Mangal Electrical Industries Ltd Q2 FY26 – The Transformer Transformer with ₹154 Cr Sales, 14% Margins & IPO Juice Left in the Tank

1. At a Glance

Rajasthan’s own transformer whisperer,Mangal Electrical Industries Ltd (MEIL), has quietly sparked its way into the ₹1,315 crore market cap club. With the stock sitting at₹476, this freshly listed player (IPO August 2025) is doing some serious voltage balancing between manufacturing, EPC, and transformer components.

InQ2 FY26, the company clocked₹154 crore in revenue— up16.3% YoY— but profits dipped6.86% QoQto₹13.3 crore, suggesting someone might have left a resistor loose in the cost circuit. Still, itsOPM stands tall at 14.9%andROE at 34.1%—that’s juicier than most large-cap electricals can dream of.

Debt is a humble₹68 crore, and after the IPO, MEIL has morecash unutilised (~₹219 crore)than some old PSU transformers have insulation left. With aP/E of 28.4,ROCE of 30.4%, andbook value at ₹204, the valuation isn’t too shocking—just enough current to keep investors buzzing.

If you thought transformers were boring metal boxes, MEIL’s 126% profit growth over the past year says: think again.

2. Introduction

In a market where everyone wants to be the next solar messiah or EV disruptor, Mangal Electrical Industries decided to stay old-school — and it’s working.

Born in 2008 in Jaipur’s buzzing industrial heartland, MEIL doesn’t build unicorns, it buildstransformers, laminations, CRGO coils, and amorphous cores— the invisible guts of India’s power grid. While startups pitch “AI-powered energy solutions,” MEIL just quietly ensures that actual electricity keeps flowing.

Their FY25 sales stood at₹549 crore, up from ₹449 crore the previous year — that’s a solid22% growth. But what’s more impressive is thatprofits jumped 126%. Maybe they aren’t tweeting about “sustainability,” but they sure are sustaining margins.

The family-led company, spearheaded byRahul, Saroj, and Ashish Mangal, seems to have found the rare balance between traditional engineering and financial discipline. No pledges, no scandals, no random “crypto pivot.” Just transformers, coils, and cores — made in Rajasthan, shipped to theNetherlands, UAE, Oman, and the US.

And yes, while the world debates renewable targets, MEIL’s order book quietly hums at₹98 croreas of November 2024.

3. Business Model – WTF Do They Even Do?

MEIL isn’t just soldering wires — it’s engineering India’s backbone for transmission and distribution.

Here’s the electricity 101 version:

• CRGO Coils(Cold Rolled Grain Oriented steel) are the most premium component in transformers. MEIL processes16,200 MT per year, slicing and shaping these coils into core assemblies that reduce energy loss.
• Transformers: from single-phase 5 KVA household units tothree-phase 10 MVA medium-power beasts. Production capacity? A hefty7,50,000 KVA annually.
• ICBs (Immersed Circuit Breakers): safety devices that make sure your transformer doesn’t end up as an expensive firecracker — 75,000 units per year.
• EPC Services: end-to-end solutions for electrical substations. Essentially, they design, build, and energize the infrastructure that powers towns.

So, while most competitors import CRGO cores from China or Korea, MEIL’s vertical integration gives it control over both quality and margin.

In FY24,77% of revenuecame from transformer components,17%from manufacturing transformers, and6%from EPC.

That’s like running a dhaba where paneer butter masala (transformer components) pays the rent, thali combos (transformers) boost the margin, and party catering (EPC) adds some spice.

4. Financials Overview

Annualized EPS = ₹4.81 × 4 = ₹19.24At CMP ₹476, that’s aP/E of 24.7, lower than the reported trailing 28.4 — post-IPO dilution working its way in.

Commentary:Revenue up, profit down — classic