G.V. Electricals

G.V. Electricals Limited was incorporated in 1985 and operates across three business verticals: Network Operation and Maintenance (O&M) Services covering 33kV, 11kV and LT networks including 33/11 kV substation O&M and field tasks like line maintenance and fault rectification; Electrical Infrastructure and Network Development Works for rural and urban electrification projects; and Metering and Meter Management Services including smart meter deployment and AMI infrastructure.

The company holds ISO 9001:2015, 14001:2015, 45001:2018 and SA 8000:2014 certifications and derives the majority of its revenue from repeat customers — primarily state electricity distribution companies (DISCOMs) — providing stable and recurring cash flows. As of June 30, 2026, the company had 34 ongoing projects valued at approximately ₹553.70 Cr providing strong multi-year revenue visibility. It had 4,473 employees including 4,332 permanent staff and 141 contract workers as of May 31, 2026. Promoters Jawed Akhtar, Sunil Lakshman Vatsa and Furquan Akhtar hold 95.65% pre-issue stake.

The issue comprises a fresh issue of ₹39 Cr and OFS of ₹3.25 Cr at a price band of ₹123 to ₹130 per share with a lot size of 1,000 shares implying a post-issue market cap of ₹146.63 Cr, listing on BSE SME on August 7, 2026.

Proceeds will fund debt repayment (₹6 Cr), working capital (₹22 Cr) and general corporate purposes (₹7.36 Cr balance). At the upper band the post-issue P/E of 14.01x FY26 earnings is well within the range of recently listed sector peers (9.42x to 19.20x) and supported by a strong order book of ₹553 Cr providing 3.5x revenue coverage. Key strengths include 40-year operational track record, strong repeat customer base among DISCOMs, ₹553 Cr order book, government RDSS and electrification tailwinds, improving EBITDA margins from 5.48% to 10.90% over FY24-26 and 125% PAT growth in FY26; key risks include thin EBITDA margins of 10.90% typical for O&M services, working capital-intensive business model, high customer concentration in government utilities, and PAT of only ₹10.47 Cr on ₹156.66 Cr revenue leaving limited room for margin compression.