SPEL Powers Up: Q3 FY26 Performance and Ambitious Expansion

Supreme Power Equipment Limited (SPEL), a prominent manufacturer of power and distribution transformers, has unveiled its consolidated financial results for the third quarter and nine months ended December 31, 2025 (Q3 FY26). The company reported a steady performance, marked by significant growth in total income and profitability, alongside strategic operational advancements aimed at bolstering its market position in India's burgeoning power sector.

For Q3 FY26, SPEL's total income stood at INR36.03 crores, representing a robust 14.83% year-on-year growth. The EBITDA for the quarter was INR5.28 crores, while the net profit reached INR3.38 crores, reflecting a 6.34% increase compared to the previous year. The earnings per share (EPS) for the quarter was INR1.35, up by 6.3% from Q3 FY25. For the nine-month period, the total income aggregated to INR111.38 crores, a substantial 23.7% year-on-year growth. EBITDA for the period was INR19.56 crores, up by 12.68%, and net profit increased to INR12.78 crores, a 23.66% rise year-on-year, with EPS at INR5.12 crores, up by 23.67%. These figures underscore the company's consistent execution and improving operating performance in an evolving market.

Operational Milestones and Strategic Initiatives

SPEL's Q3 FY26 was characterized by several key operational achievements. The company successfully strengthened its EPC (Engineering, Procurement, and Construction) order pipeline in Karnataka, securing orders worth approximately INR24.63 crores for the supply of 20 MVA Power Transformers. This move enhances its presence in transmission and substation EPC projects and boosts order book visibility in the high-capacity transformer segment. In Tamil Nadu, SPEL scaled its utility distribution business with orders totaling INR4.19 crores for the manufacturing and supply of 75 units of 100 KVA Distribution Transformers for TNPDCL, along with additional orders through Danya Electric Company. This initiative expands its distribution transformer portfolio and reinforces its participation in state utility infrastructure projects.

A significant highlight for the quarter was the national recognition received by SPEL. The company was honored with the MSME Ratna Award 2025 for electronics innovation and engineering excellence, acknowledging its commitment to quality and innovation in the engineering product space. This award strengthens brand credibility and reinforces SPEL's positioning in the transformer manufacturing ecosystem.

Consolidated Financial Summary (INR Crore)

Transformative Expansion and Market Outlook

SPEL is currently undergoing a transformative expansion project, developing a state-of-the-art facility across 6 acres. This new facility, approximately 95% complete as of January 2026 and expected to be operational by Q4 FY26, will significantly enhance the company's manufacturing capacity from 2,500 MVA/year to 9,000 MVA/year. This expansion, backed by an investment of ₹95-100 crores, is projected to unlock a revenue potential of ₹500-550 crores at full capacity and drive a 10-30% year-on-year revenue growth, alongside improved profit margins.

The company is strategically positioned to capitalize on the rapidly growing solar and wind energy sectors by manufacturing and supplying specialized transformers. The new facility will broaden SPEL's product range to include transformers from 25 KV to 160 KV, catering to a wider market. Furthermore, SPEL's venture into the design, construction, and commissioning of switchyards opens new business opportunities and strengthens its market reach. In FY25, SPEL surpassed the ₹140 crore revenue mark, demonstrating consistent and stable growth.

Product Wise Revenue Bifurcation (FY25)

Management Commentary and Future Outlook

Mr. Vee Rajmohan, Chairman & Managing Director, expressed satisfaction with the steady financial performance, attributing it to continued operational discipline and execution strength. He highlighted the sustained demand across transmission and distribution infrastructure and the company's focus on engineering excellence. The Indian power infrastructure sector continues to witness steady growth, driven by rising electricity demand, renewable energy integration, and ongoing investments. The Union Budget 2025-26's proposed public capital expenditure of INR12.2 lakh crores for FY27 further underlines the government's emphasis on infrastructure-led growth, creating positive downstream implications for SPEL.

Management has provided guidance for FY26, expecting total income to be between INR180-200 crores, and for FY27, targeting a turnover of more than INR300 crores. The PAT margin is anticipated to sustain between 10-12%. To mitigate the risk of delayed payments from government clients, SPEL has strategically diversified its customer base, with 74% of FY25 revenue generated from private tenders, enhancing cash flow stability. The company has also significantly improved its receivable cycle, reducing it from 210 days to 80-90 days.

SPEL's recent approval as a vendor by the Kerala State Electricity Board further expands its market opportunities, aligning with Kerala's focus on upgrading its power infrastructure. The company remains focused on strengthening execution capabilities, expanding its product portfolio, and building long-term partnerships across utilities and EPC segments, positioning itself for sustained growth in the dynamic Indian power sector.