Kanohar Electricals' ₹1,055.74 crore IPO closed with 90.59x overall subscription. Institutional demand hit 215.37x, HNIs 87.74x, retail 20.51x. Grey market signals a listing near ₹850–872.
Kanohar is a Meerut-based transformer maker returning to public markets after sixteen years. It is one of only five Indian manufacturers certified for dynamic short-circuit testing of 500 MVA, 400/220/33 kV extra-high-voltage auto-transformers.
India's peak electricity demand hit 243 GW in 2024 and is projected to reach 458 GW by 2032. The transmission plan calls for ₹9.15 lakh crore of investment by 2032 and 8,27,600 MVA of substation capacity for the 900 GW renewable target.
Listed in 1995, Kanohar left the bourses in 2010 due to chronic illiquidity. Now led by Dinesh Singhal, it has moved from distribution transformers to EHV grid architecture, with a Meerut plant rated up to 500 MVA and 400 kV.
The 500 MVA short-circuit certification and RDSO approval for 100 MVA Scott-connected transformers place Kanohar in an oligopolistic tier. A landmark ₹568.67 crore PGCIL order for 500 MVA, 400 kV transformers followed in June 2025.
Revenue from operations rose from ₹276.69 crore in FY24 to ₹653.84 crore in FY26, a 53.72% CAGR. EBITDA margin expanded from 11.23% to 27.59%. Capacity utilization is only 46%, leaving room to scale.
Confirmed orders grew from ₹861.47 crore in FY25 to ₹1,818.32 crore in FY26—about 2.7x trailing revenue. Roughly 93–95% of orders come from sovereign-backed power and rail entities.
Kanohar reported 42.12% ROE and 70.13% ROCE in FY26. Borrowings were ₹39.04 crore against net worth of ₹372.84 crore, a 0.10x debt-to-equity ratio. The ₹300 crore fresh issue allocates ₹155 crore to working capital and ₹64.18 crore to capex.
FY26 net profit was ₹129.73 crore, but operating cash flow was only ₹25.84 crore—a 19.92% cash conversion ratio. Top 10 customers were 93.16% of revenue, with one at 31.28%. Heavy working capital absorbs cash.
Kanohar sits at the center of India's EHV transmission and railway electrification push, with a certified moat and a 46% utilization runway. The full article maps the cash-flow, concentration, and execution risks in the prospectus.
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