Atlanta Electricals Limited — Q4 FY26 earnings call

Call held 11 May 2026

Management summary

Atlanta Electricals delivered a strong Q4 and full year FY26, exceeding revenue growth targets and significantly expanding EBITDA margins. The company achieved debt-free status ahead of schedule and built a robust order book with increasing EHV contribution. Strategic focus remains on prototyping 400KV/765KV transformers, aggressive export market expansion, and capitalizing on new domestic verticals like BESS and Data Centers, while managing supply chain and operational efficiencies.

Highlights

  • Q4 FY26 Revenue from operations grew 81.7% YoY to INR 747.6 crores, and sequentially by 58.5% over Q3 FY26.

  • Q4 FY26 EBITDA increased by 117.9% YoY to INR 149.6 crores, with EBITDA margins expanding to 19.99% from 16.7% in Q4 FY25.

  • Full year FY26 Revenue from operations grew 48.8% YoY to INR 1851.5 crores, surpassing the targeted 40% growth trajectory.

  • All long-term debts, totaling INR 340 crores, were fully repaid as of March 31, 2026, ahead of the original repayment schedule.

  • The unexecuted order book stood at INR 2,493 crores as of March 31, 2026, providing strong execution visibility for FY27, with quality improving towards 220 and EHV plus transformers.

Concerns

  • A temporary mineral oil shortage in Q4 FY26, triggered by the West Asian conflict, affected the speed of the Vadod facility's operations.

  • Per MVA realizations are expected to drop in coming times as higher MVA products (400KV and 765KV) are introduced, due to their larger product size.

  • The data center business currently has no portion in the order book, although management views the opportunity as huge and sustainable.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹747.6 Cr
    YoY +81.7% QoQ +58.5%
  • EBITDA
    ₹149.6 Cr
    YoY +117.9%
  • EBITDA Margin
    20%
  • PAT
    ₹102.2 Cr
    YoY +128.9%

FY26

  • Revenue
    ₹1,851.5 Cr
    YoY +48.8%
  • EBITDA
    ₹344.4 Cr
    YoY +77.9%
  • EBITDA Margin
    18.6%
  • PAT
    ₹201.8 Cr
    YoY +70.1%

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

₹2,493 Cr

as of 2026-03-31 quantified

Execution

80-85% of current order book (220KV and below) to be executed in coming year (FY27); higher KV class orders booked this year for execution next financial year (FY28).

Composition

  • Price Variation Clause (contract type) 75%
  • 220KV and EHV plus transformers (product)
The unexecuted order book provides strong execution visibility for FY27, with improving quality towards higher value products and a significant portion covered by price variation clauses.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed entirely through internal accruals without any external borrowing, with a board-approved term loan facility available if required
    • Inverter Duty Transformer (IDT) facility (Unit 6) ₹65 Cr
    • Tank and radiator backward integration facility ₹170 Cr
    All ongoing capex are funded through internal accruals. Our ongoing capex programs, including the new inverter duty transformer facility and the tank and radiator backward integration initiatives, are presently being funded comfortably through internal accruals. ... As of today, our cash generation is sufficient to support the full capex roadmap without any external borrowing. ... So, for IDT it is around INR65 crores of capex and for backward integration, it is INR170 to INR180 crores of the capex.
  • Debt Net ₹0 Cr
    • Repayment Repayment of INR 130 crores term debt for Vadod plant and INR 210 crores for BTW acquisition, totaling INR 340 crores. ₹340 Cr
    As of 31st March '26, the closing balance on all term loans is nil.
  • Liquidity Cash ₹4.54 Cr Bank facilities enhanced from INR 910 crores to INR 1,320 crores, predominantly covering non-fund-based requirements.
    The balance of approximately INR4.54 crores lies in our public money account against remaining of our expenses yet to be claimed. ... And our overall bank facilities have been enhanced from INR910 crores to INR1,320 crores during the year, which predominantly covers non-fund-based requirements, providing us ample headroom to support our growth trajectory.

Guidance & targets

Revenue Growth

  • Revenue CAGR Revenue Growth · next 3 years · High confidence 40%
    Historically, we've been maintaining one stand that we would be growing at about 40% CAGR for next 3 years.

    — Niral Patel, Chairman and Managing Director

Profitability

  • EBITDA Margin Profitability · next financial year · High confidence 18-20%
    But as of today, we maintain a standard that it's going to be stable.

    — Niral Patel, Chairman and Managing Director

Capacity Utilization

  • Vadod Facility Utilization Capacity Utilization · FY27 · High confidence 65%

    Previously 39% → 65%

    We expect it to be 65% in this particular year and then eventually taking it to 100% in the next financial year.

