Accord Transformer & Switchgear
- Accord Transformer & Switchgear is coming out with an initial public offering (IPO) of 55,62,000 shares in a price band of Rs 43-46 per equity share.
- The issue will open on February 23, 2026 and will close on February 25, 2026.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 4.3 times of its face value on the lower side and 4.6 times on the higher side.
- Book running lead manager to the issue is GYR Capital Advisors.
- Compliance Officer for the issue is Tulsi Sharma.
Profile of the company
The company is engaged in the design, engineering, manufacturing, and supply of a diversified range of electrical power and distribution transformers, and related equipment. It caters to both standard and customised requirements of clients in the power transmission and distribution sector, renewable energy, industrial applications, infrastructure projects, and electric vehicle (EV) charging networks.
With expertise in the design, manufacture, testing, and deployment of critical power systems, the company offers a comprehensive product portfolio that includes distribution transformers, power transformers, dry-type transformers, package substations, special-purpose transformers, low-voltage (LV) control panels, medium-voltage (MV) and vacuum circuit breaker (VCB) panels, as well as busducts, cable trays, and associated switchgear assemblies.
The company operates 2 manufacturing facilities located in Bhiwadi, Rajasthan (two units), supported by its registered office in Manesar, Haryana. Its facilities are equipped with advanced machinery including plasma cutting systems, MIG and arc welding machines, shot blasting and painting booths, foil winding machines, busbar processing equipment, and comprehensive in-house testing laboratories. It follows ZED (Zero Effect, Zero Defect) manufacturing principles and maintain an Integrated Management System certified under ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018. Its quality control capabilities enable it to develop specialised solutions for renewable energy integration, industrial duty, and special applications while ensuring compliance with domestic and international standards. The company has strategically partnered with leading global technology firms to offer products and solutions aligned with global benchmarks.
Proceed is being used for:
- Funding of capital expenditure requirements of the company towards purchase of Machinery and Equipment to be used by the company
- Funding of working capital requirements
- General corporate purposes
Industry overview
India Switchgear Market is growing owning to increasing adoption of smart switchgear and rising investment in developing renewable energy along with government regulations or subsidies. The increasing energy demands across various end-user industries have led to an increased focus on renewable energy solutions that has enabled the adoption of smart switchgears in the region. Moreover, innovations in smart grid technologies and growing focus toward environmental protection have further boosted the demand for switchgear. Surging demand for safe and secure control distribution systems and advanced monitoring units is increasing the capability for switchgear.
The rapid growth in investment in renewable energy infrastructure and power generation capacities is expected to drive the India switchgear market during the forecast period. The rapid expansion of the market is attributed to the growing number of association and enterprises that are taking initiatives to invest in renewable energy sources. For instance, according to the India Brand Equity Foundation (IBEF), renewable energy for new power generation capacity attracted with investment in renewable energy in India reached around $14.5 billion in 2022, an increase of 125% over 2021 and 72% higher than in the pre-pandemic period of the 2019-20 financial year.
The growing adoption of smart Internet of Things (IoT) ready switchgears solutions are one of the key fundamental factors driving the India Switchgear market. Owing to the continuous developments in infrastructure and production facilities, enterprises are concerning more on adapting the smart power distribution products like smart switchgears. Smart switchgear enables real-time monitoring, predictive diagnostics, and precise protection against electrical faults. Moreover, many enterprises are seamlessly enabling devices to interact with building management systems, extending supervisory control and other enterprise-level utility systems to regulate power flow and achieve energy savings.
Pros and strengths
Commitment to customer delight and best-in-class service: The company is dedicated to ensuring its customers have a positive and memorable experience, going beyond just delivering products to building meaningful relationships. It prioritizes understanding its clients’ needs through open communication, responding promptly to inquiries, and offering ongoing support to create long-lasting partnerships that stand the test of time. By combining its expertise with a consistent commitment to reliable delivery and exceptional care, it consistently exceeds customer expectations, turning first-time buyers into loyal advocates. This focus on care, quality, and personalized attention builds trust, encourages repeat business, and highlights its reputation for providing excellent service, setting it apart as a company that truly values its customers and their success.
Integrated Management Systems with ISO certifications: The company’s operations are strengthened by integrated management systems aligned with globally recognized ISO certifications, including ISO 9001 (Quality), ISO 14001 (Environmental), and ISO 45001 (Occupational Health & Safety). These systems provide a framework for continuous improvement, efficient resource use, high safety standards, and environmental responsibility. Such rigorous compliance ensures consistent product quality, reduces operational risks, and improves trust with customers and regulatory bodies.
