Kanohar Electricals IPO

Established Industry Experience: Kanohar Electricals has been operating since 1972, giving the company more than five decades of experience in transformer manufacturing and the electrical infrastructure industry.

Strong Sector Exposure: The company serves power transmission, power distribution, railways and renewable energy sectors, providing exposure to multiple infrastructure and energy-related markets.

Large Manufacturing Capacity: The company operates two manufacturing facilities in Meerut with an aggregate transformer manufacturing capacity of 19,200 MVA as of March 31, 2026.

RDSO Certification: Kanohar Electricals is one of only four manufacturers in India certified by RDSO for manufacturing 100 MVA, 132 kV Scott transformers, providing specialized capabilities in the railway transformer segment.

Strong Financial Growth: The company's revenue increased from Rs. 457.30 crore in FY2025 to Rs. 662.86 crore in FY2026, while PAT increased from Rs. 65.12 crore to Rs. 129.73 crore.

Dependence on Infrastructure Spending: The company's performance is linked to investments in power transmission, power distribution, railways and renewable energy. Any slowdown in infrastructure spending could negatively affect demand for its products and services.

Raw Material Price Volatility: Transformer manufacturing requires various raw materials and components. Fluctuations in the prices of these inputs could increase production costs and put pressure on the company's profit margins.

Working Capital Requirements: The company proposes to use Rs. 155 crore from the IPO proceeds towards incremental working capital requirements. This indicates that continued business growth may require substantial working capital investment.

Project Execution Risk: The company operates in both transformer manufacturing and EPC activities. Delays, cost overruns or difficulties in executing projects could adversely affect revenue, profitability and cash flows.

Customer and Order Dependence: Large orders and projects can have a meaningful impact on the company's financial performance. Delays, cancellations or a reduction in new orders could affect future growth.