Johnsoncab Electricals IPO RHP Analysis: Business, Financials, Valuation, Risks and Offer Details

Johnsoncab Electricals Limited is undertaking an initial public offering, or IPO, of fresh equity shares for proposed listing on the BSE SME platform. Johnsoncab Electricals manufactures low-voltage wires and cables for infrastructure, renewable energy, railways and industrial applications. Its most important disclosed financial fact is revenue from operations of Rs 210.47 crore in Fiscal 2026, up from Rs 139.79 crore in Fiscal 2025.

What are the offer terms for the Johnsoncab Electricals IPO?

The Johnsoncab Electricals IPO is a fresh issue of up to 28,00,800 equity shares, with the price band and issue price not disclosed in the RHP. The issue is scheduled to open on October 30, 2026 and close on November 3, 2026, with proposed listing on BSE SME.

The issue includes a market-maker reservation of 1,41,600 shares and a net issue to the public of 26,59,200 shares. The issue represents 26.50% of post-issue paid-up equity capital. CARE Ratings Limited is the monitoring agency because the issue size is stated to exceed Rs 50 crore, although the final monetary size will depend on the issue price.

What does Johnsoncab Electricals sell, who buys it, and what are its dependencies and concentrations?

Johnsoncab Electricals sells wires and cables rated up to 1.1 kilovolt, including power cables, control cables, industrial single-core and multicore cables, housing and building wires, welding cables, solar or photovoltaic cables, and submersible flat cables. It operates two leased manufacturing units in Mehsana, Gujarat, with combined installed capacity of 79,950 kilometres in Fiscal 2026 and aggregate capacity utilisation of 79.62%.

Power cables generated Rs 68.57 crore, or 32.58% of Fiscal 2026 revenue, followed by housing and building wires at Rs 63.22 crore, or 30.04%. In the five months ended August 31, 2026, housing and building wires were the largest category at Rs 50.81 crore, or 44.95% of revenue. Revenue from renewable energy was Rs 48.91 crore, or 23.24%, in Fiscal 2026, while distributors contributed Rs 51.21 crore, or 24.33%. Johnsoncab Electricals does not maintain records of the eventual end-use sector for distributor sales.

Gujarat accounted for Rs 149.24 crore, or 70.91%, of Fiscal 2026 revenue. Domestic revenue was Rs 209.84 crore, or 99.70%, while exports were Rs 0.63 crore. The top 10 customers accounted for Rs 139.41 crore, or 66.24%, of Fiscal 2026 revenue, and the largest customer represented Rs 38.63 crore, or 18.35%. Johnsoncab Electricals has no long-term or exclusive customer arrangements and does not maintain a formal order book for long-term or unexecuted contracts.

The principal raw materials are copper, aluminium, polyvinyl chloride, cross-linked polyethylene, galvanised iron strips or wires and packing drums. The top 10 suppliers accounted for Rs 97.48 crore, or 49.30%, of Fiscal 2026 purchases. Johnsoncab Electricals has no long-term agreements with most suppliers and does not hedge raw-material-price volatility through derivatives.

What is the multi-year financial track record of Johnsoncab Electricals?

Johnsoncab Electricals reported growth in revenue, earnings and net worth across Fiscal 2024 to Fiscal 2026, while the August 2026 data covers five months only. EBITDA means earnings before interest, tax, depreciation and amortisation, and PAT means profit after tax.

Fiscal 2026 revenue increased 50.56% from Fiscal 2025. Unit-II contributed Rs 62.53 crore, or 29.71% of Fiscal 2026 revenue, compared with Rs 9.43 crore, or 6.75%, in Fiscal 2025. Cost of goods sold declined to 85.12% of Fiscal 2026 revenue from 88.25% in Fiscal 2025, while EBITDA margin rose to 11.43% from 8.68%.

Government tender revenue was Rs 39.75 crore in Fiscal 2026, compared with Rs 4.92 crore in Fiscal 2024. The RHP also describes higher railway and project-linked sales, which can make revenue dependent on tender awards and project execution schedules.

How do Johnsoncab Electricals margins and returns compare with listed peers?

Johnsoncab Electricals reported an EBITDA margin of 11.43%, PAT margin of 6.38%, return on equity of 58.75% and return on capital employed of 39.68% in Fiscal 2026. The RHP identifies Prime Cable Industries Limited, JD Cables Ltd and Susan Electricals India Ltd as its listed peers.

