Raksan Transformers' SHR Power purchases reached Rs 44.70 crore

Raksan Transformers Limited reported purchases of Rs 44.70 crore from SHR Power Private Limited in FY26, compared with Rs 36.28 crore in FY25 and Rs 20.20 crore in FY24. The company identifies SHR Power as an enterprise in which key managerial persons have significant interest, making the three-year increase a related-party disclosure.

Why did Raksan Transformers' SHR Power purchases reach Rs 44.70 crore?

Raksan Transformers recorded Rs 44.70 crore of FY26 purchases from SHR Power, an increase of Rs 8.42 crore from Rs 36.28 crore in FY25 and Rs 24.50 crore from Rs 20.20 crore in FY24. The disclosure provides transaction values for the years ended 31 March 2026, 31 March 2025 and 31 March 2024, but it does not identify the goods purchased or state total company purchases. Therefore, the data establishes the scale and growth of transactions with the related party, but does not allow SHR Power's share of Raksan Transformers' total procurement to be calculated.

The related-party roster classifies SHR Power among “enterprises over which key managerial persons have significant interest.” Raksan Transformers separately lists Sanjeev Kanda, Renu Kanda and Diveam Singh Kanda as directors, Mukesh Sharma as company secretary, and Arvind as chief financial officer. That classification, rather than the purchase amount alone, is the mechanism that makes the supplier transactions related-party transactions in the restated financial statements.

The FY26 purchase figure was about 121% above the FY24 figure, based on the disclosed Rs 24.50 crore increase over two years. For that growth pattern to persist, Raksan Transformers would need to continue buying goods from SHR Power at similar or higher values; the supplied disclosure contains no procurement commitment, volume plan or pricing terms that would confirm this.

What other transactions did Raksan Transformers have with SHR Power?

Raksan Transformers also reported sales to SHR Power of Rs 2.27 crore in FY26, versus Rs 2.39 crore in FY25 and Rs 1.53 crore in FY24. Purchases were therefore much larger than sales in every reported year: FY26 purchases of Rs 44.70 crore exceeded FY26 sales of Rs 2.27 crore by Rs 42.43 crore. The direction of trade was consequently predominantly purchases by Raksan Transformers from SHR Power over the three financial years.

Job-work expenses paid by Raksan Transformers to SHR Power were Rs 19.35 lakh in FY26, up from Rs 9.13 lakh in FY25 and Rs 3.96 lakh in FY24. Job work means work performed by another entity on materials or components rather than an outright purchase of finished goods. Job-work income recorded from SHR Power was Rs 5,000 in FY26, compared with Rs 13,000 in FY25 and no amount in FY24, so the disclosed job-work relationship was also mainly an expense for Raksan Transformers.

Payments made by Raksan Transformers to SHR Power were Rs 48.43 crore in FY26, Rs 32.64 crore in FY25 and Rs 18.35 crore in FY24. Payments received were Rs 7.86 lakh, Rs 12.92 lakh and Rs 1.42 crore, respectively. Payment totals need not equal purchases in the same financial year because payments can settle earlier balances, include job-work charges, or relate to advances; the restated disclosure does not provide invoice-level settlement details.

How did balances with SHR Power change by FY26?

Raksan Transformers disclosed Rs 1.42 crore of advances given to SHR Power as at 31 March 2026. The corresponding disclosure showed advances receivable of Rs 4.35 crore at 31 March 2025 and Rs 2.94 crore at 31 March 2024. The FY26 label changed from “advances receivable” to “advances given,” so the presentation indicates an advance asset in all three periods but does not explain why the terminology changed.

The balance movement is relevant because the FY26 advance of Rs 1.42 crore existed alongside Rs 44.70 crore of purchases and Rs 48.43 crore of payments made during that year. The supplied statements do not state whether the advance was for future supply, when it was due for adjustment, or whether it carried interest. Its continuation or settlement can therefore only be assessed through later related-party balance disclosures.

SHR Power also had Rs 19,000 of share capital recorded as an outstanding balance at 31 March 2026, compared with Rs 1,000 at 31 March 2025 and no balance at 31 March 2024. Raksan Transformers reported Rs 18,000 of bonus share capital involving SHR Power in FY26 and a dividend paid of Rs 10. These small equity-related entries are distinct from supplier purchases and should not be combined with operating procurement when assessing the Rs 44.70 crore purchase figure.

What does the source disclose about the SHR Power name?

Raksan Transformers' related-party list names the entity as “SHR Power Private Limited,” while the transaction table on the following page labels the same set of transaction rows “SHAR Power Private Limited.” The transaction rows include the Rs 44.70 crore purchases, Rs 2.27 crore sales, job-work entries, payments and the FY24 unsecured loan entries. This article uses SHR Power because that is the name used in the company’s list of enterprises in which key managerial persons have significant interest.

The inconsistency is an unresolved disclosure detail rather than evidence that two separate counterparties existed. The supplied material does not provide a corporate identification number, address, ownership percentage or explanatory note that could independently establish whether “SHR” and “SHAR” refer to one entity. Readers assessing related-party exposure should therefore recognise that the stated transaction values sit under a differently spelled name in the transaction table.

Raksan Transformers also disclosed an unsecured loan of Rs 58 lakh given to the transaction-table entity in FY24 and an equal Rs 58 lakh received back in FY24. No unsecured loan given or repaid was reported for FY25 or FY26. The absence of a new loan entry in the later two years distinguishes the FY26 relationship, which was reported through purchases, sales, job work, payments and advances rather than a disclosed unsecured lending transaction.

Conclusion

Raksan Transformers reported a clear rise in purchases from the related-party supplier identified as SHR Power, from Rs 20.20 crore in FY24 to Rs 44.70 crore in FY26. Sales and job-work income from the same counterparty were substantially smaller than purchases and job-work expenses, while payments made reached Rs 48.43 crore in FY26. The disclosures show the scale of the relationship, but not the goods involved, the supplier’s share of total procurement, prices, or the terms of the advance.

The next point to watch is the treatment of the Rs 1.42 crore FY26 advance and whether future disclosures continue to show purchases at comparable levels. A later disclosure could also resolve whether the transaction-table name “SHAR Power Private Limited” is the same entity listed as “SHR Power Private Limited.” No procurement plan, contract duration or explanation of the naming difference is provided in the supplied financial information.