Kanohar Electricals IPO

Kanohar Electricals IPO will open for subscription on 8 September 2026. The IPO will remain open till 10 September, followed by listing on 16 September. The company is one of the top domestic transformer manufacturers by revenue in FY26, serving high-growth industries such as power transmission, railways, renewable energy, and power distribution.

The company operates in two business segments: the Transformer Manufacturing Business and the EPC Business. As of March 31, 2026, Kanohar Electricals is among the five companies in India that have received short-circuit test certification for 500 MVA 400 kV transformers used in the power transmission industry and have carried out testing on more than 200 ratings.

Furthermore, the company is one of the four Indian manufacturers to be certified by RDSO to manufacture 100 MVA 132 kV Scott transformers and one of the two companies to manufacture 100 MVA 220 kV Scott transformers for Indian Railways.

The company produces five categories of transformers, including power transformers, traction transformers, Scott transformers, shunt reactors and distribution transformers. The EPC business includes turnkey installation of air- and gas-insulated substations, expansion of bays in existing substations up to 400 kV class, and installation of transmission lines in 132 kV, 220 kV and 400 kV classes. The contracts for EPC business usually have periods of execution between 6 to 24 months and a milestone-based payment structure. Key customers include BNC Power Projects Ltd, Blue Star Limited and Bhutan Power Corporation Limited.

For FY26, the transformer manufacturing business accounted for 83.4%, and the EPC business accounted for 16.4% of revenue from operations. Central/state utilities and PSUs (tender-led) accounted for 85.3% of revenue in FY26, whereas revenue from private entities accounted for 14.6%. With respect to revenue, Rajasthan accounted for 20.05%, Punjab for 16.61% and Gujarat for 15.23% in FY26. International revenue continues to be negligible and limited to one shipment to Taiwan amounting to ₹29.7 lakhs in FY26.

As per FY26, the order book of the company amounted to ₹1,818.3 crore, as against ₹861.47 crore in FY25 and ₹595.85 crore in FY24. The share of the order book of the business of manufacture of transformers stood at 89.19%, whereas 68.00% constituted the power transformers order book. The government sector accounted for 93.62% of the total order book of the company in FY26. The company received an order worth ₹568.67 crore for the supply of 500 MVA 400 kV power transformers from POWERGRID in June 2025. The order book of the company from POWERGRID amounted to ₹573.26 crore as of March 31, 2026.

Kanohar Electricals runs two manufacturing plants in Meerut, Uttar Pradesh, namely Rithani Manufacturing Facility and Gangol Manufacturing Facility. As of March 31, 2026, the aggregate installed transformer manufacturing capacity of the company was 19,200 MVA. The capacity utilisation increased to 45.99% in FY26 as compared to 16.46% in FY24, due to the 17.31% in FY24 to 49.04% in FY26 capacity utilisation of the Gangol plant.

The Indian market for transformers has seen continuous growth, from $3,691.4 million in CY19 to $4,944.9 million in CY25 at a CAGR of 5%, and is forecast to further grow to $6,854.2 million by CY30 (CAGR 6.7%). In this regard, the market for power transformers, which is India's biggest category of transformers, has seen its growth rise from around $1,691.3 million in CY19 to $2,660.0 million in CY26, whereas only high-voltage transformers would be growing from $697.1 million (CY19) to $1,605.7 million in CY30. Such growth is being fuelled by various government initiatives such as the National Electricity Plan (Transmission), the National Rail Plan 2030, the Green Energy Corridor that aligns with India's 500 GW renewable energy targets, and about ₹9.15 lakh crore worth of transmission sector investment opportunity up to FY32, apart from "Make in India" and "Atmanirbhar Bharat" policies. Similarly, high entry barriers due to capital intensiveness, lengthy facility setup periods, and testing certification requirements help ensure that competition remains low in the high-voltage industry segments as well.

Kanohar Electricals is well positioned to take advantage of these tailwinds in the industry. Its presence in the power transmission, railway, and renewable energy industries is helped immensely by the government-led initiatives of power grid modernisation, rail electrification, and renewable energy integration that create favourable tailwinds, which not only mitigate risks of delayed payments but also provide similar tailwinds for Kanohar Electricals that are helping to fuel growth in the industry. Expansion of its installed capacity from 15,000 MVA to 19,200 MVA and its association with CHEM Taiwan for GIS technology help Kanohar Electricals capture growing demand for high-voltage transformers.

Now, Kanohar Electricals Ltd is launching its initial public offering (IPO), which consists of a fresh issue of ₹300 crore and an offer for sale of ₹756 crore. The total issue size of the IPO is ₹1,056.00 crore. Its shares will be listed on the NSE and BSE.

If you are interested in this investment opportunity but unsure how to apply for Kanohar Electricals IPO, follow these steps.

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Kanohar Electricals IPO on Upstox: