Electrovaya (NASDAQ:ELVA) executives highlighted a strong start to fiscal 2026, pointing to higher revenue, improved margins, and a fourth consecutive quarter of net profitability despite what management described as a seasonally weaker first quarter for its core material handling business.
Quarterly results and guidance
For the quarter ended December 31, 2025, Electrovaya reported revenue of $15.5 million, up from $11.1 million in the prior-year period, representing 39% year-over-year growth. Gross margin was 32.9%, up 240 basis points from 30.5% a year earlier, which CFO John Gibson attributed primarily to product mix while noting the company is focused on managing suppliers, pricing, and tariffs as it scales.
Management reaffirmed its fiscal 2026 revenue growth guidance of 30%. CEO Dr. Raj DasGupta said guidance reflects visibility from large existing customers, plus pipeline activity, with additional conservatism due to historical customer timing shifts and seasonality. He also said the company has not assumed “meaningful revenue” from the airport ground support equipment opportunity in its outlook, which he described as a potential upside driver.
Liquidity, debt, and balance sheet updates
Electrovaya reported $1.7 million of positive cash flow from operations (after working capital changes), compared with $0.3 million of cash used in operating activities a year earlier. The company ended the quarter with net working capital of $51.9 million, up from $12.6 million in the prior year, and a current ratio of 6 versus 1.6.
Total debt at quarter-end was $27.3 million, up from $15.3 million in the prior year. Gibson said working capital debt declined to $10.9 million, down $4.4 million from the prior year, driven primarily by operating cash flows. The company had drawn $16.4 million from its EXIM loan facility, with interest payments set to begin March 31, 2026 and principal payments starting March 31, 2027.
During the quarter, Electrovaya raised $28 million in gross proceeds from an equity issuance and said it has used some of the funds for engineering and R&D. At quarter-end, the company reported $22.7 million of cash on hand and $9 million of availability under its banking facility, which management said provides adequate liquidity for expansion into new verticals and expected growth.
Operational progress across core and new verticals
In material handling, DasGupta said the company’s new OEM-integrated high-voltage battery systems, developed over the last two years, are scheduled to begin commercial deliveries in March 2026, timing that he said aligns with certification. In response to an analyst question, DasGupta indicated the program includes “a couple models of batteries” across “two distinct vehicle systems,” with orders already in place for those vehicles.
Management described its material handling end-customer base as dominated by large Fortune 100 and Fortune 500 companies, with the “largest two buyers” providing demand indications used in developing the company’s annual guidance. DasGupta emphasized that existing customers remain at relatively early adoption levels, with substantial remaining addressable opportunity within their global distribution center footprints.
In robotics, DasGupta said Electrovaya initiated commercial deliveries of modular 48-volt battery systems to a robotic OEM partner in January (fiscal Q2), and told analysts that robotics deliveries were zero in fiscal Q1. He said the company is already shipping “growing numbers” of batteries to a couple of OEMs and is in discussions with “approximately three or four additional OEMs,” while noting that OEM qualification timelines are typically longer than standardized material handling products.
On defense, management said it made deliveries during the quarter to an existing global defense contractor for a new vehicle platform, expanding the relationship to two distinct applications. DasGupta said defense is expected to become a “meaningful contributor” to revenue in fiscal 2026 and a long-term strategic priority. In Q&A, he said the company expects robotics to be larger than defense this year, though both should be “present in a material way.” He also noted Electrovaya has two established defense contractor customers, is in discussions with two more, and expects defense margins to be higher, although qualification cycles can be lengthy and scale-up is expected to be gradual.
Electrovaya also said it is continuing testing of its airport ground support equipment battery systems across multiple locations and climate conditions with a leading U.S. airline. DasGupta acknowledged the process has taken longer than anticipated, but said the company remains optimistic. In response to a follow-up question, he characterized the opportunity with the first airline as “a reasonably large-scale deployment” once the project moves from pilot orders to scale.
Internationally, the company said it established a Japanese subsidiary during the quarter to support demand across Japan and the broader Asia Pacific region.
Product roadmap: fast charging, data center storage, and solid-state
DasGupta outlined development efforts aimed at markets such as automation, robotics, advanced mobility, and energy storage for data center infrastructure. Key initiatives discussed included:
- Infinity rapid charging: Electrovaya said it is advancing an ultra-fast charging power system cell that integrates a next-generation anode with its Infinity platform and ceramic separator technology. Management is targeting 5-minute charge and discharge capability and commercialization in 2027.
- Energy storage systems: The company described two energy storage products. One is a more standardized high-power product based on its current cell, designed for 30-minute to 1-hour storage; management said pilots are scheduled, including a “U.S. government-backed project” it hopes to announce soon, plus internal pilots. The second is an 800-volt DC system intended for data centers, aimed at short-duration ride-through and fast power fluctuation management; the company said it is in early-stage discussions with potential partners, including electricity generation companies supporting on-site generation.
- Ceramic separator: Management said next-generation separator work is intended to improve energy density and thermal stability, including making the separator thinner and using novel materials. DasGupta also said the current separator is manufactured under contract in Japan, while the next-generation version is planned for domestic scale-up.
- Solid-state: DasGupta said the company ordered pilot-scale equipment that has arrived and is being installed, with plans to begin scaling up solid-state cells from April and potentially sampling cells if results are positive. He also said Electrovaya is close to being awarded patents related to solid-state technology, while noting the process remains under examiner review.
Jamestown expansion and 45X credit expectations
Management provided updates on its Jamestown, New York manufacturing expansion, describing it as central to increasing capacity and supporting domestic production. DasGupta said interior and exterior upgrades have begun, initial dry room equipment has been delivered, and the company has started hiring personnel to support equipment installation and automation. In Q&A, management said it has recruited experienced manufacturing talent, including a senior hire with large-scale battery plant experience and additional hires with backgrounds at other U.S. battery manufacturing sites.
On capital spending, Gibson said Electrovaya expects to spend “90%” of the $50 million EXIM loan proceeds before the end of the fiscal year, with capex increasing in Q2 and Q3 and the majority occurring in Q3 and Q4.
Regarding revenue contribution from Jamestown, DasGupta said the company has anticipated cell-level contribution beginning in fiscal 2027 (Electrovaya’s fiscal year ends September 30), and that there will be no cell revenue in fiscal 2026. He added that module and system activity could generate some revenue in fiscal Q4. He also said cell production could potentially begin in the first quarter of fiscal 2027, with the caveat of a start-up period to ensure output meets requirements.
Discussing the 45X production tax credit, DasGupta said Electrovaya expects to start with the $10 per kWh credit associated with module production, and later transition to the $35 per kWh credit associated with cell production once cell manufacturing reaches sufficient scale, noting that under updated rules the company can claim one or the other.
Finally, Gibson said the company is evaluating re-domiciling considerations after its November equity financing, citing higher trading activity on Nasdaq than the TSX and an expectation that Electrovaya will lose foreign private issuer status and become a U.S. domestic filer. He said that shift would subject the company to domestic reporting and governance requirements, and could also make it eligible for inclusion in certain U.S. equity indices.
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.
