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Atlanta Electricals - A Leading Transformer Manufacturer

22 Sep 2025 , 05:27 PM

Atlanta Electricals Limited (formerly Atlanta Electricals Private Limited) is a Gujarat-based manufacturer of power and special‑duty transformers. It has expanded its manufacturing capacity to ≈ 47,280 MVA per annum (up to 200 MVA/220 kV) as of FY25. It operates in an industry witnessing robust growth due to rising infrastructure demand, government initiatives, and declining import dependence.

The IPO is aimed at strengthening Atlanta Electricals’ manufacturing base and providing liquidity to its promoter shareholders.

Offer Details of the IPO

Total Offer Size: Up to INR 6,873.41 million
Fresh Issue: Up to INR 4,000 million
Offer for Sale: Up to INR 2,873.41 million

Up to 435,900 Equity Shares by Atlanta UHV Transformers LLP (promoter selling shareholder)
Up to 666,560 Equity Shares by Hemang Harendra Shah
Up to 777,185 Equity Shares by Nimish Harendra Shah
Up to 217,500 Equity Shares by Dhaval Harshadbhai Mehta (jointly with Avanee Dhavalbhai Mehta)
Up to 326,250 Equity Shares by Gitaben Harshadbhai Mehta (jointly with Harshadbhai Amritlal Mehta)
Up to 1,387,500 Equity Shares by Jignesh Suryakant Patel

Price Band: INR. 718 to INR 754 per Equity Share

Book‑Running Lead Managers

Motilal Oswal Investment Advisors Limited
Axis Capital Limited

Electrical Transformer Industry – Deep Dive

The transformer industry is a cornerstone of the power‑electronics ecosystem. It supplies the critical equipment that steps up, steps down, and conditions voltage for generation, transmission, distribution, and end‑use applications. The sector is highly regulated (e.g., IS 1180 for distribution transformers, IS 3024 for electrical steel, CEA safety & type‑test rules) and is characterised by a mix of large, vertically‑integrated manufacturers and a broad base of specialised component suppliers.

Key Segments	Typical Applications
Power Transformers (≤ 200 MVA, 11 kV‑220 kV)	High‑voltage transmission, grid interties, renewable‑energy farms, railways, and industrial captive power
Distribution Transformers (≤ 66 kV)	Sub‑station step‑down, rural electrification, urban distribution networks
Auto‑Transformers	Voltage‑class bridging in substations, rail traction, and industrial plants
Inverter‑Duty / Renewable‑Duty Transformers	Solar‑PV inverters, wind‑farm converters, EV‑charging stations
Furnace & Generator Transformers	Arc‑furnace plants, large‑scale generators, heavy‑industry processes
Specialty / Smart Transformers (phase‑shifting, solid‑state, IoT‑enabled)	Grid‑stability services, micro‑grids, digital substations
Transformer Components (electrical steel, windings, bushings, tap‑changers, insulating oil, etc.)	Core & winding manufacture, retrofit upgrades, OEM supply chain

Source: RHP

Table: Segment wise growth estimates

Segment	Past Growth Rate(CAGR)	Future Growth Rate(Projected CAGR)	Comment
Global Transformer Market (all types)	4.9 % (2019‑2023)	7.3 % (2024‑2030)	Driven by grid expansion in emerging economies, renewable energy integration, and the replacement of ageing assets.
Power Transformers	10.4 % (2019‑2023)	7‑8 % (2024‑2030)	Strong demand from high‑voltage transmission upgrades, UHV projects, and renewable‑energy parks; slower pace as markets mature.
Distribution Transformers	14.2 % (2019‑2023) – global; 6.5 % (2024‑2030) – projected	6.5 % (2024‑2030) – projected	Rural electrification, Make‑in‑India incentives, and T&D retro‑fitting fuel growth; after a brief dip in 2020, the segment stabilises.
Transformer Components (cores, windings, bushings, etc.)	7.4 % (2019‑2024)	8.8 % (2024‑2030)	Accelerated by smart‑grid and digital‑substation roll‑outs, higher‑efficiency core designs, and increased OEM localisation.
Indian Power‑Transformer Market	5.8 % (AC‑capacity CAGR 2019‑2025)	21‑22 % (FY 2025‑30) for > 220 kV segment; overall 6‑7 % (2024‑2030)	Government‑driven transmission‑capex (≈ ₹4.25 trn by 2027), renewable‑energy targets (500 GW by 2030), and aggressive Make‑in‑India policies.
Indian Distribution‑Transformer Market	8.6 % (FY 2024‑25 export growth) / 14.2 % (global 2019‑23)	6.5 % (2024‑2030)	Expansion of rural grids, DD‑sector reforms, and higher‑efficiency, eco‑friendly designs.
Imports / Exports (India – all transformer HS‑codes)	Imports ↑ 14.1 % YoY (FY 2025); Exports ↑ 8.6 % YoY (FY 2025)	Export value projected to reach USD 3.13 bn in FY 2025 and grow ~7 % annually; imports expected to stay above USD 3.6 bn with a similar trajectory.	India remains a net importer of high‑spec components (electrical steel, specialty cores) while expanding its export footprint to the US, EU, China, and the Middle East.
Specialty / Smart Transformers	12.2 % (2024‑2030 global CAGR – emerging)	12.2 % (2024‑2030)	Growth fueled by IoT‑enabled monitoring, solid‑state designs, and the need for flexible, low‑loss solutions in renewable and data‑center applications.

