Kanohar Electricals Aims For ₹950 Crore Revenue In FY27

Market snapshot: Kanohar Electricals Limited has outlined its strategic roadmap for FY27, targeting a revenue of around ₹950 crore. The power equipment manufacturer expects growth to be driven by rising manufacturing volumes and an improved product mix, particularly in the high-margin 400 kV transformer segment. Additionally, management expects similar EBITDA margin profiles to FY26, alongside a projected working capital cycle of 110–120 days (as stated in the source alert; not independently verified).

Data Snapshot

• Targets revenue of around ₹950 crore in FY27, representing substantial growth from the ₹654 crore achieved in FY26.
• Aims to maintain a stable EBITDA margin profile in FY27, similar to the 27.6% EBITDA margin achieved in FY26.
• Holds a highly robust outstanding order book of ₹2,026 crore at the end of Q1 FY27, executable over the next 18 to 24 months.

What's Changed

• Topline momentum is projected to expand significantly, targeting ₹950 crore in FY27 compared to ₹654 crore in FY26.
• The company has scaled its high-voltage mix, with the 400 kV transformer class contributing 70.2% of transformer sales in Q1 FY27 compared to 52.2% in FY26.

Key Takeaways

• Topline targets of around ₹950 crore represent a projected growth of ≈45% YoY (derived: ₹950 cr vs ₹654 cr).
• Execution will rely heavily on high-voltage products like the 400 kV transformers which are seeing rising volume contribution.
• With a healthy outstanding order book of ₹2,026 crore (executable over 18–24 months), revenue visibility remains highly secure.
• Managing the working capital cycle remains crucial as operations scale post-IPO, with a projected cycle of 110–120 days (as stated in the source alert; not independently verified).

SAHI Perspective

Kanohar Electricals is capitalizing on India's heavy electrical transmission grid capex. Following a successful IPO in September 2026, the company is leveraging its specialized short-circuit certifications for 400 kV transformers. Operational leverage has already started playing out as seen in the stellar Q1 FY27 results, where standalone net profits jumped 140% YoY to ₹27 crore. Maintaining similar high EBITDA margins (FY26 was 27.6%) while scaling up by ≈45% YoY (derived: ₹950 cr vs ₹654 cr) will demonstrate high execution capability.

Market Implications

The electrical equipment sector is undergoing robust growth driven by national grid upgrades and renewable energy transmission lines. Successful scaling by Kanohar is likely to bolster interest in capital goods and high-voltage transformer manufacturers, showing that newly-listed micro-caps can successfully execute massive order books.

Trading Signals

Market Bias: Bullish

The guidance of ₹950 crore revenue represents a robust scaling path supported by a huge ₹2,026 crore order book (approximately 3.1x of FY26 revenue), indicating comfortable mid-term revenue visibility.

Overweight: Heavy Electrical Equipment, Power Infrastructure

Trigger Factors:

• Winning major high-voltage orders, specifically in the 765 kV transformer segment.
• Timely completion of the brownfield capacity expansion at its Gangol manufacturing unit.
• Quarterly execution rates reaching above ₹200 crore to meet the FY27 target.

Time Horizon: Medium-term (3-12 months)

Industry Context

The power transformer market in India is highly consolidated due to steep entry barriers, such as technical certifications and pre-qualifications. Kanohar is one of only five manufacturers in India holding short-circuit test certification for 500 MVA, 400 kV transformers, allowing it to bid on complex government utility tenders.

Key Risks to Watch

• High dependency on government and public sector customers, which accounted for over 93% of the order book in FY26.
• Execution delays or raw material price volatility (CRGO steel, copper) could impact the projected stable EBITDA margins.
• Working capital requirements are expected to elevate as execution ramps up in the second half of the fiscal year.

Recent Developments

In Q1 FY27, Kanohar reported outstanding financial results with standalone revenue rising 103.5% YoY to ₹137 crore and standalone net profit expanding 140% YoY to ₹27 crore. Additionally, the company added ₹332.30 crore in incremental orders during the quarter, bringing the total order book to ₹2,026 crore.

Closing Insight

Kanohar Electricals stands at a critical execution junction post-IPO. If it manages its working capital requirements efficiently and delivers on its Gangol brownfield expansion, the company has a clear runway to achieve its ₹950 crore FY27 milestone.

High Performance Trading with SAHI.