{"id":14803,"date":"2026-09-08T06:53:57","date_gmt":"2026-09-08T06:53:57","guid":{"rendered":"https:\/\/www.incredmoney.com\/blog\/?p=14803"},"modified":"2026-09-09T06:59:16","modified_gmt":"2026-09-09T06:59:16","slug":"kanohar-electricals-ipo","status":"publish","type":"post","link":"https:\/\/www.incredmoney.com\/blog\/kanohar-electricals-ipo\/","title":{"rendered":"Kanohar Electricals IPO: Powering India\u2019s Transformation"},"content":{"rendered":"<p><em>Kanohar Electricals Limited is launching an IPO. The company runs a power transformer manufacturing and EPC business, designing, manufacturing and installing power transformers, traction transformers, shunt reactors and distribution transformers, alongside EPC works for substations and transmission lines.<\/em><\/p>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"ipo-summary\">IPO Summary<\/h2>\n<div class=\"captioned-image-container\">\n<figure>\n<div class=\"image2-inset\"><picture><source srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!h1TV!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F0036f540-a33f-4e1e-be5d-067f4cbf05c3_872x642.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!h1TV!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F0036f540-a33f-4e1e-be5d-067f4cbf05c3_872x642.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!h1TV!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F0036f540-a33f-4e1e-be5d-067f4cbf05c3_872x642.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!h1TV!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F0036f540-a33f-4e1e-be5d-067f4cbf05c3_872x642.png 1456w\" type=\"image\/webp\" sizes=\"100vw\" \/><img decoding=\"async\" class=\"sizing-normal\" src=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!h1TV!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F0036f540-a33f-4e1e-be5d-067f4cbf05c3_872x642.png\" sizes=\"100vw\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!h1TV!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F0036f540-a33f-4e1e-be5d-067f4cbf05c3_872x642.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!h1TV!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F0036f540-a33f-4e1e-be5d-067f4cbf05c3_872x642.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!h1TV!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F0036f540-a33f-4e1e-be5d-067f4cbf05c3_872x642.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!h1TV!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F0036f540-a33f-4e1e-be5d-067f4cbf05c3_872x642.png 1456w\" alt=\"\" width=\"560\" height=\"412.29357798165137\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/0036f540-a33f-4e1e-be5d-067f4cbf05c3_872x642.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:642,&quot;width&quot;:872,&quot;resizeWidth&quot;:560,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\" \/><\/picture><\/div>\n<\/figure>\n<\/div>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"introduction\">Introduction<\/h2>\n<p>India is building its power grid at a pace it has not seen before. In FY26 alone, the country added roughly 12,000 circuit kilometres of transmission lines, with 143,000 more circuit kms expected by FY32.<\/p>\n<p>Every one of those lines needs a transformer at each end. Few Indian manufacturers can build the transformers that this build-out needs. In fact, only\u00a0<strong>five<\/strong>\u00a0companies in India held the short circuit test certification for 500 MVA, 400 kV transformers.<\/p>\n<p><strong>Kanohar Electricals Limited is one of them<\/strong>. The Meerut-based manufacturer has been in the transformer business for over 40 years.<\/p>\n<p>They\u2019re now going live in an IPO consisting of a Fresh Issue of ~\u20b9300 Cr and an Offer for Sale of ~\u20b9756 Cr from 8th to 10th Sep, 2026.<\/p>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"the-business-model\">The Business Model<\/h2>\n<p>Kanohar runs two segments.:<\/p>\n<ul>\n<li>the\u00a0<strong>Transformer Manufacturing\u00a0<\/strong>business, making up ~83% of revenue in FY26, and<\/li>\n<li>the new\u00a0<strong>EPC Business<\/strong>\u00a0making up the remaining ~17%, split between EPC solutions for\u00a0<strong>substations\u00a0<\/strong>and for\u00a0<strong>transmission lines<\/strong>.<\/li>\n<\/ul>\n<p>On the transformer manufacturing side, the company makes:<\/p>\n<ul>\n<li><strong>power transformers\u00a0<\/strong>(up to 500 MVA and 400 kV),<\/li>\n<li><strong>traction transformers<\/strong>\u00a0and\u00a0<strong>Scott transformers<\/strong>\u00a0for Indian Railways,<\/li>\n<li><strong>shunt reactors<\/strong>\u00a0for renewable energy grids, and<\/li>\n<li><strong>distribution transformers<\/strong>.