Accord Transformer & Switchgear Limited (ATS), engaged in the production of transformers and switchgear solutions for the power transmission and distribution sector. Incorporated in 2014 and converted into a public limited company in 2024, the company primarily serves utilities, DISCOMs, EPC contractors, and industrial clients.

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Before the Deep Dive: What’s Working — and What Isn’t

Now that you’ve seen the snapshot, let’s unpack the full story behind these numbers and understand the business in context.

Company Origin Story

Founded in 2014 in Gurgaon, Haryana, ATS began as a modest private limited company — Accord Transformer & Switchgear Private Limited — incorporated by first-generation entrepreneur Pradeep Kumar Verma. Armed with an Electrical Engineering degree and a Master's in International Business, Mr. Verma had earlier founded ABL Electricals in 2012, building foundational domain expertise before establishing ATS.

Over the course of a decade, ATS has evolved from a regional transformer supplier to a diversified electrical equipment manufacturer with two manufacturing facilities in Bhiwadi, Rajasthan. The company's growth reflects the underlying tailwinds of India's power infrastructure build-out — supplying critical products including distribution and power transformers, compact substations, switchgear panels, EV charging stations, and specialty transformers to a cross-sector customer base spanning renewable energy, infrastructure, and industrial applications.

The Power Transmission & Distribution Sector

ATS operates at the intersection of India's most critical infrastructure mandates: grid modernisation, renewable energy integration, and electrification of new-age sectors like EV charging. The transformer and switchgear market forms the backbone of every watt of electricity delivered from a generation source to a consumer.

India's capital goods production reached approximately ₹4,29,000 Cr in FY24, with the electrical equipment sub-sector growing in line with accelerated government capex and private sector energy transition spending. The transformer industry, specifically, is entering a multi-year structural upcycle driven by several converging forces.

Key Demand Drivers

• National Electricity Plan & Grid Upgrade: India's Power Ministry targets 500 GW of non-fossil fuel capacity by 2030. Every GW of new renewable capacity requires 1–1.5x its installed power in transformer and substation capacity — creating enormous procurement demand.

• T&D Sector Investment: India is committing ₹2.5–3 lakh Cr annually toward transmission and distribution infrastructure upgrades. RDSS (Revamped Distribution Sector Scheme) and PM-KUSUM schemes are accelerating transformer procurement across DISCOMs.

• Renewable Energy Integration: Solar and wind farms require specialised solar/wind inverter-duty transformers for grid evacuation — a product category where ATS has already developed and sold offerings.

• EV Charging Infrastructure: The government's push for EV adoption mandates charging infrastructure across highways, cities, and commercial zones — all requiring specialised power distribution hardware, including ATS's EV charging station product.

• Smart Grid & Digitisation: Transition to smart metering and automated distribution management systems requires compatible, modern switchgear and compact substations — a growing area for ATS.

• Make in India & PLI Schemes: The capital goods PLI scheme incentivises domestic manufacturing of transformers and electrical equipment, benefiting organised domestic players.

Market Size & Growth

India's transformer market is estimated at approximately USD 3–4 billion and is expected to grow at a CAGR of 8–10% through 2030. The compact substation segment — where ATS has been notably growing — is seeing faster growth driven by urban power distribution requirements. Global transformer demand is additionally being driven by AI data centres, grid modernisation in developed markets, and offshore wind — creating export opportunities for quality Indian manufacturers.

ATS's positioning within this sector — across distribution transformers, compact substations, and specialty solutions — aligns it with the parts of the value chain that are seeing the most active investment. The company's partnerships with global firms further de-risk technology gaps in serving premium institutional clients.

Business Model

ATS Limited operates on a B2B (Business-to-Business) model focused on the design, engineering, manufacturing, and supply of critical electrical power systems, primarily serving the power transmission and distribution, renewable energy, infrastructure, and EV charging sectors Unlike commodity transformer manufacturers that compete purely on price, ATS differentiates through product diversity, strategic technology partnerships, and a capability to serve both standard and highly customised requirements. This business model is highly working-capital-intensive, requiring substantial inventory maintenance to mitigate raw material price volatility (such as copper and aluminium). ATS follows a manufacturing-led model with in-house production capabilities. The business is asset-heavy and requires investment in plant & machinery, testing facilities, and quality assurance systems.

