Synopsis:- A Kolkata-based transformer manufacturer has secured a purchase order worth approximately Rs. 17.94 crore, including GST, for the supply of 10 MVA power transformers to be executed over six months. The order is the fourth disclosed in under a month, even as the stock trades nearly 50 percent below its year-ago levels and cash conversion metrics warrant a closer look.
A transformer manufacturer catering to power utilities and industrial clients came into focus after announcing another fresh purchase order, continuing a run of contract wins disclosed through June. The filing, made under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements, adds to a stretch of order announcements that has coincided with a sharp reversal in the stock’s price. Shares have fallen nearly half from their 52-week high even as revenue and profit have both scaled up meaningfully over the past two fiscal years.
With a market capitalization of Rs. 1,953.34 crore, the shares of Marsons Limited were trading at Rs. 113.33 per share, down 0.81 percent from its previous closing price of Rs. 114.26 apiece.
Marsons has received a purchase order worth approximately Rs. 17.94 crore, inclusive of GST, from S.T. Electricals Private Limited for the supply of 10 MVA power transformers. The order is domestic, to be executed within six months, and carries no related-party relationship or promoter interest in the awarding entity. On a GST-exclusive basis the order value works out closer to Rs. 15.2 crore, using an assumed 18 percent rate typical for transformer equipment, though the company has not separately disclosed the exact tax-exclusive figure. Set against FY26 standalone revenue of Rs. 245 crore, this single order equates to roughly 6 percent of last year’s topline, a reasonable contribution for one customer relationship in a business built on repeat utility and industrial orders rather than a handful of large contracts.
A Month of Order Wins
This is the fourth order Marsons has disclosed to exchanges in a span of roughly three weeks. Earlier in June, the company reported a Rs. 33.19 crore transformer supply order tied to an NTPC renewable energy project routed through Vikran Engineering, a Rs. 9.48 crore repair and testing contract from West Bengal State Electricity Transmission Company, and a Rs. 7.75 crore export order from a US solar developer for a 25 MVA transformer.
Combined with the latest win, the four orders add up to roughly Rs. 68 crore, a meaningful figure against FY26 standalone revenue of Rs. 245 crore. The mix also signals diversification beyond domestic state utilities into renewable-linked and export demand, though the six-month execution window on most of these orders means the revenue contribution should show up within the current and following fiscal year rather than lingering as a backlog.
Growth Pace and Cash Conversion
Marsons’ recent growth has been dramatic by any standard. Standalone revenue rose from Rs. 6 crore in FY24 to Rs. 168 crore in FY25 and Rs. 245 crore in FY26, while net profit climbed from roughly Rs. 1 crore to Rs. 28 crore and then Rs. 46 crore over the same period. Return on equity for the last year stands at 27.2 percent and return on capital employed at 25.4 percent, both strong on the surface.
Debtor days have come down sharply from 378 days to 160 days, a genuine improvement, though 160 days remains high in absolute terms for a business collecting from utilities and EPC contractors. More striking is the cash flow picture: operating cash flow converted to just about 1 percent of operating profit in FY26, and free cash flow stayed marginally negative despite the reported profit jump, largely because growth has been funded through working capital build-up rather than converting into cash.
Screener’s automated checklist has also flagged the company’s tax rate as low, with FY26 showing a negative effective tax rate, worth understanding before extrapolating the reported bottom line forward. Promoter holding has fallen from 66.24 percent to 53.65 percent since mid-2024, a decline retail investors should track alongside the order wins. The shareholder base has also shrunk from a peak of roughly 34,000 accounts in late 2024 to about 27,000 currently, consistent with retail holders exiting as the stock corrected from its highs.
Capacity and Rating
Fixed assets on the balance sheet jumped from Rs. 14 crore to Rs. 65 crore in FY26, with an additional Rs. 25 crore sitting in capital work in progress, pointing to an active capacity expansion that should support the pace of order intake if commissioned on schedule. Brickwork Ratings updated its credit rating on the company in December 2025, a data point worth reviewing directly for lenders’ view of the balance sheet alongside the equity story. Trading windows are closed from July 1 until 48 hours after the June quarter results, which should arrive within the coming weeks and offer the first real test of whether the June order flurry and the capacity build-out are showing up in execution rather than just announcements.
Business Overview
Marsons manufactures power and distribution transformers ranging from 10 kVA units to 160 MVA, 220 kV class equipment, and holds ISO 9001:2008 certification along with CPRI, ERDA, and NABL accreditation. Incorporated in 1976 and headquartered in Kolkata, the company has expanded its capacity and order book considerably over the past two years after a long period of subdued operations. For FY26, Marsons reported standalone revenue of Rs. 245 crore against Rs. 168 crore in FY25, with net profit of Rs. 46 crore compared to Rs. 28 crore a year earlier.
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