Powerica Generates Sales, but Margins, ROE Weigh Powerica, a generator set maker with a growing wind power business, reported revenue growth and profit increases in fiscal year 2025 but faced challenges in maintaining profitability compared to industry peers. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margin declined to 13% in FY25 from 14% in FY23, lagging behind competitors like Cummins India and Kirloskar Oil Engines, which maintained margins of 19-23%. Despite these financial hurdles, Powerica’s revenue rose 5.3% annually to ₹2,653 crore in FY25, up from ₹2,378 crore in FY23, while net profit increased by 25.8% to ₹175.8 crore from ₹106.5 crore during the same period. The company has expanded its operations into renewable energy since 2008, building a wind power business that includes independent power production (IPP), engineering, procurement, and construction (EPC), and operations and maintenance (O&M) services. By the end of FY25, its total installed operational wind capacity reached 279.6 megawatts (MW). However, its core business remains the diesel generator set (genset) segment, which contributed about 85% of total revenue in FY25. This business relies heavily on Cummins India for engines, which account for over two-thirds of the company’s total revenue. The dependence on a single supplier has raised concerns about operational risks and cost control. Powerica’s return on equity (ROE) also declined, dropping to 17.5% in FY25 from 26.5% in FY24. While the company’s net debt-equity ratio fell to 0.2 in FY25 from 0.3 in FY23, it rose again to 0.4 in the first half of FY26 as the firm accelerated its wind power projects. The company plans to raise ₹700 crore through a fresh equity issue and ₹400 crore via an offer for sale to repay debt.#karnataka #hyundai #powerica #cummins_india #kirloskar_oil_engines
Powerica IPO Day 1: Check GMP, Subscription Status & Key Highlights The Initial Public Offering (IPO) for Powerica Limited commenced on March 24, 2026, with subscription open until March 26, 2026. Powerica Limited, a company engaged in manufacturing and supplying diesel and gas generator sets, as well as providing power solutions and energy equipment to industrial and commercial customers, is operating in the power backup and energy infrastructure sector. The IPO is expected to finalize its allotment process on March 30, 2026, with shares set to list on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on April 2, 2026. The IPO is a book-building issue totaling ₹1,100 crores, split into a fresh issue of ₹700 crores and an offer for sale (OFS) of ₹400 crores. The price band for the shares is set at ₹375 to ₹395 per share, with a minimum application lot size of 37 shares. The book-running lead managers for the issue are ICICI Securities Limited, IIFL Capital Services Limited, and Nuvama Wealth Management Limited, while MUFG Intime India Private Limited serves as the registrar. On the first day of subscription, the Grey Market Premium (GMP) for Powerica Limited was reported at ₹5. The subscription status as of March 24, 2026, at 11:57 AM, indicated the level of investor interest in the offering. The company plans to use the net proceeds from the fresh issue to prepay or repay outstanding borrowings and for general corporate purposes. Powerica Limited, incorporated in 1983 and headquartered in Mumbai, is a key authorized dealer of Cummins India. It offers a wide range of power backup and distributed energy solutions for industrial, commercial, and residential applications.#icici_securities #powerica_limited #iifl_capital #nuvama_wealth #cummins_india
