Supreme Power earnings for H1 FY27 showed total income rising 79.91% year over year to ₹135.57 crore. In an earnings update dated October 22, 2026, Chairman V. Rajamohan put the transformer manufacturer’s full-year revenue target at ₹300–350 crore, above the earlier ₹275 crore guidance, while lowering the bottom of its profit-margin range.
Key Takeaways
- First-half profit grew more slowly than income as higher raw-material costs pressured margins.
- The ₹565.80 crore order book supports future business, but customer schedules may delay execution.
- Management expects a 9%–12% FY27 net profit margin and positive operating cash flow in the second half.
Table of Contents
- Supreme Power earnings show growth outpacing profit
- Order book creates an execution test
- Capacity ramp-up supports the revenue target
- Working capital remains a second-half priority
- Conclusion
Supreme Power earnings show growth outpacing profit
First-half earnings before interest, taxes, depreciation and amortization rose 65.46% to ₹23.62 crore, while profit after tax increased 45.09% to ₹13.65 crore. Both grew more slowly than total income, showing that the expansion in business did not translate proportionately into profit.
Rajamohan cited higher prices for cold-rolled grain-oriented steel and transformer oil, alongside timing differences between cost increases and customer price adjustments. Management now expects a full-year profit-after-tax margin of 9%–12%, compared with its previous 10%–12% range.
The company’s H1 FY27 earnings-call recording listing appears on its investor-information page. That listing provides access to the company’s call materials rather than reproducing the financial figures or guidance.
| Item | Details |
|---|---|
| New orders secured in H1 FY27 | 11 orders worth ₹209.24 crore |
| Execution periods for new orders | 7–17 months |
| Government share of order book | Approximately 27%–28% |
| Inventory requirement at targeted scale | Management estimates ₹60–70 crore, equivalent to two to two-and-a-half months |
Order book creates an execution test
The order book stood at ₹565.80 crore, and Rajamohan expects it to reach ₹600–800 crore by the end of FY27. Power transformers account for roughly 75%–78% of outstanding orders, making them the largest product category.
Customer requirements call for about ₹353 crore of orders to be executed before the end of March 2027. Management’s more conservative second-half execution estimate is ₹200–250 crore because customer project timelines can extend. The gap makes delivery timing an important distinction between orders secured and revenue ultimately recognized.
Management said 70%–80% of the order book carries price-variation clauses. Those provisions offer protection against input-cost increases, although the first-half results show that adjustment timing can still affect profitability.
Capacity ramp-up supports the revenue target
The new Kannur facility is expected to reach 40%–50% utilization during FY27 and almost 80% in FY28, according to management. The ramp-up and expansion into Maharashtra are intended to support further growth.
Higher-capacity power transformers offer slightly better margins than distribution transformers, Rajamohan said. However, he put that advantage at 1–1.5 percentage points and said higher overheads and skilled-staff requirements absorb it. A richer product mix therefore does not automatically imply wider net margins.
Working capital remains a second-half priority
Higher inventories and trade receivables increased working-capital needs. Rajamohan said the company’s focus is on expanding revenue rather than reducing inventory, and he expects operating cash flow to turn positive in H2 FY27.
Access to additional markets also remains unfinished. PGCIL approval is pending, while the company has yet to secure data-center orders and needs credentials and type-test certificates for transformers above 160 MVA to pursue that opportunity.
Conclusion
The next test for Supreme Power earnings is second-half delivery: converting outstanding orders into revenue while improving cash generation. The ₹300–350 crore revenue target and expected return to positive operating cash flow remain management forecasts, not completed results.
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