Adarsh Plant Protect Ltd. Share Price

Kanohar Electricals

• Kanohar Electricals is coming out with a 100% book building; initial public offering (IPO) of 1,69,49,595 shares of face value Rs 2 each in a price band Rs 601-632 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on September 08, 2026 and will close on September 10, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 2 and is priced 300.50 times of its face value on the lower side and 316.00 times on the higher side.
• Book running lead managers to the issue are Nuvama Wealth Management and IIFL Capital Services.
• Compliance officer for the issue is Neha. 

Profile of the company

Kanohar Electricals is one of the leading domestic players in transformer manufacturing. It caters to high growth industries such as power transmission, railways, renewable energy, and power distribution. The company is one of five companies in India to have the short circuit test certification for 500 MVA 400 kV transformers that are used in the power transmission industry. It is one of four manufacturers in India who are certified by Research Designs and Standards Organisation (RDSO), the research and development wing of Indian Railways, to manufacturing 100 MVA 132 kV Scott transformers. It is also one of two Indian manufacturers certified to manufacture 100 MVA 220 kV Scott transformers, both of which cater to the demand for rail network electrification from the Indian Railways. Through its backward integrated facilities, it offers a wide range of products and solutions for India’s energy infrastructure, particularly in the manufacture of transformers with its in-house technology. 

The company operates its business in two segments, i.e., (i) Transformer Manufacturing Business; and (ii) EPC Business. EPC Business, it undertakes engineering, procurement and construction projects in the power transmission and distribution sector, in addition to its transformer manufacturing operations, which enables the company to execute turnkey projects for substations and transmission lines. Under its EPC Business, it undertakes turnkey installation of air and gas insulated substations, bay augmentation in existing substations up to 400 kV class, and installation of transmission lines across 132 kV, 220 kV and 400 kV. EPC projects typically involve design, engineering, procurement, supply, erection, testing and commissioning of electrical infrastructure.

Proceed is being used for: 

• Funding the capital expenditure requirements of the company towards: (i) purchase of new machinery and equipment for its Gangol manufacturing facility for increasing its transformer manufacturing capacity, expanding and automating its backward integration facilities and enhancing operational efficiency; (ii) civil construction and interior development of an office building at its Gangol manufacturing facility; (iii) enhancing its sustainability initiatives by (a) setting up of solar power plants at its manufacturing facilities, and (b) purchasing electric vehicles for handling and movement at its Gangol manufacturing facility.
• Funding incremental working capital requirements of the company
• General corporate purposes

Industry overview

A transformer is an electrical device used in power systems to transfer electrical energy from one circuit to another through the principle of electromagnetic induction. It operates without any direct electrical connection between the two circuits. The primary function of a transformer is to either step up (increase) or step down (decrease) voltage levels based on the requirement of the system. This voltage transformation makes it possible to transmit electricity efficiently over long distances and safely distribute it for residential, commercial, and industrial use. 

The transformer market in India has been growing steadily. Between CY19 and CY25, the market increased from $3,691.4 million to $4,944.9 million, with a CAGR of 5.0%. This growth is mainly due to more areas getting electricity and new infrastructure projects. From CY25 to CY30, the market is expected to grow faster, reaching $6,854.2 million, with CAGR of 6.7% during this period. From CY19 to CY25, the transformer market in India grew gradually and steadily. In CY19, power transformers had the highest share, valued at $1,691.3 million, followed closely by distribution transformers at $1,601.1 million. Traction transformers $152.3 million, Scott transformers at $91.9 million, and other special-purpose transformers at $154.9 million. Over the years, all these segments showed moderate growth. By CY26, power transformers are expected to reach $2,660.0 million and distribution transformers to $2,083.1 million.

The strong growth in transformer demand reflects robust policy support and rising investment in energy infrastructure. Key government initiatives such as ‘Power for All’, the National Electricity Plan (Transmission), the National Rail Plan 2030, and the National Infrastructure Pipeline (NIP), along with the development of Green Energy Corridors aligned with India’s 500 GW renewable energy target, decarbonization, and energy transition goals, are driving modernization of the grid, improving reliability, and enabling large-scale integration of renewable power. Beyond new capacity, demand is also fuelled by the replacement of ageing transformers in urban and industrial areas, with modern, efficient models better equipped to handle higher and more variable loads. At the same time, policy thrust through ‘Make in India’ and ‘Atmanirbhar Bharat’ is promoting local manufacturing, while initiatives such as smart grids and smart metering are further boosting domestic production and exports of transformers.

