Behind Every Transformer Lies This Hidden Giant
The overlooked building block driving the transformer industry’s expansion.
Founded in 1996 as a proprietary firm and converted into a private limited company in 2006, Vilas Transcore Limited has emerged as a leading manufacturer and supplier of power transmission and distribution components. The company primarily serves transformer and other power equipment manufacturers in India and internationally, offering critical components such as CRGO laminations, cores, slit coils, wound cores, and toroidal cores, which are essential for efficient transformer operation.
The power transmission and distribution industry in India is witnessing rapid growth, driven by increasing electricity demand, expansion of the renewable energy sector, and government initiatives such as grid modernization and rural electrification. Global trends in electrification, renewable integration, and the rising adoption of electric vehicles are further expanding the demand for high-quality transformer components. In this context, Vilas Transcore is positioning itself at the forefront of next-generation power technologies and energy infrastructure.
The company has consistently demonstrated operational excellence and efficiency, reflected in strong and sustained customer demand. With the recent expansion of production capacities, Vilas Transcore is fully prepared to scale up operations seamlessly to meet growing domestic and international demand. Supported by a robust order book, strategic capacity expansions, and a focus on quality and innovation, the company is well-positioned to capitalize on both current market opportunities and emerging trends in the global power equipment sector.
Manufacturing Infrastructure, New Plant Capacity, and Production Targets
Vilas Transcore operates two ISO 9001:2015 certified facilities in Por, near Vadodara, Gujarat. Initially, these facilities had a combined capacity of 12,000 metric tons per annum. As part of its growth strategy, the company has expanded total installed capacity to 36,000 metric tons per annum to strengthen market presence, meet rising demand, and improve operational efficiency in producing CRGO laminations and transformer cores.
A key part of this expansion is a new plant with an annual capacity of 24,000 metric tons. For the current financial year(FY26), the company plans to utilize 50% of this new plant (12,000 metric tons), with the existing plant contributing another 12,000 metric tons, bringing the total production target to 24,000 metric tons. The new plant is expected to reach full capacity in the next financial year, producing 24,000 metric tons on its own. This phased approach ensures smooth operational stabilization while effectively meeting market demand.
Business Segments
1. CRGO
CRGO (Cold Rolled Grain Oriented) steel, essential for transformers due to its superior magnetic properties, is produced in various forms including Mother Coil, Slit Coil, Cut Lamination, Core Assembly, Toroidal Core, Wound Core, and Miniature Core. Production is targeted at 1,000 MT per month, totaling 12,000 MT this financial year. Despite trade tensions, supply from China remains stable via BIS-approved mills, and alternative supplier ties have been strengthened to ensure continuity.
New Product – Nanocrystalline Core
Nanocrystalline cores, known for high energy efficiency and compact design, are used in EV chargers, renewable energy systems, high-frequency transformers, and energy meters. The segment will be fully operational from July 2025, projected to contribute ~INR 50 crores with 25% EBITDA. The new plant reduces reliance on imports from China while leveraging Chinese technology for trial production and innovation.
2. Amorphous Core
A high-performance core for efficient transformers and solar inverters. It reduces energy loss, controls heat, and works well across a wide temperature range (-50°C to 130°C). Recently launched with BIS approval, with confirmed orders from Gujarat, South, and North India, with a full order book for the next 2–3 months.
3. Radiators
Radiators are critical components in transformers, responsible for heat dissipation and maintaining optimal operating temperatures. Vilas Transcore’s radiator manufacturing became fully operational from July 2025, with an installed capacity of 7,200 metric tons per annum (600 metric tons per month). For the current financial year, the company targets production of approximately 3,600 metric tons, averaging 300 metric tons per month. The plant is designed as a 100% export-oriented unit, with no focus on domestic sales planned for the next 1–2 years.
The radiator segment is expected to contribute a top line of around INR 35–36 crores in the current financial year. Currently, the Indian radiator market is largely unorganized, with only 2–3 major players focusing primarily on exports. Radiators constitute approximately 2–3% of transformer cost. Through this plant, Vilas Transcore aims to establish itself as an organized, standard radiator manufacturer, catering to both current and future demand, particularly in international markets.
Capex
The total capital expenditure for the project is estimated at approximately INR 90 crores. As of 31st March, around INR 50 crores has been spent, with the remaining expenditure expected to be incurred over the next quarter (April–June), as the project reaches its final stages. This phased allocation ensures that the project is funded efficiently while maintaining cash flow discipline.
Order Book and Segment Contribution
Vilas Transcore supplies laminations to a wide range of transformer manufacturers. Currently, 60–80% of its order book is concentrated in power transformers and solar inverter-duty transformers, reflecting significant exposure to both the industrial and renewable energy segments. This diversified segment contribution underscores the company’s alignment with growing demand trends in power infrastructure and renewable energy, providing a stable revenue base and potential for targeted growth in high-demand segments.
Global Exposure
Vilas Transcore initiated its export operations last year, contributing approximately 2% of total revenue. Current exports are concentrated in Europe and Gulf countries, with no presence in the U.S. market to date. For the current financial year, the company expects exports to contribute 2–3% of total revenue, corresponding to a volume of approximately 22,000–24,000 metric tons.
The international market presents significant competition, primarily from Chinese manufacturers, which makes forecasting and securing export bids challenging. Consequently, the company adopts a cautious approach toward the export segment. However, with the commencement of operations at the new plant, Vilas Transcore plans to expand into the Canada and U.S. markets. The company aims to prioritize markets offering better margins, gradually increasing export volumes while continuing to compete effectively in Europe and Gulf regions. This measured global expansion strategy allows the company to build international presence without compromising domestic growth and operational stability.
Financial Outlook
Financial Targets, Growth Drivers, and Expansion Plans
Vilas Transcore is targeting a turnover of INR 600 crores in FY26, with the first half expected to deliver around INR 250–300 crores. Any shortfall in the first half is anticipated to be made up in the second half to meet the full-year target. Looking ahead, the company aims for INR 1,000 crores in FY27, reflecting an ambitious growth trajectory.
This growth is supported by multiple factors. Expansions at 2–3 existing customers’ manufacturing facilities are expected to boost demand, while the addition of 2 new customers could contribute 300–400 metric tons. Another 400–500 tons is projected to come from overall industry growth, rather than capturing competitor share, indicating a rising demand in the CRGO segment. Currently, Vilas Transcore holds about 3% market share in CRGO, with plans to increase this to 5–6% through a forecasted production of 24,000 metric tons.
Beyond FY27, the company expects a 30–40% CAGR, driven by scaling existing products and launching 1–2 new products under development. In addition to volume growth, Vilas Transcore is strategically expanding its lamination capabilities to cater to higher voltage classes, aligning with the evolving needs of the transmission sector. Starting post-July, the company will seek PGCIL approval for the 220 kV class, validating its technical capabilities. Once approved, a phased expansion to 400 kV and eventually 765 kV classes is planned, ensuring regulatory compliance while opening doors to higher-value transmission projects.
This structured approach positions Vilas Transcore for sustainable growth, enhanced market share, and stronger presence in high-value segments of the CRGO industry.
Key strengths and Risks
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Disclosure
This article is for educational purposes only and does not constitute investment advice. Readers should consult a SEBI-registered advisor before making investment decisions.
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As mentioned in its conference call, the Radiators market is local, and India does not import any Radiators. With a lot of radiator manufacturers in India, any thought of how easy for this company to build the radiator business?