Johnsoncab Electricals Limited IPO

Johnsoncab Electricals Limited IPO is open till 3 Nov 2026. Price band ₹190–₹200, lot 600 shares, GMP +₹13 (6.5%). Check dates and allotment, and apply for your whole family on Allotly.

About Johnsoncab Electricals Limited

Johnsoncab Electricals Limited is engaged in the manufacturing of low-voltage wires and cables with voltage ratings of up to 1.1 kV. The company was originally established as a partnership firm in 2012 and manufactures and sells its products under the brand name ‘Johnson Cables.' Its product portfolio includes power cables, housing and building wires, industrial single-core and multicore control cables, submersible flat cables, solar and photovoltaic cables, and welding cables. These products are used across sectors such as power generation, transmission and distribution, renewable energy, railways, construction, manufacturing, agriculture and industrial operations. The company operates two manufacturing units in Mehsana, Gujarat, with a combined annual installed capacity of 79,950 kilometres as of FY26. Its manufacturing processes include wire drawing, annealing, bunching, insulation…

Strengths

• Johnsoncab Electricals has reported consistent growth in revenue from operations, increasing from Rs 88.34 crore in FY24 to Rs 139.79 crore in FY25 and Rs 210.47 crore in FY26. Its profit after tax (PAT) also increased from Rs 2.52 crore in FY24 to Rs 5.46 crore in FY25 and Rs 13.42 crore in FY26.
• The company invested Rs 9.84 crore in FY24, Rs 1.65 crore in FY25, and Rs 16.90 crore in FY26 in plant, machinery, equipment, factory buildings, and sheds. As of March 31, 2026, its two manufacturing units had a combined annual installed capacity of 79,950 kilometres of wires and cables. These investments support increased production capacity and the manufacture of different cable specifications.
• The company generates revenue from both private entities and government customers. Revenue from public sector units and state government agencies increased from Rs 4.92 crore (5.57%) in FY24 to Rs 25.98 crore (18.58%) in FY25 and Rs 39.75 crore (18.89%) in FY26. Revenue from private entities stood at Rs 83.41 crore, Rs 113.81 crore, and Rs 170.72 crore, respectively. This provides the company with access to business opportunities across both customer segments.
• The company holds Indian Patent No. 420982 for an improved three-core double-insulated flat electrical cable for submersible pumps. The patent was granted on February 8, 2023, and is valid until June 30, 2042, subject to payment of renewal fees. This provides intellectual property protection for a specialised product in its submersible cable portfolio.
• The company has vendor registrations and approvals with organisations including Western Railway, Uttar Gujarat Vij Company Limited (UGVCL), Jaipur Vidyut Vitran Nigam Limited (JVVNL), Gujarat State Road Transport Corporation (GSRTC), and Gujarat's Roads and Buildings Department. These registrations allow it to participate in eligible tenders for supplying wires and cables, subject to applicable tender requirements.
• The company manufactures photovoltaic DC solar cables and aluminium solar earthing wires. Its revenue from the renewable energy sector increased from Rs 18.03 crore (20.41% of revenue from operations) in FY24 to Rs 23.25 crore (16.63%) in FY25 and Rs 48.91 crore (23.24%) in FY26. This provides exposure to demand from renewable energy projects and reduces reliance on traditional cable applications.
• The company states that its manufacturing facilities are certified under ISO 9001:2015 for quality management systems, ISO 14001:2015 for environmental management systems and ISO 45001:2018 for occupational health and safety management systems.
• Its cost of goods sold (COGS) as a percentage of revenue declined from 90.50% in FY24 to 88.25% in FY25 and 85.12% in FY26. The declining COGS ratio indicates improved cost efficiency, which can support operating margins.

Risks

• The company does not have long-term agreements with most of its raw material suppliers. Purchases from its top 10 suppliers amounted to Rs 30.00 crore (36.38%) in FY24, Rs 76.54 crore (64.05%) in FY25 and Rs 97.48 crore (49.30%) in FY26. The company also does not hedge against fluctuations in copper, aluminum, and other raw material prices. Any supply disruption or increase in raw material costs that cannot be passed on to customers could affect production, profitability, and cash flows.
• The company generates a significant portion of its revenue from a limited number of customers. Its top 10 customers contributed Rs 24.89 crore (28.18%) in FY24, Rs 72.50 crore (51.87%) in FY25 and Rs 139.41 crore (66.24%) in FY26. The company does not have long-term or exclusive arrangements with these customers. The loss of major customers or a reduction in their orders could significantly affect revenue, profitability, and cash flows.
• The company generates a substantial portion of its revenue from Gujarat. Revenue from the state amounted to Rs 68.40 crore (77.43%) in FY24, Rs 98.55 crore (70.50%) in FY25, and Rs 149.24 crore (70.91%) in FY26. Any adverse changes in regional demand, infrastructure spending, government policies, or economic conditions could affect the company's sales and profitability.
• The company had outstanding borrowings of Rs 79.88 crore as of March 31, 2026, with a debt-to-equity ratio of 2.54 times. Its high debt obligations could divert cash flows towards interest and principal repayments, restrict additional borrowing, and limit funds available for working capital and expansion. Any inability to service or refinance its borrowings could adversely affect its financial condition and operations.
• The company derives a substantial portion of its revenue from the railway and renewable energy sectors. These sectors collectively contributed Rs 22.94 crore (25.97%) in FY24, Rs 49.13 crore (35.15%) in FY25 and Rs 88.64 crore (42.12%) in FY26, based on the disclosed industry-wise figures. Any slowdown in railway projects, renewable energy investments, or related government expenditure could reduce demand for its products and affect revenue and profitability.
• The company reported negative cash flows from operating activities of Rs 4.26 crore in FY24, Rs 1.73 crore in FY25, and Rs 19.70 crore in FY26. The negative cash flow in FY26 was primarily due to increased working capital requirements arising from business expansion, higher inventories of Rs 26.54 crore and higher trade receivables of Rs 16.03 crore. It also reported negative cash flows from investing activities of Rs 9.91 crore, Rs 3.39 crore, and Rs 16.69 crore, respectively. Continued negative operating cash flows could increase dependence on external financing and affect the company's ability to fund operations, repay borrowings and execute expansion plans.
• The company's Unit I contributed Rs 88.34 crore (100%) in FY24, Rs 130.36 crore (93.25%) in FY25, and Rs 146.88 crore (69.79%) in FY26. Although the contribution from Unit II has increased, Unit I remains the largest revenue-generating facility. Any breakdown, shutdown, or production disruption at Unit I could affect order execution, sales, and profitability.
• The company's inventories increased from Rs 20.57 crore in FY24 to Rs 24.61 crore in FY25 and Rs 51.15 crore in FY26. Trade receivables also increased from Rs 11.61 crore to Rs 21.32 crore and Rs 37.36 crore, respectively, while receivables as a percentage of revenue rose from 13.14% to 15.25% and 17.75%. Failure to manage inventory or collect customer payments on time could increase working capital requirements, borrowing costs, and liquidity pressure.

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