<\/li>\n<\/ul>\n<p>It runs two facilities in Meerut, Uttar Pradesh: the\u00a0<strong>Rithani unit<\/strong>\u00a0with 1,200 MVA capacity, and the\u00a0<strong>Gangol unit\u00a0<\/strong>with 18,000 MVA capacity, which is capable of making transformers up to 500 MVA and 400 kV.<\/p>\n<p>Both facilities make their own transformer tanks and radiators in-house rather than buying them from outside vendors.<\/p>\n<p>On the EPC side, Kanohar entered substation work in 2013 and transmission line work up to 400 kV in 2021.<\/p>\n<p>Government entities dominate the customer base. Tenders awarded by central and state government bodies made up ~85% of the total revenue in FY26.<\/p>\n<p>Kanohar\u2019s bid-to-win ratio has been ~21%, meaning roughly one in five bids turns into an order.<\/p>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"unit-economics-%e2%82%b9-per-order\">Unit Economics (\u20b9 per Order)<\/h2>\n<div class=\"captioned-image-container\">\n<figure>\n<div class=\"image2-inset\"><picture><source srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!1C6E!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F18e21c6a-76db-4421-8ff3-2fb3646a94f1_908x716.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!1C6E!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F18e21c6a-76db-4421-8ff3-2fb3646a94f1_908x716.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!1C6E!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F18e21c6a-76db-4421-8ff3-2fb3646a94f1_908x716.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!1C6E!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F18e21c6a-76db-4421-8ff3-2fb3646a94f1_908x716.png 1456w\" type=\"image\/webp\" sizes=\"100vw\" \/><img decoding=\"async\" class=\"sizing-normal\" src=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!1C6E!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F18e21c6a-76db-4421-8ff3-2fb3646a94f1_908x716.png\" sizes=\"100vw\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!1C6E!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F18e21c6a-76db-4421-8ff3-2fb3646a94f1_908x716.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!1C6E!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F18e21c6a-76db-4421-8ff3-2fb3646a94f1_908x716.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!1C6E!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F18e21c6a-76db-4421-8ff3-2fb3646a94f1_908x716.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!1C6E!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F18e21c6a-76db-4421-8ff3-2fb3646a94f1_908x716.png 1456w\" alt=\"\" width=\"576\" height=\"454.2026431718062\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/18e21c6a-76db-4421-8ff3-2fb3646a94f1_908x716.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:716,&quot;width&quot;:908,&quot;resizeWidth&quot;:576,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\" \/><\/picture><\/div>\n<\/figure>\n<\/div>\n<ul>\n<li><strong>Operating expenses<\/strong>\u00a0have gone down from ~18% of the average order size in FY24 at \u20b98 to ~11% in FY26 at \u20b912.<\/li>\n<li>Though the\u00a0<strong>number of orders won\u00a0<\/strong>has diminished, the\u00a0<strong>average order size\u00a0<\/strong>has gone up, which is why\u00a0<strong>EBITDA Margins\u00a0<\/strong>continue to soar, with 28% margin in FY26, up from 11% in FY24.<\/li>\n<\/ul>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"operating-metrics\">Operating Metrics<\/h2>\n<ul>\n<li><strong>Transformer Manufacturing<\/strong>\u00a0now makes up\u00a0<strong>89%<\/strong>\u00a0of the order book at\u00a0<strong>\u20b91,622 Cr<\/strong>, up from\u00a0<strong>58%<\/strong>\u00a0two years ago at\u00a0<strong>\u20b9345 Cr<\/strong>.\n<div class=\"captioned-image-container\">\n<figure>\n<div class=\"image2-inset\"><picture><source srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!mRzT!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F63eabc5d-0064-472f-91d7-27a0223ea161_600x371.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!mRzT!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F63eabc5d-0064-472f-91d7-27a0223ea161_600x371.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!mRzT!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F63eabc5d-0064-472f-91d7-27a0223ea161_600x371.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!mRzT!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F63eabc5d-0064-472f-91d7-27a0223ea161_600x371.png 1456w\" type=\"image\/webp\" sizes=\"100vw\" \/><img decoding=\"async\" class=\"sizing-normal\" src=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!mRzT!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F63eabc5d-0064-472f-91d7-27a0223ea161_600x371.png\" sizes=\"100vw\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!mRzT!