Atlanta Electricals Ltd

- As of 31st March 2026, Atlanta Electricals Limited has fully repaid all term loans and currently has no long-term debt. - The company’s ongoing capex programs, including the new inverter duty transformer facility and tank and radiator backward integration initiatives, are being funded comfortably through internal accruals. - The board has approved a term loan facility as a prudent step, which may be drawn down later if required. - Currently, there is no need for external borrowing as cash generation is sufficient to support the full capex roadmap. - If a term loan is taken, the company intends to completely repay it in the next financial year. - There is no mention of any new equity fundraising plans during the current or near future period.

- INR 180 crores capex planned for radiator and tank backward integration facility (completely robotic to ensure quality and automation), expected to commence in FY27 with benefits from next year. - INR 65 crores capex for expanding inverter duty transformer (IDT) capacity by 5,000 MVA at existing Vadodara facility. - Ongoing capex programs, including the new IDT facility and tank & radiator backward integration, are being funded comfortably through internal accruals; a term loan facility is approved if needed but not yet drawn. - Focus on prototyping 400 kV and 765 kV transformers at Vadodara and Ankhi facilities with related technical tie-ups and testing; significant development cost anticipated. - Plans to invest in technology development for 400/765 kV products and associated R&D and type testing; margin impact currently uncertain. - No immediate plans to enter HVDC transformer market until 400/765 kV products are well established.

- Atlanta Electricals targets a ~40% CAGR in revenue growth over the next 3 years. - Majority of current orders (80-85%) to be executed within the next financial year; new higher KV orders expected to follow. - Ramp-up of Vadodara facility utilization from 39% to 65% in the current year, aiming for 100% utilization next year with mainstream production of 400KV transformers. - Development and prototyping of 400KV and 765KV transformer classes expected to unlock larger addressable markets and higher-value orders. - Expansion into emerging domestic verticals like Battery Energy Storage Systems (BESS), data centers, and renewables to create durable demand. - Aggressive export market push planned, targeting exports at 15% of total revenue within 3 years. - Execution lead times for EHV orders (400KV and above) are long (18-24 months), implying order book growth and revenue uptick over multiple years.

- FY26 showed strong growth: 48.8% revenue increase, 77.9% EBITDA growth, and 70.1% PAT growth, indicating robust business momentum. - EBITDA margin expanded by 300 bps to 18.6%, expected to remain stable, especially for 220kV class products. - Focus on prototyping 400kV and 765kV transformers expected to open significantly larger markets leading to higher-value orders with longer execution cycles (18-24 months). - Commencement of Unit 6 (Inverter Duty Transformer facility) and backward integration (tank and radiator manufacturing) will improve supply chain control and margins. - Aggressive export market push aims to raise exports to 15% of revenue in 3 years. - Growing demand from new verticals like Battery Energy Storage Systems (BESS), data centers, and renewables adds diversification and volume. - Ongoing capex funded via internal accruals with no fresh borrowing, supporting sustainable growth. - Working capital days expected to increase, signifying business scale-up ahead. Overall, earnings and operating profits are expected to sustain strong growth, driven by high-voltage product expansion, export scaling, and new segment opportunities.

- Current order book is approximately INR 2,493 crores. - Around 60% to 75% of orders are with price variation clauses, mainly from state utility boards. - About 70% to 80% of orders come from state utility boards. - Approximately 80-85% of the current order book (mostly up to 220KV class) is expected to be executed within the next 12 to 18 months. - Small portion of orders are for 400KV class transformers, with deliveries starting from December to March. - Higher KV class orders booked this year will be executed in the following financial year. - BESS (Battery Energy Storage Systems) orders are present in the order book and supplies are expected in the near future.