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Shares of Voltamp Transformers Limited plunged 20 per cent on Tuesday, hitting the lower circuit after the company reported a sharp decline in earnings for the March 2026 quarter. 

The stock fell to Rs 10,016 on the National Stock Exchange of India (NSE), wiping out significant investor wealth and dragging the company’s market capitalisation down to Rs 14,649.59 crore.

By mid-afternoon session, the stock was trading at Rs 10,116, down over 19 per cent from its previous close of Rs 12,520.

The sharp sell-off followed a weak operational performance in the fourth quarter. The company reported revenue of Rs 617.22 crore, slightly lower than Rs 624.81 crore in the same period previous financial year.

However, profitability took a bigger hit, with EBITDA falling 30 per cent year-on-year to Rs 79.77 crore, while margins contracted to 13.17 per cent from 18.63 per cent.

Net profit nearly halved to Rs 48 crore from Rs 97 crore in the year-ago quarter, as per its regulatory filing.

Despite the quarterly weakness, the company reported steady growth for the full financial year 2025-26, with net sales and service revenue rising 11.34 per cent to Rs 2,153.68 crore.

The board has also recommended a final dividend of Rs 100 per share, subject to shareholder approval.

Voltamp said it entered FY26 with a robust order backlog of Rs 1,200 crore and secured additional orders worth Rs 310 crore in April.

The company added that its enquiry pipeline remains strong, though it is maintaining a selective approach while bidding for new projects.

The company attributed the sharp decline in quarterly profit to multiple factors, including adverse movements in its investment portfolio.

Over the past two years, Voltamp had invested significantly in long-term government securities and mutual funds, which had previously generated strong mark-to-market gains.

However, a rise in long-term government bond yields during the March quarter led to negative MTM adjustments, impacting reported earnings.