Voltamp Transformers Q1 Results Review- Stellar Quarter; Long-Term Outlook Remains Strong: Prabhudas Lilladher

Prabhudas Lilladher Report

We revise our FY25/26E earning per share estimates by +9.2%/+11.5% factoring in strong volume growth and better margin profile and upgrade the rating to ‘Accumulate’ from Hold with a revised target price of Rs 14,922 (Rs 10,018 earlier). Voltamp Transformers Ltd. reported robust quarterly performance with 32.9% YoY revenue growth and Ebitda margin expansion of 281 basis points YoY to 17.7%.

Demand momentum is expected to sustain, driven by continued focus on infrastructure capex in the budget, with particular emphasis on energy security and transition to renewable energy. The enquiry pipeline remains healthy across sectors such as data centers, metals and steel, cement, commercial real estate, green energy, and oil and gas.

The company has announced 6,000 megavolt-amperes capacity expansion in power transformers to cater to growing transformer demand over the next five-six years, reinforcing the robust long-term outlook.

However, rising industrial metal prices, supply chain constraints in Cold Rolled Grain Oriented Steel material, and growing competitive intensity may impact margins in the near-to-medium term.

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