Atlanta Electricals Limited — Q3 FY26 earnings call

Call held 20 Jan 2026

Management summary

Atlanta Electricals delivered a strong Q3 FY26, with revenue and EBITDA growing significantly, supported by recent capacity expansions and a favorable product mix. The company achieved a record order book of INR2,451 crores, ensuring robust revenue visibility. While new facility utilization is ramping up and finance costs are elevated, management is focused on strategic execution in higher-voltage segments and debt reduction, with plans for backward integration to further enhance efficiency.

Highlights

  • Revenue of INR472 crores in Q3 FY26, up 80% YoY and 49% QoQ, driven by new facility contribution and high utilization.

  • EBITDA of INR91 crores in Q3 FY26, up 120% YoY, with EBITDA margin expanding 350 bps to 19.4% due to operating leverage and favorable product mix.

  • All-time high order book of INR2,451 crores as of December 31, 2025, providing strong execution visibility.

  • Q3 FY26 order intake of INR796 crores, including significant orders from GETCO (INR298 crores), Adani Green Energy (INR134 crores), and BNC Power Projects (INR184 crores).

  • Successful entry into the export market with a first significant order of INR20 crores.

Concerns

  • Vadod facility, which contributed one-third of quarterly revenue, operated at a capacity utilization of only ~30% in Q3 FY26.

  • Finance costs increased to INR20 crores in Q3 FY26 due to interest on term loans for Vadod and BTW acquisitions.

  • Management is strategically delaying taking further 400 kV class orders until the first one is executed and proven, potentially impacting immediate order book growth in that segment.

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹472 Cr
    YoY +80% QoQ +49%
  • EBITDA
    ₹91 Cr
    YoY +120%
  • EBITDA Margin
    19.4%
  • PAT
    ₹43 Cr
    YoY +95%
  • Finance Cost
    ₹20 Cr

9M FY26

  • Revenue
    ₹1,104 Cr
    YoY +33%
  • EBITDA
    ₹195 Cr
    YoY +56%
  • EBITDA Margin
    17.7%
  • PAT
    ₹100 Cr
  • Sales Volume
    13,500 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.

Segment breakdown

  • 9M FY26 Sales Volume by kV Class
    45% 220 kV Class19% 132 kV Class32% 66 kV Class

Order book

high confidence

Total value

₹2,451 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹796 Cr

Execution

anticipated to be executed within next one and a half year. It will be blended, few orders will be completed this year itself, and few will be spilled over to next year.

Composition

Mix 3 client types
  • GETCO (State Utility) ₹298 Cr 48.4%
  • Adani Green Energy (Renewable) ₹134 Cr 21.8%
  • BNC Power Projects (EHV) ₹184 Cr 29.9%

Share of order book by client type, derived from disclosed amounts

Pipeline

deal pipeline tcv

Order pipeline across the board

The strong financial performance is underpinned by robust order inflows, with the order book providing strong execution visibility over the next quarter.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • Backward integration (radiators and tank integrations)
    We are also in the process of doing a backward integration capex, which is also disclosed in the DRHP that we filed with SEBI. The backward integration projects are under planning stage as of now, and we intend to start the capex possibly by Q1 of next year.
  • Debt Gross ₹186 Cr
    • Repayment Repaid Vadod term loan fully and part of loan for BTW acquisition.
    • Repayment Project to repay INR65.57 crores long-term debt this fiscal year. ₹65.57 Cr
    Current long-term debt sitting on the book as on 31st December is INR65.57 crores. This is primarily for the loan, which was taken for BTW acquisition. And working capital short-term loan, it is INR120 crores as on 31st December. Total tallies to INR186 crores as on 31st December.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY26 · High confidence 40%
    we have been maintaining that there is a 40% growth ratio that Atlanta has always been maintaining historically. And we intend to continue with the same 40% this year. Nothing less than 40% is what we would expect. We are at about 33% as on today.

    — Niral Patel

Order Intake

  • Quarterly Order Intake Order Intake · Q4 FY26 · High confidence INR600 crores

    Previously INR700 crores → INR600 crores

    Approximately INR700 crores is our quarterly intake. We expect that to be about INR600 crores quarterly intake this quarter also.

    — Niral Patel

Debt

  • Long-term Debt Repayment Debt · FY26 · High confidence INR65.57 crores
    However, this INR65 crores long-term debt, we project and we wish to repay during this fiscal year only.

    — Mehul Mehta

Capex

  • Backward Integration Capex Start Capex · Q1 FY27 · High confidence Q1 next year
    The backward integration projects are under planning stage as of now, and we intend to start the capex possibly by Q1 of next year.

    — Niral Patel

What to watch in Q4 FY26

Power Grid approval for Vadod facility (Unit 4)

Next quarter (Q4 FY26 / Q1 FY27)
Current Assessment dates received, audit to finish this month (Jan 2026)
Target Audit completed, fresh approval received

Why it matters

Essential for full operationalization and revenue recognition from new capacity.

We have got the assessment dates from the Power Grid for our Vadod facility, which is unit 4. So, we are expecting to finish that assessment audit within this particular month only.

Risks & concerns

  • Potential easing of restrictions on Chinese bidders in government contracts

    medium

    Government is considering allowing overseas parties in tenders, but fully finished transformers from China are unlikely to be allowed, and local manufacturing/content requirements remain.

    Analyst acknowledged

  • Execution delays and right-of-way issues for transmission infrastructure projects

    medium

    National-level issue with delays due to execution, weather, and right of way, but the company's manufactured product movement is not currently affected.

