Danish Power Ltd. (DANISH)
SME CapPower stocks · SME cap · NSE
Danish Power Ltd. manufactures transformers, including inverter duty, dry-type, and power transformers, and operates a Panel and Automation division. The company recently expanded capacity to 11,000 MVA annually and is focusing on higher voltage transformers, battery energy storage applications, and exports, with 90% of revenues from the private sector.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 30/100YoY data unavailable — classification deferred
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹310 Cr | NDF | +46.2% |
| EBITDA | ₹55 Cr | +7.8% | +48.6% |
| Operating margin | 18.0% | -200 bps | +0 bps |
| PAT | ₹40 Cr | NDF | +37.9% |
| PAT margin | 12.9% | -46 bps | -78 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
FY26 Revenue up 22% YoY to INR521 Cr, PAT up 26% YoY to INR69 Cr, driven by execution and expanded capacity. EBITDA margins maintained at ~19% despite ramp-up costs.
Danish Power delivered strong FY26 results, maintaining margins amidst capacity expansion and external volatility. The company's strategic focus on high-growth segments like BESS and power transformers, coupled with backward integration and a disciplined order approach, positions it well. However, Q1 FY27 margins face pressure from commodity price hikes and geopolitical tensions.
Power Transformer Division
New facility activates power transformer division, upgrading capabilities to manufacture transformers up to 100 MVA and 245 KV voltage class. Expect meaningful revenue contribution from FY28.
Battery Energy Storage Systems (BESS)
Already supplying transformers for BESS applications, identified as one of the most upcoming, high-demand growth segments both in India and internationally. BESS projects contribute 20-25% of current order book.
Dry-Type Transformers for Data Centers
Demand is rising across data centers; company is building capacities and certification pathways to increase this segment.
Exports
Export revenue jumped to 8-9% in FY26. Focus remains on profitable export growth, targeting 15-20% of revenues in FY27 by leveraging new capacity and long-term agreements.
Transformer Manufacturing Capacity
Both phases of capacity expansion planned post-IPO are fully commissioned and operational, increasing capacity to approximately 11,000 MVA annually.
Power Transformer Capabilities
New facility enables manufacturing of power transformers up to 100 MVA and 245 KV voltage class. Prototype development and type testing have commenced.
Backward Integration Facility
Sheet metal fabrication facility with a capital outlay of approximately INR20+ crores is expected to be commissioned in the next three to four months.
Land for Future Expansion
Proactively acquired land close to existing facilities to be prepared for the next phase of expansion, with potential to increase capacity by 80% to 100%.
Strong Indian Electrical Infrastructure Demand
Grid modernization, renewable energy build-out, rapid expansion of data centers, and broader rise in per capita electricity consumption are structural demand drivers for 5-7+ years.
Healthy Underlying Industry Demand
Despite external disruptions, the underlying demand environment for the industry remains extremely healthy, with strong inquiry inflow even amidst geopolitical tensions.
Diversified Order Mix
Order mix is becoming more diversified with contributions from battery storage, export products, and power transfer opportunities alongside inverter duty transformers.
Global Operating Environment Volatility
Rising geopolitical tensions, supply chain issues, logistics disruptions, and fluctuations in key commodity prices (transformer oil, aluminum, copper) create uncertainty.
Commodity Price Fluctuations
Transformer oil, in particular, has seen a 100%+ rise. Difficulty in purchasing materials like transformer oil far in advance impacts margins on existing firm-priced orders.
Q1 FY27 Margin Pressure
The ongoing war impact will affect Q1 FY27 margins, especially for older, firm-priced orders, despite active discussions with clients for mitigation.
Raw Material Price Volatility
Abnormal rise in transformer oil prices and fluctuations in aluminum and copper can impact profitability, especially for fixed-price orders.
Geopolitical Tensions
Global operating environment volatility due to geopolitical tensions can lead to supply chain disruptions and increased costs.
Competitive Intensity
Competition in the IDT transformer segment is increasing as other manufacturers enter, potentially impacting margins, though the company relies on customer quality and reliability.
Execution and Qualification for New Segments
Power transformer segment has high entry barriers with extensive testing and validation. Real revenue from higher voltage power transformers is expected only from FY28.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company explicitly reports FY26 revenue and PAT growth on a year-on-year basis. Management also states the business is structurally H2 heavy, making YoY comparisons more appropriate for assessing overall performance trends.
