Kanohar Electricals returned to the public market after sixteen years with a ₹1,055.74 crore IPO priced at ₹601–₹632. Qualified institutional buyers led demand at 215.37x their quota, pushing total subscription to 90.59x and signalling a grey market premium around 36–38%.
Incorporated in 1972 and listed in 1995, Kanohar exited BSE, DSE and UPSE by July 2010 citing illiquidity. The company returning in 2026 is transformed: from regional distribution transformers to extra-high-voltage 500 MVA, 400 kV grid equipment led by IIT Roorkee alumnus Dinesh Singhal.
CEA projects peak demand to exceed 400 GW by 2030 and 458 GW by 2032, with 500 GW non-fossil capacity targeted by 2030. Transmission investments are pegged at ₹9.15 lakh crore by 2032, pulling procurement toward 400 kV and 765 kV corridors where Kanohar operates.
Kanohar is one of only five Indian manufacturers with dynamic short-circuit certification for 500 MVA, 400 kV auto-transformers, and one of four with RDSO approval for 100 MVA Scott-connected traction transformers. Only two hold the 220/2x55 kV variant, creating an oligopoly in high-margin utility tenders.
Backlog jumped from ₹595.85 crore in FY24 to ₹861.47 crore in FY25, then surged 111% to ₹1,818.32 crore in FY26. A landmark ₹568.67 crore PGCIL order for 500 MVA 400 kV transformers arrived in June 2025.
Revenue from operations grew at a 53.72% CAGR from ₹276.69 crore in FY24 to ₹653.84 crore in FY26. EBITDA margin climbed from 11.23% to 27.59%, while PAT margin rose from 6.32% to 19.57%, driven by 400 kV and Scott-connected units rising above 52% of revenue.
FY26 net profit was ₹129.73 crore, but CFO was only ₹25.84 crore — a 19.92% cash conversion ratio. The gap reflects working capital absorbed by imported CRGO steel and copper: ₹114.15 crore in inventory and ₹210.79 crore in trade receivables.
An order book worth about 2.7x trailing revenue gives multi-year visibility. Utilization is only 46%, leaving room to scale without disruptive capex; ROE is 42.12%, ROCE 70.13%, and net debt-to-equity is just 0.10x. Fresh IPO funds of ₹155 crore target the working capital bottleneck.
Top 10 customers make up 93.16% of FY26 revenue, and one customer alone is 31.28%. Both factories sit in Meerut; CRGO steel is imported; government capex is cyclical. A 2024 Delhi High Court dispute over delayed deliveries shows client risks are real.
Kanohar is a leveraged play on India's 400 kV and railway electrification super-cycle, with elite margins and a rational valuation case. But cash flow lumpiness and customer concentration demand risk appetite. Read the full deep dive for the complete valuation and risk matrix.
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