Atlanta Electricals Limited — Q1 FY27 earnings call

Call held 22 Jul 2026

Management summary

Atlanta Electricals Limited reported a strong Q1 FY27, with significant year-on-year growth in revenue, EBITDA, and PAT, driven by volume and expanded manufacturing capacity. The company achieved a record order inflow and built a robust order book, providing healthy revenue visibility. While Q1 saw a sequential moderation due to seasonality, the company remains focused on strategic initiatives like EHV/UHV transformer development, export expansion, and backward integration to sustain long-term growth and margin stability.

Highlights

  • Consolidated revenue grew 48% year-on-year to INR466.33 crores, driven by volume and new manufacturing facilities.

  • EBITDA increased 58.1% year-on-year to INR77.10 crores, with margin expanding to 16.5% from 15.5% in Q1 FY26.

  • Profit after tax grew 50.4% year-on-year to INR46.84 crores, and EPS increased 40% to 6.09 per share.

  • Achieved highest-ever quarterly order inflow of INR972.42 crores, bringing the outstanding order book to INR3,116.63 crores as of June 30, 2026.

  • Secured Power Grid approval for 400 kV class transformers at Vadod facility Unit 4, and expects commercial contribution from 400 kV portfolio from next financial year.

Concerns

  • Revenue declined 37.6% quarter-on-quarter, and EBITDA margin normalized from 20% in Q4 FY26 to 16.5% in Q1 FY27, reflecting the seasonal softness of Q1.

  • Raw material prices continue to witness upward pressure due to geopolitical environment, expected to persist in coming quarters, though costs are being passed on.

Key financials

  1. Revenue from Operations ₹466.33 Cr +48%YoY
  2. Gross Profit ₹127.2 Cr +55.5%YoY
  3. Gross Margin 27.3%
  4. EBITDA ₹77.1 Cr +58.1%YoY
  5. EBITDA Margin 16.5%
  6. Profit After Tax ₹46.84 Cr +50.4%YoY
  7. PAT Margin 10%
  8. EPS ₹6.09 +40%YoY
  9. Sales-based Capacity Utilization 4,381 MVA

What they filed

Q1 FY27: revenue up 47.9%, net profit up 51.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue270 263 411 315 317 +17%472 +79%748 +82%466 +48%
EBITDA42 42 69 49 55 +31%91 +117%150 +117%77 +57%
Net profit27 22 45 31 25 −7%43 +95%102 +127%47 +52%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹3,116.63 Cr

as of 2026-06-30 quantified

Inflow this quarter

₹972.42 Cr

Execution

INR2,400 crores expected for execution in current financial year.

Composition

  • Transformers rated 220 kV (product) 55%
  • 400 kV transformers and reactors (product) ₹275 Cr

Pipeline

L1 awaiting loa

Atlanta is L1 in some cases, but PSU/private entities take time for order conversion.

The company achieved its highest-ever quarterly order inflow in Q1 FY27, leading to a robust order book with strong revenue visibility, particularly in higher capacity products.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex ₹180 Cr Remaining amount from INR180 crores capex plan will be funded through debt or internal accruals.
    • Tank and radiator manufacturing facility (backward integration) ₹15 Cr
    • Inverter duty transformer manufacturing facility
    So close to about INR15 to 20 crores is what we've invested as of as we speak... Okay. And the remaining amount, we are planning to take any debt or it will be through internal accrual?
  • Liquidity Liquidity disclosed Net working capital stood at 72 days, with inventory days at 105, receivable days at 88, and payable days at 110. This translates into a cash conversion cycle of approximately 83 days.
    Our working capital profile remains stable. As of the end of the quarter, net working capital stood at 72 days, with inventory days at 105, receivable days at 88, and payable days at 110. This translates into a cash conversion cycle of approximately 83 days, which remains broadly in line with the previous quarter, reflecting disciplined working capital management despite the increase in business scale.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY27 · High confidence 40% YoY
    Sir, we maintain that 40% CAGR growth year-on-year in the revenue terms. So last year was INR1,851, and we can put a 40% year-on-year growth on that number for this year.

    — Mehul Mehta

Margin

  • EBITDA Margin Margin · Ongoing · High confidence 17-18%
    expect the margin somewhere around 17 to 18% as we always convey to our investors.

    — Mehul Mehta

Exports

  • Export Revenue Contribution Exports · medium term (next 3 years) · Medium confidence 15%
    Over the medium term, we aspire for exports to contribute approximately 15% of our revenue, helping us diversify both our customer base and our geographical footprint.

