Kanohar Electricals Limited IPO

Kanohar Electricals Limited IPO closed on 10 Sept 2026. Allotment 11 Sept 2026, listing 16 Sept 2026. Price band ₹601–₹632, lot 23 shares, GMP +₹192 (30.38%). Track allotment on Allotly.

About Kanohar Electricals Limited

Kanohar Electricals Limited is a company engaged in transformer manufacturing and engineering, procurement and construction (EPC) activities in the power transmission and distribution sector. Its transformer manufacturing business covers transformers used in power transmission, railways, renewable energy, and power distribution. As of March 31, 2026, the company had short circuit test certification for 500 MVA 400 kV transformers and had conducted short circuit testing for more than 200 ratings. It is also certified by the Research Designs and Standards Organisation (RDSO) to manufacture 100 MVA 132 kV Scott transformers and is certified to manufacture 100 MVA 220 kV Scott transformers for railway electrification. Through its EPC business, the company undertakes turnkey installation of air and gas-insulated substations, bay augmentation of existing substations up to 400 kV, and…

Strengths

• The company has over 40 years of experience in transformer manufacturing and caters to power transmission, railways, renewable energy, and power distribution. It manufactures transformers across capacities ranging from below 132 kV to above 400 kV.
• The company has short circuit test certification for 500 MVA 400 kV transformers, which it claims places it among five companies in India with this certification as of March 31, 2026. It has also conducted short circuit testing for more than 200 transformer ratings at laboratories, including the Central Power Research Institute and National High Power Test Laboratory.
• The company has certifications for specialised railway transformers. It claims to be one of four manufacturers in India certified by RDSO to manufacture 100 MVA 132 kV Scott transformers and one of two Indian manufacturers certified to manufacture 100 MVA 220 kV Scott transformers.
• The company operates two manufacturing facilities in Meerut, Uttar Pradesh, with an aggregate transformer manufacturing capacity of 19,200 MVA as of March 31, 2026. The facilities have backward integration for manufacturing components such as transformer tanks and radiators, reducing dependence on external vendors.
• The company operates across both transformer manufacturing and EPC businesses, allowing it to undertake equipment supply as well as turnkey projects. Its EPC business covers substations up to 400 kV and transmission lines across 132 kV, 220 kV, and 400 kV.
• The company has supplied transformers and executed EPC projects for government utilities, railways, and private sector customers. As of March 31, 2026, its order book with Power Grid Corporation of India Limited (PGCIL) stood at Rs 573.26 crore, while revenue from central/state utilities and PSUs accounted for 85.37% of its FY26 revenue from operations.
• The company has recorded significant growth in revenue, profit after tax, and EBITDA. Revenue from operations increased from Rs 276.69 crore in FY24 to Rs 450.61 crore in FY25 and Rs 653.84 crore in FY26, while PAT increased from Rs 17.75 crore to Rs 65.12 crore and Rs 129.73 crore during the same period, and EBITDA increased from Rs 31.07 crore to Rs 93.39 crore and Rs 180.42 crore over the same period.

