Kanohar Electricals and Indo Tech Transformers Target India's ₹9 Lakh Crore Grid Push
Transformer stocks in India are drawing attention as rising electricity use drives transmission investment. Industrial growth, urbanisation, data centres and electric vehicles are lifting consumption, and peak power demand has touched 270.8 GW, with a projected 500 GW and beyond by 2036. India plans to invest around ₹9 lakh crore in power transmission by 2032, and the Green Energy Corridor carries a ₹1.86 lakh crore outlay for intrastate transmission.
The high-voltage transformer industry is led by Hitachi Energy India, CG Power, Siemens Energy India and Transformers and Rectifiers India. Atlanta Electricals and Voltamp Transformers have a more concentrated presence. Two smaller players, Kanohar Electricals and Indo Tech Transformers, are also expanding.
Kanohar Electricals: Moving Up the Voltage Ladder
Kanohar Electricals, with a market capitalisation of ₹8,309 crore, makes power transformers up to 500 MVA and 400 kV, Scott-connected traction transformers for railways and shunt reactors. Its two Meerut units have combined annual capacity of 19,200 MVA, and utilisation was 29.7% in FY25, 46.0% in FY26 and 36% in Q1 FY27. Deliveries are typically lower in the first quarter and peak in Q4. Transformers contribute about 85% of revenue and EPC projects about 15%.
The 400 kV category made up roughly 70% of manufacturing revenue in Q1 FY27. The company is adding 18,000 MVA at its Gangol facility, designed for 765 kV transformers, with capacity scheduled to serve demand from FY29. Management says commercial qualification for 765 kV tenders will take three to four years, and estimates the railway traction transformer market at about ₹20,000 crore over five to ten years. It targets FY27 consolidated revenue of ₹950 crore with the EBITDA margin held at the FY26 level.
Indo Tech Transformers: Scaling Capacity
Indo Tech Transformers, with a market capitalisation of ₹3,437 crore, has made over 66,000 transformers and supplies distribution companies, transmission utilities, NTPC, renewable developers and data centres. Capacity rose from 9,000 MVA in FY25 to 12,000 MVA in FY26 and 14,000 MVA by June 2026, with utilisation at 80% to 90%. The board approved ₹495 crore of capex to reach 50,000 MVA by FY29 across four phases, funded by internal accruals and term loans without equity dilution. The company is qualified for 400 kV transformers in NTPC's battery energy storage projects, beyond its earlier 220 kV limit.
| Indicator | Kanohar Electricals | Indo Tech Transformers |
|---|---|---|
| Market capitalisation | ₹8,309 crore | ₹3,437 crore |
| Current capacity | 19,200 MVA | 14,000 MVA |
| Planned addition | 18,000 MVA (from FY29) | To 50,000 MVA by FY29 |
| Order book | ₹2,026.0 crore (Jun 30, 2026) | ₹1,318 crore (Q1 FY27) |
| Q1 FY27 revenue | ₹137.1 crore (+103.5%) | ₹227 crore (+39%) |
| Q1 FY27 operating profit / EBITDA | ₹38.8 crore (+152.2%) | ₹32 crore (+33.3%) |
| Operating margin | 28.3% (+550 bps) | 14.1% (-50 bps) |
| Q1 FY27 net profit | ₹27.3 crore (+140%) | ₹26 crore (+36.8%) |
| Working capital cycle | About 120 days | About 135 days |
Kanohar's revenue grew at a 28% compound rate and net profit at an 80% rate over the three years to FY26, with 88.4% of its order book from government entities. Indo Tech's revenue rose from ₹280 crore in FY22 to ₹782 crore in FY26, and net profit from ₹12 crore to ₹93 crore. It tracks an open pipeline above ₹10,000 crore.
Market and Sector Impact
Kanohar reports stronger return ratios than Indo Tech and the industry median, while both firms face execution risks as they add capacity and deliver orders.
What to Watch
Track Q2 deliveries, Kanohar's progress toward 765 kV qualification, Indo Tech's phased capacity additions, and collection cycles of roughly 120 to 135 days.