Megatherm Induction Ltd Q2 FY26 Results & Concall Highlights: Revenue, Margins & Order Book

Published 3 Aug 2026 | Industrial Products | Market Cap: ₹390 Cr

Megatherm aims to achieve ₹950 crore to ₹1,000 crore in revenue within 4-5 years. Megatherm targets ₹950 crores to ₹1,000 crores revenue in 4-5 years, driven by export induction products and transformer sales (₹300 crores expected from transformers).

From Megatherm Induction Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.

Price

₹218

Market Cap

₹390 Cr

P/E Ratio

16.1

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📊 Revenue & Sales Performance

→Megatherm aims to achieve ₹950 crore to ₹1,000 crore in revenue within 4-5 years.
→Current capacity supports around ₹450-500 crore; further ₹25-30 crore CapEx planned to reach ₹950-1,000 crore.
→Transformer segment targeted to contribute around ₹300 crore of total revenue.
→Major growth drivers: increased order book carryover (₹260 crore of ₹430 crore spilling into FY27), export demand, and strong domestic industrial transformer market.
→Approval and initial reference creation processes currently slow but expected to trigger exponential growth post-clearance.
→Revenue split shift: narrowing gap between domestic and export sales of induction products.
→Repeat customers form a significant portion, especially domestically; export orders roughly 50% new, 50% repeat.
→Expansion of sales team for industrial and power transformers planned to accelerate order wins.
→Growth also expected from forging, foundry, and pipes & tubes segments.

📈 Profitability & Margins

→Megatherm targets ₹950 crores to ₹1,000 crores revenue in 4-5 years, driven by export induction products and transformer sales (₹300 crores expected from transformers).
→EBITDA margin goal is around 9% to 10% once scale-up is achieved.
→Current bottom line is on an upward trajectory despite higher overheads; future overhead increases expected to be minimal with growth.
→Repeat orders and new approvals, especially from major clients like Tata and Adani, will drive future order inflows and revenue.
→Transformer segment capacity expansion (with ₹25-30 crores CapEx) is key for exponential growth.
→EPS is expected to improve aligned with EBITDA margin and revenue growth.
→Risks are primarily related to timing of approvals and initial order bookings, but once cleared, exponential growth and full capacity utilization is projected.

🏗️ Capital Expenditure Plans

→Current CapEx for existing capacity (induction products) is almost exhausted, with only around ₹2 crores left for machinery.
→Majority of remaining IPO funds are allocated for working capital, especially for transformer business as it is working capital intensive.
→Planned future CapEx of about ₹25-30 crores targeted for transformer capacity expansion within the next 4-5 years to reach ₹950-1000 crores revenue.
→Around ₹10 crores may be required additionally for induction capacity expansion to support export growth.
→Future CapEx to be funded through a mix of equity and debt; currently no term loans, only working capital limits in place.
→Transformer facility expansion includes installing vacuum machines (e.g., vacuum oven) to get necessary approvals and start orders.
→Strategic investments focus on building service capabilities and faster order execution, especially in Eastern India transformer market.

💰 Fundraising & Capital Structure

→No significant new debt is planned currently; only working capital limits are in place to support bulk orders as needed.
→For the ₹950 crore to ₹1,000 crore revenue target in 4-5 years, a CapEx of around ₹35-40 crore is expected.
→This CapEx will be partly funded through equity and partly through debt.
→Presently, the company does not have any term loans.
→Working capital cycle is typically 3-4 months, and the company is conservative in utilizing its working capital limits.

📋 Order Book & Pipeline

→Current order book stands at approximately ₹430 crores.
→About ₹260 crores worth of orders are expected to be carried over to the next financial year (FY27) due to project delays caused by monsoon and other factors.
→Remaining order execution target for the current year is around ₹170 crores plus additional spares orders (~₹10 crores currently in hand).
→Roughly ₹230 crores worth of bids are in progress, with ₹100 crores expected to be finalized by December and another ₹130+ crores by March.
→Initial orders for transformers have begun, with approvals underway from major clients like Tata Power and Adani.
→Transformer orders are expected to grow as factory approvals complete.
→Export demand is also strong, contributing significantly to the order book.
→Overall, the growth outlook is positive with a robust pipeline across domestic and export markets.

Key Metrics

Frequently Asked Questions

What were Megatherm Induction Ltd Q2 FY26 results?

What is Megatherm Induction Ltd share price analysis?

Megatherm Induction Ltd currently shows a neutral. The stock trades at a P/E of 16.1 with a market cap of ₹390 Cr. Investors should review the full earnings analysis for detailed insights.

Is Megatherm Induction Ltd planning capital expenditure?

Current CapEx for existing capacity (induction products) is almost exhausted, with only around ₹2 crores left for machinery.

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.