These are RHP-disclosed comparisons and reflect different product mixes, capital structures and operating models. Johnsoncab Electricals’ debt-to-equity ratio was 1.94 times as of August 31, 2026, compared with 2.54 times at March 31, 2026.

What do cash flow and debt show?

Johnsoncab Electricals generated operating cash flow of Rs 7.65 crore in the five months ended August 31, 2026, after reporting negative operating cash flow in each of the preceding three fiscal years. The Fiscal 2026 outflow was Rs 19.70 crore, following increases in inventory and trade receivables.

Net working capital was Rs 82.30 crore, or 122 days, at August 31, 2026. Inventory was Rs 65.46 crore and trade receivables were Rs 26.81 crore at that date.

Financial indebtedness at August 31, 2026 comprised Rs 66.01 crore of secured loans and Rs 11.56 crore of unsecured loans. The HDFC Bank cash-credit facility had Rs 48.12 crore outstanding against a Rs 65 crore sanction and was repayable on demand. Secured facilities are backed by debtors, stock, machinery, fixed deposits, immovable-property collateral and promoter guarantees. The RHP does not disclose material financial covenants. It reports no continuing loan or interest repayment default and no rescheduling of borrowings.

What is the valuation at the upper price band?

Johnsoncab Electricals valuation multiples at the upper price band cannot be computed because the RHP does not disclose a price band or issue price. Accordingly, price-to-earnings, enterprise value-to-EBITDA, price-to-book and price-to-sales calculations are not yet determinable from the document figures.

The peer price-to-earnings ratios are based on closing market prices on October 23, 2026 and Fiscal 2026 earnings, as disclosed in the RHP. Johnsoncab Electricals reported Fiscal 2026 basic and diluted earnings per share of Rs 17.81 and net asset value per share of Rs 40.47, but no offer-price multiple is disclosed.

Who receives the IPO money, and what are the pre-IPO share issuance and lock-in terms?

Johnsoncab Electricals will receive the IPO proceeds because the offer is entirely a fresh issue and includes no offer for sale. There are therefore no selling shareholders or offer-for-sale acquisition costs.

Johnsoncab Electricals issued 1,35,000 shares at Rs 140 each on January 22, 2026 and a further 1,35,000 shares at Rs 140 each on March 2, 2026 through rights issues. The RHP says these issues supported business growth, expansion, ongoing operations and financial-position strengthening. A pre-IPO placement is not disclosed in the RHP.

The minimum promoter contribution is 21,14,160 shares, or 20.00% of post-issue capital, locked in for three years from allotment. Other promoter shares above this contribution are subject to one-year or two-year lock-ins, while the 1,08,500 pre-issue shares held by non-promoters are locked in for one year. Average promoter acquisition costs were Rs 12.19 per share for Chandreshkumar Shankerlal Patel, Rs 6.61 for Bhavanaben Chandreshkumar Patel and Rs 2.69 for Anjal Chandreshkumar Patel.

How does Johnsoncab Electricals plan to use the fresh-issue proceeds?

Johnsoncab Electricals proposes to use fresh-issue proceeds for expansion capital expenditure, a rooftop solar project, additional working capital and general corporate purposes. The RHP states Rs 28.40 crore of net proceeds for identified capital-expenditure objects, while separately proposing Rs 14 crore for additional working capital; gross proceeds, final net proceeds and general-corporate-purpose allocation are not disclosed.

Total estimated capital expenditure is Rs 30.10 crore, of which Rs 1.70 crore had been deployed or advanced as of the RHP date. The capacity-expansion project is scheduled to begin commercial production in April 2027. The Paper Insulated Copper/Aluminium Conductors line is scheduled for commercial production between February and March 2027, while solar generation is scheduled from January 2027.

Factory-plan approval, pollution-control consent and electricity load approvals remain pending for the expansion and conductor line. The RHP also states that orders remain unplaced for machinery valued at up to Rs 7.72 crore.

Who are the promoters, and what related-party dealings are disclosed?

Johnsoncab Electricals is promoted by Chandreshkumar Shankerlal Patel, Anjal Chandreshkumar Patel and Bhavanaben Chandreshkumar Patel, who collectively hold 98.60% before the issue and are expected to hold 72.48% after it. Chandreshkumar Patel, managing director, has 37 years of experience in the submersible pump and cable industry and formed M/s. Johnson Cables in 2012. Anjal Patel is whole-time director and chief financial officer, while Bhavanaben Patel has been associated with the predecessor partnership since 2012.