ATS operates as a ZED (Zero Effect, Zero Defect)-certified manufacturer and holds ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications — signals of institutional quality management and positioning the company to address government and PSU procurement requirements.

In 2024–25, the company formalised strategic technology collaborations with SGB-SMIT GmbH (Germany), Lucy Electric India, and Schneider Electric — dramatically expanding its product sophistication and market credibility. 

ATS operates two manufacturing facilities in Bhiwadi, Rajasthan: Unit I (H1-39 F1 and F2, RIICO Industrial Area) and Unit II (E-11/E-82, RIICO Industrial Area). Facilities are equipped with plasma cutting machines, MIG and arc welding systems, shot blasting and painting booths, foil winding machines, busbar processing equipment, and full in-house testing laboratories.

Core Product Portfolio

Transformers (Primary Revenue Driver): Distribution transformers (up to 2.5 MVA, 36 kV), Power transformers (up to 20 MVA, 33 kV), Dry-type transformers (up to 5,000 KVA, 33 kV), Solar and wind inverter-duty transformers, and furnace-duty special transformers. Transformers consistently account for ~78–92% of product revenue.

Control Panels & Switchgear: Low-voltage (LV) control switchboards, APFC panels, industrial panels, and customised Prisma Set control panels (in collaboration with Schneider Electric India). This segment serves industrial and commercial customers requiring precise power quality management.

Capacity Utilization 

For the product category of Transformers with Miscellaneous Ratings

Revenue mix

 By revenue category ( in Rs, Cr.)

By product mix ( in Rs, Cr.)

By Geography ( in Rs, Cr.)

ATS is primarily domestic-focused, with exports only recently beginning in H1 FY26 — representing a potential upside if the company can convert its global technology partnerships into export order flow. Domestically, Gujarat and Uttar Pradesh have emerged as the largest revenue contributors in FY25 and H1 FY26 respectively, 

ATS is led by a husband-and-wife promoter duo — Pradeep Kumar Verma and Shalini Singh — who collectively hold 84.94% of the pre-IPO share capital (61.97% post-IPO).

• Pradeep Kumar Verma: Aged 48, he is a first-generation entrepreneur with a Bachelor of Engineering in Electrical and Electronics Engineering and a MBA in International Business. He brings over 20 years of experience across design, engineering, lean manufacturing, and operations management in the transformer and switchgear industry. He is responsible for steering the company’s overall growth and operational efficiency

• Shalini Singh: Aged 45, she holds a Master of Arts in Sociology. She has been associated with the company since 2015 and brings over 10 years of experience in strategic leadership and operational management. Her focus is on overseeing production processes, quality standards, and overall manufacturing efficiency.

The board is also supported by three additional directors, including two independent directors with domain expertise in power distribution -Dipak Kumar Thakkar, formerly VP at Torrent Power and Mrs. Neelam, formerly AVP in retail banking at IDFC First Bank

Key Managerial Personnel (KMPs)

• Mr. Nitin Gupta (Chief Financial Officer): Aged 34, he is a member of the Institute of Chartered Accountants of India (ICAI) and holds a Bachelor's Degree in Commerce. He possesses over 8 years of experience in finance, accounting, auditing, fundraising, and corporate governance.

• Ms. Tulsi Sharma (Company Secretary and Compliance Officer): Aged 38, she is a qualified member of the Institute of Company Secretaries of India (ICSI). She has over 12 years of experience in corporate secretarial practice and legal compliance.

Financial Performance (₹ in Cr, except for percentage)

Accord Transformer & Switchgear Limited has demonstrated strong financial growth over the past three years, with revenue increasing from ₹40.78 Cr in FY23 to ₹79.02 Cr in FY25, reflecting a sharp 62.81% YoY growth in FY25. Profitability has improved significantly, with EBITDA margins expanding from 3.77% in FY23 to 11.49% in FY25 and PAT margins rising from 2.15% to 7.66%, indicating better operating leverage and cost control. Return ratios peaked in FY25 (ROE at 43.90% and ROCE at 26.09%) but moderated in the latest period, suggesting normalization as capital employed increased. The balance sheet has strengthened materially, with the D/E ratio declining to 0.18 and the current ratio improving to 2.11, reflecting deleveraging and improved liquidity. However, the business remains working-capital intensive, with receivable and inventory days increasing and operating cash flows turning negative in FY24 and FY25 due to higher working capital deployment. Overall, while growth and margin expansion are encouraging, sustainability of profitability and cash flow discipline will be key determinants of long-term financial stability.

