TMC Transformers (India) IPO

Incorporated in February 2009, TMC Transformers (India) Limited is an established transformer manufacturer in India, engaged in designing, manufacturing, and supplying a wide range of power and distribution transformers across multiple voltage classes. The company manufactures oil‑filled transformers up to 160 MVA / 220 kV, dry‑type transformers up to 20 MVA / 36 kV, and compact substations up to 3 MVA / 36 kV, catering to railways, renewable energy, metro, power utilities, industrials, and distribution companies. It operates an integrated, design‑led manufacturing model with in‑house engineering, testing, and certification. TMC Transformers is the only transformer manufacturer in India certified by RDSO for all classes required for 2×25 kV traction substations, and among only two Indian manufacturers approved to produce 100 MVA / 220 kV Scott‑connected traction transformers for Indian Railways.

TMC Transformers (India) Limited IPO Overview

TMC Transformers (India) Limited filed its Draft Red Herring Prospectus with SEBI on June 30, 2026 for a Book Built Issue of ₹5,500.00 million, comprising entirely a fresh issue of shares (no OFS). The equity shares are proposed to list on BSE and NSE. Anand Rathi Advisors Ltd. is the book‑running lead manager, and MUFG Intime India Pvt. Ltd. is the registrar. IPO dates, price band, and lot size are yet to be announced. Pre‑issue shareholding is 6,89,31,455 shares. The net proceeds will be utilised for: (i) funding capital expenditure for a greenfield EHV facility – ₹2,317.76 million; (ii) part‑funding incremental working capital – ₹1,659.52 million; and (iii) general corporate purposes (not exceeding 25% of gross proceeds).

TMC Transformers (India) Limited Upcoming IPO Details

Category	Details
Issue Type	Book Built Issue IPO
Total Issue Size	[.] shares (agg. up to ₹550 Cr)
Fresh Issue	[.] shares (agg. up to ₹550 Cr)
Offer for Sale (OFS)	Nil
IPO Dates	TBA
Price Bands	TBA
Lot Size	TBA
Face Value	₹10 per share
Listing Exchange	BSE, NSE
Shareholding pre‑issue	6,89,31,455 shares
Shareholding post‑issue	TBA

TMC Transformers (India) Limited IPO Lots

Application	Lots	Shares	Amount
Retail (Min)	TBA	TBA	TBA
Retail (Max)	TBA	TBA	TBA
S-HNI (Min)	TBA	TBA	TBA
S-HNI (Max)	TBA	TBA	TBA
B-HNI (Min)	TBA	TBA	TBA

TMC Transformers (India) Limited IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more than 75% of the Net Issue
Retail Shares Offered	Not less than 10% of the Net Offer
NII (HNI) Shares Offered	Not less than 15% of the Net Offer

TMC Transformers (India) Limited IPO Valuation Overview

KPI	Value
Basic EPS (FY2026)	₹14.11
Diluted EPS (FY2026)	₹14.05
P/E Ratio	TBD
Return on Net Worth (RoNW)	62.28%
Net Asset Value (NAV)	₹26.27
Return on Equity (RoE)	75.21%
Return on Capital Employed (RoCE)	79.31%
EBITDA Margin	31.89%
PAT Margin	22.94%
Debt to Equity Ratio	0.13

Objectives of the IPO Proceeds

Particulars	Amount (₹ million)
Funding capex for Proposed Facility	2,317.76
Part‑funding incremental working capital	1,659.52
General corporate purposes*	[●]

*To be determined upon finalisation of Offer Price; shall not exceed 25% of Gross Proceeds.

