Voltamp Transformers (VAMP IN) – Q1FY27 Result Update – Healthy Q1, Solid execution outweighs margin pressure – ACCUMULATE

Voltamp Transformers (VAMP) reported a strong 1QFY27 performance, with revenue increasing 28.4% YoY. EBITDA margin, however, contracted by 238bps YoY, likely reflecting the continuing impact of higher input costs and supply chain disruptions amid Middle East conflict. YTD order inflow remained healthy, supported by robust demand across industrials, utilities, renewables and data centres, further strengthening the order book and providing healthy execution visibility. Execution of the legacy fixed-price order book (~Rs3bn) may be largely completed over the next 1–2 quarters Management remains confident of delivering healthy volume growth in FY27, backed by a strong enquiry pipeline across key end-user industries. While commissioning of the new 6,000 MVA EHV transformer facility has been deferred to Oct'26 due to delays in equipment deliveries, VAMP has announced an additional INR900mn capex to set up a 2,300 MVA dry-type transformer facility, expected to be commissioned by end-FY28, expanding its addressable market. Supply constraints in CRGO steel and select critical components, along with geopolitical uncertainties, remain near-term key factor to watch. We retain our ‘Accumulate’ rating, valuing the stock at a P/E of 27x Mar’28E (26x Mar’28E earlier) factoring in strong order inflow and capacity addition supporting long term growth with a revised TP of Rs11,003 (Rs10,503 earlier).