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F63eabc5d-0064-472f-91d7-27a0223ea161_600x371.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!mRzT!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F63eabc5d-0064-472f-91d7-27a0223ea161_600x371.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!mRzT!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F63eabc5d-0064-472f-91d7-27a0223ea161_600x371.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!mRzT!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F63eabc5d-0064-472f-91d7-27a0223ea161_600x371.png 1456w\" alt=\"\" width=\"530\" height=\"327.71666666666664\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/63eabc5d-0064-472f-91d7-27a0223ea161_600x371.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:371,&quot;width&quot;:600,&quot;resizeWidth&quot;:530,&quot;bytes&quot;:14104,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image\/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https:\/\/ipoanalysis.substack.com\/i\/214684481?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F63eabc5d-0064-472f-91d7-27a0223ea161_600x371.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\" \/><\/picture><\/div>\n<\/figure>\n<\/div>\n<\/li>\n<li><strong>Aggregate utilization<\/strong>\u00a0across both units rose\u00a0<strong>from 16% in FY24<\/strong>\u00a0to\u00a0<strong>46% in FY26<\/strong>, as the Gangol unit\u2019s utilization climbed massively. The Rithani unit, though, remains almost entirely idle.<\/li>\n<\/ul>\n<div class=\"captioned-image-container\">\n<figure>\n<div class=\"image2-inset\"><picture><source srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!kQ08!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F146e7022-964d-4661-a093-768efbfe5766_600x371.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!kQ08!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F146e7022-964d-4661-a093-768efbfe5766_600x371.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!kQ08!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F146e7022-964d-4661-a093-768efbfe5766_600x371.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!kQ08!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F146e7022-964d-4661-a093-768efbfe5766_600x371.png 1456w\" type=\"image\/webp\" sizes=\"100vw\" \/><img decoding=\"async\" class=\"sizing-normal\" src=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!kQ08!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F146e7022-964d-4661-a093-768efbfe5766_600x371.png\" sizes=\"100vw\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!kQ08!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F146e7022-964d-4661-a093-768efbfe5766_600x371.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!kQ08!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F146e7022-964d-4661-a093-768efbfe5766_600x371.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!kQ08!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F146e7022-964d-4661-a093-768efbfe5766_600x371.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!kQ08!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F146e7022-964d-4661-a093-768efbfe5766_600x371.png 1456w\" alt=\"\" width=\"464\" height=\"286.9066666666667\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/146e7022-964d-4661-a093-768efbfe5766_600x371.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:371,&quot;width&quot;:600,&quot;resizeWidth&quot;:464,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\" \/><\/picture><\/div>\n<\/figure>\n<\/div>\n<ul>\n<li>Within Transformer Manufacturing, the\u00a0<strong>highest voltage class (above 400 kV), saw the steepest gain in value<\/strong>, from\u00a0<strong>\u20b928 Cr in FY24<\/strong>\u00a0to\u00a0<strong>\u20b9341 Cr in FY26<\/strong>.<\/li>\n<\/ul>\n<div class=\"captioned-image-container\">\n<figure>\n<div class=\"image2-inset\"><picture><source srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!28Mt!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa819f45e-151c-4738-a034-2a44f4c49000_600x371.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!28Mt!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa819f45e-151c-4738-a034-2a44f4c49000_600x371.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!28Mt!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa819f45e-151c-4738-a034-2a44f4c49000_600x371.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!28Mt!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa819f45e-151c-4738-a034-2a44f4c49000_600x371.png 1456w\" type=\"image\/webp\" sizes=\"100vw\" \/><img decoding=\"async\" class=\"sizing-normal\" src=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!28Mt!