Kanohar margin expands 6.76 points as revenue rises 52.17% QoQ
Expense growth stayed below revenue growth, while other income contributed only 3.61% of pre-tax profit.
Filed 02 Nov 2026, 19:11 IST · after market close · Kanohar Electricals Ltd (KANOHAR)
Key takeaways
- Standalone revenue rose 52.17% QoQ and operating margin expanded 6.76 percentage points to 35.03%.
- Standalone net profit increased 97.04% QoQ as operating profit grew faster than revenue and interest expense fell 14.73%.
- Kanohar's 35.03% operating margin was 23.5 percentage points above the 11.53% median of 80 Industrials peers that reported.
Price around the results
Revenue growth translated into a sharper operating margin
Kanohar Electricals reported standalone revenue growth of 52.17% QoQ in Q2FY27, while expenses grew 37.82%. That gap lifted operating profit 88.54% and widened operating margin by 6.76 percentage points to 35.03%. Net profit rose 97.04% QoQ to Rs 53.87 cr.
Lower interest helped, but other income was not the main profit driver
Interest expense fell 14.73% QoQ, supporting the increase in profit before tax as operating profit scaled up. The tax rate eased by 0.32 percentage points to 25.46%, providing a small additional lift to net profit. Other income accounted for 3.61% of pre-tax profit, so the quarter's profit was primarily operating-led.
Margin moved up from Q1 and stayed well above the peer median
Operating margin improved from 28.27% in Q1FY27 to 35.03% in Q2FY27, reversing the sequential pressure visible in the prior quarter. The company's margin was 23.5 percentage points above the 11.53% median for 80 Industrials peers that had reported the same quarter. No year-on-year comparison is available in the reported data.
Management links growth plans to orders and Gangol expansion
Management said the outstanding orderbook was Rs 2,026 cr and executable over 18–24 months, while it is targeting FY27 revenue of approximately Rs 950 cr with a similar EBITDA margin profile to FY26. The company said it is undertaking a brownfield capacity expansion at Gangol; its presentation allocates Rs 64.2 cr of IPO proceeds to machinery and equipment, with Rs 24.2 cr planned for FY27 and Rs 40 cr for FY28. Management also said it is developing higher-value products such as 765kV transformers, shunt reactors and special railway transformers.
Results were filed after market close
The standalone results were filed at 19:11 IST on 2 November 2026, after market close. A post-results stock reaction is therefore not covered here.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹209 cr | ₹137 cr | +52.17% |
| Other income | ₹3 cr | ₹2 cr | +35.94% |
| Expenses | ₹136 cr | ₹98 cr | +37.82% |
| Operating profit | ₹73 cr | ₹39 cr | +88.54% |
| Operating margin (%) | 35.03% | 28.27% | — |
| Interest | ₹3 cr | ₹3 cr | -14.73% |
| Depreciation | ₹1 cr | ₹1 cr | +6.15% |
| Profit before tax | ₹72 cr | ₹37 cr | +96.17% |
| Tax | ₹18 cr | ₹10 cr | +93.68% |
| Net profit | ₹54 cr | ₹27 cr | +97.04% |
| EPS (₹) | ₹7.14 | ₹3.67 | +94.55% |
Operating margin of 35.03% compares with a Industrials sector median of 11.53% across 80 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q1FY27 manufacturing increased, with higher contribution from the 400kV segment improving operating leverage and profit after tax.
Guidance & outlook
- The company is targeting FY27 revenue of approximately Rs. 950 crore with a similar EBITDA margin profile to FY26.
- The outstanding orderbook of Rs. 2,026 crore is executable over the next 18–24 months.
Expansion
- The company is undertaking a brownfield capacity expansion at its Gangol unit, with capex planned over the next 18 months.
- IPO proceeds include Rs. 64.2 crore for machinery and equipment at the Gangol facility to increase transformer capacity and improve efficiency.
- The company plans to deploy Rs. 24.2 crore of the machinery and equipment allocation in FY27 and Rs. 40 crore in FY28.
New orders
- The company added incremental orders worth approximately Rs. 332.3 crore in Q1FY27.
New initiatives
- The company is developing higher-value products including 765kV transformers, shunt reactors and special railway transformers.
- The company plans to set up solar power plants and purchase electric vehicles for operations at Gangol.
What to watch
- Whether standalone operating margin holds above 35.03% in the next reported quarter.
- Progress in converting the Rs 2,026 cr orderbook over its stated 18–24 month execution period.
- Deployment of the Rs 64.2 cr Gangol machinery allocation, including Rs 24.2 cr planned for FY27.