Why Did Indo Tech Transformers Shares Fall Over 5% Today? Here’s the Reason

Synopsis: The company recently received an update from one of its customers regarding a previously placed order. The customer has decided to cancel the order that was received on January 9, 2026. 

The shares of this transformer company majorly engaged in the business of manufacturing power, distribution of transformers and various special application transformers, were in focus after its customer cancelled a significant work order. 

With the market capitalization of Rs. 1,420 Crores, the shares of Indo Tech Transformers Ltd reached an intraday low of Rs. 1302 per share, down 5.5 percent from its previous day close of Rs. 1378 per share and is trading at a P/E of 15.8, compared to the industry P/E of 32.7. 

Reason behind 5 percent fall

Indo Tech Transformers Ltd has informed that Renew Wind Energy (JAMB) Private Limited has cancelled its order for the supply of 6 transformers of 220 kV – 165 MVA capacity. This order was earlier executed on 08 January 2026 and was disclosed to the stock exchanges on 09 January 2026. The total value of the cancelled order is ₹64.99 crores, excluding applicable taxes. 

According to the information provided by the customer, the reason for cancelling the order is a delay in their project. The company also clarified that the cancellation will not have any operational impact, as the manufacturing process had not yet started. The company further stated that it continues to maintain a healthy order book, and in the last week, it has received new orders worth around Rs. 80 crores from various renewable energy projects.

Financials

Indo Tech Transformers Ltd majorly engaged in the business of manufacturing power and distributing transformers and various other application transformers catering to various industries, which include transmission, generation, hydro, wind, solar, steel, cement, textiles, utilities and DESCOMS. The company also manufactures inverters and converter transformers that are designed for special applications and has an order book of Rs. 830 Crores as of FY25 

The Company’s product portfolio includes Distribution Transformers, which are suitable for use in utilities and industries ranging from 100 KVA /11 KV to up to 5000 KVA/33 KV for residential, commercial, and industrial applications, Power transformers ranging between 5MVA/33KV to 31.5MVA/132KV, including two-winding, three-winding and auto transformers. 

The company’s portfolio also includes large power transformers and skid-mounted transformers ranging between 5 MVA/11KV up to 200 MVA / 230 KV and 5 MVA, 11 – 33 KV(HV) respectively. The company has a renowned client base, including NTPC, Adani, L&T, Tata products, Suzlon and many more 

Year on Year analysis: Revenue from operations has increased from Rs. 177 Crores to Rs. 196 Crores, up 10.7 percent. Operating profit has increased from Rs. 24 Crores to Rs. 33 Crores, up 37.5 percent and Net profit has increased from Rs. 19 Crores to Rs. 25 Crores, up 31.5 percent. 

Quarter on Quarter analysis:  Revenue from operations has increased from Rs. 183 Crores to Rs. 196 Crores, up 7.1 percent. Operating profit has increased from Rs. 31 Crores to Rs. 33 Crores, up 6.5 percent and Net profit has remained same at Rs. 25 Crores 

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