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa819f45e-151c-4738-a034-2a44f4c49000_600x371.png\" sizes=\"100vw\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!28Mt!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa819f45e-151c-4738-a034-2a44f4c49000_600x371.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!28Mt!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa819f45e-151c-4738-a034-2a44f4c49000_600x371.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!28Mt!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa819f45e-151c-4738-a034-2a44f4c49000_600x371.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!28Mt!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa819f45e-151c-4738-a034-2a44f4c49000_600x371.png 1456w\" alt=\"\" width=\"476\" height=\"294.32666666666665\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/a819f45e-151c-4738-a034-2a44f4c49000_600x371.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:371,&quot;width&quot;:600,&quot;resizeWidth&quot;:476,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\" \/><\/picture><\/div>\n<\/figure>\n<\/div>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"the-financial-stuff\">The Financial Stuff<\/h2>\n<div class=\"captioned-image-container\">\n<figure>\n<div class=\"image2-inset\"><picture><source srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!drpf!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F58c886e0-fc73-45ec-a776-4f4de77bccf0_1020x1016.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!drpf!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F58c886e0-fc73-45ec-a776-4f4de77bccf0_1020x1016.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!drpf!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F58c886e0-fc73-45ec-a776-4f4de77bccf0_1020x1016.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!drpf!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F58c886e0-fc73-45ec-a776-4f4de77bccf0_1020x1016.png 1456w\" type=\"image\/webp\" sizes=\"100vw\" \/><img decoding=\"async\" class=\"sizing-normal\" src=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!drpf!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F58c886e0-fc73-45ec-a776-4f4de77bccf0_1020x1016.png\" sizes=\"100vw\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!drpf!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F58c886e0-fc73-45ec-a776-4f4de77bccf0_1020x1016.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!drpf!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F58c886e0-fc73-45ec-a776-4f4de77bccf0_1020x1016.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!drpf!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F58c886e0-fc73-45ec-a776-4f4de77bccf0_1020x1016.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!drpf!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F58c886e0-fc73-45ec-a776-4f4de77bccf0_1020x1016.png 1456w\" alt=\"\" width=\"552\" height=\"549.8352941176471\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/58c886e0-fc73-45ec-a776-4f4de77bccf0_1020x1016.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1016,&quot;width&quot;:1020,&quot;resizeWidth&quot;:552,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\" \/><\/picture><\/div>\n<\/figure>\n<\/div>\n<ul>\n<li><strong>Revenue from Operations<\/strong>\u00a0grew from \u20b9277 Cr in FY24 to \u20b9654 Cr in FY26.<\/li>\n<li><strong>Profit After Tax<\/strong>\u00a0grew from \u20b918 Cr in FY24 to \u20b9130 Cr in FY26, and\u00a0<strong>EBITDA Margin\u00a0<\/strong>more than doubled in the same period.<\/li>\n<li><strong>Finance Costs<\/strong>\u00a0and\u00a0<strong>Depreciation\u00a0<\/strong>still amount for a growing but still small amount of EBITDA, meaning most of it gets converted into PAT.<\/li>\n<\/ul>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"peer-comparison-fy26\">Peer Comparison, FY26<\/h2>\n<div class=\"captioned-image-container\">\n<figure>\n<div class=\"image2-inset\"><picture><source srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!X0IQ!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F76af216c-1aa4-4d14-bdb2-d3172d4ca9b6_1404x530.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!X0IQ!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F76af216c-1aa4-4d14-bdb2-d3172d4ca9b6_1404x530.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!X0IQ!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F76af216c-1aa4-4d14-bdb2-d3172d4ca9b6_1404x530.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!X0IQ!