Transformers manufacturing stock jumps after announcing stellar quarterly results (Q3) and nine-month results (9M)

Transformers-132757">Voltamp Transformers Limited demonstrated robust financial performance in Q3FY26, with net sales climbing 30 per cent to Rs 630.32 crore and net profit rising 27 per cent to Rs 129.88 crore compared to the same period last year. This momentum is mirrored in the nine-month results, where net sales reached Rs 1,536.46 crore and net profit grew to Rs 338.72 crore. The company’s growth is underpinned by a healthy Order Book, having secured new orders worth Rs 1,981 crores since April 2025. While rising copper prices have temporarily slowed order closures among some corporate clients, the medium-term outlook for transformer demand remains strong, particularly as power utilities continue to invest heavily in infrastructure.

The operational landscape is further bolstered by favourable trade developments, including the India–EU Free Trade Agreement and a US-India tariff settlement, both of which are expected to enhance export stability. Domestically, the Union Budget’s 10 per cent increase in capital expenditure to Rs 12.2 trillion signals a sustained push for infrastructure and manufacturing competitiveness. To capitalize on these tailwinds, Voltamp is progressing with its greenfield EHV Power Transformer facility, which is scheduled for completion by June 2026. Despite concerns regarding a strengthening US dollar and its impact on raw material costs, the company maintains a strategic focus on profitability and execution certainty to navigate global volatility.

About the Company

Voltamp Transformers Ltd, headquartered in Baroda, India, is a prominent manufacturer of a diverse range of oil-filled power and distribution transformers. The company's product portfolio caters to a wide spectrum of applications, encompassing transformers with capacities ranging from 160 MVA to 220 KV. To meet the growing demand, Voltamp operates state-of-the-art manufacturing facilities in Makarpura and Savli, Vadodara, boasting a combined installed capacity of 14,000 MVA. The company's products have earned global recognition, with exports reaching various countries including India, Nepal, Bhutan, Sri Lanka, Middle East Asia, South East Asia, and Africa.

Today, shares of Voltamp Transformers Ltd jumped 7.3 per cent to Rs 8,236.80 per share from its previous closing of Rs 7,669.90 per share with a 5 times Spurt in Volume on BSE. The company has a market cap of over Rs 8,000 crore and has delivered good profit growth of 30 per cent CAGR over the last 5 years with a healthy dividend pay-out of 30 per cent. The shares of the company have a PE of 25x, an ROE of 22 per cent and an ROCE of 29 per cent. The stock is up by 40 per cent from its 52-week low of Rs 5,900 per share and has given multibagger returns of over 500 per cent per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.