Powerica Limited

Powerica Limited is an integrated power solutions provider specializing in diesel generator sets ('DG sets'), for both primary and standby applications. As one of the original equipment manufacturers ('OEMs') for Cummins India Limited, they have maintained a relationship with them for over four decades. They commenced the DG sets business in 1984, and subsequently expanded the generator set portfolio to include medium speed large generators ('MSLG') in 1996. They continue to develop this segment through a collaboration with HD Hyundai Heavy Industries Co. Limited, on a non-exclusive basis. By integrating the DG set and MSLG offerings, they provide a comprehensive range of generator sets with capacities ranging from 7.5 kVA to 10,000 kVA, designed to meet the distinctive requirements of diverse industries and applications. Building on the experience in the Generator Set Business, they entered the wind power sector in 2008 as an independent power producer ('IPP'). Subsequently, they developed capabilities as an engineering, procurement and construction ('EPC') contractor as well as an operation and maintenance ('O&M') service provider for balance of plant ('BoP'). As of the date of this RHP, the operations in the wind power sector includes developing and operating IPP projects as well as undertaking EPC and O&M activities for BoP primarily within the wind power industry ('Wind Power Business'). Company manufactures DG sets along with auxiliary items, including acoustic enclosures, fuel and exhaust systems, and customised control panel systems. The offering comprises of comprehensive high speed generator solutions, powered by Cummins engines, covering the design, marketing, manufacturing, testing, supply, installing, and commissioning of DG sets ranging from 7.5 kVA to 3,750 kVA. The engines and alternators for the DG sets are sourced directly from Cummins. They have entered into a non-exclusive general supply agreement dated June 11, 2025 (“General Supply Agreement”), with Cummins India. They also collaborate with Cummins on the integration and testing of diesel generator products, ensuring alignment with evolving technological, regulatory, environmental and emission standards. They operate in-house manufacturing facilities to maintain direct control over processes, costs, and timelines. As of the date of this RHP, they own and operate three manufacturing facilities located in Bengaluru, Karnataka; Silvassa, Dadra and Nagar Haveli; and Khopoli, Maharashtra.  The extensive sales network supports effective customer engagement and market penetration. The DG set customers operate across diverse sectors, including commercial (hospitality, healthcare, banking and financial services industry – banks, education, residential and other real estate), infrastructure (retail infrastructure, logistics, railways and metros), manufacturing (industrial, process industries, dairy), agriculture (including cold storage and aquaculture), information technology/data centres, government and defense, and rentals. In addition to manufacturing and supply, they provide onsite installation services for DG sets. The on-site capabilities include electrical works, installation of exhaust systems, construction of diesel tank farms, load balancing, and automation solutions to support seamless transitions between the grid and DG sets, particularly in multi-unit operations. Medium Speed Large Generators ('MSLG') Business in association with Hyundai As part of the MSLG business, they provide comprehensive solutions, including pre-purchase consultancy, design, engineering, sales, testing, installation, and O&M services, all integrated with Hyundai-manufactured MSLG sets. They have a non-exclusive association with Hyundai to address market requirements for primary power or emergency applications, and high base load applications in continuous process industries. The MSLG sets they offer typically operate at 750 RPM, with single-unit capacities ranging from 3,000 kVA to 10,000 kVA, and may be configured in multiples for parallel operation at base load power stations. In addition to standard diesel operation, these sets have the flexibility to run on more cost-effective fuel grades, including heavy fuels such as crude oil, diesel, and gas. As per financial performance, Powerica Limited has posted total income / net profits of Rs 2,422.42 Cr / Rs 106.45 Cr (FY23), Rs 2,356.77 Cr / Rs 226.11 Cr (FY24), Rs 2,710.93 Cr / 175.83 Cr (FY25) and Rs 1,474.87 Cr / 134.55 Cr (upto Q2 FY26). So as per previous financials data, company has shown almost static sales, but net profit shown fluctuations. Company has an average EPS of Rs 14.84 and average RoNW of 18.18% for last three fiscals. Issue is priced at a P/BV of 3.54 as per NAV of Rs 111.60/- as on 30.09.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 22.11, 28.43 and 18.58 respectively. As per RHP, comparison between listed peers are shown in the above market. On BRLM's front, ICICI Securities Limited, IIFL Capital Services Limited, Nuvama Wealth Management Limited are associated with this IPO, and has handled 165 IPOs in last three fiscal years. ( As on 19.03.26 ) As per financials, Powerica Limited has shown almost static sales, RoNW is 15.37% and P/E is 22.11, 28.43 and 18.58 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks fully priced. Company is an integrated power solutions provider specializing in diesel generator sets ('DG sets'), for both primary and standby applications. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Bharat Oberoi
• 2 Renu Naresh Oberoi
• 3 Jai Ram Oberoi
• 4 Naresh Oberoi Family Trust
• 5 Bharat Oberoi Family Trust
• 6 Kabir and Kimaya Family Private Trust