Viviana Power Tech Ltd Management Discussions

1. Overview of the Indian Power Sector Landscape

Macroeconomic Headwinds and Tailwinds

India has successfully sustained its position as one of the fastest-growing major economies globally, consistently achieving an average GDP growth rate of over 7.8%. This massive industrial momentum is anchored heavily by the Government of Indias capital investment push into large-scale infrastructure development, robust manufacturing expansions, intense urban commercialization, and deep rural electrification schemes. As a consequence of these synchronized structural drivers, the nations total electricity requirement continues to rise, expanding at a rate that is actively outpacing baseline GDP growth and positioning the domestic power infrastructure sector on an aggressive, long-term expansion path.

https://www.pbi.gov.in/PressReleasePage.aspx?PRID=2305428r=458&lang=2

Demand-Supply Mechanics and Grid Resilience

Reflecting this structural surge, Indias national peak electricity demand scaled up aggressively from its previous baseline of 250 GW to an unprecedented 270.8 GW by early 2026. Remarkably, despite facing extreme weather patterns and severe heatwaves, national energy shortages were successfully contained at an almost negligible 0.03%. This stellar achievement stands as a clear testament to the unmatched resilience, technical progress, and increasing reliability of the Indian grid infrastructure.

Indias historical per capita electricity usage continues to trail international averages; it is currently experiencing a steep catch-up curve. This long-term consumption surge opens vast multi-decade project execution avenues for infrastructure stakeholders across the utility power value chain.

https://www.pbi.gov.in/PressReleasePage.aspx?PRID=2241822r=38&lang=2

As an established Engineering, Procurement, and Construction (EPC) specialist, Viviana Power Tech Limited is strategically positioned to capitalize directly on this growth. Backed by an exceptional execution track record in Extra High Voltage (EHV) transmission lines and substation infrastructure development, the company remains fully committed to supporting Indias clean energy transition while contributing meaningfully to long-term energy security.

02. Industry Overview

Key Sector Developments and Strategic Imperatives

The domestic power sector is shifting swiftly from static planning frameworks toward dynamic, integrated execution models. However, rapid structural growth highlights several imbalances across the value chain:

? Transmission Grid Gaps: While India added an unprecedented 44.6 GW of solar capacity alone in FY26 (propelling total installed solar close to 162.15 GW), physical grid infrastructure expansions continue to face rollout and commissioning lags. This misma tch

underlines an urgent need for synchronized transmission line deployment to mitigate local curtailment risks.

https://www.cbi.gov.in/PressNoteDetails.aspx?n=130996&Module=3&src=48&lang=2

Transition to Active Rolling Planning: To mitigate grid bottlenecks, the Central Electricity Authority (CEA) has firmly established its responsive annual rolling cycle in place of standard five-year plans, allowing for faster regulatory and structural capital allocations.

DISCOM Operational Turnarounds: State-run Distribution Companies (DISCOMs) are experiencing genuine operational turnarounds through performance-linked financial incentives and strict fiscal discipline frameworks, directly driving them back into aggregate profitability.

Smart Infrastructure Proliferation: Large-scale deployments under the Revamped Distribution Sector Scheme (RDSS) continue across urban and rural zones, successfully lowering AT&Cs losses toward the 12-15% target band via the rollout of over 5.62 crore IoT-enabled smart meters

https://www.pwemr.gov.in/offering/chems-and-services/details/revamped-distribution-scheme-IDCM/TM/IDWA

Government of India: Strategic Vision for 2026-2032

The Government of Indias long-term National Electricity Plan (NEP) maps out an ambitious infrastructure roadmap to support an evolving, high-capacity national grid.

Transmission Line Expansion: The nations total transmission network footprint is actively scaling over a 5.09 lakh ckm baseline toward a target of 6.48 lakh ckm by 2032, while total transformation capacity is projected to expand up to 2,342 GVA.

https://www.cbi.gov.in/PressNoteDetails.aspx?n=29010-2057908&lang=48&lang=2

Capital Requirements: A massive planned investment budget of 9.15 lakh crore has been outlined under the National Electricity Plan to fund these transmission and generation networks through 2032.

https://www.pb.gov.in/PressNoteDetails.aspx?n=29010-2057908&lang=48&lang=2

Non-Fossil Fuel Momentum: In a historic green transition milestone, Indias cumulative non-fossil fuel installed electricity capacity officially crossed the landmark 300 GW milestone in mid-2026, satisfying major international climate action targets well ahead of the 2030 timeline.

https://www.cbi.gov.in/PressNoteDetails.aspx?n=29010-2295798&lang=48&lang=1

03. Corporate Transformation and Operational Milestones

For Viviana Power Tech Limited, the financial year ended March 31, 2026, represents a fundamental transition from an agile SME player to a major power transmission and distribution infrastructure platform.

