Event Participants
Executives
4
Mathur, Akshaykumar (CEO); Mehta, Mehul (CFO); Patel, Niral Krupeshbhai (Chairman & MD); Sharma, Anand (COO)
Analysts
14
Aryan Vijan (RV Investments); Anuj Shah (PhillipCapital); Arafat Saiyed (Dolat Capital); Chandan Mishra (Finvestors); Jainam (Saltoro Investment); Jigar Jani (Nuvama PCG Research); Kunal Mehta (Incred Equities); Mayank Chaturvedi (HSBC); Mihir Manohar (Trust Mutual Fund); Pratham Modi (HPMG Shares and Securities); Prathmesh Salunkhe (Nippon Life); Rohan (Axis Capital); Shubhi Gupta (Trinetra Asset Managers); Teena Virmani (Motilal Oswal Financial Services)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹466.33 crores | +48% YoY (vs ₹315.11 crores in Q1 FY26); volume-driven growth from new facility ramp-up; QoQ decline of 37.6% reflects typical seasonality (Q4 FY26 exceptionally strong at ~₹747 crores) |
| Gross Profit | ₹127.20 crores | +55.5% YoY; gross margin improved 130 bps to 27.3% from 26.0% |
| EBITDA | ₹77.10 crores | +58.1% YoY; EBITDA margin expanded to 16.5% vs 15.5% in Q1 FY26 (normalized from ~20% in Q4 FY26) |
| PAT | ₹46.84 crores | +50.4% YoY; PAT margin improved to 10% (vs 13.7% in Q4 FY26) |
| EPS | ₹6.09 per share | +40% YoY |
| Sales-based Capacity Utilization | 4,381 MVA | Against aggregate installed capacity of 63,060 MVA; Q1 FY26 volume was 3,605 MVA; Q4 FY26 volume was ~13,000 MVA |
| Order Inflow | ₹972.42 crores | Highest-ever quarterly order inflow; record quarter |
| Order Book | ₹3,116.63 crores | As of 30 June 2026; ~₹2,400 crores executable in FY27 |
| Net Working Capital | 72 days | Inventory days: 105; Receivable days: 88; Payable days: 110 |
| Cash Conversion Cycle | ~83 days | Broadly in line with previous quarter despite scale-up |
| Revenue Mix (by Voltage) | 220 kV: 56%; 66 kV: 25%; 132 kV: 5.5% | Mix shift towards higher-value products driving structural margin improvement |
| Revenue Mix (by Product) | Power Transformers: ~79%; Balance: Auto, Inverter Duty, others | T&D: ~66% of revenue; Renewable: ~19%; Thermal & industrial: balance |
Geographic & Segment Commentary
Power Transformers (Domestic): Largest revenue contributor at ~79% of revenue. Demand remains robust across transmission & distribution utilities, renewable energy, and industrial applications. Record order inflow of ₹972.42 crores in Q1 included a ₹291.68 crores order from RVPNL (Rajasthan utility) for 160 MVA, 50 MVA, and 31.5 MVA transformers, and a ₹285.15 crores order from PSTCL (Punjab State Utility) for 23 units of 160 MVA 220/66 kV transformers. Transformer mix evolving towards higher capacity: 220 kV products now comprise over 55% of the order book, with 400 kV transformers and reactors contributing nearly ₹275 crores.
End-Market Diversification: Transmission & distribution contributed ~66% of revenue, followed by renewable energy at ~19%, with the balance from thermal power and other industrial applications. This diversified mix provides stability while enabling participation across multiple growth segments.
Manufacturing Footprint: Total MVA sales-based utilization was 4,381 MVA, of which Vadod facility produced 1,520 MVA and Jambusar (Ankhi) facility produced 320 MVA. Unit 4 at Vadod received Power Grid approval for manufacturing and supply of 400 kV class transformers during the quarter.
Exports: No export revenue in Q1 FY27 (₹0), but one export order has been secured for execution in the current fiscal year. Management targeting ~15% of revenue from exports within three years, focusing on Europe, Africa, and the United States; revenue recognition expected to commence from next financial year.