Strategic collaborations and technical partnerships: The company has strategically partnered with leading global technology firms including SGB-SMIT GmbH, Lucy Electric India Private Limited, and Schneider Electric India Private Limited. These collaborations facilitate engagement in discussions and exploration of cooperation in advanced transformer technologies, aiming to strengthen technological exchange, innovation, and market competitiveness through the sharing of expertise and resources. The scope includes areas like liquid-filled transformer technology, power transformer technology, and compact substation technology. This partnership enhances technical know-how, improves product offerings, and supports the delivery of efficient, reliable, and sustainable transformer solutions to meet the growing demands of modern power infrastructure.
Risks and concerns
Dependence on limited number of customers: A substantial portion of its revenues is attributable to a limited number of customers. Its top ten customers contributed 66.74%, 84.16%, 71.32% and 89.09% of its revenue from operations for the period as at December 31, 2025 and fiscal years ended March 31, 2025, 2024 and 2023, respectively and its top five customers contributed 48.10%, 73.62%, 58.29% and 79.60% of its revenue from operations for the for the period as at December 31, 2025 and Fiscal Years ended March 31, 2025, 2024 and 2023, respectively. As it conducts business with these customers primarily on a purchase order basis, without long-term contractual commitments, there can be no assurance that such customers will continue to place orders with the company in the future. A significant portion of its revenues is derived from a limited number of customers, and the loss of one or more such customers may adversely affect its business, cash flows, results of operations and financial condition.
Rely on third-party transportation service: The company relies on third-party transportation services for its logistics needs. Its operations depend significantly on third-party transportation services to facilitate the timely delivery of raw materials to its manufacturing facilities and finished products to its clients. These external logistics providers are critical to maintaining efficient supply chain operations and meeting customer expectations. However, disruptions such as delays, Labor disputes, fuel shortages, regulatory changes, or operational failures by these third-party providers could interrupt its supply chain, hinder production schedules, and delay product deliveries, thereby affecting its ability to fulfill customer orders promptly. Any disruptions in these services could negatively impact its operations, business, and financial condition.
Working capital requirements: Its operations demand significant working capital to support ongoing activities, including procurement of raw materials, production processes, and timely fulfillment of customer orders. Insufficient working capital, whether due to cash flow constraints, delayed receivables, or unexpected financial obligations, could limit its ability to maintain operational efficiency, meet production demands, and pursue growth opportunities. Such limitations may lead to production delays, missed contractual commitments, and reduced customer satisfaction, ultimately impacting its revenue and profitability.
Outlook
Accord Transformer & Switchgear is engaged in the business of manufacture of wide range of Transformers & other electrical & customised power products and after sales support with multiple locations of marketing and service centres. With expertise in the design, manufacture, testing, and deployment of critical power systems, the company offers a comprehensive product portfolio that includes distribution transformers, power transformers, dry-type transformers, package substations, special-purpose transformers, low-voltage (LV) control panels, medium-voltage (MV) and vacuum circuit breaker (VCB) panels, as well as busducts, cable trays, and associated switchgear assemblies. On the concern side, its business is dependent on the performance and growth of the power generation, transmission and distribution sector, and any slowdown or adverse development in this sector may affect its business, financial condition and results of operations. Additionally. its business and financial condition are dependent on its ability to secure new purchase orders and contracts, and any inability to do so may adversely affect its operations, revenues and cash flows.
The company is coming out with a maiden IPO of 55,62,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 43-46 per equity share. The aggregate size of the offer is around Rs 23.92 crore to Rs 25.59 crore based on lower and upper price band respectively. On performance front, the revenue from operations of the company for fiscal year 2025 was Rs 79.02 crore against Rs 48.54 crore for Fiscal year 2024. An increase of 62.79% in revenue from operations. Profit after tax for the Fiscal 2025 were at Rs 6.05 crore against profit after tax of Rs 1.61 crore in fiscal 2024, An Increase of 275.78%
Meanwhile, the company is committed to adopting Industry 4.0 principles by integrating automation and digital technologies into its manufacturing processes. This includes implementing automated material handling, process monitoring systems, and data-driven inventory management practices. By enhancing operational efficiency, reducing production lead times, and minimizing human errors, it aims to deliver higher quality products faster and more cost-effectively. These digitalization efforts not only improve internal productivity but also provide a scalable foundation for future growth in line with global manufacturing trends.