Migration to the NSE Main Board: Following regulatory approvals, the company successfully migrated from the SME Emerge platform to the National Stock Exchange (NSE) Main Board on June 2, 2026. This milestone enhances stock liquidity, strengthens corporate governance, and gives the company access to institutional equity capital markets.

Vertical Integration Strategy: The company is in process of advancing its 100-crore greenfield capital expenditure investment near Vadodara. This initiative transitions the company from a pure-play EPC contractor into a vertically integrated infrastructure producer. The new facility is designed to manufacture multi-product power transformers

and specialized transmission equipment up to the 400kV class. It aims to secure internal supply chains, expand operating margins, and open an equipment market targeting 400-600 crore in standalone segmental revenue by FY30.

Record Order Book Visibility: Driven by highly competitive bidding, Vivianas unexecuted order backlog officially crossed the landmark 1,000+ crore threshold by the end of FY26, ensuring immense revenue visibility and steady cash flows.

04. Financial Performance in Focus

The financial year 2025-26 was a period of exceptional top and bottom-line expansion for the company, setting new records across all key financial indicators.

Standalone & Consolidated Income Review

Operational Revenue: Viviana delivered a record consolidated turnover of 531.25 crore for FY26, highlighting a remarkable 16x scale expansion since its initial public listing in late 2022. This trajectory was driven by accelerated milestone completions across multi-state project sites.

Net Profit After Tax (PAT): Consolidated net profit surged to 53.46 crore for the fiscal year ended March 31, 2026. This bottom-line performance emphasizes strong execution efficiencies and successful input cost management across the companys regional project divisions.

Operational Profitability (EBITDA): The company maintained high core operating profit margins through proactive material sourcing, integrated project site management, and optimization of its equipment rental model.

05. SWOT Analysis:

Strengths (Strategic Anchors)

Proven EPC Execution History: The company brings over a decade of experience in executing complex electrical contracts, substation construction, and underground cabling networks under tight timelines.

Strategic Client Relationships: Deep institutional partnerships with state electricity boards, private power utilities, and utility-scale renewable energy developers drive consistent repeat business.

Asset-Light Equipment Model: Maintaining ownership of critical baseline machinery while sourcing project-specific heavy hardware through structured rental partnerships optimizes capital allocation.

Insulated Margins via Contractual Structuring: Vivianas contracts are heavily backed by Price Variation (PV) clauses, protecting its operating profit after tax (PAT) margins (which stood at a healthy 53.46 crore on 531.25 crore revenue in FY26) against unexpected commodity price spikes in aluminum, copper, and steel.

Weaknesses (Internal Constraints)

Working Capital Requirements: The companys rapid growth from a 188.99 crore baseline to over 531.25 crore puts continuous demand on working capital to support upfront procurement and performance guarantees.

Geographic Concentration: Project portfolios historical lean toward western and central regional power grids, requiring deliberate expansion into new states to diversify geographic risk.

Opportunities (Growth Drivers)

Riding Indias 10 Trillion Grid Expansion:

The Ministry of Powers ambitious multi-year transmission roadmap to integrate and scale renewable energy capacity to 500 GW by 2030 opens massive infrastructure expansion opportunities. As an established high-voltage EPC specialist capable of engineering projects up to 400kV system levels, Viviana is strategically situated to secure high-value turnkey contracts. These focus areas include:

Developing high-capacity Green Energy Corridors (GEC). Engineering heavy-duty power evacuation transmission lines designed to route massive solar and wind production volumes back into the national grid framework.

https://cee.nic.in/wp-content/uploads/cee_a/2022/12/CEA_Ts_Plan_for_500GW_Non-fossil_capacity_bw_2030.pdf

State-Level Distribution System Revamps (RDSS & Robust-III): Government modernization schemes like the Revamped Distribution Sector Scheme (RDSS) and Gujarats Robust-III initiatives fuel high-volume, repetitive turnkey projects for underground cabling, covered conductors, and substation automation.

