Supreme Power's order book is worth more than the company itself.
FY26 revenue hit ₹182 crore. The ₹588 crore order book is now 98% of its ₹586 crore market cap, and management is chasing ₹300 crore in FY27.
What's new
- FY26 revenue was ₹182 crore, with an order book of ₹588 crore providing multi-year visibility.
- FY27 revenue guidance is ₹275-300 crore, a 51-65% jump, backed by the expanded Kanhe plant.
- The company is spending ₹22-25 crore to make its own transformer tanks, targeting a ~1% margin boost.
Why this matters
The gap between the ₹588 crore order book and the ₹586 crore market cap is the key metric. It means the company's contracted work is valued at essentially its entire worth on the exchange. The aggressive FY27 guidance and new capex bet that the Kanhe plant can convert that backlog into cash flow quickly.
What we're watching
- Whether the Kanhe plant ramps up to meet the ambitious ₹275-300 crore FY27 target.
- Execution of the backward-integration plan for transformer tanks and its actual margin impact.
- Progress in securing contracts from the high-voltage data center segment.
The full read
Supreme Power Equipment's FY26 results are a prologue. The main event is the ₹588 crore order book that now sits against a ₹586 crore market cap. That near-one-to-one ratio frames everything else: the ₹182 crore in FY26 revenue, the ₹275-300 crore FY27 guidance, and the new ₹22-25 crore capex. The Kanhe plant's capacity expansion from 2,500 MVA to 9,000 MVA is the operational engine for that guidance. The tank manufacturing investment is a margin play. But the real pivot is strategic. The company is narrowing its focus to pure-play transformer manufacturing, betting on high-voltage demand from data centers. The open question is whether the expanded capacity can execute on time. The order book says the demand is there.
Questions answered
- Why is the order book figure so important relative to the market cap?
- The ₹588 crore order book is nearly identical to the ₹586 crore market cap. This implies the entire value of the company is covered by contracted future work, which removes significant demand uncertainty.
- What is driving the aggressive FY27 growth guidance?
- Management is guiding for ₹275-300 crore in revenue, up from ₹182 crore in FY26. The primary driver is the newly commissioned Kanhe facility, which expanded capacity from 2,500 MVA to 9,000 MVA to fulfill the existing order backlog.
- How does the tank manufacturing investment affect the business?
- The ₹22-25 crore investment is for backward integration into manufacturing transformer tanks. Management estimates this will improve margins by approximately 1% by bringing a key component in-house.
- What is the company's new strategic focus?
- Supreme Power is pivoting to a pure-play transformer manufacturer, specifically targeting the high-voltage power applications needed for the emerging data center sector. This is a strategic shift from its prior portfolio.