Kanohar Electricals Limited – Investor Presentation Summary

Key Operational Highlights

  • Transformer manufacturing capacity of 19,200 MVA per annum across two facilities in Meerut, Uttar Pradesh
  • Added incremental orders worth ~Rs. 332.3 crore during Q1 FY27
  • As of 30th September 2026, added incremental orders worth Rs. 867.3 crore including large order (Rs. 250 crore & above) from central public sector undertaking
  • Capability to manufacture transformers up to 765 kV capacity developed

Key drivers of operational performance: Higher contribution in 400kV segment, improved product mix, and increased manufacturing efficiency

Segment-wise Performance

Overall Revenue Mix (Q1 FY27):

  • Transformers Business: 74.7%
  • EPC Business: 25.3%

Transformers Business Voltage Mix (Q1 FY27):

  • 400kV: 11.5%
  • 220kV: 0.1%
  • 132kV: 0.2%
  • Others: 0.9%
  • Not Specified: 2.8%

FY26 Revenue Mix (Transformers Business):

  • Power Transmission: 57.09%
  • Railways: 25.29%
  • Traction Transformers: 0.92%
  • Distribution Units: 0.13%

EPC Business FY26 Revenue Mix:

  • Substations: 6.74%
  • Transmission Lines: 9.69%

Explanation of significant changes in segment performance: Growth driven by higher contribution in 400kV transformer segment and improved product mix

Financial Highlights

Revenue: Rs. 137.1 crore (Q1 FY27)

EBITDA: Rs. 38.8 crore

PAT: Rs. 27.3 crore

EPS: Rs. 3.67

Margins:

  • Gross Profit Margin: 41.9%
  • EBITDA Margin: 28.3%
  • PAT Margin: 19.9%

YoY/QoQ comparison:

  • Revenue growth: 103.5% YoY (Q1 FY26: Rs. 67.4 crore)
  • EBITDA growth: 152.2% YoY (Q1 FY26: Rs. 15.4 crore)
  • PAT growth: 140.0% YoY (Q1 FY26: Rs. 11.4 crore)

Drivers of financial performance: Healthy increase in manufacturing, improvement in product mix (higher contribution in 400kV segment), higher operating leverage

Comparison to market estimates: Not Specified

Key Risks: Not Specified

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not Specified

Regional Breakdown: Not Specified

Balance Sheet Snapshot

As of March 2026:

  • Total Assets: Rs. 613.9 crore
  • Non-Current Assets: Rs. 76.8 crore
  • Current Assets: Rs. 537.1 crore
  • Inventories: Rs. 114.2 crore
  • Trade Receivables: Rs. 210.8 crore
  • Total Liabilities: Rs. 613.9 crore
  • Borrowings: Rs. 14.4 crore (non-current) + Rs. 24.6 crore (current)
  • Trade Payables: Rs. 100.0 crore

Net Debt/Equity: 0.1x (FY26)

Reserves: Not Specified

Current Assets/Liabilities: Current Assets Rs. 537.1 crore, Current Liabilities Rs. 214.6 crore

Working Capital/Leverage Metrics: Net Working Capital Days improved from 124 (FY23) to 107 (FY26)

Financial Health Insights: Strong ROCE of 70.13% in FY26, low gross debt to equity of 0.1x

Capex & Cash Flow Health

Capital Expenditure: Brownfield expansion at Gangol unit planned through IPO proceeds allocation of Rs. 64.2 crore

Free Cash Flow: Not Specified

Operating Cash Flow: Rs. 25.8 crore (FY26)

Net Debt Movement: Not Specified

Investment Rationale: Increasing transformer manufacturing capacity, expanding and automating backward integration facilities, enhancing operational efficiency, enhancing sustainability initiatives

Strategic & R&D Initiatives

Investments in Innovation: Setting up solar power plants at manufacturing facilities, purchasing Electrical Vehicles for handling and movement at Gangol Facility, developing 765kV transformer capability

Expected impact on growth: Capacity expansion expected to result in healthy growth and sustainable profits

Strategic Rationale: Focus on timely execution of 400kV transformer orders, building capability for 765kV transformers as long-term growth lever

Industry Trends & Business Environment

Macro/Industry Trends: Transformer market in India expected to reach USD 6,854.2 million with CAGR of 6.7%

Impact on Company: Rising power demand, grid upgrades, renewables and rail electrification driving demand for transformers

Management Commentary & Growth Outlook

Strategic Outlook: "We continued the momentum of FY26 in Q1FY27. On Y-o-Y basis, we doubled our revenues, sustained high Gross margins, expanded our EBITDA and PAT margins. The profitability improvement is driven by healthy increase in manufacturing and improvement in product mix (higher contribution in 400kV segment) which led to higher operating leverage and profit after tax."

FY Guidance: Targeting Revenues of ~Rs. 950 crore for FY27 with similar EBITDA margin profile as FY26 (27.6%)

Market Share Targets: Not Specified

Risks and Opportunities: Certifications and Pre-qualification are large entry barriers in the Transformers industry

Utilization of IPO Proceeds

  • Funding Capex Requirements: Rs. 64.2 crore (Rs. 24.2 crore in FY27, Rs. 40.0 crore in FY28)
  • Incremental Working Capital Needs: Rs. 155.0 crore (all in FY27)
  • General corporate purposes: Rs. 55.5 crore (Rs. 27.7 crore in FY27, Rs. 27.7 crore in FY28)
  • Total: Rs. 274.7 crore