Kanohar Electricals Limited – Investor Presentation Summary
Key Operational Highlights
- Power transformers grew 88% YoY in H1FY27
- Shunt reactors segment grew to about 22% of revenue from negligible share last year
- Products of 220 kV and 400kV made up nearly 78% of revenue in H1FY27 compared with about 53% in H1FY26
- Manufacturing capacity of 19,200 MVA per annum across two facilities in Gangol and Rithani, Meerut
- Backward integration with in-house manufacturing of transformer tanks and radiators
Key drivers of operational performance: Higher volumes and broader product mix toward higher-value transformers and shunt reactors for renewable grid integration.
Segment-wise Performance
- Power Transmission (Transformers): 57.09% of FY26 revenue
- Scott Transformers: 25.29% of FY26 revenue
- Traction Transformers: 0.92% of FY26 revenue
- Distribution Units: 0.13% of FY26 revenue
- EPC Solutions for Substations: 6.75% of FY26 revenue
- EPC Solutions for Transmission Lines: 9.69% of FY26 revenue
Explanation of significant changes in segment performance: Growth driven by increased share of higher-voltage products (220kV and 400kV) and expansion into shunt reactors for renewable energy applications.
Financial Highlights
Q2FY27 Performance:
Revenue: ₹208.6 Cr (112.4% YoY growth)
EBITDA: ₹73.1 Cr (167.2% YoY growth)
PAT: ₹53.9 Cr (179.7% YoY growth)
EPS: ₹7.14
EBITDA Margin: 35.0% (vs 27.8% in Q2FY26)
PAT Margin: 25.8% (vs 19.6% in Q2FY26)
H1FY27 Performance:
Revenue: ₹345.7 Cr (108.8% YoY growth)
EBITDA: ₹111.8 Cr (161.7% YoY growth)
PAT: ₹81.2 Cr (164.8% YoY growth)
EPS: ₹10.83
EBITDA Margin: 32.3% (vs 25.8% in H1FY26)
PAT Margin: 23.5% (vs 18.5% in H1FY26)
Drivers of financial performance: Higher revenue growth, improved product mix toward higher-margin products, and operational efficiencies.
Geographical Revenue Split
Not Specified
Balance Sheet Snapshot
As of September 2026:
Total Assets: ₹1,024.7 Cr (vs ₹613.9 Cr in March 2026)
Non-Current Assets: ₹86.8 Cr
Current Assets: ₹937.9 Cr
Inventories: ₹196.8 Cr
Trade Receivables: ₹141.6 Cr
Cash and Cash Equivalents: ₹26.5 Cr
Bank Balances: ₹436.6 Cr
Total Equity: ₹738.8 Cr (vs ₹372.8 Cr in March 2026)
Non-Current Liabilities: ₹24.9 Cr
Current Liabilities: ₹261.0 Cr
Financial Health Insights: Strong equity growth, improved cash position, and healthy asset base expansion.
Capex & Cash Flow Health
Cash Flow H1FY27:
Net Profit Before Tax: ₹109.1 Cr
Cash Generated from Operations: ₹58.1 Cr
Net Cash from Operating Activities: ₹23.4 Cr
Net Cash from Investing Activities: -₹265.6 Cr
Net Cash from Financing Activities: ₹268.7 Cr
Capital Expenditure: Brownfield expansion at Gangol unit on track with commissioning expected by FY29
Investment Rationale: Focus on capacity expansion and technology upgrades to support next leg of growth.
Strategic & R&D Initiatives
- Moving into higher-value products including 765 kV transformers
- Expanding shunt reactors and other special transformers for railways
- Strengthening backward integration capabilities
- Expanding integrated EPC and turnkey capabilities
- Ensuring supply chain security for critical materials like CRGO steel and copper
Expected impact on growth: Brownfield expansion to support sustained growth trajectory and market share expansion.
Industry Trends & Business Environment
- Transformer market in India expected to reach USD 6,854.2 mn with CAGR of 6.7%
- Rising power demand, grid upgrades, renewables and rail electrification driving demand
- Short-circuit testing certification remains key entry barrier with few manufacturers certified for high-voltage transformers
Impact on Company: Benefiting from industry tailwinds through focus on higher-value products and integrated EPC capabilities.
Management Commentary & Growth Outlook
Strategic Outlook: "With strong entry barriers in the industry, an established track record and a steady pipeline, we are well placed for sustained growth."
FY Guidance: Expected to achieve FY27 revenue of ~₹950 Cr with EBITDA margin profile similar to FY26 (27.6%)
Order Book: Outstanding order book of ₹2,711.2 Cr as of 30th September 2026, executable over next 24-30 months