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Tempsens Instruments (India)

• Tempsens Instruments (India) is coming out with a 100% book building; initial public offering (IPO) of 2,18,33,332 shares of face value Rs 4 each in a price band Rs 285 - 300 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 August 20, 2026 and will close on August 24, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 4 and is priced 71.25 times of its face value on the lower side and 75.00 times on the higher side.
• Book running lead managers to the issue are ICICI Securities and JM Financial.
• Compliance officer for the issue is Vishal Jain. 

Profile of the company

Tempsens Instruments (India) is a thermal engineering and specialised cable manufacturer, engaged in the design and manufacture of customized temperature sensing solutions, electrical heating solutions and specialised cables. Its offerings are tailored to address each customer’s technical requirements. By combining its technical expertise with a collaborative approach to customer relationships, it delivers solutions that address complex thermal management and cable challenges across diverse industries. With its strong sales and operations teams, it is able to respond quickly to client needs, ensuring timely and effective delivery of its customised solutions.

The company offers a diverse product portfolio structured around three core verticals: temperature sensing solutions, electrical heating solutions and specialised cables. Its products play a critical role in ensuring the safe, efficient and reliable operation of manufacturing processes across multiple industries.

The company demonstrates its capabilities through a diverse portfolio of project/original equipment manufacturer (Project/OEM) engagements and a steadily recurring maintenance, repair and operations (MRO) replacement business. The Project/OEM segment represents a high-barrier, approval-driven market characterised by stringent qualification requirements, where winning large, competitive orders for instrumentation in greenfield or brownfield setups underscores its technical credibility and customer trust. In parallel, it actively serves the replacement market, which consists of MRO orders that often stem from its existing Project/OEM customers, while also allowing it to engage new customers who could eventually transition into project customers. MRO orders provide a stable, recurring revenue stream, less dependent on capital expenditure cycles and strongly linked to process uptime, regulatory compliance, and lifecycle management

Proceed is being used for: 

• Funding certain capital expenditure of the company towards its (i) electrical heating solutions; and (ii) specialized cable solutions
• Pre-payment or scheduled re-payment, in full or in part, of certain outstanding borrowings availed by the company
• General corporate purposes

Industry overview

India’s temperature sensors and allied products market was valued at around Rs 18.8 billion in FY2026 and is projected to reach Rs 28.8 billion by Fiscal Year 2031 Estimated, growing at a CAGR of 8.9%. Tempsens is the largest manufacturer of contact and non-contact temperature (in terms of revenue) sensors in India as of March 31, 2026. Tempsens is also the only manufacturer of fibre optic temperature sensors and thermal profiling systems in India as of March 31, 2026. Tempsens' manufacturing capabilities are backward integrated for contact temperature sensors, making it one of the few companies in India with this capability in FY26. This deep backward integration in manufacturing puts Tempsens in a uniquely differentiated position.

India’s specialised cables market is steadily expanding, driven by a combination of industrial growth, infrastructure expansion, digital transformation, and regulatory emphasis on safety and energy efficiency. India’s cable export market has shown a strong recovery and impressive growth over the past several years. Starting from a market size of Rs 1,380 crore in FY2020, the sector experienced a significant decline to Rs 810 crore in FY2021, largely due to the global disruptions caused by the COVID-19 pandemic. However, the market bounced back quickly, reaching Rs 1,472 crore in FY2022, and continued its upward trajectory with exports valued at Rs 1,748 crore in FY2023. This growth trend is expected to accelerate further, with the market grew to Rs 2,184 crore in FY2024 and further expanded to Rs 2,750 crore by FY2025.

Between FY2021 and FY2026, the Indian market for electrifiable heating solutions is estimated to have grown from about Rs 900 crore in FY2021 to roughly Rs 1,725 crores in FY2026, implying a 13.9% CAGR. Growth was uneven: FY2020 reflected a steady pre-pandemic base of around Rs 1,150 crore. FY2021 saw a sharp contraction to nearly Rs 900 crore as COVID-19 delayed CAPEX projects and slowed industrial activity. A gradual recovery began in FY2022, with the market rebounding to about Rs 1,050 crore as postponed maintenance and small replacements restarted. By FY2023, demand reached roughly Rs 1,250 crore, supported by the resumption of brownfield expansions and a nascent interest in electrified systems in segments such as chemicals and food processing. FY2024 showed stronger momentum at about Rs 1,450 crore as supply chains stabilised, fuel prices became more volatile, and several process industries began pilot deployments of electric boilers and heaters.

