Transformer stock with revenue CAGR guidance of up 35% to keep an eye on

Synopsis:
A small-cap stock is in focus after announcing that its management has given the future outlook of the company.

A small-cap Company that is in the business of power engineering and specialized high voltage and high current Transformer Bushing, is in the spotlight following the announcement of its Revenue and margin guidance for FY26 in their Q2 results. The article below provides a detailed overview of the company’s performance and future outlook.

With a market capitalization of Rs. 1,399.01 crore, the shares of Yash Highvoltage Limited is trading at Rs. 490, up by 0.04 percent from its previous closing price of Rs. 489.80 per equity share.

Q2 Results

Yash Highvoltage delivered a strong half-yearly performance in September 2025, recording revenue of ₹100 crore, up 75.44% from ₹57 crore in September 2024. EBITDA rose sharply to ₹21 crore, marking a 90.91% increase compared to ₹11 crore a year earlier, reflecting improved operating efficiency and scale benefits. 

Net profit surged to ₹14 crore, registering a robust 133.33% jump from ₹6 crore in the previous period, highlighting significant bottom-line strength and margin expansion.

Strategic Targets and Growth Outlook  

Yash has outlined an ambitious long-term growth roadmap, backed by clear revenue and profitability targets. The company is aiming for a minimum 35% revenue CAGR over the next five years, signalling strong confidence in its business model, market positioning and demand pipeline. For FY26, management expects to achieve a 200-plus crore turnover, laying a solid foundation for the multi-year expansion ahead.

Long-Term Vision

Looking further ahead, Yash believes it is well-positioned to scale significantly, projecting that the company can grow its revenues by 8x to 10x over the next 8 to 10 years. Even at that size, the company notes it would still account for less than 5% of the global market, highlighting the vast runway and competitive whitespace available for sustained expansion.

Profitability and Margin Guidance

In the near term (FY26–FY27), Yash aims to maintain or slightly improve its EBITDA margin, currently at 22–23%. This stability is expected to be supported by a favourable business mix, operational efficiency, and disciplined cost management. The company views consistent margins as a key pillar of its growth strategy, reinforcing a balanced focus on scale and profitability.

About the Company

Yash Highvoltage Ltd., founded in 2002 and headquartered in Vadodara, manufactures and sells high-voltage and high-current transformer bushings in India and overseas. Its product range includes OIP, RIP, and RIS condenser bushings, high-voltage/high-current bushings, OIP wall bushings, and oil-to-oil bushings. The company also provides repair, retrofitting, and replacement services for old bushings and additionally engages in investments in share capital.

As of September 2025, the company’s shareholding pattern shows that promoters hold 57.94 percent of the total equity, Foreign Institutional Investors (FIIs) hold 0.18 percent, while Domestic Institutional Investors (DIIs) own 10.13 percent. The public shareholding stands at 31.74 percent, reflecting a healthy level of institutional and retail participation in the company.

Written by: Akshay Sanghavi

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