Voltamp Transformers (VAMP IN) – Q4FY26 Result Update – Soft Q4, legacy order book & Input cost weigh on margins – Downgrade to ‘ACCUMULATE’

Voltamp Transformers (VAMP) delivered a soft quarter performance with revenue declined by 1.2% YoY and EBITDA margin contracted 377bps YoY due to sharp escalation in transformer oil prices and currency fluctuations led to rise in raw material prices. The YTD order book remains healthy at INR15.1bn (inc. INR3.1bn Apr’26 inflow) reflecting strong demand however ~INR7.5bn of the order book comprises legacy fixed-price orders booked prior to the sharp rise in raw material prices, which is expected to exert near-term margin pressure. Further new order booked at updated cost, implying stable margins on new inflows rather than incremental margin expansion. The new plant, expected to be operational by Jul’26, should support volume growth by catering additional demand from data centers, EPC (ex- Utilties), GETCO and private players, while additional land acquisition capex (~INR250mn) reflects preparedness for future expansion opportunities. Near-term pricing pressure, legacy order backlog execution and supply-chain bottlenecks remain key monitorables, although the demand outlook continues to remain healthy. We revise our FY27-28 EPS estimates by -10.1%/ -3.9% and downgrade our rating from ‘BUY’ to ‘Accumulate’ factoring in margin pressures from legacy orders and supply-chain constraints. We roll forward to Mar’28E, valuing the stock at a P/E of 26x Mar’28E (26x Sep’27E earlier) with a revised TP of Rs10,503 (Rs10,312 earlier). Downgrade to ‘Accumulate’.