Synopsis:
Indo Tech Transformers jumped 2.6% after winning a major transformer supply order worth ₹78.39 crore, boosting investor sentiment and driving the stock higher.
A small cap company engaged in the business of manufacturing power and distribution transformers is in the spotlight after receiving a domestic order from Avaada Clean Project Private Limited to manufacture and supply nine 125 MVA transformers
With the market capitalization of Rs. 1,949.83 crore, the shares of Indo Tech Transformers Ltd trading at Rs. 1,836, up by 2.60 percent from its previous day’s close price of Rs. 1,789.40 per equity share, and it has reached an intraday high of Rs. 1,875.
What’s the News?
Indo-Tech Transformers Limited has received a domestic purchase order from Avaada Clean Project Private Limited to manufacture and supply nine 125 MVA transformers, valued at Rs. 78.39 crores . The order will be executed in phases, with two transformers due in March 2026 and three each in April and May 2026.
About the Company & Others
Indo Tech Transformers Limited is an Indian company that manufactures power, distribution, and special application transformers, including mobile substations, for industries such as transmission, generation, renewable energy, steel, cement, textiles, utilities, and DISCOMs.
It manufactures transformers ranging from 5MVA/33KV to 31.5MVA/132KV, including two-winding, three-winding, and auto transformers. The company runs a large power transformer facility in Kancheepuram, Tamil Nadu, with an installed capacity of 6,000 MVA.
The company’s robust order book of ₹830 crore, around 1.5 times its annual revenue, provides strong revenue visibility for FY25–26. A return on equity (ROE) of about 25.7 percent and a return on capital employed (ROCE) of about 37.8 percent demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 25.3x, which is lower as compared to its industry P/E of 47.1x.
In Q1FY26, the company reported revenue of ₹164 crore, up 100% year-on-year from ₹82 crore in Q1FY25 but down 20.4% quarter-on-quarter from ₹206 crore in Q4FY25, while profit rose to ₹19 crore, up 216.7% YoY from ₹6 crore but down 9.5% QoQ from ₹21 crore, showing strong annual growth with some sequential softness.
Written by Akshay Sanghavi
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