| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹601 to ₹632 | 23 | 08th Sep, 2026 – 10th Sep, 2026 | ₹1056 Cr |
Kanohar Electricals Limited
Kanohar Electricals Limited is a manufacturer of transformers and an EPC service provider, catering to the power transmission, railways, renewable energy, and power distribution sectors. The company manufactures power, traction, Scott-connected and distribution transformers, as well as shunt reactors, while its EPC business undertakes turnkey projects for substations and transmission lines. Its products are used across the power value chain, with power transformers primarily serving transmission utilities, traction and Scott transformers catering to railway electrification, and shunt reactors supporting grid stability in renewable energy projects. Transformer manufacturing is the key revenue contributor, accounting for 83.4% of revenue from operations in FY26, with power transformers contributing 57.1%, Scott transformers 25.3%, traction transformers 0.9% and other transformer products 0.1%; EPC contributed the remaining 16.4%, comprising transmission lines at 9.7% and substations at 6.8%. The company operates two manufacturing facilities in Meerut, Uttar Pradesh, with an annual transformer manufacturing capacity of 19,200 MVA. It has developed capabilities in high-voltage transformers up to 500 MVA and 400 kV and is among a select group of Indian manufacturers with the requisite short-circuit certification for such transformers, enabling it to qualify for large power transmission orders.
Objective of Kanohar Electricals Limited
- The company proposes to utilize the proceeds from the issue towards the following objects:
- Funding the capital expenditure requirements of the company;
- Purchase of new machinery and equipment for manufacturing facility located in Gangol, Meerut, Uttar Pradesh;
- Civil construction and interior development of an office building at the Gangol Manufacturing Facility; and
- Enhancing sustainability initiatives by (a) setting up of solar power plants at our manufacturing facility located in Rithani,and Gangol Manufacturing Facility, and (b) purchasing electric trucks and forklifts at the Gangol Manufacturing Facility.
- Funding incremental working capital requirements of the company; and
- General corporate purposes.
Rationale To Kanohar Electricals Limited
Investment Rationale
Established transformer manufacturer with strong high-voltage capabilities positioned to benefit from structural growth in power infrastructure
Kanohar Electricals is well positioned to benefit from the growing demand for transformers, supported by its 40+ years of operating experience, established customer relationships and presence across high-growth end markets including power transmission, railways, renewable energy, and power distribution. The company has capabilities across a wide voltage range and, as of March 31, 2026, was among only five companies in India with short-circuit test certification for 500 MVA, 400 kV transformers, enabling it to compete for large and high-value transmission contracts. Its strong positioning is also evident in the railway segment, where it is among only four Indian manufacturers certified by RDSO for 100 MVA, 132 kV Scott transformers and one of two certified for 100 MVA, 220 kV Scott transformers. Importantly, the company’s revenue mix is increasingly skewed towards higher-voltage transformers, with >400 kV transformers contributing 52.2% of revenue from operations in FY26, up from 31.3% in FY25 and 10.3% in FY24, reflecting its increasing participation in large-value transmission projects. This positioning provides exposure to structural growth in India’s transmission network, railway electrification and renewable energy capacity, while its established certifications and testing capabilities create entry barriers and enable participation in a relatively limited pool of qualified tenders. The recent Rs. 568.7 crore order from POWERGRID for 500 MVA, 400 kV transformers further demonstrates the company’s ability to translate these capabilities into large orders.
Integrated transformer manufacturing and EPC capabilities broaden addressable market and enhance order-win potential
Kanohar Electricals’ integrated business model provides it with a competitive advantage by allowing the company to participate in a broader range of power infrastructure opportunities than standalone transformer manufacturers. Having entered EPC for substations in 2013 and transmission lines up to 400 kV in 2021, the company can offer customers single-window solutions spanning equipment supply, installation, and commissioning, enabling it to participate in both standalone transformer orders and larger turnkey projects. This capability is particularly relevant for hybrid contracts where customers require both transformers and EPC services, allowing Kanohar to capture a higher share of overall project value while strengthening customer relationships. The EPC business contributed 16.4% of FY26 revenue, complementing the core transformer manufacturing business, which contributed 83.4%. Further, the ability to combine manufacturing and EPC capabilities broadens the company’s addressable market to include turnkey projects from transmission utilities and railways, as well as high-value substation augmentation projects, thereby improving its opportunity set and reducing dependence on standalone transformer orders.
