Kanhaiya Electricals’ manufacturing share rose to 85% of revenue

Kanhaiya Electricals Limited’s transformer manufacturing share rose to 85.17% of revenue from operations in Fiscal 2025, from 51.75% in Fiscal 2024. Transformer manufacturing revenue increased to Rs 383.794 crore, while engineering, procurement and construction, or EPC, revenue fell to Rs 66.047 crore. The order book was even more concentrated, with manufacturing representing 83.42% on September 30, 2025.

Why did Kanhaiya Electricals’ manufacturing share rise to 85%?

Kanhaiya Electricals’ manufacturing share rose to 85.17% because transformer manufacturing revenue grew while EPC revenue declined in Fiscal 2025. Transformer manufacturing revenue increased by Rs 240.597 crore to Rs 383.794 crore from Rs 143.197 crore in Fiscal 2024, whereas EPC revenue fell by Rs 66.925 crore from Rs 132.972 crore to Rs 66.047 crore.

Kanhaiya Electricals’ total revenue from operations increased 62.86% to Rs 450.612 crore in Fiscal 2025 from Rs 276.690 crore in Fiscal 2024. That growth was concentrated in manufacturing: its revenue share rose by 33.42 percentage points, while the EPC share fell from 48.06% to 14.66%. Other operating revenue was Rs 77.10 lakh in Fiscal 2025, compared with Rs 52.10 lakh in Fiscal 2024, and accounted for less than 0.2% in each year.

The fall in EPC revenue was led by substation work. Revenue from EPC solutions for substations declined to Rs 29.609 crore, or 6.57% of Fiscal 2025 revenue, from Rs 115.245 crore, or 41.65%, in Fiscal 2024. EPC solutions for transmission lines increased to Rs 36.438 crore from Rs 17.727 crore, but represented only 8.09% of Fiscal 2025 revenue.

For the six-month period ended September 30, 2025, transformer manufacturing remained the larger segment but accounted for a lower share than in Fiscal 2025. Manufacturing revenue was Rs 125.425 crore, or 75.75% of total revenue from operations of Rs 165.578 crore, while EPC revenue was Rs 39.683 crore, or 23.97%. The interim mix shows that EPC continued to generate revenue even after the Fiscal 2025 shift toward manufacturing.

Which products drove Kanhaiya Electricals’ manufacturing revenue?

Power transformers and Scott transformers drove Kanhaiya Electricals’ manufacturing revenue in Fiscal 2025. Power transformers generated Rs 242.240 crore, equal to 53.76% of total revenue from operations, while Scott transformers generated Rs 133.389 crore, or 29.60%. Together, the two categories accounted for Rs 375.629 crore, or 82.37% of Fiscal 2025 revenue.

Scott transformers were a new reported sales contributor in Fiscal 2025, having recorded nil revenue in Fiscal 2023 and Fiscal 2024. In contrast, traction-transformer revenue declined to Rs 7.183 crore in Fiscal 2025 from Rs 38.317 crore in Fiscal 2024. Shunt-reactor revenue was nil in Fiscal 2025 after Rs 32.732 crore in Fiscal 2024, while distribution-transformer revenue declined to Rs 98.20 lakh from Rs 6.488 crore.

Kanhaiya Electricals stated that shunt-reactor revenue was nil in Fiscal 2025 and the six-month period ended September 30, 2025 because it prioritised orders from other sectors for operational reasons. In the six-month period ended September 30, 2025, power transformers produced Rs 102.943 crore, or 62.17% of total revenue, Scott transformers contributed Rs 16.025 crore, or 9.68%, and traction transformers added Rs 6.265 crore, or 3.78%.

The company’s product capability supports its concentration in higher-voltage equipment. As of September 30, 2025, Kanhaiya Electricals was one of five Indian companies with short-circuit-test certification for 500 megavolt-amperes, or MVA, 400 kilovolt, or kV, transformers. It had tested more than 200 transformer ratings by that date, and its power-transformer specifications extend up to 500 MVA and 400 kV.

Has Kanhaiya Electricals’ order book become more manufacturing-led?

