Atlanta Electricals IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

The company is one of the leading manufacturers of power, auto and inverter duty transformers in India, terms of production volume as of Fiscal 2025. It is among the few companies in India, manufacturing transformers with a rated capacity of up to 500 MVA and with 765 kV. With a pan India presence and operations spanning over 30 years in the transformer manufacturing industry, it supplies a wide range of transformers starting from 5 MVA/11 kV up to 200 MVA/220 kV. As of March 31, 2025, it has a customer base in 19 states and three union territories, across India, with a supply of 4,400 transformers, aggregating to 94,000 MVA to various state and national electricity grids, private sector players and prominent renewable energy generation projects and construction companies. Its Order Book, as on March 31, 2025, amounted to ₹ 16,429.58 million. Further, as on March 31, 2025, projects awarded by public sector undertakings and private players contributed to 82.08% and 17.92% to its Order Book.

It has five manufacturing facilities and operate four fully operational manufacturing facilities, two located at Anand, Gujarat, one at Bengaluru, Karnataka and the Vadod Unit which has commenced commercial production in July, 2025 is located in Vadod, Gujarat.

IPO Details:

Objectives of Issue:

• Repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by the Company 
• Funding working capital requirements of the Company
• General corporate purposes.

Key Strengths:

• Growing Order Book with diversified customer base- As of March 31, 2025, it has cultivated relationships with 208 customers of which 21 are public sector undertakings and 187 are private sector players. its customer base has expanded significantly, growing from 137 customers in Fiscal 2023 to 208 customers in Fiscal 2025, reflecting a compound annual growth rate (“CAGR”) of 23.22 % and reaching 208 customers as of March 31, 2025. Its Order Book, as on Fiscals 2025, 2024 and 2023, amounted to ₹ 16,429.58 million, ₹ 12,713.80 million and ₹ 5,340.62 million, respectively.It has diversified its order book across different geographies and businesses, enabling it to maximize its business volume and profits. It has diverse customer base across various industries such as transmission, steel, dairies, solar, textile, construction and infrastructure etc. allowing it to meet varied requirements while minimizing risk. The company revenue contribution from renewable sector increased from 6% to 20% , reflecting company focus to serve the renewable sector
• Optimum utilization of Resources- The company had an aggregate installed capacity of 16,740 MVA as at March 31, 2025, at our three manufacturing facilities located in Anand, Gujarat, and Bengaluru, Karnataka with capacity utilization from 70% in 2023 to 98% in 2025 reflecting company efficient use of its resources. To further support its growth and capture a larger share of the market, it has established an additional manufacturing facility in Vadod, Gujarat which had increased its installed capacity to 47,280 MVA. Further, with the inclusion of BTW-Atlanta Transformers Private Limited as its wholly owned subsidiary, it has also added a facility at Ankhi to its existing facilities, with a capacity of 15,780 MVA.

Risks:

• Significant dependence on top customers- A substantial portion of its revenues is dependent on our top 10 customers. As of Fiscal 2025, Fiscal 2024 and Fiscal 2023, it derives 74.21%, 64.82% and 79.87% respectively, of our revenue from our top 10 customers. It depends and expect to continue to depend on its top 10 customers for a substantial portion of our total revenue from operations. The loss of any of these customers, will materially and adversely affect our revenues and profitability.
• Volatile Raw Material Cost – The company business involves purchasing inventory of copper, lamination, MS tank, radiator, oil, bushing, insulation and MS frame from various vendors and suppliers based on projected sales. The company have in the past experienced cost fluctuations for these raw materials due to volatility in the commodity markets and have mitigated the risk of cost fluctuations by adjusting the selling price of our products. The average range between the highest and lowest price of range ranged around 200% signifying high volatility. If it is unable to pass on cost increases to our customers or are unsuccessful in managing the effects of raw material price fluctuations, its business, financial condition, results of operations and cash flows could be materially and adversely affected
• Significant Dependence on Single Product – The company derive a significant portion of our revenue from the supply of power transformers which constituted 73.60%, 88.98% and 93.37% of our revenue from operations during Fiscals 2025, 2024 and 2023. If there is a decrease in the demand for power transformers or if there is uncertainty and other unexpected fluctuations or changes such as manufacturing shutdowns or equipment breakdown or failure and industrial accidents, interruptions in supply of water and electricity or other resources; failure or bottlenecks in production processes etc. could adversely affect its business and results of operations.

Financial Snapshot:

KPI comparison with Industry Peers

Conclusion

India’s power sector presents significant growth opportunities driven by the rising demand from data centers, EV charging infrastructure, high-speed rail projects, and dedicated freight corridors. This is expected to support strong demand for transformers in the coming years.

While the company’s revenue growth has been slightly lower than the industry average, its EBITDA and PAT margins are comparatively better. The company’s debt-to-equity ratio is broadly in line with industry levels, while its interest coverage ratio, though lower than the industry average, remains at a comfortable level. Additionally, the company’s return ratios (ROE and ROCE) are superior to industry benchmarks. The company has also undertaken a substantial capacity expansion recently.

On the valuation front, peers trade at an average P/E multiple of around 39x, while the company is valued at ~45x P/E, which is broadly in line with industry peers.

Considering the favorable industry outlook, the company’s healthy financial profile, and recent capacity expansion, we recommend subscribing to the issue from a long-term investment perspective.