Can Voltamp transformers share reach ₹10,000? Here’s what Emkay Global has to say

SYNOPSIS: The article outlines Emkay Global’s outlook on Voltamp, detailing its growth drivers, strong order inflows, capacity expansion plans, sector opportunities, and expectations of moderated margins as industry supply normalises.

Shares of a Baroda-based company mainly engaged in the manufacturing of various types of oil-filled power & distribution transformers of various classes are in focus on the stock exchanges, after Emkay Global expects the stock to hit the Rs. 10,000 mark, supported by strong industry tailwinds and a robust demand outlook.

With a market cap of Rs. 7,993.3 crores, shares of Voltamp Transformers Limited were trading at Rs. 7,900.8 on BSE, as against its previous closing price of Rs. 7,980.65. The stock has delivered negative returns of more than 30 percent in one year, and has fallen by nearly 1 percent in the last one month.

Brokerage Target & Outlook

Domestic brokerage firm Emkay Global Financial Services has maintained its “buy” rating on Voltamp Transformers Limited, while revising its target price downward by 12 percent to Rs. 10,000 per share (from Rs. 11,350 earlier). This revised target still implies a potential upside of around 27 percent from the current price levels.

The brokerage values the company at 25x FY28 estimated EPS, noting that its updated estimates factor in strong order inflow momentum in the first half of FY26, alongside slightly lower margin estimates.

According to Emkay, Voltamp’s strong competitive positioning – supported by a 15 percent market share in the industrial transformer segment – is underpinned by its design and manufacturing capabilities and a broad product portfolio catering to a diverse customer base, with private-sector clients accounting for nearly 85 percent of revenue.

Given its established industry track record, the brokerage believes the company is well placed to benefit from a multi-year growth cycle, aided by the revival in private capital expenditure and the Government of India’s PLI-led push for domestic manufacturing.

Emkay further notes that emerging opportunities across solar energy, railway capex, EV charging networks, green hydrogen, and data centres significantly expand Voltamp’s addressable market. While the brokerage expects high double-digit revenue growth driven by capacity expansion and Voltamp’s lean balance sheet, it has trimmed its margin estimates in view of increasing supply pressures as several players ramp up capacity across the industry.

Voltamp continues to record strong order inflows, rising 37 percent in FY24, 12 percent in FY25, and 37 percent in 1HFY26 year-on-year, supported by its well-diversified customer base. Key end-markets contributing to this growth include metals and mining, infrastructure, commercial real estate, transmission utilities (GETCO and private players), and renewable energy.

Management has highlighted a robust enquiry pipeline, driven by healthy industrial demand and increased requirements from power utilities for grid strengthening and expansion. The company’s current order book stands at ~Rs. 1,400 crore, equivalent to 0.7x trailing twelve-month (TTM) revenue.

With sustained demand and steady inflow of orders, it has been operating at full utilisation of its existing 14,000 MVA manufacturing capacity. To support future growth, the company is investing Rs. 200 crore, fully funded through internal accruals, to add 6,000 MVA of additional capacity at its Vadodara plant, covering products up to the 220 kV range.

This expansion will increase total installed capacity to 20,000 MVA. The new facility is expected to become operational by Q1 FY27, with utilization projected to reach 50-60 percent by FY27, followed by a gradual ramp-up.

Over recent years, Voltamp has benefited from a favourable industry cycle, reflected in the expansion of its EBITDA margin from 12.3 percent in FY22 to 18.9 percent in FY25. This sharp improvement was supported by strong demand-supply imbalances, extended delivery lead times, and supply-chain constraints in CRGO and other key components, which collectively enabled better pricing.

However, with multiple industry players, including Voltamp, now adding capacity and supply-chain conditions gradually stabilising, the brokerage anticipates profitability to moderate and return toward more normalised levels going forward.

Financials & More:

In Q2 FY26, VTL experienced a significant rise in the revenue from operations of Rs. 483 crores, an increase of around 14 percent QoQ and 21 percent YoY. Meanwhile, its net profit stood at Rs. 79 crores, representing a marginal decline of around 1.2 percent QoQ but a growth of about 4 percent YoY. Between FY22 and FY25, VTL revenue grew at a 3-year CAGR of nearly 20 percent, while net profit surged at a CAGR of over 35 percent.

The company began FY26 with a robust opening order book of Rs. 938 crores (7,904 MVA). During the period from April 2025 to date, VTL secured new orders worth Rs. 1,377 crores (11,442 MVA). Additionally, orders worth Rs. 92 crores (1,488 MVA) have been finalised with customers and are awaiting formal purchase order releases. With the current order position, the company is well placed to achieve its revenue targets for the year.

Meanwhile, the construction of the greenfield EHV Power Transformer manufacturing facility is progressing as per schedule, with completion targeted by June 2026, subject to any unforeseen delays. As of date, the company has invested Rs. 82.82 crore towards capital expenditure for the project.

Voltamp Transformers Limited (VTL) specialises in the design, manufacture and supply of both oil-filled and dry-type transformers. It serves a wide range of sectors – including Power, Oil & Gas, Petrochemicals, Steel, Cement, Data Centres, Green Energy and Commercial Infrastructure. Its clientele spans quality-focused corporates, utilities, PSUs, EPC contractors and global engineering firms.

Voltamp offers a comprehensive, energy-efficient, and customizable range of transformers and related services. The company’s product portfolio includes Oil-Filled Power and Distribution Transformers with capacities of up to 160 MVA and voltage levels ranging from 11 kV to 220 kV.

It also manufactures Dry-Type Transformers with capacities of up to 10 MVA and voltage ratings between 3.3 kV and 33 kV. Additionally, Voltamp provides Compact Substations with ratings up to 2.5 MVA in the 33 kV class, along with Ring Main Units (RMUs) rated at 12 kV and 630 Amps, catering to diverse power distribution requirements.

Written by Shivani Singh

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