Risks

• The company derives a significant portion of its revenue from its transformer manufacturing business. The segment contributed Rs 545.50 crore (83.43%), Rs 383.79 crore (85.17%), and Rs 143.20 crore (51.75%) to revenue from operations in FY26, FY25, and FY24, respectively, with power transformers accounting for Rs 373.28 crore (57.09%), Rs 242.24 crore (53.76%), and Rs 65.66 crore (23.73%), respectively. Any reduction in demand for transformers, changes in technology or regulations, or failure to successfully manufacture and market its products could adversely affect the company’s business, financial condition, cash flows, and results of operations.
• A significant portion of the company’s revenue from operations is generated from the power transmission, railways, and renewable energy sectors. These sectors contributed Rs 633.14 crore (96.83%), Rs 393.28 crore (87.27%), and Rs 247.09 crore (89.30%) to revenue from operations in FY26, FY25, and FY24, respectively, with power transmission alone contributing Rs 461.09 crore (70.52%), Rs 252.85 crore (56.11%), and Rs 176.45 crore (63.77%). Any economic cyclicality, demand reduction, changes in government policies, trade policies, environmental regulations, or commodity prices affecting these sectors could adversely affect the company’s business, financial condition and results of operations.
• The company derives a significant portion of its revenue from its top 10 customers, which contributed Rs 609.42 crore (93.16%), Rs 436.35 crore (93.88%), and Rs 273.42 crore (95.43%) to revenue from operations in FY26, FY25, and FY24, respectively. Any loss of these customers, reduction in orders, deterioration in their financial condition, or inability to diversify its customer base could adversely affect the company’s business and finances.
• A significant portion of the company’s revenue is dependent on tenders awarded by government entities through competitive bidding. Revenue from government tenders stood at Rs 558.20 crore (85.37%), Rs 288.79 crore (64.09%), and Rs 249.29 crore (90.10%) of revenue from operations in FY26, FY25, and FY24, respectively, while its bid-to-win ratio was 20.00%, 21.05%, and 21.21% during the same periods. Inability to maintain its pre-qualification and bid capabilities, qualify for and win tenders, or any delay, cancellation, reduction in government spending, or adverse changes in government policies could hurt the company’s order book, business, cash flows, financial condition, and results of operations.
• A significant portion of the company’s manufacturing revenue is generated from its Gangol manufacturing facility in Meerut, Uttar Pradesh. The unit contributed Rs 544.70 crore (83.31%), Rs 382.27 crore (84.83%), and Rs 133.24 crore (48.15%) to revenue from operations in FY26, FY25, and FY24, respectively, while the total transformer manufacturing business contributed Rs 545.50 crore (83.43%), Rs 383.79 crore (85.17%), and Rs 143.20 crore (51.75%). Any disruption to the Gangol facility due to fire, natural disasters, power outages, equipment breakdown, labour disputes, regulatory changes or other unforeseen events could adversely affect the company’s manufacturing operations, business and financial condition.
• The company has 34 public shareholders collectively holding 2.08 lakh equity shares who are currently untraceable or unresponsive. Of these, 1.56 lakh equity shares were allotted pursuant to the bonus issue dated September 19, 2025, and the total 2.08 lakh equity shares have been credited to a demat suspense account, as the company has been unable to establish contact with the concerned shareholders. Any adverse response or dispute from such shareholders, or delays in transferring their equity shares to their designated demat accounts after contact is established, could subject the company to additional corporate and regulatory requirements.
• The company is dependent on third-party suppliers for key raw materials such as insulated copper conductor, cold-rolled grain-oriented steel, and transformer oil, and does not enter into long-term supply agreements. Its top 10 suppliers accounted for Rs 336.03 crore (71.49%), Rs 186.45 crore (70.65%), and Rs 143.21 crore (63.03%) of the cost of goods sold in FY26, FY25, and FY24, respectively. Any disruption in supply, increase in raw material prices, deterioration in quality, inability of suppliers to meet delivery schedules, or loss of suppliers could increase procurement costs, disrupt manufacturing, result in under-utilisation of manufacturing facilities, and adversely affect the company’s business, financial condition, and results of operations.
• As of March 31, 2026, the company had contingent liabilities and commitments that had not been provided for in its financial statements, including disputed VAT liabilities of Rs 0.65 crore, disputed GST liabilities of Rs 0.56 crore and disputed non-tax liabilities of Rs 4.25 crore. It also had guarantees including letters of credit of Rs 324.82 crore and capital commitments of Rs 2.02 crore, which could become actual liabilities or require cash outflows if they materialise. Any such occurrence could adversely affect the company’s financial condition, cash flows and results of operations.
• The company is involved in certain outstanding legal and tax proceedings pending before various courts, tribunals and other authorities. These proceedings could divert management’s time and attention and require financial resources for their defence or prosecution, while any unfavourable decision, individually or in aggregate, could adversely affect the company’s reputation, business, cash flows, financial condition and results of operations.
• The company has experienced negative cash flows from operating, investing, and financing activities in the past, with negative cash flows in certain periods attributed to higher inventory and trade receivable levels. Net cash used in investing activities was Rs 21.95 crore, Rs 61.49 crore, and Rs 12.99 crore in FY26, FY25, and FY24, respectively, while net cash used in financing activities was Rs 4.15 crore and Rs 17.69 crore in FY26 and FY25, respectively, and net cash used in operating activities was Rs 16.32 crore in FY24. Any prolonged or significant negative cash flows could result in a shortage of capital and adversely affect the company’s ability to operate its business, implement its growth plans, financial condition and results of operations.
• The company has significant outstanding borrowings and financial obligations, which may increase its financial commitments and affect its liquidity. As of July 31, 2026, its total secured borrowings amounted to Rs 385.56 crore. Any increase in borrowing costs, inability to service its debt or meet its financial obligations, or deterioration in liquidity could adversely affect the company’s financial condition and cash flows.

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