Yes, Kanhaiya Electricals’ order book became more manufacturing-led than its reported revenue mix. The transformer manufacturing order book was Rs 1,364.388 crore, or 83.42% of the Rs 1,635.560 crore total, as of September 30, 2025. The order book is calculated as opening orders plus orders received less revenue recognised during the relevant period.

Manufacturing’s order-book share rose from 45.25% in Fiscal 2023 to 57.98% in Fiscal 2024 and 72.50% in Fiscal 2025 before reaching 83.42% in September 2025. The manufacturing order book increased from Rs 345.475 crore at Fiscal 2024-end to Rs 624.529 crore at Fiscal 2025-end, then more than doubled to Rs 1,364.388 crore by September 30, 2025.

Power transformers were the largest manufacturing order-book category at Rs 910.850 crore, or 55.69% of the September 2025 total. Scott transformers accounted for Rs 245.113 crore, or 14.99%, and shunt reactors accounted for Rs 171.785 crore, or 10.50%. The power-transformer order book increased from Rs 528.064 crore at Fiscal 2025-end, while the Scott-transformer order book rose from Rs 32.680 crore.

EPC orders remained Rs 271.172 crore, or 16.58%, of the September 2025 order book, compared with 54.75% at Fiscal 2023-end. Government-sector clients accounted for Rs 1,563.022 crore, or 95.56%, of total September 2025 orders. Private-sector orders were Rs 72.538 crore, or 4.44%, and the disclosure recorded no private-sector EPC order book.

What supports Kanhaiya Electricals’ manufacturing capacity and execution?

Kanhaiya Electricals supported manufacturing output through two Meerut facilities with aggregate transformer capacity of 19,200 MVA as of September 30, 2025. The Rithani and Gangol manufacturing facilities had capacity of 15,000 MVA in Fiscal 2024, so reported capacity increased by 4,200 MVA. Annual installed capacity is based on two two-hour shifts per day and 300 working days per year.

The company also has backward-integrated production of transformer tanks and pressed-steel radiators. Kanhaiya Electricals cuts and welds steel plates into tanks, and cuts, presses, welds and assembles cold rolled close annealed steel coils into radiator elements. These components are used in transformers, while the company’s testing laboratories are accredited by the National Accreditation Board for Testing and Calibration Laboratories.

Kanhaiya Electricals has disclosed a plan to use part of the offer’s net proceeds to buy machinery and equipment at the Gangol facility, increase transformer manufacturing capacity, expand and automate backward integration, and enhance operating efficiency. This is a proposed use of proceeds rather than a completed expansion. Its contribution to future revenue depends on implementation and on the conversion of the Rs 1,364.388 crore manufacturing order book.

What could affect the manufacturing-led revenue mix?

Kanhaiya Electricals’ manufacturing-led revenue mix will depend on manufacturing orders being executed and recognised faster than EPC work. The September 2025 manufacturing order book was five times the Rs 271.172 crore EPC order book, but EPC still included Rs 133.577 crore of substation orders and Rs 137.595 crore of transmission-line orders. Changes in project timing can therefore affect the revenue split in later periods.

Government-sector dependency is another condition for the order-book mix to persist. Government customers accounted for Rs 1,291.850 crore of transformer manufacturing orders and Rs 271.172 crore of EPC orders as of September 30, 2025. Private-sector transformer orders totalled Rs 72.538 crore, while private-sector EPC orders were nil, making government-sector contract awards and execution central to the disclosed order pipeline.

Conclusion

Kanhaiya Electricals’ Fiscal 2025 figures show a shift from an almost evenly split manufacturing-and-EPC revenue profile to one led by transformer manufacturing. Manufacturing revenue rose from Rs 143.197 crore in Fiscal 2024 to Rs 383.794 crore in Fiscal 2025, while EPC revenue declined from Rs 132.972 crore to Rs 66.047 crore. The September 2025 order book indicates an even greater manufacturing concentration.

The next disclosures should show how much of the Rs 910.850 crore power-transformer order book and Rs 245.113 crore Scott-transformer order book converts into revenue. They should also show progress on the proposed Gangol machinery and automation expenditure, while the 95.56% government-sector share of the September 2025 order book remains a material dependency.