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Informist, Friday, Mar. 20, 2026

 

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--Atlanta Electricals MD: Looking to export to Africa, Europe, West Asia
--CONTEXT: Comments by Atlanta Electricals MD Patel in interview
--Atlanta Electricals MD: Promoters have to cut stake by 12-13% by FY29
--Atlanta Electricals MD: Want FY26 net profit, revenue to grow 40%
--Atlanta Electricals MD: To merge arm Atlanta Trafo with co in FY27
--Atlanta Electricals MD: Plan capex worth INR 2.60 billion in FY27

 

By Priyasmita Dutta and Gunjan Rajput

 

NEW DELHI – Atlanta Electricals Ltd. plans to focus on boosting exports, developing products for power transmission, expanding its presence in the renewable sector, and foraying into railway segment in 2026-27 (Apr-Mar), Chairman and Managing Director Niral Patel said Friday. The Gujarat-headquartered company is planning capital expenditure of around INR 2.60 billion for the financial year starting Apr. 1, he said. 

 

For exports, Atlanta Electricals plans to target neighbouring markets first, followed by Africa and Europe, Patel told Informist in an interview. The company is also looking for opportunities in West Asia, he said. 

 

According to Patel, geopolitical disruptions, while unfortunate, also create demand and open up markets for expansion. "There are countries which are developing, and those countries are something that Atlanta would always keep its eye open for," Patel said. West Asia is in the mid of a geopolitical turmoil after the US and Israel launched joint military strikes on Iran on Feb. 28, triggering a retaliation from Tehran. 

 

With plans to scale up operations, Patel said Atlanta Electricals will be open to raising funds through the debt market, if needed. He said that the promoters of the company will have to reduce their stake by 12-13% by FY29--within three years of its public offering in September 2025--to meet the Securities and Exchange Board of India's minimum public shareholding norms. Under these norms, a listed entity must have at least 25% public shareholding within three years of listing. 

 

Currently, the promoter group holds an 87.3% stake in the company.

 

Patel also said Atlanta Electricals will likely post a 40% rise in its net profit for FY26, with revenue also expected to grow 40%. For the December quarter, the company had reported net profit of INR 494.20 million on revenue of INR 4.72 billion. On Friday, the company's shares closed at INR 1,179.20 on the National Stock Exchange, up 10% from the previous close. 

 

Below are the edited excerpts of the interview:

 

Q. What are your expansion plans for 2026-27 (Apr-Mar)? Are you planning to set up units in other states (other than Gujarat)?

 

A. We already have one unit in Bangalore, which is operating. Setting up large transformer units in locations where road logistics are not easily possible doesn't make sense. We would be catering to these markets from Gujarat itself, which we are doing. Also, we are catering all the way till Jammu and Kashmir, and it is pretty much possible.

 

Q. Are you looking for tie-ups in neighbouring countries like Nepal or Bhutan to set up a unit that will help with power generation?

 

A. Long-term commitment tie-ups are required. But we don't see any of these kinds of tie-ups for long-term tenders, because their geographical territory is significantly smaller than the states of India. The requirement of power transformers like our particular products will not meet that requirement. There are countries which are developing, like Middle Eastern (West Asian) countries, and those countries are something that Atlanta would always keep its eye open for.

 

Q. Expansion plans in West Asia may have to wait give the geopolitical situation...

 

A. Situations like these are sad, of course, but situations like these create demand and open up markets.

 

Q. What are the sectors that you will be largely focusing on in FY27?

 

A. Our products usually go in the power transmission sector. That sector is already there. We are predominantly present in all majority states of India, where the requirements are huge. We will be looking at exports. We would not leave the renewable space in the domestic market. And industrial space is where we have focused. We have orders, but the quantum is less. We will be increasing the quantum in the next couple of years. We will also be looking into participating in the railway sector.

 

Q. Can you please elaborate on the railway sector? What kind of projects are you working on?

 

A. There are trackside transformers, short-connected transformers, pre-connected transformers, and traction transformers. These are some of the products we are working on.  

 

Q. Which export markets are you prioritising, particularly for transformer exports?

 

A. Neighbouring countries are the first target. Then the African countries and European countries. We focus significantly on European and Middle East (West Asia), and Africa.

 

Q. You did an IPO last year, so you must be well-positioned in terms of your fundraising requirements. But going forward, as and when you require more funds, what are some of the instruments that you will be looking at?

 

A. There are a lot of instruments available. The easiest instrument is debt, which we take into consideration. There are internal restrictions and limitations, or policy matters, to determine the amount we raise through debt. We don't go over in terms of leveraging the company.

 

We still have to dilute further about 13% stake in Atlanta Electricals to reach the minimum guideline of 75% promoter holding. That is something that would always be there on the table to use for fundraising.

 

One of the key aspects in my industry is that if you channelise your inventory in a proper fashion, if you utilise the resources that you already have in a proper fashion, the requirement for funding stays under control and goes down.

 

Q. Is there a timeline by which you would like to do the 13% stake dilution?

 

A. 25% is the minimum guideline for SEBI to be in public. We (promoter) are at about 87%, and about 12-13% (stake sale) is required. There is a three-year period that is given by SEBI. Within a span of three years, we will be doing it.

 

Q. Do you think you have the appetite to do the entire 13% stake sale at one go, or would you like to do it in a staggered manner?

 

A. Both options are available. Depending upon the situation at that point in time, we will take a call. We are getting into backward integration, which will require a significant amount of capital expenditure. As I said, debt is easy. We have already started raising debt for backward integration.

 

Q. How much are you raising via debt for this particular backward integration?

 

A. The project costs INR 1.87 billion. We have not yet raised the debt, as it is getting internal approval.

 

Q. What is your capital expenditure target for FY27?

 

A. If I put it all together, it will be close to about INR 2.60 billion, approximately, including actual capacity creation, backward integration, and joint ventures for higher Kilovolt class transformer manufacturing, in which we are buying intellectual property rights of other transformer manufacturers as a licensor.

 

Q. You reported INR-494.20-million net profit last quarter. Where do you see net profit by FY26?
 

A. Year-on-year, we want to grow at 40%. Consolidated margins will be more or less the same as we did last year in terms of percentage. Till FY28, the margins will be fairly stable. In terms of revenue, we want to grow by more or less 40% higher on year. 

 

Q. Do you intend to keep Atlanta Trafo as a subsidiary, or is a merger with Atlanta Electricals being considered?

 

A. There is a plan. Next year, we will be merging it with Atlanta Electricals.  End

 

Edited by Akul Nishant Akhoury

 

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