Megatherm stops taking orders as transformer unit hits 100% capacity
Order book doubles to ₹80-90 cr, FY27 revenue target of ₹450+ cr reaffirmed. But a prior call gave conflicting capex figures, raising execution questions.
— 1 earlier story on Megatherm Induction Ltd. →What's new
- Transformer unit at 100% capacity – double shifts, no new orders accepted.
- Secured 400+ MVA orders from solar and BESS; vendor approvals from Shell, Tata Power.
- FY27 revenue target of ₹450+ cr reaffirmed; 17-18% EBITDA margin target in 2-3 years.
Why this matters
A nano-cap pulling the order book to double historical levels is rare. The capacity constraint is a good problem, but the ₹370 cr company now has to execute on global expansion (US JV, Spain JV, Middle East) and a 3x revenue jump by FY27 – all while managing front-loaded cost growth (23% employee, 17% marketing). The conflicting capex figures from two weeks ago don't inspire confidence in planning.
What we're watching
- How quickly the company adds capacity – capex clarity needed after the June 2 mismatch.
- Whether the global JVs (US, Spain) materialise within the stated timeline.
- Margin trajectory – employee costs rose 23% in the latest quarter; cost savings from scale need to show.
The full read
Megatherm's transformer unit is running flat out. Double shifts, 100% capacity, no new orders. That pushed the order book to ₹80-90 crore, more than double where it normally sits. The FY27 revenue target of ₹450+ crore was reaffirmed, along with a 17-18% EBITDA margin goal in 2-3 years. All of this sounds constructive for a ₹370 crore market cap. But the last call, just two weeks ago, produced conflicting capex numbers ( ₹20 crore vs ₹5-10 crore ). A nano-cap that can't keep its stories straight while promising a US JV, a Spanish JV, and Middle East offices, and already spent 23% more on employees, has a lot to prove between now and FY27.
Questions answered
- Why did Megatherm stop accepting orders?
- Its transformer business is operating at 100% capacity with double shifts, so it cannot take fresh orders until capacity expands.
- What is the order book size and how does it compare historically?
- The order book stands at ₹80-90 crore, more than double historical levels, driven by 400+ MVA from solar and BESS segments.
- What are Megatherm's revenue and margin targets?
- Management targets ₹450+ crore revenue in FY27 (from ₹159 crore in Sep 2025 quarter) and 17-18% EBITDA margin in 2-3 years.
- What global expansion plans were discussed?
- The company plans a US joint venture, a Spanish JV, and Middle East offices. No timelines or investment details were given.
Megatherm Induction Ltd.
Latest quarter · Mar 2026
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All notes on MEGATHERM →- 17 Jun 2026 · 3:09 PM IST Megatherm stops taking orders as transformer unit hits 100% capacity
- 34d ago Megatherm gave two capex figures in one call. The numbers don't match.