Salzer Electronics Limited (SALZERELEC) Q2 FY27 Financial Results: PAT ₹8 & Revenue ₹498 Cr

Salzer Electronics reported Q1 FY27 revenue of INR 498 crores, up 13% YoY, driven by industrial switchgear, wires/cables, and building products. EBITDA margin was 6% with PAT at INR 8 crores (2% margin), down from INR 17 crores a year ago. Export revenue contributed 19%. Industrial switchgear grew 10% YoY with 8% EBITDA margin, while wire & cable rose 11% at 5% margin. Building products surged 48% but contributed only 6% to revenue. Margin pressure stemmed from raw material inflation in copper, silver, and aluminium, with pricing actions planned to stabilize margins from Q3 FY27 onward. Strategic investments included INR 1.68 crores in Effilume for EV infrastructure, raising total EV subsidiary investment to INR 93 lakhs. Management highlighted capacity utilization at 80-85% for switchgear and plans to expand distribution into new states. Annuity income from energy management projects is expected to contribute 50% of PAT starting August, with minimal maintenance costs. The company targets 9-9.5% EBITDA margins from Q3 FY27, supported by price increases effective September. Capex of INR 15-16 crores focuses on maintenance and a Saudi plant expansion targeting INR 25 crores revenue in FY28. New product traction includes strong railway growth and HVAC contactor expansion in the U.S. market.