This Transformer stock, deals in the business of power manufacturing and distribution transformers, various special application transformers, mobile substation transformers, and substations with an order book of ~Rs. 700 Crore to benefit from India’s increasing power demand.
Share Price Movement
In Friday’s trading session, Indo Tech Transformers‘ share price was up by 2.05 percent and closed at Rs. 2,362.30 per share from the previous close of Rs. 2,314.90 per share.
In the past year, the stock has given around 144 percent returns, and compared to the Nifty Index, Indo Tech Transformers has outperformed.
Industry Outlook
The Indian transformer market is expected to grow steadily, reaching Rs. 58.57 billion by 2028 at a CAGR of 3.5 percent for 2023–2028 as per sources. The key drivers include rising electricity demand, industrialization, renewable energy adoption, and smart grid development. The Indian Government is bringing initiatives like “Make in India” and further capital expenditure as announced in the Budget is likely to boost infrastructure expansion.
Future Plans
The company plans to continue its growth by leveraging a strong order book of ~Rs. 700 crore as of June 2024, which provides revenue visibility through March 2025 as per the recently available ICRA report.
Indo Tech expects healthy revenue growth in FY25, which is driven by order inflow, especially from renewables. ITL aims to increase its installed capacity to 10,000 MVA from 7,000 MVA, with a capex of Rs. 10 crore in FY25, primarily funded through term debt as per the ICRA report.
The company may benefit from its promoter (Shirdi Sai Electricals) which plans to install 10 GW of Ingot to Solar Module production Capacity and manufacturing of Solar Glass by March 2026. Indo Tech can likely play a role as one of the players in its supply value chain.
Financials
In its latest filing for the quarter ending December 2024, the company reported a 27.33 percent rise in revenue, reaching Rs. 177 crore compared to Rs. 139 crore in Q3FY24. During the same period, net profit increased by 72.72 percent from Rs. 11 crore in Q3FY24 to Rs. 19 crore in Q3FY25.
Business Segment & Mutual Fund Stake
The company recognizes its operational revenue under the manufacture and sale of transformers for the December 2024 quarter. Motilal Oswal Quant Fund owns a stake in this company with their AUM of the fund ~0.93 percent invested in it as per sources.
Increase in Promoter Pledge & CEO change
As per BSE Indo Tech’s promoter Shirdi Sai Electricals Limited was holding around 75 percent stake as of the December 2024 quarter. Recently, the promoter pledge increased from 46,86,000 equity shares in September 2024 to 59,86,000 equity shares in December 2024 month, an increase of 13,00,000 equity shares.
Recently, the Chief Executive Officer Shridhar Gokhale with effect from 07th April 2025, and on the same day, Purushothaman will be replacing the CEO role as per recent company filing.
Company Profile
Indo Tech Transformers Ltd., founded in 1992, is a leading transformer manufacturer based in Tamil Nadu, India. It produces power and distribution transformers, catering to industries like renewable energy and utilities.
The company manufactures large power transformers at a Kancheepuram facility with a 9000 MVA capacity, producing distribution transformers (1000 MVA/year) in the range of 5 MVA/11KV to 200 MVA/230KV as per sources.
Written by – Santhosh S
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