Atlanta Electricals Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Atlanta Electricals Ltd trades at ₹1,681, in a confirmed uptrend and 21 weeks into that stage. That is +22.2% against its own 200-day average. It sits at 67% of a 52-week range of ₹716 to ₹2,152. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (7 weeks and counting).

Today the stock is in a confirmed uptrend — week 21 of stage 2, confirmed. At ₹1,681 it trades +22.2% versus its 200-day average and sits at 67% of its 52-week range (₹716–₹2,152).

Against the market, two honest reads. Cumulative: over the last 11 months the stock moved +84% while the NIFTY 500 moved +2% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (7 weeks and counting; last ahead the week of 2026-07-01) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Atlanta Electricals Ltd's story is not scored yet against the markers our research file set on 27 June 2026. Where it sits in its own cycle: Not stated in the research file. Our fortnightly research layers last read it on 27 June 2026.

Our read, 27 June 2026. Atlanta Electricals delivered a four-fold capacity expansion in 18 months, and the operating numbers are validating the bet — revenue up 49% in FY26 with margins expanding to 20%.

From the numbers. The PE cycle engine assigns an EMERGING_OPPORTUNITY label based on limited history — only 3 quarterly data points available, so the percentile estimate is sparse and carries low reliability. Trailing PE of around 68-70…

From the price. Price stage 2, week 21 — above its 200-day line.

From the research. Atlanta Electricals delivered a four-fold capacity expansion in 18 months, and the operating numbers are validating the bet — revenue up 49% in FY26 with margins expanding to 20%.

🚨 Where they disagree. The PE cycle engine assigns an EMERGING_OPPORTUNITY label based on limited history — only 3 quarterly data points available, so the percentile estimate is sparse and carries low reliability. Trailing PE of around 68-70 times is at the 75th percentile of this thin history. Earnings have tripled from FY23 to FY26 while the multiple has remained in the 57-69 times range — meaning the stock is mid-expansion, not late-cycle. The true-story curve scores 0.688: earnings are 211% above trough (accelerated recovery), but the 12-month price runup of 120% means the earliness score is only 0.47 — the market has already priced substantial recovery.

What is proven. Atlanta Electricals delivered a four-fold capacity expansion in 18 months, and the operating numbers are validating the bet — revenue up 49% in FY26 with margins expanding to 20%.

What is not proven yet. If the 400KV short-circuit test fails or is deferred beyond December 2026, or if quarterly order intake falls below 500 crore for two consecutive quarters — either event would mean the EHV gateway thesis breaks, leaving a 220KV-only business priced at 68-70 times earnings with no step-up catalyst.

🚨 What would change our mind. If the 400KV short-circuit test fails or is deferred beyond December 2026, or if quarterly order intake falls below 500 crore for two consecutive quarters — either event would mean the EHV gateway thesis breaks, leaving a 220KV-only business priced at 68-70 times earnings with no step-up catalyst.

Layer 1 read, 27 June 2026 — KEEP. Genuine 4x-capacity transformer ramp, but the price already pays for the EHV act that is still a prototype. The earnings engine is real and confirmed: FY26 revenue grew 49% to ~1,852 cr and PAT 70% to 202 cr with operating margin expanding to 20%, driven by the Vadodara plant that paid back half its cost in seven months and a 2,493 cr order book. The problem is the entry price — at PE ~68 (RICH on absolute terms) the stock implies an IMPOSSIBLE 42.5% growth rate, so the easy part of the move is behind it. Management's 5-month PGCIL slip is the live risk to the one catalyst that could re-rate it further.

What would change Layer 1’s mind. If the 400KV short-circuit test fails or is deferred beyond December 2026, or quarterly order intake falls below 500 cr for two consecutive quarters — either breaks the EHV step-up and leaves a 220KV-only business stranded at 68x earnings.