    — Niral Patel

Product Development

  • 765 kV Orders Product Development · by end of current financial year (last quarter of FY) · Medium confidence Doors to open
    We expect those doors to open by end of this financial year or say in the last quarter of this financial year.

    — Niral Patel

  • 400 kV Transformer Commercial Contribution Product Development · from next financial year · High confidence Commence
    While these developments represent important operational milestones, we expect meaningful commercial contribution from 400 kV transformers portfolio to commence from next financial year.

    — Anand Sharma

Capacity

  • Inverter Duty Transformer Facility Commissioning Capacity · before end of current calendar year · High confidence Commissioned
    Construction activities at our dedicated inverter duty transformer manufacturing facility are advancing well, and we remain on track to commission the facility before the end of current calendar year.

    — Anand Sharma

Growth

  • CAGR Growth Growth · coming 3 years · High confidence 40%
    Sir, we went public about an year ago, not more than I mean 9 months ago and we have been maintaining 40% CAGR for coming 3 years and with stable margins.

    — Niral Patel

What to watch in Q2 FY27

765 kV PGCIL approval for technical tie-up

By end of Q2 FY27
Current Approval process in place, advanced talks with technical partner.
Target Approval received.

Why it matters

Crucial for entering the EHV transformer segment, expanding addressable market, and achieving higher margins.

The approval process is in place. We are in very advanced talks with our technical partner. As soon as we close the agreement, I think the approvals will be a fast-track mechanism... Okay. So broadly, should we expect end of second quarter for us to have approval from PGCIL for 765 kV? Certainly.

Risks & concerns

  • Raw material price volatility due to geopolitical environment

    medium

    Upward pressure on raw material prices is expected to persist, but the company has been able to pass on a significant portion of these incremental costs to protect margins.

    Management acknowledged

  • Increased competition from Chinese power equipment manufacturers in PSU tenders

    low

    No material impact on pricing, bidding intensity, or market dynamics has been observed yet, and management believes it's too early to assess long-term competitive implications.

    Analyst downplayed

Q&A highlights

7 direct
Impact of competitors' capacity additions on order inflow and margins Direct
So far, sir, we have witnessed the highest possible order inflow in quarter one in the first quarter in at least the last two to two and a half years. So we don't see any impacts on the order inflow, neither do we see any correction on the pricing terms when we consider Atlanta Electricals. Nothing of that sort is visible in the market.

Addresses concerns about increased competition and its potential impact on the company's market position and profitability, with management asserting no negative impact.

Asked by Mihir Manohar (Trust Mutual Fund)

Status and timeline for 765 kV PGCIL approval and bidding Direct
The approval process is in place. We are in very advanced talks with our technical partner. As soon as we close the agreement, I think the approvals will be a fast-track mechanism... Okay. So broadly, should we expect end of second quarter for us to have approval from PGCIL for 765 kV? Certainly.

Provides a clear timeline for a key strategic initiative (EHV transformers) that will significantly expand the addressable market and revenue visibility.

Asked by Mihir Manohar (Trust Mutual Fund)

Raw material pricing pressure and inventory strategy Direct
Regarding the raw material pricing and inventory, yes, we are picking up the inventory, but it is not like it is for the whole year. It is for the coming quarter, the orders which are getting executed current quarter only... We believe in a principle that we buy the material on job-to-job basis only. We are in the business of manufacturing transformers and not speculating on the raw material price.

Clarifies the company's approach to raw material procurement amidst price volatility and its impact on gross margins, emphasizing a non-speculative strategy.

Asked by Kunal Mehta (Incred Equities)

Impact of Chinese power equipment manufacturers in PSU tenders Direct
Only one company which is manufacturing transformers... we have not witnessed any participation as yet. But knowing the facility they have and the kind of load they have at the moment, we possibly do not see why would they be, let's say, going to fill more orders from the Indian PSUs with lower margin. We do not see any logic in that actually.

Addresses a significant industry-level risk regarding increased competition from Chinese players, with management currently assessing no material impact on pricing or market dynamics.

Asked by Mayank Chaturvedi (HSBC)

Timeline for commissioning and revenue contribution from the Inverter Duty Transformer facility Direct
By end of third quarter this financial year, so by December end is when our targets are to commission the inverter duty transformer facility so that they can start [inaudible 0:38:23].

Provides a specific timeline for a new capacity addition aimed at serving the growing renewable energy and EV charging sectors.

