Raksan Transformers Limited

Raksan Transformers Limited, originally incorporated in 1995 as Raksan Transformers Private Limited and converted into a public entity in 2025, is an ISO 9001:2015 certified manufacturer of electrical transformers across a wide range of voltage ratings. Operating primarily from Sonipat, Haryana, the company has developed a robust industrial reputation for engineering single-phase and three-phase Cold Rolled Grain Oriented (CRGO) oil-filled transformers tailored to specific client variables such as voltage, climate, system landscape, and sound levels. The company’s core value proposition revolves around high-precision in-house operations and strict compliance with the Bureau of Indian Standards (BIS) and Bureau of Energy Efficiency (BEE) norms. By managing everything from core stacking to final assembly and testing in-house, the company maintains superior quality control over its finished packaging, serving as an integrated supply partner in India’s power distribution ecosystem.

The company utilizes a business model split between the Business-to-Government (B2G) and Business-to-Business (B2B) segments. It serves public utilities, state electricity boards, and government-backed engineering, procurement, and construction (EPC) companies on a tender-contract basis. The B2G segment has historically been the primary driver of revenue, accounting for 50.73% of total revenue from operations in FY26 (and as high as 72.99% in FY25). To mitigate the uneven payment cycles and administrative delays associated with public contracts, the company has successfully expanded its non-government corporate client base, scaling its B2B segment to represent 49.22% of FY26 sales. Geographically, the company operates across a national footprint, actively supplying equipment to power networks and corporate entities across 24 states and union territories from its offices in Delhi and Haryana.

The company's operational footprint is anchored by two established manufacturing units located in the HSIIDC Industrial Estate in Rai, Sonipat, Haryana. Collectively, these units house high-volume manufacturing lines equipped with specialized core-slitting machines, HT/LT winding machines, power presses, oil filtration equipment, and testing ovens, which facilitate complete end-to-end production. To support its rapid growth and meet strong market demand, the company has acquired land in Liwaspur, Sonepat, Haryana, where it is establishing an advanced, backward-integrated manufacturing plant funded primarily by the IPO's Fresh Issue proceeds.

As of the date of the RHP, the company’s manufacturing operations have achieved excellent capacity utilization. Its aggregate installed capacity stands at 1,500,000 KVA per annum for distribution transformers and 1,350 MVA per annum for power transformers. In line with rising dispatches and order book execution, the company has systematically improved its asset efficiency. The aggregate capacity utilization for distribution transformers stood at 82.22% in FY24, rising to 87.07% in FY25, and peaking at 91.68% in FY26. Similarly, aggregate capacity utilization for power transformers witnessed a dramatic scale-up, rising from 30.58% in FY24 to 85.68% in FY25, and reaching 95.18% in FY26.

A primary technological moat for the company is its dedicated in-house product designing and quality control division, which comprises 6 full-time design engineers as of June 30, 2026. This division utilizes advanced CAD and technical modeling software to optimize electromagnetic core designs and winding insulation, which are critical to minimizing transmission losses and maximizing energy efficiency. A major operational highlight is the company's backward integration via related-party SHR Powers Private Limited, from whom it procures customized transformer tank bodies, ensuring cost optimization and timely material supply. This high operational readiness has enabled the company to secure a strong order book, which stands at Rs 329.68 Crore (comprising 83 active orders in hand) as of June 30, 2026.

As per financial performance, Raksan Transformers Limited has posted total income / net profits of Rs 162.52 Cr / Rs 7.59 Cr (FY24), Rs 324.78 Cr / Rs 20.38 Cr (FY25) and Rs 363.63 Cr / Rs 33.60 Cr (FY26). So as per previous financials data, the company has shown exceptional financial scaling, with total income growing at a 49.57% CAGR and profit after tax (PAT) growing at an impressive 110.15% CAGR over the last three fiscal years, while successfully managing its debt profile as the total Debt-to-Equity ratio systematically reduced from 0.41x in FY24 to 0.27x in FY26. Company has an average EPS of Rs 15.08 and average RoNW of 42.45% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 5.81 as per NAV of Rs 46.97 as on 31.03.26. Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 2.88. If we attribute the latest earnings of FY24, FY25, and FY26 to the expanded equity base post-issue, then the asking price is at a Post-Issue P/E of around 75.14, 27.99, and 16.97 respectively. As per RHP, a comparison between listed peers shows that competitors like Marsons Limited (trading at a P/E of 49.63x) and Shilchar Technologies Limited (trading at a P/E of 29.47x) trade at significantly higher valuations, despite Raksan Transformers Limited’s superior return metrics, which are highlighted by its FY26 consolidated RoCE of 46.72% and RoNW of 43.41%.

On BRLM's front, Hem Securities Limited is associated with this IPO, and has handled 49 IPOs in the past. From last ten IPO, that opened above issue price or at par, on the day of listing. As of now, from the last 10 IPOs, one are trading below the issue price and the remaining nine are trading above the issue price or at par. (as on 07.09.26)

• 1 Sanjeev Kanda
• 2 Renu Kanda
• 3 Dievam Singh Kanda