    Analyst acknowledged

  • Commodity price volatility impacting margins

    low

    For large transformers, price variation clauses protect margins; for smaller transformers, material rates are considered at the time of order booking.

    Analyst downplayed

Q&A highlights

6 direct
Impact of potential easing of restrictions on Chinese bidders in government contracts Partial
As far as Chinese participation is concerned, we also are told that fully finished transformers possibly would not be allowed to be imported.

Clarifies the company's competitive landscape and potential protection for local manufacturers against Chinese imports.

Asked by Kunal Sheth

Sustainability of EBITDA margins given commodity price hikes Direct
Commodity prices for transformer manufacturing, when we are talking about large transformers... majority of them are driven through price variation to us and there is a price pass through mechanism. And hence, the commodity prices do not end up squeezing the gross margins.

Reassures investors about margin resilience, particularly for higher-value products, due to contractual protections.

Asked by Nikhil Abhyankar

Power Grid approval status for new Vadod facility and re-approval for Atlanta Trafo Direct
We have got the assessment dates from the Power Grid for our Vadod facility, which is unit 4. So, we are expecting to finish that assessment audit within this particular month only... once we are done with the approval process of Vadod facility, we shall initiate a dialogue with Power Grid for the re-approval of the Atlanta Trafo facility.

Provides a clear timeline for critical regulatory approvals necessary for full operationalization and order execution from new capacities.

Asked by Anuj Shah

Strategic approach to taking 400 kV class orders and its impact on future order inflow Direct
We have taken a very bold move of not to take further 400 kV class orders till we execute our first order... As soon as we open up and we develop the first 400 kV class transformer, the order intake will substantially improve because 400 kV class orders do last for about two years.

Highlights a cautious but strategic entry into higher-voltage segments, prioritizing proven execution which is expected to drive significant future order book growth.

Asked by Viral Shah

Capacity utilization of the new Vadod facility in Q3 FY26 Direct
Sir, it's close to 30%.

Indicates the current ramp-up phase of new capacity, suggesting significant headroom for future revenue growth as utilization improves.

Asked by Vignesh Iyer

Plans for backward integration capex and its expected timeline Direct
The backward integration projects are under planning stage as of now, and we intend to start the capex possibly by Q1 of next year.

Signals strategic moves to enhance operational efficiency and potentially improve margins by insourcing key components.

Asked by Balasubramanian

Current debt levels and plans for debt reduction in the current fiscal year Direct
Current long-term debt sitting on the book as on 31st December is INR65.57 crores... and working capital short-term loan, it is INR120 crores... this INR65 crores long-term debt, we project and we wish to repay during this fiscal year only.

Clarifies the company's debt structure and commitment to reducing long-term debt, addressing concerns about finance costs.

Asked by Jainam

2 min read 6 chapters

Detailed narrative

Strong Q3 FY26 Performance Driven by Capacity Expansion

Atlanta Electricals reported robust Q3 FY26 results, with revenue surging 80% year-on-year to INR472 crores and EBITDA increasing 120% year-on-year to INR91 crores. This strong performance was attributed to the company's significant capacity expansion, which saw manufacturing capabilities grow four-fold from 16,000 MVA to 63,000 MVA over the past 18 months. The new Vadod facility, which commenced production in July, contributed approximately one-third of the quarterly revenue, marking a new growth chapter for the company.

Margin Expansion and Product Mix Benefits

The company achieved a notable EBITDA margin expansion of 350 basis points, reaching 19.4% in Q3 FY26, up from 15.8% in the prior year. This improvement was driven by operating leverage from higher volumes, economies of scale, and a favorable product mix, particularly from higher kV class transformers. Management indicated that margins for large transformers are sustainable due to price variation clauses that protect against commodity price fluctuations, ensuring that commodity prices do not squeeze gross margins.

Record Order Book and Strong Inflows

Atlanta Electricals achieved an all-time high order book of INR2,451 crores as of December 31, 2025, providing strong revenue visibility for the next 1.5 years. Q3 FY26 saw significant order intake of INR796 crores, including major wins from GETCO (INR298 crores), Adani Green Energy (INR134 crores), and BNC Power Projects (INR184 crores). The company also secured its first significant export order of INR20 crores, marking an important milestone in its global expansion efforts.

Strategic Focus on Higher Voltage and New Demand Segments

The company is strategically positioned to capitalize on India's energy transition and infrastructure modernization, focusing on higher voltage segments (400 kV and 765 kV) which offer better margins and face higher entry barriers. New demand segments like data centers, green hydrogen, EV charging, and battery storage systems are emerging, creating incremental demand for power transformers. Atlanta Electricals is equipped to supply transformers for these segments, including pooling transformers for BESS projects.

Cautious Approach to 400 kV Orders and Capacity Utilization

While the company has expanded its capacity to handle 400 kV and 765 kV class transformers, management is taking a cautious approach, delaying further 400 kV orders until the first prototype is executed and proven. The Vadod facility, despite contributing INR160 crores in Q3 revenue, operated at approximately 30% utilization, indicating significant headroom for future growth as operations scale up. The Ankhi unit (Unit 5) is expected to start contributing in Q4 FY26.

Debt Management and Backward Integration Plans

As of December 31, 2025, the company's total debt stood at INR186 crores, comprising INR65.57 crores in long-term debt (primarily for BTW acquisition) and INR120 crores in working capital short-term loans. Finance costs increased to INR20 crores in Q3 due to interest on term loans, but management plans to repay the INR65.57 crores long-term debt by the end of FY26. Additionally, the company is planning backward integration capex for components like radiators and tanks, expected to commence in Q1 FY27, aiming for improved efficiency.

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