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
Seven IPOs Targeting Over ₹2,000 Crore Launch This Week Seven companies are set to open their initial public offering (IPO) subscriptions this week, aiming to collectively raise more than ₹2,000 crore. The mainboard listings include Powerica, Amir Chand Jagdish Kumar Exports, and Sai Parenteral, which will begin accepting applications on March 24. Additionally, smaller enterprises such as Tipco Engineering, Highness Microelectronics, Vivid Electromech, and Emiac Technologies will also debut their IPOs during the week. The offerings mark a significant fundraising opportunity for the listed companies, with the combined target reflecting confidence in market conditions. Powerica, a power solutions provider, is expected to attract investor interest due to its established presence in the energy sector. Amir Chand Jagdish Kumar Exports, a textiles firm, and Sai Parenteral, a pharmaceutical company, are also among the key listings. The SME-focused IPOs, including Tipco Engineering, a manufacturer of industrial components, and Highness Microelectronics, a semiconductor producer, aim to expand their capital base for growth initiatives. Vivid Electromech, specializing in electrical systems, and Emiac Technologies, a technology-driven firm, will also seek funding to scale operations. The IPO window opens on March 24, with investors able to apply for shares through designated stock exchanges. The offerings are likely to draw attention from both retail and institutional investors, given the substantial fundraising targets. Market analysts suggest the timing aligns with favorable investor sentiment, though regulatory approvals and market volatility could influence the outcome.#powerica #amir_chand_jagdish_kumar_exports #sai_parenteral #tipco_engineering #highness_microelectronics
Powerica IPO Launches Today: Key Details, Analyst Insights, and Market Expectations The initial public offering (IPO) of Powerica commenced on Tuesday, March 24, with shares priced between Rs 375 and Rs 395 per equity share. Investors can apply for a minimum of 37 shares, with subsequent multiples available. The issue will remain open for bidding until Friday, March 27. The Rs 1,100 crore IPO includes a fresh share offering of Rs 700 crore and an offer-for-sale (OFS) of up to 1.01 crore equity shares valued at Rs 400 crore. Proceeds from the fresh issue will be allocated toward debt repayment and general corporate purposes. Based in Mumbai, Powerica is a power solutions provider specializing in diesel generator sets (DG sets) for primary and backup power applications. The company offers a wide range of generator sets, with capacities spanning from 7.5 kVA to 10,000 kVA, tailored to meet the needs of various industries. Ahead of its IPO, Powerica secured Rs 329.40 crore from 17 anchor investors, allocating 83,39,239 equity shares at Rs 395 each. Key investors include SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, and others. For the six months ended September 31, 2025, Powerica reported a net profit of Rs 134.55 crore on revenue of Rs 1,474.87 crore. In the financial year 2024-25, the company achieved a net profit of Rs 175.83 crore on revenue of Rs 2,710.93 crore. At current valuations, Powerica’s market capitalization is estimated at nearly Rs 5,000 crore. The IPO reserves 50% of the net offer for qualified institutional bidders (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors. A grey market premium of Rs 5 per share has been observed, indicating a potential flat listing for investors.#mufg_intime_india #icici_securities #powerica #iifl_capital_services #nuvama_wealth_management
