Transformer stock jumps 9% after securing orders from Tamil Nadu Power Distribution Corp.

Synopsis: Supreme Power Equipment jumped sharply after it secured two transformer supply orders from Tamil Nadu Power Distribution Corporation, Rs 2.69 crore for the main company and Rs 1.50 crore for its 90%-owned firm Danya Electric. 

The shares of this leading company engaged in manufacturing, upgrading, and renovating various types of transformers, such as power transformers, generator transformers, windmill transformers, etc, are in focus after it bagged two new orders from Tamil Nadu Power Distribution Corporation Limited. In this article, we will dive deeper into the details.

With a market capitalisation of Rs 562 crore, the shares of Supreme Power Equipment Ltd reached a day’s high of Rs 238.25 per share, up 9 percent from its previous day’s closing price of Rs 219.15 per share. In the last one year, the stock has delivered a muted return of only 3 percent, underperforming NIFTY 50’s return of 8 percent.

About the Order

Supreme​‍​‌‍​‍‌​‍​‌‍​‍‌ Power Equipment Ltd, through a stock exchange filing announced that, it has secured a new order valued at Rs 2.69 crore by Tamil Nadu Power Distribution Corporation (TNPDCL) for the supply of 75 distribution transformers. Additionally, its partnership firm Danya Electric Company, in which Supreme holds 90 percent control, has also bagged a Rs 1.50 crore additional order to supply 42 transformers. 

The company will be able to maintain steady work and revenue for the near term as both orders are to be completed within about four months. It is also an indication of TNPDCL’s confidence in Supreme Power’s products. Thus, these orders are the company’s growth pipeline and provide a platform for further expansion in the transformer supply ​‍​‌‍​‍‌​‍​‌‍​‍‌market.

Financial and Other Highlights

Supreme Power Equipment reported a revenue of Rs 75 crore in H1 FY26, a growth of 29 percent as compared to Rs 58 crore in H1 FY25. However, it declined by 18 percent from Rs 91 crore in the second half of FY25.

Regarding its profitability, it reported a net profit of Rs 10 crore in H1 FY26, a growth of 43 percent as compared to Rs 7 crore in H1 FY25. However, it reported a decline of 17 percent as compared to Rs 15 crore in the second half of FY25.

As of the end of Q2 2025, the company had a robust order book of Rs 230 crore, which is over 1.5x of its FY25 revenue of Rs 149 crore, providing a good revenue visibility for the future. Out of this FY25 revenue, the company derived 40 percent of its revenue from Distribution Transformer and Energy Efficient Transformer, followed by 28 percent from Power Transformers, 18 percent from Inverter Duty Transformers (Solar)  and the remaining 14 percent from Others.

The stock delivered a robust ROE and ROCE of 22.36 and 28.39 percent respectively, and is currently trading at a low P/E of 26.82x as compared to its industry average of 33.77x.

Supreme​‍​‌‍​‍‌​‍​‌‍​‍‌ Power Equipment is a developing transformer manufacturer who mainly focuses on distribution, power, and inverter-duty solar transformers. They are scaling their business at a fast rate due to the combination of a strong order book, expanded capacity, and increased demand from utilities and renewable projects. The company is quite well-positioned in the Indian power sector, which is going through a transition, as a result of its emphasis on quality, diversification, and prompt ​‍​‌‍​‍‌​‍​‌‍​‍‌execution.

Written by Satyajeet Mukherjee

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