Kanohar Electricals

Kanohar Electricals Limited manufactures customised transformers and provides EPC solutions for substations and transmission lines. Its product portfolio includes power transformers, traction transformers, Scott transformers, shunt reactors and distribution transformers. The company operates two manufacturing facilities at Rithani and Gangol in Meerut, Uttar Pradesh, with an aggregate transformer manufacturing capacity of 19,200 MVA as of September 30, 2025. It has five regional offices in Delhi NCR, Mumbai, Kolkata, Bengaluru and Chennai and had more than 497 employees as of September 30, 2025. The company is one of four manufacturers in India certified by the Research Designs and Standards Organisation for manufacturing 100 MVA 132 kV Scott transformers for railway electrification. Its order book stood at ₹1,635.56 crore, with transformer manufacturing contributing 83.42% and government customers accounting for 95.56% of the order book. The promoters are Dinesh Singhal, Adesh Singhal, Vivek Singhal, Abhishek Singhal, Virat Singhal and Aditya Singhal, along with K Sons Family Trust.

Kanohar Electricals IPO comprises a fresh issue of ₹300 crore and an offer for sale of ₹755.74 crore, for a total issue size of ₹1,055.74 crore, at a price band of ₹601 to ₹632 per share. The company proposes to use the net proceeds from the fresh issue for capital expenditure of ₹66.74 crore, incremental working capital requirements of ₹130 crore and general corporate purposes. At the upper price band, the IPO is valued at around 38.58 times FY2026 post-issue earnings based on the diluted EPS of ₹16.38, while the FY2026 pre-issue EPS is ₹17.43. The company has reported strong improvement in profitability, with revenue increasing to ₹457.30 crore in FY2025 and profit after tax rising to ₹65.12 crore, while the supplied IPO data reports FY2026 revenue of ₹653.84 crore and PAT of ₹129.71 crore. Key strengths include strong order book visibility, exposure to power infrastructure and railways, specialised transformer capabilities and improving return ratios, while key risks include dependence on government customers and the capital-intensive nature of the transformer and EPC businesses. The IPO is priced at a premium to the company's FY2025 earnings but compares favourably with several listed transformer and power equipment companies on growth and return metrics. The fair-value assessment depends on sustaining the recent earnings growth and margins, making the IPO more suitable for investors comfortable with sector cyclicality and execution risk.