand and a higher share of RIP bushings
* EBITDA rose 152.3% YoY to INR 0.5 Bn, with EBITDA margin expanding 620 bps YoY to 27.5%, driven by operating leverage, better product mix, higher price realisation and efficiency gains * PAT grew 165.7% YoY to INR 0.4 Bn, aided by higher operating profitability
Margin Expansion Drivers and Localisation Benefits
* Gross margin rose from 44.9% to 52%, attributed to product mix, nearly 40% higher volume, better realisation and cost-efficiency measures
* EBITDA margin expansion reflected customer pricing, stronger product mix, better vendor terms, factory efficiency and overhead leverage. Localisation of cores could lead to exclusion of import duty and freight expenses.
* Customer expectations and competitor pricing will determine how savings are passed on. Higher-voltage projects do not always earn higher margin, as profitability depends on project mix and factory utilisation
Capacity Expansion and Capex Outlook
* Greenfield capex of INR 2,200 Mn: INR 1,060 Mn was deployed by 30 September, 2026, and the balance will be invested over the next 12 months. The brownfield OIP expansion at Halol is on track to complete in Q3FY27
* No major capex is planned beyond the current investment, which is sufficient to support revenue of INR 9,000–10,000 Mn by FY30–FY31. Only minor capex will be required to support volume growth
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SEBI Registration no.: INZ 000160131
