In other view cancelling adani tender would benifit the salzer if TN govt award the tender to any AMISP, who doesn’t have own smart meter manufacturing capacity.
They can source most of the smart meters from local entity like salzer.
Yeah !! Opportunity is really lucrative
New smart meter order of 50 cr, any idea what is the total order book for this company in terms of smart meter only ? Is it 95 cr ?
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I think orderbook is only 50 Cr now after executing the 5 Cr order in the last quarter.
Expecting some more orders from the other AMISP’s, we see some orderbook build up by the time they announce Q4 results
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There is nothing new in the report, Management guided 600-700 Cr additional revenue in Fy26 from smart meter and further additional revenue in Fy27 from fast charging buisness, but target 1333 seems not so accurate, i feel it will break ATH soon once smart meter order flow and execution starts
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Smart Meter Execution Update under RDSS (as of Mar 2025)
- Total sanctioned outlay for smart metering: ₹1.3 lakh crore across 45 discoms
- Goal: 197.9 million meters, 5.25 lakh transformers, 2.11 lakh feeders
- Current installs: 23.9 million meters done (≈11% of target)
- FY25 alone: 13.4 million meters installed
- Highest installs: Bihar (~6.3M), Assam (~3.2M)
- Daily install rate up from 11k–12k/day last year to 80k/day now
- Targeting 1 lakh/day soon
- Initial delays due to technical issues, testing, prepaid transition, tendering, etc.
- Smart meter model is self-financed via AMISPs; no upfront capex by discoms
- Govt incentives: ₹900–₹1350 per meter + ₹450–₹675 bonus for timely installs
- 58% of sanctioned work awarded; rest in progress
- Supply chain not a constraint – domestic capacity at 10 crore meters/year
- RDSS deadline may extend to 2027–28 for full execution
According to experts, smart metering installations are expected to pick up pace in the next one to two years, which will improve the segment’s key metrics going forward.
Sources:
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All Good!! Business growing, therefore valuation at a premium. But Promoters’ holding at 37.54%( Out of which 17.2% is pledged) against public holding of 58.1% doesn’t inspire confidence in current market scenario, though promoters’ holding has inched up in last 2-3 years. I am not invested into this company, just came across going through recent growth stocks.
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Q4FY25_Concall_KTAs_Compendium.pdf (7.0 MB)
This file has a compilation of q4fy25 concall notes.
For salzer, the notes have following points mentioned :
•The company secured a second order worth INR 3,600 Mn for smart energy meters from a leading AISP in India.
•They also announced a INR 9920 Mn order from Bangalore Corporation (BBMP) for re-entry into the energy saver
project space.
I didn’t find the same in concall transcript of q4fy25. Neither did find any corp. announcement stating the same.
If anyone is aware of the same then pls add the sources to this forum.
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If i am not wrong they have mentioned about this in their detailed con call, you refer it from screener /bse website. Attached file - seems summary of cancall by Arihant.
please go through details concall
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I shared the same understanding. But did not find first hand info of the same.
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No update on smart meters order inflow till now.
This is what street is expecting, without any smart meters order inflow valuations seems to be expensive.
https://x.com/valueeducator/status/1950536830375625026?s=46
Most of things we know, still a good read. Everything in one thread.
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Salzer Electronics Q1 FY27 concall takeaways:
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Revenue +13% YoY to ₹498 Cr, but EBITDA fell to ₹31 Cr vs ₹42 Cr and PAT almost halved to ₹8 Cr.
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The issue is margin, not demand. Management says volume growth was ~7–8%.
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Switchgear is where the pain is: margins have fallen from ~12% to ~7.5–8% because copper/silver/plastic costs moved up faster than price pass-through.
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Wire & Cable looks much better. ~70% of this business is white-labelled and on a cost-plus model, so commodity inflation hasn’t materially hurt margins.
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Management has taken multiple price hikes. June hikes start flowing through from August; another increase is being implemented in August. They are trying to reduce pass-through lag from ~1 quarter to <2 months.
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FY27 EBITDA margin guidance has effectively been reset to 8–8.5% vs the earlier ~10% indication. Q2 is expected to remain weak, with normalization from Q3 and 9–9.5% margins in Q3/Q4.
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Switchgear capacity utilization is already ~80–85%. Management says 23–25% FY27 growth can be achieved without major capex; expansion may be needed next year.
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Kaycee continues to look interesting: revenue has grown from ~₹25 Cr post-acquisition to ~₹60 Cr, with management expecting continued ~27% CAGR-type growth.
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EV charging is progressing: ~160–170 DC fast chargers already supplied/installed, with ~60 more expected in Q2.
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Saudi plant is delayed due to West Asia disruption. FY27 contribution should be limited; management expects ~₹25 Cr incremental revenue from FY28.
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Smart Meter remains the big question mark. Management openly acknowledged that the investment is currently a drag on the balance sheet. Only ~₹3.5 Cr revenue so far, with ~₹22 Cr of finished goods/pending orders awaiting customer clearance. They may reassess the investment over the next 2–3 quarters.
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Working capital is still a concern, although management says working-capital days have improved.
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Export contribution is ~19%, with a medium-term target of 25%.
Overall: The underlying demand picture doesn’t look bad. The current problem is mainly the commodity-price - price-hike - margin-pass-through cycle. The entire thesis now rests on whether margins actually recover from Q3 as management expects.
Questions I’m thinking about:
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Can Switchgear margins really get back toward 10–12%, or has the structural margin profile changed?
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How much of the 23–25% growth is genuine volume growth vs pricing?
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Will working capital normalize as price hikes flow through, or will growth continue consuming cash?
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What exactly happens to the Smart Meter investment if meaningful orders don’t materialize in the next 2–3 quarters?
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Is 8–8.5% FY27 EBITDA the new normal, or genuinely a temporary trough?
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Most importantly: will Q3 actually show the margin recovery management is guiding for?
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