Company-Specific & Strategic Commentary
400 kV & 765 kV Platform Development: Strategic priority is commercialization of higher-voltage transformers to expand addressable market. Vadod Unit 4 received Power Grid approval for 400 kV class transformers; the 315 MVA order engineering is complete, with manufacturing to commence shortly and short-circuit test planned in Q2. Commercial contribution from 400 kV portfolio expected from FY28. 765 kV technical tie-up is at advanced discussion stage; first 765 kV products (transformer, ICT, reactor) planned at Ankhi facility, with doors opening for 765 kV orders by Q4 FY27.
Inverter Duty Transformer (IDT) Facility: Dedicated IDT manufacturing facility on track for commissioning by December 2026 (calendar year-end), adding ~5,000 MVA capacity. Positioned to cater to renewable energy, battery energy storage systems, and EV charging infrastructure demand. Management notes supply deficit across all transformer ranges, including IDT.
Backward Integration: Tank and radiator manufacturing facility coming up adjacent to Vadod facility. Capex of ₹15-20 crores invested to date out of total planned ₹180 crores announced last quarter. Tank and radiators constitute ~4-5% of total transformer cost; initiative expected to enhance supply chain reliability and reduce external vendor dependence.
Export Strategy: Targeting 15% of revenue from exports in three years. One export order booked for current year execution; strategy aimed at protecting lower kV class margins against potential future domestic overcapacity, with export margins expected to be better than domestic.
Competitive Positioning: Management does not foresee immediate disruption from Chinese power equipment manufacturers' policy to participate in PSU tenders. Only one of four eligible companies manufactures transformers; no participation witnessed in PSU tenders to date, and management believes they are not sitting idle (supplying private customers like Adani, Reliance). Entry barriers in the industry (approvals, track record) provide competitive protection.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | 40% CAGR for 3 years | Maintained guidance from IPO (9 months back); implied FY27 revenue ~₹2,591 crores based on FY26 base of ₹1,851 crores |
| EBITDA Margin | 17-18% | Management expects margin sustainability at 16.5% Q1 level; Q1 FY27 started at highest-ever EBITDA margin for a first quarter (16.5%); FY26 annual was 18.52%; raw material price increases will sustain but margin protection via contracts |
| Order Book Execution | ~₹2,400 crores of ₹3,116.63 crores in FY27 | Represents executable portion of order book; additional orders expected during the year (Q2 to mid-Q3 typically peak order booking period) |
| IDT Facility Commissioning | By December 2026 | 5,000 MVA capacity addition; on track as per plan |
| 400 kV Revenue Contribution | From FY28 | Meaningful commercial contribution expected from next financial year; 315 MVA order subject to successful short-circuit test |
| 765 kV Bidding | Q4 FY27 | Doors for 765 kV orders expected to open by end of current financial year, subject to tech tie-up closure (targeted in Q2), raw material injection (Q3), and Power Grid revalidation |
| Export Revenue Target | ~15% in 3 years | Orders expected to be booked in FY27; revenue recognition from FY28 onwards |
Risks & Constraints
| Risk | Context |
|---|---|
| Raw Material Inflation | Geopolitical environment driving upward pressure on raw material prices; expected to persist over coming quarters. Mitigation: price variation clauses in purchase orders allow passing on incremental costs; management procures on job-to-job basis (no speculation). CRGO steel under DGTR anti-dumping investigation with verdict expected by March 2027; short-term pressure not expected, but long-term impact uncertain |
| Chinese Competition Policy | Government allowed Chinese power equipment manufacturers to participate in PSU tenders through Indian manufacturing facilities. No material impact observed on pricing discipline or bidding intensity to date; only one company (of four) actually manufactures transformers; management believes they'd not be interested in lower-margin PSU orders. Long-term competitive implications still being assessed |
| Industry Capacity Expansion | Significant capacity additions by peers (CG Power, Transformers & Rectifiers ~60,000 MVA commissioning in next 3-4 months). Management sees no current impact on order inflow or pricing; demand is structural (multi-year investment cycle). Mitigation strategy: EHV product development, export market building, backward integration |
