Megatherm Induction Ltd. – Company Report
1. Company Overview
Megatherm Induction Ltd., founded in 2010 and headquartered in Kharagpur, West Bengal, is a leading Indian manufacturer of induction heating and melting solutions for the metals industry. A subsidiary of Megatherm Electronics Private Limited and part of the Megatherm Group, the company provides an integrated suite of heavy industrial equipment, including induction furnaces, casting machines, transformers, and fume extraction systems. It also offers turnkey solutions for steel plants, from design and engineering to maintenance and spare parts.
As of March 2023, the company’s facility has a manufacturing capacity of approximately 300 furnaces and transformers annually. Megatherm serves primary and secondary steelmakers, automotive suppliers, ordnance factories, DI pipe manufacturers, and engineering/foundry companies across India, South America, Africa, the Gulf, Europe, SAARC, and Southeast Asia.
The company is led by Chairman & Managing Director Shesadri Bhushan Chanda and Executive Director & CFO Satadri Chanda.
Key Highlights:
- Incorporated: 2010
- Headquarters: Kharagpur, West Bengal, India
- Manufacturing Capacity: ~300 furnaces & transformers/year
- Employees: ~285 (core), 500+ (group-wide)
- Promoter: Megatherm Electronics Pvt. Ltd. (holds 72.6%)
- Key Management:
- Shesadri Bhushan Chanda (Chairman & MD)
- Satadri Chanda (Executive Director & CFO)
- Export Markets: India, South America, Africa, Gulf, Europe, SAARC, Southeast Asia
2. Products and Services
Megatherm Induction offers a wide portfolio of products and engineering solutions catering to the metals processing sector:
- Induction Melting Furnaces – For steel, copper, aluminum, and special alloys
- Induction Heaters – Billet, wire, and bar-end heaters for forging/rolling
- Heat Treatment Systems – For rails, cylinders, gears, shafts, and automotive components
- Power Supplies – Solid-state induction power sources
- Transformers – Distribution, power, and converter transformers
- Ladle Refining Furnaces – For controlled steel refining
- Continuous Casting Machines – For billets, blooms, slabs, and strips
- Electric Arc Furnaces
- Foundry Equipment – Sand plants, molding lines, ladle preheaters
- Fume Extraction Systems – Emission control systems for steel plants
- Automation Solutions – SCADA and PLC-based systems
- Turnkey Steel Plant Solutions – Including design, installation, maintenance, and spares
Clients include: Hindalco, BHEL, Tata Motors, Mahindra, Shyam Metalics, Indian Railways, and several others in the automotive, steel, and engineering sectors.
3. Recent News and Financial Performance
Business Developments (FY2025):
Upcoming Orders for FY26 (February 2025):
- Rungta Mines Group – ₹25 crore
- Shyam Metalics & Energy Group – ₹26 crore
- Chandan Steel Ltd. – ₹12 crore
Government Support (February 2025): Received a ₹3.25 crore subsidy from the Ministry of Electronics & IT (MeitY) for boosting manufacturing of specialized equipment.
Export Order (February 2025): Secured a $4.9 million order from Africa, execution starting FY2026.
Joint Venture in North America (May 2025): Formed a JV with Cyprium Induction, LLC (USA). Megatherm holds 49.99%, aiming to penetrate the US and North American markets.
Strategic Equity Deal (July 2025): Promoter entity signed a 12-month equity placement agreement to ensure flexible future funding.
Major Orders in India (July 2025): Secured domestic orders worth ₹53 crore for induction equipment (delivery in 6–8 months).
Solar Transformer Launch (August 2025): Successfully completed testing for a 13.2 MVA solar transformer, marking entry into the renewable energy sector.
Strategic Expansion & Outlook:
- New manufacturing shed to be operational by Q4 FY25, expected to drive ₹200 crore incremental revenue by FY27
- Long-term revenue target: 3–4x FY24 revenue within 5 years
- Goal to enhance transformer capacity and expand export footprint
- Targeting EBITDA margins of ~15% by FY27 and ~20% by FY30
4. Financial Performance (FY2025)
| Metric | FY2025 |
|---|---|
| Revenue | ₹323.7 crore (↑ from ₹307.4 crore in FY2024) |
| Net Profit | ₹21.3 crore (↑ from ₹20.7 crore) |
| Operating Profit | ₹35.7 crore |
| Operating Margin | 11% |
| Net Profit Margin | 7% |
| Earnings Per Share (EPS) | ₹11.31 |
| Return on Equity (ROE) | 16% |
| Dividend | None (reinvesting for growth) |