Prostarm Info Systems Ltd (PROSTARM)
🎯 Key Takeaways
- Prostarm Info Systems is transitioning from a capital-intensive, low-margin BESS-focused utility business to a higher-margin C&I model, supported by strong order book execution and margin expansion targets. The company posted 38% YoY revenue growth to ₹76 crores in Q1 FY27 with PAT margin up 156% YoY to 6.
- Revenue declined 27.2% QoQ to ₹76 in Q1FY27.
- ⚠️ Execution delays in the Jhajjar facility due to cost pressures could postpone revenue recognition and impact utilization targets.
📖 The Story
Prostarm Info Systems is transitioning from a capital-intensive, low-margin BESS-focused utility business to a higher-margin C&I model, supported by strong order book execution and margin expansion targets. The company posted 38% YoY revenue growth to ₹76 crores in Q1 FY27 with PAT margin up 156% YoY to 6.05%, signaling early traction in its strategic shift. Management targets 25% revenue growth and EBITDA margins of 12-13% for FY27, up from current levels, with utilization expected to double by FY28. The shift is driven by government-backed orders with low realization risk and a ₹1,090 crore order book, including ₹5 crores under L1 status.
📰 What's Happening
In Q1 FY27, Prostarm executed ₹36 crores in deferred orders, contributing to 38% revenue growth and improved margins. The order book stands at ₹1,090 crores, with ₹70 crores in new orders post-June. Management is actively shifting focus from utility-scale BESS to C&I projects to enhance profitability, targeting utilization of 40-50% by FY28. Working capital days improved to 168 days, and operating cash flow narrowed to ₹16 crores negative. Capital allocation prioritizes debt tied to project cash flows, with no equity dilution planned. Delays in the Jhajjar facility persist due to cost pressures, but commissioning is expected by end of Q2 FY27.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 66 | 160 | 104 | 76 |
| Operating Profit | 10 | 19 | 10 | 6 |
| OPM % | 15.9% | 12.1% | 9.5% | 7.5% |
| Net Profit | 8 | 15 | 8 | 5 |
| EPS | ₹1.54 | ₹2.69 | ₹1.35 | ₹0.78 |
Revenue growth has accelerated from ₹66 crores (Sep 2025) to ₹76 crores (Jun 2026), with PAT margin expanding from 15.9% to 6.05% over the same period despite lower base. However, OPM has declined from 12.1% (Dec 2025) to 7.5% (Jun 2026), reflecting the transition phase — higher volume from lower-margin C&I projects is offsetting margin gains from deferred orders. The company is burning cash (OCF ₹-49 crores in Mar 2026) but improving cash flow trends, with net cash flow turning positive (₹1 crore) in Mar 2026. The shift to C&I is expected to improve long-term margins, but near-term profitability remains sensitive to project execution and utilization rates.
🔮 Management Outlook & What's Next
Management targets 25% revenue growth for FY27, with EBITDA margins of 12-13% and PAT margins of 8.5-9%. Utilization is expected to rise from 20-25% in FY27 to 40-50% in FY28, supported by new orders of ₹70 crores post-June. Working capital days are targeted at 120-150 days by March 2027, with positive operating cash flow expected by year-end. Capital allocation will focus on debt tied to project cash flows, with no equity dilution planned. The shift to C&I projects is explicitly framed as a margin-enhancing strategy, with government-backed orders (e.g., ₹165 crores from Solarium Green Energy) providing revenue visibility and low realization risk.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|
| Equity Capital | 43 | 59 | 59 |
| Reserves | 61 | 205 | 228 |
| Borrowings | 67 | 16 | 84 |
| Total Liabilities | 238 | 338 | 537 |
| Fixed Assets | 23 | 30 | 31 |
| Investments | 0 | 0 | 10 |
| Total Assets | 238 | 338 | 537 |
Equity has modestly increased from ₹43 crores (Mar 2025) to ₹59 crores (Mar 2026), while reserves grew from ₹61 crores to ₹228 crores, indicating retained earnings and capitalization of reserves. Borrowings declined significantly from ₹67 crores (Mar 2025) to ₹16 crores (Mar 2026), reflecting deleveraging or project-specific financing. Total assets rose to ₹537 crores (Mar 2026) from ₹238 crores (Mar 2025), driven by asset growth in project-related investments. The balance sheet shows a deliberate shift toward lower leverage and higher asset base, consistent with capital allocation toward project-linked debt and operational scaling.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 | Mar 2026 |
|---|---|---|
| Operating | -5 | -49 |
| Investing | -13 | -111 |
| Financing | +19 | +161 |
| Net Cash Flow | +0 | +1 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 72.8% | 72.8% | 72.8% | 72.8% |
| FII | 0.7% | 0.6% | 0.9% | 0.5% |
| DII | 0.7% | 1.4% | 0.8% | 0.9% |
| Public | 22.3% | 22.4% | 22.5% | 22.2% |
| # Shareholders | 44,490 | 45,222 | 42,837 | 41,895 |
Promoter holding remains stable at 72.82-72.83% over the last four quarters, indicating no dilution or stake sales. FII holding has fluctuated slightly but remains low at 0.51-0.86%, while DII increased from 0.55% to 0.87% over the same period. Public shareholding rose from 22.32% to 22.19% in Q1FY27, with 41,895 shareholders, suggesting retail participation is growing. No promoter pledging or significant selling activity is evident, and institutional interest remains minimal but stable. The shareholding pattern reflects a stable, promoter-led structure with gradual retail expansion.
