Supreme Power Equipment Limited (SPEL) is a Tamil Nadu-based manufacturer of power and distribution transformers with three decades of industry experience. The company has supplied over 19,000 + units across India and abroad, serves utilities, renewables, and industrial clients, and is now expanding capacity to 9,000 MVA to capture larger opportunities

Mr. Vee Rajmohan, Chairman and Managing Director, has dedicated his career to mastering transformer design, manufacturing, and compliance. Under his leadership, SPEL has grown from a small partnership firm into a listed company with a strong order book, diversified markets, and a reputation for quality

1. Mr. Rajmohan, how would you describe Supreme Power’s journey so far?

Our journey started in 1994 as a small partnership firm. Over three decades, we’ve built a trusted brand in transformers by focusing on quality, reliability, and customer satisfaction. Today, we have supplied over 19,000+ units, entered multiple new markets, and are gearing up for the next phase of growth with expanded capacity.

2. What recent milestones make you most proud?

The ₹60.9 Cr order from NLC India Limited is the largest in our history and a proud milestone. We also secured our first orders from Karnataka and Kerala. These milestones highlight both our technical credibility and expanding footprint.

3. Your Q1 FY26 results were strong. What drove this growth?

We achieved 27.8% growth in income and 31% growth in net profit, supported by efficient execution, higher demand for renewables, and repeat orders from utilities. Strong order inflows worth ₹106 Cr in Q1 also gave us momentum for the rest of the year.

4. Could you talk about the strength of your current order book?

As of Sept. 2025, our consolidated order book stands at ~₹230Cr.+ About 60–70% of this will be executed within this year, giving us strong revenue visibility. Importantly, this includes new state utilities, renewable projects, and industrial clients, making it more diversified.

5. How are you balancing government and private sector orders?

In FY25, about 74% of revenues came from private clients. We see value in maintaining a 50:50 to 60:40 mix between private and government. Private orders give better cash flows, while government orders offer scale and long-term credibility.

6. What role is renewable energy playing in your business today?

Renewables, especially solar, now contribute ~40% of our order inflows. We are supplying inverter duty transformers and large pooling substation units that are critical for solar parks. With India’s renewable targets, this share will only rise further.

7. Tell us about your capacity expansion. What does it mean for growth?

We are investing ₹80–85 Cr in a new 6-acre facility. Capacity will jump from 2,500 MVA to 9,000 MVA, enabling us to manufacture larger 160 MVA transformers. Once fully utilized, this plant alone can generate ₹500–600 Cr revenue potential within the next 2–3 years.

8. How soon do you expect this new facility to be operational?

Construction is 90% complete, and commissioning is expected by December 2025. Machinery installation is underway. Once approvals from big buyers like PGCIL and NTPC are in place, we expect strong order inflows linked to the new capacity.

9. What efficiency gains will this expansion bring?

The new facility allows us to move into higher voltage and higher capacity transformers where fewer players compete. This gives us a chance to improve margins by 1–2% and expand into projects that were earlier beyond our capability.

10. Investors are keen on exports. What’s your plan there?

We are actively exploring markets in Saudi Arabia and the UK. Export margins are usually better than domestic, so we see this as an important growth lever.

11. What is your revenue outlook for FY26?

We are confident of crossing ₹200 Cr this year. With the expanded capacity coming online in Q4, we should see incremental contribution, and in the medium term, we’re targeting ₹500–600 Cr once utilization stabilizes.

12. How do you manage working capital needs given long execution cycles?

Our receivable cycle averages 100–120 days, which is manageable. With most private clients paying faster and larger government orders spread over long durations, we balance cash flows effectively. Currently, we don’t see working capital as a constraint.

13. What risks do you see in the business environment?

Key risks include execution delays in government projects, raw material price fluctuations, and competition in tenders. But we mitigate these by maintaining a diversified client mix, focusing on higher-value transformers, and strong vendor relationships.

14. How do you ensure quality and reliability in your products?

We follow stringent testing protocols in-house and are building additional test facilities at the new plant. We are also working toward certifications and approvals from CPRI, PGCIL, and leading MNCs, which are essential for larger capacity projects.

15. What role does your subsidiary Danya Electric play?

Danya Electric, in which we own 90%, focuses mainly on utility transformers and smaller capacity units. It complements our portfolio and gives us additional eligibility in state-level tenders, which helps capture more opportunities.

16. Could you share about your proposed fundraise and its use?

We are raising ₹21 Cr through preferential warrants, with 36% subscribed by me and 64% by external investors. The funds will go into machinery, software systems, and infrastructure to support our capacity expansion and strengthen the balance sheet.

17. How do you see industry demand over the next 5–7 years?

We believe the demand environment is very strong. India’s push for renewables, data centers, and grid upgrades will keep transformer demand elevated for at least 5–8 years, with 10–15% annual growth potential.

18. Finally, what is your long-term vision for Supreme Power?

Our vision is to be among the top transformer companies in India, known for quality and reliability, while steadily growing exports. By combining innovation, capacity expansion, and strong governance, we want to build a ₹500–600 Cr company that supports India’s energy transition.