Understanding Shariah Compliance in IPOs and Stocks:
Investing wisely is essential for both financial growth and ethical alignment. For those interested in making investments that comply with Islamic law, understanding the Shariah status of Initial Public Offerings (IPOs) and stocks is crucial. This article aims to provide insights into the Shariah compliance of Accord Transformer & Switchgear Ltd, a modern choice for ensuring that your investment choices are not only profitable but also ethical.
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Analyzing The Company
Company Name: Accord Transformer & Switchgear Ltd
Listing At: BSE (SME)
Overview
Accord Transformer & Switchgear Ltd. is a professionally managed power equipment manufacturing company that specializes in the design, manufacture, testing, and supply of transformers and switchgear solutions. Established in 2014, the company has built a formidable reputation for engineering excellence, disciplined manufacturing practices, and customer-centric execution, positioning itself as a trusted partner within the power sector across India and international markets.
Strategic Foundation and Operational Philosophy
The company operates as a technology-driven organization committed to delivering robust and efficient power equipment that meets stringent technical and regulatory standards. Accord Transformer & Switchgear Ltd. serves a diverse customer base including utilities, infrastructure projects, and industrial customers, addressing their evolving power distribution, transmission, and industrial application requirements. The organization’s operations are supported by a skilled workforce, modern manufacturing infrastructure, and well-defined quality systems that ensure consistent excellence in product delivery.
Core Service and Product Specializations
Accord Transformer & Switchgear Ltd. specializes in multiple critical power equipment domains:
- Manufacturing of IDT, distribution, and power transformers tailored to utility and industrial specifications
- Design and supply of comprehensive switchgear solutions addressing diverse application requirements
- Customized products engineered to meet utility, EPC (Engineering, Procurement, and Construction), and industrial specifications
- Testing and quality assurance services conducted in strict compliance with IS (Indian Standards) and IEC (International Electrotechnical Commission) standards
The company’s product portfolio is engineered to deliver long service life, operational safety, and dependable performance even under demanding operational conditions, ensuring reliability and sustainability across applications.
Manufacturing Infrastructure and Technical Capabilities
Accord Transformer & Switchgear Ltd. operates state-of-the-art manufacturing facilities specifically designed to support scalable production, precision engineering, and strict quality control. The company’s infrastructure encompasses:
- Dedicated manufacturing bays optimized for transformer and switchgear production
- Advanced machinery and comprehensive testing equipment ensuring product excellence
- In-house design and engineering support enabling customization and innovation
- Robust warehousing and logistics systems facilitating efficient distribution
This comprehensive infrastructure positions Accord Transformer & Switchgear Ltd. to execute bulk orders, time-bound projects, and utility tenders with exceptional consistency and confidence, meeting demanding market requirements.
Competitive Positioning
Since its establishment in 2014, Accord Transformer & Switchgear Ltd. has demonstrated unwavering commitment to quality, reliability, and regulatory compliance. The company’s integrated approach—combining technological innovation, skilled workforce development, and operational excellence—enables it to address complex power equipment requirements while maintaining competitive advantage in the dynamic power sector.
The organization’s emphasis on precision manufacturing, rigorous testing protocols, and customer-aligned solutions establishes Accord Transformer & Switchgear Ltd. as a dependable partner for utilities, infrastructure developers, and industrial enterprises seeking reliable power equipment solutions backed by engineering excellence and operational integrity.
Shariah Status
The IPO is Shariah Compliant, please see the below image.
IPO Timeline (Tentative Schedule)
| IPO Open Date | Feb 23, 2026 |
| IPO Close Date | Feb 25, 2026 |
| Tentative Allotment | Feb 26, 2026 |
| Initiation of Refunds | Feb 27, 2026 |
| Credit of Shares to Demat | Feb 27, 2026 |
| Tentative Listing Date | Mar 02, 2026 |
Financials
Accord Transformer & Switchgear demonstrates strong financial momentum across all key metrics. Revenue Growth has accelerated sharply: Total Income surged from ₹40.81 Crore (FY23) to ₹48.60 Crore (FY24) and ₹79.20 Crore (FY25), with ₹45.29 Crore recorded in H1 FY26—reflecting robust demand for transformer and switchgear solutions.
Profitability Expansion is impressive: Profit After Tax grew from ₹0.87 Crore (FY23) to ₹1.61 Crore (FY24) and ₹6.05 Crore (FY25), reaching ₹2.91 Crore in H1 FY26. EBITDA climbed from ₹1.54 Crore to ₹9.10 Crore, with margins improving to 11.67% (FY25) from 3.78% (FY23).
Balance Sheet Strength: Total Assets nearly quadrupled from ₹15.82 Crore to ₹59.89 Crore. Net Worth surged five-fold to ₹21.54 Crore, while Reserves accumulated to ₹21.25 Crore, signaling robust capital accumulation.
Return Metrics are exceptional: ROE stands at 28.09%, ROCE at 26.00%, and ROA at 10.10%, demonstrating efficient capital deployment. Debt-to-Equity improved to 0.55x from 1.51x (FY24), reducing financial leverage.
Concerns: Debtor days extended from 51 to 132 days, and working capital days increased to 65.3 days, suggesting stretched receivables management that warrants monitoring. Despite this, strong operational execution, margin expansion, and improving balance sheet position position Accord favorably for sustained growth.
SEBI Disclaimer
Investing in IPOs involves risks. Please read the offer document carefully before investing. This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.