Peer Analysis

Key Industrial metrics

1. EBITDA Margins (target 10 -18%)- In transformers, margins are compressed by copper and steel input costs, companies with higher product complexity command higher margins than commodity distribution transformer makers. Accord have a EBITDA margin stands at the lower end, which is 10.19 %

2. Working Capital Cycle- Critical for transformer companies. Production of large transformers takes 8 - 10 weeks. Combined with 60 - 120 days receivables from PSU, government buyers. ATS have a working capital cycle of 110 which is at par with the industry average.

3. Orderbook- A high order book provides revenue visibility. For capital goods and engineering companies, this is the single most important forward indicator. ATS has an orderbook of  Rs. 164 cr. till Jan, 2026, which is 2 times of FY 25 revenue of the company.

4. D/E ratio - Transformer companies are capital-intensive and often carry significant working capital borrowings. A low D/E (ATS: 0.55x in FY25) is positive and provides headroom to scale with fresh borrowings if needed.

5. Fixed Asset Turnover ratio.- For capital goods and engineering companies, fixed assets turnover ratio is very important, as it shows how efficiently you are utilizing the machinery. This ration stands at 5.77 for Dec 31, 25 and 11.27 times for FY 25 for the company.

The proposed expenditure is intended for the acquisition of a Vapour Phase Drying Plant, Integrated Transformer Test System, Erection and Commissioning of VPD Plant and Portable Capacitance & Tan Delta Test Set.  The objective of enhancing its manufacturing and testing capacities is foraying into new business segments such as solar, and meeting the requirements of its license partners, including Lucy Electricals and Schneider Electric for Compact Substations (CSS) and Prisma Set International. The company also intends to cater to the demand for high-rating transformers with Extra High Voltage (EHV) grade products, thereby strengthening its presence in the EHV market. 

The company requires additional working capital for executing increased order volumes, high inventory levels, high debtors, advance payments to suppliers, requirement of security deposits and for other corporate purposes.

Final Words — Through the LMVT Framework

Leadership

A technically grounded, first-generation promoter duo with over 20 years of domain experience. Mr. Pradeep Verma's ability to forge technology collaborations with global majors — SGB-SMIT, Lucy Electric, Schneider Electric — sets ATS apart from similarly-sized peers. However, the business is deeply dependent on his personal relationships that require attention.

Moat

ATS's competitive moat is emerging rather than entrenched. It derives from product portfolio breadth (transformers through CSS to EV charging stations), technology partnerships, ZED/ISO certifications enabling PSU vendor qualification, and a decade of execution history in a relationship-driven industry. The moat is being actively strengthened — the shift toward compact substations and speciality products, the global partnerships, and the capex investment in manufacturing capability all point toward a more defensible position. But at 10 years old and ₹79 Cr in revenue, the company is not yet an irreplaceable supplier.

Valuation

With the price band of ₹43–₹46 per share, Accord Transformer & Switchgear is being offered at a P/E of ~ 15.63 (post IPO). This makes the IPO one of the most attractively priced in its peer group — a meaningful discount to the sector average P/E of 25.76x and to direct listed comparables like Danish Power (18.09x) and Transformers & Rectifiers India (34.43x).

Tailwinds

India's transformer market is in a structural upcycle, underpinned by RDSS, PM-KUSUM, renewable energy capacity additions, smart grid investments, and EV infrastructure. The government's PLI scheme for capital goods and the 'Make in India' push create sustained domestic demand. ATS's product expansion into compact substations, EV charging, and specialty transformers positions it squarely in the highest-growth sub-segments.

Bottom Line

Accord Transformer & Switchgear is a genuine beneficiary of India's power infrastructure transformation, with improving financials, a diversified and growing product portfolio, and technology partnerships that punch above its peers. The ₹164 Cr order book provides near-term revenue confidence. However, working capital risk, capacity execution risk is still at play, the Day 1 subscription of 5.21x — driven largely by retail interest at 9.06x — validates market conviction in the pricing.