Schneider Electric Infrastructure Q3 FY26 Earnings Call Transcript Released

Schneider Electric Infrastructure Limited has released the transcript of its earnings conference call held on February 13, 2026. The call discussed the Unaudited Financial Results for the third quarter and the nine months ended December 31, 2025. The management, including MD & CEO Mr. Udai Singh and CFO Mr. Omkar Prasad, highlighted the company's vision to lead the digitalized energy world through innovative products and solutions. They emphasized a balanced business model, superior quality, and an efficient supply chain for resilient and sustainable growth. The company's mission is to be an energy technology partner, electrifying, automating, and digitalizing industries, businesses, and homes to drive efficiency and sustainability.

The management discussed the company's participation in key industry events like SWICON, IFFCI, and EU Chambers, showcasing thought leadership. They also highlighted a successful project in Patna for digitalizing the city and maximizing DISCOM uptime.

Regarding market outlook, the company noted the government's push for growth despite global uncertainties, with projected GDP growth of 6.8% to 7.2% and increased capex of INR 11 lakh crores for the current year and INR 12.2 lakh crores for the next. Initiatives like repo rate cuts, tax reliefs, and GST rationalization are expected to boost domestic demand. Investments in emerging segments like data centers (INR 20,000 crores), semiconductors (INR 15,000-18,000 crores), and renewables (INR 1.7-2 lakh crores) were also mentioned, alongside the PLI scheme supporting manufacturing.

Key growth drivers identified include energy transition, AI and digitalization, urbanization, and manufacturing resilience. The company anticipates significant growth in renewables (target 500 GW), EV penetration (30%), and data centers (4x growth in IT commission load to 7-8 GW in five years). Urbanization is expected to reach 41% by 2030, with investments in high-speed rail corridors and freight corridors.

Schneider Electric Infrastructure reported strong wins in the quarter, including an end-to-end solution for a data center, significant orders for transformers in the solar segment, and a major order from a semiconductor manufacturer. Wins in core segments like metals, mining, minerals, mobility, and Power & Grid utilities were also noted, along with a 765 kV modernization and digitalization project and a SCADA system for a metro network.

The company also detailed its CSR initiatives focusing on skill development, community electrification with solar power, and providing portable lighting solutions to underprivileged families. They received the FICCI FE Green Sarathi Award. Sustainable manufacturing practices were highlighted, including reducing water consumption by 30%, installing 1 MW solar capacity at Vadodara plants, and implementing zero liquid discharge. Safety measures, including AI detection systems, were also emphasized.

The company announced the launch of GMSeT, a fully India-made, modular, and digital gas-based primary distribution equipment designed for safety, reliability, and predictive maintenance. End markets include Power & Grid, transportation, buildings, and data centers.

Financially, the company crossed INR 1,000 crores in a single quarter for the first time, with a strong order backlog growth of over 50% to INR 1,700 crores. For the nine months ended December 31, 2025, order booking grew by 37% to INR 2,657 crores, and sales grew by 12.3% to INR 2,300 crores. Profitability before exceptional items for nine months was INR 281 crores (8.2% YoY growth), and for the quarter, it was INR 155 crores (around 15% YoY growth). An exceptional item of INR 25 crores was recorded due to gratuity impact from labor code changes. Last year's results included an income from the reversal of provisions related to direct tax litigation under the Vivad se Vishwas Scheme.

During the Q&A, the management discussed the strong order pipeline, the unique application of GMSeT, margin mix impacting gross margins, and strategies to hedge against commodity cost inflation. The data center opportunity was estimated to contribute around 10% of order inflows. The company is at an inflection point due to drivers like energy transition, digitalization, and manufacturing growth. Dividend policy was mentioned as being under consideration by the Board. Capex plans will be announced publicly as per SEBI regulations. The company is hopeful for more stable and predictable order inflows and is focused on profitable growth while mitigating raw material risks and geopolitical volatilities. Exports currently stand at 11-12% for the nine-month period.