💰 Financial Performance

Revenue Growth by Segment

Revenue fell from INR 3.4 Cr in FY23 to INR 0.2 Cr in FY24, representing a 94.1% decline. For Q2 FY26, total income from operations was INR 0.0752 Cr, a 93.8% decline from INR 1.21 Cr in Q1 FY26. The company operates in a single segment: manufacturing and repairs of Transformers.

Geographic Revenue Split

Not disclosed in available documents. Operations are primarily centered in Maharashtra with units in Boisar and Wada.

Profitability Margins

Net Profit Margin surged to 1313.82% in FY25 from -124.33% in FY24, a variance of -1156.72%. This surge is largely attributable to exceptional items and provision reversals rather than core operations. PAT margins were -781.1% in FY24 compared to -657.6% in FY23.

EBITDA Margin

Not explicitly disclosed, but the company reported a profit of INR 16.15 Cr for FY25 compared to a net loss of INR 1.25 Cr in FY24. ROCE improved to 161.03% in FY25 from -4.49% in FY24.

Capital Expenditure

The company previously developed manufacturing facilities at Wada with an outlay of INR 43 Cr (INR 430 million) to produce transformers ranging from 1 kVA to 5000 kVA.

Credit Rating & Borrowing

The company is rated 'CRISIL D/CRISIL D Issuer Not Cooperating', indicating default status. Adjusted debt/adjusted networth was -2.3 times in FY24, and the interest coverage ratio was -0.15 times.

⚙️ Operational Drivers

Raw Materials

Power and distribution transformer components including CRGO steel, copper, and transformer oil. Specific cost percentages are not disclosed.

Capacity Expansion

Current facilities at Wada are designed to manufacture transformers ranging from 1 kVA to 5000 kVA. No specific expansion timeline is provided.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but management identifies input availability and prices as critical factors influencing operations.

Manufacturing Efficiency

Manufacturing efficiency is currently low as evidenced by the significant drop in revenue from INR 3.4 Cr to INR 0.2 Cr and a current ratio of only 0.52.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company aims to leverage its long-term presence (since 1988) and strong brand name to target the growing infrastructure and renewable energy sectors. Strategy includes resolving legal contingencies to recover bad debts, such as the INR 8.665 Cr claim against Choudhary Global Limited.

Products & Services

Manufacturing and repair of power and distribution transformers ranging from 1 kVA to 5000 kVA.

Brand Portfolio

Tarapur

Market Expansion

Targeting utilities, industrial, commercial, and renewable energy sectors driven by the growing Indian economy.

Strategic Alliances

Bilpower Ltd holds a controlling stake of 41.46% in the company.

🌍 External Factors

Industry Trends

The industry is evolving with a focus on renewable energy and infrastructure growth. The company is positioned as a long-term player but faces high volatility and credit adequacy risks.

Competitive Landscape

The company faces a volatile market with competition in the transformer manufacturing and repair segment.

Competitive Moat

The company's moat is based on its brand name and presence since 1988. However, sustainability is threatened by its 'Default' credit rating and lack of management stability.

Macro Economic Sensitivity

Highly sensitive to global and domestic demand/supply conditions and government regulations affecting the power sector.

Consumer Behavior

Demand is driven by utility and industrial sector requirements for power distribution infrastructure.

Geopolitical Risks

Global demand conditions are cited as a factor that could influence operations.

⚖️ Regulatory & Governance

Industry Regulations

Operations are influenced by government regulations and changes in laws affecting the power and manufacturing sectors.

Taxation Policy Impact

Subject to changes in government tax laws and regulations.

Legal Contingencies

The company has filed an application under Section 7 of IBC, 2016 with NCLT Mumbai against Choudhary Global Limited for an outstanding amount of INR 8.665 Cr. In FY25, INR 0.4315 Cr was recovered.

⚠️ Risk Analysis

Key Uncertainties

Management volatility and frequent director changes pose a high risk to operational stability. Credit risk is critical given the CRISIL D rating.

Geographic Concentration Risk

Manufacturing and repair units are concentrated in Maharashtra (Boisar and Wada).

Third Party Dependencies

High dependency on Bilpower Ltd, which maintains a controlling 41.46% stake.

Technology Obsolescence Risk

The company manufactures transformers up to 5000 kVA; failure to upgrade technology for higher capacity or more efficient units could lead to obsolescence.

Credit & Counterparty Risk

Significant exposure to Choudhary Global Limited (INR 8.665 Cr), which is currently under litigation for recovery.