1. Opening Hook
The transformer business used to be boring—until Danish Power started talking gigawatts like cricket scores. The Jaipur-based voltage virtuoso lit up H1FY26 with surging revenues and bigger ambitions, hinting that the next power surge might not come from the grid but their order book. The MD spoke more about “kilovolts” than the average engineering professor, and investors were left charged. The company now dreams of hitting ₹750–₹1,000 crore revenue once capacity expansion completes. Whether that dream is grounded or over-volted — read on, it gets electric ⚡
2. At a Glance
- Revenue ₹211 cr, up 29% YoY:Demand shock? No, just transformers everywhere.
- PAT ₹29.3 cr, up 41% YoY:Profits conducting better than copper.
- Order Book ₹405 cr:Enough backlog to light up half of Rajasthan.
- Export Share 8–10%:Finally crossing customs, not just state borders.
- FY26 Revenue Guidance ₹500–₹550 cr:Conservative CFO or cautious current?
- Capacity post-expansion:11,000 MVA per annum — more MVA than MBA dreams.
- Operating Margin ~19–20%:Still holding voltage steady under pressure.
3. Management’s Key Commentary
“We’ve completed Phase 1 of our expansion; Phase 2 will be ready by December.”(Translation: Santa’s bringing transformers this year 🎅)
“We see sustained demand from renewables, transmission, and generation.”(Yes, power everywhere — even data centers want a piece.)
“Exports will form 8–10% of revenue this year, rising to 30% in two years.”(Translation: They’re packing their transformers with passports.)
“We’ll hit ₹750 cr at optimum utilization, ₹1,000 cr at peak.”(That’s corporate for: “Depends if the monsoon behaves.”)
“Margins will stay stable around 19–20%.”(A fancy way to say, “Don’t expect fireworks, but we won’t short-circuit either.”)
“Validation for 220kV transformers will take 6–8 months.”(Read: Red tape moves slower than electrons.)
“90% of our business is private sector.”(Translation: Government payments take longer than transformer cooling cycles.)
4. Numbers Decoded
| Metric | H1 FY26 | H1 FY25 | YoY Change | Commentary |
|---|---|---|---|---|
| Revenue (₹ cr) | 211 | 163 | +29% | Monsoon delayed shipments, not enthusiasm. |
| PAT (₹ cr) | 29.3 | 20.7 | +41% | Current flowed freely to the bottom line. |
| Order Book (₹ cr) | 405 | 310 est. | +30% | Customers lining up for voltage. |
| Export Share (%) | 8–10 | 3–4 | Up 2x | Passport stamped, margin TBD. |
| Capacity (MVA) | 11,000 (target) | 7,200 | +52% | Powering up with IPO money. |
| Gross Margin | Slight dip | – | -1.5 pts | Blame the rain gods. |
| EBITDA Margin (%) | 19–20 | 19 | Stable | Still humming strong. |
Short take: more power, more orders, and still no short-circuit in profits.
5. Analyst Questions
Akash Jain:“Margins dipped—competition pressure?”MD:“Nah, just monsoon mischief.” (Weather: the universal scapegoat.)
Rajat:“Revenue guidance for FY26?”MD:“₹500–₹550 cr. Ambition tempered by rainfall.”
Paras Cheda:“When will we hit ₹750 cr peak revenue?”MD:“FY28, after teething pains and validation therapy.”
Raman KV:“Higher voltage = higher margins?”MD:“Eventually yes, but first, we must earn the client’s trust (and audits).”
Kaushal Sharma:“Backward integration update?”MD:“₹20 cr capex, 6–8 months timeline. We’re cutting our own sheet metal now.”
6. Guidance & Outlook
FY26 revenue will clock₹500–₹550 crore, slightly behind the earlier ₹600 crore dream due to expansion delays. By