Annual Transformer Manufacturing Capacity
Transformer manufacturing capacity increased to approximately 11,000 MVA on an annual basis.
FY26 Capacity Utilization
Considering phase one expansion live mid-year, utilization was roughly 80% for FY26. Phase two came live only after January, impacting full-year utilization.
Confirmed Order Book
Confirmed order book stands at over INR500 crores, compared to about INR450 crores at the time of the last call. Deliveries are spread over the next six to nine months.
FY26 Consolidated Revenue
For FY26, the company delivered a consolidated revenue of INR521 crores, with a growth of approximately 22% on a year-on-year basis.
FY27 Revenue Guidance
Based on current order visibility, capacity ramp-up, and market outlook, FY27 revenue is expected to be more than INR700 crores.
EBITDA Margin Sustainability
Committed to sustaining EBITDA margins in the range of 19%, which remains a key focus. Long-term objective is margin improvement.
Next Phase of Expansion Decision
A decision on the next level of expansion, leveraging the acquired land, is expected within the next three months. Construction could take 12-18 months.
Diversification and Reliability
Vision is to stay in manufacturing, diversify product expertise, and be known as one of the most reliable and good manufacturers across all product lines.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Capacity Utilization | Roughly 80% for FY26 (considering phased capacity ramp-up). | Ramp-up to optimum utilization, especially in H2 FY27 and beyond, to achieve FY27 target of 7,000-8,000 MVA and FY28 target of >10,000 MVA. |
| Power Transformer Segment Progress | Prototype development and type testing commenced for up to 100 MVA, 245 KV transformers. | Formal customer qualifications and initial order closures throughout FY27, leading to meaningful revenue contribution from FY28. |
| Export Revenue Share | 8-9% of FY26 revenue. | Achievement of the target of 15-20% of revenues in FY27, indicating successful leveraging of new capacity and international agreements. |
| Q1 FY27 Margin Impact | Older, firm-priced orders are under pressure due to commodity price hikes (e.g., 100%+ rise in transformer oil). | Clarity on the extent of margin pressure in Q1 FY27 and the effectiveness of mitigation strategies with clients, as new orders are priced to reflect current costs. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
54NeutralSMA20 -4.3% / mo · MACD +
Technical chart
DANISHdaily · 1Y · AUTO+31.6%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 57. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~4.5% over last month) — short-term momentum negative.
- RSI(14) at 57 — falling, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 22% off 52W high · 55% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 50 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 50 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Growth contributes 19/25 to the score.
- Balance sheet contributes 11/15 to the score.
Main drags
- Valuation is weaker at 2/30; verify the latest quarterly trend.
- Cash flow is weaker at 1/10; verify the latest quarterly trend.
- Quality is weaker at 12/20; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -3 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 72nd percentile of the scored universe and 83rd percentile within Power. Main check: cash conversion is weak at 43/100.
Healthy Trust Lite: Promoter holding is 73.6%. Key concern: Only 1 years of positive FCF.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Power: 83rd pctile, median 65 · SME: 90th pctile, median 64
3 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 73.6%.
- ▸Promoter pledge is zero.
- ▸Debt/equity is 0.00.
- ▸ROCE is 23.4%.
Trust risks
- ▸Only 1 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 24.40
- P/B
- 3.65
- EV/EBITDA
- 17.01
- Market Cap
- 1682.00Cr
Profitability
- ROE
- 17.70%
- ROCE
- 23.40%
- ROA
- 11.98%
- Dividend Y
- 0.23%
Growth (CAGR)
- Revenue 5Y
- 25.27%
- EPS 5Y
- 34.75%
- Revenue 3Y
- 24.00%
- EPS 3Y
- 24.00%
Balance Sheet
- Debt/Equity
- 0.00
- Interest Coverage
- 46.00×
- Altman Z
- 8.79
- Book Value
- 234.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 1/5
- OCF
- 42.00 Cr
- EPS TTM
- 35.03
Shareholding
- Promoter Hold
- 73.62%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 56%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Power, ranked by similarity
Peers
Business-comparable names in Power, ranked by similarity
Peers
Business-comparable peers in Power — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.