Advait Energy Transitions Limited

Industrials — Specialty Industrial Machinery · NSE

₹1,865.00−₹19.40 (−1.03%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Advait Energy Transitions Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Advait Energy Transitions Limited provides products and solutions for power transmission, substation, and telecommunication infrastructure sectors in India and internationally. It operates through the Power Transimission Service, and New and Renewable Energy segments.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees235

Annual revenue₹714 Cr

How does it make money?

Turns over ₹714 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 235 employees supports ₹3.04 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.04 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 26.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.6% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +599% while net margin moved -12% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+599%

Margin effect-12%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

• P/E of 34.8x already prices in growth
✗ P/B of 7.34x is a steep premium to book

Quality vs. Valuation

Company Quality

65/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

66/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

34.8x

Sector Median

66.2x

median of 4 sector peers

🟢Against its sector it trades 47% below the peer median of 66.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

66.2x median of 4 peers · -47%

vs. generic bands

Fair

15x–35x

EV/EBITDA

24.7x

PEG

0.42

What's Good / What's Bad

🟢 What's Going Well3

Return on capital is rising
ROCE has improved from 22.7% to 26.6%.
High return on capital employed
ROCE of 26.6% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 744% over 3 years, from ₹15 Cr to ₹128 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹122 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 4.8 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 47% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 16.9% to 12.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 68% a year✓ 91.2% CAGR
Latest reported year was 51.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 12.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹122 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 24%✓ 26.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹2,040 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

34.8x

Fair

Fairly valued against the generic band

P/B Ratio

7.34x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹53.63

Profitable

Profitable on a per-share basis

ROE

18.6%

Strong

Strong capital efficiency

ROCE

26.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.44x

Low

Conservative leverage

Revenue Growth (YoY)

51.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

50.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.11%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹122 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

13.3%

Average

Average margins

Net Margin

7.4%

Average

Average bottom-line conversion

Current Ratio

1.32

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.49

Defensive

Steadier than the market

52W Range Position

45%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1915.2 / 2036.4

Bearish alignment (short < long)

RSI (14)

45.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹102 Cr	₹207 Cr	₹398 Cr	₹714 Cr	+91.2%
EBITDA	₹17 Cr	₹38 Cr	₹53 Cr	₹87 Cr	+71.2%
EBITDA Margin	16.9%	18.1%	13.4%	12.1%	—
PAT (Net Profit)	₹8 Cr	₹22 Cr	₹31 Cr	₹52 Cr	+83.0%
EPS	₹13.16	₹21.45	₹28.8	₹47.36	+53.2%
ROE	18.4%	29.8%	15.3%	18.6%	—
ROCE	22.7%	37.6%	20.3%	26.6%	—
Total Debt	₹15 Cr	₹59 Cr	₹71 Cr	₹128 Cr	+103.6%
Free Cash Flow	₹5 Cr	-₹19 Cr	₹39 Cr	-₹122 Cr	—

🟢 Revenue has grown at 91.2% a year over 3 years.

🟢 EBITDA has grown at 71.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 16.9% to 12.1% over 3 years (-4.8 pts).

🟢 PAT (Net Profit) has grown at 83.0% a year over 3 years.

🟢 EPS has grown at 53.2% a year over 3 years.

🟡 ROE has held roughly flat at 18.6% over 3 years.

🟢 ROCE has risen from 22.7% to 26.6% over 3 years (+3.9 pts).

🔴 Total Debt has grown at 103.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹5 Cr to -₹122 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹667 Cr

Total Liabilities

₹376 Cr

Cash & Equivalents

₹25 Cr

Operating Cash Flow

-₹10 Cr

Capex

-₹113 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.1%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

11 Sept 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive3 mixed2 general

Advait Energy Transitions Insiders Made A Wise Decision By Selling ₹167m Worth Of Stock

Simply Wall Street, 26 May

Advait Energy Transitions wins ₹75.56 Cr PGVCL order

scanx.trade, 04 Oct

Advait Energy Transitions Share Price Rises On Order Win

NDTV Profit, 10 JulOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Newly listed Advait Energy Transitions shares gain 3% on bagging EPC work order worth ₹160 crore; all you need to know

Upstox, 18 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

When Is the Advait Energy Transitions Q2 Results FY27 Date?

Univest, 08 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Advait Energy Transitions shares gain 2% on signing battery storage project in Gujarat

Moneycontrol.com, 03 JunPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Profitability

MiddlingFinancial Health · Growth

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