Alfa Transformers Ltd reported a net loss of ₹1.59 crore for FY26, a reversal from the previous year's profit. The company is selling its loss-making Vadodara unit for ₹18 crore to ease working capital constraints.
Alfa Transformers Reports FY26 Loss, Sells Vadodara Unit for ₹18 Crore
Alfa Transformers Ltd has reported a net loss of ₹1.59 crore for the financial year 2025-26, a significant downturn from a profit of ₹1.01 crore in FY 2024-25. This shift is primarily driven by operational challenges at its Vadodara unit.
Reader Takeaway: Sale of Vadodara unit aims to resolve liquidity; Bhubaneswar unit remains profitable.
What just happened
Alfa Transformers Ltd posted a loss after tax of ₹1.59 crore for the financial year 2025-26. Revenue from operations decreased to ₹31.87 crore from ₹50.21 crore in the previous year. The company's Earnings Per Share (EPS) also turned negative at ₹(1.75) from ₹1.11.
Why this matters
The financial setback highlights significant operational issues, particularly at the Vadodara unit, which incurred a loss of ₹2.72 crore in FY26. To address severe working capital constraints impacting order execution, the board has approved selling the Vadodara unit to Kasst Industries Limited for ₹18 crore. This move is crucial for stabilizing operations and securing liquidity.
The backstory
The Vadodara unit, which was profitable with ₹0.80 crore in FY25, faced operational glitches and a lack of orders in the current fiscal, leading to its substantial loss. In contrast, the Bhubaneswar unit continued to be a strong performer, contributing ₹22.25 crore in turnover and ₹1.13 crore in profit after tax.
What changes now
The sale of the Vadodara unit is expected to provide ₹18 crore in cash and debt-free consideration. This infusion is intended to alleviate working capital stress, as the company requires approximately ₹15 crore to maintain production levels. The company is also changing its auditors, with M/s. Goutam & Co replacing M/s. PAMS & Associates as statutory auditors.
Risks to watch
Key risks include the company's ability to effectively utilize the sale proceeds to address its ₹15 crore working capital requirement and whether the Bhubaneswar unit can maintain its performance amidst overall operational streamlining.
Peer comparison
(No specific peer data was provided in the filing for comparison.)
Context metrics (time-bound)
- FY 2025-26: Revenue from Operations ₹31.87 crore; Loss after Tax ₹1.59 crore; EPS ₹(1.75).
- FY 2024-25: Revenue from Operations ₹50.21 crore; Profit after Tax ₹1.01 crore; EPS ₹1.11.
- Vadodara Unit FY26 Loss: ₹2.72 crore.
- Bhubaneswar Unit FY26 Profit: ₹1.13 crore.
- Vadodara Unit Sale: ₹18 crore.
What to track next
Investors should monitor the utilization of funds from the Vadodara unit sale, the impact on the company's working capital position, and the continued performance of the Bhubaneswar unit.