Supreme Power Equipment raised its FY27 revenue outlook after first-half income surged nearly 80%, with a ₹565.80 crore order book and new capacity supporting further growth despite raw material pressures.
Supreme Power Equipment reported a sharp rise in first-half earnings for fiscal 2027, supported by a swelling order book, stronger plant utilisation and a steady shift towards higher-value power transformers. According to the company’s latest earnings call, total income climbed 79.91% year on year to ₹135.57 crore in the six months to September, while EBITDA rose 65.46% to ₹23.62 crore and profit after tax increased 45.09% to ₹13.65 crore. Management said the business is benefiting from a strong pipeline of transmission-related orders, with demand from both central and state utilities remaining robust.
The Chennai-based transformer maker said its order book had crossed ₹565.80 crore as of October 21, giving it clear visibility on future work. The company won 11 new orders worth ₹209.24 crore during the first half, with execution periods ranging from seven to 17 months. Chairman V. Rajamohan said the pipeline is large enough to keep the order book in the ₹600 crore to ₹800 crore range by the end of the year, and that revenue for FY27 should come in at between ₹300 crore and ₹350 crore, above an earlier projection of ₹275 crore.
Margins, however, remain under some pressure from raw material inflation, particularly in cold-rolled grain-oriented steel and transformer oil. Rajamohan said about 70% to 80% of the order book is covered by price variation clauses, which should cushion the effect of input-cost swings. Even so, the company trimmed its profit margin guidance slightly, saying net profit margins for FY27 should be between 9% and 12%, compared with an earlier expectation of 10% to 12%. The management also acknowledged that working capital has risen because of higher inventories and receivables, although it expects operating cash flow to turn positive in the second half.
Supreme Power Equipment is also trying to broaden its reach beyond its existing business base. The company said roughly three-quarters of its order book is made up of power transformers, while distribution transformers account for about 16% to 17% and inverter duty transformers about 5%. Rajamohan said government business remains important because it helps the company build credentials for larger private-sector opportunities, and he expects the mix of government and non-government business to remain broadly stable at around 30% and 70%, respectively. He added that the new Kannur plant is ramping up, with utilisation expected to reach 40% to 50% this year and close to 80% next year. Combined with the existing unit, the two facilities could eventually support peak annual revenue of ₹550 crore to ₹600 crore, which management expects to approach in FY28.
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