Atlanta Electricals to add 5,000 MVA IDT capacity in Q3

Atlanta Electricals Limited expects to commission a dedicated 5,000 megavolt-amperes (MVA) inverter-duty transformer (IDT) facility before the end of Q3 FY27, with planned capital expenditure of Rs 65 crore. The plant is intended to move 33 kilovolt (kV) IDT work from Unit 2, allowing that unit to make 66 kV and 132 kV transformers.

When will Atlanta Electricals commission the IDT plant?

Atlanta Electricals expects to commission the dedicated IDT facility before the end of Q3 FY27. Civil construction is complete and machinery installation is under way, according to management’s Q2 and H1 FY27 call. The facility will add about 5,000 MVA of capacity, and the company has planned Rs 65 crore of capital expenditure for the project.

The commissioning schedule sits alongside a wider execution push after heavy rainfall in Gujarat disrupted operations and transport during Q2 FY27. Atlanta Electricals reported that roughly Rs 180 crore of completed transformer orders could not be delivered in the quarter because customer sites could not accept them, although about 70% of the deferred orders had already been dispatched by October.

The capacity addition comes as the company’s outstanding order book reached Rs 3,196.97 crore on September 30, 2026. That was up from Rs 2,069 crore about a year earlier, a 54.5% year-on-year increase, while Q2 FY27 order intake was about Rs 421 crore. Management said commodity-price volatility had delayed finalisation of some orders, including tenders where it was the lowest bidder.

How will the 5,000 MVA IDT plant change capacity allocation?

The new IDT plant is designed to transfer 33 kV inverter-duty transformer production out of Unit 2 and release Unit 2 for 66 kV and 132 kV products. That is the specific operational mechanism Atlanta Electricals identified for the 5,000 MVA addition: dedicated IDT lines would separate lower-voltage renewable-linked work from capacity required for higher-kV transformer classes.

This reallocation is relevant to Atlanta Electricals’ stated move toward higher-voltage products. Its Vadodara facility had received approvals from customers including NTPC Solar, NTPC Renewables, Tata Power, KPTCL and Punjab Transmission Company, and production of its first 315 MVA, 400 kV-class transformer began on October 26 after delays in receiving critical components.

Management is targeting manufacturing completion and short-circuit testing of the 315 MVA, 400 kV transformer in Q3 FY27. Subject to successful testing and required approvals, it expects commercial contribution in Q4 FY27. To reduce further component-related delays, Atlanta Electricals said it has placed advance orders for long-lead items and developed alternate supplier arrangements.

The company also reported uneven utilisation across its existing plants during the call. Unit 1 was operating at 60% utilisation, Unit 2 at 40%, Bengaluru at around 90%, Vadodara at around 30%, and the Jambusar facility at 7% to 8%. Management linked the lower reported utilisation at some locations partly to the Q2 FY27 dispatch disruption, when finished goods remained pending customer acceptance rather than reflecting a lack of production.

What is Atlanta Electricals spending on tank and radiator production?

Atlanta Electricals plans to spend about Rs 193 crore on a tank-and-radiator backward-integration project through AE Components, with commissioning targeted by October 2027. The plant layout and machinery requirements have been finalised, and the ground-breaking ceremony has been completed, placing the project at an earlier stage than the IDT facility scheduled for Q3 FY27.

Management said the proposed in-house tank-and-radiator operation is expected to strengthen supply-chain reliability and support manufacturing efficiency. The project therefore differs from the Rs 65 crore IDT investment: the IDT plant adds a dedicated 5,000 MVA production stream, while the Rs 193 crore project seeks to integrate the supply of major transformer components.

The two projects total planned expenditure of about Rs 258 crore, based on the Rs 65 crore IDT facility and Rs 193 crore tank-and-radiator plant. Atlanta Electricals did not provide a capacity figure for the components project, production volumes, or a quantified saving target, so the disclosed case for the investment remains improved component availability and manufacturing efficiency rather than a specified margin outcome.

The expansion programme is occurring while depreciation and amortisation rose to Rs 20.1 crore in H1 FY27 from Rs 7.9 crore in H1 FY26. Management attributed the increase to new manufacturing capacities being commissioned and said it expects greater absorption of the operating cost base as utilisation improves, without providing a utilisation target for the planned IDT or AE Components facilities.

What execution and market factors affect the expansion plan?

Atlanta Electricals’ near-term expansion execution depends on completing deferred deliveries, commissioning the IDT plant and progressing its higher-voltage programme during H2 FY27. The company recorded revenue from operations of Rs 856.4 crore in H1 FY27, up 35.5% from Rs 632.1 crore in H1 FY26, despite Q2 disruption from rainfall and customer-site delays.

In Q2 FY27, revenue rose 23.1% year on year to Rs 390.1 crore, but gross margin fell to 26.6% from 30.9%. Management attributed the decline to higher transformer-oil, copper and steel costs and to firm-price contracts, which accounted for about 15% of quarterly revenue. It expects the remaining firm-price orders to be substantially completed during Q3 FY27, while noting commodity-price volatility remains a factor.

Atlanta Electricals is also developing higher-voltage products in parallel with the IDT and component projects. Its engineering team has started in-house design of a 765 kV reactor after a proposed international technology partnership could not progress because of sanctions-related constraints. Management is targeting production commencement in Q4 FY27, with completion and testing between Q4 FY27 and Q1 of the following year.

For demand visibility, the company cited an inquiry pipeline of about Rs 19,464 crore as of the Q2 FY27 call and a battery energy storage systems inquiry pipeline of about 3,400 MVA worth Rs 184 crore. It also secured its first US order in Q2 FY27, for a special-duty transformer supporting a new transformer manufacturing facility in the United States, and identified active US inquiries for about 120 transformers aggregating to 9,300 MVA.

Conclusion

Atlanta Electricals is pairing a dedicated lower-voltage IDT line with component backward integration while advancing its move into 400 kV and 765 kV equipment. The plan addresses two operational needs disclosed on the call: releasing Unit 2 for 66 kV and 132 kV work and seeking greater component supply reliability. Its Rs 3,196.97 crore order book as of September 30, 2026 provides the execution backdrop for these projects.

The next disclosed milestones are completion and short-circuit testing of the first 315 MVA, 400 kV transformer in Q3 FY27, potential commercial contribution in Q4 FY27 subject to approvals, and commissioning of the AE Components plant by October 2027. Management is also targeting 765 kV reactor production to start in Q4 FY27, with completion and testing envisaged from Q4 FY27 to Q1 of the following year.