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Business Overview:

YASHHV is India's only listed pure-play transformer bushing manufacturer, specialising in high-voltage condenser-graded Oil Impregnated Paper (OIP) and Resin Impregnated Paper (RIP) bushings used in power transformers. The company serves utilities, EPC players and transformer OEMs across 60+ countries, supported by vendor approvals from major customers including NTPC, PGCIL and BHEL. With over 45,000 bushings installed globally and a growing focus on RIP technology, YASHHV is well-positioned to benefit from the ongoing transmission and power infrastructure investment cycle in India and overseas. The company is also undertaking a greenfield expansion with backward integration into RIP core manufacturing, strengthening its competitive positioning and profitability profile.

How is YASHHV well-positioned to benefit from the power transmission capex supercycle?

India is undertaking its largest-ever power infrastructure expansion, with the National Electricity Plan targeting addition of 1,274 GVA of transformation capacity and 191,474 circuit kilometres of transmission lines by FY32. Every high-voltage transformer deployed across this network requires minimum 7 bushings, creating a direct demand linkage for transformer bushing manufacturers. As a pure-play player with established utility approvals and strong relationships across OEMs and utilities, YASHHV is strategically positioned to participate in this longterm structural demand opportunity.

How will backward integration and capacity expansion support growth and margin?

YASHHV is investing INR 1,530 Mn in a greenfield facility, which will add approximately 6,000 units of annual capacity while enabling backward integration into RIP condenser core manufacturing. The project is expected to reduce dependence on imports, improve cost-efficiency, strengthen export competitiveness and enhance margin profile. After expansion, the total manufacturing capacity is expected to increase to approximately 15,000 units annually, supporting the management's long-term revenue growth aspiration of ~40% revenue CAGR over the next four to five years.

What gives YASHHV a sustainable competitive advantage in transformer bushings?

Transformer bushings represent one of the most specialised and qualification-intensive segments in the power equipment industry. YASHHV is among fewer than 12 independent manufacturers globally (ex-China) and remains the only pure-play Indian player in this niche. New supplier qualification can take 8–10 years since it requires stringent utility testing and reliability assessment, causing significant entry barriers. YASHHV holds an estimated 18% share of the domestic addressable bushing market (OIP + RIP, 66 kV–245 kV), supported by its strong positioning as one of the few independent specialist suppliers in the segment

View and Valuation:

YASHHV is well-positioned to benefit from India's transmission capex upcycle, supported by capacity expansion, backward integration and increasing exports of higher-margin RIP bushings. We project Revenue/EBITDA/PAT CAGR of 47%/53%/48%, respectively, over FY26–29E, driven by a strong demand visibility, improving product mix and operating leverage. We have a 'BUY' rating and a DCF-based target price of INR 1,200, implying 60% upside from the current level. The target price implies a P/E of ~51x FY28E EPS and ~29x FY29E EPS, with a PEG ratio of 1.1x.

Valuation:

We currently have a ‘BUY’ rating on the stock with a target price of INR 1,200.

Key Risks:

1) Customer concentration,

2) Possible qualification delays,

3) Probable power capex slowdown,

4) Chances of greenfield project execution delays,

5) Import dependence,

6) Slower-than-expected RIP adoption

7) Competitive pricing risk.

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SEBI Registration no.: INZ 000160131