Transformer stock jumps 7% after its order book increases by 211%

Synopsis: With a market cap of more than Rs 8200 Crore, a transformer manufacturer saw its stock surge by 7 percent soon after the company announced its Q3FY26 result. The company in context has a ROCE of 29 percent.

 A small cap stock where the company is in the business of  manufacturing of various types of Transformers  saw its stock surge soon after the company announced its Q3FY26 result that included a profit growth of 36 percent on YoY basis and a robust order book inflow of Rs Rs 1981 Crore, 

With a market cap of Rs 8,223 Cr, Voltamp Transformers Ltd saw its stock hit an intraday high of Rs 8236 which is 7 percent higher than the previous close of Rs 7669. The company stock has given a compounded return of 44 percent in the last five years, while the three year number is at 38 percent.

The Q3FY26 Result

In the latest quarterly result the company has seen its revenue from operations increase by 30 percent YoY, from Rs 483 Cr in Q3FY25 to Rs 630 Cr in Q3FY26, and the QoQ also increased by  similar percent from Rs 482 Cr in Q2FY26. Apart from these the company also saw its revenue from other sources rise by 281 percent, going from Rs 6 Cr in Q3FY25 to Rs 26 Cr in Q3FY26.

The net profits grew by 36 percent going from Rs 73 Cr in Q3FY25 to Rs 99 Cr in Q3FY26, while the QoQ increased by 27 percent from Q2FY26’s Rs 78 Cr. In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 17 percent YoY, from Rs 1309 Cr in 9MFY25 to Rs 1536 Cr in 9MFY26. The net profits for the same period grew by 13 percent going from Rs 228 Cr to Rs 257 Cr. 

The company has a 3 year sales CAGR of 20 percent, while the TTM is at 16 percent. The company’s 3 year profit CAGR is at 36 percent, while the TTM number is at negative 4 percent. The company also has a ROCE of 29 percent and a ROE of 22 percent.

The Order Book & Capex

The company currently has its orderbook at Rs 2919 Crore, which has grown by 211 percent since the start of this fiscal year. In 9MFY26, the company saw an order inflow of Rs 1981 Cr, this value stands for 16768 Megavolt-Ampere transformer orders.

The company also states that it is selectively taking new orders with a focus on profitability, execution certainty, and strong cash flows. While the enquiry pipeline remains healthy, a sharp rise in copper prices has temporarily slowed order closures from end customers and corporates.

Moreover, the company also stated that the greenfield EHV Power Transformer facility is on track for completion by June 2026, where the company has spent Rs 124 crore on the capital expenditure of the factory.

Voltamp Transformers Ltd, founded in 1967 and headquartered in Vadodara, Gujarat, designs, manufactures, and supplies transformers and electrical equipment for power and industrial sectors. Its offerings include oil‑filled, dry‑type, and induction furnace transformers, along with substations and RMUs, serving utilities and industries across India and overseas with strong after‑sales support.

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