Kanohar Electricals

Kanohar Electricals Limited has established itself as a prominent player in the Indian transformer manufacturing landscape. The company operates two primary business segments: the manufacturing of high-quality transformers and the delivery of specialized Engineering, Procurement, and Construction (EPC) services, positioning it as a comprehensive solutions provider for the power sector.

A key differentiator for the company is its certification by the Research Designs and Standards Organisation (RDSO) of the Indian Railways. Kanohar is among only four manufacturers in India certified to produce 100 MVA, 132 kV Scott transformers, giving it a significant competitive edge in the railway infrastructure market.

Operationally, the company maintains a strong manufacturing footprint with two facilities located in Rithani and Gangol in Meerut, Uttar Pradesh. As of September 30, 2025, these plants boasted a combined transformer manufacturing capacity of 19,200 MVA, enabling the company to scale its operations to meet growing national demand.

The company's market reach extends across diverse end-user industries, including renewable energy and power distribution. This diversification helps mitigate sector-specific risks and ensures a steady pipeline of orders from both government and private entities.

The leadership and ownership of Kanohar Electricals are held by the Singhal family, including Dinesh, Adesh, Vivek, Abhishek, Virat, and Aditya Singhal. Their focused promoter group has driven the company's aggressive growth in revenue and profitability over the last three fiscal years.

The Kanohar Electricals IPO is a mainboard issue aiming to raise approximately ₹1,055.74 Crore. The issue structure comprises a fresh issue of ₹300 Crore and an offer for sale (OFS) of 1,19,57,915 equity shares. The price band is set between ₹601 and ₹632 per share, with a minimum retail lot size of 23 shares. The IPO opens on September 8, 2026, and closes on September 10, 2026, with listing scheduled for September 16, 2026, on both the BSE and NSE.

Proceeds from the fresh issue are earmarked for strategic growth, with ₹66.74 Crore allocated for capital expenditure requirements and ₹130.00 Crore dedicated to meeting incremental working capital needs, reflecting the company's intent to expand its operational capacity.

Financial performance has been stellar over the last three years. Revenue grew from ₹281.12 Crore in 2024 to ₹662.86 Crore in 2026. More impressively, the Profit After Tax (PAT) saw a dramatic surge from ₹17.76 Crore in 2024 to ₹129.73 Crore in 2026, indicating significant operational leverage and efficiency gains.

From a valuation perspective, the company exhibits strong KPIs with an ROE of 42.12% and a ROCE of 70.13%. The basic EPS for FY2026 stands at ₹17.43. When compared to peers like Hitachi Energy and CG Power, Kanohar's growth trajectory is highly aggressive, though it operates on a smaller scale than the industry giants.

Investment strengths include its rare RDSO certification for railway transformers, an extremely low debt-to-equity ratio of 0.10, and rapid profit growth. However, investors should note the high proportion of the issue coming from the OFS (approximately 71.6%), which indicates significant profit-booking by promoters.

Overall, the IPO presents a blend of high-growth financials and institutional appeal. While the promoter offloading is a point of observation, the fundamental strength and the strategic nature of the transformer industry provide a compelling case for long-term consideration.