Atlanta Electricals Limited concluded FY26 with a record financial performance, reporting robust revenue growth, significant margin expansion, complete repayment of all term debt, and a landmark regulatory approval at its Vadod manufacturing facility. The company's management shared these highlights during its Q4 FY26 Earnings Conference Call held on May 11, 2026, attended by Chairman and Managing Director Mr. Niral Krupeshbhai Patel, CEO Mr. Akshaykumar Mathur, COO Mr. Anand Sharma, and CFO Mr. Mehul Mehta.

Strong Q4 and Full Year FY26 Financial Performance

The company delivered exceptional growth across all key financial metrics for both the quarter and the full year. The following table summarises the consolidated financial performance:

Revenue for Q4 FY26 was also sequentially higher by 58.5% over Q3 FY26. CFO Mehul Mehta noted that the margin expansion is structural in nature, driven by operating leverage from higher volumes, a richer product mix tilting towards the 220KV class — which now constitutes nearly 52% of revenue — and improved procurement efficiency on key input materials. Full year revenue of INR1,851.5 crores comfortably surpassed the 40% growth trajectory the company had targeted for the year.

Complete Repayment of All Term Debt

A significant milestone for FY26 was the full repayment of all long-term debt. The company had availed INR130 crores of term debt for its Vadod plant and INR210 crores towards the BTW acquisition, representing a combined term loan liability of INR340 crores. As of March 31, 2026, the closing balance on all term loans is nil, achieved through a combination of IPO proceeds, internal accruals, and general corporate purpose funds, ahead of the original repayment schedule.

Regarding IPO fund utilisation, out of the INR400 crores fresh issue, approximately INR395.46 crores had been deployed as of March 31, 2026, as detailed below:

The company's operating cash flow for FY26 stood at INR184 crores. CRISIL reaffirmed the company's long-term rating at A stable and short-term rating at A1. Overall bank facilities were enhanced from INR910 crores to INR1,320 crores during the year, predominantly covering non-fund-based requirements.

Operational Highlights: Capacity Ramp-Up and PGCIL Approval

Across all five manufacturing units, Atlanta Electricals produced a total of 22,943 MVAs in FY26. The new Vadod facility (Unit 4) contributed 6,960 MVAs of production in approximately seven months of operation since commencing production in July 2025, while the Atlanta Trafo facility (Unit 5) at Ankhi contributed 580 MVA in approximately three months of production during Q3 FY26. Unit 4 operated at approximately 39% of its nameplate capacity of 30,000 MVA for its seven months of operation.

The single biggest operational milestone of FY26 was the receipt of PGCIL approval on April 2, 2026, for the manufacturing of transformers up to 400KV at the Vadod facility. This was achieved within two years of groundbreaking at Vadod. The approval is subject to completion of a short circuit test and final qualifying requirements. The company also secured its first 400KV order during FY26.

New orders booked during FY26 stood at INR2,507 crores, elevating the unexecuted order book as of March 31, 2026 to INR2,493 crores. Approximately 75% of the order book is backed by a price variation clause, with 70% to 80% of orders historically sourced from state utility boards.

Strategic Priorities for FY27

Management outlined several key priorities for FY27:

• 400KV and 765KV Prototyping: Prototyping the 400KV class transformer at Vadod and the 765KV class transformer at the Ankhi facility are the top priorities, with a technology tie-up for 765KV expected to be finalised within the next couple of months.
• Export Market Expansion: The company targets exports reaching 15% of total revenue over the next three years, with the first sizeable export order received in FY26 serving as a foundation.
• Unit 6 — Inverter Duty Transformer (IDT) Facility: Operations at Unit 6, a dedicated IDT facility adjacent to Vadod, are targeted to commence before the end of the current calendar year, adding approximately 5,000 MVA of capacity at a capex of approximately INR65 crores.
• Tank and Radiator Backward Integration: A robotic tank and radiator manufacturing facility, to be set up in close proximity to the Vadod facility, is planned for FY27 at a capex of INR170 crores to INR180 crores, aimed at supply chain control and quality improvement for export markets.
• Emerging Domestic Verticals: The company sees growing transformer requirements from battery energy storage systems (BESS), data centers, and renewable power generation projects.
• Atlanta Trafo Merger: The company intends to commence the procedure of merging Atlanta Trafo Limited with Atlanta Electricals Limited in the near term.

Management also indicated that Vadod facility utilisation is expected to reach approximately 65% in FY27 and 100% in the following financial year, with the mainstream production of 400KV class transformers expected to contribute from the next financial year. Net working capital days, maintained at approximately 64 days in FY26, are expected to increase to the range of 80 to 90 days in FY27 and FY28 as the company scales up higher KV class execution.

Atlanta Electricals Limited disclosed on 14th May 2026 that it has received a debarment order from South Bihar Power Distribution Company Limited (SBPDCL), barring the company from participating in SBPDCL-related tenders for a period of two years. The communication was received by the company on 13th May 2026 and pertains to a purchase order executed during FY2023-24. The company has stated that it respectfully disagrees with the characterisation of the matter and has already submitted detailed representations before the concerned authorities requesting reconsideration.

Key Details of the Debarment Order

The debarment order relates to the supply of power transformers under a purchase order whose value was less than ₹3 Crores. The following table summarises the key parameters of the matter:

Background and Technical Context

The matter originated from post-delivery short-circuit testing conducted at CPRI, Bhopal, on one randomly selected transformer from the supplied lot in May 2024. According to the company, the transformer successfully withstood all short-circuit shots and met all major electrical, dielectric, thermal, and post-test performance parameters. However, during internal inspection after the completion of testing, the testing agency recorded certain observations relating to the displacement of insulating components.

Based on these observations, SBPDCL issued a Show Cause Notice dated 22nd August 2024. The company submitted detailed technical replies and representations on multiple occasions, as outlined below:

• 27th August 2024: Initial detailed technical reply submitted
• 30th October 2024: Further representation submitted
• 8th January 2025: Additional technical submission made

Following the submission on 8th January 2025, the company had not received any further communication for a considerable period and was engaged in discussions with the customer for technical resolution and reconsideration, before receiving the debarment order dated 24th April 2026.

Company's Position and Clarifications

Atlanta Electricals Limited has provided the following clarifications regarding the matter:

• The transformer had successfully cleared all critical test parameters during short-circuit testing.
• No operational abnormality or unsafe condition had been observed.
• The matter did not involve any established design failure or systemic quality issue.
• Transformers of the same design supplied earlier are operating satisfactorily in the field.
• The company has historically supplied 218 transformers of the same rating to Bihar utilities, all of which are working satisfactorily.
• The company has successfully short-circuit tested transformers of the same rating 13 times at CPRI in the past ten years for Bihar State Utilities.
• The order under reference was fully executed in FY2023-24 and its value was not material in relation to the scale of operations of the company.
• The matter pertains to a single isolated technical observation during post-test inspection.

The company also noted that industry practice in similar situations generally provides an opportunity for re-testing and/or independent technical evaluation before resorting to debarment. Accordingly, the company has requested the concerned authorities to permit re-testing and independent technical review of the transformer in question.

Scope and Next Steps

The company has clarified that the debarment order is limited to the tenders of Bihar State Power Holding Company Limited and does not constitute a material event. Atlanta Electricals Limited has stated that it does not affect its present or future business. The company has indicated that it will exercise legal options if necessary and will continue to update the stock exchanges regarding any material developments in the matter. The disclosure was made in the interest of transparency, good corporate governance, and adherence to compliance requirements under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.