Prostarm Info Systems To Commence Operations At 1.2 GWh BESS And UPS Facilities From September 25

Market snapshot: Prostarm Info Systems has announced that it will commence commercial operations at its newly expanded manufacturing facilities starting September 25, 2026. This includes the highly anticipated 1.2 GWh Battery Energy Storage System (BESS) facility in Jhajjar, Haryana, along with new power backup plants in Gujarat and Maharashtra. The launch marks the completion of key trial runs and solidifies the company's transition to an in-house manufacturing powerhouse.

Data Snapshot

• Prostarm will commence commercial operations across three newly set up and realigned manufacturing facilities on September 25, 2026.
• The company secured a new purchase order from Rayzon Energy Private Limited worth ₹3.67 crore for the supply and installation of UPS systems.
• The Jhajjar BESS manufacturing plant has a total planned capex of ₹25 crore.

What's Changed

• Prior Timeline Postponed: The commissioning of the Jhajjar BESS and Bakrol UPS facilities, previously expected by end-FY26, was delayed to late September 2026 due to supply chain and geopolitical factors.
• Manufacturing Transition: The startup marks a shift from third-party sourcing and trial runs to scaled in-house manufacturing for BESS, UPS, and Lithium Batteries.

Key Takeaways

• Simultaneous Facility Startup: Operations will begin across three verticals: 1.2 GWh BESS in Jhajjar, UPS and Lithium Battery in Bakrol, and Servo Stabilizers in Mahape.
• Realignment Strategy Executed: This marks the full transition following the June 2026 realignment, which moved lithium batteries to Gujarat and stabilizers to Navi Mumbai.
• Order Book Support: A new ₹3.67 crore order from Rayzon Energy for 2,900 kVA UPS systems provides immediate load for the new facilities.

SAHI Perspective

The commencement of operations at the 1.2 GWh BESS and realigned manufacturing plants is a pivotal moment for Prostarm. The transition from trading and third-party assembly to robust in-house production will significantly enhance operating margins, particularly at the Jhajjar plant where EBITDA margins are expected to stabilize at around 14% to 15%. However, management's cautious near-term utilization forecast of 20% to 25% for FY27 suggests that the financial impact of these expansions will be gradual as the company builds its C&I customer base.

Market Implications

The scaling up of local BESS and Lithium-ion battery manufacturing capacity positions Prostarm as a strong domestic player in India's renewable energy and power backup infrastructure sectors. This comes at a time when grid stability and clean energy adoption are seeing unprecedented policy support. Enhanced capacity will allow the company to execute larger engineering, procurement, and construction (EPC) orders more rapidly, bolstering its competitive edge.

Trading Signals

Market Bias: Bullish

The commencement of operations at the 1.2 GWh BESS facility and the newly won ₹3.67 crore order from Rayzon Energy provide strong near-to-medium term growth visibility, supported by expected EBITDA margins of 14% to 15% at the Jhajjar plant.

Overweight: Energy Storage, Power Electronics, Industrial Capital Goods

Trigger Factors:

• Actual commercial dispatch volume from Jhajjar and Bakrol starting late September 2026.
• EBITDA margin performance in Q2 and Q3 FY27 to verify the expected 14% to 15% range.
• New order inflows in the BESS and C&I segments.

Time Horizon: Medium-term (3-12 months)

Industry Context

The Indian Energy Storage market is experiencing high-growth momentum, heavily driven by renewable energy targets and industrial demand for uninterrupted power. Prostarm’s entry as an OEM for Battery Energy Storage Systems (BESS) addresses a crucial supply chain gap. By focusing on High-Margin Commercial & Industrial (C&I) clients rather than lower-margin public utilities, the company aims to avoid the sector-wide margin erosion seen in larger utility projects.

Key Risks to Watch

• Low Initial Capacity Utilization: Management has projected a conservative capacity utilization of 20% to 25% for the Jhajjar plant in FY27, which could keep fixed overhead costs elevated in the near term.
• Raw Material Supply Chains: Dependence on imported battery cells exposes the company to global geopolitical tensions and supply chain bottlenecks, which have previously caused timeline delays.
• Execution Bottlenecks: Scaled integration of BESS solutions is highly complex and depends on timely developer site preparation.

Recent Developments

On September 22, 2026, Prostarm Info Systems secured a ₹3.67 crore order from Rayzon Energy Private Limited for 2,900 kVA of UPS systems. Earlier in June 2026, the company strategically realigned its footprint, shifting stabilizer manufacturing to Mahape and lithium battery assembly to Bakrol to streamline its resources ahead of this launch.

Closing Insight

As Prostarm moves from plant readiness to active production, the transition to in-house manufacturing serves as a structural catalyst for profitability. Success will depend on the speed of scaling up capacity utilization and converting its deep solar and power-backup relationships into steady BESS contracts.

High Performance Trading with SAHI.