Johnsoncab Electricals
What they do: The company manufactures and sells branded low-voltage wires and cables, including building wires, power and control cables, and specialist cables. It earns revenue by supplying private-sector and government customers through tenders and vendor-approval processes.
By IPO Milega Research · Published
Revenue and reported profit have grown rapidly, with expanding EBITDA margins and high reported ROE.
- GMP (unofficial)
- +0%
- ₹0 a share
- Opens
- 30 Oct
- in 2 days
- Min. investment
- ₹2,40,000
- 1200 shares
GMP is an unofficial grey market indication. GMP updated 28 Oct, 11:05 IST.
- Price band
- ₹190-200
- Lot size
- 1200 shares
- Min. investment
- ₹2,40,000
- Issue size
- Approx 56.02 Crores
- Open30 Oct 2026
- Close3 Nov 2026
- Allotment4 Nov 2026
- Listing6 Nov 2026
Overview
₹200 (+0.00%)
GMP trend
Unofficial grey market quotes, times in IST
Where the money goes
- To the company
- ₹53 Cr
- Fresh issue
- To selling shareholders
- ₹0 Cr
- No offer for sale
- Funding the capital expenditure requirements of the Company towards: Construction of additional Factory Shed for expansion₹7.89 Cr19%
- Funding the capital expenditure requirements of the Company towards: Plant & Machinery a) Purchase of additional plant & machinery for increasing the production capacity₹9.9 Cr24%
- Funding the capital expenditure requirements of the Company towards: Plant & Machinery b) Purchase new machinery to manufacture Paper Insulated Copper / Aluminium Conductors₹6.89 Cr16%
- Funding the capital expenditure requirements of the Company towards: Plant & Machinery Purchase and set up a rooftop solar power plant₹3.23 Cr8%
- Additional Working Capital Requirement₹14 Cr33%
- General Corporate PurposesNot stated
Outer ring: estimated gain
How the score adds up
The overall score is the average of these five, nudged by QIB demand once bidding closes.
- Financials6.0
- Performance7.0
- Flexibility7.0
- Timing7.0
- Risk4.0
Strong revenue and profit growth, improving margins, rising capacity utilization and demand exposure to infrastructure and renewable energy support fundamentals. High leverage, recurring negative operating cash flow, customer and geographic concentration, and expansion execution risks limit the potential. The estimate is a fundamentals-based indication and does not account for offer valuation.
Strengths5
- Expanded to two Mehsana manufacturing units with combined installed capacity of 79,950 KMS in FY2026, up from 34,500 KMS in FY2024.
- Raised actual production from 25,250 KMS in FY2024 to 63,659 KMS in FY2026; combined capacity utilization increased from 73.19% to 79.62%.
- Improved EBITDA margin to 11.43% and PAT margin to 6.38% in FY2026.
- Secured vendor approvals including Western Railway, UGVCL, JVVNL and Gujarat State Road Transport Corporation, and holds ISO and BIS certifications.
- Holds a patent for an improved three-core, double-insulated flat cable for submersible pumps, granted in 2023.
Concerns5
- Borrowings of ₹7,987.70 lakh, a 2.54 debt-to-equity ratio, working capital of ₹7,773.81 lakh and negative operating cash flow of ₹1,970.06 lakh in FY2025–26 create financial pressure.
- Raw-material supply is uncontracted, while input prices are volatile; cost of goods sold was 85.12% of revenue in FY2025–26.
- Customer and geographic concentration are high: the top 10 customers contributed 66.24% of revenue and Gujarat contributed 70.91%.
- Operations depend heavily on Unit-I, leased premises and third-party transport, and face production disruption and labour attrition risks.
- The ₹2,621.33 lakh expansion depends solely on IPO proceeds, uses management estimates not appraised by an external agency, and includes machinery orders not yet placed for up to ₹937.75 lakh.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum2,40,0002 lots, 1200 shares
- Retail Maximum2,40,0002 lots, 1200 shares
- S-HNI Minimum3,60,0003 lots, 1800 shares
- S-HNI Maximum9,60,0008 lots, 4800 shares
- B-HNI Minimum10,80,0009 lots, 5400 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 2 | 1200 | 2,40,000 |
| Retail Maximum | 2 | 1200 | 2,40,000 |
| S-HNI Minimum | 3 | 1800 | 3,60,000 |
| S-HNI Maximum | 8 | 4800 | 9,60,000 |
| B-HNI Minimum | 9 | 5400 | 10,80,000 |
Timing
7.0/10Johnsoncab Electricals is entering the market with strong recent revenue and profit growth, while its products serve expanding power, solar and rail applications. Planned investment in production capacity and paper-insulated conductors aligns with these demand drivers. The assessment is tempered by the company’s high debt and the uncertainty inherent in an SME issue; the available information does not establish broader market conditions or the final offer valuation.
