Coimbatore: Salzer Electronics posted a solid performance in Q2FY26 with revenue touching ₹419 cr, up 22% YoY, supported by robust traction in its core Switchgear segment and steady contribution from Wires & Cables. Despite margin pressures from commodity volatility and export softness, the company maintained its full-year revenue guidance and projected a stronger H2.
For H1FY26, the firm reported revenue of ₹860 cr, marking 23% growth, while PAT stood at ₹31 cr. In Q2 alone, PAT came in at ₹13 cr with EBITDA margin at 9%, broadly in line with management’s guided range.
The Switchgear division remained the standout performer, growing 25% and delivering the company’s highest margins at 11–12%. Wires & Cables recorded moderate growth of 15%, driven by stable domestic demand. The Building Products segment, though still small, continued to show improving traction and remains a long-term growth bet.
However, the update on the Smart Meter business was more subdued. Revenue from the segment stood at ₹24 cr in H1 with an order book visibility of nearly ₹50 cr. Management indicated that the earlier projection of ₹500 cr+ annual potential is unlikely in the near term, revising the implied FY26 outlook to around ₹300–350 cr.
In the EV Charger vertical, the company has sold nearly 50 units so far, reflecting early-stage adoption. Management said the category remains strategic but will scale gradually.
Key risks flagged include potential impact from US tariff actions, elevated inventory levels, copper price inflation, and muted export demand. Despite these challenges, Salzer expects legacy margins to hold at 9.5–10% and anticipates a stronger H2 on the back of improved demand visibility and cost optimisation.
The company reiterated that its top-line guidance for FY26 remains intact, supported by diversification across product categories and expanding domestic opportunities.
