Highlights
| Issue Size – 91,15,934 shares | Issue Open/Close – 22 Sept / 24 Sept, 2025 |
| Price Band (Rs.) 718 – 754 | Issue Size (Rs.) ~ 6,873 mn |
| Face Value (Rs) – 2 | Lot Size (shares) 19 |
Atlanta Electricals Limited (AEL) incorporate in 1996, engaged in the business of manufacturing of power, auto and inverter duty transformers in India, is among the few companies in India, manufacturing transformers up to and including 500 Mega Volt-Amp (MVA) capacity and with 765 kilovolts (kV) voltage.
The company had an installed capacity of 16,740 MVA across three facilities in Anand (Gujarat) and Bengaluru (Karnataka) as of FY25. A new facility in Vadod, Gujarat, expanded this to 47,280 MVA, and with the addition of the Ankhi facility (15,780 MVA) of BTW-Atlanta Transformers, a wholly owned subsidiary, the company’s total capacity further increased.
The company reported a customer base across 19 states and three union territories in India, with the supply of 4,400 transformers aggregating to 94,000 MVA, delivered to various state and national electricity grids, private sector players, and prominent renewable energy generation projects and construction companies as of FY25.
AEL has cultivated relationships with 208 customers, of which 21 are public sector undertakings and 187 are private sector players. The company’s order book stood at ~Rs 16,429 mn as of FY25, with public sector undertakings contributing about 82 pct and private players contributing about 18 pct.
Out of the total proceeds of approximately Rs. 6,873 mn, Rs. 2,100 mn will be allocated to meet working capital requirements, around Rs. 791 mn will be used for the repayment of certain borrowings, and about Rs. 1,109 mn will be allocated for general corporate purposes, while approximately Rs. 2,873 mn will go to the existing selling shareholders of the company.
Key Highlights
- The global transformer market is expected to reach over USD 97 bn by 2030 at an annual growth rate of ~7.3 pct between 2024 -2030. India’s current share in total global transformer market as on December 2024 was about 8-10 pct which is expected to increase to 10-12 pct by 2030.
- AEL supply a wide range of power transformers starting from 5 MVA/11 kV up to 200 MVA/220 kV, as well as auto transformers, inverter duty transformers, furnace transformers, generator transformers, and special duty transformers.
- AEL reported an order book valued at approximately Rs. 16,430 mn at FY25. A majority of these orders, about Rs. 13,485 mn, were secured from government and public sector clients, while private sector contributions amounted to roughly Rs. 2,944 mn.
- The company’s success rate in winning government tenders declined to 18 pct in FY25 from 29.03 pct in FY24. Given that the company’s operations are heavily influenced by government policies on power generation, transmission, and distribution, fluctuations in government spending or changes in policy could significantly impact its business.
- AEL operate five manufacturing facilities, of which four are fully operational, including two in Anand (Gujarat), one in Bengaluru (Karnataka), and Its Vadod unit in Gujarat that began commercial production in July 2025. These four facilities together cover 1,094,282 sq. ft. with a total capacity of 47,280 MVA. Additionally, with the acquisition of BTW-Atlanta Transformers Private Limited, the company added a facility at Ankhi, spanning 904,436.70 sq. ft. with a capacity of 15,780 MVA, taking total installed capacity across all five facilities to 63,060 MVA.
- AEL’s key strategies includes (i) Capital expenditure to achieve capacity expansion and focus on being backward integrated (ii) Continue to expand its customer base beyond India and increase wallet share (iii) Increase market share with improved utilisation levels (iv) Continue to enhance its brand through innovative and focused marketing initiatives
- Sales of the company has grown by 19.3 pct CAGR over FY23-25 and EBITDA and Profit grew by 17.4 pct CAGR and 16.4 pct CAGR over same period. During FY25 the sales of the company jumped by 43.4 pct YoY to Rs. 12,442 mn. While EBITDA of the company grew by 63.1 pct YoY to Rs. 1,936 mn and EBITDA margin expanded by 188 bps YoY to 15.56 pct in FY25. During FY25, the company reported profit of Rs. 1186 mn, which grew 87.3 pct YoY.
Key Risk
- The company’s growth depends on adequate working capital; shortages, poor demand forecasting, or inventory issues could hurt performance and financial health.
- A large portion of revenue comes from government tenders, with success rates of 25.42 pct, 29.03 pct, and 18.00 pct in FY 2023–2025; losing contracts could weaken performance.
- AEL is heavily dependent on a few customers and suppliers, and any loss of these relationships or changes in the supply and cost of key raw materials and traded goods could adversely affect its business, financial condition, and operations.
Financial Performance
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales (Rs. mn) | 8739 | 8676 | 12442 |
| EBITDA (Rs. mn) | 1403 | 1187 | 1936 |
| EBITDA Margin % | 16.1% | 13.7% | 15.6% |
| Profit (Rs. mn) | 875 | 634 | 1187 |
| Profit Margin % | 10.1% | 7.3% | 9.5% |
| ROE % | 53.1% | 27.8% | 33.9% |
| ROCE % | 58.05% | 42.30% | 39.40% |
Valuation
Atlanta Electricals Limited, a transformer manufacturer in India specializing in power, auto and inverter duty transformers and among the few companies in India, manufacturing transformers up to and including 500 Mega Volt-Amp (MVA) capacity and with 765 kilovolts (kV) voltage.
At the upper end of the price of Rs. 754, the issue quotes PE of 48.8x on FY25 post issue earning. The issue looks fully priced.
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