TMC Transformers India IPO

Strengths · 7

• 01Average size of each transformer sold rose from 3.78 MVA in FY2024 to 7.54 MVA in FY2026, and for oil-filled units from 6.15 MVA to 17.45 MVA, showing a move to larger classes.
• 02Operating EBITDA margin rose from 9.04% in FY2024 to 31.89% in FY2026, and PAT margin from 6.10% to 22.94%.
• 03Revenue from operations grew 53.57% in FY2026 to Rs 417.24 crore, after 9.76% growth in FY2025.
• 04Order book was Rs 673.42 crore on 31 March 2026, up from Rs 137.51 crore on 31 March 2024.
• 05The company holds RDSO certification across the transformer classes needed for 2x25 kV traction substations, and railways gave 42.19% of FY2026 revenue.
• 06The CRGO processing plant of 4,500 MT inside the group gives some control over a key raw material.
• 07Return on average capital employed was 79.31% and return on average equity was 75.21% in FY2026.

Risks · 10

• 01Railways gave 42.19% of FY2026 revenue (28.41% in FY2025), so delays in railway tenders or budgets would hit sales.
• 02Top 5 customers gave 56.40% of FY2026 revenue (43.02% in FY2025) and top 10 customers gave 74.65%.
• 03Top 10 suppliers made up 79.92% of cost of goods sold in FY2026, and there are no long-term supply contracts.
• 04Operating cash flow was negative at Rs -9.82 crore in FY2026 while profit after tax was Rs 95.71 crore, and net working capital days rose to 136 from 24 in FY2024.
• 05Total borrowings rose to Rs 117.42 crore in FY2026 from Rs 20.70 crore in FY2025.
• 06The company has delayed payment of statutory dues in FY2024, FY2025 and FY2026 and has filed suo-moto adjudication applications under the Companies Act, 2013.
• 07Auditors included emphasis of matter paragraphs in the special purpose consolidated statements for the last three years, and CARO observations in the FY2026 audit reports.
• 08Capacity utilisation at the transformer plant was 57.88% in FY2026, so growth depends on filling existing capacity.
• 09The entire issue of Rs 550.00 crore is fresh, but the amount for general corporate purposes is not fixed yet and can go up to 25% of gross proceeds.
• 10The promoter has said he cannot trace his senior secondary education certificate, so the company cannot confirm that detail.

TMC Transformers (India) Limited is a transformer maker based near Vadodara, Gujarat. It sells oil-filled transformers up to 160 MVA and 220 kV class, dry-type transformers up to 20 MVA and 36 kV class, and compact substations up to 3 MVA and 36 kV class. These are built to each customer's technical specification.

The product range includes high voltage power transformers, Scott-connected traction transformers, cast resin transformers, auto transformers, furnace transformers, solar multi-winding inverter-duty transformers and distribution transformers. The company says it is the only transformer maker in India certified by RDSO for all classes of transformers needed for 2x25 kV traction substations (source: CRISIL report).

The company serves railways, renewables, metro, industrial customers and discoms. It reports one business segment. Sale of transformers to the railways sector was Rs 176.05 crore, or 42.19% of revenue from operations, in FY2026. Exports were Rs 68.81 crore, or 16.49% of revenue, in FY2026, to markets such as the USA, Nigeria, Saudi Arabia, Mexico, Nepal, Spain, Zimbabwe, the United Kingdom and Australia.

As of 31 March 2026, the transformer plant has an installed capacity of 8,500 MVA. A subsidiary runs a CRGO (core steel) processing plant with 4,500 MT capacity at Vadodara. Capacity utilisation at the transformer plant was 57.88% in FY2026, against 35.38% in FY2025 and 28.53% in FY2024. The order book stood at Rs 673.42 crore on 31 March 2026, against Rs 327.10 crore a year earlier.

The promoter, Hriday Narayan R Shukla, is Chairman and Managing Director. He has around 24 years of experience in electrical insulation and transformer manufacturing. The company plans a new greenfield facility to expand into extra high voltage (EHV) power transformers.

The industry

The industry report by CRISIL says power transformers make up about 50-55% of the Indian transformer market, distribution transformers about 35%, and traction transformers the rest. The domestic power transformer market is estimated at Rs 179 billion in fiscal 2026 and is expected to reach Rs 380-390 billion in fiscal 2031, a CAGR of 16.2-16.8%. Traction transformers are expected to grow at a CAGR of 14.5-16.5%, helped by railway electrification and metro rail projects.

Customer concentration: Top 5 customers gave 56.40% of FY2026 revenue (43.02% in FY2025 and 42.44% in FY2024). Top 10 customers gave 74.65% in FY2026.