Electrovaya Inc.

Electrovaya reported Q3 revenue of $17.7 million, up from $17.1 million a year ago. Gross margin was 34.9%, up 410 basis points from 30.8% last year. Operating profit was $0.8 million vs. $1.9 million last year, net profit was $0.3 million vs. $0.9 million, and adjusted EBITDA was $3.7 million vs. $2.9 million, with adjusted EBITDA margin at 20.7%. For the first nine months, revenue was $51.3 million vs. $43.3 million, gross margin was 33.8% vs. 30.8%, operating profit was $4.3 million vs. $3.2 million, net profit was $2.4 million vs. $1.3 million, and adjusted EBITDA was $8.5 million vs. $5.4 million. The company now expects full-year normalized revenue of approximately $70 million to $73 million, and said about $5 million of deferred high-voltage revenue plus some delayed material handling activity should be recognized early in fiscal 2027.

Raj Das Gupta called the quarter a “strategic inflection quarter,” stressing that the weaker revenue was about timing, not lost business. He highlighted three major advances: the Amazon agreement, the launch of ElvaPulse, and Jamestown nearing production, while emphasizing that the company posted its best gross margin in history and stayed profitable. His tone was confident and forward-looking, with repeated focus on 2027 and 2028 as the years when new capacity and new products begin to scale.

John Gibson emphasized the financial strength underneath the softer top line, citing 34.9% gross margin, 20.7% adjusted EBITDA margin, $3.7 million of adjusted EBITDA, and six straight quarters of net profit and positive EPS. He said higher margins were helped by product mix, including defense and prototype shipments, but also by better purchasing power, supplier pricing, and floor efficiency. He also noted positive operating cash flow of $8.6 million for the quarter, $13.1 million of unrestricted cash, more than $7.8 million available under the bank facility, and total debt of $38.3 million, while saying the company had adequate liquidity for expansion.

Analysts focused on the ElvaPulse pipeline, Jamestown timing, 2027 material handling demand, 800-volt shipment delays, and the Amazon warrant accounting. Management said ElvaPulse opportunities are substantial, that even one data center could absorb full production, and that certification is underway with deliveries targeted for calendar Q2 2027. On the Amazon accounting question, management said the initial warrant tranche will be amortized over 7 to 10 years, while the 100 revenue-related tranches will vest against $2.8 million revenue milestones, with final Black-Scholes inputs to be included in Q4 financials.