Pros and strengths 

Established player in transformer manufacturing sector catering to high growth industries: The company has over 40 years of experience in the Transformer Manufacturing Business. It is one of the leading domestic players in transformer manufacturing. It caters to high growth industries such as power transmission, railways, renewable energy, and power distribution. It manufactures transformers across a wide range of voltage capacities, ranging from below 132 kV to above 400 kV. In particular, the company is one of five companies in India to have the short circuit test certification for 500 MVA 400 kV transformers that are used in the power transmission industry, which enables it to compete for large and high-value contracts. The company are one of four manufacturers in India who are certified by RDSO, the research and development wing of Indian Railways, to manufacturing 100 MVA 132 kV Scott transformers. It is also one of two Indian manufacturers certified to manufacture 100 MVA 220 kV Scott transformers, both of which cater to the demand for rail network electrification from the Indian Railways. As an established player in the transformer manufacturing industry, it benefits from economies of scale, long-standing customer relationships, and approved vendor status with utilities and railways, enabling it to secure large contracts.

Successful short circuit testing of transformers up to 500 MVA 400 kV:  The company has conducted short circuit tests for various ratings of transformers which verify the transformers’ ability to withstand thermal and mechanical stresses during fault conditions. Such short circuit tests are conducted at reputed government laboratories such as Central Power Research Institute and National High Power Test Laboratory, ensuring adherence to the highest standards of safety, reliability, and independent verification. It conducts short circuit testing at scale and, has tested over 200 ratings. It is one of five companies in India to have the short circuit test certification for 500 MVA 400 kV transformers that are used in the power transmission industry, which enables it to compete for large and high-value contracts. Such successful lab testing has positioned it to be among a select group of transformer manufacturers equipped to be eligible and qualify to bid for certain key orders. This is observed from an increase in its sales of 500 MVA 400 kV power transformers in Fiscal 2026.

Comprehensive presence across transformer manufacturing business and EPC business: In an endeavour to increase its total addressable market in the power transmission and power distribution sectors, it entered the EPC Business for substations in 2013 and forayed into EPC projects for transmission lines up to 400 kV class in 2021. Such integration of its EPC business enables it to provide single window solutions by undertaking EPC projects in addition to its transformer manufacturing business. Its EPC Business services for substations include turnkey installation of air and gas insulated substations and bay augmentation in existing substations up to 400kV class; and its EPC Business services for transmission lines include turnkey installation of transmission lines across 132 kV, 220 kV and 400 kV. Its EPC Business complements its Transformer Manufacturing Business by enabling the company to capitalise on hybrid contracts with integrated EPC and equipment supply requirements. This integrated positioning allows it to serve as a single-window provider, capturing a higher share of project value while deepening its engagement with customers which are seeking comprehensive solutions.

High quality transformers and capabilities for gas insulated switchgear (GIS): It manufactures five different types of transformers with customized technical specifications to address the energy needs of its end-user industries. It has developed technology for manufacturing transformers up to 500 MVA, 400 kV in-house, which ensures reliability and performance. It also has capabilities to manufacture GIS. GIS solutions are critical components for high-voltage power networks used in electrical substations and are characterized by features such as a low SF6 leakage rate and being environmentally friendly. It hase entered into a technical collaboration with CHEM in 2017, for offering advanced, and environmentally friendly solutions in GIS.

Risks and concerns

Significant revenue dependence on transformer manufacturing business: The company derives a significant portion of its revenue from the Transformer Manufacturing Business. It manufactures five different types of transformers with customized technical specifications to address the energy needs of industries as a part of its transformer manufacturing business. The company’s Transformer Manufacturing Business contributed 83.43%, 85.17%, and 51.75% of revenue from operations in Fiscal 2026, Fiscal 2025, and Fiscal 2024, respectively. Any failure to successfully manufacture and market its products which are part of the Transformer Manufacturing Business, whether on account of regulatory changes or changes in technologies, including creation of alternate technologies, or otherwise could adversely affect its business, financial condition, cash flows and results of operations.