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F76af216c-1aa4-4d14-bdb2-d3172d4ca9b6_1404x530.png 1456w\" type=\"image\/webp\" sizes=\"100vw\" \/><img fetchpriority=\"high\" decoding=\"async\" class=\"sizing-normal\" src=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!X0IQ!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F76af216c-1aa4-4d14-bdb2-d3172d4ca9b6_1404x530.png\" sizes=\"100vw\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!X0IQ!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F76af216c-1aa4-4d14-bdb2-d3172d4ca9b6_1404x530.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!X0IQ!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F76af216c-1aa4-4d14-bdb2-d3172d4ca9b6_1404x530.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!X0IQ!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F76af216c-1aa4-4d14-bdb2-d3172d4ca9b6_1404x530.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!X0IQ!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F76af216c-1aa4-4d14-bdb2-d3172d4ca9b6_1404x530.png 1456w\" alt=\"\" width=\"1404\" height=\"530\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/76af216c-1aa4-4d14-bdb2-d3172d4ca9b6_1404x530.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:530,&quot;width&quot;:1404,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\" \/><\/picture><\/div>\n<\/figure>\n<\/div>\n<ul>\n<li>Kanohar\u2019s\u00a0<strong>revenue\u00a0<\/strong>At \u20b9654 Cr is the smallest in the set by a wide margin.<\/li>\n<li>Kanohar\u2019s\u00a0<strong>EBITDA Margin\u00a0<\/strong>of 28% is the highest in the group, nearly double Schneider Electric\u2019s 13%, and almost three times BHEL\u2019s 10%.<\/li>\n<li>On\u00a0<strong>PAT Margin<\/strong>, Kanohar\u2019s 20% again leads the set by a wide margin, despite being the smallest company by revenue.<\/li>\n<\/ul>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"key-risks\">Key Risks<\/h2>\n<ul>\n<li><strong>Customer concentration:<\/strong>\u00a0Top 10 customers made up 93% of revenue in FY26. One customer alone accounted for 31% of revenue in FY26.<\/li>\n<li><strong>Fixed-price contract exposure:<\/strong>\u00a0As of FY26, Kanohar had 35 active contracts, of which 4 were priced on a fixed basis rather than with price variation or escalation clauses. A sharp move in input costs during the life of those contracts cannot be passed on to the customer, and Kanohar alone has to bear it.<\/li>\n<li><strong>Raw material supplier concentration:<\/strong>\u00a0Copper and CRGO steel are Kanohar\u2019s main inputs and their global prices are volatile. Top 10 suppliers accounted for 71% of the cost of raw materials.<\/li>\n<li><strong>Dependence on government tenders:<\/strong>\u00a0Revenue from government-awarded tenders was 85% of the total in FY26, and the bid-to-win ratio has stayed near one in five over three years.<\/li>\n<li><strong>Geographic concentration:<\/strong>\u00a0Rajasthan, Punjab, and Gujarat together made up 52% of FY26 revenue. A slowdown in transmission spending in any one of these states would have an outsized effect on the business.<\/li>\n<\/ul>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"conclusion\">Conclusion<\/h2>\n<div class=\"pencraft pc-display-flex pc-alignItems-center pc-position-absolute pc-reset header-anchor-parent\"><\/div>\n<p>Kanohar sells into a grid build-out that India\u2019s government has committed to for years to come, and it holds a certification that only four other Indian companies can match. Its margins have widened fast, its order book has more than doubled, and it carries little debt. Customer concentration and reliance on government tenders are the two risks worth watching.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kanohar Electricals Limited is launching an IPO. The company runs a power transformer manufacturing and EPC business, designing, manufacturing and installing power transformers, traction transformers, shunt reactors and distribution transformers, alongside EPC works for substations and transmission lines. IPO Summary Introduction India is building its power grid at a pace it has not seen before. [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":14804,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[59],"tags":[2],"class_list":["post-14803","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipo","tag-blog"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Kanohar Electricals IPO: Review, Financials, Business &amp; Risks | InCred Money<\/title>\n<meta name=\"description\" content=\"Explore the Kanohar Electricals IPO, including its business model, financial performance, unit economics, operating metrics, peers and key investment risks at InCred Money\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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