Prostarm cuts margin guidance, delays Jhajjar battery plant
The company narrowed FY27 EBITDA guidance to 12-13% and pushed its flagship energy-storage project into the next fiscal year.
— 4 earlier stories on Prostarm Info Systems Ltd. →What's new
- EBITDA margin guidance cut to 12-13% from 12-15% citing supply chain disruptions and project mix.
- 1.2 GWh Jhajjar battery plant commissioning delayed to end-Q1 FY27 from Q4 FY26.
- First-year capacity utilization expectation lowered to 25-40% from 40-50%.
Why this matters
The margin cut and project delay are a one-two punch. The tighter band signals the 12% floor is now the base expectation, not the midpoint. Delaying Jhajjar pushes Prostarm's energy-storage story deeper into a year where profitability is already shrinking.
What we're watching
- Whether the ₹1,202 cr order book converts into the guided ₹430-450 cr FY27 revenue base.
- Progress on the West Asia-linked ₹68 cr in deferred orders.
- Q1 FY27 receivables and working capital trend after the Q4 spike to ₹254 cr.
The full read
Prostarm Info Systems just tightened its own outlook. It cut FY27 EBITDA margin guidance to 12-13% from 12-15%, delayed the 1.2 GWh Jhajjar battery plant to end-Q1 FY27, and sliced first-year utilization estimates to 25-40% from 40-50%. The revenue growth target of at least 25% on a ₹430-450 crore base survived, underpinned by a ₹1,202 crore order book. But Q4 execution revealed fragility. ₹68 crore in West Asian orders got deferred, and receivables spiked to ₹254 crore. The Jhajjar delay is the most consequential move. It pushes the company's big bet on battery storage deeper into a fiscal year where margins are already shrinking.
Questions answered
- What did Prostarm change in its FY27 guidance?
- It narrowed EBITDA margin guidance to 12-13% from 12-15%, citing supply-chain issues and project mix. Revenue growth guidance of at least 25% on a base of ₹430-450 crore was maintained.
- Why was the Jhajjar battery plant delayed?
- The company did not give a specific reason in the available summary. It pushed commissioning of the 1.2 GWh facility to end-Q1 FY27 from the original Q4 FY26 target.
- What happened in Q4 execution?
- West Asia geopolitical disruptions caused ₹68 crore in order deferrals. This, along with other factors, pushed the receivables balance to ₹254 crore, a working-capital spike.
- How is the order book versus the revenue target?
- The ₹1,202 crore order book is a strong base for the guided ₹430-450 crore FY27 revenue, representing roughly 2.7x-2.8x the target. Management said the revenue path is 'visible'.
Prostarm Info Systems Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on PROSTARM →- 25 May 2026 · 3:46 PM IST Prostarm cuts margin guidance, delays Jhajjar battery plant
- 13d ago Prostarm delays battery plant launch again, now aims for Sep 2026
- 42d ago Prostarm relocates servo stabilizer, lithium battery units
- 67d ago Prostarm reports FY26 standalone profit of ₹34.74 cr
- 67d ago Prostarm Info Systems reports 14% profit growth for FY26