Threats & Risk Mitigation Framework

Economic Volatility: Inflation, interest rate fluctuations, and exchange rate instability can impact project funding and profitability. Regulatory Uncertainty: Frequent regulatory changes may lead to higher compliance costs and project delays. Intense Competition: The EPC and infrastructure space is becoming competitive, may impact upon market share and margins. Supply Chain Risks: Material shortages and logistical disruptions can delay project timelines and escalate costs. Technology Disruption: Rapid technological changes necessitate continuous investment in innovation.

06. Risks and Concerns

The Company faces a range of strategic, operational, and external risks that may affect business performance. Our risk management framework helps in proactively identifying, assessing, and mitigating these challenges to ensure long-term sustainability and resilience.

Risk / Concern	Risk Description	Mitigating Strategy
01. Economic Fluctuations	Economic downturns or macroeconomic instability may result in reduced infrastructure investments, impacting project funding, revenues, and margins.	Flexible Contract Terms: Contractual provisions are designed to accommodate price fluctuations and market changes. Cost Monitoring: Close monitoring of cost structures and project viability.

02. Project Execution Risks	Delays, cost overruns, or technical complexities during execution can adversely impact delivery schedules and profitability.	Project Planning & Risk Mitigation: Detailed planning, phased execution, and robust monitoring systems are deployed. Contingency Planning: Backup strategies are implemented at project level.
03. Supply Chain Disruptions	Material shortages, logistics issues, or vendor failures can lead to delays and higher costs.	Supplier Diversification: Partnering with multiple suppliers to reduce dependency. Inventory Management: Implementing buffer stocks and just-in-time strategies.
04. Competitive Pressure	High competition in the EPC and power transmission sectors may impact pricing, margins, and customer acquisition.	Market Intelligence: Regular benchmarking and market research to stay competitive. Value Differentiation: Actively pursue the creation of new customer relationships and long-term client engagements. Building New Customer Base: Focus on acquiring new customers and building long-term partnerships. Segment Penetration: Explore and enter new industry segments to tap into additional business opportunities and reduce reliance on existing alliance.
05. Regulatory and Compliance	Frequent changes in government regulations, taxes, or environmental norms may increase operational costs or cause project delays.	Regulatory Monitoring: Dedicated team monitors regulatory developments for minimise consequences. Compliance Systems: Robust internal compliance systems ensure timely adherence to legal and statutory norms.
06. Labour and Workforce Issues	Availability of skilled labour, labour unrest, or high attrition can disrupt project execution.	Training & Retention Programs: Investing in workforce training and welfare. Local Hiring: Engaging local labour to reduce dependency and maintain site continuity.
07. Technological Disruption	Rapid advancements in technology may render current	Technology Upgradation: Continuous investment in modern

07. Human Capital and Site Operations

Hybrid Workforce Architecture

The company treats its human capital as a core operational asset necessary to execute large-scale, distributed engineering projects. The organizational workflow uses a dual staffing structure:

Permanent Institutional Personnel: A core team of full-time engineering, design, project management, and compliance specialists manages quality control, layout design, and client relations across corporate locations.

Flexible Contractual Sourcing: To maintain cost efficiency across shifting project timelines, the company utilizes a large contractual workforce. Long-standing partnerships with specialized manpower suppliers across key states like West Bengal, Rajasthan, Jharkhand, and Gujarat ensure rapid site mobilization and flexible workforce allocation.

Operational Quality Control and Safety Metrics

Every active infrastructure deployment site has dedicated engineering oversight, secure storage yards, and customized internal control systems. This structure guarantees prompt bottleneck identification, minimizes material waste, and maintains structural integrity during high-voltage equipment commissioning. Industrial relations across all national project sites remained completely stable throughout the year, with zero reported labor friction or work stoppages.

08. Standalone Financial Performance

No	Name of the Ratio	Numerator	Denominator	FY 2025-26	FY 2024-25	% Variance
1.	Current Ratio (in times)	Current Assets	Current Liabilities	1.02	1.05	-3%
2.	Debt - Equity Ratio (in times)	Total Debt	Shareholders Equity	0.81	0.48	68%
3.	Return on Equity (in %)	Net Profits after taxes	Average Shareholders Equity	0.57	0.48	21%
4.	Inventory Turnover Ratio (in times)	Revenue	Average Inventory	80.11	33.61	138%
5.	Net Capital Turnover Ratio (in times)	Revenue	Working Capital	75.16	31.49	139%

6.	Net Profit Ratio (in %)	Net Profit	Revenue	0.10	0.09	11%
7.	Return on Capital Employed (in %)	Earnings before interest and taxes	Capital Employed	0.35	0.28	24%

Inventory Turnover Ratio (+138%)

Indicates aggressive lean inventory management. Minimises holding costs and reduces the risk of obsolete stock.

