Susan Electricals India IPO: ₹70.38 Cr Fresh Wiring

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1. At a Glance

Susan Electricals India Ltd. (SEIL) is raising ₹70.38 crore via IPO—₹60.22 crore fresh equity, ₹10.16 crore OFS—and will list on BSE SME on June 18. The company manufactures aluminium and copper winding wires, power cables, and conductors; revenue doubled to ₹269.96 crore in FY26, but profit jumped 223% to ₹18.25 crore in a single year.

That profit growth is the problem. The company went from ₹0.76 crore (FY24) to ₹5.65 crore (FY25) to ₹18.25 crore (FY26)—a pattern in a fragmented, competitive industry that raises the question: what swung so hard, and does it stick around?

At ₹120–127 per share, the market cap sits at ₹258.20 crore. Using FY26 profit, the P/E math lands at 14.15x post-IPO. But that number rests on earnings that tripled in twelve months in a business where margins compete on commodity wire and cable prices.

Promoter holding drops from 92.47% to 66.97% post-IPO. Three manufacturing plants in Ghaziabad, 216 employees, customers including state DISCOMs and EPC contractors. The offering closes June 15; allotment June 16; listing June 18.

Reader question: Does a jump from 4.16% to 6.77% PAT margin in one year signal operational leverage, or does it mark the tail end of a pricing cycle?

2. Introduction

SEIL was incorporated in 2007 and has spent nearly two decades supplying the unglamorous backbone of India’s power distribution: winding wires for transformers and motors, overhead conductors, and low-to-high tension cables. The business is unsexual and necessary—commoditised, capital-light to moderately capital-intensive, and crowded.

Between FY24 and FY26, the company expanded its footprint. It added equity shareholders at rising price points (₹30–129 per share between March 2024 and November 2025), and issued a 2-for-1 bonus in November 2025, doubling the share count at par value. The paid-up capital stood at ₹15.59 crore pre-IPO and will rise to ₹20.33 crore post-listing.

Revenue growth has been relentless: ₹103.59 crore (FY24) → ₹136.05 crore (FY25) → ₹269.96 crore (FY26). That’s 31% year-on-year in FY25 and 98% in FY26. Trading in aluminium wires and rods—a raw material the company also uses—now accounts for 33.69% of total revenue in FY26, up from 26.18% in FY24. Job work services are a sliver.

The company is coming to market just as the broadening of rural electrification tenders and Rural Distribution System Strengthening (RDSS) projects offer volume at scale. SEIL holds multi-state DISCOM vendor registrations and is positioned to bid on government contracts. Three facilities in Ghaziabad will form the manufacturing backbone; capex of ₹10.29 crore is earmarked to expand one of them.

3. Business Model: WTF Do They Even Do?

Strip away the cable-and-wire marketing, and SEIL is really three businesses stitched together.

Wires and Conductors. Aluminium and copper wires—wound strips for transformer and motor coils, bare aluminium conductors for overhead power lines. These are specified, high-volume, and sold into government tenders and private EPC contractors. Margins are thin; differentiation is in compliance, speed, and vendor approval. The company holds DISCOM approvals across seven states.

Cables. Low-tension (LT) cables up to 1.1 kV, including aerial-bunched variants, and high-tension (HT) cables in higher voltage grades, plus medium-voltage covered conductors (MVCC). The cables game is less commoditised than bare wire—there’s a bit more room for margin—but still price-competitive. The customer base is broad: DISCOMs, private utilities, EPC companies, traders.

Trading and Services. Here’s where things get interesting and slightly weird. The company buys aluminium wires and rods (the raw material it also uses in manufacturing) and sells them onward. In FY26, this trading arm contributed ₹90.86 crore of ₹269.96 crore total revenue—33.69%. That’s not small. Job work—processing wire and strip for third parties—is marginal.

The trading arm is a cash machine. It buys at one price, sells at a spread, and doesn’t tie up much capital in inventory relative to the margin it captures. It also insulates the manufacturing division from raw material price swings, because you’re buying and selling in the same market. The risk: if the spread collapses (when commodity prices stall or invert), the revenue line stops looking like growth and starts looking like leverage on a margin that evaporates.

Distribution is seven states in FY26: Uttar Pradesh, Jharkhand, Madhya Pradesh, Karnataka, and three unnamed. That’s narrow for a national grid business. DISCOM tenders are lumpy and cyclical; private EPC orders follow infrastructure cycles. The business is tender-centric, not consumer-facing, which means volume can swing hard quarter to quarter.

4. Financials Overview

Figures are consolidated, in ₹ crore.

YoY Growth (FY26 vs FY25)

Revenue climbed 98.4% to ₹269.96 crore. EBITDA nearly tripled to ₹32.08 crore (an 167% jump). PAT surged 223% to ₹18.25 crore.

The earnings acceleration is where this story bends. FY25 PAT was ₹5.65 crore on ₹136.05 crore revenue—a 4.16% margin. FY26 PAT was ₹18.25 crore on ₹269.96 crore revenue—a 6.77% margin. The margin expanded, but it’s still modest. What moved profit disproportionately is the combination of volume (98% revenue growth) and a margin lift that went from razor-thin to merely thin.

EBITDA tells a similar story. FY24 EBITDA was ₹3.64 crore (3.51% of revenue). FY25 EBITDA was ₹12.00 crore (8.82% of revenue). FY26 EBITDA was ₹32.08 crore (11.91% of revenue). The EBITDA margin is the operating lever; it’s widening, but from a historically compressed base.

Depreciation and finance costs have eaten the EBITDA spread. In a business with three manufacturing plants and working capital tied to inventory and receivables, capex and debt are structural features, not anomalies.

5. Market Expectations & Historical Multiples

This section describes how the market is currently pricing the company and how that compares with its own history and peer group. It is descriptive, not predictive.

The market currently pays 14.15x earnings at the upper IPO band price of ₹127 per share, based on FY26 profit. Peer companies trading in the cables and conductors space—Prime Cable Industries (P/E 16.77x), Divine Power Energy (P/E 46.35x), V-Marc India (P/E 27.90x)—show a median P/E of 31.50x. SEIL is priced below that peer cluster.

On a price-to-book basis, SEIL’s P/B stands at 5.15x against a peer median of 7.64x. The company’s book value per share is ₹24.68 (as of March 31, 2026), and the IPO price of ₹127 values that equity at 5.15x. Peers trade at higher book multiples, which suggests either that SEIL’s equity is