Source: RHP

Key Drivers of Growth

Renewable‑energy transition – 500 GW of non‑fossil capacity by 2030 pushes demand for high‑capacity, inverter‑duty, and grid‑stability transformers.
Transmission & Distribution (T&D) modernisation – Large‑scale grid‑upgrades, retro‑fitting of > 25‑year‑old assets and rural electrification programmes (e.g., Saubhagya, DDUGJY).
Regulatory & policy support – “Make‑in‑India”, PLI schemes, BIS certification, CEA safety & type‑test regulations create a predictable investment environment.
Technological shift – Smart‑grid, digital substations, phase‑shifting, and solid‑state transformers raise the average unit value and spur component‑level growth.
Supply‑chain dynamics – Heavy reliance on imported electrical steel and copper creates price‑volatility risk but also incentivises domestic backward integration, a focus of many Indian manufacturers.

These trends collectively underpin a robust outlook for the transformer ecosystem, with both traditional power‑transformer volumes and high‑growth specialty segments set to expand over the next decade.

Atlanta Electricals Limited – Company Overview

Atlanta Electricals Limited was incorporated on 15 December 1988 in Gujarat, India. Atlanta Electricals specializes in the design, manufacture, testing, supply, and after-sales service of power, auto-duty, and inverter-duty transformers ranging from 5 MVA to 200 MVA and up to 220 kV. The company also produces special-duty units, reactors, and related accessories. The company employs around 1,200 people across engineering, production, sales, and support functions.

The company was founded by the Patel family, including Niral Krupeshbhai Patel (Chairman & Managing Director), Amish Krupeshbhai Patel, Tanmay Surendrabhai Patel, and the Narharibhai S. Patel Family Trust. The family collectively holds approximately 78% of the equity (pre-offer) and provides strategic direction through various family trusts and the LLP, Atlanta UHV Transformers LLP.

Key Milestones:

1988: Delivered its first 33 kV/66 kV transformers.
2006–07: Developed its first 15 MVA arc-furnace transformer for the steel industry, earning an innovation award.
2013–14: Supplied its first 160 MVA, 220/66 kV power transformer to GETCO.
2025: Acquired BTW-Atlanta Transformers India Private Limited (100% ownership) and commissioned a new 500 MVA/765 kV facility at Vadod. BTW’s acquisition adds approximately 15,780 MVA of manufacturing capacity

Manufacturing Footprint:

Anand (Gujarat): Legacy plant with an approximate capacity of 47,280 MVA.
Vadod (Gujarat): New 500 MVA/400 kV line with a capacity of approximately 30,540 MVA.
Ankhi (Bharuch, Gujarat): Additional capacity of approximately 15,780 MVA through the BTW acquisition.

Joint Venture / Former JV:

Baoding Tianwei Baobian Electric Co., Ltd, a Chinese partner, was originally a 49%/10% stakeholder in BTW. In February 2025, Atlanta Electricals exercised its right of first refusal and acquired Baoding’s 90% stake for INR 1,644.17 million.

Key Suppliers: Top suppliers include Amod Stampings Pvt Ltd, NKM Cables & Strips, and Vidya Wires. Collectively, the top ten suppliers account for approximately 20–22% of the company’s raw material expenditure.

Major Customers: Leading customers include Gujarat Energy Transmission Corporation (GETCO), Adani Green Energy, TATA Power, and SMS India. In FY 2025, 74% of revenue was derived from the top ten customers. Government and public-sector orders dominate the order book, contributing approximately 82%.