Pros and strengths 

Largest manufacturer of contact and non-contact temperature sensors in India: The company’s products are niche and customized to meet specific customer requirements. It offers one of the most extensive portfolios of bespoke thermal engineering solutions in India and globally. Each manufacturing job operates on a make-to-order basis, i.e., customer requirements are translated into detailed engineering and design workflows, resulting in precise production drawings. This ensures rigorous adherence to accuracy, as well as durability and reliable, on-time delivery. Its approach positions it for complex and critical industrial applications, supports high customer retention, and creates entry barriers for new competitors. The company is the largest manufacturer of contact and non-contact temperature sensors in India in terms of revenue as of March 31, 2026, with a market share of around 10.5% in the temperature sensor segment in Fiscal 2026. It is also the only Indian manufacturer of non-contact temperature sensors as of March 31, 2026, holding approximately 21.3% market share in Fiscal 2026.

Diversified business model: The company operates a diversified business model anchored by a broad portfolio of products, including temperature sensing solutions, electrical heating solutions and specialised cables. Its product offering has expanded from seven categories in Fiscal 2020 to 13 categories in three verticals during Fiscal 2026, covering technologies such as contact and infrared temperature sensors, a range of specialised cables and conductors, electrical heaters, furnaces and calibrators amongst others. It serves a diverse customer base, including both direct customers and distributors. Distributors purchase its products and supply them to end users, extending its reach across multiple segments and regions. Its end-user industries include power, steel, oil and gas, cement, chemicals, plastics, automotive, defence and space. In addition, it supplies a broad range of OEMs, such as manufacturers in green energy, including wind, solar, fuel cells and battery storage as well as plastic injection moulding machine manufacturers, defence, aerospace companies and other advanced technology sectors. 

Established Research and Development capabilities enabling customized, critical solutions and innovation: The company maintains a well-established focus on R&D, supporting its capacity to deliver bespoke and critical solutions for complex industrial requirements. As of March 31, 2026, its dedicated R&D team comprised 83 employees. This team is equipped to address a wide range of technical challenges and provide support for custom solutions. Its ongoing investment in R&D is reflected in its active intellectual property portfolio. The company and its Subsidiaries and its Joint Ventures have been granted (i) 12 patents in India; (ii) eight registered trademarks in India; (iii) one copyright registration in India and (iv) 39 trademark registrations across various jurisdictions outside India.

Global presence: The company has established a broad global presence through a combination of collaborations, joint ventures, subsidiaries, a diverse customer base and a steadily growing export business. These collaborations and international operations have enabled it to expand its product categories, create cross-selling opportunities, and efficiently enter new markets by leveraging local insights and networks. Its physical presence in key regions, including through its Subsidiaries in the United Arab Emirates (Tempsens Gulf LLC), Germany (Tempsens Instruments GmbH), Poland (Tempsens Polska Sp. z o.o., a subsidiary of Tempsens Instruments GmbH) and Joint Ventures in Indonesia (PT. Tempsens Asia Jaya) and in the Republic of Korea (South Korea) (Tempsens Korea Co. Ltd.), enables it to maintain proximity to its customers. This presence supports a deeper understanding of local market needs, facilitates the delivery of tailored solutions, and enables rapid service and support. Local operations also help it to address regulatory, technical and logistical requirements effectively.

Risks and concerns

High dependence on Project/OEM business: Its business is more dependent on Projects/OEM business which contributed 67.55%, 69.16%, and 63.99% of its revenue from operations (excluding scrap sale and export incentive) for Fiscals 2026, 2025, and 2024, respectively, with the remaining contributed by its MRO business. Its Projects/OEM business principally involve large, sometimes one-time, orders as part of new installations or major upgrades at customers’ facilities. These orders typically have high entry barriers and long sales cycles, and their timing and volume can be affected by broader economic or market conditions. Any reduction in demand, operational challenges or loss of business in either the Project/OEM or MRO businesses may materially and adversely affect its business, financial condition, results of operations and cash flows.