TMC Transformers (India) Limited Financials (₹ million)

Particulars	31 Mar 2026	31 Mar 2025	31 Mar 2024
Assets	3,952.02	1,721.21	945.22
Revenue from Operations	4,172.35	2,716.85	2,475.25
Profit After Tax	957.12	466.45	150.99
Reserves and Surplus	1,788.88	755.86	289.64
Total Borrowings	1,174.17	206.97	228.62
Total Liabilities	2,162.90	965.11	655.34

Financial Status of TMC Transformers (India) Limited

 

TMC Transformers (India) Limited IPO Strengths

1. Established Transformer Manufacturer with Expertise Across High MVA and High‑Voltage Segments

TMC Transformers has established itself as a prominent transformer manufacturer in India, demonstrating expertise across multiple voltage classes and MVA ratings. The company manufactures oil‑filled transformers up to 160 MVA / 220 kV class, dry‑type transformers up to 20 MVA / 36 kV, and compact substations up to 3 MVA / 36 kV. This technical breadth enables serving diverse end‑use sectors – railways, renewable energy, metro rail, power utilities, industrials, and distribution companies. The recent execution of two 160 MVA / 220 kV transformers for the renewable energy and BESS sector, with successful short‑circuit testing at NHPTL, underscores its capability in higher‑capacity transformers.

2. Strong Presence in the Railway Sector Supported by Comprehensive RDSO Approvals

TMC Transformers is the only transformer manufacturer in India certified by RDSO for all transformer classes required for 2×25 kV traction substations, and among only two manufacturers approved to produce 100 MVA / 220 kV Scott‑connected traction transformers for Indian Railways. As Indian Railways advances towards higher‑capacity 2×25 kV AC traction systems, and with 431 infrastructure projects (35,966 km) sanctioned, the company is uniquely positioned to capture rising demand from this high‑entry‑barrier sector.

3. Integrated In‑House Design, Engineering, Testing, and Certification Capabilities

The company operates a fully integrated design‑led manufacturing model with in‑house capabilities across design, engineering, testing, and certification. This integration allows optimisation of product design, material utilisation, and performance parameters, especially for application‑specific transformers. The in‑house testing infrastructure ensures compliance with stringent quality standards. A notable innovation is the compact transformer configuration – reducing footprint from 3.0 m × 2.5 m to 1.6 m × 1.2 m for a Mumbai metro project through a 15‑18 month design development cycle.

4. Strong Revenue Growth, Profitability, and Healthy Order Book Providing Business Visibility

TMC Transformers has delivered revenue CAGR of 29.83% and PAT CAGR of 151.77% over the last three fiscals. It posted the highest Operating EBITDA Margin (31.89%) and gross profit margin (43.01%) among peers in Fiscal 2026. The order book stood at ₹6,734.18 million as of March 2026, with over 50% of value from 51‑160 MVA transformers, reflecting a shift to higher‑capacity products. Additionally, 48.68% of the order book has raw‑material pass‑through mechanisms, mitigating price volatility and ensuring margin predictability.

5. Experienced Leadership Team with Deep Domain Expertise in Transformer Manufacturing

The company is led by Promoter and CMD Hriday Narayan R Shukla, active in the insulation and transformer industry since 2002. Executive Director Venkatasesha Sita Rama Venugopal Kalavagunta brings over 30 years of transformer design and manufacturing experience. The Key Managerial Personnel and senior management have an average experience of over 18 years, ensuring continuity in technical capabilities and product development. This depth of expertise enables the execution of technically complex projects, management of customer qualifications, and scaling across transformer categories and end‑use sectors.

More About TMC Transformers (India) Limited

1. Business Overview

Incorporated in February 2009, TMC Transformers is an established manufacturer of power and distribution transformers. Its product portfolio includes:

A. Oil‑filled transformers up to 160 MVA / 220 kV

B. Dry‑type transformers up to 20 MVA / 36 kV

C. Compact substations up to 3 MVA / 36 kV

D. The company serves railways, renewable energy, metro rail, power utilities, industrials, and distribution companies.

2. Manufacturing Infrastructure

The Vadodara, Gujarat facility had an installed capacity of 8,500 MVA as of March 2026, which increased to 13,500 MVA by May 2026 after expansion. It is equipped with core cutting, winding machines, and advanced testing infrastructure, enabling consistent quality and timely execution.

3. Backward Integration

Through its wholly‑owned subsidiary Anshuman (acquired in Fiscal 2025), the company processes CRGO electrical steel – a strategic raw material that constitutes a significant cost component. Anshuman’s capacity was 4,500 MT and has been expanded to 7,000 MT (effective May 2026), with further augmentation to 25,000 MT expected by July 2026. In‑house CRGO processing improves material availability, quality control, and cost competitiveness.