    — Niral Patel, Chairman and Managing Director

  • Vadod Facility Utilization Capacity Utilization · next financial year (FY28) · High confidence 100%

    — Niral Patel, Chairman and Managing Director

Product Mix Margins

  • 400KV and 765KV Margins Product Mix Margins · Medium confidence 200 basis points higher
    margins or value addition of 400KV class, we expect that 400 and 765KV class would be around 200 basis points higher.

    — Niral Patel, Chairman and Managing Director

Export Revenue

  • Share of Total Revenue from Exports Export Revenue · next 3 years · High confidence 15%
    Arafat sir we have been maintaining this trend that in next 3 years' time, we have this target of taking our exports to 15% of the total revenue.

    — Anand Sharma, Chief Operating Officer

Working Capital

  • Net Working Capital Days Working Capital · going forward · Medium confidence 80s-90s

    Previously 64 → 80s-90s

    Naturally speaking, as we move up higher KV class execution, requirement of working capital will be there. It will increase for sure. That's the reason we were commenting every time that going forward in FY27 and FY28, our net working capital days will go up around 80s and 90s. However, during FY26, we could maintain our net working capital days at around 64.

    — Mehul Mehta, Chief Financial Officer

What to watch in Q1 FY27

765KV Tech Tie-up Closure

next couple of months (Q1 FY27)
Current In discussions with couple of agencies
Target Closure of tech tie-up

Why it matters

This is a key enabler for the development and market entry of 765KV transformers, crucial for future EHV growth.

We are in discussion with couple of agencies, name of which surely cannot be disclosed at this point in time. But we are in discussion with couple of agencies or companies to finalize this particular tech tie-up for 765KV. We are expecting it to be closed in next couple of months.

Risks & concerns

  • Mineral oil shortage due to geopolitical events

    medium

    Temporary shortage in Q4 FY26 due to West Asian conflict affected Vadod facility's speed, but mitigated by prioritizing green transformer production.

    Management acknowledged

  • Commodity price volatility and rupee depreciation

    medium

    Rising prices for copper, aluminum, crude oil, and smaller components are largely mitigated by price variation clauses in majority of contracts.

    Management mitigated

  • Long execution lead times for EHV orders

    low

    EHV orders carry execution lead times of 18 to 24 months, which means revenue recognition from these higher-value products will be delayed.

    Management acknowledged

Q&A highlights

7 direct
Margin sustainability with EHV product mix and overall margin guidance Direct
The improvement in margins is because of incremental production and scale-up that happened in the 220 kV segment, and that's where the capex was. But going forward, we see the margins being stable for times to come.

Clarifies that current margin expansion is due to 220KV scale-up, and future margins will remain stable despite higher EHV margins due to development costs.

Asked by Kunal Mehta

Per MVA realization trend with increasing EHV products Direct
Revenue per MVA is directly related to the commodity pricing, and commodity pricing is clearly — naturally hedged to the customer orders itself. So, if the commodity pricing goes up I'm talking about steel, copper, oil, etcetera the prices per MVA will relatively also go up. ... So, per MVA realization will drop.

Explains that per MVA realization is commodity-linked and will naturally decrease as higher MVA products (400KV/765KV) are introduced, providing clarity on a potentially confusing metric.

Asked by Kunal Mehta

Timelines for 765KV transformer development and tech tie-up Direct
This year, we would be spending huge amount of time to prototype 765KV class transformer and reactor and then, of course, entering in the market. Any orders that we are able to take or grab in this particular year will fall for invoicing in next particular considering the lead times that are there in the Indian market. ... We are expecting it to be closed in next couple of months.

Provides specific timelines for the critical 765KV product development and the expected closure of the technology tie-up, indicating future revenue streams.

Asked by Kunal Mehta

Funding and benefits of tank and radiator backward integration capex Direct
This financial year is when we're trying to commence this tank and radiator manufacturing facility. It's a completely robotic investment that we're doing so that we can achieve good quality of automation and quality control. ... The benefits would be coming in next year for sure.

Clarifies that the capex is for strategic supply chain control and quality improvement for exports, not margin accretion, with benefits expected next year.

Asked by Kunal Mehta

Competitive landscape and demand outlook given industry-wide capex Direct
India has been setting up newer and newer targets and a higher and higher targets for the power generation. ... I am sure that whatever amount of capacity Indian manufacturers are going to put up, it is going to still fall short of the requirement. The requirement is going to edge over the supply side for at least next 5 years for sure.

