Electrovaya NASDAQ: ELVA reported higher fiscal second-quarter revenue and profitability while cautioning that supply chain delays and macroeconomic uncertainty could affect the timing of some customer orders.
On the company’s earnings call, Chief Financial Officer John Gibson said revenue for the quarter ended March 31, 2026, rose 20% to $18 million from $15 million a year earlier. Revenue for the first six months of fiscal 2026 increased 28% to $33.6 million from $26.2 million in the prior-year period. All figures discussed on the call were in U.S. dollars.
Gibson said the company had approximately $1.4 million of finished goods at quarter-end that were waiting to be shipped because of supply chain delays. Electrovaya recognizes revenue only after units are delivered to customers.
“Despite these issues, revenue for the quarter was $18 million,” Gibson said.
Margins and Profitability Improve
Gross margin expanded to 33.4% in the quarter, up from 31.1% a year earlier. For the six-month period, gross margin was 33.2%, compared with 30.9% in the prior year. Gibson said margins continued to be driven primarily by product mix, while supplier pricing and tariffs remain areas of focus as the company scales.
Operating profit for the quarter rose 56% to $2.2 million from $1.4 million a year earlier. For the six-month period, operating profit increased 195% to $3.6 million from $1.2 million.
Net profit was $1 million for the quarter, compared with $0.8 million in the prior-year period. Six-month net profit increased to $2.1 million from $0.4 million, a 404% year-over-year increase. Gibson said the quarter represented Electrovaya’s fifth consecutive quarter of net profit and positive earnings per share.
Adjusted EBITDA increased 41% to $2.8 million in the quarter from $2 million a year earlier. For the first six months of fiscal 2026, adjusted EBITDA rose 89% to $4.8 million from $2.6 million. Adjusted EBITDA as a percentage of sales was 15.7% for the quarter and 14.3% for the six-month period.
Liquidity and Debt Position
Gibson said Electrovaya ended the quarter with $20.4 million in unrestricted cash and $7.8 million of availability under its banking facility. Net working capital was $57.8 million, compared with $26.2 million a year earlier, and the current ratio was 7.7x, compared with 3.9x.
Total debt was $21.9 million at quarter-end, compared with $13.1 million in the prior year. Gibson said the current debt balance includes both working capital debt and debt from the company’s EXIM facility, while the prior-year figure consisted only of working capital debt. Working capital debt was $12.2 million, down $0.9 million from the prior year. Electrovaya had drawn $19.8 million from the EXIM loan as of March 31 and made its first interest payment on the facility at the end of the quarter.
Gibson said the company believes it has sufficient liquidity to support expansion into new verticals and anticipated growth through fiscal 2026.
New Markets: Robotics, Defense and Ground Support
Chief Executive Officer Dr. Raj DasGupta said material handling products continue to form the foundation of Electrovaya’s revenue base, but the company is expanding into additional markets. During the quarter, Electrovaya began commercial deliveries of its latest battery systems for robotic applications and shipped products to two defense contractors.
DasGupta said the company also began shipping its latest high-voltage battery systems, with high-voltage vehicle platforms expected to become a more meaningful revenue contributor beginning in fiscal 2027.
In robotics, DasGupta said Electrovaya shipped about 300 packs during the quarter and expects that activity to continue and accelerate. He said robotics is already the company’s second-largest revenue segment after material handling, though the batteries are smaller than those used in material handling applications and require larger volumes to generate material revenue.
Asked about the applications being served, DasGupta said current deliveries are primarily for a “surveillance robot machine,” while many ongoing discussions involve autonomous material-handling devices. He said Electrovaya has two such devices validated and expected to go into production later, with additional discussions underway.
In airport ground support equipment, DasGupta said trial battery systems are operating commercially at multiple airports. However, he said the systems remain small-volume demonstration batteries, and higher fuel prices and airline capital spending constraints may push out broader order flow.
Energy Storage Becomes a Larger Strategic Focus
DasGupta said Electrovaya is pursuing energy storage products as a major development initiative, emphasizing high-power, mission-critical applications rather than two-hour or four-hour storage systems. He said the company is developing AC-coupled 1,500-volt systems and DC-coupled 800-volt architectures designed to meet UL 9540 certification standards while supporting higher power densities than conventional lithium-ion energy storage systems.
“We’re definitely aggressively pursuing this segment,” DasGupta said, adding that initial reception from potential stakeholders has been strong.
He said Electrovaya is targeting applications where safety, cycle life and high power density are priorities. The company plans to use its own energy storage systems at the Jamestown facility to improve power reliability instead of diesel generators, he said.
Gibson said financing structures for energy storage deployments may vary by customer. In the short to medium term, he expects most customers to purchase the storage units, though leasing could be considered if it becomes advantageous.
Jamestown Expansion and Technology Development
Electrovaya continues to advance its Jamestown manufacturing facility, which DasGupta described as central to the company’s plans to expand production capacity and support domestic manufacturing, particularly for future energy storage and defense-related products.
DasGupta said construction of dry rooms is underway, building floors have been reinforced and other facility upgrades are progressing on schedule. He also noted the addition of Ok-soo Han as cell manufacturing lead for Jamestown. Han previously led new cell product introduction initiatives at LG Energy Solution, according to DasGupta.
On equipment validation, DasGupta said the cell manufacturing line is being set up in Korea for an extensive factory acceptance test. A large Jamestown team is expected to run the full production line there for about six weeks beginning in late summer. Module production line testing is expected earlier in the summer, while other infrastructure equipment is already on site.
The company is also developing an ultra-fast-charging lithium-ion cell using a next-generation niobium oxide anode combined with its Infinity platform. DasGupta said prototype cells have demonstrated targeted high-rate charging capabilities and strong cycle life in in-house testing. The company is targeting customer sampling this year and commercial availability in 2027.
Electrovaya also continues to work on next-generation ceramic separators, with scaled manufacturing expansion planned at one of its Ontario facilities and production targeted to begin in 2027. Solid-state battery development has accelerated after installation of upgraded infrastructure and a new dry room, though DasGupta said it is not currently the company’s highest-priority development effort.
Management said underlying demand remains strong, but customer ordering patterns may be affected by the geopolitical environment, elevated energy prices, supply chain concerns and capital spending caution. Gibson said some orders previously anticipated in fiscal 2026 could shift into fiscal 2027, though some customers may increase demand from initial expectations.
About Electrovaya NASDAQ: ELVA
Electrovaya is a Canada-based energy storage company that designs and manufactures advanced lithium-ion battery systems and components. The company's core business revolves around the development of proprietary electrode and cell technologies that deliver high energy density, rapid charge capability and enhanced safety features. Electrovaya's product portfolio encompasses large-format battery cells, modules, complete battery packs and integrated energy storage systems tailored to industrial, commercial and utility-scale applications.
In the industrial sector, Electrovaya supplies modular battery systems for material-handling equipment such as electric forklifts, automated guided vehicles and airport ground support vehicles.
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