Kanohar Electricals

Kanohar Electricals Limited has established itself as a prominent player in the Indian power infrastructure landscape, specializing in the design and manufacture of high-quality transformers. The company operates with a dual-business model comprising transformer manufacturing and comprehensive EPC services, allowing it to offer end-to-end solutions to its clients.

A key competitive advantage for the company is its certification by the Research Designs and Standards Organisation (RDSO). Kanohar is among only four manufacturers in India certified by this Indian Railways R&D body to produce 100 MVA, 132 kV Scott transformers, positioning it as a specialized supplier for the national rail network.

The company's operational footprint is centered in Meerut, Uttar Pradesh, where it operates two sophisticated manufacturing facilities located at Rithani and Gangol. As of September 30, 2025, these plants boasted a combined manufacturing capacity of 19,200 MVA, enabling the company to scale operations to meet rising energy demands.

Kanohar's market position is strengthened by its ability to cater to diverse end-user industries, ranging from traditional power distribution to the rapidly growing renewable energy sector. This diversification reduces reliance on any single industry vertical and aligns the company with India's broader energy transition goals.

The company is led by a promoter group consisting of Dinesh Singhal, Adesh Singhal, Vivek Singhal, Abhishek Singhal, Virat Singhal, and Aditya Singhal, who have steered the company toward significant revenue and profit growth over the recent fiscal periods.

Kanohar Electricals is launching a Mainboard IPO to raise approximately ₹1,055.74 Crores. The issue is structured with a fresh issue of ₹300 Crores 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 requiring an application amount of ₹14,536. The IPO opens on September 8, 2026, and closes on September 10, 2026, with listing scheduled for September 16, 2026, on the BSE and NSE.

The proceeds from the fresh issue are earmarked for strategic growth, with ₹66.74 Crores allocated for capital expenditure requirements and ₹130.00 Crores designated for incremental working capital requirements to support increasing operational scale.

Financial performance has been exceptional over the last three years. Revenue grew from ₹281.12 Crores in FY24 to ₹662.86 Crores in FY26. Even more impressive is the Net Profit (PAT) trajectory, which surged from ₹17.76 Crores in FY24 to ₹65.12 Crores in FY25, and further jumped to ₹129.73 Crores in FY26, reflecting massive operational leverage.

From a valuation perspective, the company exhibits strong KPIs with an ROE of 42.12% and a ROCE of 70.13%. While a formal P/E ratio isn't provided in the dossier, the EPS for FY26 stands at ₹17.43. When compared to peers like Hitachi Energy and CG Power, Kanohar's efficiency ratios are highly competitive.

Key strengths include its rare RDSO certification, low debt-to-equity ratio of 0.1, and rapid profit growth. However, the heavy weight of the OFS (approximately 71.6% of the issue size) indicates significant promoter offloading, which can sometimes be perceived as a negative signal by conservative investors.

Overall, Kanohar Electricals presents a profile of high growth and efficiency. While the OFS size is large, the fundamental strength of the balance sheet and the strategic importance of the transformer sector provide a robust foundation for long-term consideration.