Mangal Electrical Industries (MEIL), a Jaipur-based power infrastructure player, is hitting the primary markets with an INR 400 crore IPO scheduled between August 20–22, 2025. The issue is priced in the range of INR 533–561 per share with a minimum lot size of 26 shares, implying a retail ticket size of about INR 14,586. The entire issue is a fresh offering, with no Offer-for-Sale (OFS), signalling that proceeds are directed toward corporate needs rather than promoter exits.
The timing is telling. India’s power transmission and distribution sector is witnessing an unprecedented wave of investment under the Revamped Distribution Sector Scheme (RDSS), large-scale renewable integration, and urban grid modernisation. For investors seeking insights, this Mangal Electrical IPO review highlights how the company, straddling the value chain from raw materials (CRGO cores) to finished transformers and even turnkey EPC contracts, is tapping the capital markets in 2025 in a move that appears both opportunistic and strategic.
Proceeds are earmarked for:
- Debt reduction (~INR 101.26 crore)
- Capacity expansion at Unit IV (Reengus, Rajasthan) (~INR 87.86 crore)
- Working capital infusion (~INR 122 crore)
- General corporate purposes
Deleveraging + expansion + liquidity: a classic IPO rationale.
Mangal Electrical IPO Review: Business Model Analysis
Unlike niche competitors who specialise in one segment, Mangal Electrical operates an integrated power equipment business model, spanning four major product categories and EPC services:
- CRGO (Cold Rolled Grain Oriented Steel)
- Essential material for transformer cores.
- Mangal processes and slits imported CRGO sheets into coils and laminations.
- Installed capacity: 16,200 MT (FY25).
- Effective capacity: 16,200 MT.
- FY25 production: 9,291 MT → 57% utilisation.
- CRGO acts as a backbone, feeding the in-house transformer unit and external sales.
- Transformers
- Range: 5 KVA single-phase to 10 MVA three-phase units.
- Primary consumers: state utilities, EPC contractors, and industrial clients.
- Unit IV (Reengus) is the core facility.
- Capacity: 10,22,500 KVA effective (FY25).
- Production: 9,66,943 KVA → 95% utilisation, the highest among product lines.
- High utilisation indicates demand momentum and near-term expansion needs.
- Oil-Immersed Circuit Breakers (ICB)
- Manufactured at Unit III.
- Effective capacity: 75,000 units (FY25).
- Production: 60,206 units → 80% utilisation.
- Steady utilisation trend (78% in FY24, 66% in FY23) suggests consistent demand.
- Amorphous Cores
- Advanced material improves transformer efficiency.
- Effective capacity: 2,400 MT (FY25).
- Production: 1,426 MT → 59% utilisation.
- A niche but growing category, aligned with energy-efficiency mandates.
- EPC Contracts (Turnkey Substations)
- Four projects completed till Nov 2024.
- Order book: INR 294.20 crore (30 June 2025).
- Sticky revenue but lumpy recognition.
- Provides long-term relationships with government utilities.
Why Integration Matters
- Margin Security: Control over CRGO → reduced dependency on external suppliers.
- Cross-Selling: Clients buying transformers can also source cores/laminations.
- Exports: USA, UAE, Netherlands, Oman markets provide forex revenues and derisk domestic cyclicality.
- Brand Credibility: Utilities prefer integrated vendors, reducing vendor management complexity.
In essence, Mangal has positioned itself as a mid-sized, full-stack power infra manufacturer, a rarity among listed peers.
Mangal Electrical IPO Review: Industry Context
Demand Drivers
- Power Infrastructure Push: India targets 24×7 electricity supply, requiring massive T&D investments.
- Renewable Integration: Wind and solar grids need modern, efficient transformers.
- RDSS Program: The INR 3 lakh crore-plus scheme is a multi-year tailwind.
- Urbanisation: Distribution expansion in Tier-2/3 cities → direct transformer demand.
Challenges
- Raw Material Risk: CRGO is almost entirely imported. Currency fluctuations and geopolitical shocks directly impact margins.
- Working Capital Stress: State utilities (DISCOMs) are infamously slow payers → liquidity crunches.
- Cyclicality: Capex-driven industry; downturns can quickly reduce utilisation.
Mangal Electrical IPO Review: Peer Comparison
| Company | PE Ratio | EPS | RONW (%) | Revenue (₹ Cr) |
|---|---|---|---|---|
| Mangal Electrical | 32.77 | 10.22 | 20.05 | 452.13 |
| Vilas Transcore | 38.99 | 12.82 | 15.57 | 313.95 |
| Jay Bee Laminations | 35.26 | 10.75 | 36.42 | 303.50 |
Takeaway: Mangal trades at a slight discount in P/E relative to peers, despite stronger revenue scale and a more diversified model. Its RONW (20.05%) is below Jay Bee but ahead of Vilas.
Operations & Manufacturing Ecosystem
Mangal operates five plants across Rajasthan with a combined footprint of 7,02,284 sq. ft.
- Unit I (Jaipur, Road No. 1) – CRGO processing; 62% utilisation in FY25.
