Atlanta Electricals Q1 Results: Stock falls 5% despite margin expansion, healthy profit growth

Shares of Atlanta Electricals Ltd. fell as much as 5% on Tuesday, July 21, even as the company reported its June quarter results, with consolidated net profit rising 51.1% year-on-year to ₹46.84 crore from ₹31.14 crore a year earlier.

Its revenue grew 48% to ₹466.33 crore, up from ₹315.11 crore in the corresponding quarter last year. Operating performance also improved during the quarter. Consolidated EBITDA increased by 58.2% year-on-year to ₹77.4 crore from ₹49 crore, while EBITDA margin expanded to 16.6% from 15.5% a year ago.

Profit before tax rose to ₹63.58 crore from ₹41.97 crore in the year-ago quarter. Earnings per share increased to ₹6.09 from ₹4.35 a year earlier.

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Atlanta Electricals' order book stood at ₹3,116.63 crore as of June 30, up 25% sequentially, supported by Q1 order inflows of ₹972.42 crore. It said the backlog provides strong revenue visibility across the transmission and distribution, renewable energy and industrial segments.

The company said its business mix is increasingly shifting towards higher-capacity transformers, with 220 kV and above products accounting for more than 55% of the order book. It added that 400 kV transformers and reactors contribute nearly ₹275 crore to the order backlog, reflecting progress in the extra-high-voltage (EHV) transformer segment.

Atlanta Electricals said it continues to strengthen its EHV and ultra-high-voltage (UHV) capabilities. Following approval from Power Grid Corporation of India Ltd. (PGCIL) to manufacture transformers of up to 400 kV at its Vadod facility, development of 400 kV and 765 kV transformers remains on track to address opportunities in transmission infrastructure, renewable energy, battery energy storage systems (BESS), data centres and exports.

The company is scaling up manufacturing after commissioning new capacities in FY26 and is focused on increasing capacity utilisation, commissioning its inverter-duty transformer facility, progressing backward integration of tanks and radiators, and improving manufacturing efficiencies.

"Our order book increased 25% sequentially to ₹3,116.63 crore, providing strong revenue visibility and reaffirming the robust demand environment across transmission & distribution, renewable energy and industrial applications," Chairman and Managing Director Niral Patel said.

He added that the company is seeing higher-capacity transformers contribute a growing share of both orders and revenue as it moves up the transformer value chain.

Management outlook

Patel said demand remains structurally strong, driven by investments in transmission network expansion, renewable energy integration, battery energy storage systems, industrial electrification and data centres.

He said the company remains focused on increasing capacity utilisation, expanding exports, commissioning its inverter-duty transformer facility and advancing its 400 kV and 765 kV transformer programmes.

It also took on record the independent auditors' certificate on the utilisation of proceeds from the company's initial public offering.

Atlanta Electricals, which manufactures power and special-duty transformers, said it operates in a single reportable business segment.

Separately, the company disclosed that it had utilised ₹398.09 crore out of the ₹400 crore raised through its IPO as of June 30, 2026.

The proceeds were used towards debt repayment, working capital requirements, general corporate purposes and issue-related expenses, with ₹1.91 crore remaining unutilised. The auditors certified that there was no material deviation in the utilisation of IPO proceeds from the objects stated in the prospectus.

Shares of Atlanta Electricals fell 4.8% after the earnings announcement at ₹1,655.1. The stock has risen 85% so far this year and has more than doubled from its issue price of ₹754 per share.