Mangal Electrical IPO

Mangal Electrical Industries Limited, incorporated in 2008, specializes in manufacturing transformers and essential components for electricity distribution and transmission within the power sector. Operating under the brand name “Mangal Electrical,” the company is known for its strong reputation and high brand recall. It offers a broad product range that includes CRGO and CRNO coils, amorphous ribbons, oil-immersed circuit breakers (ICBs), and transformers ranging from 5 KVA to 10 MVA. Additionally, it provides EPC (Engineering, Procurement, and Construction) services for electrical substation infrastructure projects. The company operates five production facilities in Rajasthan, with significant manufacturing capacities: 16,200 MT for CRGO, 750,000 KVA for transformers, 75,000 ICB units, and 2,400 MT for amorphous units.

Mangal Electrical’s product portfolio includes critical transformer components such as CRGO wide coils, CRGO slit coils, and CRGO core assemblies. These components are engineered for high magnetic permeability, low core loss, and precise dimensions, which contribute to energy efficiency and performance in transformer applications. The company plays a key role in producing energy-saving electrical equipment and transformer parts that are crucial for both small-scale distribution and large-scale transmission transformers. As of June 30, 2025, the company employed 761 permanent staff across its corporate offices and production units.

Mangal Electrical IPO Strengths

• Mangal Electrical reported revenue of ₹551.39 crore in FY25, up from ₹452.13 crore in FY24, while net profit surged to ₹47.31 crore from ₹20.95 crore in the previous year, illustrating impressive top-line and bottom-line expansion.
• Revenue growth was supported by execution of higher-margin contracts under national schemes and expanded supply to EPC contractors, demonstrating strategic agility and product diversification.
• Operating in the essential power and transformer manufacturing sector, Mangal Electrical benefits from domestic infrastructure growth and rising electricity demands, ensuring steady market opportunities.
• The company has built longstanding partnerships with reputable vendors and key clients, supporting stable revenue streams and consistent order inflows.
• Continuous investment in R&D allows Mangal Electrical to introduce innovative products and improve technical specifications, maintaining a competitive edge in the transformer and electrical equipment sector.
• The ongoing expansion of India’s power generation, transmission, and infrastructure sectors provides continuous growth avenues and strengthens market prospects for companies like Mangal Electrical.

Mangal Electrical IPO Risks

• Prices for key raw materials used in transformer manufacturing, such as CRGO and aluminum, are volatile due to factors outside the company’s control. Significant increases or fluctuations can adversely impact profitability, cost structures, and margins.
• Mangal Electrical relies heavily on external suppliers for raw materials and logistics partners for distribution. Any disruption, price hike, or breakdown in these relationships could halt or delay production and supply chains, affecting delivery timelines and financial results.
• Manufacturing operations require substantial power and fuel. Unexpected hikes in energy costs, fuel shortages, or infrastructural problems may impact production efficiency, elevate costs, and reduce profitability.
• A significant portion of the workforce at project sites consists of contract labor. Strikes, high attrition, or inability to retain skilled personnel may affect project execution quality, cause delays, and raise labor costs.
• The company does not have definitive agreements for sourcing products and raw materials, or with customers. Lack of such arrangements exposes it to sudden shortages or loss of clients, thereby increasing business risk.
• The presence of counterfeit products passed off as Mangal Electrical offerings could damage its brand reputation and erode competitive position if intellectual property rights are not strictly enforced.
• Delays in project execution, overruns in contract timelines, or poor implementation can cause financial losses, adversely affect client relationships, and delay revenue realization.