About Danish Power
Incorporated in 1985, Danish Power manufactures power, distribution and inverter duty transformers, control relay panels, and provides substation automation services. Its manufacturing facilities are in Jaipur, Rajasthan. The report lists installed transformer capacity of 4,681 MVA and control relay panel capacity of 576 units. The company serves domestic and export customers and has a presence in 33+ countries; transformers, particularly inverter duty products for renewable energy, are its main revenue driver.
Investment Rationale
- Planned capacity expansion: Transformer capacity increased by 2,500 MVA on 03-Sep’25. A further 3,000 MVA is expected to become operational by Dec’25, taking manufacturing capacity to 10,181 MVA as stated on page 2 and enabling entry into the Extra High Voltage segment up to 245 kV.
- Order visibility: The report cites an order book of 550+ in its peer comparison table, with further order wins after the IPO. It also lists orders from ACME Solar Holdings for INR 52.0 Cr. and Waaree Renewable for INR 99.7 Cr., with execution periods of 6 to 12 months and 8 months, respectively.
- Renewable energy exposure: Inverter duty transformers are the leading contributor within the transformer business. The report notes a track record of powering 12 GW of solar projects and says the company was the first to receive a BIS License for Ester (Biodegradable Fluid) Filled Distribution Transformers in 2022.
- High FY25 utilisation: Transformer capacity utilisation reached 96.0% in FY25, compared with 81.3% in FY24. Production rose to 4,494 MVA from 3,807 MVA over the same period.
- Sector demand: The report says India’s power and distribution transformer market was valued at $4.5 Bn. in 2025 and projected to reach $ 6.37 Bn. by 2031, with a stated CAGR of 5.81% during 2026-2031.
- Credit rating upgrade: CRISIL upgraded the rating to CRISIL BBB+/Positive from CRISIL BBB/Positive on 02-Apr’25 for INR 98 Cr. of working capital facilities.
Danish Power Key Financials
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenues | 189 | 332 | 427 |
| % Y-o-Y | 27.0% | 76.2% | 28.3% |
| Gross Mar % | 20.0% | 25.9% | 29.3% |
| EBITDA % | 8.6% | 16.8% | 19.4% |
| PAT % | 4.5% | 11.4% | 13.3% |
| CFO/EBITDA | 179% | 46% | (23%) |
| Debt/Equity | 0.31x | 0.16x | 0.01x |
| NWC (Days) | 58 | 67 | 124 |
Revenue and reported margins increased across the periods shown. The report projects FY26 operating revenues of INR 560 Cr., or 31% Y-o-Y growth, based on the RHP and current order book.
Valuation and Target Price
The report lists a CMP of INR 842.50 and a price at recommendation of INR 808.50/-. It does not provide a target price, upside or an explicit Buy, Hold, Reduce or Sell recommendation. It cites FY26 operating revenues of INR 560 Cr. and estimated peak revenue potential of ~INR 890 Cr. at 10,181 MVA of capacity, based on 11.45 MVA required to generate 1 Cr. of sales.
- INR 842.50
- CMP
- INR 808.50/-
- Price at Reco.
- 28.8x
- PE Ratio
Key Risks
- Working capital requirements: The company indicates its NWC cycle could increase to 120 to 130 days as revenues rise and the receivables cycle shifts to ~90 days. The report attributes this change to the company outgrowing MSME status, under which it was eligible to receive payments in 45 to 50 days.
- Capacity execution: Operationalisation of the additional 3,000 MVA of capacity by end of Dec’25 remains a key monitorable.
Business and Operations
The company has three segments: transformers; panels and automation, including substations; and other services. The report identifies transformers as the primary revenue driver. It also expects control relay panels and the substation vertical to grow year on year on the back of sustained demand.
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Installed Capacity (MVA) | 2,705 | 4,681 | 4,681 |
| Production (MVA) | 1,953 | 3,807 | 4,494 |
| Utilization % | 72.2% | 81.3% | 96.0% |
| Transformer Rev. (INR Cr.) | 164.2 | 301.3 | 392.3 |
| MVA per Cr. of Sales | 11.90 | 12.64 | 11.45 |
Additional investment: On 8-Aug’25, the board approved an investment of INR 10 Cr. in wholly owned subsidiary Danish Transformer India Pvt. Ltd. to establish a sheet metal fabrication facility.
Industry Outlook
The note points to renewable energy, battery storage and related infrastructure as sources of demand for power equipment. As of Jun’25, India’s power sector had total installed capacity of 476 GW, with 250 GW of new power capacity expected to be added over the next 5 years, focused on those areas. The report also refers to management commentary from TARIL and Shilchar Technologies as indicating a strong industry outlook and an active order inquiry pipeline.
Management
The company was started by Mr. Dinesh Talwar and Mrs. Shashi Talwar. Mr. Shivam Talwar, a second-generation entrepreneur, is Managing Director; his time with the company began in 2007. The report also notes the board experience of its non-executive directors, including prior board roles in banking and finance, public service and a management role at Rajesh Motors, Jaipur.
Our View
The report’s growth case rests on transformer demand, a strong order pipeline and planned capacity expansion, alongside projected FY26 operating revenues of INR 560 Cr. The key execution questions are whether the additional capacity is operational by end of Dec’25 and how higher revenues affect working capital. No formal stock recommendation or target price is stated.