Is Kanohar Electricals IPO Good or Bad – Detailed Review

Kanohar Electricals Limited’s IPO is set to open its initial public offering from September 08, 2026, to September 10, 2026. When considering applying for this IPO, potential investors might have questions about whether the Kanohar Electricals IPO is a good investment and if it's worth subscribing to.

This article provides a comprehensive analysis of the Kanohar Electricals IPO, covering its business operations and a fundamental analysis of its RHP to help you make an informed investment decision.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Kanohar Electricals IPO Review

Kanohar Electricals Limited's IPO is open for subscription from September 08, 2026, to September 10, 2026, with the company proposing to list its equity shares on NSE and BSE.

They bring over four decades of engineering and manufacturing heritage. Headquartered in Meerut, Uttar Pradesh and operate two manufacturing facilities in Meerut, Uttar Pradesh, with an aggregate installed capacity of 19,200 MVA: Rithani Manufacturing Facility and Gangol Manufacturing Facility.

The company operates across two core business segments:

• Transformer Manufacturing Segment (83.43% of FY26 Revenue)

• Engineering, Procurement, and Construction (EPC) Segment (16.44% of FY26 Revenue)

Consolidated revenue from operations grew from Rs 276.69 crore in FY24 to Rs 450.61 crore in FY25 and reached Rs 653.84 crore in FY26 (53.72% CAGR).

Profit After Tax (PAT) stood at Rs 17.76 crore in FY24, Rs 65.12 crore in FY25, and surged to Rs 129.73 crore in FY26 (170.31% CAGR).

Operating margins have witnessed substantial expansion, with EBITDA margins improving from 11.23% in FY24 to 20.73% in FY25, and reaching 27.59% in FY26.

Key strengths include short-circuit certified technology for high-voltage transformers (up to 500 MVA 400 kV), an integrated "Manufacturing + EPC" turnkey delivery model, backward integration for transformer tanks and radiators, an extensive Rs 1,818.32 crore order book, and outstanding capital efficiency (RoE of 42.12% and RoCE of 70.13% in FY26).

Main risks include high customer concentration (top 10 customers contributed 93.16% of FY26 revenue), heavy revenue dependency on central and state government tenders (85.37% of FY26 revenue), working capital intensity with elevated debtor days (114 days in FY26), geographical manufacturing concentration in Meerut, and raw material price volatility (copper, CRGO steel, transformer oil).

The IPO consists of a fresh issue of up to Rs 300 crore and an offer for sale valued at Rs 756 crore.

Shares are priced in the Kanohar Electricals IPO price band of Rs 78 to Rs 82 per share, with a minimum lot size of 182 shares.

Company Overview of Kanohar Electricals IPO

Kanohar Electricals Limited is an established domestic player in the high-voltage transformer and substation infrastructure space.

The company serves central and state power transmission utilities (such as Power Grid Corporation of India Limited, GETCO Gujarat, Rajasthan RRVPNL, and MAHATRANSCO), Indian Railways, renewable energy developers, and large private EPC contractors.

The company’s operations are built on two pillars:

Manufacturing Division: They supply specialized equipment engineered to customer specifications across five core categories:

• Power Transformers

• Scott-Connected Transformers

• Traction Transformers

• Shunt Reactors

• Distribution Transformers

EPC Division: Executes turnkey air-insulated substations (AIS), gas-insulated substations (GIS), bay augmentation up to 400 kV, and overhead transmission line installation across 132 kV to 400 kV networks.

As of 2026, these segments are supported by two operational manufacturing units in Meerut, Uttar Pradesh (aggregate 19,200 MVA installed capacity), backward-integrated tank and radiator fabrication plants, five regional sales offices (Delhi, Mumbai, Kolkata, Bengaluru, and Chennai), and an in-house NABL-accredited testing laboratory.

The total order book stood at Rs 1,818.32 crore as of March 31, 2026 (2.78x FY26 revenue). 89.19% of the order book comes from the Transformer Manufacturing segment, and the remaining 10.81% comes from the EPC segment. Government and PSU contracts constitute 93.62% of the order book.

Industry Overview of Kanohar Electricals IPO

India's power transmission and transformer sectors are experiencing multi-year tailwinds driven by rapid renewable energy grid integration, national railway electrification, urban metro expansions, and the replacement of aging grid assets.

Source: CARE Industry Research Report included in the Kanohar Electricals Limited RHP.

• Surge in Grid Capital Outlay: Under the National Electricity Plan (2022–2032), India aims to expand its transmission network, requiring investments of Rs 9.15 lakh crore.

• Renewable Integration Demands: The Government of India’s target of 500 GW non-fossil capacity by 2030 requires substantial investments in green energy corridors.

• Rail Modernization & Electrification: Indian Railways reached 99.60% electrification of broad-gauge routes by FY26. Rollouts of high-speed passenger corridors, Vande Bharat, and Namo Bharat (RRTS) networks are driving demand.

• High Entry Barriers in High-Voltage: Extra High Voltage transformers require mandatory short-circuit testing at accredited high-power test facilities and strict utility vendor empanelment.

Financial Overview of Kanohar Electricals IPO

Note: Financial figures are derived from the Restated Financial Information in the Kanohar Electricals Limited RHP.

• Revenue from Operations: Revenue stood at Rs 276.69 crore in FY24, grew to Rs 450.61 crore in FY25, and reached Rs 653.84 crore in FY26, driven by higher execution volumes of 500 MVA 400 kV power transformers and commercial scale-up of 100 MVA Scott transformers.

• EBITDA Margin: Operating EBITDA margin expanded from 11.23% in FY24 to 20.73% in FY25 and 27.59% in FY26, driven by backward integration, operating leverage, and a strategic shift towards higher-margin high-voltage product offerings.