| Execution Risk on New Products | 400 kV and 765 kV platforms involve first-time manufacturing; margin differential vs 220 kV unknown until prototypes and short-circuit tests are completed. Tech tie-up costs (USD 3-5 million one-time fee + 2-4% royalty for 3-4 years on 765 kV products) will partially offset margin benefits; management maintains overall margins will be stable |
| Seasonality / Order Conversion Risk | Q1 is typically softer quarter; customer tenders floated early in fiscal year, execution heavier in H2. PSU order conversions take time (L1 status doesn't guarantee immediate order finalization); management could not disclose large pending orders due to PSU timelines |
| Working Capital Build-up | Inventory levels increased for production ramp-up and supply chain disruption mitigation; net working capital at 72 days with cash conversion cycle ~83 days. Management confirms stable profile despite scale-up; future cost of ₹160-165 crores remaining on backward integration capex to be funded (internal accrual vs debt not clarified) |
Q&A Highlights
Order Inflow & Demand Sustainability
Question: With ~60,000 MVA industry capacity expected to commission in next 3-4 months, do you see moderation in order inflow or margins? (Mihir Manohar, Trust Mutual Fund)
Answer: "We have witnessed the highest possible order inflow in quarter one in at least the last two to two and a half years. We don't see any impact on the order inflow, neither do we see any correction on the pricing terms." (Niral Patel)
Question: Should we take the record order inflow as steady state? Is Q1-Q2 the peak order booking period? (Kunal Mehta, Incred Equities)
Answer: "Typically quarter two and till mid of quarter three is the period where the order booking peaks out. Having booked a record value of order in quarter one, quarter two and quarter three mid will certainly add good amount of orders in the coming time." (Anand Sharma)
Margin Outlook & Raw Material
Question: Should we assume most raw material pressure is behind us and margins will sustain? (Jigar Jani, Nuvama PCG Research)
Answer: "FY25 we started with 13.80% EBITDA margin and ended annually at 15.56%. FY26 we started with 15.48%, Q4 was 20% and annually 18.52%. We started FY27 with highest-ever EBITDA margin since last three years at 16.50%. On raw material, we expect price increase will sustain, but margin will be sustainable... We expect margin somewhere around 17 to 18% as we always convey to investors." (Mehul Mehta)
Question: On gross margin QoQ decline, what was the product mix and where is raw material pressure highest? Are you stocking inventory? (Kunal Mehta, Incred Equities)
Answer: Revenue mix: 56% from 220 kV, 25% from 66 kV, ~5.5% from 132 kV. Inventory stocking is for current quarter execution only, not for the whole year. "We buy material on job-to-job basis only. We are in the business of manufacturing transformers and not speculating on raw material prices." (Mehul Mehta; Anand Sharma)
400 kV & 765 kV Development
Question: What is the status on 765 kV approval from PGCIL? (Mihir Manohar, Trust Mutual Fund)
Answer: "The approval process is in place. We are in very advanced talks with our technical partner. As soon as we close the agreement, approvals will be a fast-track mechanism." Expected by end of Q2. (Niral Patel)
Question: Where are we on the 765 kV tech tie-up and when can we start bidding? (Teena Virmani, Motilal Oswal Financial Services)
Answer: Tech tie-up at significantly advanced level; counterpart requires government approvals for technology sharing with Indian entity. "Our targets are to close in Q2; Q3 is when we will utilize for raw material injection and production." Doors for 765 kV orders expected by end of FY27 (Q4). Power Grid revalidation required in new name; short-circuit test recommendation for 765 kV still under discussion. (Niral Patel; Anand Sharma)
Question: What is the margin differential between 220 kV vs 400 kV/765 kV? (Prathmesh Salunkhe, Nippon Life)
Answer: "We expect 400 kV and 765 kV class transformers would help us earn better margins. But it is not right for us to comment on what kind of margins since we are going to manufacture these products for the first time. Once we manufacture a first prototype, get short-circuit test done, then we would get to know the exact margin differential." (Anand Sharma)
Question: What are the terms of the tech tie-up? (Kunal Mehta, Incred Equities)
