Kanohar Electricals shares surged 18% to ₹885.65 in Thursday's intraday trading, extending gains for a third consecutive session. The stock has now rallied 40% from its issue price of ₹632 since its market debut on Wednesday, significantly outperforming the BSE Sensex which was down 0.04% at 74,309. According to Business Standard, the stock is currently trading 14% higher at ₹855.05 with a combined 20.46 million shares changing hands on the NSE and BSE. The sustained rally reflects strong investor confidence in the transformer manufacturer's growth prospects.
The Rs 1,055.74 crore IPO was subscribed 90.59 times overall, with the retail portion receiving bids for 20.51 times the shares on offer. As reported by The Economic Times, the NII category was subscribed 87.74 times, while the QIB portion saw a staggering 215.37 times subscription. The strong subscription numbers indicate robust investor confidence in the transformer manufacturer's growth prospects.
Kanohar's order book increased sharply from ₹596 crore in FY24 to ₹861 crore in FY25 and ₹1,818 crore in FY26, with transformer manufacturing accounting for 89.2% of the FY26 order book. According to Business Standard, power transformers alone contributed ₹1,237 crore (68%) of the total order book. The company received a ₹569 crore order from Power Grid Corporation for 500 MVA, 400 kV power transformers in June 2025, as noted by ICICI Securities. This positions Kanohar among only five companies in India with short-circuit test certification for 500 MVA, 400 kV transformers.
According to market analysis reported by The Economic Times, power transformers, the largest segment, are expected to grow from ₹21,612 crore in CY25 to ₹32,329 crore by CY30, registering an 8.4% CAGR. The traction transformer market grew from ₹1,340 crore in CY19 to ₹1,992 crore in CY25, at a 6.8% CAGR, and is projected to reach ₹2,936 crore by CY30, growing at an 8.1% CAGR, driven by railway electrification, locomotive modernisation and the rollout of Vande Bharat and Namo Bharat trains.
Geojit Investments highlighted that Kanohar offers attractive investment merit backed by strong order-book visibility, leadership in the transformer segment, healthy profitability, strong return ratios, low leverage and favorable industry tailwinds. As reported by Business Standard, India's transformer market is expected to grow from $4.9 billion in CY25 to $6.9 billion by CY30 at a compound annual growth rate (CAGR) of 6.7%, driven by grid expansion, electrification and infrastructure investments. The company operates two manufacturing facilities in Meerut, Uttar Pradesh, with a combined transformer manufacturing capacity of 19,200 MVA as of March 31, 2026, along with five regional offices across India and a workforce of 526+ employees.