• Profit After Tax (PAT): PAT increased from Rs 17.76 crore in FY24 to Rs 65.12 crore in FY25 and surged to Rs 129.73 crore in FY26, with net profit margins widening to 19.57%.

• Return Metrics (RoE & RoCE): Kanohar delivered superior capital efficiency with reported RoE at 42.12% and RoCE at 70.13% in FY26.

Strengths and Risks of Kanohar Electricals IPO

Let's examine the strengths and weaknesses to determine whether the Kanohar Electricals IPO is good or bad for investors.

Strengths

• Technical Moat with Short-Circuit Test Accreditations: Kanohar is one of only five manufacturers in India to have passed short-circuit test certifications for 500 MVA 400 kV transformers.

• Robust Order Book Providing Multi-Year Revenue Visibility: Holds a healthy order book of Rs 1,818.32 crore as of March 31, 2026 (2.78x FY26 Revenue), which includes a Rs 568.67 crore order from Power Grid Corporation of India.

• Synergistic "Manufacturing + EPC" Integrated Model: Combines equipment manufacturing with turnkey substation and transmission line construction up to 400 kV. This dual capability allows Kanohar to bid for bundled utility tenders where standalone equipment suppliers are technically ineligible.

• Backward Integration Driving Margin Expansion: In-house fabrication of transformer tanks and pressed-steel radiators reduces dependency on third-party vendors, shortens delivery lead times, enforces strict quality control.

• Lean Balance Sheet with High Return Ratios: Operates with low financial leverage (Gross Debt-to-Equity of 0.10x and Gross Debt-to-EBITDA of 0.22x in FY26) while generating return metrics (RoE of 42.12% and RoCE of 70.13%).

Risks

• High Customer Concentration Risk: The top 10 customers contributed 93.16%, 93.88%, and 95.43% of total revenue from operations in FY26, FY25, and FY24, respectively.

• Heavy Dependency on Government Tenders & State Discoms: Tenders awarded by central and state government entities accounted for 85.37% of FY26 revenue from operations.

• Working Capital Intensity & Extended Debtor Days: Working capital requirements are substantial due to retention money. Trade receivables stood at Rs 210.79 crore in FY26 (114 debtor days), and net working capital days were 107 days.

• Geographical Concentration of Manufacturing: Both operational manufacturing units are situated in Meerut, Uttar Pradesh, exposing production to regional interruptions, local supply chain bottlenecks, or localized regulatory actions.

• Raw Material Price Volatility Exposure: Primary raw materials (insulated copper conductor, CRGO electrical steel, and transformer oil) constitute 56.80% of revenue from operations.

Strategies of Kanohar Electricals IPO

• Augment Transformer Manufacturing Capacity: Deploy fresh issue proceeds to add an incremental 18,000 MVA capacity at the Gangol plant, scaling up production of 500 MVA 400 kV power transformers and Scott transformers to address rising grid demand.

• Automate and Expand Backward Integration: Install an automated radiator manufacturing line and high-precision insulation component CNC milling machines at the Gangol Facility.

• Expand into Ultra-High-Voltage Offerings: Leverage Gangol facility's engineering capability to explore commercial bidding for 765 kV class power transformers and reactors, entering the fastest-growing segment in interstate transmission.

• Strengthen New Product Development for High-Speed Rail: Expand technical offerings tailored for railway electrification, including specialized ‘V-connected’ and auto-transformers designed for high-speed passenger and dedicated freight networks.

• Ensure Supply Chain Security: Deploy Rs 155 crore from IPO proceeds toward incremental working capital to support faster procurement cycles and advance payments for critical inputs like copper and CRGO steel.

Kanohar Electricals IPO vs. Peers

The RHP provides a comparison of Kanohar Electricals against listed peers in the Indian power transmission and electrical equipment industry for FY26:

Note: Sourced from Kanohar Electricals Limited RHP. Peer figures are consolidated FY26 data.

Objectives of Kanohar Electricals IPO

Kanohar Electricals' IPO consists of a fresh issue of up to Rs 300 crore and an offer for sale (OFS) of up to Rs 756 crore by K Sons Family Trust.

The net proceeds from the Fresh Issue are proposed to be utilized as follows:

• Capital Expenditure Requirements: Rs 64.18 crore

• Funding Incremental Working Capital Requirements: Rs 155 crore

• General Corporate Purposes: Remaining funds (capped at 25% of gross issue proceeds).

Kanohar Electricals IPO Details

IPO Dates

Kanohar Electricals IPO will be open for subscription from September 08, 2026, to September 10, 2026. The allotment of shares to investors will take place on Septmeber 11, 2026, and the company is expected to be listed on the NSE and BSE on September 16, 2026.

IPO Issue Price

Kanohar Electricals is offering its shares in the price band of Rs 601 to Rs 632 per share. This means you would require an investment of Rs 14,536 per lot (23 shares) if you are bidding for the IPO at the upper price band.

IPO Size

Kanohar Electricals is launching a total issue of Rs 1,056 crore, comprising a fresh issue of up to Rs 300 crore, with an offer for sale of up to Rs 756 crore.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on September 11, 2026, through the registrar's website, MUFG Intime India Private Limited, BSE, NSE, or a stockbroker platform.

IPO Listing Date

The shares of Kanohar Electricals are expected to be listed on the NSE and BSE on September 16, 2026.

IPO Application Link

Open demat account with Rupeezy today and enjoy a seamless experience when applying for the IPO. With an easy-to-use platform, Rupeezy makes the IPO application process quick and hassle-free.

Apply for Kanohar Electricals IPO