Answer: "Combination of both — a fixed one-time fee upon successful development and royalty for at least three to four years. One-time fee ranges between USD 3 to 5 million; royalty ranges between 4 to 2%. Royalties may continue for at least three to four years. It will be only on 765 kV class products." (Niral Patel)
Chinese Competition & Capacity Additions
Question: Are Chinese players participating in public tenders and what pricing actions are we seeing? (Mayank Chaturvedi, HSBC)
Answer: "Out of four companies allowed, only one is manufacturing transformers. After the 2022 government guideline, their parent offloaded many export orders to the India unit. They had 6-9 months of crisis filling the shop, but private customers like Adani, Reliance have been buying from them. We have not witnessed any participation in PSU tenders as yet. Knowing their facility and load, we do not see why they would fill more orders from Indian PSUs with lower margins." (Anand Sharma)
Question: How does Atlanta plan to win large PGCIL orders like the ₹1,000+ crores order awarded to a peer? (Jainam, Saltoro Investment)
Answer: "There is a huge backlog with Power Grid; such orders can be expected in near future for the entire transformer industry, not one-off. The current record order book is technically 220 kV and below. Q2 would be the last quarter when our experimental/product development stage ends; we would open bids for further 400 kV class transformers. Atlanta would be well-positioned to crack 400 kV class orders which are higher in value." (Niral Patel)
Working Capital & Volume Split
Question: What was the MVA volume split and Q1 FY26 comparison for price vs volume growth assessment? (Mayank Chaturvedi, HSBC)
Answer: Total volume: 4,381 MVA (1,520 MVA from Vadod; 320 MVA from Jambusar/Ankhi). Q1 FY26 volume: 3,605 MVA. Price increases passed on via price variation clauses in purchase orders, explaining per-MVA realization increase across KV classes. (Mehul Mehta)
Question: Can you provide Q4 MVA production number for comparison? (Jigar Jani, Nuvama PCG Research)
Answer: Q4 FY26 production was approximately 13,000 MVA. (Mehul Mehta)
Backward Integration & Capex
- Question: How much capex has been done on the tank and radiator facility out of ₹180 crores mentioned last quarter? Debt funding plans? (Kunal Mehta, Incred Equities)
- Answer: "Close to about INR15 to 20 crores is what we've invested as of now." Funding mix (internal accrual vs debt) not clarified before call ended. (Niral Patel)
Export & Data Center Orders
Question: Any export contribution in Q1? What is the export mix target? (Anuj Shah, PhillipCapital)
Answer: "There was not" any export revenue in Q1 FY27. "We are targeting 15% of revenue from export market in next three years. We have got one order from one customer to be executed this year. Orders will be booked this year, but revenue stream will start from next financial year. We expect better margins from export market which will help maintain the margin profile committed to the market." (Anand Sharma)
Question: Any order book from data centers? (Chandan Mishra, Finvestors)
Answer: "The current order book does not contain any order from the data centers." (Anand Sharma)
IDT Supply Deficit
- Question: Is there a supply deficit in the IDT space given capacity additions by peers? (Kunal Mehta, Incred Equities)
- Answer: "Supply deficit is there across all ranges according to us, including IDT. That is the reason we have put up a facility exclusively for IDT." (Anand Sharma)
Key Takeaway
Atlanta Electricals delivered a strong Q1 FY27 with consolidated revenue of ₹466.33 crores (+48% YoY), EBITDA margin of 16.5% (highest ever Q1 margin), and PAT of ₹46.84 crores (+50.4% YoY), driven by capacity ramp-up and favorable mix shift toward 220 kV products (56% of revenue). The quarter set a record with ₹972.42 crores order inflow, taking the order book to ₹3,116.63 crores, of which ~₹2,400 crores is executable in FY27 — underpinning management's maintained guidance of 40% revenue CAGR with 17-18% EBITDA margins. Strategically, the company is advancing its 400 kV/765 kV platforms (Power Grid approval received for 400 kV at Vadod Unit 4; tech tie-up for 765 kV targeted in Q2 FY27 with USD 3-5 million fee plus 2-4% royalty), commissioning a 5,000 MVA IDT facility by December 2026, and building backward integration (₹15-20 crores invested of ₹180 crores planned). Key watchpoints include raw material inflation persistence (mitigated via price variation clauses), competitive implications of Chinese manufacturer participation (no near-term impact observed), and successful execution of first-time 400 kV/765 kV products, with meaningful commercial contribution from the EHV portfolio expected from FY28.