Heavy dependence on top 10 customers: The company has derived a significant portion of its revenue from operations from its top 10 customers which exposes it to customer concentration risks. In the Fiscals 2026, 2025 and 2024, its top 10 customers’ contribution towards its revenue from operations was 93.16%, 93.88%, and 95.43%, respectively. It cannot assure that it will be able to successfully compete for tenders or if its customers will place further orders with the company in the future or that it will be able to maintain historic levels of business from them, or that it will be able to significantly reduce customer concentration in the future. The loss of business from any of these customers due to any reason could adversely affect its business, results of operations, financial condition and cash flows.

Reliance on government tender awards: A significant portion of its revenue is dependent on tenders being awarded by the government-controlled entities, which follow tendering process for determination of their suppliers. The company’s tenders awarded by government entities contributed 85.37%, 64.09%, and 90.10% to revenue from operations in Fiscal 2026, Fiscal 2025, and Fiscal 2024, respectively. Government bids are procured through competitive bidding process. Its bids may not always be accepted. It may not be able to qualify for, compete and win projects, which could adversely affect its business and results of operations. Further, it may not always be able to possess and maintain its pre-qualification capability for its Transformer Manufacturing Business and EPC Business. It may be adversely affected if it does not succeed in all or a majority of the contracts that it tenders for. Any adverse changes in government policies may lead to its agreements being restructured or renegotiated, which could adversely affect its revenues, cash flows or operations relating to existing contracts as well as its ability to participate in competitive bidding or bilateral negotiations for future contracts.

Significant geographic concentration in Rajasthan, Punjab and Gujarat: The company derives a significant portion of its revenue from operations in India from the states of Rajasthan, Punjab, and Gujarat. Rajasthan contributed the highest share of revenue from operations in Fiscal 2026 at 20.05%, followed by Punjab at 16.61% and Gujarat at 15.23%. Any disruptions in the region could have a material adverse effect on its business, financial condition and results of operations.  Additionally, changes in the policies of the state or local governments of these regions may require it to incur significant capital expenditure and change its business strategy. While it has not faced any such instances of geographical disruptions in the last three Fiscals, it cannot assure that it will be able to address its reliance on these few geographical regions, in the future.

Outlook

Kanohar Electricals is a leading manufacturer of reliable, cost effective and high-quality transformers for generation, transmission and distribution of electric power up to 500 MVA, 400kV. The manufacturing facilities of the company are ISO-certified including ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 and house testing laboratories which are accredited by the National Accreditation Board for Testing and Calibration Laboratories and its manufacturing facilities have a backward integrated setup that supports in-house production of critical components, such as transformer tanks and radiators. On the concern side, its business is dependent on suppliers to procure its raw materials. Further, it has not entered into long-term agreements with these suppliers, variations in supply and any loss of suppliers or interruptions in the timely delivery of raw materials or volatility in their prices could have an adverse impact on its business, financial condition and results of operations.

The issue has been offering 1,69,49,595 shares in a price band of Rs 601-632 per equity share. The aggregate size of the offer is around Rs 1,018.67 crore to Rs 1,071.21 crore based on lower and upper price band respectively. Minimum application is to be made for 23 shares and in multiples thereof thereafter. On performance front, total income increased by 44.95% from Rs 4,572.96 million in Fiscal 2025 to Rs 6,628.62 million in Fiscal 2026. Profit for the year was Rs 1,297.33 million in Fiscal 2026, compared to Rs 651.18 million in Fiscal 2025.

Meanwhile, its manufacturing facilities have a backward integrated setup that supports in-house production of critical components, such as transformer tanks and radiators. This backward integration reduces dependency on third party vendors, enhances quality control and optimizes cost and delivery timelines. Backward integration continues to be a cornerstone of its strategy enabling it to maintain control over key components and ensure consistent quality across its product range. As a part of this strategy, it intends to utilise a portion of the Net Proceeds to expand its backward integration facilities by replacing its current in-house set up for radiator manufacturing and assembling an automatic radiator manufacturing plant at its Gangol Manufacturing Facility. This investment will enable it to meet its forthcoming radiator requirement in-house, and provide it betters control over supply chain management, improve the operational efficiency and allow for stricter quality control.