Transformer stock jumps after securing ₹10 Cr order for 20 MVA power transformers

Synopsis:
Supreme Power Equipment Limited secured a ₹10.02 crore order to supply four power transformers in Karnataka, with execution expected within six months.

This micro-cap transformer stock, engaged in manufacturing, upgrading, and renovating various transformers, including power, windmill, and solar types, for energy distribution and renewable projects across multiple sectors, jumped 2 percent after securing an order worth Rs. 10 crore from Karnataka for supplying 20 MVA power transformers.

With a market capitalization of Rs. 497.32 crores, the share of Supreme Power Equipment Limited has reached an intraday high of Rs. 201.80 per equity share, rising nearly 2.44 percent from its previous day’s close price of Rs. 197. Since then, the stock has retreated and is currently trading at Rs. 199 per equity share. 

What is the news?

Supreme Power Equipment Limited received a new domestic order worth Rs. 10.02 crore on September 8, 2025, from a reputed power company in Karnataka. The order includes the supply of two 20MVA, 66/11KV transformers and two 20MVA, 110/33-11 KV (new capacity) power transformers. 

This order is expected to be executed within six months. The company believes this contract will further strengthen its presence in the power equipment sector and contribute to its business growth.

Expansion Plans

The company is expanding its operations with a new 6-acre facility, scheduled for completion by December 2025 and production commencement in January 2026. With an investment of Rs. 70–75 crore, the facility offers a revenue potential of Rs. 500–550 crore at full capacity. This expansion will enhance the company’s production capacity from 2,500 MVA/year to 9,000 MVA/year.

Client base

The company boasts a strong and diverse client portfolio, featuring notable names such as Siemens, L&T, Suzlon, Vestas, Sakthi Group, Swellect, and PSG. Serving clients across the electrical, energy, and engineering sectors.

Company Overview

Supreme Power Equipment Limited (SPEL) was founded in 1994 and specializes in manufacturing and supplying oil-filled power and distribution transformers, with capacities up to 50 MVA and 110/33 KV class. The company caters to power utilities, turnkey contractors, and end customers, with a strong emphasis on delivering high-quality transformers that meet both national and international standards.

With over 30 years of expertise in the electrical and power industry, the company has successfully served more than 28 sectors and delivered over 17,000 units to date. Backed by an order book exceeding Rs. 198.12 crore, it reflects consistent growth, a strong industry presence, and rising demand for its products.

Recent quarter results

Coming into financial highlights, Supreme Power Equipment Limited’s revenue has increased from Rs. 27.52 crore in Q1 FY25 to Rs. 35.07 crore in Q1 FY26, which has grown by 27.43 percent. The net profit has also grown by 29.60 percent from Rs. 3.48 crore in Q1 FY25 to Rs. 4.51 crore in Q1 FY26.

Supreme Power Equipment Limited’s standalone revenue and net profit have grown at a CAGR of 45.58 percent and 166.84 percent, respectively, over the last three years.

In terms of return ratios, the company’s ROCE and ROE stand at 27.5 percent and 22.4 percent, respectively. Supreme Power Equipment Limited has an earnings per share (EPS) of Rs. 7.44, and its debt-to-equity ratio is 0.18x.

Written By – Nikhil Naik

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