Laser Power & Infra Has ₹2,788 Cr Order Book Split Between Manufacturing & EPC: How Strong Is Revenue Visibility?
The shares of this small cap company majorly engaged in manufacturing of power cables, conductors and other specialised products and components, were in focus after having a strong order pipeline and balanced business mix.
With the market capitalization of Rs. 3,875 Crores, the shares of Laser Power & Infra Ltd were trading at around Rs. 276 per share which is 20 percent discount from its 52 week high of Rs. 344 per share and is trading at a P/E of 35.3 whereas industry P/E stands at 28.7
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Order Book Provides Revenue Visibility
Laser Power & Infra began FY27 with a robust backlog of ₹2,784.4 crore for the first quarter of FY27. The backlog has an almost equal split of manufacturing and EPC backlogs, standing at ₹1,432.7 crore and ₹1,355.7 crore, respectively. This ensures that the company is exposed to both product supply and project execution.
Manufacturing Orders Have Expanded Sharply
There has been a marked rise in the order books of the manufacturing division in the last three financial years. The figures are ₹543.8 crore for FY24, ₹849.3 crore for FY25, and ₹1,668.9 crore for FY26. Order inflows in the manufacturing division have also risen from ₹1,354.3 crore for FY24 to ₹2,123.2 crore for FY26.
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EPC Adds Another Layer of Visibility
The EPC business had an order backlog of ₹1,355.7 crore in Q1 FY27. The company has completed more than 43 EPC projects and has 34 EPC projects underway, thus creating a solid base of execution for itself. The combination of manufacturing and EPC orders enables Laser Power & Infra to be involved in various stages of power transmission and distribution projects.
Q1 FY27 Shows Better Profitability
Along with the strong backlog order book, there has been good execution in Q1 as well. The company has seen a revenue growth of 14.8% y-o-y to ₹521.5 crore and EBITDA growth of 25.7% to ₹65.9 crore. EBITDA margins have been at 12.6%, which is better than the 11.5% EBITDA margin in Q1 FY26. PAT has grown 28.8% to ₹21.1 crore.
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Execution and Working Capital Remain Important
Although the order book offers visibility, its conversion to income and cash generation will still be crucial. The firm’s working capital grew to ₹1,020.7 crore in FY26 from ₹619.1 crore in FY25, whereas working capital days jumped to 129 from 77. Thus, the speed of project execution, billing, and cash collection will be vital to monitor in relation to its backlog.
HTLS Partnership Adds a New Capability
Laser Power & Infra has also engaged in a strategic manufacturing alliance with TS Conductor Corp., where it acts as a licensed stranding partner for state-of-the-art conductors, such as HTLS conductors. The company emphasized its first commercial HTLS reconductoring job in Q1 FY27, making it a new addition to its already existing product range of cables, conductors, and EPC.
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Conclusion:
Overall, the order book of Laser Power & Infra serves as a good platform for revenue visibility, aided by a proper balance between manufacturing and EPC. Even in the Q1 of FY27, the company saw better growth in EBITDA and PAT than revenues. Nonetheless, investors would need to keep track of order execution, cash conversion, and working capital needs. The HTLS tie-up and reconductoring order provide yet another specialized offering for the company.