Mangal Elect: All You Need to Know

The Indian transformer industry is poised for sustained growth, supported by rapid urbanization, industrial expansion, and rising electricity demand. The market is estimated at ₹353.9 billion in FY25, reflecting strong momentum in recent years. The growing share of renewable energy, particularly solar and wind, underscores India’s push toward decarbonization and sustainable power generation. With energy demand projected to rise to 1,907 BU by FY27 and 2,473 BU by FY32, alongside peak power demand increasing from 250 GW in FY25 to 366 GW by FY32, significant investment in transmission and distribution infrastructure will be critical. Policy initiatives such as the Deen Dayal Upadhyaya Gram Jyoti Yojana, Integrated Power Development Scheme, Revamped Distribution Sector Scheme, Green Energy Corridor, and the “One Nation – One Grid” vision further strengthen the growth outlook for the transformer industry.

Mangal Electrical is engaged in processing transformer components such as laminations, CRGO slit coils, amorphous cores, coil and core assemblies, wound and toroidal cores, and oil-immersed circuit breakers, while also trading in CRGO and CRNO coils and amorphous ribbons. The company manufactures transformers ranging from single-phase 5 KVA to three-phase 10 MVA, along with customized products for the power infrastructure industry, and also undertakes EPC services for setting up electrical substations. Backed by a diversified product portfolio and presence across critical segments of the transformer value chain, the company reported a healthy order book of ₹2,941.98 million as of June 30, 2025, providing strong revenue visibility.

Mangal Electrical has delivered strong financial performance, with revenue from operations rising to ₹5,494.21 million in FY25, reflecting consistent growth from ₹4494.85 million in FY24 and ₹3,543.09 million in FY23. Profitability improved significantly, with EBITDA nearly doubling to ₹818.41 million in FY25 and margins expanding to 14.90% from 9.48% in FY24. Net profit after tax surged more than twofold to ₹473.07 million in FY25, driving net profit margins higher to 8.61%. Return ratios remained robust with RONW at 34.14% and ROCE at 25.38%, underscoring efficient capital utilization. The company also maintained a healthy balance sheet with a comfortable debt-equity ratio of 0.92x and improved working capital cycle of 131 days, highlighting its strong financial position and growth momentum.

Objects of the issue: 

1. Prepayment and Repayment of borrowings – INR 1012.67 million
2. Capex at Unit IV situated at Reengus Sikar District, Rajasthan – INR 878.56 million
3. Working capital requirements – INR 1220 million
4. General corporate purposes