Layer 2 read, 27 June 2026 — BENCH. Real, cash-backed earnings in a booming sector — but you are paying 68x for an EHV step-up that has not landed. Atlanta's earnings are genuine and cash-converting (profit up 70%, margins to 20%, debt repaid) and the transformer/grid sector is a confirmed multi-year capex upcycle — so this is not a value trap. But the stock trades at 68.7x (75th percentile, EXTREME model-based margin-of-safety of -55%) for an extra-high-voltage second act that is still an unqualified prototype — the 400KV test is pending and management itself slipped the PGCIL milestone five months and saw its data-center pipeline go to zero. Paying full price mid-cycle for an unlanded catalyst is a held-for-next-fortnight setup, not a fresh-inflection buy.

What would change Layer 2’s mind. If the 400KV short-circuit test PASSES and converts to a first EHV order in the next fortnight (the EHV gateway thesis lands), the unlanded-catalyst objection dissolves and BENCH flips to ADVANCE; conversely, per the timeline's own falsification, if the 400KV test fails/defers beyond Dec 2026 OR quarterly order intake falls below Rs500 Cr for two straight quarters, the EHV thesis breaks and it goes to DROP.

The test written in advance. If the 400KV short-circuit test fails or is deferred beyond December 2026, or if quarterly order intake falls below 500 crore for two consecutive quarters — either event would mean the EHV gateway thesis breaks, leaving a 220KV-only business priced at 68-70 times earnings with no step-up catalyst. — the thesis as written as stated by the next result.

What the company does. Atlanta has transformed from a mid-tier transformer maker into a 63,000 MVA integrated manufacturer spanning 66KV to 400KV, with PGCIL approval for the extra-high-voltage segment granted in April 2026. The Vadodara Unit 4 plant paid back roughly half its cost in its first seven operating months — unprecedented in the industry. The next 12-18 months hinge on whether the 400KV and 765KV prototypes clear short-circuit testing and unlock a market where the entry barriers are an order of magnitude higher.

🚨 What the surface reading misses. The surface reading is: OCF below PAT signals weaker-than-reported earnings quality. The research reads it further: OCF/PAT of 0.91 for a capital-goods manufacturer executing a major capacity expansion is solid. The cash story is growth_wc_plus_capex: 128 crore absorbed in working capital over FY22-FY26 (31% of cumulative OCF), while 536 crore went to capex. The WC build is order-book-driven inventory for a commissioning plant — a capital-goods seasonal pattern, not channel-stuffing.

Sources: our stock research file (27 June 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Atlanta Electricals Ltd reported ₹466 Cr of revenue in the Jun 26 quarter, +47.9% year on year. That is the 5th straight quarter of year-on-year growth. Over 5 years it has compounded at 36.5% a year. The last full year, FY26, came in at ₹1,852 Cr. The last four reported quarters add to ₹2,003 Cr.

Why this happened. The unexecuted order book as of March 2026 stands at 2,493 crore, with 80-85% targeted for FY27 execution. Price variation clauses on 75% of orders protect margins from commodity swings. New order intake of 2,507 crore was booked during FY26, restoring the book to roughly 1.3 times trailing revenue after execution. India's government has committed 9.6 trillion rupees in transmission infrastructure through 2032, and the supply-demand gap is expected to persist for 3-plus years.

FY26 revenue came in at ₹1,852 Cr (+48.9% on the year), capping 5 years at 36.5% compound. The latest quarter (Jun 26) printed ₹466 Cr, +47.9% year on year — the 5th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +56.7% growth against the decade's 36.5% — the current year is running faster than its own long-run rate.

FY26-Q4. revenue ₹748 Cr and profit ₹102 Cr as reported.

FY27-Q1. revenue ₹466 Cr and profit ₹47 Cr as reported.

Why-sources: our stock research file (27 June 2026) and the company’s own results for those quarters.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Atlanta Electricals Ltd's operating margin is 17.0% in the Jun 26 quarter, +2.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 6 fiscal years the operating margin has ranged 8.0% to 19.0%. The current quarter sits inside that band.

