Total Industry Revenue – FY 2024-25

The Indian Power Electronic  industry is estimated to have shipped products worth approximately INR 8,424.53 crore to end-users during FY 2024-25, reflecting an increment of about INR 602.31 crore over the previous fiscal. 

A significant portion of this increase estimated at over INR 250 crore is attributed to OEM and secondary sales. Given that the market is highly fragmented, with more than 150 unorganized players, determining the exact sales to end-users remains challenging. It is important to note that these secondary sales primarily consist of static inverter units supplied to OEMs and do not include batteries or direct end-user sales. 

Industry Performance: FY 2023-24 vs FY 2024-25

Revenue Growth:

The industry's revenue expanded by INR 602.31 crore, reaching nearly INR 8,424.53 crore, which translates to a year-on-year growth of 7.70%. This trend highlights an increasingly price-sensitive customer base and a  competitive landscape where larger players continue to consolidate their market position, while smaller companies often struggle to sustain margins.

Volume Growth:

On the volume side, industry sales witnessed an estimated 8.15% growth, which is marginally higher than the previous year's growth by about 0.25%.

Key Market Insights

The data suggests shrinking profit margins for smaller manufacturers. While companies with a strong focus on operational efficiency and bottom-line performance continue to thrive, a few players faced order fulfilment challenges due to component shortages, influenced by ongoing geopolitical and supply chain disruptions.

This is a clear indicator of shrinking margins for smaller players. Companies going for bottom line doing great with only a few exceptions while some companies not able to complete order due to lack of components due to geopolitical situation arising due various factors.

Three Phase Online UPS sales has picked up. Online sales account for nearly 93.5%. Contributing a significant increase in revenue. There is nearly 84% increase in sales of 5kVA to 60kVA UPSs, more growth in 3 phase UPS is visible. However sales of Line Interactive UPS remains limited to select few companies who are doing good business.

Offline & line interactive UPS show a drop in growth in 9% in volume terms and not have not been a significant contributor in revenue terms, it increasingly becoming a low margin a  high volume game. In revenue terms they contributed nearly 1.00% to the Total Industry revenue.

Rest of revenue comes for UPS companies manufacturing  SPCU, Solar inverter, small servo stabilizer, Energy storage solutions etc. which accounts to nearly 5.5 percent total industry revenue.

This does not include Inverter sold under the tag of Home UPS.

It was observed that medium & regional players making profits are leaning towards Solar Power Control Units (SPCU) which comes with more profits as compared to conventional UPSs. Remaining being sale of Servos and change of batteries not under maintenance and TPM contracts.

Exports on rise as compared to previous year. Many leading once aim at exports.