Transformer stock jumps 3% after receiving ₹149 Cr order from Gujarat Energy Transmission Corporation

Synopsis:
Voltamp Transformers shares rose over 3% after bagging a Rs. 149 crore order from Gujarat Energy Transmission Corporation Limited for power transformers.

A transformer stock rose sharply after securing a new order from Gujarat Energy Transmission Corporation Limited, bolstering its already healthy order book and near-term revenue visibility.

Voltamp Transformers Ltd, with a market capitalisation of Rs. 7,420.35 crore, opened at Rs. 7,111 and climbed to an intraday high of Rs. 7,348, marking a gain of 3.47 percent from its previous close of Rs. 7,101.75.

What’s the News?

Voltamp Transformers Ltd has received a Letter of Intent from Gujarat Energy Transmission Corporation Limited for the design, manufacture, testing, and supply of various ratings of power transformers. The order, valued at Rs. 149 crore, is to be executed within six months. 

This fresh order enhances Voltamp’s robust order book, which stood at Rs. 1,280 crore as on July 26, 2025, translating to 0.66 times its FY25 revenue. The company’s prudent approach to order selection and its focus on cash flow generation have led to a moderate scale of operations but consistently stable profitability. This strategy has allowed the firm to maintain a significant level of unencumbered liquid investments.

Financial Snapshot – Q1FY26

Sequentially, Voltamp’s revenue fell 32.2 percent from Rs. 625 crore in Q4FY25 to Rs. 424 crore in Q1FY26. Operating profit declined 37.1 percent from Rs. 116 crore to Rs. 73 crore, while profit before tax (PBT) dropped 18.6 percent from Rs. 129 crore to Rs. 105 crore. Net profit decreased 17.5 percent from Rs. 97 crore to Rs. 80 crore during the same period, reflecting seasonal moderation in project execution.

On a year-on-year basis, sales were nearly stable, edging down 0.9 percent from Rs. 428 crore in Q1FY25 to Rs. 424 crore in Q1FY26. Operating profit dipped 3.9 percent from Rs. 76 crore to Rs. 73 crore, while PBT increased 4 percent from Rs. 101 crore to Rs. 105 crore. Net profit rose 1.3 percent from Rs. 79 crore to Rs. 80 crore, indicating a steady performance despite a marginally softer topline.

About the Company

Voltamp Transformers Ltd manufactures electrical transformers catering to diverse industries such as power, oil refining, real estate, infrastructure, and steel. Its product range includes oil-filled power and distribution transformers up to 160 MVA, 220 KV class, and dry-type transformers up to 12.50 MVA, 33 KV class. The company operates two production facilities at Makarpura and Savli in Vadodara, Gujarat, with a combined installed capacity of 14,000 MVA as of March 31, 2025. Voltamp is also expanding its capacity by 6,000 MVA through a new power transformer facility at Jarod, Vadodara, scheduled to commence operations in July 2026.

Written by Manan Gangwar

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