- Time to market
- The proposed fundraising is tied to specific factory, machinery and rooftop solar investment, alongside working capital needs. This gives the issue a clear growth rationale, though elevated borrowings add execution and financing risk.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Favourable
- Time to market
- 7.0
- Listing on
- BSE SME
Key milestones
- 30 Oct 2026IPO Opens
- 3 Nov 2026IPO Closes
- 4 Nov 2026Basis of Allotment
- 5 Nov 2026Refunds Initiated
- 5 Nov 2026Credit to Demat Account
- 6 Nov 2026Listing Date
Financials
6.0/10- Revenue
- ₹211 Cr
- +51.0%
- Profit after tax
- ₹13.42 Cr
- +145.8%
- Net margin
- 6.3%
- +2.4 pts
- Assets
- ₹127 Cr
- +97.0%
- Return on equity
- 58.75%
- Debt to equity
- 2.54
- Current ratio
- 1.36
- Revenue CAGR
- 54.36%
- ROCE
- 39.68%
- Return on net worth
- 42.68%
- NAV per share (₹)
- 40.47
- Price to book
- 4.94
Financial performance trend
Amount ₹ in croresRevenue and reported profit have grown rapidly, with expanding EBITDA margins and high reported ROE. High borrowings, a 2.54x debt-to-equity ratio and negative operating cash flow in FY2026 temper the strong growth profile.
FY2026 borrowings comprise ₹26.25 Cr of long-term and ₹53.63 Cr of short-term borrowings. The IPO proceeds are allocated to capital expenditure, working capital and general corporate purposes; repayment of existing borrowings is not listed as an object. Borrowings are high relative to equity.
Fresh issue goes to the company. OFS goes to the selling shareholders.
None; the offer is entirely a fresh issue.
The company is raising fresh capital for factory expansion, plant and machinery, paper-insulated conductor manufacturing, a rooftop solar plant, additional working capital and general corporate purposes. No existing shareholders are selling through an OFS.
Risk
4.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks3
- Market risks3
- Operational risks3
- Regulatory risks3
High leverage, negative operating cash flow, concentrated customers and geography, volatile input costs, and expansion execution risks weigh on the risk profile; disclosed litigation exposure is limited.
How the company offsets these
No material litigation, tax proceedings, regulatory actions or statutory payment defaults are disclosed. Redeployment of IPO proceeds requires a special resolution and may trigger an exit offer.
Financial risks3
- High borrowings and a 2.54 debt-to-equity ratio; negative operating cash flow and substantial working-capital requirements.
- Input-cost volatility and high cost of goods sold may pressure margins.
- Expansion funding depends solely on IPO proceeds; delays or shortfalls could defer plans, and the budget may face cost overruns.
Market risks3
- Customer concentration and geographic concentration in Gujarat expose revenue to disruption in key relationships or markets.
- Cable-market and end-industry downturns, wider economic or geopolitical shocks, and uncertain acceptance of new conductors could affect demand.
- Listing and share-price volatility, trading restrictions under ASM/GSM, and limits on bid withdrawal or resale may affect investors.
Operational risks3
- Uncontracted raw-material supply, production disruption, reliance on Unit-I, leased premises and third-party transport.
- Labour attrition was 13.67% in FY2025–26.
- Expansion implementation may be delayed; machinery orders for up to ₹937.75 lakh remain unplaced.
Regulatory risks3
- Past statutory filing delays could result in penalties; tax exposure and broader regulatory changes may affect the company.
- Promoters will retain an unspecified majority stake and may influence decisions; redeployment of proceeds requires a special resolution and may require an exit offer for dissenting shareholders.
- Enforcement of foreign judgments in India may be difficult. No material litigation, tax proceedings, regulatory actions or statutory payment defaults are disclosed.
Performance
7.0/10Johnsoncab Electricals manufactures low-voltage wires and cables for power, railways, renewable energy, construction and industrial customers. Revenue, EBITDA and PAT grew strongly across FY2024–FY2026, with improving margins and capacity utilization. Execution is supported by expanding production, certifications and vendor approvals, while high debt, negative operating cash flow, customer concentration and exposure to raw-material prices temper the assessment.
