Hind Rectifiers, a leading player in India’s power electronics and railway traction equipment space, has had a 197% year-on-year growth in profit after tax (PAT) in the financial year ended 31 March 2025. PAT was INR 37.1 crore in FY25, up from INR 12.5 crore in FY24, due to strong operating leverage, enhanced product portfolio and execution efficiency.
For the fourth quarter (Q4FY25), PAT was nearly double at INR 10 crore, a 96% YoY growth, compared to INR 5.1 crore in the same quarter last year. This was driven by 22% growth in total income to INR 185.4 crore and 46% growth in EBITDA to INR 20.2 crore. EBITDA margin improved by 180 bps to 10.9%, due to cost efficiencies and better pricing realization.
Notably, ace investor Mukul Agrawal holds 2,50,000 shares (1.5% stake in the company) worth INR 23.5 crore.
FY25: A Record Year
The company’s total income in FY25 rose by 27% to INR 656.8 crore, from INR 518.2 crore in FY24, while EBITDA expanded 60% to INR 71.8 crore. The EBITDA margin for the year stood at 10.9%, a gain of 220 basis points over the previous fiscal.
Return on Capital Employed (ROCE) surged to 25.6% from 19.4% in FY24, while Return on Equity (ROE) more than doubled to 26.2% from 10.6%, highlighting effective asset utilization and enhanced shareholder value.
Despite a notable 59.5% quarter-on-quarter rise in interest expenses to INR 4.02 crore in Q4FY25, the company managed to sustain strong profitability—suggesting a well-leveraged balance sheet (debt-equity ratio at 1.03x) supporting strategic capital investments.
Strong Order Book and Sectoral Momentum
As of March 2025, Hind Rectifiers reported a robust order book of INR 893 crore, mainly driven by the railway sector, which contributed orders worth INR 1,014 crore during the year. This growth aligns with the Indian government’s push on infrastructure and railway electrification—an area where Hirect is a trusted vendor.
Strategic Investments and Innovation-Driven Growth
FY25 saw the company invest INR 43 crore in capital expenditure, largely directed towards backward integration and new product lines at its Sinnar and Satpur plants. These initiatives aim to enhance vertical integration, reduce dependency on external vendors, and support custom engineering solutions.
Hind Rectifiers also ventured into new-age technologies, incorporating two wholly-owned subsidiaries:
- Coincade Studios for R&D in IT, AI, and Web3.
- Hirect FZ-LLC, focused on power generation and distribution in international markets.
Notably, the company achieved successful delivery of indigenous propulsion systems for Indian Railways and HVAC systems for LHB passenger coaches. It also developed export-ready rail products meeting international standards for markets in Germany and the U.S.
The board of directors has recommended a final dividend of INR 2 per equity share for FY25 subject to shareholder approval. It has also approved an in-principle acquisition of land up to INR 50 crore to support future growth.
Conclusion
With strong fundamentals, domain expertise in power conversion systems and a pivot towards next gen solutions, Hind Rectifiers is set to ride the Indian infrastructure wave. The company’s operational metrics, growth levers and expansion into innovation areas suggest FY25 could be the foundation of a new value creation cycle for Hind Rectifiers.
“FY25 has been a year of records for Hind Rectifiers – highest ever order inflows, highest ever revenue growth and highest ever margin expansion,” said Suramya Nevatia, Managing Director & Chairman. “With focus on engineering excellence and digital integration we are confident of delivering long term value to stakeholders.”
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