Significant revenue dependence on temperature sensing solutions: The company’s business is dependent on temperature sensing solutions, electrical heating solutions, and specialised cables. During Fiscals 2026, 2025 and 2024, 44.59%, 46.48%, and 60.58%, respectively, of its revenue from operations (excluding scrap sale and export incentive) was generated from temperature sensing solutions, while electrical heating solutions and specialised cables contributed 20.70%, 16.79% and 3.90%, and 34.71%, 36.73% and 35.52%, respectively. This demonstrates a higher concentration in the temperature sensing solutions vertical, rather than an equal contribution from all product categories. Its reliance on these product verticals exposes it to the risk that a sustained decline, loss of market share, or reduced customer demand for any of these products, particularly temperature sensing solutions, could have a material adverse effect on its business, financial condition, results of operations, and cash flows.

Significant revenue contribution from international markets: The company generated 28.52%, 26.70% and 21.49% of its revenue (excluding other operating revenue) from outside India for Fiscals 2026, 2025, and 2024, respectively. Selling products in international markets and maintaining and expanding international operations require significant coordination, capital, resources, and compliances with legal and regulatory regimes that it may not be familiar with. To the extent that it is unable to effectively manage its global operations and risks, as it implements its strategy to enter into new markets where it does not have local knowledge and resources, it may be unable to grow or maintain its sales and profitability, or it may be subject to additional unanticipated costs or legal or regulatory action. Whilst there have been no such instances where it had to face any unanticipated costs or any legal or regulatory actions on account of its exports during Fiscals 2026, 2025 and 2024, it cannot assure that such instances will not arise in the future. As a consequence, its business, financial condition, results of operations and prospects may be adversely affected.

Exposure to raw material supply and price volatility: Its business depends on the uninterrupted supply and stable pricing of primary raw materials needed for the production of its products. These materials include metals such as copper, aluminium, stainless steel, nickel alloys, platinum, and rhodium; polymers and plastics; insulating materials; conductors and alloys for sensors; as well as adhesives, sealants, and specialized coatings. Raw material costs can fluctuate significantly due to volatility in commodity markets and crude oil prices, while certain project-related orders may require special materials that are less readily available. Significant volatility, increases, fluctuations, shortages, or delays in the supply of primary raw materials may adversely impact its business, financial condition, results of operations, and cash flows, particularly for project specific or custom orders.

Outlook

Tempsens Instruments (India), along with its subsidiaries and its joint ventures, is engaged in the business of thermocouples, thermowells, wires & cables, infrared pyrometers, imagers, furnace camera systems, calibration equipment, industrial furnace and other related activities. The company offers a diverse product portfolio structured around three core verticals: temperature sensing solutions, electrical heating solutions and specialised cables. Its products play a critical role in ensuring the safe, efficient and reliable operation of manufacturing processes across multiple industries. On the concern side, it generated 18.59%, 23.68%, and 24.74% of its revenue from operations from its top 10 customers for Fiscals 2026, 2025, and 2024, respectively, and any reduction in demand or loss of business from these customers, even though the group may change year to year, may adversely impact its business, results of operations, and cash flows.

The issue has been offering 2,18,33,332 shares in a price band of Rs 285-300 per equity share. The aggregate size of the offer is around Rs 622.25 crore to Rs 655.00 crore based on lower and upper price band respectively. Minimum application is to be made for 50 shares and in multiples thereon, thereafter. On performance front, its total income was Rs 3,824.68 million in Fiscal 2025 compared to Rs 4,558.55 million in Fiscal 2026, an increase of 19.19%. Profit for the year increased by 13.61% from Rs 625.55 million for Fiscal 2025 to Rs 710.67 million for Fiscal 2026.

Meanwhile, the company is committed to enhancing operational efficiency and expanding its manufacturing capabilities across multiple product segments. Its strategy centres on ongoing process optimisation, the adoption of advanced technologies, and continuous improvement initiatives across its manufacturing and supply chain operations. To meet rising market demand and support its market position, it plans to strategically expand manufacturing capacity across its key verticals. Its current initiatives include proposed expansion of Unit VI for electrical heating solutions. Also, it has procured additional land on which expansion may be envisaged in future basis its requirement. These initiatives are expected to enhance its ability to serve growing demand in existing and adjacent product categories.