Bharat Bijlee Strengthens Growth Trajectory with 400 kV Transformer Milestone and Expansion Drive

Bharat Bijlee Strengthens Growth Trajectory with 400 kV Transformer Milestone and Expansion Drive

- Bharat Bijlee Strengthens Market Position with 24% Transformer Growth and 37% Rise in Projects Business

The Electrical Post

Against the backdrop of rising geopolitical tensions, supply chain disruptions and evolving global trade dynamics, Bharat Bijlee Limited continued to strengthen its position across transformers, motors, projects and industrial technologies during FY 2025-26.

Bharat Bijlee is a pioneer in electrical engineering in India, and one of the most trusted names in the industry today. Established in 1946, the company has two primary business segments: Power Systems that comprise Transformers and Projects divisions, and Industrial Systems segment comprising Electric Motors, Drives & Industrial Automation and Magnet Technology Machines divisions.

In his annual review, Shome Danani, Executive Director of Bharat Bijlee Ltd, highlighted that while the global economy is entering a phase of "weak but stable" growth, India remains one of the fastest-growing major economies, with growth projections ranging between 6.4% and 7.4%.

The company delivered robust performance across several business verticals despite persistent challenges stemming from geo-economic confrontations, inflationary pressures and material cost volatility.

The Transformer business emerged as a key growth driver, recording a 24% increase in topline over the previous year. Bharat Bijlee also reported a 40% rise in its unexecuted order book while achieving its highest-ever production and dispatch levels. The company is currently undertaking a major expansion programme that is targeted for completion before the end of the current year.

A significant milestone for the company was the successful design, manufacture, testing, supply and commissioning of its first 400 kV transformer. Following this achievement, the company has secured multiple additional orders in the segment and intends to further strengthen its market position across the entire transformer portfolio.

The division also secured its first order for ester oil transformers from a prestigious customer, marking an important step towards broadening its product offerings. However, supply chain challenges and raw material price volatility continued to impact profitability, prompting the company to implement systems aimed at mitigating these pressures.

Bharat Bijlee's Motor division reported a growth of 12.5% in value terms during the fiscal year. The medium voltage motors and railway businesses delivered exceptional performance, registering growth exceeding 100%.

The company achieved record dispatches, production and billing during FY26 and secured a notable traction motor order from Indian Railways, which management believes could open up further opportunities in the future.

Demand from the ethanol industry also remained strong, enabling Bharat Bijlee to capture a significant market share in motors supplied for ethanol plant applications.

The company launched its IE4 range of induction motors during the year and is actively expanding its presence in this segment. Another strategic focus area has been HVAC applications, where the product portfolio has expanded considerably and is expected to soon cover the full market spectrum.

Despite strong business momentum, margins remained under pressure due to intense competition and challenges in passing on elevated raw material costs to customers. The company expects benefits from its ongoing design optimization initiatives to become visible in the near term.

The Projects business delivered one of the strongest performances within the company, registering 37% year-on-year growth. Bharat Bijlee emphasized its ability to execute projects on schedule and within budget, leading to repeat business from leading industry players.

Management believes the next growth phase will be driven by larger project opportunities, particularly in the 400 kV segment, a market that the company intends to actively target going forward.

Growth in the Drives and Automation division remained largely flat during the year. However, Bharat Bijlee is continuing efforts to localize drive component manufacturing, which is expected to provide long-term benefits.

The division faced margin pressures due to a nearly 17% appreciation in the Euro, which adversely impacted costs. While plastics continue to be the primary market segment, the company is pursuing opportunities in emerging sectors such as metals, printing and packaging.

Its growing presence in the e-mobility segment remains encouraging, with multiple projects currently under execution. Bharat Bijlee plans to leverage localization initiatives and incentives under the Production Linked Incentive (PLI) scheme to improve cost competitiveness and enhance customer value.

The Magnet Technology Machines division recorded growth of around 3% during FY26 despite disruptions caused by global trade tensions and supply constraints for specific magnet grades. Nevertheless, the company expanded its reach in the domestic gearless machine market and expects higher volumes in the coming years.

Supply chain optimization initiatives and improved inventory management practices also contributed positively to operational performance.

Commenting on the broader economic outlook, Danani observed that geopolitical instability, inflationary trends, currency fluctuations and trade-related uncertainties are likely to continue influencing global markets. While the United States economy has remained resilient, Europe has lagged and growth in China has remained subdued.

For India, although inflation has largely remained under control and interest rates have been stable, higher energy costs and supply chain disruptions continue to weigh on economic activity. He emphasized the need for stronger private sector-led investment and further improvements in ease of doing business to sustain long-term growth.

Despite a challenging near-term outlook for corporate India, Bharat Bijlee remains optimistic and continues to focus on expansion, technology development and market diversification as it prepares for its next phase of growth.
 

Published at : Sep 21, 2026 12:32 PM (IST)

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