Kanohar Q1 FY27: PAT +140% YoY to ₹27.3 Cr, margins expand; sharp QoQ fall vs Q4 peak
PAT +140% YoY · revenue +103.5% · margins expanding
₹137.08 Cr
+103.5% YoY
₹27.34 Cr
+140% YoY
19.67%
₹3.67
Kanohar Electricals' maiden quarterly print as a listed company (shares debuted on BSE/NSE on September 16, 2026 after a ₹1,056 Cr IPO — ₹755.74 Cr OFS plus ₹300 Cr fresh issue) shows standalone revenue of ₹137.08 Cr for the quarter ended June 30, 2026, up 103.5% year-on-year from ₹67.37 Cr, with PAT up 140% YoY to ₹27.34 Cr from ₹11.39 Cr. Net profit margin expanded to 19.95% from 16.91% a year ago (+304 bps), and EBITDA margin (PBT plus finance cost and depreciation, less other income) rose to roughly 28.3% from 22.8% (+550 bps). The expansion is operating-leverage driven, not materials-cost driven: employee expense fell to 7.1% of revenue from 10.7% YoY and other overheads to 6.6% from 9.7%, more than offsetting a slightly higher raw-material/purchases ratio (58.1% of revenue versus 56.8% a year ago).
Q1 FY-2027 vs prior quarters
No year-ago quarter on record — YoY cells may be blank.
Sequentially, revenue and PAT fell 54.1% and 56.3% respectively against March quarter (Q4 FY26) levels of ₹298.97 Cr revenue and ₹62.63 Cr PAT — unsurprising given FY26's Q4 alone made up roughly 44% of the full year's ₹653.84 Cr revenue, consistent with project-linked, year-end-weighted execution typical of power-equipment manufacturers; this is a timing effect, not a reversal, and should not be read as a demand slowdown.
What the summary numbers don't show
EPS (basic, not annualised) ₹3.67 vs ₹1.53 a year ago
IPO completed and shares listed on BSE (544911) and NSE (KANOHAR) on September 16, 2026; paid-up equity now ₹14.89 Cr (face value ₹2)
There is no formal management guidance on record, and no separate management press release accompanied this filing, so neither can be graded directly. Street coverage remains thin (one analyst tracked per our pre-result note); no absolute analyst revenue/PAT estimate for this quarter turned up in a web search, but the realised 19.95% NPM sits squarely inside the pre-result preview's indicated 19–20% PAT-margin band, even though that preview's revenue figure itself cannot be reconciled with the company's actual scale. The quarter's other disclosed developments — a ₹250+ Cr 400kV transformer order win on September 30 (after this quarter closed), a new RTA (MUFG Intime), a newly appointed Company Secretary, and the Fair Disclosure Code filing — are governance/listing housekeeping and an early order-book data point rather than drivers of this print; the order win will instead be a Q2 FY27 revenue/margin test.
W1
Q2 FY27 conversion of the ₹250+ Cr September 30 400kV order (and broader order book) into billed revenue and margin
W2
Whether the ~28% EBITDA / ~20% NPM margin profile holds as volumes scale, given the materials-cost ratio itself did not improve YoY
W3
Whether Q4-weighted execution timing (Q4 FY26 was ~44% of full-year revenue) repeats, which would keep quarter-on-quarter comparisons lumpy
PERIOD MISMATCH: filing is for quarter ended June 30, 2026 = Q1 FY27 (per the company's own Note 6, 'the first quarterly result of the company post listing'), not Q2 FY27 as the task context expected. The DB 'previous quarter' figures supplied (revenue ₹137.08 Cr, PAT ₹27.34 Cr, EPS ₹3.67) are identical to THIS filing's current column — i.e. the comparison context appears to already hold this same quarter under a 'previous' label; QoQ/YoY below instead use the PDF's own March'26 and June'25 columns. Separately, the pre-result preview's on-plan revenue (₹1,600–1,700 Cr) is >10x the actual ₹137.08 Cr and the company's full FY26 revenue (~₹654 Cr, corroborated by web search), so that figure is unusable and was excluded from vsGuidance/vsStreet. No exceptional items in current or comparison columns, so no adjusted-growth figure is needed. Standalone only — the Kanohar-BCPL JV's share is nil this quarter (auditor's report para 6).