Asked by Chandan Mishra (Finvestors)

Strategy for winning large PGCIL orders and the company's positioning Direct
So, sir, there is a huge backlog with Power Grid and so such kind of orders can be expected and should be expected in near future as well... When we do that, Atlanta would be well-positioned in the industry to crack 400 kV class orders and which we know are certainly higher in terms of value, providing us a good amount of visibility a longer visibility in the market.

Explains the company's strategy to capitalize on large infrastructure projects and move into higher-value segments, leveraging its upcoming 400 kV capabilities.

Asked by Jainam (Saltoro Investment)

Margin differential between 220 kV and EHV (400/765 kV) transformers Partial
Prathmesh sir, we expect that 400 kV and 765 kV class transformers would help us earn better margins as compared to 220 kV or 132 kV. But as we have been telling, as we have been speaking, that on our part it is not right to comment as to what kind of margins would we be earning from the 400 and 765 kV product since we are going to manufacture these products for the first time.

Highlights the expected margin benefits from moving into higher-value products, though specific numerical guidance is withheld until initial production.

Asked by Prathmesh Salunkhe (Nippon Life)

Export strategy, targets, and impact on margins/working capital Direct
Sir, we are targeting to have 15% of the revenue coming in from the export market in next three years' time... We are expecting better margins to come from the export market which will help us to maintain the margin profile we have been assuring, committing to the market till date.

Details the company's international expansion plans and its rationale for diversifying revenue streams and improving margins, targeting 15% of revenue from exports.

Asked by Anuj Shah (PhillipCapital)

2 min read 6 chapters

Detailed narrative

Strong Q1 FY27 Performance Driven by Volume Growth

Atlanta Electricals reported a robust Q1 FY27, with consolidated revenue from operations growing 48% year-on-year to INR466.33 crores, up from INR315.11 crores in Q1 FY26. This growth was primarily volume-driven, supported by the commissioning and ramp-up of new manufacturing facilities, which significantly expanded production capacity. Gross profit increased by 55.5% year-on-year to INR127.20 crores, with gross margin improving by 130 basis points to 27.3% from 26% in Q1 FY26.

Significant Margin Expansion and Profitability

The company achieved a 58.1% year-on-year increase in EBITDA, reaching INR77.10 crores, and expanded its EBITDA margin to 16.5% compared with 15.5% in Q1 FY26. This margin expansion was attributed to operating leverage from higher production volumes and a continued improvement in product mix, including increased production of 220 kV class transformers. Profit after tax grew 50.4% year-on-year to INR46.84 crores, with PAT margin improving to 10% and EPS increasing 40% to 6.09 per share.

Record Order Inflow and Robust Order Book

Atlanta Electricals recorded its highest-ever quarterly order inflow of INR972.42 crores, leading to an outstanding order book of INR3,116.63 crores as of June 30, 2026. Management expects INR2,400 crores of this order book to be executed in the current financial year, providing strong revenue visibility. Key orders secured included INR291.68 crores from RVPNL for power transformers and INR285.15 crores from PSTCL for 23 numbers of 160 MVA 220/66 kV power transformers.

Strategic Focus on EHV Transformers and Capacity Expansion

The company is strategically moving up the transformer value chain, with its Vadod facility Unit 4 receiving Power Grid approval for 400 kV class transformers. Engineering for a 315 MVA transformer order is complete, with commercial contribution from the 400 kV portfolio expected from the next financial year. Furthermore, the inverter duty transformer manufacturing facility is on track for commissioning by the end of the current calendar year, adding approximately 5,000 MVA of capacity to cater to renewable energy and EV charging sectors.

International Expansion and Margin Sustainability

Atlanta Electricals aims to expand its international presence across Europe, Africa, and the US, targeting exports to contribute approximately 15% of its revenue in the medium term. Management expects this diversification to mitigate overcapacity risks and contribute to better margins, helping to maintain the overall margin profile at 17-18%. Despite upward pressure on raw material prices, the company has been able to pass on significant costs due to price variation clauses in its contracts.

Q1 Seasonality and Working Capital Management

The first quarter is typically softer for the business, leading to a sequential decline in revenue by 37.6% and normalization of EBITDA margin from 20% in Q4 FY26 to 16.5% in Q1 FY27. The company strategically increased inventory to support production ramp-up, resulting in net working capital of 72 days and a cash conversion cycle of approximately 83 days. This reflects disciplined working capital management despite the increase in business scale.

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