Why this happened. Atlanta grew manufacturing capacity from 16,000 MVA to 63,000 MVA in 18 months. The Vadodara Unit 4 plant (30,000 MVA, commissioned July 2025) contributed roughly 495 crore in revenue in its first 7 operating months. Legacy plants in Anand and Bengaluru reached near-full utilization throughout FY26, confirming the new capacity addition was not cannibalizing existing operations. As utilization rises, fixed costs spread over a larger revenue base — this mechanism drove the 300 basis point margin expansion from FY25 to FY26.

The latest quarter's operating margin is 17.0%, +2.0 pp against the same quarter a year ago. Across 6 fiscal years the operating margin has ranged 8.0%–19.0%, and FY26's 19.0% is the top of that band — a record year.

Why the margin moved: operating margin went +1.1 pp year on year while gross margin went +1.3 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

FY26-Q4. revenue ₹748 Cr and profit ₹102 Cr as reported.

FY27-Q1. revenue ₹466 Cr and profit ₹47 Cr as reported.

Why-sources: our stock research file (27 June 2026) and the company’s own results for those quarters.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Atlanta Electricals Ltd earned ₹47.0 Cr of net profit in the Jun 26 quarter, +51.6% year on year. It is the 3rd consecutive quarter of growth. Full-year FY26 profit was ₹202 Cr. The 5-year compound rate is 95.9%. That is 10.1% of the quarter's revenue. The same quarter a year earlier earned ₹31.0 Cr.

Jun 26 profit was ₹47.0 Cr, +51.6% year on year — the 3rd consecutive quarter of growth. On the full year, FY26 printed ₹202 Cr (+69.7%), and the 5-year compound rate is 95.9%.

Why profit moved: revenue contributed +47.9% and the margin +2.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +66.6% vs revenue +56.7%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

FY26-Q4. revenue ₹748 Cr and profit ₹102 Cr as reported.

FY27-Q1. revenue ₹466 Cr and profit ₹47 Cr as reported.

Why-sources: our stock research file (27 June 2026) and the company’s own results for those quarters.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 92% of Atlanta Electricals Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹184 Cr of operating cash against ₹202 Cr of profit. After ₹374 Cr of capital spending, ₹−190 Cr was left as free cash.

FY26: operating cash of ₹184 Cr against reported profit of ₹202 Cr, leaving free cash of ₹−190 Cr after ₹374 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 92% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 92%: the cash cycle stretched 41 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 13.8× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Atlanta Electricals Ltd's cash conversion cycle runs 74 days in FY26, up from 33 days in FY21. Capital spending ran ₹525 Cr over the last 3 years. At FY26 sales of ₹1,852 Cr each day of that cycle holds about ₹5.1 Cr, so roughly ₹375 Cr sits inside the business at any moment.

FY26: debtors at 84 days, inventory at 102 days — roughly 3.4 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 74 days, looser than FY21's 33.

The full loop: cash goes out to suppliers and production on day 0; stock waits 102 days to sell; customers pay about 84 days after that; and suppliers themselves are paid at 112 days — netting out to the 74-day cycle.

In money terms: at FY26 sales of ₹1,852 Cr, each day of the cycle holds about ₹5.1 Cr — so the 74-day loop keeps roughly ₹375 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹525 Cr over the last 3 fiscal years against ₹38.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹30.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Atlanta Electricals Ltd earns a ROCE of 45% in FY26. That is up from a trough of 28% in FY22. Return on invested capital clears the cost of that capital by +16.1 percentage points, so growth here adds value rather than only size. The wiring behind it is 10.9% net margin on 1.23× asset turns.

FY26 ROCE is 45%, recovered from a FY22 trough of 28% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 10.9% net margin × 1.23× asset turns × 1.62× balance-sheet leverage ≈ 21.7% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 28.1% − 12.0% = a +16.1 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Atlanta Electricals Ltd carries total debt of ₹51.0 Cr against shareholder equity of ₹929 Cr as of Jun 26, a debt-to-equity of 0.05 — effectively unlevered. On the annual view that ratio went from 0.42 in FY25 to 0.05 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Why this happened. All 340 crore of term debt (130 crore for Vadodara facility, 210 crore from the BTW acquisition) was repaid during FY26 using IPO proceeds and internal cash generation. Finance costs, which had been elevated through H1 FY26, will fall materially going forward. The company retains a 50 crore board-approved backup term loan but it is undrawn.