⚖️ Peer Comparison — Capital Goods - Electrical Equipment
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| ABB | 1.57 L Cr | 52.4 | 26.5% | 38.1% | 0.00 |
| BHEL | 1.48 L Cr | 61.0 | 11.6% | 9.3% | 0.30 |
| POWERINDIA | 1.46 L Cr | 127.0 | 29.9% | 22.2% | 0.00 |
| SIEMENS | 1.43 L Cr | 43.7 | 14.2% | 23.7% | 0.00 |
| CGPOWER | 1.39 L Cr | 111.5 | 21.3% | 15.6% | 0.00 |
| GVT&D | 1.11 L Cr | 84.8 | 99.4% | 73.6% | 0.00 |
| WAAREEENER | 74,358 | 19.5 | 54.0% | 42.2% | 0.10 |
| APARINDS | 69,893 | 59.1 | 33.0% | 21.9% | 0.16 |
| SUZLON | 63,890 | 20.4 | 44.5% | 51.5% | 0.05 |
| THERMAX | 46,697 | 74.4 | 12.5% | 10.6% | 0.41 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Execution delays in the Jhajjar facility due to cost pressures could postpone revenue recognition and impact utilization targets. 2. The shift to C&I projects is still in early stages, with utilization expected to rise from 20-25% in FY27 to 40-50% in FY28 — any slowdown in project commissioning could delay margin expansion. 3. Operating cash flow remains negative (₹16 crores in Q1 FY27), and while management expects positivity by year-end, sustained cash burn could pressure liquidity if new orders do not convert to revenue on schedule. 4. The company’s reliance on government-backed orders (e.g., ₹165 crores from Solarium) introduces execution and policy risk, despite low realization risk being cited as a mitigant.
📋 Recent Filings
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🟡 Board Meeting 31 August 2026Prostarm Info Systems Ltd issued a corrigendum to its AGM notice dated August 31, 2026, clarifying revisions to Item No. 6 concerning a proposed prefe...
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Announcement 20 August 2026Prostarm Info Systems announced that a customs appeal against it was dismissed as withdrawn, removing a potential liability of ₹25.66 crores and elimi...
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🔴 Financial Results 18 August 2026Prostarm Info Systems reported a 38% YoY revenue jump to **₹76 crores** in Q1 FY27, with EBITDA margin expanding to **8.55%** and PAT margin rising sh...
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🟡 Board Meeting 17 August 2026Prostarm Info Systems Limited announced its 19th AGM on September 11, 2026, where shareholders approved a special resolution to issue up to 2,943,717 ...
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🔴 Financial Results 13 August 2026Prostarm Info Systems Limited announced an audio recording of its earnings call for the quarter ended June 30, 2026, scheduled for August 13, 2026 at ...
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Announcement 13 August 2026Prostarm Info Systems Limited presented its Q1 FY27 investor update, highlighting 38% YoY revenue growth to INR 760 Mn and an 8.55% EBITDA margin, dri...
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🔴 offer document 12 August 2026Prostarm Info Systems Limited disclosed a Monitoring Agency Report from Acuite Ratings & Research for the quarter ended June 30, 2026, confirming comp...
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🟡 Board Meeting 12 August 2026Prostarm Info Systems Limited announced an amendment to its Memorandum of Association, adding a new clause to expand its business scope into IT infras...
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🟡 Board Meeting 12 August 2026The board approved unaudited Q1 FY2026 results showing a profit of [amount context mismatch] lakhs, raised [amount not verified] via 2.94 million conv...
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🔴 Financial Results 12 August 2026Prostarm Info Systems reported Q1 FY2026 unaudited revenue of [amount not verified] and a net loss of [amount not verified], while announcing a prefer...
🧠 Analyst's Read
Prostarm is in a strategic transition phase, shifting from low-margin utility-scale BESS to higher-margin C&I projects, supported by strong order book execution and margin targets. The company is improving cash flow and reducing leverage, but near-term profitability remains volatile due to project ramp-up and utilization delays. Investors should monitor quarterly utilization rates, cash flow inflection, and progress on Jhajjar commissioning as key near-term catalysts. The shift in business model is credible, but execution risk remains elevated until margins stabilize and cash flow turns consistently positive.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-02.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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