Net Capital Turnover Ratio (+139%)

Demonstrates intensive and highly efficient utilization of working capital to generate revenue. Reflects tight operational control over current assets and liabilities.

Return on Equity (ROE) (+21%)

Driven primarily by higher operational swiftness and increased structural leverage.

Return on Capital Employed (ROCE) (+24%)

Confirms that new capital investments are highly accretive to core operations. Exceeds typical cost of capital, proving strong underlying business profitability.

Net Profit Ratio (+11%)

Indicates that top-line volume growth, rather than massive margin expansion, drove the higher returns.

Debt-Equity Ratio (+68%)

Reveals a deliberate management shift toward debt-funded expansion. Elevates fixed interest obligations and financial risk during market downturns.

Strategic Review of Trade Receivables

A sophisticated analysis of the companys trade receivables highlights an exceptionally strong closing momentum for the fiscal year rather than a systemic slowdown in credit management. While traditional metrics show an expansion in Debtors Days, this shift is entirely driven by a massive surge in business during March 2026. Specifically, approximately 48% of the entire years total sales were billed on the basis of supply and execution in the final month of March 2026 alone. This heavy concentration of revenue at the very end of the period reflects highly successful sales execution.

Because nearly half of the annual business was successfully delivered in the closing weeks of the financial year, these substantial balances were contractually outstanding and recognized as accounts receivable at the close of books on 31st March 2026. This late-year revenue spike naturally expands the year-end trade receivables balance, creating a temporary, purely optical inflation of Debtors Days. In reality, this represents a pipeline of high-quality, newly minted

credit sales that are simply waiting to mature according to standard commercial terms, rather than an accumulation of overdue or non-performing accounts.

This strong billing performance in March also provides essential context for the companys lean Current Ratio of 1.02 times. Rather than reflecting a structural shortage of working capital, this ratio demonstrates that a significant portion of current assets is strategically stored in short-term customer receivables that will rapidly convert into cash liquidity in the opening weeks of FY 2026-27. This backend-loaded sales model effectively guarantees an explosive influx of operational cash flow at the start of the new financial year. By capturing this massive volume of business, management has successfully positioned the company for a highly liquid and strongly funded kickoff to the upcoming quarters, proving that the underlying operational engine is running at peak capacity.

09. Forward Outlook and Guidance

Near-Term Scalability Execution Target

Following its landmark consolidated performance in FY26, the company enters the next fiscal year with strong momentum. Management has issued clear operational guidance, targeting a revenue threshold exceeding 900 crore for FY26-27. This near-term growth is supported by an active order book, faster transmission project handovers, and stable order execution cycles across its primary utility partners.

Long-Term Strategic Goals (Vision 2030-2032)

Equipment Revenue Scaling: The company aims to scale its transformer and specialized power equipment manufacturing business to 400-600 crore by fiscal year 2030, establishing it as a key revenue engine alongside traditional EPC operation.

Integrated Power Equipment Horizon: By FY32, the company plans to expand its integrated power equipment division to target a revenue range of 1,000-1,200 crore. This strategy aims to sustain steady long-term PAT margins of 9% to 10%, delivering durable value for stakeholders and supporting the clean energy transition across the Indian power grid.

TRANSFORMER DIVISION: KEY STRATEGIC INITIATIVES

Setting up a world-class 220kV class power transformer manufacturing unit on 14 acres of land in the Vadodara district of Gujarat represents a highly strategic and commercially viable venture to be expanded up to 400kV.

High-Growth Product Expansion (Solar & BESS)

? Wide Capacity Range: Engineering solar inverter duty transformers from 500 kVA up to 20 MVA to serve diverse project sizes.

? BESS-Specific Design: Developing customized, sector-specific ratings optimized for unique battery energy storage duty cycles.

? Grid Stabilization: Positioning products to capture high-margin demand driven by global renewable energy integration.

Manufacturing Capacity Scaling

High-Voltage Capability: Upgrading facility footprints to manufacture large-scale power transformers up to the 220kV class. 200 MVA Output: Enabling production of units up to 200 MVA to access utility-scale electrical grid market. Revenue Diversification: Moving up the value chain from commercial suppliers to critical infrastructure partners.

By order of the Board of Directors For Viviana Power Tech Limited Sd/- Nikesh Kishorchandra Choksi Managing Director DIN 07762121

Place: Vadodara Date: 03.09.2026