Shares of Voltamp Transformers Ltd extended their decline for the third consecutive session on Thursday, falling 6 per cent to Rs 9,401. With this, the stock has tumbled 25.13 per cent in the last three trading days.

The steep correction in the Vadodara-based transformer maker came after the company reported a weaker-than-expected operational performance for the March 2026 quarter, prompting brokerages to cut earnings estimates and downgrade ratings.

Nuvama Institutional Equities said Voltamp posted a subpar Q4 FY26 performance, with profit after tax (PAT) coming in nearly 44 per cent below its estimates. The brokerage attributed the miss to Rs 10 crore negative other income -- largely mark-to-market (MTM) losses -- along with subdued execution and margin pressure.

According to the brokerage, revenue declined 1.2 per cent year-on-year (YoY), while gross margin and EBITDA margin stood at 23 per cent and 13.2 per cent, respectively, down 390 basis points (bps) and 540 bps YoY.

"We trim FY27E/28E EPS by 17 per cent/2 per cent, valuing it at 25x yielding a target price of Rs 10,000 (Rs 10,200 earlier). At CMP, it trades at 31x/25x on FY27E/28E EPS," Nuvama stated.

PL Capital also flagged pressure on profitability, noting that EBITDA margin contracted 377 bps YoY due to a sharp rise in transformer oil prices and currency fluctuations, which increased raw material costs.

The brokerage said near-term pricing pressure, execution of legacy orders and supply-chain bottlenecks remain key monitorables, though the broader demand outlook for the sector continues to stay healthy.

"We revise our FY27-28 EPS estimates by -10.1 per cent/-3.9 per cent and downgrade our rating from 'Buy' to 'Accumulate' factoring in margin pressures from legacy orders and supply-chain constraints. We roll forward to Mar'28E, valuing the stock at a P/E of 26x Mar'28E with a revised target price of Rs 10,503," PL Capital stated.

Voltamp, in its quarterly earnings, highlighted that rupee depreciation increased the cost of imported raw materials. "Also, steep increase in critical components cost, with vendors chasing export markets and passing on their increased cost burden. Ongoing Middle East conflict steeply escalated input cost of transformer oil," it added.