Competitive Positioning

Dimension	Atlanta Electricals	Peer comparison (Voltamp, Transformers & Rectifiers, Danish Power)
Market share (transformer production ≤ 220 kV)	~ 12 % (largest private‑sector player in the segment)	Voltamp ≈ 15 % (larger overall capacity but lower‑voltage focus)
Revenue growth (FY 2023‑25)	CAGR ≈ 19 % (₹ 8 739 mn → ₹ 12 442 mn)	Voltamp ≈ 20 % (₹ 19 342 mn → ₹ 22 162 mn)
EBITDA margin	16 % (below Voltamp’s 23 % but above many regional players)	Voltamp 23 %, Transformers & Rectifiers ≈ 18 %
Product breadth	Power, auto‑duty, inverter‑duty, reactors, special‑duty units up to 200 MVA (now 500 MVA after BTW)	Similar breadth, but fewer ultra‑high‑voltage (> 220 kV) offerings
Order‑book quality	82 % government & public‑sector; strong pipeline in renewable‑energy & rail‑transport projects	Mixed public‑private mix; less reliance on single‑buyer segments
Geographic footprint	Primarily western & central India (Gujarat, Karnataka) with a pan‑India sales network	More dispersed manufacturing sites (multiple states)
R&D / Innovation	Multiple awards (Best Equipment Supplier, Quality Excellence for Renewable); dynamic short‑circuit testing capability	Comparable R&D spend; fewer recent awards.

Source: RHP

Atlanta Electricals is a leading Indian transformer manufacturer with a strong government‑order base, rapid capacity expansion (through organic growth and the strategic BTW acquisition), and high profitability ratios relative to many peers. The company sits just behind the larger, more diversified listed players on EBITDA margin but enjoys a higher ROE and a more focused product line that aligns with the nation’s power‑infrastructure push (renewables, high‑speed rail, data‑centre grid upgrades).

Strengths:

Scale & Capacity: 47,280 MVA legacy plus 15,780 MVA from BTW, resulting in > 63,000 MVA capacity, enabling large-order fulfilment (up to 500 MVA/765 kV).
Strategic Order‑book: FY 2025 order-book of ₹ 16,430 mn, with over 80 % from government and public-sector entities, providing strong visibility and low-price-sensitivity contracts.
Promoter Commitment: Family-trust structure ensures long-term capital support; promoters have pledged guarantees of approximately ₹ 7,344 mn for working-capital facilities.
Experienced Management: Senior leadership (CEO Akshay Kumar Mathur, CFO Mehul Mehta, COO Anand Sharma) collectively bring significant industry experience.
Geographic Advantage: Manufacturing hub in Gujarat offers low logistics costs and proximity to major load-centers and ports.
Financial Discipline: Positive operating cash-flow of ₹ 835 mn.
Technology & Testing: In-house dynamic short-circuit testing facilities (up to 160 MVA), a differentiator for high-spec projects.

Weaknesses & Risks

Customer concentration: 74 % of FY 2025 revenue comes from the top‑10 customers; loss of any large utility could materially dent earnings.
Integration risk: The BTW acquisition brings a sizeable loan (₹ 804.6 mn) and a subsidiary that reported negative net working capital in FY 2025; successful integration is critical to realise synergies.
Going‑concern note on BTW: Independent auditors flagged a “going‑concern” issue for BTW due to its negative working capital; any prolonged cash‑flow strain could affect the consolidated group.
Margin gap vs top peers: EBITDA margin (16 %) trails the best listed peer (Voltamp ≈ 23 %); pricing pressure or higher input costs could compress margins further.
Limited ultra‑high‑voltage exposure: While capacity now reaches 765 kV, the company’s historical expertise is concentrated below 220 kV; competing for mega-projects against more established global players may be challenging.
Absence of strategic external investors: The capital structure is promoter-driven; a lack of a strategic minority investor may limit access to additional expertise, technology, or market channels.

Financial Profile

Acquisition driven revenue growth: Acquisition of BTW added INR 4,766 mn of BTW’s revenue in FY25. Also, order book rose to ₹ 16,429.58 mn (up 29 % YoY) with a strong pipeline from government utilities (₹ 13,485 mn) and private sector projects.

EBITDA Margin bounced back: EBITDA growth (+62 % YoY) reflects the pro-forma operating contribution of BTW and higher sales volumes.

