Financial Performance Highlights
Raksan Transformers Limited reported strong financial results for FY25-26 with revenue from operations growing 12% to ₹363.11 crore and net profit surging 60.6% to ₹33.35 crore. Key financial ratios showed significant improvement with debt-equity ratio halving to 0.27 times and net profit margin expanding to 9.19% from 6.40%. The company maintained healthy operational metrics with distribution transformers operating at 91.68% capacity utilization and power transformers at 95.19%.
Operational and Business Update
The company successfully diversified its customer base, reducing top-5 customer concentration to 46.36% from 75.08% previously, with private and industrial customers now contributing approximately 50% of revenue. The order book stood robust at ₹329.68 crore as of June 30, 2026, with 83 active orders. Revenue mix comprised distribution transformers (64.18%), power transformers (27.58%), and others (8.24%).
Corporate Actions and Capital Structure
Raksan Transformers completed a significant 18:1 bonus issue, increasing paid-up share capital from ₹86.74 lakh to ₹164.81 lakh. The company also completed its IPO and listing on BSE SME in September 2026, raising capital through issuance of 44.13 lakh fresh shares at ₹273 per share. No dividend was recommended for FY25-26 to conserve resources for expansion.
Expansion and Capacity Enhancement
The company is undertaking a major capacity expansion project at Liwaspur, Sonipat, with estimated cost of ₹72.58 crore. The project will enhance power transformer capacity from 1,350 MVA to 3,250 MVA and add 704 MVA inverter-duty transformer capacity. IPO proceeds of ₹62.14 crore have been allocated toward this expansion.
Related Party Transactions and Governance
Significant related party transactions included purchases of ₹447.04 crore from SHR Power Private Limited and director remuneration of ₹1.50 crore to Sanjeev Kanda. The board composition includes Chairman & MD Sanjeev Kanda, Whole-time Director Dievam Singh Kanda, and independent directors Kamal Dev Arora and Lokesh Vats.
AGM and Forward Outlook
The 31st Annual General Meeting is scheduled for December 5, 2026, with agenda items including adoption of financial statements, reappointment of directors, appointment of new auditors, and approval of registered office shift to Haryana. The company benefits from strong industry tailwinds including record peak power demand of 241.2 GW and projected transmission investment of ₹4.25 lakh crore for 2022-27.