Voltamp Transformers jumps after steady Q2 numbers

Voltamp Transformers shares surged 9% to Rs 7,811.75 after the company reported a resilient Q2 FY26 performance marked by higher revenue, steady profitability, and a robust order pipeline.

Net sales and services income rose 21% year-on-year to Rs 482.6 crore, compared with Rs 397.7 crore in Q2 FY25, aided by strong execution momentum. However, other income dropped 54% YoY to Rs 14.8 crore, resulting in a total income of Rs 497.3 crore, up 16% from Rs 429.8 crore last year.

Net profit before tax stood at Rs 104.2 crore, nearly flat YoY due to a decline in investment income. Investment income tumbled 54% YoY to Rs 14.19 crore in Q2FY26. Over the past two years, the company had strategically allocated a sizable portion of its surplus funds into long-term Government securities and long-duration debt mutual fund schemes during the peak of the interest rate cycle. However, a rise in G-Sec yields during the September quarter compared to Q1 FY26 resulted in mark-to-market losses, impacting investment returns for the period.

Operating profit, however, climbed 24% YoY to Rs 90 crore, with the EBITDA margin improving to 19.4% from 18.9% in the corresponding quarter. Sequentially, EBITDA margin rose from 17.15% in Q1 FY26.

The company noted that invoicing during the September quarter was impacted by around Rs 10.1 crore (55 MVA) as heavy rainfall made certain delivery sites inaccessible, leading to reversal of some sales invoices at quarter-end.

Voltamp began FY26 with an opening order book of Rs 938 crore (7,904 MVA) and secured new orders worth Rs 1,377 crore (11,442 MVA) so far this year. Additionally, orders worth Rs 92 crore (1,488 MVA) have been finalized and are awaiting formal purchase orders.

Management reiterated that the company remains selective in accepting new orders, prioritizing profitability, execution certainty, and cash flow strength. With a strong pipeline of over Rs 1,400 crore and a robust supply chain network, Voltamp is well-positioned to meet its full-year revenue targets.

Industry outlook remains buoyant, supported by grid modernization, renewable energy integration, and large-scale transmission upgrades. While rising competition may normalize margins over time, Voltamps strong balance sheet, prudent cost control, and vendor relationships provide a competitive edge.

Voltamp Transformers is a leading manufacturer of energy-efficient transformers, specializing in the design, manufacture, and supply of both oil-filled and dry-type units. The company caters to a diverse range of sectors, including power, oil and gas, petrochemicals, steel, cement, data centers, green energy, and commercial infrastructure.

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