Voltamp Transformers (VAMP IN) – Q3FY26 Result Update – Strong Q3; domestic demand remains intact – BUY
Published on 06 Feb 2026
Voltamp Transformers (VAMP) delivered a strong quarter with revenue up 30.4% YoY, though EBITDA margin contracted 257bps YoY due to gross margin compression. Domestic demand momentum remains robust, with healthy visibility across industrial segments such as commercial & industrial, steel, metals, cement and state utilities (including GETCO). The company has incurred ~Rs1.2bn capex (till date) toward its 6,000MVA capacity expansion, which is on track for completion by Q1FY27 and is expected to cater to rising demand from data centers, renewables and infrastructure-led projects. However, rising private-sector capacity additions and intensifying competition could exert pricing pressure, leading to margin normalization. During the quarter, order inflows were impacted by higher copper prices, which slowed order finalization for time being. Near-term pricing and supply-chain challenges remain key monitorables, although underlying demand outlook remains strong over the next few years. The stock is trading at a P/E of 21.4x/19.0x FY27/28E. We maintain ‘BUY’ rating, valuing the stock at a P/E of 26x Sep’27E (same as earlier) with a TP of Rs10,312 (Rs10,318 earlier).
