Voltamp Transformers' net profit halved to ₹48 crore from ₹97 crore in the year-ago period, according to reports from CNBC TV18 and The Economic Times. The company attributed this decline to restricted capacity and lower realisations that impacted overall profitability. The latest quarter also saw one-time provisions of ₹10.35 crore - ₹4.85 crore for compliance with revised Labour Code and ₹5.50 crore for target-linked group incentives for employees. Despite the significant profit drop, the company maintained its revenue base compared to the previous year.
The company's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined by 30% to ₹81.4 crore from ₹116.3 crore in the same quarter last year, as reported by CNBC TV18. EBITDA margin narrowed by over 500 basis points to 13.2% from 18.6% in the previous year, indicating significant pressure on operational efficiency. The margin compression was further impacted by rupee depreciation raising costs of imported raw materials, sharp increases in critical component costs as vendors shifted focus to export markets, and steep rise in transformer oil prices driven by Middle East conflict. FY26 margins stood at 16.5% compared to 18.93% in FY25.
Revenue for the quarter stood at ₹617.2 crore, representing a 1.2% decline from last year's figure of ₹624.8 crore, according to CNBC TV18 and The Economic Times. However, for the full year, revenue gained 11% to ₹2,153.69 crore. The company had expected revenue growth to be lower due to weak execution and lower realisations in the market, which contributed to the overall revenue decline despite maintaining the same revenue base as the previous year. Other income was impacted during the quarter due to negative mark-to-market gains on long-term government securities and mutual fund schemes as interest rates rose.
Shares of Voltamp Transformers tumbled as much as 20% to ₹10,046 on the BSE on Tuesday following the earnings announcement, as reported by The Economic Times. The stock was trading at ₹10,164 after the earnings announcement. Despite this significant decline, the stock is still 30% higher on a year-to-date basis, indicating some resilience in longer-term performance despite current quarter challenges. The company has entered FY27 with a strong order backlog of ₹1,200 crore (10,270 MVA) and secured fresh orders worth ₹310 crore (2,107 MVA) in April 2026.
The company is progressing with its new power transformer facility construction, expected to be operational from July 2026. Additionally, the board has approved an investment of ₹25 crore for acquiring land near Vadodara to build a future land bank, which will be funded through internal accruals. The enquiry pipeline remains robust, supporting the company's optimistic outlook despite current quarter challenges. The company noted that its investment strategy remains long-term in nature, with recent volatility being largely accounting-related rather than reflective of underlying performance.