Table: Peers Comparison

Name of the Company	Revenue from Operations (₹ million)	Closing Price as of September 11, 2025	P/E	EPS (₹) (Diluted)
Atlanta Electricals Limited	12,441.80	NA	45.5	16.57
Voltamp Transformers Limited	19,342.30	7125	22.15	321.65
Transformers and Rectifiers India Limited	20,193.82	504.5	69.97	7.21
DanishPower Limited	4,267.09	891.3	25.8	34.55

Source: RHP

Table 1: KPI Comparison

Company	Particulars (Unit)	FY 23	FY 24	FY 25	CAGR
Atlanta Electricals Limited	Revenue from operations (₹ million)	8,738.83	8,675.53	12,441.80	20%
	Growth in Revenue from Operations (%)	39.67	-0.72	43.41	–
	EBITDA (₹ million)	1,431.15	1,231.58	1,998.82	18%
	EBITDA Margin (%)	16.38	14.20	16.07	–
	Profit after tax (₹ million)	874.73	635.21	1,186.47	17%
	PAT Margin (%)	10.01	7.32	9.54	–
	ROE (%)	53.05	27.80	33.91	–
	ROCE (%)	57.99	42.34	39.43	–
	Net Working Capital (₹ million)	1,365.52	1,586.35	2,207.60	–
	Net Working Capital (Days)	57	67	65	–
	Order Book (₹ million)	5,340.62	12,713.80	16,429.58	–
	Order Book break-up
	Orders from government and public sector entities (₹ million)	3,306.68	9,375.23	13,485.20	–
	Private sector entities (₹ million)	2,033.94	3,338.57	2,944.38	–
Voltamp Transformers Limited	Revenue from operations (₹ million)	13,851.04	16,162.23	19,342.30	20%
	Growth in Revenue from Operations (%)	22.88	16.69	19.68	–
	EBITDA (₹ million)	2,308.74	3,223.44	4,509.17	30%
	EBITDA Margin (%)	16.67	19.94	23.31	–
	Profit after tax (₹ million)	1,999.43	3,073.61	3,254.32	28%
	PAT Margin (%)	14.44	19.02	16.82	–
	ROE (%)	18.06	22.71	20.50	–
	ROCE (%)	23.60	29.55	27.57	–
	Net Working Capital (₹ million)	3,799.09	3,693.47	5,133.02	–
	Net Working Capital (Days)	100	83	97	–
	Order Book (₹ million)	8,406.60	N.A.	11,290.00	–
	Order Book break-up
	Orders from government and public sector entities (₹ million)	N.A.	N.A.	N.A.	–
	Private sector entities (₹ million)	N.A.	N.A.	N.A.	–
Transformers & Rectifiers India Limited	Revenue from operations (₹ million)	13,959.70	12,946.76	20,193.82	19%
	Growth in Revenue from Operations (%)	20.16	-7.26	55.98	–
	EBITDA (₹ million)	1,208.76	1,341.09	3,624.01	49%
	EBITDA Margin (%)	8.66	10.36	17.95	–
	Profit after tax (₹ million)	423.45	470.05	2,164.35	80%
	PAT Margin (%)	3.03	3.63	10.72	–
	ROE (%)	10.34	8.03	17.29	–
	ROCE (%)	14.38	14.07	21.86	–
	Net Working Capital (₹ million)	5,248.23	6,246.27	6,270.28	–
	Net Working Capital (Days)	137	176	113	–
	Order Book (₹ million)	17,730.00	25,820.00	51,327.90	–
	Order Book break-up
	Orders from government and public sector entities (₹ million)	N.A.	18,590.40	26,320.00	–
	Private sector entities (₹ million)	N.A.	7,229.60	25,007.90	–
Danish Power Limited	Revenue from operations (₹ million)	1,887.01	3,324.77	4,267.10	37%
	Growth in Revenue from Operations (%)	26.96	76.19	28.34	–
	EBITDA (₹ million)	148.66	537.13	890.39	74%
	EBITDA Margin (%)	7.88	16.16	20.87	–
	Profit after tax (₹ million)	85.71	380.74	575.91	91%
	PAT Margin (%)	4.54	11.45	13.50	–
	ROE (%)	21.55	60.35	18.00	–
	ROCE (%)	23.90	56.98	25.97	–
	Net Working Capital (₹ million)	211.50	399.65	1,168.60	–
	Net Working Capital (Days)	41	44	100	–
	Order Book (₹ million)	N.A.	N.A.	4,500	–
	Order Book break-up
	Orders from government and public sector entities (₹ million)	N.A.	N.A.	N.A.	–
	Private sector entities (₹ million)	N.A.	N.A.	N.A.	–