4. Order Book and Diversification

As of March 31, 2026, the order book was ₹6,734.18 million, with a growing share of higher‑capacity transformers. The company has executed projects across metro rail systems in Mumbai, Delhi, Pune, Kanpur, Agra, Nagpur, and Patna. Exports have grown, contributing 16.49% of revenue in Fiscal 2026, with customers in the USA, Saudi Arabia, Nigeria, Mexico, Nepal, UAE, and Australia.

5. Planned Expansion

The company is setting up a greenfield facility on 85,493.67 sq. mts. of land in Halol, Gujarat, designed to manufacture transformers up to 500 MVA / 765 kV class, adding 78,000 MVA annual capacity by Fiscal 2029 – expected to be India’s largest transformer facility at a single location. This expansion will enable entry into the EHV segment, catering to transmission utilities, data centres, and large industrials.

Industry Outlook

The Indian power transformer market is poised for robust growth. According to the CRISIL Report, the total annual domestic power transformer market is estimated to reach ₹380‑390 billion by Fiscal 2031 from ₹179 billion in Fiscal 2026, growing at a CAGR of 16.2‑16.8%. Key drivers include:

1. Renewable Energy Integration
Over 200 GW of large utility‑scale RE projects expected by Fiscal 2031, translating to annual transformer demand of 55,000‑65,000 MVA.

2. Transmission Infrastructure
CTUIL has planned ₹5.41 trillion expenditure by Fiscal 2031 for transmission network expansion, including 765 kV/400 kV substations and HVDC systems.

3. Railway Modernisation
Indian Railways is upgrading to 2×25 kV AC traction systems; 431 projects covering 35,966 km are underway.

4. Metro Rail
2,000‑2,500 km of additional metro network expected over the next 5‑6 years, with high transformer intensity.

5. Data Centres
Installed capacity to scale from ~1.2‑1.5 GW to 8‑10 GW by Fiscal 2031, driving demand for high‑reliability transformers.

BESS: More than 50 GWh of BESS capacity under construction/tendering versus a 236 GWh target by 2030.

The EHV segment (above 220 kV) is projected to grow at 17‑18% CAGR between Fiscal 2026 and 2031, characterised by high entry barriers and limited qualified suppliers. India’s transformer exports have grown at a CAGR of 20.1% over the past five years, with Indian manufacturers increasingly preferred for price advantages and quality compliance.

How Will TM C Transformers (India) Limited Benefit

1. The proposed greenfield EHV facility will allow TMC Transformers to capture a share of the fast‑growing EHV transformer market, which is supply‑constrained with incumbent capacities committed until Fiscal 2029‑2030.

2. Strong railway RDSO approvals and execution track record position the company to benefit from the 2×25 kV traction system upgrades and the massive sanctioned railway infrastructure projects.

3. Growing renewable energy and BESS capacity additions will drive demand for higher‑capacity transformers – the company has already demonstrated capability with 160 MVA / 220 kV orders and successful short‑circuit testing.

4. Metro rail expansion across multiple cities offers repeat business opportunities; the company is one of only four suppliers of dry‑type transformers for metro applications.

5. The data centre boom will require reliable EHV transformers – the proposed facility will enable participation in this high‑value segment.

6. Backward integration into CRGO processing reduces raw‑material dependency, improves cost efficiency, and provides a competitive edge in a market where CRGO is largely imported.

7. Export opportunities are expanding as global transformer shortages extend lead times; the company is already exporting to 7+ countries and can leverage its cost‑competitive manufacturing to grow international revenues.

8. The shift towards higher‑capacity transformers (51‑160 MVA) in the current order book is structurally margin‑accretive and supports profitability improvement.

9. The company’s zero‑bad‑debt record and disciplined working‑capital management ensure financial stability while scaling operations.

10. Industry tailwinds from grid modernisation, industrialisation, and urbanisation provide a sustained demand pipeline for the entire product range.

