Raksan Transformers plans 3,250 MVA power capacity at Sonipat

Raksan Transformers Limited plans to raise power-transformer capacity to 3,250 megavolt-amperes (MVA) from 1,350 MVA at a proposed Liwaspur, Sonipat facility, an increase of 1,900 MVA. The Rs 62.1366 crore capital-expenditure allocation would also add 704 MVA of inverter-duty transformer capacity, subject to funding, procurement and operating approvals.

How much will Raksan Transformers expand power-transformer capacity?

Raksan Transformers plans to increase power-transformer capacity by 1,900 MVA, or 140.74%, from 1,350 MVA to 3,250 MVA. The resulting capacity would be 2.41 times the existing level, according to an August 3, 2026 certificate issued by independent chartered engineer Ratan Dev Garg. The proposed expansion is at Liwaspur in Sub-Tehsil Rai, Sonipat, Haryana.

Raksan Transformers also plans to establish 704 MVA of inverter-duty transformer capacity, against no existing installed capacity disclosed for that category. Distribution-transformer capacity is projected to remain unchanged at 1,500 MVA, converted from the disclosed 15,00,000 kilovolt-amperes (KVA). The company manufactures distribution transformers, power transformers, transformers for solar applications and special-purpose transformers.

The Liwaspur unit would supplement Raksan Transformers' two existing Rai facilities at Plot Nos. 1676-1677, Sector 38, Phase 1, HSIIDC Industrial Estate, and Plot No. 1413, HSIIDC Industrial Estate. The company bought the Liwaspur land through a July 29, 2024 sale deed for Rs 9 crore from internal accruals; that land cost is separate from the disclosed Rs 72.5843 crore project cost.

What will Raksan Transformers spend on the Sonipat power capacity plan?

Raksan Transformers estimates the factory shed and plant-and-machinery project at Rs 72.5843 crore, with Rs 62.1366 crore proposed from net proceeds and Rs 10.4477 crore already paid. The proposed capital-expenditure object was placed before the board on August 3, 2026. The fresh-issue proceeds are also earmarked for working capital and repayment of certain borrowings, so the final funding available depends on the offer's net proceeds.

Factory-shed construction accounts for Rs 60.4761 crore, or 83.32% of the total estimated project cost, while plant and machinery account for Rs 12.1082 crore. Raksan Transformers has already paid Rs 10.0709 crore for construction and Rs 0.3768 crore for machinery. The company proposes to deploy Rs 50.4052 crore of net proceeds on the shed and Rs 11.7314 crore on machinery.

Raksan Transformers says the requirements are internal management estimates that have not been appraised by a bank or financial institution. If spending exceeds the amount earmarked for an object, the company says it may use internal accruals. If the offer is delayed, it may initially use internal accruals or unsecured loans as bridge financing, although it disclosed no bridge financing as of the red herring prospectus date.

How much of the Sonipat project is covered by orders?

Raksan Transformers has placed orders for parts of civil construction and lifting equipment, while several construction and machinery requirements remain supported only by quotations. Civil purchase orders dated February 16, 2026 total Rs 44.6243 crore before applicable taxes. They cover construction of the civil structure, road and related work by Radhika Builders and a pre-engineered building, crane system, partition walls and accessories from Wintra PEB & Roofing Systems.

Construction requirements not yet ordered were supported by quotations totalling Rs 7.8194 crore including applicable taxes. The July 7 and July 10, 2026 quotations cover elevation work, a boundary wall, underground tank, lift, guard room, firefighting systems and electrical work, and each was stated to be valid for 120 days. The defined validity periods leave the eventual supplier and cost subject to contract placement.

Machinery orders dated April 4, 2026 include 50-tonne and 25-tonne double-girder electric overhead travelling cranes from Unicorn Technology International, alongside rails and electrical systems. The ordered machinery totals Rs 2.0312 crore including applicable taxes, with Rs 0.3768 crore deployed. Equipment still based on quotations totals Rs 9.7002 crore including applicable taxes and includes an impulse-voltage test system, vacuum drying plant, testing equipment, copper-strip extrusion machinery and diesel-generator sets.

Raksan Transformers states that it has no definite agreements with vendors for the quoted machinery and equipment. The company may revise models, quantities, vendors or equipment at order placement, while any cost escalation from freight, installation, packaging, customs duty or taxes would be met from surplus net proceeds, if available, or internal accruals. It also states that it is not acquiring second-hand machinery.

Which approvals and deadlines must Raksan Transformers meet?

Raksan Transformers has received conversion-of-land-use permission and consent to establish, but its disclosed schedule still includes factory-licence and consent-to-operate applications in December 2026. The Municipal Corporation Sonipat granted land-use conversion on January 5, 2026. The Haryana State Pollution Control Board granted consent to establish on January 29, 2026 under the Water (Prevention and Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act, 1981.

The implementation schedule targets completion of building construction and civil works in November 2026, electrical installation in November 2026 and commencement of production in December 2026. Machinery orders are scheduled from April to September 2026, while installation is scheduled to finish in December 2026. The same schedule lists the commencement of machinery installation as October 2022, an unexplained date that differs from the April 2026 to September 2026 machinery-order timetable.

The December 2026 production target depends on construction, electrical installation, machinery installation, factory licensing and pollution-control operating consent being completed within the disclosed timeframe. Raksan Transformers says any escalation in building, civil-work or machinery costs would be met through internal accruals or borrowings. The company also discloses that its promoters, directors and key managerial personnel have no interest in the quoted civil-work or equipment vendors.

Why is Raksan Transformers allocating Rs 35 crore to working capital?

Raksan Transformers plans to use Rs 35 crore of net proceeds for working capital as the expansion is expected to increase inventories, trade receivables and day-to-day operating requirements. Its projected working-capital gap rises from Rs 44.8348 crore at March 31, 2026 to Rs 83.08 crore at March 31, 2027 and Rs 120.02 crore at March 31, 2028. The company expects the balance requirement to be financed through borrowings when needed.

Trade receivables are projected to rise from Rs 73.2119 crore at March 31, 2026 to Rs 98.97 crore at March 31, 2027 and Rs 131.78 crore at March 31, 2028. Raksan Transformers reported revenue from operations of Rs 363.1082 crore in financial year 2025-26, with more than 50% generated from government customers. The company projects debtor days of 80 for each of financial years 2026-27 and 2027-28, compared with 74 days in financial year 2025-26.

Inventory is projected to grow from Rs 25.9117 crore at March 31, 2026 to Rs 36.11 crore and Rs 51.91 crore in the next two financial years. Raksan Transformers expects creditor days to decline from 55 in financial year 2025-26 to 50 and then 46 days, citing faster supplier payment, potential cash discounts and timely payment to micro, small and medium enterprise vendors. It identifies cold-rolled grain-oriented steel, copper, aluminium, transformer oil and core components as materials exposed to price volatility and supply constraints.

Conclusion

Raksan Transformers' proposed Sonipat power capacity plan would lift power-transformer capacity by 1,900 MVA to 3,250 MVA and create a 704-MVA inverter-duty category, while retaining 1,500 MVA of distribution-transformer capacity. The Rs 72.5843 crore construction and equipment project, combined with Rs 35 crore for working capital, shows that the planned manufacturing increase is tied to a larger operating-funding requirement.

The disclosed milestones to watch are the November and December 2026 construction, electrical, installation, licensing and production targets. Raksan Transformers has stated that several vendor quotations have no definitive agreements and may change in cost or supplier, while cost escalation may require internal accruals or borrowings; those factors remain material to implementation of the stated capacity plan.