- Unit II (Jaipur) – Transformer tanks & fabrication; internal consumption.
- Unit III (Jaipur, Road No. 16) – CRGO + ICB manufacturing; mixed utilisation.
- Unit IV (Reengus, Sikar District) – CRGO, transformers, amorphous cores; the flagship with 3,96,856 sq. ft. area. Expansion funded via IPO.
- Unit V (SEZ) – CRGO processing; under-utilised at 7% in FY25 (export-linked).
Capacity Utilisation Trends
- Transformers (Unit IV): climbed from 58% in FY23 → 95% in FY25. A clear sign of demand surge and efficiency gains.
- CRGO (overall): modestly improved to 57% in FY25 vs 48% in FY24. Still has headroom.
- ICBs: stable ~80%.
- Amorphous cores: slightly softening utilisation (66% in FY23 → 59% in FY25).
The upcoming Unit IV expansion is timely—transformer utilisation is near saturation, while CRGO has slack that can support higher internal consumption.
Mangal Electrical IPO Review: Financial Analysis
Revenue and Growth
- FY22–FY25 CAGR: ~28% (INR 256.65 crore → INR 549.42 crore).
- FY25 revenue: INR 549.42 crore, +22% YoY vs FY24.
- Growth has been broad-based: higher transformer dispatches + EPC contribution.
Profitability & Margins
- EBITDA Margin: 14.9% in FY25 vs 9.48% in FY24.
- Net Margin: recovered to 8.61% in FY25 (vs 4.66% in FY24).
- Interpretation: FY24 was margin-squeezed due to CRGO cost spikes; FY25 recovery shows pricing power returning.
Balance Sheet & Leverage
- Debt/Equity: 0.92 in FY25, down from 1.72 in FY22.
- IPO proceeds will further reduce leverage to ~0.5x, improving the credit profile.
Returns
- ROE: 34.14% in FY25, significantly higher than FY24 (20.05%).
- ROCE: 25.38% in FY25 vs 19.92% in FY24.
- Interpretation: capital efficiency improved sharply, largely due to operating leverage at high transformer utilisation.
Risk Factors
Despite a strong setup, several key risks merit attention:
1. Raw Material Dependence
- CRGO steel is almost entirely imported. Prices fluctuate with global steel cycles and currency swings.
- FY24 margins shrank sharply (EBITDA margin 9.48%) when CRGO costs spiked.
- Hedging tools are limited; hence, volatility is baked into business.
2. Working Capital Stress
- 50–60% of revenues come from state utilities (DISCOMs), notorious for delayed payments.
- This leads to stretched receivables and debt reliance.
- Even after IPO infusion, cash flow predictability will remain a concern.
3. Cyclical Industry Exposure
- The T&D equipment market grows in line with infrastructure spending.
- Government push is currently strong (RDSS, renewables integration), but any slowdown in policy execution could directly reduce order inflows.
4. Under-Utilised Assets
- Unit V (SEZ facility) is running at just 7% capacity utilization (FY25).
- Unless export markets scale, this asset risks becoming a drag on returns.
5. Competitive Pressure
- Larger listed players (Voltamp, ABB, Siemens India) have deeper balance sheets and stronger EPC positioning.
- Niche peers like Jay Bee Laminations enjoy higher profitability metrics.
- Mangal, as a mid-cap player, must walk the tightrope of scale vs. specialisation.
6. Execution of Expansion
- Unit IV expansion will raise capacity, but demand must keep pace.
- A mismatch could pressure returns and extend payback timelines.
Mangal Electrical IPO Review: Outlook & Investor Verdict
Growth Catalysts
- Power Sector Capex Cycle
- With INR 3 lakh crore earmarked under RDSS and grid modernisation, the demand runway is long.
- MEIL’s 95% transformer utilisation reflects near-term scarcity that expansion will address.
- Exports as a Hedge
- Presence in USA, Netherlands, Oman, and UAE diversifies away from the Indian DISCOM risk.
- Export-driven demand could also lift utilisation at SEZ Unit V.
- Integrated Business Model Advantage
- Few mid-cap peers offer CRGO + Transformers + Amorphous cores + EPC under one roof.
- This integration provides pricing flexibility and customer stickiness.
- Debt Reduction
- Post-IPO debt/equity will likely fall below 0.5x.
- Interest savings + better credit profile = improved earnings quality.
Verdict
For investors, Mangal Electrical IPO is neither a deep bargain nor an overhyped play. Instead, it’s a fairly valued mid-cap growth story riding a favourable industry cycle.
- Strengths: High transformer utilisation, visible expansion, improving margins, deleveraging balance sheet, and export diversification.
- Weaknesses: Import reliance, working capital stress, and peer competition.
Final Words
Mangal Electrical’s IPO is a story of scaling at the right time, backed by policy tailwinds and operating leverage. The company has transformed from a CRGO processor to a diversified power infrastructure supplier, and the IPO seeks to accelerate this journey.
In the end, the Mangal Electrical IPO review provides you a simple verdict:
- This is not a defensive stock, but a power cycle proxy.
- For those betting on India’s grid modernisation, Mangal Electrical is worth a seat at the table.