IPO will list on 16 Sep'26
Kanohar Electricals Limited
Minimum Investment
₹ 14,536 / 23 shares
Our Verdict:
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- Kanohar Electricals is a transformer manufacturer with over five decades of experience, combining a Transformer Manufacturing Business with an EPC business for substations and transmission lines; revenue grew from ₹276.69 crore (FY24) to ₹653.84 crore (FY26), and PAT grew roughly seven-fold, from ₹17.76 crore to ₹129.73 crore, over the same period.
- EBITDA margin expanded sharply from 11.23% (FY24) to 27.59% (FY26), and Return on Equity rose from 30.92% to 42.12%, reflecting genuinely improving operating leverage rather than one-off gains.
- The growth has come with extreme customer concentration — the top 10 customers made up 93.16% of FY26 revenue, and 85.37% of revenue came from government tenders with a bid-to-win ratio of only about 20% — meaning results remain highly dependent on continued success in a narrow set of large, government-linked bidding relationships.
- Capacity utilisation is a genuine open question: despite the revenue surge, overall transformer manufacturing capacity utilisation was only around 46% in FY26, and the Rithani unit has been almost entirely idle (0.25% utilisation) for two straight years — a sign that current growth has come from the Gangol unit alone, with meaningful spare capacity still unused.
- The profit and margin trajectory is genuinely strong and the order book is substantial, but this reads as a story still concentrated in a handful of large government-linked contracts and a single active manufacturing site, with a recent decline in operating cash flow despite rising profit — worth weighing carefully against the impressive headline growth before assuming the pace continues unchanged.
About the company
Founded in
Invalid Date
Managing director
Dinesh Singhal
- Kanohar Electricals is a transformer manufacturer operating through two business segments: a Transformer Manufacturing Business (power, traction, Scott, shunt reactor and distribution transformers) and an EPC Business (substations and transmission lines).
- The Company's equity shares were previously listed on the Bombay Stock Exchange, the Delhi Stock Exchange and the Uttar Pradesh Stock Exchange in 1995, but were voluntarily delisted from all three in 2010 due to low liquidity and trading volumes.
- Manufacturing runs through two facilities in Meerut, Uttar Pradesh — the Rithani Manufacturing Facility and the Gangol Manufacturing Facility; the Company serves customers across the power transmission, railways, renewable energy and power distribution sectors.
- Promoters: Dinesh Singhal (Chairman & Managing Director), Adesh Singhal, Vivek Singhal, Abhishek Singhal, Virat Singhal, Aditya Singhal and K Sons Family Trust; promoter holding is expected to reduce from 99.72% pre-Offer to 78.64% post-Offer.
STRENGTHS
- Long-Established Transformer Manufacturer: Over five decades of transformer manufacturing experience (incorporated 1972), previously listed and later voluntarily delisted from three stock exchanges in 2010 due to low liquidity.
- Revenue and Profit Growth: Revenue from operations grew from ₹276.69 crore (FY24) to ₹653.84 crore (FY26); PAT grew from ₹17.76 crore to ₹129.73 crore over the same period.
- Strong, Growing Order Book: Order book of ₹1,818.32 crore as of FY26, with government-sector clients contributing 93.62% of the order book.
- Improving Margins and Low Leverage: EBITDA margin expanded from 11.23% (FY24) to 27.59% (FY26), with Debt-to-Equity of just 0.10x in FY26.
- Diversified Product and End-Market Range: Manufactures five types of transformers (power, traction, Scott, shunt reactor and distribution) alongside EPC solutions for substations and transmission lines, serving power transmission, railways, renewable energy and distribution sectors.
RISK FACTORS
- Extreme Customer Concentration: Top 10 customers contributed 93.16% of FY26 revenue from operations, with government and government-linked entities (including Power Grid Corporation of India, with an order book of ₹573.26 crore) forming the bulk of this base.
- Government Tender Dependency: 85.37% of FY26 revenue came from government tenders, with a bid-to-win ratio of only around 20%, making future revenue highly dependent on continued success in competitive bidding.
- Underutilised Manufacturing Capacity: Overall transformer manufacturing capacity utilisation was approximately 45.99% in FY26; the Rithani unit specifically operated at just 0.25% utilisation in both FY25 and FY26, remaining largely idle.
- Sector Concentration in High-Growth End Markets: Power transmission, railways and renewable energy end-markets together accounted for 96.83% of FY26 revenue, concentrating the business in a narrow set of cyclical, policy-sensitive sectors.
- Declining Operating Cash Flow Despite Profit Growth: Operating cash flow fell sharply in FY26 compared to FY25, even as reported PAT nearly doubled, reflecting rising working capital requirements tied to the larger order book.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ ₹1,055.74 crore
Fresh Issue
₹ ₹300 crore
OFS
₹ ₹755.74 crore
Price range
₹ 601 - 632
Lot size
23 shares
Issue Objective
- Net Proceeds from the Fresh Issue (₹300 crore) are proposed to be used for funding working capital requirements and general corporate purposes; specific allocation details are to be finalised and disclosed in the Prospectus upon determination of the Offer Price.
Dates
Bidding open
8 Sep'26
Bidding close
10 Sep'26
Allotment date
11 Sep'26
Refund date
15 Sep'26
Listing
16 Sep'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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