Parth Electricals & Engineering Ltd. (PARTH)
SME CapPower stocks · SME cap · NSE
Parth Electricals & Engineering Ltd. is a manufacturer and service provider in the Electrical Power Transmission & Distribution sector, with in-house R&D and design capabilities. It offers RMUs, MV Panels, Compact Substations, and specialized installation, testing, and commissioning services for substations and power cables.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 30/100YoY data unavailable — classification deferred
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹118 Cr | NDF | +47.5% |
| EBITDA | ₹11 Cr | +22.2% | +10.0% |
| Operating margin | 9.0% | +100 bps | -300 bps |
| PAT | ₹8 Cr | NDF | +33.3% |
| PAT margin | 6.8% | +107 bps | -72 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
FY26 Revenue grew 14% YoY to INR 200.95 Cr, EBITDA rose 19% to INR 20.85 Cr, and PAT surged 41% to INR 14.24 Cr. Post-IPO, Debt/Equity sharply reduced to 0.15x, but ROE and ROCE diluted due to the expanded equity base.
While PARTH delivered strong top-line and bottom-line growth in FY26 and significantly deleveraged its balance sheet post-IPO, the dilution in ROE and ROCE, coupled with negative operating cash flow, raises concerns about capital efficiency and cash conversion. Management acknowledges these areas for improvement.
Order Book by Vertical
Latest issuer-disclosed distribution across 3 reported categories.
Government Policies
GoI initiatives like the Revamped Distribution Sector Scheme (RDSS) and the National Electricity Plan envisage T&D capex of INR 9.16 lakh Cr through 2032.
Sharp Increase in Peak Power Demand
CEA estimates projected peak demand for FY30 to reach 335 GW, 60% higher than FY’23.
Evolution of Demand to RMUs & CSS
End-use industries are installing Ring Main Units (RMUs) as secondary distribution sources for reliable power supply, with gas insulated segments anticipated for fastest growth.
Boom in Data Centres
India's data center demand is expected to surge from 1.2 GW in 2024 to 4.5 GW by 2030, a structural tailwind for electrical equipment.
GIS Plant, Karachiya, Vadodara (Unit-2)
Construction of new GIS plant started in Sept 2025 for manufacturing 33KV, 66KV, 132KV & 220KV GIS. Total CapEx till date is INR 13.09 Cr.
Manufacturing Unit, Khordha, Odisha
Rented manufacturing facility in Odisha (temporary basis) to capitalize on opportunities in the Eastern region. Total CapEx till date is INR 1.64 Cr.
Skill Development Centre, Savli, Vadodara
Launch of Training & skill development center in May 2026. Total CapEx till date is INR 5.86 Cr.
Government Initiatives
RDSS scheme and National Electricity Plan drive T&D capex, bolstering long growth for transformers, switchgear, and EPC players.
Transition to Clean Energy
India's power sector budget increased 50% in 2024, with focus areas including green hydrogen, solar power, and green-energy corridors.
Data Centre Boom
India's data center demand is expected to surge, creating demand for MV/LV switchgear, panels, and compact substations.
Export Market Expansion
Commenced revenue generation from markets such as USA, Zambia, Nepal, and Bhutan, with successful dispatch of Intelligent MCC to USA.
Capital Efficiency Dilution
ROE and ROCE decreased in FY26 due to a significant equity infusion (INR 62.05 Cr) and higher capital employed, outpacing profit growth.
Negative Operating Cash Flow
Operating cash flow was negative INR 4.06 Cr in FY26, indicating a stretched working capital cycle and a need for better cash conversion.
Heavy CapEx Cycle Execution
The company is in a heavy CapEx cycle with new plants under construction, requiring commissioning discipline and utilization ramp-up to generate returns.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The presentation covers the annual financial year (FY26) and provides year-on-year comparisons for key financial metrics, making YoY the most relevant basis for assessing performance trends.
Net Revenue
Net Revenue (excl. other income) increased 13% YoY to INR 198.00 Cr in FY26. Total Revenue was INR 200.95 Cr (14% growth).
EBITDA
EBITDA grew 19% YoY to INR 20.85 Cr in FY26.
PAT
Profit after Tax (PAT) expanded 41% YoY to INR 14.24 Cr in FY26.
PAT Margin
PAT Margin expanded from 5.79% to 7.19% in FY26, up 140 bps.
Better Capital Utilisation
Management's focus is to lift ROCE and ROE through higher utilization and tighter asset turns.
Optimize Working Capital Cycle
Management aims to normalize inventory and improve net capital turnover without disrupting growth.
Convert Earnings to Cash
The company's next focus is to move toward stronger cash flow from operations.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| ROCE | 15.77% (FY26) | Improvement from higher utilization and tighter asset turns. |
| Operating Cash Flow | -4.06 Cr (FY26) | Positive conversion of earnings to cash. |
| Working Capital Cycle | 73 days (FY26) | Normalization of inventory and improved net capital turnover. |
| Capacity Utilization | New GIS plant and Odisha facility under buildout. | Commissioning discipline and ramp-up of utilization at new facilities. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
85Strong Bullfull bull SMA stack · SMA20 +6.1% / mo · MACD + · near 52W high
Technical chart
PARTHdaily · 1Y · AUTO+93.2%Daily technical trend read
Bullish setupTrend is constructive — long-term uptrend intact. RSI 60.
- Price > SMA20 > SMA50 > SMA200 — full bullish stack.
- SMA20 rising (~5.7% over last month) — short-term momentum positive.
- RSI(14) at 60 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 4% off 52W high · 179% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 39 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 39 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Balance sheet contributes 11/15 to the score.
- Growth contributes 16/25 to the score.
- Quality contributes 10/20 to the score.
Main drags
- Penalty bucket subtracts 1 points.
- Fair-value margin of safety is negative at -103.2%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 56th percentile of the scored universe and 64th percentile within Power. Main check: cash conversion is weak at 28/100.
Healthy Trust Lite: Promoter holding is 61.2%. Key concern: Operating cash flow is negative at ₹-4 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Power: 64th pctile, median 65 · SME: 70th pctile, median 64
5 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 61.2%.
- ▸Promoter pledge is zero.
- ▸Promoter holding increased 40.2%.
- ▸ROCE is 21%.
Trust risks
- ▸Operating cash flow is negative at ₹-4 Cr.
- ▸Only 1 years of positive FCF.
- ▸ROCE trend is -8%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 47.20
- P/B
- 6.04
- EV/EBITDA
- 29.96
- Market Cap
- 672.00Cr
Profitability
- ROE
- 18.70%
- ROCE
- 21.00%
- ROA
- 7.45%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 23.00%
- EPS 5Y
- 23.00%
- Revenue 3Y
- 45.00%
- EPS 3Y
- 80.00%
Balance Sheet
- Debt/Equity
- 0.15
- Interest Coverage
- 10.50×
- Altman Z
- 7.67
- Book Value
- 81.50
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 1/5
- OCF
- -4.00 Cr
- EPS TTM
- 10.42
Shareholding
- Promoter Hold
- 61.22%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 87%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Power, ranked by similarity
Peers
Business-comparable names in Power, ranked by similarity
Peers
Business-comparable peers in Power — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.