Management

• Niral Krupeshbhai Patel (Chairman & Managing Director)
• Amish Krupeshbhai Patel (Whole-time Director)
• Tanmay Surendrabhai Patel (Whole-time Director)
• Milin Kaimas Mehta (Independent Director)
• Bhadresh Bhupendrabhai Chauhan (Independent Director)
• Dukhabandhu Rath (Independent Director)
• Jinkal Darshan Patel (Independent Director)
• Mehul Sureshbhai Mehta (Chief Financial Officer)

Use of Proceeds

The total issue size is Rs. 687.34 cr, which comprises a fresh issue of Rs 400 cr and offer for sale (OFS) of Rs 287.34 cr. The company intends to utilize a portion of the net proceeds towards Funding working capital requirements of the Company (Rs 210 cr), Repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by the Company (Rs 79.12 cr), and rest for general corporate purposes

Competitive Strengths

One of the leading manufacturers of power, auto and inverter duty transformers in India, well-positioned to capture the industry tailwinds The company is a leading manufacturer of power, auto, and inverter duty transformers in India by production volume in Fiscal 2025, with over three decades of experience. It has established presence across 19 states and three union territories. India’s transformer component market is significant, with exports worth USD 468 million in 2022, making the country the sixth largest exporter, while imports stood at USD 538 million. Growth is supported by investments in transmission and distribution networks under RDSS. Between 2019 and 2024, the market grew at a CAGR of 10.2% and is expected to reach USD 2.6 billion by 2030.

Broad and diversified product portfolio with focused product development tailored to meet customer requirements The company offers a diversified portfolio including power, inverter duty, furnace, generator, and special duty transformers. Customization has been demonstrated through supplies such as 66 kV transformers to Leh at 3,000 meters altitude and 20 MVA transformers with ester-based fluids for urban safety. Tailored solutions for corporate and institutional clients enhance competitive positioning. A broad customer base across industries insulates against sector-specific slowdowns. After-sales support, training programs, and customer engagement strengthen relationships. Appreciation from clients underscores credibility, while training initiatives foster knowledge transfer and talent development, ensuring continued competitiveness and adaptability in challenging operating environments.

Strong order book coupled with well-diversified customer base As of March 31, 2025, the company had 208 customers, including 21 public sector undertakings and 187 private players, expanding from 137 in Fiscal 2023. The order book rose from Rs 5,340.62 million in Fiscal 2023 to Rs 16,429.58 million in Fiscal 2025. Supplies span 19 states, three union territories, and multiple industries such as transmission, steel, solar, and construction. Government programs like the National Solar Mission and Green Hydrogen Mission are driving demand for step-up and inverter duty transformers. Customers include GETCO, Adani Green Energy, Tata Power, O2 Power, and EPC players, reflecting broad market acceptance and repeat business.

Manufacturing capabilities with focus on quality and high regulatory compliance The company operates five manufacturing facilities, including Anand, Vadod, Bengaluru, and Ankhi, with combined installed capacity of 63,060 MVA. The Vadod unit, commissioned in July 2025, can manufacture up to 500 MVA and 400 kV transformers. Facilities feature NABL-accredited labs for testing up to 200 MVA/245 kV, ISO certifications, and advanced machinery. Capacity utilization reached 98.28% in FY25, highlighting operational efficiency. Testing includes impulse, temperature rise, noise, and sweep frequency response analysis. Robust infrastructure, strict process controls, and in-house testing ensure adherence to specifications. Health, safety, and quality practices strengthen competitiveness while meeting rising domestic and global demand.

Experienced management team and consistent financial performance Leadership includes promoters and professionals with over two decades of experience in transformers and electrical manufacturing. A workforce of 311 professionals supports operations across functions. Revenue rose from Rs 8,738.83 million in FY23 to Rs 12,441.80 million in FY25, while debt-to-equity remained conservative at 0.40. Expansion strategies include backward integration, capex for capacity addition, and local sourcing to reduce costs. The domestic transformer market is expected to grow 6–7% CAGR through 2030, with large opportunities from India’s renewable energy push. The company aims to expand internationally into Africa and Nepal, while enhancing after-sales service, branding, and customer retention.

Peer Comparison

Key Risks & Concerns

• A major share of revenue comes from transformer manufacturing facilities located in Gujarat, contributing nearly 99% in Fiscal 2025. Heavy dependence on this single region means any disruption, such as operational, regulatory, or environmental issues, could materially affect performance and financial stability.
• A significant portion of revenue is generated from supplying transformers to state utilities, which accounted for around 66% in Fiscal 2025. The business is closely tied to government policies on power generation, transmission, and distribution. Any policy changes or economic downturns may negatively impact revenue and cash flows.
• A large part of revenue depends on contracts with government-controlled entities through a competitive tendering process. With a historical success rate ranging between 18% and 29%, failure to secure a sufficient number of tenders could adversely affect financial results and long-term growth.

Outlook and Valuation

Atlanta is one of the leading manufacturers of power, auto, and inverter duty transformers in India. It is positioned to capture industry growth with a diversified product portfolio and strong order book. Manufacturing capabilities emphasize quality, compliance, and safety, while additional capacity from the Vadod unit, commissioned in July 2025, has expanded installed capacity from 16,740 MVA to 47,280 MVA. The global transformer market is growing rapidly due to rising energy demand, industrialization, renewable integration, and grid modernization. Asia-Pacific, particularly China and India, is leading growth, supported by infrastructure spending and modernization, while North America and Europe focus on replacing aging networks.

The global transformer market is projected to reach USD 97 billion by 2030, with a CAGR of 7.3% between 2024–2030. India currently holds an 8–10% share of the global market, expected to increase to 10–12% by 2030, and accounts for 24–26% of the Asia-Pacific market. Key drivers include rising electricity demand, rapid industrialization, urbanization, renewable energy integration, and government reforms. The Central Electricity Authority projects major investments in transmission infrastructure to integrate over 500 GW of renewable energy by 2030, requiring significant transmission lines and substations. Thermal and hydro capacity additions, government schemes, and demand from EV charging, railways, and data centers further support growth.

Technological innovation is reshaping the industry with energy-efficient transformers, smart grids, HVDC systems, and eco-friendly designs. Smart transformers with IoT and AI are enabling real-time monitoring and predictive maintenance, while compact and modular solutions enhance flexibility. Indian manufacturers are investing in R&D to meet global standards, develop products for renewable integration, and tailor solutions to local conditions. Strategies include capacity expansion, backward integration, operational efficiency, customer base diversification, global expansion, and brand-building initiatives. Focus areas also include after-sales support, digital tools for efficiency, and potential inorganic acquisitions, positioning the sector for sustainable growth and higher market share. The general balance between demand and supply in the transformer industry remains heavily tilted towards demand, owing to the significant infrastructure expansion that is presently taking place in the power transmission and distribution sector. We believe that the growth in earnings over the upcoming quarters will be driven by transformative capacity expansion, the entry into high-voltage segments, and the increasing potential for exports. Atlanta is valued at a P/E multiple of 48.9x FY25 earnings. We believe the issue is at a slight premium in comparison to peers. We recommend a SUBSCRIBE rating for the issue for the long term.