Electrovaya: ‘Underlying Business’ is profitable despite missing earnings projection
Trending
Electrovaya's third quarter revenue was not what company officials expected, but Dr. Raj DasGupta, Electrovaya's CEO, is still bullish on his company's future.
Electrovaya reported fiscal third-quarter 2026 revenue of $17.7 million, missing Wall Street estimates by over $3 million and prompting a lowered full-year revenue outlook to between $70 million and $73 million. The news drove stock prices down in the wake of Tuesday's announcement. But DasGupta said developments The Post-Journal has reported on recently, including a long-term commercial agreement with Amazon and launch of Electrovaya's new ElvaPulse batteries into the data center energy storage market will drive continued growth.
And, DasGupta is still trumpeting the Ellicott factory being fully operational sometime in the second quarter of 2027.
"On closing, let me end where I started," DasGupta said near the end of his opening remarks of Tuesday's conference call with investor analysts. "I would characterize this as a strategic inflection quarter. Third quarter revenue was not what we wanted, and we are not going to dress that up. But what moved on us was timing, not lost business, and that revenue remains committed. Meanwhile, in the span of a few weeks, the developments that define this company’s trajectory are all advanced. We signed a long-term commercial agreement with Amazon, already our largest customer. We launched the ElvaPulse into the fastest-growing power market in the world. We moved Jamestown to the cusp of production, and we posted the best gross margin in our history while staying profitable."
The $5 million in missed revenue comes from a high-voltage battery system that was to be delivered in 2026 that has now been shifted back into the first quarter of 2027 because of supply chain issues. There have also been delays with some material handling projects that affected third quarter orders and delivery that DasGupta said will have some impact on the fourth quarter financial results.
"Importantly, these are timing shifts, not lost business," DasGupta said.
While the company's missed revenue targets disappointed investors, the company showed continued growth, including in third-quarter revenues. The company's $17.7 third quarter revenue was 3% higher than third quarter revenue received in 2025, while revenue for the nine months ending June 30, 2026, was $51.3 million, compared to $43.3 million in the same time period of 2025, an increase of 18%.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is a metric used to measure a company’s overall financial performance and core operational profitability by removing the effects of financing decisions, accounting policies, and tax environments. Electrovaya's EBITDA for the third quarter of 2026 was a company-record $3.7 million, compared to $2.9 million in the third quarter or 2025, an increase of 27%. Adjusted EBITDA represented 20.7% of revenue, exceeding 20% for the first time. Adjusted EBITDA for the nine-month period was approximately $8.5 million, compared to $5.4 million in the prior-year period, an increase of 56%.
"Despite the lower-than-expected sales, the company maintained the solid margins and profitability during the quarter," said John Gibson, Electrovaya CFO and company secretary.
Net profit for the third quarter of 2026 was $300,000, compared to $900,000 in the same period of 2025, company officials said the quarter represents Electrovaya's sixth consecutive quarter of net profitability and positive earnings per share. Net profit for the nine months ended June 30, 2026 was $2.4 million, compared to $1.3 million in the prior-year period, an increase of 80%.
"What did not change during the quarter was the quality and profitability of the underlying business," DasGupta said. "We remain profitable as we have every quarter of the fiscal year, and we believe that the combination of record gross margins and record adjusted EBITDA demonstrates the increasing earnings power of the business, which is still at its relative infancy."