Peer Group Comparison

Name of the Company	Revenue (₹ mn)	Face Value (₹)	P/E	Basic EPS (₹)	Diluted EPS (₹)	RoNW (%)	NAV  (₹)
TMC Transformers (India) Limited	4,172.35	10	NA	14.11	14.05	62.28	26.27
Peer Group
Transformers & Rectifiers India Ltd	25,088.00	1	37.56	9.07	9.07	19.34	51.40
Voltamp Transformers Ltd	21,536.88	10	34.65	301.85	301.85	18.07	1,771.06
Atlanta Electricals Ltd	18,515.17	2	67.46	27.17	27.17	31.52	120.84
Shilchar Technologies Ltd	6,519.40	10	33.22	138.25	138.25	37.91	429.05
Marsons Ltd	2,454.25	1	43.59	2.69	2.69	27.23	12.64
Indo Tech Transformers Ltd	7,820.80	10	33.27	87.36	87.36	51.43	351.89
Danish Power Ltd	5,214.47	10	29.31	35.03	35.03	17.76	234.32

Key Strategies for TMC Transformers (India) Limited

1. Capitalising on Favorable Industry Tailwinds Through a Proposed Greenfield Facility into EHV Power Transformers

TMC Transformers intends to expand its manufacturing capabilities through a proposed greenfield facility focused on higher‑capacity and higher‑voltage transformer categories. This facility, designed for transformers up to 500 MVA / 765 kV class, is expected to add 78,000 MVA annual capacity by Fiscal 2029, making it India’s largest transformer facility at a single location. The expansion will enable participation in transmission infrastructure, renewable energy integration, railway electrification, data centre expansion, and industrial power requirements. The EHV segment is projected to grow at 17‑18% CAGR, and with incumbent capacities committed until Fiscal 2029‑2030, the supply‑constrained market presents a significant opportunity.

2. Deepening Backward Integration in Key Transformer Components (Radiators, PICC, CTC Copper, Tanks) to Strengthen Supply Chain Control

TMC Transformers is setting up in‑house radiator manufacturing capability within the CRGO Processing Facility, expected to commence by Fiscal 2027. Radiators are critical for heat dissipation; in‑house fabrication can yield 20‑30% cost savings and reduce delivery delays of 4‑8 weeks from external suppliers. The company is also evaluating in‑house capabilities for transformer tanks and enclosures, and for PICC and CTC copper components. These integrations will reduce dependence on third‑party vendors, improve quality control, enhance coordination with core‑coil assembly, and lower logistics costs. Combined with existing CRGO processing (capacity expanding to 25,000 MT by July 2026), these moves will strengthen cost competitiveness and margin resilience.

3. Capitalising on Structural Demand Growth in Renewable Energy, BESS, Metro Rail, and Data Centre Infrastructure

TMC Transformers is well‑positioned to capture demand from high‑growth sectors. In renewable energy and BESS, over 200 GW of utility‑scale RE projects and 236 GWh of BESS capacity are targeted by 2031. The company has already executed 160 MVA / 220 kV transformers for this segment. In metro rail, 2,000‑2,500 km of new network will drive demand for dry‑type and traction transformers. The company is one of four suppliers for metro dry‑type transformers. In data centres, capacity is expected to grow from 1.2‑1.5 GW to 8‑10 GW by 2031, requiring high‑reliability EHV transformers. The planned facility will enable participation in these structurally growing sectors.

4. Driving Growth Through New Customer Acquisition and Increasing Wallet Share Across Existing Relationships

TMC Transformers aims to deepen engagement with existing customers by leveraging its integrated design, manufacturing, and testing capabilities, while also expanding its customer base. The proposed greenfield facility will enhance capabilities in higher‑capacity and higher‑voltage transformers, enabling it to offer a broader product portfolio to existing clients and attract new customers in transmission utilities, data centres, and large industrials. The company also intends to expand its export presence, currently covering USA, Saudi Arabia, Nigeria, Mexico, Nepal, UAE, and Australia, targeting Middle East, North America, Africa, and South‑East Asian markets. With global transformer shortages extending lead times to 2‑3 years, Indian manufacturers are well‑placed to capture export demand.