Kanohar Electricals IPO

Kanohar Electricals Limited is an Indian manufacturer of transformers and power equipment with operations spanning transformer manufacturing and Engineering, Procurement and Construction (EPC) activities. The company was established in 1972 and is headquartered in Meerut, Uttar Pradesh.

The company's transformer portfolio includes power transformers, distribution transformers, traction transformers, Scott transformers and other specialised transformer products. Its products are used across power transmission, railways, renewable energy and power distribution applications.

Kanohar Electricals operates two manufacturing facilities at Rithani and Gangol in Meerut. As of March 31, 2026, the company had an aggregate transformer manufacturing capacity of approximately 19,200 MVA. The Gangol facility is capable of manufacturing transformers of up to 500 MVA and 400 kV.

The company has developed backward-integrated manufacturing capabilities for critical transformer components, including tanks and radiators. This supports greater control over production processes and enables the company to manufacture customised products for different customer requirements.

Kanohar Electricals has also developed capabilities in high-voltage transformer manufacturing. The company has successfully developed and tested transformers up to 500 MVA and 400 kV and has RDSO certification for 100 MVA, 132 kV Scott transformers, supporting its participation in specialised railway applications.

The company's EPC business complements its manufacturing operations by providing engineering and project execution capabilities. Its customer base includes state transmission utilities, government-controlled entities and customers operating in infrastructure and power-related sectors.

As of March 31, 2026, Kanohar Electricals had an order book of approximately ₹1,818.32 crore. The company has executed projects for large and established customers and has more than five decades of operating experience in the electrical equipment industry.

Kanohar Electricals reported revenue of ₹281.12 crore in FY2024, ₹457.30 crore in FY2025 and ₹662.86 crore in FY2026. Profit after tax increased from ₹17.76 crore in FY2024 to ₹65.12 crore in FY2025 and ₹129.73 crore in FY2026.

EBITDA increased from ₹31.07 crore in FY2024 to ₹93.39 crore in FY2025 and ₹180.42 crore in FY2026. The improvement in EBITDA was accompanied by a significant increase in profitability, with PAT margin reaching approximately 19.57% in FY2026.

Net worth increased from ₹178.12 crore in FY2024 to ₹243.13 crore in FY2025 and ₹372.84 crore in FY2026. Total borrowings were ₹42.08 crore in FY2024, ₹32.27 crore in FY2025 and ₹39.04 crore in FY2026, indicating relatively low financial leverage compared with the company's net worth.

The company's core transformer manufacturing business is supported by exposure to power transmission, railway electrification, renewable energy and power distribution. Its EPC business provides an additional source of revenue and allows the company to participate in larger infrastructure projects.

Kanohar Electricals has an aggregate transformer manufacturing capacity of approximately 19,200 MVA across its two Meerut facilities. The Gangol facility's capability to manufacture transformers up to 500 MVA and 400 kV provides exposure to high-value and specialised transformer requirements.

The company also has a sizeable order book. As of March 31, 2026, the order book stood at approximately ₹1,818.32 crore, providing visibility for future revenue execution. However, the conversion of the order book into revenue remains dependent on timely project execution, customer requirements and other contractual factors.

At the upper price band of ₹632, the pre-IPO EPS of ₹17.43 implies a P/E ratio of approximately 36.26x. After considering the dilution from the Fresh Issue, post-IPO EPS is approximately ₹16.38 and the corresponding P/E ratio is approximately 38.58x.

For FY2026, the company reported RoNW of approximately 34.80%, ROE of 42.12%, ROCE of 70.13%, EBITDA margin of 27.59%, PAT margin of 19.57% and debt-to-equity of approximately 0.10x. NAV stood at approximately ₹50.09 per share.

The IPO has a ₹300 crore Fresh Issue and an OFS component of ₹755.74 crore. The Fresh Issue proceeds are intended mainly for capital expenditure and working-capital requirements, while the OFS proceeds will go to the selling shareholders.

Overall, Kanohar Electricals has demonstrated strong financial growth, specialised transformer manufacturing capabilities, a sizeable order book and relatively low leverage. Investors should nevertheless consider customer concentration, dependence on government and utility tenders, raw-material price volatility, working-capital requirements, project execution risks and the valuation before evaluating the IPO.

Kanohar Electricals IPO applications can be made through the applicable ASBA and UPI-supported IPO application process. Individual Investors can apply for a minimum of 1 lot, or 23 shares, at the upper price band of ₹632, requiring ₹14,536.

Through UPI

1. Log in to your stockbroker app or website.
2. Go to the IPO section.
3. Select Kanohar Electricals IPO.
4. Enter the required number of lots.
5. Enter the bid price or select the Cut-off option where permitted.
6. Enter your valid UPI ID.
7. Submit the IPO application.
8. Open your UPI application after receiving the mandate request.
9. Approve the mandate using your UPI PIN.
10. The application amount will remain blocked in your bank account until the allotment process is completed.