01 — At a Glance
From Bankruptcy Court To Transformer Factory. The Glow-Up India’s Missing.
- 52-Week High / Low₹232 / ₹123
- Q3 FY26 Revenue₹45.94 Cr
- Q3 FY26 PAT₹6.48 Cr
- Annualised EPS₹1.84
- Book Value₹8.12
- Price to Book15.9x
- ROCE (3 Year Avg)33.8%
- Operating Margin14.95%
- Return Over 3-Yrs178%
- NSE ListingMar 13, 2026
Flash Summary: Marsons just delivered Q3 FY26 PAT of ₹6.48 crore with 2.53% YoY profit growth (slow quarter, but that’s fine). The company is fresh off NCLT rescue in 2022, has grown 178% in 3 years, trades at 67.8x P/E, and generates 36.5% ROE. It got NSE listing approval in March 2026. The joke: the market is still pricing it like a speculative turnaround rather than a profitable, growing transformer manufacturer. Then again, it’s only been a week on NSE. Give it time.
02 — Introduction
The Company That Died, Came Back, And Started Making Money. Literally.
Let me tell you a story. In 2018, Marsons Limited filed for bankruptcy. By 2019, it was under NCLT (National Company Law Tribunal) proceedings — the financial equivalent of being in an ICU but still alive. The company’s debt was 22 times its revenue. The balance sheet had negative net worth. The auditors were probably having existential crises.
Then, on May 31, 2019, a new management walked in via a Resolution Plan. Not with fanfare. Not with a press release that made news. Just quietly took over and started fixing things. Four years later, here’s what that “fixing things” looks like: Revenue growth from ₹6.46 crore in FY24 to ₹168.36 crore in FY25 (that’s 26x growth in one year). Profit growth of 178% in three years. Stock up 178% in three years. ROCE at 33.8%. A brand-new NSE listing.
The most Indian thing about Marsons? It’s a transformer manufacturer. Literally makes transformers. The electrical kind. Not blockchain. Not AI. Not crypto. Just boring, essential, critical infrastructure equipment that nobody talks about but everyone depends on. Every power line you see, every solar farm in Rajasthan, every industrial unit — there’s a good chance a Marsons transformer is in there, quietly doing its job, generating 36.5% ROE while the market yawns.
Brickwork Ratings Note (Dec 2025): BWR BBB+/Stable for bank facilities. The ratings agency specifically noted “extensive management experience,” “strong order book of Rs.294 crores,” and “improved revenue performance.” They also noted working capital intensity and competitive pressures. Basically, this is a good credit that’s executing well.
03 — Business Model: WTF Do They Even Do?
They Make Transformers. 300,000+ of Them Over 60 Years. You’ve Seen Them. You Just Didn’t Notice.
Marsons manufactures transformers. Not the robot kind. The electrical kind. Distribution transformers (10 KVA to 50 MVA), power transformers (up to 160 MVA 220 kV class), furnace transformers, dry-type transformers, solar transformers, and increasingly — renewable energy transformers.
The business model is simple: get orders, manufacture, deliver, get paid. The orders come from three channels: (1) Government contracts via state electricity boards and utilities (50-60% of revenue), (2) EPC (Engineering, Procurement, Construction) projects (30-40% of revenue), and (3) Direct end-users (less than 10%).
The company’s competitive edge: it’s the only manufacturer in Eastern India capable of making transformers up to 220 kV class. That’s a geographic monopoly in a region. The facility in Kolkata has strategic advantages — low operating costs, access to skilled labor, proximity to tech institutes. And they’ve got actual infrastructure: NABL-accredited testing labs, ISO certifications, production capacity of 4,500 MVA per year (planning to expand to 9,000 MVA by FY27).
Govt Contracts50-60%of revenue
EPC Projects30-40%of revenue
Direct Users<10%of revenue
Order Book₹294 Cras of Oct 2024
Fun Fact: Marsons supplied over 300,000 transformers in the last 60 years. Every time your neighborhood goes dark and then gets power back, there’s a decent chance a Marsons transformer was involved in making sure the grid didn’t collapse. No one claps for them. That’s infrastructure.
04 — Financials Overview
Q3 FY26: Growth Is Slowing But Profitability Is Real
Result type: Quarterly Results | Q3 FY26 EPS: ₹0.38 | Avg Q1-Q3 EPS: (₹0.47+₹0.53+₹0.38)/3 = ₹0.46 | Annualised EPS: ₹1.84
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 45.94 | 44.17 | 59.80 | +4.01% | -23.27% |
| Operating Profit | 6.87 | 4.17 | 8.57 | +64.75% | -19.72% |
| Operating Margin % | 14.95% | 9.44% | 14.33% | +551 bps | +62 bps |
| PAT | 6.48 | 6.32 | 9.20 | +2.53% | -29.57% |
| EPS (₹) | 0.38 | 0.37 | 0.53 | +2.70% | -28.30% |
The Good News: Operating margin improved 551 basis points YoY (from 9.44% to 14.95%). That’s a significant jump in operational efficiency. The company is getting better at converting sales to profits. PAT growth is slow (2.53%), but that’s because Q2 was abnormally strong. The underlying trend is healthy.
The Concern: Revenue sequentially declined 23.27% QoQ, and PAT declined 29.57% QoQ. Q2 looks like an outlier quarter. The question is: was Q2 peak, or will Q3 look weak? Order book of ₹294 crores provides visibility, but execution matters.
💬 A 67.8x P/E on annualized ₹1.84 EPS feels aggressive. But 178% profit growth over 3 years and 36.5% ROE are genuinely solid metrics. What’s your take — is this a genuine value trap or a recovery story still unfolding? Comments welcome.
05 — Valuation Discussion – Fair Value Range
What Is A Bankrupt Company Now Printing 36.5% ROE Actually Worth?
