Kanohar Electricals shares rose as much as 20% to about ₹1,130 on October 7, 2026, after the transformer maker reported a 140% jump in quarterly profit in its first results since its September 16 listing.
From Issue Price to a New High in Three Weeks
Kanohar Electricals, a Meerut-based transformer manufacturer, raised ₹1,055.74 crore through its IPO, made up of a ₹300 crore fresh issue and a ₹755.74 crore offer for sale. The issue was open from September 8 to September 10, 2026, at a price band of ₹601 to ₹632 per share, and it was subscribed roughly 90 times.
The shares listed on September 16 at ₹685.50 on the NSE, an 8.47% premium to the ₹632 issue price, and at ₹672.05 on the BSE, a 6.34% premium. On October 7, the stock reached an intraday high of ₹1,129.35 on the BSE, which is about 79% above the issue price, with trading volumes more than three times the average, according to Business Standard.
| IPO Detail | Figure |
| Issue size | ₹1,055.74 crore |
| Price band | ₹601 to ₹632 per share |
| Issue price | ₹632 per share |
| NSE listing price (September 16) | ₹685.50 |
| BSE listing price (September 16) | ₹672.05 |
| Intraday high on October 7 (BSE) | ₹1,129.35 |
What the June Quarter Showed
Kanohar Electricals announced its unaudited results for the quarter ended June 30, 2026 on October 6, after market hours. It was the company's first quarterly disclosure as a listed firm, and investors responded when trading opened on October 7.
Revenue from operations rose 103.5% to ₹137.07 crore from ₹67.36 crore a year earlier. Net profit climbed 140% to ₹27.34 crore from ₹11.39 crore. Profit before tax was ₹37 crore against ₹16 crore. The operating margin, measured as earnings before interest, tax, depreciation and amortisation, improved to 28.3% from about 22.8%.
Management attributed the improvement to higher manufacturing volumes and a better product mix, with a larger share of 400 kV transformers. These units made up about 70% of first-quarter revenue, according to Business Standard. They are used in high-voltage power transmission and are technically more complex than lower-rated equipment.
The profit growth outpaced the revenue growth. Net profit rose 140% on a 103.5% rise in revenue, which means each rupee of sales produced more profit than a year earlier. Management linked this to higher operating leverage, meaning fixed manufacturing costs were spread over a larger volume of output.
The Order Book and the 765 kV Question
Kanohar Electricals added new orders worth ₹332.30 crore in the quarter and ended it with an outstanding order book of ₹2,026 crore, to be executed over the next 18 to 24 months. That compares with an order book of ₹1,818.32 crore at March 31, 2026, as disclosed in the offer document.
The company has built the capability to manufacture 765 kV transformers but has not yet announced meaningful orders in that category. Prathamesh Kadival, research analyst at Bonanza, said that winning 765 kV orders and sustaining margins are likely to determine the next phase of the company's valuation story, and that a brownfield expansion at Gangol is the main medium-term trigger for added capacity. Bonanza also noted a revenue guidance of ₹950 crore for FY27.
Risks Listed in the Offer Document
The IPO documents show the growth has come with concentration. For FY26, Kanohar Electricals reported revenue from operations of ₹653.84 crore and profit after tax of ₹129.73 crore, with an operating margin of 27.59%. However, the top 10 customers contributed 93.16% of FY26 revenue, and central and state utilities and public sector units accounted for 85.37% of it. The company's order book is also tender-driven, which means results depend on continued success in a narrow set of large bidding relationships.
Operating cash flow was ₹25.84 crore in FY26 against profit after tax of ₹129.73 crore, which reflects the working capital needed to support a larger order book. The offer document projected FY27 working capital requirements of about ₹530.52 crore.
What Investors Are Tracking Next
As a newly listed company, Kanohar Electricals has limited public reporting history, so each set of results carries weight. The June quarter has set a higher bar: a quarter in which revenue doubled and profit rose 140%. Whether later quarters can match that depends on execution of the existing order book, conversion of 765 kV opportunities and the pace of the Gangol expansion.
On October 7, the stock rose while the broader market fell. The BSE Sensex was down 0.16% at 11:13 AM, when Kanohar Electricals traded 17% higher at ₹1,097.25.
