Kanohar’s 400kV mix lifts standalone operating margin to 28.27%
Management cited higher manufacturing and a better product mix, alongside a Rs 2,026 cr orderbook and planned Gangol capacity expansion.
Filed 06 Oct 2026, 19:25 IST · after market close · Kanohar Electricals Ltd (KANOHAR)
Key takeaways
- Standalone operating profit of Rs 38.75 cr on revenue of Rs 137.08 cr produced a 28.27% operating margin, with management attributing the result to higher manufacturing and a better 400kV mix.
- Management said it added orders worth approximately Rs 332.3 cr and ended the quarter with a Rs 2,026 cr orderbook executable over 18–24 months.
- Kanohar’s 28.27% operating margin was 16.46 percentage points above the 11.81% median for 285 Industrials peers that reported the quarter.
Price around the results
400kV mix drives standalone profitability
Revenue of Rs 137.08 cr generated operating profit of Rs 38.75 cr, with a 28.27% operating margin. Management said profitability improved because manufacturing volumes increased and the 400kV segment contributed more to the product mix. Profit was led by operations: other income was Rs 1.92 cr against profit before tax of Rs 36.84 cr.
Margin remains well above the Industrials peer median
Kanohar’s operating margin was 16.46 percentage points above the 11.81% median reported by 285 Industrials peers for the same quarter. The comparison places the company among the higher-margin reporters, with its rank from the bottom at 271.
Orders support Gangol expansion plans
Management said the company added approximately Rs 332.3 cr of orders during the quarter and closed with a Rs 2,026 cr orderbook executable over 18–24 months. The company told analysts that it is investing in a brownfield expansion at Gangol over the next 18 months, including Rs 64.2 cr of machinery and equipment to raise transformer capacity, automate backward integration and improve efficiency. Management said it is targeting FY27 revenue of approximately Rs 950 cr with an EBITDA margin profile similar to FY26, and has built capability for 765kV transformers.
Results came after the market close
The standalone results were filed after market close on 6 October 2026. The market response is therefore outside this readout.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹137 cr |
| Other income | ₹2 cr |
| Expenses | ₹98 cr |
| Operating profit | ₹39 cr |
| Operating margin (%) | 28.27% |
| Interest | ₹3 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹37 cr |
| Tax | ₹10 cr |
| Net profit | ₹27 cr |
| EPS (₹) | ₹3.67 |
Operating margin of 28.27% compares with a Industrials sector median of 11.81% across 285 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Manufacturing increased and the product mix improved, with a higher contribution from the 400kV segment.
Guidance & outlook
- The company is targeting FY27 revenue of approximately Rs. 950 Crs with an EBITDA margin profile similar to FY26.
Expansion
- The company is investing in a brownfield capacity expansion at its Gangol unit, with capex planned over the next 18 months.
- The company has proposed Rs. 64.2 Crs for machinery and equipment at Gangol to increase transformer capacity, automate backward integration and improve efficiency.
New orders
- The company added incremental orders worth approximately Rs. 332.3 Crs during the quarter.
- The company ended the quarter with an outstanding orderbook of Rs. 2,026 Crs executable over the next 18–24 months.
New products
- The company is moving toward higher-value products including 765kV transformers, shunt reactors and special transformers for railways.
New initiatives
- The company plans to set up solar power plants and purchase electric vehicles for handling and movement at its Gangol facility.
- The company has built the capability to manufacture 765kV transformers as a long-term growth lever.
- The company is expanding integrated EPC and turnkey capabilities to participate in larger hybrid tenders and offer single-window solutions.
What to watch
- Whether operating margin remains near 28.27% as the product mix changes.
- Progress against management’s stated FY27 revenue target of approximately Rs 950 cr.
- Execution of the Rs 2,026 cr orderbook over its stated 18–24 month period.