Raksan’s transformer plants reached 92%-95% utilisation

Raksan Transformers Limited reported fiscal 2026 capacity utilisation of 91.68% for distribution transformers and 95.18% for power transformers. The high use of existing production capacity provides the stated operating basis for Raksan’s proposed new transformer factory at Liwaspur in Sonepat, Haryana, for which it proposes to spend Rs 72.5843 crore.

What does Raksan’s 92%-95% transformer utilisation show?

Raksan’s fiscal 2026 production used more than nine-tenths of its disclosed capacity in both principal transformer categories. Distribution-transformer production was 13,75,253 kilovolt-amperes (KVA) against installed capacity of 15,00,000 KVA, resulting in 91.68% utilisation as of March 31, 2026. Power-transformer production was 1,285 megavolt-amperes (MVA) against 1,350 MVA of installed capacity, resulting in 95.18% utilisation.

The reported capacity use increased in both categories over the preceding two years. Distribution-transformer utilisation moved from 82.22% in fiscal 2024 to 87.07% in fiscal 2025 and 91.68% in fiscal 2026. Power-transformer utilisation rose more sharply, from 30.58% in fiscal 2024 to 85.68% in fiscal 2025 and 95.18% in fiscal 2026, while disclosed installed capacity was 1,000 MVA in fiscal 2024 and 1,350 MVA in each of fiscal 2025 and 2026.

The figures are aggregate product-category measures rather than utilisation rates for each of Raksan’s two operating sites. Raksan operates factories at Plot No. 1676-1677 in Sector 38, Rai, and Plot No. 1413 in the HSIIDC Industrial Estate, Rai, both in Sonepat, Haryana. The company has in-house core cutting, winding and testing facilities, while transformer-tank fabrication may be outsourced to a group company or another vendor according to customer and business requirements.

How much does Raksan depend on distribution and power transformers?

Raksan’s revenue remains concentrated in distribution transformers, although the contribution from other items increased in fiscal 2026. Distribution transformers up to 3,150 KVA generated Rs 233.0351 crore, or 64.18% of revenue from operations of Rs 363.1082 crore in fiscal 2026. Power transformers supplied Rs 100.1422 crore, or 27.58%, while other revenue, including copper wire, protection-feature charges, scrap sales, freight and job work income, supplied Rs 29.9309 crore, or 8.24%.

The mix changed from fiscal 2024, when distribution transformers accounted for 85.17% of revenue from operations and power transformers accounted for 12.20%. In fiscal 2025, the respective shares were 69.09% and 29.43%, compared with 64.18% and 27.58% in fiscal 2026. This means the rise in utilisation occurred as Raksan continued to scale both transformer categories, while the share of non-transformer and ancillary income rose from 1.48% in fiscal 2025 to 8.24% in fiscal 2026.

Raksan reported fiscal 2026 revenue from operations of Rs 363.1082 crore, compared with Rs 324.2098 crore in fiscal 2025 and Rs 160.9461 crore in fiscal 2024. Earnings before interest, tax, depreciation and amortisation (EBITDA) were Rs 46.719 crore in fiscal 2026 and the EBITDA margin was 12.87%, compared with Rs 29.5101 crore and 9.10% in fiscal 2025. Profit after tax was Rs 33.6048 crore in fiscal 2026, with a 9.25% margin, compared with Rs 20.3767 crore and a 6.28% margin a year earlier.

Why is Raksan planning a Liwaspur factory?

Raksan is planning the Liwaspur factory to add manufacturing capacity after existing transformer capacity reached 91.68% to 95.18% utilisation in fiscal 2026. The company acquired land at Village Liwaspur, Sub-Tehsil Rai, Sonepat, through a July 29, 2024 sale deed. The property covers 9,965.38 square metres after a 354.10-square-metre land transfer to Nagar Nigam, Sonipat, in December 2025.

Raksan proposes to spend about Rs 72.5843 crore on the factory building, civil work and new machinery, with part of the amount to be funded from initial public offering (IPO) proceeds. The disclosed plan says the company will take requisite actions and implement necessary procedures at applicable stages, rather than stating that construction or machinery installation has already been completed. The business-strategy section refers to the proposed site as “Livapur,” while the property disclosure identifies the owned expansion land as Liwaspur.

Demand visibility is also represented by Raksan’s order book. As of June 30, 2026, the company had 83 orders in hand with an aggregate order book of Rs 329.6792 crore. Raksan stated that higher customer orders have increased the need for rapid equipment delivery, and it intends to continue investments in capacity expansion and equipment modernisation, as well as evaluate ventures, acquisitions and strategic alliances where it considers them additive.

What conditions will affect Raksan’s expansion plan?

Raksan’s ability to convert the proposed Liwaspur factory into additional output will depend on project execution, raw-material supply, tender wins and customer demand. Its transformer manufacturing process uses cold rolled grain oriented (CRGO) electrical steel for cores; copper or aluminium conductors for windings; transformer oil; insulating materials; and fabricated tanks. The company says it buys inputs against purchase orders and has no purchase agreements or firm commitments with suppliers.

Customer and geographic concentration also remain material to the capacity plan. Raksan had about 121 customers as of March 31, 2026, but its five largest customers generated Rs 168.3394 crore, or 46.36% of fiscal 2026 revenue. The corresponding top-five share was 75.08% in fiscal 2025 and 68.07% in fiscal 2024, showing a lower concentration percentage in fiscal 2026 but continuing reliance on a limited group of accounts.

Government and utility customers are another operating dependency. Business-to-government (B2G) sales were Rs 184.1915 crore, or 50.73% of fiscal 2026 revenue, while business-to-business (B2B) sales were Rs 178.7384 crore, or 49.22%. Raksan is an approved vendor for more than 20 entities, including power distribution corporations and public-sector undertakings, but public-sector orders are generally awarded through competitive tenders subject to technical experience, execution history and registration or enlistment requirements.

Raksan’s six principal states, Uttar Pradesh, Bihar, Madhya Pradesh, West Bengal, Haryana and Jammu and Kashmir, contributed Rs 352.7222 crore, or 97.13% of fiscal 2026 revenue. Uttar Pradesh alone supplied Rs 212.6522 crore, or 58.56%. Raksan’s stated response is to deepen engagement with utilities, government departments, engineering, procurement and construction (EPC) contractors and industrial clients in existing markets, while bidding for work in additional states.

Conclusion

Raksan’s disclosed utilisation data show that its two main transformer categories were operating near stated capacity in fiscal 2026, with power transformers at 95.18% and distribution transformers at 91.68%. That operating position, together with 83 orders worth Rs 329.6792 crore as of June 30, 2026, gives context to the proposed Rs 72.5843 crore Liwaspur factory rather than presenting the project solely as a future aspiration.

The next points to watch are the procedures and spending required to establish the Liwaspur facility, including the portion funded by IPO proceeds, and whether orders translate into sustained production demand. Raksan’s expansion plan will also depend on input availability without firm supplier commitments, tender qualification and awards, and its effort to reduce reliance on specific customers and states while maintaining product quality standards.