Mangal Electrical  IPO GMP & Subscription status

Core Business & Overview

Founded in 1989 (originally as a private limited company and converted to a public limited company recently), Mangal Electrical is led by Mr. Rahul Mangal (Chairman & Managing Director), who brings over 35 years of experience.

• Manufacturing & Processing of Transformer Components
  Mangal Electrical Industries specializes in processing components like transformer lamination, CRGO slit coils, amorphous cores, coil and core assemblies, wound and toroidal cores, as well as oil-immersed circuit breakers. They also trade in CRGO and CRNO coils, plus amorphous ribbons.
• Transformer Manufacturing & EPC Services
  They manufacture transformers ranging from single-phase units (5 kVA) to medium-power three-phase units (10 MVA), supplying the power infrastructure segment. Additionally, they offer turnkey EPC (engineering, procurement, and construction) solutions for electrical substations.
• Facilities & Certifications
  The company runs five production facilities in Rajasthan. Its annual capacity includes processing 16,200 MT of CRGO, producing transformers totaling 750,000–1,022,500 KVA, 75,000 ICB units, and 2,400 MT of amorphous units. The firm is ISO 9001:2015 certified and holds NABL, NTPC, and PGCIL approvals. It also employs Brockhaus testing equipment to ensure top-tier quality.

Strengths

1. Vertical Integration
   Mangal Electrical has backward integration (processing transformer components in-house) and forward integration (manufacturing transformers and providing EPC services), supporting efficiency and control over quality.
2. Regulatory Certifications & Quality Assurance
   High-level approvals (NABL, NTPC, PGCIL), ISO 9001:2015, and advanced testing systems set them apart.
3. Diverse & Global Client Base
   Domestically, they serve utility providers like Ajmer and Jaipur Vidyut Vitran Nigam, and private players like Renew Power and Adani. Internationally, they export to countries including Netherlands, UAE, Oman, USA, and Italy.
4. Experienced Leadership
   Led by a seasoned promoter with decades in the power sector and a strong senior management team.

Potential Risks

1. Volatility in Raw Material & Commodity Costs
   Heavy reliance on CRGO, amorphous materials, and other core inputs makes them sensitive to fluctuations in raw material prices.
2. Competitive & Market Dynamics
   The transformer industry is competitive, with challenges in maintaining margins, adapting to new technologies, and responding to global players.
3. Dependency on Regulatory Approvals
   Participation in high-voltage and large-scale projects hinges on maintaining certifications. Loss or delay might affect eligibility.
4. Currency & Geopolitical Risks
   Export operations expose them to currency fluctuations and shifting global demand or trade barriers.

Financial Performance Overview (₹ in Crore)

Revenue
Revenue rose from ₹354.31 Cr in FY23 to ₹549.42 Cr in FY25. That’s a 55% jump in 2 years, showing strong demand and expansion of business.

Profit Trend
Profit dipped from ₹24.74 Cr in FY23 to ₹20.95 Cr in FY24, likely due to higher costs or input price fluctuations. However, FY25 saw a sharp recovery to ₹47.31 Cr, more than double the previous year, indicating improved efficiency and cost management.

Assets

Total assets increased steadily from ₹221.26 Cr in FY23 to ₹366.46 Cr in FY25. This reflects capacity expansion and investments, aligning with their IPO objectives (debt repayment, unit expansion, working capital).

✅ Pros

• Strong revenue growth and profit rebound in FY25.
• Diversified product portfolio (transformer components, transformers, EPC).
• Certifications and approvals (ISO, NABL, NTPC, PGCIL).
• Backward & forward integration ensures cost control and quality.
• Expanding domestic and international customer base.
• Experienced management with decades in the industry.

❌ Cons

• Profitability was inconsistent (dip in FY24).
• High dependency on raw material price fluctuations (CRGO, amorphous metal).
• Competitive transformer industry with margin pressure.
• Expansion and IPO fund utilization carry execution risks.
• Regulatory and certification dependency for large contracts.
• Exposure to forex fluctuations due to exports.