Parth Electricals  IPO GMP & Subscription status

Core Business & Overview

Parth Electricals & Engineering Limited (incorporated in 2007, headquartered in Vadodara, Gujarat) began as a service-oriented firm and has become a manufacturer and EPC provider for power distribution components and electrical infrastructure systems.

Core Products & Services:

1. Manufacturing & Supply: Produces Medium Voltage (MV) switchgear panels, Vacuum Circuit Breaker (VCB) panels, Earth Link Boxes, Control & Relay Panels (CRPs), Compact Substations (CSS/PSS) and Ring Main Units (RMUs) using Schneider Electric type‑tested designs.
2. EPC Services: Executes turnkey projects—including AIS and GIS substations up to 220 kV, HV & EHV cable laying, installation, testing, commissioning, and RMU refurbishment services.
3. Operates a 227‑employee facility at Manjusar, Vadodara, with a production capacity of ~2,460 RMUs, 985 panels and 11 CSS units in FY 2025.
4. The company exports internationally and serves over 100 clients across sectors like power utilities, steel, cement, FMCG, oil & gas, including blue‑chip names such as Tata, Adani, Reliance, Siemens, BHEL, ABB, Ultratech, and L&T.

Strengths

• Strong Quality & Certifications
  ISO‑certified (ISO 9001:2015, ISO 14001:2015, ISO 45001:2018), in‑house QA lab ensures adherence to international quality, environmental, and safety standards.
• Strategic OEM Partnership
  Licensed tie‑up with Schneider Electric enables direct procurement of technology and raw materials and authorized manufacturing under Schneider’s certified designs.

Additional strengths include a well-diversified product portfolio, a technically skilled sales/marketing team offering customized solutions, approvals from multiple utilities across India, and growing export operations.

Potential Risks

• Product Innovation Dependence
  Growth relies on the company’s ability to develop and innovate electrical products. Inability to do so may adversely affect margins and market competitiveness.
• Sector Cyclicality & Electricity Demand Risk
  The business is tightly tied to growth in India’s power sector. Any slowdown, policy shifts, or reduced consumption could hurt revenue streams and execution pipelines.
• Customer & Product Concentration
  A meaningful share of revenue comes from a few large clients and a significant portion is tied to one product segment (RMUs), raising concentration risk if a key contract is lost or delayed

Financial Performance Overview (₹ in Crore)

Revenue Growth

• Revenue more than doubled from ₹65.53 Cr in FY23 to ₹174.67 Cr in FY25.
• This indicates strong business expansion and increased order execution, especially in EPC and manufacturing.

Profit

• Profit rose from ₹2.45 Cr in FY23 to ₹10.12 Cr in FY25, growing over 300% in two years.
• Profit margins improved due to operational efficiency and larger scale of projects.

Total Assets

• Assets increased from ₹50.7 Cr to ₹106.76 Cr, showing increased capital investment in machinery, plants, and infrastructure.
• This growth supports the company’s higher production and order fulfillment capacity.

✅ Pros:

1. Strong revenue and profit growth over the last 3 years.
2. Trusted clients like Tata, Adani, Siemens, and L&T.
3. Licensed OEM partner of Schneider Electric.
4. Expanding manufacturing capacity with IPO proceeds.
5. Certified quality systems (ISO 9001, 14001, 45001).

❌ Cons

1. Revenue is concentrated in a few products and clients.
2. Business is dependent on the power sector’s growth cycle.
3. High competition in the EPC and electrical equipment industry.
4. Working capital–intensive operations.
5. Small-cap SME IPO with potential liquidity risk post-listing.