At a Glance
Voltamp Transformers, the Baroda-based transformer kingpin, just dropped its Q1 FY26 results: Revenue up 1% YoY to ₹424 Cr, PAT up 3% to ₹80 Cr, and EPS holding at a beefy ₹78.63. The order book is hotter, with a 33% increase in order volumes and revenue visibility of ₹1,685 Cr. Stock is at ₹9,202 – down from its ₹14,800 high but still flexing strong margins and ROCE.
Introduction
Voltamp isn’t your average transformer company – it’s the quiet overachiever in heavy electricals. It builds oil-filled power and distribution transformers that keep India’s power grid from collapsing under the weight of air conditioners and crypto rigs.
In a sector where PSU giants (BHEL) barely move the needle, Voltamp keeps churning profits with near-zero debt. Yet, the market slapped it with a 35% correction from highs – maybe because investors expect fireworks, not stable cash machines.
Business Model (WTF Do They Even Do?)
- Core: Manufacturing power & distribution transformers (oil-filled).
- Capacity: Serves utilities, industries, and infra projects.
- USP: Quality builds, consistent execution, premium pricing.
- Revenue Stream: Sale of transformers, services, and AMC.
In short, Voltamp makes the devices that step up/step down electricity – the unsung heroes behind every “light on” moment.
Financials Overview
- Revenue (Q1 FY26): ₹424 Cr (+1%)
- PAT: ₹80 Cr (+3%)
- EBITDA Margin: 17% (steady)
- EPS: ₹78.6
- Dividend Yield: 1.1%
Flat growth but profitability remains rock solid. Five-year profit CAGR is 30% – that’s tech-stock level in an industrial body.
Valuation
- P/E Method: EPS ₹321 × Industry P/E 30 ⇒ ₹9,630
- EV/EBITDA: EV ~₹9,300 Cr / EBITDA ₹363 Cr ⇒ 25×; Fair value ~₹9,000
- DCF (Quick): Growth 10%, discount 11%, terminal multiple 12 ⇒ ₹9,800
🎯 Fair Value Range: ₹9,000 – ₹10,000
Current price ₹9,200 is fair, not cheap, not crazy.
What’s Cooking – News, Triggers, Drama
- Order book visibility: ₹1,685 Cr (33% higher).
- Strong execution + near-zero debt.
- Promoter stake dipped to 37.8% (from 50%) – eyebrow-raising.
- Capex? Not big, but steady.
- Market correction offers an entry to those who like “quiet compounders.”
Balance Sheet – Auditor Comedy
| Particulars | Mar 2025 (₹ Cr) |
|---|---|
| Assets | 1,776 |
| Liabilities | 188 |
| Net Worth | 1,588 |
| Borrowings | 2 |
Commentary: Debt-free, cash-rich, reserves climbing – this is what healthy looks like.
Cash Flow – Sab Number Game Hai
| Year | Ops (₹ Cr) | Invest (₹ Cr) | Finance (₹ Cr) |
|---|---|---|---|
| 2023 | 168 | -127 | -36 |
| 2024 | 216 | -141 | -63 |
| 2025 | 219 | -116 | -94 |
Commentary: Positive ops cash, steady reinvestment, dividends flowing. Finance outflows show generosity.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 21.7% |
| ROCE | 29.1% |
| P/E | 29.2 |
| PAT Margin | 19% |
| D/E | 0.0 |
Commentary: Sexy as industrial ratios get. No leverage, high returns – clean as a whistle.
P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| 2023 | 1,385 | 231 | 200 |
| 2024 | 1,616 | 322 | 307 |
| 2025 | 1,934 | 366 | 325 |
Commentary: Solid growth. FY26 Q1 slower, but backlog ensures coming quarters will hum.
Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| ABB India | 12,268 | 1,889 | 63 |
| CG Power | 10,559 | 996 | 104 |
| BHEL | 28,339 | 534 | 157 |
| Voltamp | 1,930 | 326 | 29 |
Commentary: Voltamp trades cheap vs peers despite similar profitability metrics. Underrated gem.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: 37.8% (down from 50%).
- FIIs: 23%.
- DIIs: 23%.
- Public: 15%.
Promoter selling might scare newbies, but institutional interest offsets it.
EduInvesting Verdict™
Voltamp Transformers is the industrial equivalent of a disciplined athlete – low debt, consistent earnings, strong ROE. The market punished it with a correction, but fundamentals remain intact.
SWOT Snapshot:
- Strengths: Debt-free, high margins, solid order book.
- Weaknesses: Low promoter stake, growth moderation.
- Opportunities: Power infra boom, renewable energy grid upgrades.
- Threats: Competition from ABB, CG Power, raw material price volatility.
For long-term investors, Voltamp is not cheap but fairly priced for a quality franchise. Traders? Enjoy the ride – this one still has voltage.
Written by EduInvesting Team | 29 July 2025
SEO Tags: Voltamp Transformers, Power Equipment Stocks, Q1 FY26 Results, Industrial Compounders
