Megatherm Induction Ltd(MEGATHERM)

NSE: MEGATHERM

₹ 228-1.32%refreshed 26 Oct, 03:30 pm ISTMarket cap: ₹ 430 crUpdated: 27 Oct 2026

About

Megatherm Induction makes induction furnaces, induction heating and hardening equipment for steel, foundry, forging and casting customers. It also sells after-sales spares and, since its Kharagpur facility opened, transformers. Reported FY26 revenue was 346.23 Cr. Management described the Kharagpur transformer facility as the largest transformer manufacturing facility in eastern India.^[1][2][3]

Business mix

Spares revenue was ~₹70 Cr in FY26 (~20% of total revenue), up from ₹50 Cr when total revenue was ₹250 Cr.^[3]
Transformer revenue was ~₹40-45 Cr in FY26.^[3]
Revenue mix in H1 FY26: transformers ~10% of turnover, spares ~20-22%, and forging, heating, hardening and pipes-tubes ~7-8%.^[4]
Mix around Q2 FY25, out of ~₹300 Cr revenue: ~₹60-70 Cr spares, ~₹50 Cr forging and foundry engineering, ~₹30-35 Cr transformers, with the rest from the steel sector.^[2]

Products

The transformer facility is set up to make power, distribution, inverter duty, LRF/arc and converter duty transformers.^[2]
CPRI Bhopal validated the company's 13.2 MVA inverter duty transformer in August 2025. Production of these transformers started in April 2026.^[4][3]
Cast resin, distribution and loco transformers were at various approval stages as of the Q4 FY26 call.^[3]
In FY25 the company launched a Hybrid Converter for foundry and castings, plus induction heating uses such as quench tempering, wheel hardening and an SS billet inline heater.^[5]

Operations and capacity

The induction products factory was running at 100% capacity in H1 FY25.^[2]
A new transformer shed at Kharagpur was commissioned in the last one to one-and-a-half months of FY25.^[5][2]
Backward integration covers copper drawing, crucible making and CRGO core processing. In FY25 the stated target was to process 60% of copper and core needs in-house.^[5][2]
Management said the four factories together can support ₹500-600 Cr of revenue at steady state.^[3]

Order book

Total order book was ~₹430-450 Cr at the Q4 FY26 call: ~₹250 Cr domestic induction, ~₹80-85 Cr transformers and ~₹120-130 Cr exports.^[3]
About ₹50-60 Cr of the export order book was described as at risk from disruptions in the Middle East.^[3]
Transformer orders total 400+ MVA. Production is fully booked until about October 2026, so no new transformer orders were being accepted at the Q4 FY26 call.^[3]
The order book was ~₹430 Cr in Q2 FY26, compared with ~₹350 Cr in June 2025 and ~₹300 Cr a year before that.^[4][5]

Customers and exports

Exports were ~10-12% of revenue in FY26 and FY25, against a usual 20-30%. Management targets 20-25% in FY27.^[3][5]
Vendor approvals from 10+ renewable energy companies were complete as of the Q4 FY26 call. Tata Power gave make approval in Q2 FY26.^[3][4]
Induction furnace customers won from competitors include Rashmi Steel and Rungta Mines (as of Q2 FY25).^[2]
The company sold to 52+ countries as of Q2 FY25. It has tie-ups in Brazil, Mexico and Argentina, and a UK office was being set up (Q2 FY26).^[2][4]

Expansion

A fourth manufacturing shed for transformers (~₹20 Cr capex) is under construction, with completion expected within one year of the Q4 FY26 call.^[3]
Once the fourth shed is running, management expects total transformer capacity to support ₹250 Cr of transformer revenue.^[3]
The company entered pipe and tube welding through a joint venture with SiCtech Induction of Spain, for an Indian market of about ₹150 Cr.^[3]
CE and UL certifications for induction equipment were in process as of Q2 FY26.^[4]

Recent developments

24 Sep 2026: CRISIL upgraded the company's long-term bank loan rating to BBB+/Stable from BBB/Stable, and its short-term rating to A2 from A3+.^[6]
January 2026: the US joint venture Megatherm Cyprium LLC became Megatherm Cyprium Inc., to serve North America. Megatherm's stake was 49.99%.^[3][5]
FY26 total income missed management's ₹400 Cr target. Management cited export shipments held up by the Middle East war and transformer vendor approvals taking 6-8 months longer than expected.^[3]
The company plans to move to the NSE main board by March 2027, together with an equity fundraise.^[3]

Market Cap

₹430 Cr

High / Low

₹290 / 170

Stock P/E

19.8

Price / Book

3.1

Book Value

₹88

EPS

₹12.6

No. of Shares

1.88 Cr

ROCE

18.1%

ROE

15.4%

OPM

10.0%

Debt / Equity

0.30

Sales

₹346 Cr

Net Profit

₹24 Cr

Promoter holding

71.9%

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