IPO closes on 4 Aug'26
GV Electricals Ltd
Minimum Investment
₹ 1.30 Lac / 1,000 shares
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- G V Electricals has delivered steady growth, with revenue increasing from ₹104.2 crore in FY23 to ₹131.2 crore in FY25 (12.2% CAGR), while PAT grew from ₹1.69 crore to ₹4.66 crore during the same period. However, profitability remains relatively modest for the scale of operations.
- The company operates in the power distribution EPC and O&M segment, but its business is highly concentrated, with the top 10 customers contributing over 98% of revenue in FY25, exposing it to significant customer concentration risk.
- While the IPO proceeds are primarily being raised to fund working capital and support future growth, the business remains execution and working capital intensive, making cash flow management a key monitorable.
- The company could benefit from increased government spending on power infrastructure; however, tender based competition, dependence on utility contracts and execution risks may limit earnings visibility over the medium term.
About the company
Founded in
28 Feb'85
Managing director
Sunil Lakshman Vatsa
- GVEL is a power distribution infrastructure services provider, incorporated in 1985, engaged in operation and maintenance (O&M) and allied support services primarily for electricity distribution utilities in India.
- Operations are organised across three verticals: (i) Network O&M Services, (ii) Electrical Infrastructure and Network Development Works, and (iii) Metering and Meter Management Services.
- As of February 28, 2026, GVEL's order book comprised 34 ongoing projects worth approximately ₹594.67 crore; the Company holds ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 and SA 8000:2014 certifications.
- As of February 28, 2026, the Company had a workforce of 4,770 (4,629 permanent and 141 contractual), and is led by Jawed Akhtar (Chairman & Whole-time Director) and Sunil Lakshman Vatsa (Managing Director), each with over 30 years of experience.
STRENGTHS
- Diversified, O&M-led Service Presence: GVEL operates across three service verticals, with Network O&M Services contributing 79.18% of revenue in H1FY26 (up from 78.68% in FY23), providing recurring, contract-based revenue visibility.
- Strong Order Book: As of February 28, 2026, the order book comprised 34 ongoing projects with an aggregate unexecuted value of approximately ₹594.67 crore, primarily from electricity distribution utilities.
- High Customer Retention: Repeat customers contributed 91.19% of revenue in H1FY26 and 97.14%, 99.28% and 99.29% in FY25, FY24 and FY23, respectively.
- Robust Financial Growth: Revenue grew at a CAGR of ~12.2% and PAT at a CAGR of ~56.3% over FY23–FY25. EBITDA margin improved from 3.88% (FY23) to 6.13% (FY25) and further to 10.20% in H1FY26; PAT margin rose from 1.83% to 3.55% and further to 5.30% over the same periods.
- Improving Return Ratios: RoE improved from 13.77% in FY23 to 23.16% in FY25, while RoCE improved from 20.94% to 23.88% over the same period.
RISK FACTORS
- Customer Concentration: Top 10 customers contributed 96.29% of revenue in H1FY26 (97.74%, 98.82% and 98.78% in FY25, FY24 and FY23, respectively). Loss of, or reduced business from, key customers could materially impact revenue and cash flows.
- Tender Dependence: A substantial part of the business depends on winning contracts through competitive tendering by electricity distribution utilities. Inability to secure tenders or sustained pricing pressure could adversely affect margins.
- Working Capital Intensive Operations: Working capital requirements rose from ₹978.36 lakh in FY23 to ₹2,619.83 lakh in H1FY26. Any inability to arrange adequate funding could affect liquidity and operations.
- High Indebtedness, Secured on Personal Guarantees: Short-term borrowings rose from ₹393.19 lakh in FY23 to ₹1,435.89 lakh in H1FY26. Loans are secured by personal guarantees of the Promoters, exposing them to related risks.
- Labour-Intensive Operations: With a workforce of 4,770 as of February 28, 2026, operations could be materially affected by strikes, unrest, or unavailability of skilled and semi-skilled manpower.
- Legal Proceedings and Statutory Compliance: The Company has certain outstanding legal proceedings, primarily relating to labour matters, and has had delays in payment of statutory dues in the past, which could expose it to penalties.
Financials
All Values are in Cr.
Issue details
Issue type
SME
Issue size
₹
Fresh Issue
₹ Up to 30,00,000 shares
OFS
₹ Up to 2,50,000 shares
Price range
₹ 123 - 130
Lot size
1,000 shares
Issue Objective
The Offer comprises a Fresh Issue of up to 30,00,000 Equity Shares and an Offer for Sale of up to 2,50,000 Equity Shares. Net proceeds of the Fresh Issue are proposed to be used for: (i) repayment of a portion of borrowings (₹500 lakh); (ii) funding working capital requirements (₹2,200 lakh); and (iii) general corporate purposes.
Dates
Bidding open
31 Jul'26
Bidding close
4 Aug'26
Allotment date
5 Aug'26
Refund date
6 Aug'26
Listing
7 Aug'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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