Indo Tech Transformers Ltd. (INDOTECH) AI Stock Analysis

• Market Cap: ₹16.07B
• Dividend Yield: N/A
• Average Volume (3M): 1.83K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.91
• Revenue Growth: 34.48%
• EPS Growth: 40.61%
• Country: IN
• Employees: 286
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 23.45
• Shares Outstanding: 10,620,000
• 10 Day Avg. Volume: 2,059
• 30 Day Avg. Volume: 1,826
• PEG Ratio: 1.04
• Price to Book (P/B): 8.63
• Price to Sales (P/S): 3.96
• P/FCF Ratio: 61.19
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ₹1,649.00 ▲(4.18% Upside)
• Action: Reiterated Date: 01/30/26
• Date: Action: Reiterated 01/30/26

Score is driven primarily by strong financial performance (growth, margins, and improving free cash flow). This is partially offset by weak technicals (below key moving averages and negative MACD), while valuation (P/E ~17) appears reasonable but not clearly compelling without dividend data.

Positive Factors

Robust revenue and margin improvement

Sustained revenue growth with expanding gross and net margins indicates durable competitive execution on cost and pricing. Higher margins support reinvestment in engineering and capacity, improve cash returns to shareholders, and strengthen long-term profitability resilience across cycles.

Strong free cash flow generation

Material improvement in free cash flow and efficient cash conversion reduce dependence on external financing for working capital and capex. Reliable FCF supports sustained operations, selective growth investments, and ability to fund warranty/service commitments over multiple quarters.

Prudent balance sheet and improved ROE

A conservative leverage profile and rising ROE provide financial flexibility to withstand project timing variability common in power equipment. Solid equity and low insolvency risk help secure large utility and EPC contracts that require performance bonds and long payment terms.

Negative Factors

Rising liabilities to monitor

An uptick in liabilities, if persistent, can offset balance sheet strength and pressure liquidity despite stronger cash flow. For capital-intensive transformer projects, higher payables or borrowings could tighten funding for inventories, delay capacity expansion, or raise financing costs over several quarters.

Exposure to utility and government capex cycles

Reliance on utility and government customers links revenue to public capex cycles and budget timing. Structural project delays, procurement slowdowns or policy-driven spending shifts can reduce order flow and extend receivable cycles, creating durable revenue visibility and working capital headwinds.

High market sensitivity (elevated beta)

A near-2.0 beta implies earnings and cash generation are more volatile versus the broader market. For a transformer manufacturer this reflects amplified cyclicality in equipment orders and margin pressure in downturns, making multi-quarter operating performance less predictable.

Indo Tech Transformers Ltd. Business Overview & Revenue Model

Company Description

Indo Tech Transformers Limited manufactures and sells transformers in India and internationally. It offers power, distribution, large power, open ventilated dry type, and special application transformers, as well as mobile sub-station transformers and sub-stations for use in the generation, transmission, and distribution of electric power. The company was incorporated in 1976 and is based in Kancheepuram, India. Indo Tech Transformers Limited operates as a subsidiary of Prolec GE, S. de R.L. de C.V. As of March 31, 2020, Indo Tech Transformers Limited operates as a subsidiary of Shirdi Sai Electricals Limited.

How the Company Makes Money

Indo Tech Transformers Ltd. generates revenue primarily through the manufacturing and sale of electrical transformers and related products. The company's revenue model is structured around direct sales to utility companies, industrial clients, and infrastructure projects, which represent significant key revenue streams. INDOTECH also engages in after-sales services, including maintenance and repair, which provides recurring income. Additionally, partnerships with government agencies and private sector enterprises for large-scale infrastructure projects enhance its earnings potential. The company's focus on research and development allows it to innovate and offer customized solutions, further attracting customers and boosting revenue.

Indo Tech Transformers Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: excellent revenue growth and improving profitability (robust gross margin and significantly improved net margin), healthy EBIT/EBITDA margins, and materially better free cash flow with good cash conversion. Balance sheet is solid with prudent leverage and improved ROE, though rising liabilities warrant monitoring.