- Historical growth
- Revenue from operations rose from ₹88.34 crore in FY2024 to ₹139.79 crore in FY2025 and ₹210.47 crore in FY2026. This represents an approximate two-year CAGR of 54%. EBITDA increased from ₹5.42 crore to ₹12.14 crore and ₹24.06 crore; PAT rose from ₹2.52 crore to ₹5.46 crore and ₹13.42 crore., Revenue growth was 58.24% in FY2025 and 50.56% in FY2026. EBITDA margin improved from 6.14% to 8.68% and 11.43%; PAT margin rose from 2.86% to 3.91% and 6.38%.
- Market comparison
- The prospectus cites an estimated 7.94% CAGR for the Indian wires and cables market for 2025–2032. Johnsoncab’s two-year revenue CAGR of about 54% is substantially higher, although this comparison covers a short company history and is not directly comparable to an industry forecast. No peer-company financial results are given. The company competes with larger domestic and multinational manufacturers and operates mainly in low-voltage products.
- Future potential
- Prospects depend on execution of the proposed capacity expansion, demand from power infrastructure, railways and renewable energy, and development of higher-value products. The company’s customer and revenue concentration, working-capital requirements, leverage and commodity-price exposure may constrain growth and margins.
- Operational consistency
- Operations date to 2012, and capacity utilization rose from 73.19% in FY2024 to 79.62% in FY2026 as production expanded. Unit II added capacity and contributed 29.71% of FY2026 revenue. Operating cash flow was negative in each reported year, reflecting working-capital demands; debt-to-equity was 2.54 times in FY2026.
- Experience
- Promoter and Managing Director Chandreshkumar Shankerlal Patel has over 37 years of experience in wire and cable manufacturing. The business began as a partnership in 2012.
- Track record
- The company expanded its product range and opened Unit II in 2024. Revenue and profitability grew over FY2024–FY2026, with capacity and production increasing. The record also shows recurring negative operating cash flow and rising finance costs as expansion and working-capital needs increased.
Key achievements
- 01Expanded to two Mehsana manufacturing units with combined installed capacity of 79,950 KMS in FY2026, up from 34,500 KMS in FY2024.
- 02Raised actual production from 25,250 KMS in FY2024 to 63,659 KMS in FY2026; combined capacity utilization increased from 73.19% to 79.62%.
- 03Improved EBITDA margin to 11.43% and PAT margin to 6.38% in FY2026.
- 04Secured vendor approvals including Western Railway, UGVCL, JVVNL and Gujarat State Road Transport Corporation, and holds ISO and BIS certifications.
- 05Holds a patent for an improved three-core, double-insulated flat cable for submersible pumps, granted in 2023.
Flexibility
7.0/10Products serve housing, power, railways, renewable energy, agriculture and industrial applications, with sales to private and government customers. Revenue grew to ₹210.47 crore in FY2026. Geographic reach remains concentrated, with Gujarat contributing 70.91% of revenue, and exports only 0.30%.
Revenue, EBITDA and profit increased over FY2024 to FY2026, while the debt-equity ratio fell from 3.70 to 2.54. However, leverage remains material, the business is working-capital intensive, and its FY2026 long-term bank rating is CARE BB+; Stable.
Two Mehsana facilities produce multiple cable types, with installed capacity of 79,950 KMS and FY2026 utilization of 79.62%. The company has added machinery and a second unit, though both facilities are in the same region and planned expansion depends on construction, approvals and commissioning.
Johnsoncab Electricals shows good adaptability through a broad low-voltage cable range, rising production and revenue, and expansion into new customer segments. Flexibility is tempered by high Gujarat revenue concentration, customer concentration and debt, plus the execution and funding needs of its expansion plans.
- Product diversification
- The portfolio spans building wires, power and control cables, industrial cables, submersible cables, solar cables and welding cables. The company plans to add paper-insulated copper and aluminium conductors; this product is not yet described as commercially manufactured.
- Future adaptability
- Capacity investment, a planned new product, rooftop solar and demand from renewable energy, railways and infrastructure offer avenues for growth. The outlook depends on completing expansion, obtaining required approvals and managing working capital, debt, raw-material price swings and customer concentration.
The data on this page has been reviewed manually by the IPO Milega research team. It is not investment advice, and IPO Milega accepts no responsibility for losses arising from any investment decision. Investments in the securities market are subject to market risks. Read all the related documents, including the full prospectus, carefully before investing.