Salzer Electronics Limited was established in the year 1985 in Coimbatore, Tamil Nadu and is today a prominent Indian manufacturer specializing in electrical solutions including switchgear products, wires and cables, and energy management systems. The company is recognized as the largest manufacturer of CAM Operated Rotary Switches and Wire Ducts in the country holding over 40% market share in rotary switches.
The company’s product portfolio consists of Industrial Components, Motor Control Products, Building Segment products, and Copper and Energy Segment items. The global switchgear market is around $94 billion at present and is expected to reach approximately $150 billion in the next 7 years. This growth should be mainly driven by increasing demand for electricity, use in transportation, renewable energy investment, rising electricity needs for manufacturing and replacement of old switch gears.
The Indian switchgear market is projected to grow exponentially with a CAGR of over 8% in the next decade on the back of investment growth in infrastructure and industrial segment across the country . The key trends are adoption of digital technology, innovation and development of products to meet power generation , investment in Eco efficient solutions , deployment of IoT enabled switch gears for automated operations and promotion of automated switch gears for smart grid operation and the development of various specialised switch gears for critical industries.
Salzer Electronics posted a super set of Q2FY25 quarterly financial results with revenue increasing by 23% to Rs 344 crores over the previous corresponding period on the back of higher demand for industrial switchgear as well as wire and cables segment due to high demand for products like the 3 phase dry type transformer, wire harness and relays . EBITDA stood at Rs 35 crores during Q2FY25 as against Rs 27 crores during Q2FY24. This growth of nearly 32% year on year was mainly on account of increased sales in the higher margin switchgear business . Profit after tax also grew by nearly 170% to reach Rs 27 crores during the second quarter of 2025. In terms of the break up of the revenue segment wise , the industrial switchgear business contributed 62% of the total revenue growing 34% year on year on the back of 12% EBITDA margin.
On the other hand , the building product division contributed about 5% to the total revenue during the said quarter . The future outlook is extremely bright for Salzer Electronics as it is strategically positioning itself to the changing economic and technical landscape by broadening its product portfolio and pursue new growth avenues to achieve its objective and simultaneously deliver value to its shareholders . Salzer has also recently received its first domestic order of smart meter and is optimistic about securing further orders to support the country’s digital transformation in energy management through cutting edge smart meter technology.
As of December 20, 2024, Salzer Electronics’ share price is quoting at Rs 1,596 with a market capitalisation of approximately Rs 2,822 crores.
The company has demonstrated consistent growth with a compounded sales growth of 16% over the past ten years and a compounded profit growth of 18% over the same period. The stock can be bought by portfolio investors for long term investment . Investors should note that since stock market is very uncertain at the moment , hence they should do their own proper due diligence and check from their financial advisors before buying any stock recommendation.