Income Statement

Indo Tech Transformers Ltd. demonstrates excellent revenue growth, with a strong revenue increase from 2024 to 2025. The gross profit margin is robust, indicating efficient production cost management. The net profit margin has improved significantly, reflecting enhanced profitability. EBIT and EBITDA margins are healthy, showcasing strong operational efficiency. Overall, the income statement reveals a well-managed business with growing profitability.

Balance Sheet

The company maintains a strong equity position, with a favorable debt-to-equity ratio indicating prudent use of leverage. The return on equity has improved, reflecting better profitability relative to shareholder equity. The equity ratio is solid, suggesting financial stability and a low risk of insolvency. However, a check on increasing liabilities is advisable to maintain this stability.

Cash Flow

Indo Tech Transformers Ltd. shows a significant improvement in free cash flow, with strong growth in free cash flow from 2024 to 2025. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to reported net income. Free cash flow to net income ratio suggests effective conversion of earnings into cash. The cash flow statement reflects a strong ability to generate cash, which supports ongoing operations and potential growth investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.94B	6.12B	5.04B	3.71B	2.80B	2.05B
Gross Profit	1.82B	1.66B	1.46B	983.17M	751.90M	610.90M
EBITDA	1.09B	915.11M	649.55M	323.26M	182.21M	113.10M
Net Income	771.40M	638.80M	468.60M	257.02M	121.89M	62.86M
Balance Sheet
Total Assets	0.00	4.36B	3.82B	3.01B	2.38B	1.87B
Cash, Cash Equivalents and Short-Term Investments	930.88M	938.40M	575.40M	433.90M	425.03M	94.13M
Total Debt	0.00	81.60M	49.95M	113.35M	5.59M	0.00
Total Liabilities	-2.81B	1.55B	1.65B	1.30B	932.50M	533.67M
Stockholders Equity	2.81B	2.81B	2.17B	1.71B	1.45B	1.33B
Cash Flow
Free Cash Flow	0.00	396.10M	236.47M	-115.54M	183.60M	72.27M
Operating Cash Flow	0.00	557.50M	317.67M	-39.42M	216.94M	78.26M
Investing Cash Flow	0.00	-181.50M	-115.95M	-147.47M	-87.28M	-25.88M
Financing Cash Flow	0.00	14.30M	-80.90M	93.69M	-1.11M	-1.53M

Indo Tech Transformers Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1582.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDOTECH, the sentiment is Positive. The current price of 1582.85 is above the 20-day moving average (MA) of 1429.78, above the 50-day MA of 1444.52, and below the 200-day MA of 1739.05, indicating a neutral trend. The MACD of 37.44 indicates Negative momentum. The RSI at 61.60 is Neutral, neither overbought nor oversold. The STOCH value of 75.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:INDOTECH.

Indo Tech Transformers Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VOLTAMP	73 Outperform	₹85.32B	24.08	―	1.27%	15.87%	-4.28%
INDOTECH	68 Neutral	₹16.07B	18.43	―	―	34.48%	40.61%
TARIL	65 Neutral	₹90.70B	33.68	―	0.07%	33.60%	100.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WENDT	59 Neutral	₹13.52B	60.50	―	0.62%	―	―
HIRECT	58 Neutral	₹24.31B	48.09	―	0.13%	35.05%	99.65%
KECL	49 Neutral	₹5.95B	55.54	―	―	-11.25%	-48.96%

Indo Tech Transformers Ltd. Corporate Events

Indo Tech Transformers Board Clears Q3 FY26 Unaudited Results With Clean Review

Indo Tech Transformers Ltd. reported that its board met on 4 February 2026 to review and approve the company’s standalone unaudited financial results for the quarter and nine-month period ended 31 December 2025. The results, prepared under Indian Accounting Standards and submitted to the stock exchanges, were accompanied by a limited review report from ASA & Associates LLP, whose auditors stated that nothing had come to their attention suggesting any material misstatement or non-compliance with disclosure requirements, providing investors with comfort on the integrity of the interim numbers.

Indo Tech Transformers Secures Major Order for NTPC Projects

Indo Tech Transformers Ltd. has secured a significant purchase order valued at INR 91.26 Crores for the supply of 11 transformers to Four EF Constructions for NTPC projects. This order is considered a material event due to its substantial value compared to regular transactions, indicating a positive impact on the company’s operations and market positioning.