ewsba.se
Kanohar Electricals shares jumped over 15% on Wednesday, 7 October, after the company reported strong Q1 FY27 financial performance. The company declared its financial results for the quarter ended 30 June 2026, on 6 October 2026, marking its first quarterly financial disclosure after listing on the BSE and NSE in September 2026.
According to the company’s financial results, revenue from operations for the quarter ended June more than doubled year-on-year to ₹137 crore, compared with ₹67 crore in Q1 FY26. EBITDA surged 152.2% to ₹39 crore, from ₹15 crore a year earlier, while the EBITDA margin expanded to 28.3% from 22.8%.
Profit before tax rose 134.7% year-on-year to ₹37 crore, compared with ₹16 crore in the year-ago quarter. Profit after tax jumped 140% to ₹27 crore, from ₹11 crore, with the PAT margin improving to 19.9% from 16.9%.
Abhishek Singhal, Whole-Time Director of Kanohar Electricals, said the company continued the momentum from FY26 into Q1 FY27, with revenue doubling year-on-year while maintaining healthy gross margins and improving EBITDA and PAT margins.
He attributed the improvement in profitability to higher manufacturing volumes and a better product mix, particularly the increased contribution from the 400kV segment, which supported operating leverage.
Singhal said the company secured incremental orders worth around ₹332.3 crore during the quarter, taking its outstanding order book to ₹2,026 crore, executable over the next 18–24 months.
He added that Kanohar Electricals is investing in brownfield capacity expansion at its Gangol unit, as well as in sustainability initiatives. The planned capex over the next 18 months is expected to support growth and sustainable profitability.
The company is also focused on executing its newly won 400kV transformer orders and is looking to secure additional orders in the 765kV transformer segment, where it has already built manufacturing capabilities. Singhal highlighted certifications and pre-qualifications as significant barriers to entry in the transformer industry.
With a presence across power transmission, power distribution, railways and renewable energy, the company sees a long runway for growth, supported by available capacity and a consistent order pipeline, he said.
For FY27, Kanohar Electricals is targeting revenue of ₹950 crore while maintaining a similar EBITDA margin profile to FY26, Singhal added.
Prathamesh Kadival, Research Analyst at Bonanza, said Kanohar Electricals delivered a strong Q1 FY27 performance, with revenue doubling year-on-year to ₹137 crore, while EBITDA surged 152% to ₹39 crore and net profit rose 140% to ₹27 crore. EBITDA margin also expanded sharply to 28.3% from 22.8%, supported by higher manufacturing volumes and a favourable product mix.
More importantly, around 70% of Q1 revenue came from 400kV transformers, marking a structural shift towards higher-voltage and more technically complex products rather than growth driven purely by volumes, Kadival noted.
The company's ₹2,026 crore order book provides strong revenue visibility for the next 18–24 months, while it added another ₹332 crore of orders during Q1. Against its FY27 revenue guidance of ₹950 crore, order visibility remains comfortable, he added.
Kadival said the Gangol brownfield expansion is the key medium-term trigger, as it should increase execution capacity as Kanohar scales its transformer business. Meanwhile, the 765kV transformer segment could emerge as an important re-rating trigger. Although the company has developed the manufacturing capability, meaningful orders in this segment are yet to materialise.
“Winning 765kV orders would move the company further up the technology and value chain and can support better growth and margins,” Kadival said.
Going ahead, investors will closely track 400kV and 765kV order wins, order-book growth, the ramp-up of Gangol capacity, execution towards the ₹950 crore FY27 revenue target and the sustainability of the strong 28% Q1 EBITDA margin, he added.
“Overall, Q1 validates the growth story, while the fundamental attraction is Kanohar's transition into higher-voltage transformers, backed by a ₹2,000 crore order book and capacity expansion,” Kadival said. He added that while the recent rally is supported by the strong financial performance, 765kV order conversion and margin sustainability are likely to determine the next meaningful re-rating.
Kanohar Electricals share price today opened at ₹1,038.95 apiece on the BSE, the stock touched an intraday high of ₹1,090.50, and an intraday low of ₹1,010.40 per share.
Shares of transformer manufacturer Kanohar Electricals Ltd made a strong debut on 16 September, settling nearly 19% above the IPO issue price of ₹632.
On the BSE, the stock opened at ₹672.05, a 6.33% premium to the issue price, before surging as much as 24.51% to ₹786.95 during the session. It eventually closed at ₹751.30, up 18.87% from the issue price.
On the NSE, Kanohar Electricals debuted at ₹685.50, marking an 8.46% premium. The stock ended the session at ₹751.50, gaining 18.90% over the IPO price.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.