Reassures investors that despite increased industry capacity, demand from power generation targets and exports will outstrip supply for the foreseeable future.

Asked by Arafat Saiyed

Data center opportunity and its contribution to the order book Partial
As of now, there is no portion of data center business in our kitty. We are in discussion with different customers, potential customers to explore this particular market. But yes, to confirm as on date, there is no single order related to data centers in our kitty. ... It is looking to be huge.

Highlights a significant potential growth vertical that is not yet contributing to the order book, indicating future opportunities but also current lack of concrete wins.

Asked by Parikshit Kandpal

Impact of commodity price volatility and rupee depreciation on margins Direct
So, our organization's strength has been that we are having majority of our orders with the price variation clause. ... So, whatever price increase we are seeing in the commodities, different commodities, we are able to pass it through to the customers with the help of the price variation clause... No, nothing. We have not taken any hit in the previous quarter.

Confirms that the company's strategy of including price variation clauses in most contracts effectively mitigates the impact of raw material price increases and currency fluctuations, safeguarding margins.

Asked by Parikshit Kandpal

BESS opportunity for Atlanta and type of transformers required Direct
It's a converter duty transformer wherein the power flows in bi-directional, but it is a transformer that can be routinely designed by Atlanta Electricals. ... We have BESS orders in our order book. So, in times to come, we would be definitely supplying.

Clarifies the technical requirements for BESS (converter duty transformers) and confirms that Atlanta has the capability and existing orders in this emerging, high-growth segment.

Asked by Aditya Vora

2 min read 5 chapters

Detailed narrative

Exceptional Financial Performance and Margin Expansion

Atlanta Electricals reported a robust Q4 FY26 with revenue from operations growing 81.7% YoY to INR 747.6 crores and EBITDA increasing by 117.9% YoY to INR 149.6 crores. EBITDA margins expanded significantly to 19.99% from 16.7% in Q4 FY25. For the full year FY26, revenue grew 48.8% YoY to INR 1851.5 crores, comfortably exceeding the 40% growth target. Full-year EBITDA expanded by 300 basis points to 18.6%, reaching INR 344.4 crores, driven by operating leverage, a richer product mix tilting towards 220KV class (now 52% of revenue), and improved procurement efficiency.

Debt-Free Status and Prudent Capital Allocation

The company achieved a significant milestone by fully repaying all long-term debts, totaling INR 340 crores (INR 130 crores for Vadod and INR 210 crores for BTW acquisition), as of March 31, 2026, ahead of schedule. This repayment was funded through IPO proceeds, internal accruals, and general corporate funds. All ongoing capex, including the new Inverter Duty Transformer (IDT) facility (estimated INR 65 crores) and tank/radiator backward integration (estimated INR 170-180 crores), is being comfortably funded through internal accruals, with a healthy FY26 operating cash flow of INR 184 crores.

Strategic Entry into EHV Market and Capacity Expansion

The new Vadod facility (Unit 4) contributed 6,960 MVAs in its first seven months of operation, reaching approximately 39% of its 30,000 MVA nameplate capacity. Atlanta Electricals received PGCIL approval for manufacturing up to 400KV at Vadod on April 2, 2026, and secured its first 400KV order in FY26. The company's FY27 priorities include prototyping 400KV (Vadod) and 765KV (Ankhi) transformers, which are considered gateways to a significantly larger addressable EHV market with 18-24 month execution lead times. Vadod facility utilization is targeted to reach 65% in FY27 and 100% in FY28.

Robust Order Book and Diversified Growth Drivers

The unexecuted order book stood at INR 2,493 crores as of March 31, 2026, providing strong execution visibility for FY27, with new order bookings of INR 2,507 crores in FY26. Approximately 75% of the order book is covered by price variation clauses, mitigating commodity price volatility. The company anticipates sustained demand from new verticals like Battery Energy Storage Systems (BESS), Data Centers, and Renewable Power Generation, which are expected to add meaningful diversification and durability to the domestic demand outlook, with demand projected to outstrip supply for at least the next 5 years.

Aggressive Export Push and Operational Efficiencies

Atlanta Electricals plans an aggressive push into export markets in FY27, targeting 15% of total revenue from exports within the next three years, building on its first sizeable export order received in FY26. To enhance operational efficiency and quality for exports, the company will commence tank and radiator manufacturing plants during FY27 as a backward integration initiative, located close to the Vadod facility. This will provide tighter control over the supply chain, improved quality, and cost benefits.

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