Jun 26: total debt of ₹51.0 Cr against shareholder equity of ₹929 Cr — a debt-to-equity of 0.05. On the annual view, debt-to-equity went from 0.42 (FY25) to 0.05 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of Atlanta Electricals Ltd moved a full percentage point over the last two years — the register is quiet. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — .

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Atlanta Electricals Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Atlanta Electricals Ltd trades at 59.2× P/E, mid-range by its own standards (57th percentile). Its long-run median P/E is 58.3×, measured across 0.9 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 59.2× is mid-range by its own standards (57th percentile), against a long-run median of 58.3× measured over 0.9 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved +58.4% against a +84.4% price move — the price outran earnings, pushing the multiple UP its own range.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

At its price on 28 June 2026, Atlanta Electricals Ltd was priced for profit growth of about 42.5% a year. Profit itself has compounded 95.9% a year over the past 5 years. The market pays that at 59.2× P/E, the 57th percentile of its own 1-year range.

What the two numbers say together. The multiple is unremarkable against its own past, and the growth the price is paying for is below what this company has actually delivered. Both readings sit on the same earnings, so they are one reading rather than two.

How to hold this number: it is a reading of one day's price, taken on 28 June 2026, not a running figure. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements. Every other number on this page is read off the live quote.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Atlanta Electricals Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 6 quarters across 1 curve, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

4-Factor Sector Score

72.9/100 — rank 1 of 2 in Electric Equipment - Transformers · 70% evidence confidence

Atlanta Electricals Ltd scores 72.9 out of 100 against the 2 companies it is compared with in Electric Equipment - Transformers, ranking 1. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 33.6 + 19.2 + 10.1 + 10 = 72.9. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Atlanta Electricals Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

🚨 400 kV Short-Circuit Test Timeline Slipped · 22 July 2026. The May 2026 call said the first transformer would be ready for short-circuit testing by the quarter-end and that testing would occur in the coming quarter. In Jul 2026, management said manufacturing of the first unit was expected to commence over the next couple of months, with testing planned for the early part of the next quarter, implying a meaningful delay to an important qualification milestone without a specific explanation for the slippage.

765 kV Technology Tie-Up Moved Beyond Prior Near-Term Target · 22 July 2026. In May 2026, management expected the 765 kV technology tie-up to close in the next couple of months. In Jul 2026, the target had moved to closure in Q2, with production planned for Q3 and further testing still pending; management cited government approvals but did not explain why the earlier target was not met.

🚨 PGCIL Approval Timeline Slippage for Unit 4 · 11 May 2026. The Nov 2025 call explicitly stated the PGCIL audit for Unit 4 (Vadodara) was scheduled for November 2025. The Jan 2026 call acknowledged a delay caused by Power Grid-side issues but committed to completing the audit within January 2026 itself, creating a clear investor expectation of imminent approval. The May 2026 call reveals the formal approval arrived only on April 2, 2026 - a further three-month gap beyond the Jan 2026 commitment - with no explanation provided for this additional delay. This is material because PGCIL approval gates large EHV tender participation, and the approval itself remains conditional on short circuit tests not yet completed as of May 2026.

🚨 Data Center Order Pipeline Narrative Downgrade · 11 May 2026. The Nov 2025 call described active and specific engagement with multiple large private developers for data center transformer supply across named geographies, language that would reasonably lead investors to anticipate near-term order conversions from a highlighted growth segment. The May 2026 call, delivered six months later, confirmed zero data center orders in the portfolio and reverted to generic exploratory language, a material regression in narrative confidence with no explanation offered for why the earlier engagements did not convert.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions