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KAKANOHAR

KANOHAR Q1 FY27 results (Apr–Jun 2026) and concall

Capital Goods · Concall AI · Call held 7 Oct 2026

Company page: KANOHAR share price, financials & guidance record

Source transcript

Management summary

Kanohar Electricals reported a strong Q1 FY27, driven by robust revenue and profit growth, with significant margin expansion. The company's order book saw an 11% QoQ increase, providing good visibility for future execution. Management highlighted the increasing contribution of high-value 400 kV transformers and the strategic importance of their EPC capabilities, while acknowledging supply chain as a key risk.

Highlights

  • Revenue from operations grew 103.5% YoY to INR137.1 crores.

  • EBITDA increased 152.2% YoY to INR38.8 crores, with margins expanding 550 bps to 28.3%.

  • PAT grew 140% YoY to INR27.3 crores, with margins at 19.9%.

  • Order book stood at INR2,026 crores as of June 30, 2026, up 11% QoQ.

  • Secured INR332.2 crores in incremental orders during Q1 FY27.

Concerns

  • Gross margins slightly declined to 41.9% in Q1 FY27 from 43.2% in Q1 FY26.

  • Working capital cycle remains long at approximately 120 days, typical for the sector.

  • Supply chain identified as a key risk, though managed through careful planning.

Key financials

  1. Revenue from Operations ₹137.1 Cr +103.5%YoY
  2. Gross Profit ₹57.5 Cr +97.4%YoY
  3. Gross Margin 41.9%
  4. EBITDA ₹38.8 Cr +152.2%YoY
  5. EBITDA Margin 28.3%
  6. PAT ₹27.3 Cr +140%YoY
  7. PAT Margin 19.9%

What they filed

₹ Cr · quarterly
Line itemQ1 FY26Q2 FY26Q4 FY26Q1 FY27
Revenue67 166 299 137
EBITDA15 43 88 39
Net profit11 31 63 27
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Transformer Business
    84.9% Revenue Contribution
  • EPC Business
    14.8% Revenue Contribution
  • Power Transmission
    85.2% Revenue Contribution
  • Railways
    11.5% Revenue Contribution
  • Renewable Energy
    2.8% Revenue Contribution
  • Power Distribution
    23% Revenue Contribution
  • 400 kV Transformers
    70.2% Revenue Contribution
  • 132 kV to below 220 kV Transformers
    11.4% Revenue Contribution
  • 220 kV to below 400 kV Transformers
    3.2% Revenue Contribution
  • Below 132 kV Transformers
    23% Revenue Contribution

Order book

high confidence

Total value

₹2,026 Cr

as of 2026-06-30 quantified

11.4% QoQ

Inflow this quarter

₹332.2 Cr

Execution

executable over next 18 to 24 months

Composition

Mix 2 products
  • Power Transformers (majority 400 kV) 70%
  • Shunt Reactors 13.1%

Share of order book by product· partial disclosure (83.1% of the book)

Pipeline

other

Market opportunity for traction transformers in high-speed rails

The order book provides good visibility for future execution, with a significant portion coming from high-value power transformers and shunt reactors.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex Capex disclosed Part of the proceeds from the IPO will be used for this expansion.
    • Brownfield expansion of 18,000 MVA at Gangol plant for capacity expansion
    • Solar power plant
    On the capacity side, we are planning a brownfield expansion of about 18,000 MVA at our Gangol plant. Part of the proceeds from the IPO will be used for this expansion... It's about in the range of 2,500 kilowatt [for solar power plant].
  • Liquidity Liquidity disclosed Net working capital cycle of around 120 days (120 days of receivables and 80 days of inventory, offset by 70-80 days of payables).
    On working capital, our business carries roughly 120 days of receivables and 80 days of inventory, offset by 70 to 80 days of payables. This gives us a net working capital cycle of around 120 days.

Guidance & targets

Revenue

  • Revenue Revenue · FY27 · High confidence INR950 crores
    We are targeting a revenue of approximately INR950 crores with a broadly similar EBITDA margin profile as FY26.

    — Abhishek Singhal

Margin

  • EBITDA Margin Margin · FY27 · High confidence broadly similar as FY26
    We are targeting a revenue of approximately INR950 crores with a broadly similar EBITDA margin profile as FY26.

    — Abhishek Singhal

Working Capital

  • Net Working Capital Days Working Capital · next couple of years · High confidence 110-120 days
    We are guiding towards a similar 110-120 net working capital days. It's just the nature of the business. I think it's expected to be in that range itself.

    — Abhishek Singhal

Market Growth

  • 400 kV Market Growth Market Growth · for sure · Medium confidence 10%-15%
    Maybe we can say 10%-15% for sure.

    — Abhishek Singhal

Revenue Contribution

  • Shunt Reactor Revenue Contribution Revenue Contribution · on an average basis · Medium confidence 10% to 15%
    So it is likely to remain in the 10% to 15% kind of zone for the revenues on an average basis.

    — Abhishek Singhal

Capacity

  • Brownfield Expansion Capacity Capacity · by FY29 · High confidence 18,000 MVA
    On the capacity side, we are planning a brownfield expansion of about 18,000 MVA at our Gangol plant... we aim to have this new capacity in place for FY29, well before we approach our limits.

    — Abhishek Singhal

Revenue Growth

  • Year-on-Year Growth Revenue Growth · FY28 · Medium confidence similar to FY27
    No. We haven't given a specific number for FY28, but we can say that the similar year-on-year growth that we are guiding for FY27 can be more or less expected in FY28 as well.

    — Abhishek Singhal

  • Growth Rate Revenue Growth · FY29 · High confidence not significantly higher than 40-45%
    No. I don't think we should expect more than this.

    — Abhishek Singhal

Capacity Utilization

  • Capacity Utilization Capacity Utilization · FY28 · Medium confidence approximately 90%
    So, at that growth rate, you'll be at approximately 90% capacity utilization of your current 19,200 MVA capacity. Can you please confirm that for me?

    — Utkarsh Somaiya (question), Abhishek Singhal (implied)

What to watch in Q2 FY27

Order Inflow

Next quarter (Q2 FY27)
Current INR332.2 crores in Q1 FY27
Target Continued strong order inflows, especially from GEC-III projects

Why it matters

Order inflow is a leading indicator for future revenue growth in the capital goods sector.

During Q1, that is April to June period, we added incremental orders worth INR332.2 crores. And for Q2, that is July to September period, we added incremental orders worth INR867.3 crores rupees, which includes large orders, having said that INR250 crores and above, received from Central Public Sector Undertaking.

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Risks & concerns

  • Raw material price volatility

    medium

    Managed through industry-standard IEEMA Price Variation Clause in most contracts.

    Management acknowledged

  • Supply chain disruptions

    medium

    Identified as the key risk, managed by careful planning of raw material requirements.

    Management acknowledged

  • New entrants in 400 kV and Scott transformer segments

    medium

    Qualification process (short-circuit tests, past performance) is time-consuming (18-24 months), creating a barrier to entry.

    Management acknowledged

  • Potential short-term supply-demand mismatch and margin pressure

    low

    May occur beyond 3-4 years, but long-term structural demand is expected to sustain supply.

    Management acknowledged

Q&A highlights

8 direct
Transformer margins and raw material volatility Direct
In our case, most of our contracts are actually with price variation, and there is an industry-standard IEEMA Price Variation Clause that takes care of the volatility of the raw material, both on the upside as well as downside.

Addresses concerns about margin pressure due to raw material costs, indicating a mechanism to mitigate this risk.

Asked by Sharan from Unifi Capital

400 kV market size and export plans Direct
Right now, India is presenting enough and more opportunities, and so we believe that any kind of export operation requires focus. Our focus is right now on the Indian market. But having said that, in future, three, four years down the line, if it requires, we can have a re-look at exports as well.

Clarifies the company's current strategic focus on the domestic market for 400 kV transformers, while keeping export options open for the future.

Asked by Sharan from Unifi Capital

Impact of GEC-III on order intake and structural tailwinds Direct
Yes, but of course, there are strong tailwinds on account of this intra-state transmission. And as I explained earlier, this looks like a multi-decadal kind of a structural tailwind. And due to this several factors coming up at once, the sector is poised to do well in the coming years and decades.

Highlights the significant long-term growth opportunity from government initiatives like GEC-III, reinforcing the positive industry outlook.

Asked by Lovish from Burman Capital

Gross margin fluctuation and one-offs Direct
So, transformer manufacturing business is a higher gross margin business as compared to EPC. And so, one of the reasons of the movements from FY24 to '26 was that share of manufacturing has went up, basically. And that has led to a higher blended gross margin in our case... In transformer business itself... they all carry a similar kind of margin profile, so there is not much difference between them.

Explains that gross margin movements are primarily due to product mix (higher manufacturing share) rather than one-off events or significant margin differences between core premium products.

Asked by Lovish from Burman Capital

Scott Transformers order pipeline and market opportunity Direct
So, they envisaged about 1,000 traction substations for high-speed rails in the next 5 to 10 years. And each substation has 2 numbers of these transformers. So, roughly about 2,000 transformers. And just to give a ballpark number, that that will translate into roughly INR20,000 crores of market opportunity for just for just the traction transformers in the next 5 to 10 years.

Provides a quantified long-term market opportunity for specialized Scott-connected transformers in the railway sector, a key growth area for the company.

Asked by Bhakti Shewale from Nuvama Institutional Equities

Order book growth for FY27 and coverage for future revenues Direct
But what we can comment is that on the basis of current activity, the order book at the end of FY27 might be sufficient or adequate to cover the projected revenues for FY28 and '29, mostly.

Indicates strong revenue visibility for the next two fiscal years based on the current order book, suggesting stability in future earnings.

Asked by Jinesh Karia from Union Asset Management

Reasons for degrowth in FY24 and low capacity utilization Direct
Yes. So in FY24, you know, all these certifications that we have right now, basically on the 400 kV side and the Scott side, mostly were obtained in FY24. So, much of the management time and attention were focused on that. And so, once we got through that, we became eligible for the large tenders, and that led to, you know, the increase in order intake as well in top line.

Explains past performance (FY24 degrowth) as a strategic focus on obtaining critical certifications, which subsequently enabled the company to bid for larger, more profitable tenders, leading to current growth.

Asked by Het Shah

Supply chain as a key risk Direct
You rightly touched upon it. In terms of risk, if you were to think about it, supply chain would be the key risk at this point. And the Company tries to manage that by carefully planning all the raw materials that are required for its production plan.

Identifies the primary operational risk and management's approach to mitigate it, providing insight into potential challenges.

Asked by Jainam Vora from Saltoro Investment Advisors

2 min read 6 chapters

Detailed narrative

Strong Q1 FY27 Performance

Kanohar Electricals reported robust financial results for Q1 FY27, with revenue from operations growing 103.5% year-on-year to INR137.1 crores. This growth was accompanied by significant margin expansion, as EBITDA increased by 152.2% to INR38.8 crores, and EBITDA margins improved by 550 basis points to 28.3%. Profit After Tax (PAT) also saw a substantial rise of 140% year-on-year, reaching INR27.3 crores, with PAT margins at 19.9%.

Order Book and Revenue Visibility

As of June 30, 2026, the company's consolidated order book stood at INR2,026 crores, representing an 11% increase from INR1,818.3 crores as of March 31, 2026. During Q1 FY27, incremental orders worth INR332.2 crores were added, with an additional INR867.3 crores in Q2 FY27 (July-September). Management indicated that the order book provides sufficient visibility to cover projected revenues for FY28 and FY29, with execution timelines typically ranging from 18 to 24 months.

Strategic Product Mix and Market Focus

The company's product mix continues to shift towards premium, high-value offerings, with 400 kV transformers contributing 70.16% of Q1 FY27 revenue. The transformer business accounted for 84.9% of total revenue, while the EPC business contributed 14.81%. Kanohar Electricals is strategically focused on the Indian market, particularly the transmission and railway sectors, due to significant domestic opportunities, including the Green Energy Corridor III initiative and railway electrification projects.

Industry Tailwinds and Growth Opportunities

Management highlighted strong structural tailwinds in the power transmission and railway infrastructure sectors, driven by industrialization, urbanization, and renewable energy integration. The 400 kV market is estimated to be INR4,000-INR6,000 crores annually, growing at 10-15%. The railway sector presents a substantial opportunity for specialized Scott-connected transformers, with an estimated market size of INR20,000 crores over the next 5-10 years for traction substations.

Capacity Expansion and Working Capital Management

Kanohar Electricals plans a brownfield expansion of approximately 18,000 MVA at its Gangol plant, utilizing IPO proceeds, with the new capacity expected to be operational by FY29. This expansion is planned ahead of demand, as existing capacity is sufficient through FY28. The company maintains a net working capital cycle of around 120 days, which is typical for the long build cycle of large transformers, and manages raw material price volatility through IEEMA price variation clauses in its contracts.

Seasonal Revenue Pattern

The company noted an industry trend where the first half of the fiscal year (H1) typically sees softer revenue realization, while the second half (H2) is heavier. This pattern is expected to continue, with H2 FY27 anticipated to be the key execution period for the current fiscal year. This seasonality influences the quarterly revenue recognition profile.

Summary of a publicly available earnings call transcript; see how call summaries are prepared. Not investment advice.