Raksan Transformers H1 profit declines 56% as revenue falls

Raksan Transformers Limited reported unaudited standalone profit of Rs 4.9292 crore for H1 2026-27, down 56% from Rs 11.0977 crore a year earlier, after revenue from operations fell 16% to Rs 121.1284 crore in the six months ended September 30, 2026. Profit before tax also declined 51% to Rs 7.4403 crore.

Why did Raksan Transformers’ H1 profit decline?

Raksan Transformers’ profit for the period fell to Rs 4.9292 crore in H1 2026-27 from Rs 11.0977 crore in H1 2025-26, while revenue from operations declined by Rs 22.9221 crore. Total income, which includes other income, decreased to Rs 121.4196 crore from Rs 144.3082 crore. The company reported no exceptional or extraordinary items in either half-year.

Profit before tax decreased to Rs 7.4403 crore from Rs 15.2236 crore, a larger percentage decline than revenue. Total expenses fell to Rs 113.9793 crore from Rs 129.0846 crore, or 12%, compared with the 16% decline in total income. This meant the reduction in expenses did not match the fall in income during the September 2026 half-year.

Raksan Transformers’ profit for the period represented about 4.1% of revenue from operations in H1 2026-27, compared with about 7.7% in H1 2025-26. Basic and diluted earnings per share, which the company said were not annualised for the half-year, declined to Rs 2.94 from Rs 6.73. The board approved the results on November 13, 2026.

How did Raksan Transformers’ costs change in H1 2026-27?

Raksan Transformers’ material-consumption cost declined 23% year on year to Rs 89.647 crore in H1 2026-27 from Rs 115.9791 crore. However, the company recorded purchases of stock in trade of Rs 14.9995 crore, compared with no such expense in H1 2025-26. Changes in inventories were negative Rs 4.9944 crore, against a positive Rs 1.542 crore a year earlier.

Employee-benefit expense increased to Rs 4.9803 crore from Rs 4.1637 crore, despite the lower revenue base. Other expenses rose to Rs 8.3156 crore from Rs 6.4961 crore, while depreciation and amortisation increased to Rs 70.04 lakh from Rs 47.45 lakh. Finance costs moved in the opposite direction, declining to Rs 33.10 lakh from Rs 42.93 lakh.

Raksan Transformers reported a total tax expense of Rs 2.5111 crore in H1 2026-27, compared with Rs 4.1259 crore in the corresponding prior-year half. The latest tax charge comprised current tax of Rs 2.1602 crore, prior-year tax of Rs 40.16 lakh and deferred-tax income of Rs 5.08 lakh. There were no discontinued operations in either reported half-year.

How does Raksan Transformers’ H1 compare with the preceding half-year?

Raksan Transformers’ H1 2026-27 revenue from operations was 45% below the Rs 219.0577 crore reported in H2 2025-26, the six months ended March 31, 2026. Profit for the period fell 78% from Rs 22.2554 crore, while profit before tax declined 75% from Rs 29.8093 crore over the same comparison.

Material consumption declined to Rs 89.647 crore from Rs 151.7907 crore in H2 2025-26, and purchases of stock in trade fell to Rs 14.9995 crore from Rs 25.2732 crore. Employee-benefit expense nevertheless increased to Rs 4.9803 crore from Rs 4.0155 crore. Other expenses declined to Rs 8.3156 crore from Rs 10.3368 crore.

The company said the March 2026 half-year amounts are balancing figures between the audited full-year figures and management-certified results for the half-year ended September 30, 2025. For the full year ended March 31, 2026, Raksan Transformers reported revenue from operations of Rs 363.1082 crore and profit for the period of Rs 33.3531 crore.

What changed in Raksan Transformers’ balance sheet and cash flow?

Raksan Transformers’ total assets and liabilities rose to Rs 273.2232 crore at September 30, 2026 from Rs 155.4702 crore at March 31, 2026. Cash and cash equivalents increased to Rs 94.8711 crore from Rs 10.50 lakh, comprising Rs 44.8285 crore in current accounts, Rs 50 crore in short-term bank deposits and Rs 4.26 lakh in cash in hand.

Share capital increased to Rs 20.8934 crore from Rs 16.4806 crore, and reserves and surplus rose to Rs 174.372 crore from Rs 61.1135 crore. Trade receivables declined to Rs 52.0015 crore from Rs 73.2119 crore, while inventories increased to Rs 46.1288 crore from Rs 25.9117 crore during the same six-month period.

Operating activities used Rs 6.1541 crore of cash in H1 2026-27, compared with net operating cash generation of Rs 14.8611 crore in the full year ended March 2026. A Rs 21.2103 crore reduction in trade receivables was offset by a Rs 20.2171 crore increase in inventories and a Rs 13.178 crore reduction in trade payables.

Investing activities used Rs 19.0434 crore during H1 2026-27, including Rs 12.2471 crore for capital work in progress and Rs 4.4364 crore of movements in other non-current assets. Financing activities generated Rs 119.9637 crore, including Rs 116.0566 crore of securities premium received on share issues, less Rs 7.7274 crore of share-issue expenses.

What did Raksan Transformers disclose about operations and IPO proceeds?

Raksan Transformers said it operates only in electrical transformers, control panels and allied activities in India, which it treats as one reportable business and geographical segment. The H1 2026-27 standalone filing therefore provides no separate revenue, profit or asset figures for transformers, control panels or other product categories.

The company reported capital work in progress of Rs 15.9024 crore at September 30, 2026, up from Rs 3.6554 crore at March 31, 2026. It also said a deferred-tax asset of Rs 1.51008 crore on share-issue expenses had not been recognised because commercial production at a new unit had not started. Raksan Transformers said it would recognise that asset once commercial production begins.

Raksan Transformers completed an initial public offering of 44,12,800 equity shares at Rs 273 each, aggregating Rs 120.4694 crore, and listed on the BSE SME platform on September 18, 2026. The board said ACER Credit Rating Private Limited, the monitoring agency, reported no deviation or variation in use of IPO proceeds for the half-year ended September 30, 2026.

The company said unutilised IPO proceeds were held in the monitoring account or fixed deposits with scheduled commercial banks pending use for the objects stated in the prospectus. The statutory auditor, TU & Co., issued an unmodified limited-review conclusion on the standalone results for the period ended September 30, 2026, while noting that the September 2025 comparative financial information was management certified and had not been reviewed.

Conclusion

Raksan Transformers remained profitable in H1 2026-27, but its Rs 4.9292 crore profit was lower year on year and sequentially as revenue from operations declined to Rs 121.1284 crore. Lower material consumption reduced total expenses, but the 12% expense decline was smaller than the 16% fall in total income, while employee benefits and other expenses increased from the prior-year half.

The next disclosed operating milestone is the start of commercial production at the new unit, which Raksan Transformers said would permit recognition of the Rs 1.51008 crore deferred-tax asset. The company also disclosed that unused IPO funds remained in monitored bank accounts or fixed deposits at September 30, 2026, making their subsequent utilisation a stated matter to watch.