Valuation of Kanohar Electricals Limited
Kanohar Electricals is a leading transformer manufacturer with an established presence across power transmission, railways, renewable energy, and power distribution, with its positioning increasingly shifting towards high-voltage and high-value transformer products. The company’s growth prospects remain favourable, supported by the expected expansion of India’s transformer market, which is projected to grow at a 6.7% CAGR during CY25-CY30, while the extra-high-voltage and ultra-high-voltage segments are expected to grow at 9.3% and 9.0% CAGRs, respectively. Kanohar is well placed to capitalise on these trends through its capabilities in 500 MVA, 400 kV transformers, planned capacity expansion of 18,000 MVA, and investments in automation and backward integration. The company’s revenue from operations, EBITDA and PAT grew at a strong CAGR of 53.7%, 141.0% and 170.3%, respectively, during FY24-FY26, aided by the sharp increase in high-voltage transformer sales, with transformers above 400 kV contributing 52.2% of revenue in FY26 compared with 10.3% in FY24. This shift towards higher-value products, along with operating leverage and better capacity utilisation, has resulted in EBITDA margin expanding from 11.2% in FY24 to 27.6% in FY26, while PAT margin improved from 6.4% to 19.8%. At the upper price band of Rs. 632, the issue is valued at 36.3x FY26 P/E based on diluted EPS of Rs. 17.4 and 27.4x FY26 EV/EBITDA. The valuation remains largely below the peer-group multiples, particularly on an EV/EBITDA basis, providing reasonable valuation comfort. Considering the company’s strong earnings growth, improving margins, increasing exposure to high-voltage transformers and favourable industry outlook, we believe the valuation is reasonable and recommend a “SUBSCRIBE” rating to the issue.
What is the Kanohar Electricals Limited IPO?
The initial public offer (IPO) of Kanohar Electricals Limited an early investment opportunity in. A stock market investor can buy Kanohar Electricals Limited IPO shares by applying in IPO before Kanohar Electricals Limited get listed at the stock exchanges. An investor could invest in Kanohar Electricals Limited for short term listing gain or a long term.
How to apply for the Kanohar Electricals Limited IPO through StoxBox?
To apply for the Kanohar Electricals Limited IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Kanohar Electricals Limited IPO open?
Kanohar Electricals Limited IPO is opening on 08th Sep 2026. Apply Now
What is the lot size of the Kanohar Electricals Limited IPO?
The Lot Size of Kanohar Electricals Limited 23 equity shares. Login to your account now.
When is the Kanohar Electricals Limited IPO allotment date?
The allotment Date for Kanohar Electricals Limited IPO 11th Sep 2026. Login to your account now.
When is the Kanohar Electricals Limited IPO listing date?
The listing Date for Kanohar Electricals Limited is 16th Sep 2026. Login to your account now
What is the minimum investment required for the Kanohar Electricals Limited IPO?
In the Retail segment the minimum investment required is Rs 14,536 Login to your account now
What is the maximum investment allowed for Kanohar Electricals Limited IPO?
In the Retail segment the maximum investment requirement Rs 1,88,968 Login to your account now
What are the risks associated with investing in the Kanohar Electricals Limited IPO?
- Kanohar Electricals’ significant dependence on the power transmission, railways, and renewable energy sectors exposes it to economic cyclicality, reduced demand, or adverse trends in these sectors, which could negatively impact its business, financial performance, and results of operations.
- Kanohar Electricals’ transformer manufacturing capacity utilization stood at 46.0% in FY26, despite improving from 29.7% in FY25, exposing the company to the risk of operational inefficiencies if demand does not support higher utilization. Capacity utilization remains dependent on customer demand, availability of raw materials and uninterrupted operations. Any decline in demand, prolonged operational disruptions, or inability to fully utilize expanded capacity could adversely affect the company’s business, profitability and returns.
- The company’s top 10 customers accounted for 93.2% of revenue from operations in FY26, compared with 93.9% in FY25 and 95.4% in FY24, indicating a high dependence on a limited customer base. Any loss of key customers, reduction in order volumes or inability to diversify its customer base could adversely impact the company’s revenue, business performance and financial condition.
When will the Kanohar Electricals Limited IPO shares be credited to my Demat account?
The Kanohar Electricals Limited will be credited to the account on allotment date which is 11th Sep 2026. Login to your account now
Where can I find the Kanohar Electricals Limited IPO prospectus?
The prospectus of Kanohar Electricals Limited IPO prospectus can be found on the website of SEBI, NSE and BSE
