Marsons - Marsons

📊 BSE: 517467 🏢 Other Electrical Equipment 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total income grew by 4,055% YoY in 9MFY25, reaching INR 117.10 Cr compared to INR 2.82 Cr in 9MFY24. Revenue is primarily driven by Government Contracts (50-60%), EPC Contracts (30-40%), and Direct End User contracts (<10%).

Geographic Revenue Split

Currently focused on the domestic market, specifically Eastern India and the North Eastern Region (NER). The company is expanding internationally with a UK-based subsidiary expected to be operational in H1 FY26 to target the UK and European markets.

Profitability Margins

PAT margin significantly improved to 16.25% in 9MFY25 from 6.38% in 9MFY24. Q3FY25 PAT margin stood at 13.59% compared to 23.07% in Q3FY24, though the prior year's margin was on a much smaller revenue base of INR 0.65 Cr.

EBITDA Margin

EBITDA margin for 9MFY25 was 16.72% (INR 19.58 Cr) compared to 24.97% in 9MFY24. The margin for Q3FY25 was 14.06%, reflecting the stabilization of costs as the company scales operations.

Capital Expenditure

The company plans to double its manufacturing capacity from 4,500 MVA to 9,000 MVA by FY27 with limited capex requirement by utilizing its existing land bank of 350,000 sq. mtr. and constructed sheds.

Credit Rating & Borrowing

Not disclosed in available documents; however, finance costs are minimal at INR 0.08 Cr for 9MFY25, representing only 0.07% of total income.

⚙️ Operational Drivers

Raw Materials

Cold Rolled Grain Oriented (CRGO) Steel (35%), Copper (25%), and Transformer Oil (7-8%).

Capacity Expansion

Current installed capacity is 4,500 MVA (FY25), with a planned expansion to 9,000 MVA by FY27.

Raw Material Costs

Raw materials constitute approximately 60% of the total cost mix (CRGO and Copper). Procurement is managed on an order-basis requirement to align with contract specifications.

Manufacturing Efficiency

Current capacity utilization is 30% for FY25, providing significant headroom for growth as the order book expands toward the 9,000 MVA target.

Logistics & Distribution

The company leverages its location in Kolkata to serve Eastern India and NER, reducing logistics costs for regional government and corporate contracts.

📈 Strategic Growth

Expected Growth Rate

100%

Growth Strategy

Growth will be achieved by doubling manufacturing capacity to 9,000 MVA by FY27, entering the UK/EU markets via a new subsidiary, and diversifying into high-growth segments such as renewable energy (Inverter Duty Transformers) and Railways (traction transformers).

Products & Services

Power Transformers (up to 160 MVA 220 kV), Distribution Transformers, Furnace Transformers, Dry Type Transformers, Solar Transformers, and Traction Transformers.

Brand Portfolio

Marsons

New Products/Services

Inverter Duty Transformers and Generator Step-Up Transformers for solar and wind plants, expected to contribute 30-40% of revenue by FY27.

Market Expansion

Expansion into the UK and Europe through a strategic hub subsidiary in H1 FY26 and entry into the Railway traction transformer market.

Market Share & Ranking

Largest manufacturer of transformers by capacity and range in Eastern India and the North Eastern Region.

🌍 External Factors

Industry Trends

The Indian transformer industry is growing at a rapid pace, with demand expected to double due to grid strengthening and a 500 GW renewable energy target by 2030.

Competitive Landscape

Competes with global majors like ABB, Siemens, and Alstom, but maintains regional dominance and is entering the exclusive traction transformer market with limited competition.

Competitive Moat

Durable advantage as the only manufacturer in Eastern India/NER with 220 kV class infrastructure and a 60-year track record, providing significant logistical and technical barriers to entry.

Macro Economic Sensitivity

Highly sensitive to power sector infrastructure spending, specifically the INR 4.8 trillion transmission capex projected for FY23-27.

Consumer Behavior

Shift toward data centers (consuming 30x more power than office buildings) and renewable energy is driving demand for specialized, high-efficiency transformers.

Geopolitical Risks

Benefiting from global supply constraints in the US and EU, where lead times for large power installations range from 80 to 210 weeks.

⚖️ Regulatory & Governance

Industry Regulations

Operations are influenced by the Revamped Distribution Sector Scheme (RDSS) and Central Electricity Authority (CEA) standards for transformer manufacturing and testing.