Schneider Electric Infrastructure Ltd.Record orders, EBIT down

Schneider Electric Infrastructure reported Q1 FY27 order intake of ₹915 Cr, its highest ever for a quarter and up 0.5% year on year, with sales up about 5% after a seasonally soft start and a backlog above ₹2,100 Cr, about 33% higher.

EBIT was ₹32 Cr, lower than a year ago, as gross margin was hit by copper, aluminium, steel and labour inflation on legacy fixed-price orders booked before December, a rupee about 8% weaker and negative operating leverage from annual salary increases. Management has started price hikes, is putting price variation clauses into contracts where tenders allow, and expects Q2 to be better than Q1 without giving numeric guidance.

Emerging segments such as data centres, semiconductors and solar are more than a fifth of the order bank, including the largest front-end semiconductor fab order it has won. The company has invested about ₹500 Cr over three years across three plants, including Kolkata, says expansion programmes are on track, and has exports at 10% to 12% of revenue.