Vivid Electromech (VIVIDEL) Q2 FY27 Revenue Plunges 29% Sequentially as Execution Slows
The electrical panel maker saw a sharp sequential drop in revenue and profit, with margins contracting as execution slowed ahead of a key capacity addition.
Vivid Electromech's Q2 FY27 revenue fell 29% from the prior quarter, with profit down 41%. The drop reflects slower project execution and a margin squeeze, even as a large order book and new plant promise a rebound.
For Vivid Electromech, a manufacturer riding India's data centre and industrial electrification wave, the September quarter was a pause. After a strong finish to FY26, execution slowed, pulling revenue and profit down sharply from the prior quarter and squeezing margins.
The company reported revenue of ₹91.53 crore for Q2 FY27, a 29.4% drop from ₹129.57 crore in Q4 FY26. Profit fell even more sharply, down 41% to ₹13.08 crore. The net profit margin compressed to 14.3%, from 17.1% in the previous quarter.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Margin (%)
| Metric | CurrentQ2 FY27 |
|---|---|
| Period | Quarter ended September 2026 |
| Revenue (₹ Cr) | 91.53 |
| Profit (₹ Cr) | 13.08 |
| Net Margin (%) | 14.3 |
Why the quarter slowed
The sequential decline is largely a story of execution timing. The company's business is project-based, with revenue recognised as work progresses. Research from Newboard.in notes that about 65% of FY26 revenue came in the second half, a pattern that set a high base for the March 2026 quarter. The subsequent slowdown in Q2 suggests a lull in project completions and billings.
Margin pressure compounded the top-line weakness. Profit fell faster than revenue, pulling the net margin down by 280 basis points. This points to a mix of fixed costs weighing on lower revenue and potential pressure from input costs like copper and steel, which are key materials for electrical panels.
The bridge to the next upswing
The immediate outlook hinges on two factors: a large order book and a new factory. Flash Finance reported an executable order book of ₹210 crore as of June 2026, representing over a year's worth of revenue. In August, the company announced new orders worth ₹52.81 crore, according to ALFA News.
Crucially, a major capacity expansion is nearing completion. The new Ambernath plant, which will nearly triple production capacity, was expected to start by end-October 2026, as per the company's September investor presentation cited by Newboard.in. This plant is critical to fulfilling the robust order pipeline, especially from the data centre segment, which contributed half of FY26 revenue.
The working capital weight
A persistent challenge is cash conversion. The annual report showed trade receivables of ₹116.5 crore at March 2026—more than half of that year's revenue. The company expects most of this to be collected in the first half of FY27. High receivable days, which rose to 212 in FY26 according to Intelsense, tie up capital and heighten the need for careful working capital management as the company scales.
Key Points
- Revenue fell 29.4% quarter-on-quarter to ₹91.53 crore, reflecting a slowdown in project execution after a strong Q4.
- Profit declined 41% to ₹13.08 crore, with net profit margin compressing to 14.3% from 17.1%.
- A strong executable order book of over ₹210 crore and the imminent commissioning of the Ambernath plant provide clear visibility for a revenue rebound.
- High receivables and customer concentration remain key execution and financial risks to monitor.
Hexa Perspective
This quarter is a reminder of the lumpy, project-driven nature of Vivid's business. The sharp sequential drop is less alarming than it appears, cushioned by a substantial order book that promises a swift recovery once execution ramps up with new capacity.
The real test is operational. The new plant must come online smoothly to convert orders into revenue and relieve the strain of high capacity utilisation at existing units. For the full-year target of 35-40% growth to hold, collections must improve to fund the growth without over-leveraging the balance sheet. Investors are weighing the powerful sector tailwinds against these execution and working capital hurdles.
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