Transformer stock with expansion plans and strong revenue growth guidance to keep an eye on

Synopsis:
The company is positioned for strong growth, supported by a rising order book, major capacity expansion, and accelerating demand in India’s fast-growing transformer and electrical equipment market. With expanding product mix, new plant commissioning, and robust sector tailwinds, revenue visibility and long-term scalability remain firmly intact.

The Other Electrical Equipment sector in India is growing rapidly, driven by increased infrastructure projects, renewable energy adoption, and smart grid technologies. The market is expected to expand at a CAGR of over 15% between 2024-2029, reaching substantial billion-dollar figures. Rapid urbanization and rising electricity consumption boost demand for efficient electrical equipment across residential and commercial sectors.

With a market capitalisation of Rs 549 crore, the shares of Supreme Power Equipment Limited closed at Rs 219.70 per share, increasing around 0.9 percent as compared to the previous closing price of Rs 217.25 apiece.

Order book and execution

Supreme Power Equipment Limited holds an order book of  Rs 235 crore, with  Rs 112 crore from government clients and  Rs 123 crore from non-government customers. The mix includes  Rs 53 crore in distribution transformers,  Rs 105 crore in power transformers and  Rs 76 crore in inverter-duty solar units. Management expects 50–60% execution this year. With a 10–15% win rate and a bidding pipeline of  Rs 600–700 crore, growth visibility remains strong.

 Additionally, the company secured diverse Q2 orders across states and sectors. Key wins include  Rs 4.15 crore from TANTRANSCO,  Rs 15.25 crore from KSEB,  Rs 19.82 crore in Telangana, and  Rs 14.36 crore in Karnataka, plus  Rs 4.48 crore via subsidiary Danya Electric. Industrial and renewable orders added  Rs 2.55 crore from a steel plant and  Rs 9.03 crore for major solar projects, deepening both geographic and segment presence.

Supreme Power Equipment is a growing transformer manufacturer specializing in distribution, power, and inverter-duty solar transformers. With a strong order book, expanding capacity, and rising demand from utilities and renewable projects, the company is scaling rapidly. Its focus on quality, diversification, and timely execution positions it well in India’s evolving power infrastructure sector.

Expansion & Guidance

Further, Supreme Power is set for a major scale-up, with its 6-acre new plant becoming operational by December 2025  and production starting  Jan 2026. Capacity will rise from   2,500 MVA to 9,000 MVA  , enabling products up to   160 MVA  . At peak, it can generate Rs 500–550 crore revenue, reaching full utilisation in   2–3 years, with   20–30%   contribution expected for the new plant utilisation in Q4 FY26.

The company expects to surpass  Rs 200 crore in FY26 revenue, supported by high utilisation at its existing plant and initial contributions from the new facility in Q4. Government exposure is planned to be reduced below  50%. For FY27, management targets  30–40% growth, implying revenues of   Rs 260– Rs 280 crore, driven by stronger capacity and diversified orders.

Revenue mix

Supreme Power Equipment’s revenue mix shows steady diversification. Distribution transformers contributed  Rs 41.19 crore in FY23, rising to  Rs 58.06 crore in FY25. Power transformers grew from  Rs 30 crore to  Rs 45.12 crore in FY24, but slight dip in FY25 to Rs 40.55 crore, while inverter-duty solar transformers surged from  Rs 3.82 crore to  Rs 25.49 crore over the same period. Total revenue expanded sharply from  Rs 75.53 crore in FY23 to  Rs 144.79 crore in FY25, reflecting strong demand across segments.

Industry Overview 

India’s transformer market is expanding rapidly, rising from USD 3.97 billion in 2023 to an expected USD 8.41 billion by 2028 at over 10% CAGR. Demand is driven by power sector expansion, doubling of domestic manufacturing capacity, and utilisation levels of 60–70%. With India’s installed capacity at 446.18 GW and record power generation, transformer demand remains structurally strong.

Conclusion

Supreme Power Equipment is entering a high-growth phase, backed by a strong order book, expanding capacity, and rising demand across transformer segments. With its new plant boosting output and diversified orders improving stability, the company is well-positioned to scale rapidly, improve margins, and capture a larger share of India’s growing transformer market.

Written by Abhishek Singh

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