Disclosed promoter-group entities include Sarvodaya Pumps Private Limited, Glowup Green Energy LLP, Soham Developers, Chandreshkumar Shankerlal Patel Hindu Undivided Family and two family trusts. The promoters state that they have no interest in a venture conducting activities similar to Johnsoncab Electricals.

Both manufacturing sites are leased from promoters. Unit-I rent is Rs 12 lakh annually and Unit-II rent is Rs 36 lakh annually, each for ten years from January 1, 2026 and renewable for a further 20 years. Chandreshkumar Patel received Rs 10 lakh in remuneration and Rs 18.36 lakh in rent in the five months ended August 31, 2026. Unsecured loans from promoters, directors and their relatives totalled Rs 11.56 crore at August 31, 2026, and promoters have provided personal guarantees for bank facilities.

What are the top risks disclosed in the RHP?

The RHP first identifies raw-material procurement and price volatility as the principal risk, followed by customer concentration and the absence of long-term customer contracts. The leading exposures are listed below in document order.

• Raw materials: Johnsoncab Electricals has no long-term agreements with most suppliers and does not hedge input prices. Cost of goods sold was Rs 179.16 crore, or 85.12% of Fiscal 2026 revenue, and the top 10 suppliers represented 49.30% of purchases.
• Customers: The top 10 customers contributed 66.24% of Fiscal 2026 revenue, while the largest customer accounted for 18.35%. There are no long-term or exclusive customer arrangements.
• Employees: The company had 79 permanent and 114 contractual employees at September 30, 2026. Attrition was 24.44% for the period ended September 30, 2026.
• Promoter-owned facilities: Unit-I and Unit-II are leased from promoters for Rs 1 lakh and Rs 3 lakh per month, respectively.
• Geographic concentration: Gujarat represented 70.91% of Fiscal 2026 revenue and 76.37% of revenue in the five months ended August 31, 2026.
• Borrowings: Total borrowings were Rs 77.57 crore and debt-to-equity was 1.94 times at August 31, 2026. Unsecured loans from promoter directors and relatives were Rs 11.56 crore and may be recalled.
• Seasonality: Monsoon conditions can delay project execution and installation, while the final fiscal quarter has historically generated higher revenue from government projects.
• End-market exposure: Energy transmission and distribution represented 42.12% of Fiscal 2026 revenue. Renewable-energy revenue was Rs 48.91 crore, or 23.24%.
• Working capital and cash flow: Net working capital was Rs 82.30 crore and 122 days at August 31, 2026, while Fiscal 2026 operating cash flow was negative Rs 19.70 crore.
• Expansion execution: The proposed capital-expenditure plan is Rs 30.10 crore, with up to Rs 7.72 crore of machinery orders unplaced and several approvals pending.

What outstanding litigation does Johnsoncab Electricals disclose?

Johnsoncab Electricals reports no outstanding litigation across the entity groups and categories disclosed in the RHP. Its materiality policy uses the lower of 2% of turnover, 2% of net worth or 5% of average absolute profit or loss after tax for the preceding three audited financial years.

The RHP also states that there are no pending economic-offence proceedings, no material fraud against the company in the preceding five years and no outstanding defaults of statutory dues or financial-institution obligations. One micro or small enterprise creditor had dues of Rs 1.05 crore above the Rs 45.40 lakh material-creditor threshold at August 31, 2026; this is a creditor disclosure rather than litigation.

Conclusion

Johnsoncab Electricals reaches the IPO stage after revenue from operations rose from Rs 88.34 crore in Fiscal 2024 to Rs 210.47 crore in Fiscal 2026, alongside EBITDA margin expansion from 6.14% to 11.43%. The same period also brought increased working-capital needs, negative Fiscal 2026 operating cash flow and borrowings of Rs 77.57 crore as of August 31, 2026.

The next disclosures to watch are the price-band advertisement, final issue size, final net-proceeds allocation and post-issue capitalisation. Operationally, the material later milestones are pending approvals, placement of machinery orders and commissioning of the Unit-II capacity expansion, conductor line and rooftop solar project on the schedules set out in the RHP.