Supreme Power Equipment Bags ₹5.60 Cr Power Transformer Order for Karnataka Project

Synopsis:- Supreme Power Equipment Limited has secured a domestic order worth Rs. 5.60 crore for the supply of 20MVA, 66/11KV power transformers from a New Delhi-registered EPC company, with the delivery address situated in Karnataka adding to an order book that stood at Rs. 588.17 crore as disclosed at its H2 FY26 analyst call earlier this month.

A Chennai-based manufacturer of power and distribution transformers came into focus on Tuesday after intimating NSE under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, that it has received a fresh domestic order worth Rs. 5.60 crore. The disclosure, signed by Company Secretary and Compliance Officer Priyanka Bansal, was submitted at 9:41 AM on June 23, 2026. The order is from an EPC company with its registered office in New Delhi, with the final delivery address situated in Karnataka, and is to be executed within approximately eleven months.

With a market capitalization of Rs. 642.52 crore, the shares of Supreme Power Equipment Limited were trading at Rs. 257.10 per share, up 0.47 percent from its previous closing price of Rs. 255.90 apiece. It is trading at a P/E of 30.93.

Order Update

The order covers the supply of 20MVA, 66/11KV power transformers units that step down transmission-level voltage from 66 kilovolts to 11 kilovolts, typically deployed at grid receiving substations to channel bulk power into distribution networks. The awarding entity is a domestic EPC firm operating out of New Delhi, with no promoter or related-party interest declared in the counterparty, and the transaction does not constitute a related-party arrangement under applicable regulations.

The delivery is destined for Karnataka, a state that has been among the more active investors in grid infrastructure over the past two years, driven by renewable energy integration requirements under the national energy transition programme.

The eleven-month execution window is consistent with Supreme Power’s typical transformer delivery timelines for 20MVA-class units, which involve custom fabrication, core and coil assembly, oil impregnation, and pre-dispatch testing before site delivery. At Rs. 5.60 crore, the order is modest in absolute terms relative to the company’s FY26 revenue base of Rs. 182.10 crore, representing roughly 3 percent of annual turnover. Its significance lies more in its role as an incremental addition to a cumulative order book rather than as a standalone revenue catalyst.

Order Book and Pipeline Context

The order book figure disclosed at the H2 FY26 earnings concall held in early June 2026 stood at Rs. 588.17 crore. For context, the company secured Rs. 381.21 crore worth of orders across the full FY26 year, as stated in the accompanying investor presentation. Against FY26 revenue of Rs. 182.10 crore, an order book of Rs. 588 crore implies a book-to-bill ratio of roughly 3.2 times providing strong near-term revenue visibility provided execution timelines hold. Tuesday’s Rs. 5.60 crore addition is incremental to that baseline.

The Karnataka delivery geography is worth noting. Power sector capex in Karnataka has been buoyed by both the state utility’s substation expansion programme and the evacuation infrastructure requirements of large solar and wind installations in the Tumkur and Bellary belts. EPC companies engaged in these projects tend to be repeat buyers of 20-100MVA class grid transformers, making this order a potential relationship-seeding win for Supreme Power beyond its immediate monetary value.

Manufacturing Capacity and Expansion

The Chennai facility, commissioned in FY26, is the more material operational development shaping the company’s near-term trajectory. The new plant raises total installed manufacturing capacity to 9,000 MVA, a significant step up from the earlier Nashik-centric footprint. The balance sheet reflects the scale of this investment: fixed assets jumped from Rs. 11 crore in FY25 to Rs. 88 crore in FY26, capital work-in-progress drew down from Rs. 49 crore to Rs. 28 crore as commissioning progressed, and borrowings rose from Rs. 16 crore to Rs. 46 crore to fund the build-out.

Free cash flow turned negative Rs. 30 crore in FY26 on the back of Rs. 57 crore in investing outflows. This is the expected profile of a capacity expansion cycle negative free cash flow now, with the intent to deploy the incremental capacity against the growing order book over FY27 and FY28.

Product mix is also expanding. The company’s rated capacity for power transformers now extends up to 160MVA, against the earlier ceiling of 25MVA/132kV. This opens access to bulk power transformer tenders from state transcos and large EPC contractors that were previously outside its addressable bid range.

Business Overview

Incorporated in 1994 and listed on the NSE SME Emerge platform under the symbol SUPREMEPWR, Supreme Power Equipment Limited manufactures power transformers, distribution transformers, windmill transformers, solar and inverter duty transformers, generator transformers, and converter and rectifier transformers from its facilities in Nashik and the newly commissioned Chennai plant. The company serves state utilities, private EPC contractors, renewable energy developers, and industrial customers across India.

In FY26, it reported standalone revenue of Rs. 182.10 crore against Rs. 145 crore in FY25 a 25.6 percent year-on-year increase and net profit of Rs. 20.44 crore against Rs. 19 crore in FY25. Operating margins have held at 15-16 percent across the last three half-years. Over five years, the company has delivered a 40 percent revenue CAGR and a 138 percent profit CAGR, largely driven by the transformer sector’s tailwind from India’s grid modernisation programme. Promoter holding stands at 57.16 percent as of March 2026. Debtor days have improved from 130 to 87 over the past three years, a meaningful working capital tightening for a capital-goods manufacturer working on extended project cycles.

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