Kanohar Electricals

Established player in the transformer manufacturing sector catering to high growth industries

The company has over 40 years of experience in transformer manufacturing and is one of the leading domestic players in terms of revenue in Fiscal 2026. The company caters to high growth industries such as power transmission, railways, renewable energy, and power distribution.

Successful short circuit testing of transformers up to 500 MVA 400 kV

The company has conducted short circuit testing at scale and as of March 31, 2026, has tested over 200 ratings. The company is one of five companies in India to have short circuit test certification for 500 MVA 400 kV transformers, enabling it to compete for large, high-value contracts.

Comprehensive presence across Transformer Manufacturing Business and EPC Business

The company entered EPC Business for substations in 2013 and transmission lines in 2021, enabling it to provide single window solutions. This integration allows the company to serve a large total addressable market and capitalise on hybrid contracts with integrated EPC and equipment supply requirements.

Integrated manufacturing facilities equipped to deliver high-quality products

The company operates two manufacturing facilities with aggregate transformer manufacturing capacity of 19,200 MVA as of March 31, 2026. The company has backward integrated setup supporting in-house production of critical components such as transformer tanks and radiators, ensuring quality control and cost optimization.

Track record of executing orders for large and marquee clients

The company has successfully executed orders across power transmission, railways, renewable energy, and power distribution sectors. As of March 31, 2026, the company's order book with Power Grid Corporation of India Limited (POWERGRID) aggregated to ₹ 5,732.63 million.

Experienced promoters and management team with significant industry experience

The company is led by Dinesh Singhal, a graduate of Indian Institute of Technology Roorkee, with over 40 years of experience in transformer manufacturing. The leadership is overseen by third generation of Promoters with team of over 526 professionals as of March 31, 2026.

Track record of profitability

The company achieved revenue from operations CAGR of 53.72% and EBITDA CAGR of 140.96% from Fiscal 2024 to Fiscal 2026. In Fiscal 2026, revenue from operations was ₹ 6,538.39 million and EBITDA was ₹ 1,804.16 million.

Significant Revenue Dependence on Transformer Manufacturing Business

The company derives 83.43% of revenue from operations from transformer manufacturing in Fiscal 2026. A reduction in demand for transformers could adversely affect business operations and financial condition.

High Customer Concentration Risk

The company's top 10 customers contributed 93.16%, 93.88%, and 95.43% of revenue from operations in Fiscals 2026, 2025, and 2024 respectively. Loss of major customers or inability to diversify customer base could significantly impact revenues.

Manufacturing Capacity Under-utilization

The company's capacity utilization was only 45.99% in Fiscal 2026, down from 29.70% in Fiscal 2025. Under-utilization of manufacturing capacities could lead to operational inefficiencies and adversely impact financial performance.

Heavy Dependence on Government Tenders and Contracts

85.37% of revenue in Fiscal 2026 came from government entities through competitive bidding processes. The company's bid-to-win ratio was only 20% in Fiscal 2026, and failure to secure government contracts could materially impact business operations.

Working Capital and Financing Requirements

The company had outstanding borrowings of ₹3,855.63 million as of July 31, 2026, with net working capital of ₹2,515.77 million. Inability to raise additional working capital or obtain financing on favorable terms could adversely affect business growth.

Geographic Revenue Concentration

The company derives significant revenue from limited Indian states including Rajasthan (20.05%), Punjab (16.61%), and Gujarat (15.23%) in Fiscal 2026. Geographic disruptions could materially affect business operations and financial condition.

Raw Material Supply Chain Dependencies

The company depends on suppliers for key raw materials including insulated copper conductor, cold-rolled grain-oriented steel, and transformer oil without long-term agreements. Top 10 suppliers contributed 71.49% of cost of goods sold in Fiscal 2026.

Risk of Disqualification and Blacklisting by Government Authorities

The company was temporarily debarred by Bihar State Power Transmission Company Limited in February 2026 (later conditionally withdrawn). Such actions could restrict access to substantial revenue base and damage market reputation.

EPC Business Execution and Time Overrun Risks

EPC contracts have long execution periods of 12-24 months and are subject to time and cost overruns. The company generated ₹1,075.00 million (16.44% of revenue) from EPC business in Fiscal 2026, exposing it to project execution risks.

Order Book Realization Uncertainty

The company's order book of ₹18,183.23 million as of March 31, 2026 may not be representative of future results. Actual income may be significantly less than estimates due to project cancellations, delays, or scope changes.