Synopsis: Megatherm Induction Ltd shares are in focus after it secured Rs. 37.88 crore worth of domestic transformer orders from Solidus Techno Power, Rungta Mines, and others.
This company designs, engineers, supplies, erects, and commissions turnkey steel melt shop solutions, along with after-sales services like maintenance and spare parts is now in the spotlight after securing multiple orders.
With a market capitalisation of Rs. 384 cr, the shares of Megatherm Induction Ltd are currently trading at Rs. 206.50 per share, jumping 2.5% from today’s low of Rs. 201.35, down from its previous close of Rs. 207.45 per share.
As of Q2FY26, Ashish Kacholia holds a 1.68% stake in the company, while his firm, Bengal Finance and Investment Pvt Ltd owns 1.48%, bringing their combined holding to 3.16%.
About the order
Megatherm Induction Limited has announced a significant business development, stating that it has secured multiple domestic orders for transformers. The company has received a total of five domestic transformer orders with an aggregate order value of approximately Rs. 37.88 crore.
These orders have been awarded by reputed entities, including Solidus Techno Power Private Limited, Sprng Akshaya Urja Private Limited, Replus Engitech Private Limited, and Rungta Mines Limited. The scope of work primarily involves the supply, erection, and commissioning of capital goods, reinforcing Megatherm’s position in the transformer and power equipment segment.
The orders are expected to be executed within defined timelines ranging from 14–16 weeks to four months, with some contracts scheduled for completion by April 2026 and July 2026. Commercial terms of the contracts include advance payments along with performance retention clauses ranging between 7.5% for two years and 10% for one year, depending on the customer.
Notably, one of the key highlights includes Megatherm beginning its business relationship with Solidus Techno Power Private Limited through an order for two 12.2 MVA solar transformers, marking a strong entry into renewable energy-related projects.
Megatherm Induction Limited is a leading name in the field of metal heating and melting solutions and is widely recognised as a preferred partner by an expanding base of both domestic and international clients. The company specialises in electro-thermal processing equipment, offering advanced solutions to meet complex thermal challenges through induction technology.
It has strong financial metrics with a ROCE of 21.1% and ROE of 16.3%, indicating efficient capital utilisation. The company maintains a low debt-to-equity ratio of 0.23, reflecting a healthy balance sheet.
Valuations appear attractive with a P/E of 16.0, below the industry average of 24.7, and a PEG ratio of 0.10. Additionally, Megatherm has delivered impressive profit growth of 31.0% CAGR over the last five years.
Order Book and Revenue Guidance
As of H1FY26, the company has a strong and diversified order book of Rs. 430 crore, with Rs. 260 crore expected to carry over into FY27, providing solid revenue visibility. FY27 revenue is guided at Rs. 450 crore, driven mainly by induction products and allied equipment across domestic, SAARC, and North American markets, along with steady transformer and after-sales contributions.
Over the medium term, revenues are projected to grow to Rs. 605 crore in FY28/29 and Rs. 950 crore by FY31/32, supported by geographic expansion and rising after-sales income, while EBITDA is expected to scale up from Rs. 59 crore in FY27 to Rs. 152 crore by FY31/32, reflecting operating leverage and margin expansion.
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