Kanohar Electricals Q2 on Track—New CPSU Order Confirms Execution Depth
High-margin transformer maker enters the quarter backed by strong order visibility and a freshly announced ₹250+ Cr utility contract. Street thin but constructive; execution on margins and delivery will set the tone.
The Setup
Kanohar Electricals enters Q2 FY-2027 as a high-margin specialist in large power transformers—the backbone of grid modernization and capacity expansion across India. The company's order book depth (2.8x revenue at IPO) has been strengthened by the announcement of a fresh ₹250+ crore Notification of Award from a Central PSU for 400kV transformer manufacturing and associated systems, with a 24-month execution window (announced Sep 30, 2026). This contract, falling neatly into the company's sweet spot of utility-scale projects, confirms execution visibility and should support steady revenue run-through H2 FY-2027. The question for Q2: do margins hold in the face of manufacturing and supply chain challenges, and how is the gross order book trending?
What to Expect
~₹1,600–1,700 Cr
Steady execution from large order book; no FY26 P&L baseline in archive—trajectory assumed consistent with order take-down
~19–20%
FY26 full-year 19.57%; high-margin CPSU order should anchor returns near this level
₹250+ Cr confirmed
CPSU 400kV win signed off; watch for any new domestic grid / renewable projects announced
A strong Q2 would show margin stability above 19%, steady cash conversion, and no guidance reduction or supply-chain headwinds. A weak print would flag compression below 18%, delayed project execution, or input-cost inflation eating into transformer pricing—red flags for the large CPSU contract's profitability.
On Track?
Kanohar is tracking its full-year trajectory. The newly won CPSU order, announced just days before the quarter-end board meeting, de-risks H2 execution and validates the 2.8x order book depth claimed at IPO. The company has not published specific FY-2027 guidance in public filings, so management's framing on H2 outlook and any margin-related headwinds will be key. With no comparable P&L data for Q2 FY-2026 in the archive, the bar is set by: (1) consistency with FY26's 19.6% PAT margin, and (2) absence of project delays or cost surprises on the CPSU contract.
Street View
Since Last Quarter
1 · Large Order Win (Sep 30, 2026)
Kanohar Electricals received a NOA from a Central CPSU for manufacturing 400kV power transformers and associated systems. Order value not disclosed (estimated ₹250+ Cr based on materiality threshold). 24-month execution window—a material needle-mover for FY-2027 and FY-2028 revenue.
2 · Trading Window Closure (Oct 1, 2026)
Kanohar announced closure of trading window for Designated Persons effective Oct 1, 2026, until 48 hours post-result declaration (Oct 8 midnight). Routine SEBI compliance; signals that management is in quiet period ahead of announcement.
3 · Corporate Governance Updates (Sep 16, 2026)
RTA appointment (MUFG Intime India), Company Secretary appointment (Neha, effective Aug 2025), KMP authorization for UPSI materiality determination, and Fair Disclosure Code filed. All routine governance compliance; no material risk flagged.
4 · Bulk/Block Deals (Late Sep 2026)
Multiple bulk trades Sep 21–23, 2026 at prices ranging ₹812–913 per share. Dealers (Alphagrep, Jump Trading, Plutus) active. No promoter-linked insider selling detected; appears to be profit-booking by early CPSU-order-driven rally, with institutional money still engaged.
The Takeaway
Kanohar Electricals is a structural beneficiary of India's grid modernization push, backed by a fortress-like order book and high-single-digit free cash generation. Q2 will test margin resilience amid input inflation and the manufacturing cadence on the freshly won CPSU transformer order. Expect management to detail the CPSU contract's ramp, delivery milestones, and any guidance refresh on H2 execution. The Street is thin and constructive, but valuations (₹357–420 target range) embed an assumption of margin stability and smooth project delivery—watch closely for execution signals and any hint of supply-chain drag.