G V Electricals IPO (30 July - 3 August) Analysis

IPO Analysis | BSE SME | 100% Book Built Offer (Fresh Issue and Offer for Sale) | Regulation 229(2) and 253(1)

Based on Red Herring Prospectus dated July 24, 2026 | Power Distribution Infrastructure O&M and EPC Services | Mumbai, Maharashtra

STATUS: LIVE RHP, ANCHOR BID TODAY (JULY 30, 2026), BIDDING OPENS JULY 31 AND CLOSES AUGUST 4, 2026

Fresh Issue: up to 30,00,000 Equity Shares | Offer for Sale: up to 2,50,000 Equity Shares by 2 Promoters (Nil WACA) | BSE SME Platform

Incorporated 1985, 40 Years Operating History | RoNW of 31.09% (FY26) Sits Between 2 Listed Peers | Statutory Dues Delays Have Worsened, Not Improved, Over the Last 3 Years

 G V Electricals Ltd was incorporated as G.V. Electricals Private Limited on February 28, 1985, and converted to a public limited company on November 4, 2025, one of the longer operating histories in this report series. Its CIN is U43210MH1985PLC035529, with its registered office in Mahim, Mumbai and a corporate office in Rohini, North West Delhi. The Promoters are Jawed Akhtar, Sunil Lakshman Vatsa and Furquan Akhtar.

The Company is a power distribution infrastructure services provider engaged in operation and maintenance (O&M) and allied support services primarily for electricity distribution utilities in India, organised across 3 service verticals: Network Operation and Maintenance Services (installation, testing, commissioning, fault detection and repair across 33 kV, 11 kV, HT and LT distribution networks), Electrical Infrastructure and Network Development Works (pole erection and shifting, cable laying, jointing and termination), and Metering and Meter Management Services (meter installation, replacement, testing and reading).

The Company holds ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 and SA 8000:2014 certifications, and as of June 30, 2026 had an order book of 34 ongoing projects with an aggregate unexecuted value of approximately Rs.553.70 Crore. Chairman Jawed Akhtar and Managing Director Sunil Lakshman Vatsa each have over 30 years of industry experience.

Revenue from operations grew from Rs.11,179.56 Lakhs in Fiscal 2024 to Rs.15,641.29 Lakhs in Fiscal 2026, while PAT more than doubled in the most recent year, from Rs.466.08 Lakhs in Fiscal 2025 to Rs.1,046.57 Lakhs in Fiscal 2026. The Company's revenue remains heavily dependent on electricity distribution utilities (79.10% of FY 2026 revenue) and Network O&M Services specifically (76.90% of FY 2026 revenue), both discussed further in Section 6.

Key Basics

Particulars	Details
Document Type	Red Herring Prospectus (RHP) dated July 24, 2026. This is a live offer with an extremely imminent timeline: Anchor Bid Thursday, July 30, 2026 (today, relative to this analysis), Bid or Offer opens Friday, July 31, 2026 and closes Tuesday, August 4, 2026.
Issue Structure	100% Book Built Offer comprising a Fresh Issue of up to 30,00,000 Equity Shares by the Company and an Offer for Sale of up to 2,50,000 Equity Shares by 2 Promoter Selling Shareholders, aggregating to up to 32,50,000 Equity Shares, of which 2,80,000 shares are reserved for the Market Maker. Face value Rs.10 per share.
Face Value	Rs.10 per Equity Share.
Promoters	Jawed Akhtar, Sunil Lakshman Vatsa and Furquan Akhtar.
Selling Shareholders and WACA	2 of the 3 Promoters are Selling Shareholders: Jawed Akhtar and Sunil Lakshman Vatsa, each offering up to 1,25,000 Equity Shares at a Weighted Average Cost of Acquisition of Nil (Rs.0), meaning their entire sale proceeds represent pure gain relative to original cost.
Eligibility Route	Regulation 229(2) and 253(1) of Chapter IX of the SEBI ICDR Regulations, 2018.
Listing Exchange	BSE SME Platform, with in principle approval dated May 21, 2026.
BRLM	Seren Capital Private Limited.
Registrar	Mudra RTA Ventures Private Limited.
Bid or Offer Dates	Anchor Bid: Thursday, July 30, 2026. Opens: Friday, July 31, 2026. Closes: Tuesday, August 4, 2026.
Listed Peers, One Line	2 listed peers (Rajesh Power Services Limited and Parth Electricals & Engineering Limited), both in the same broad line of business but with a different product portfolio mix per the Company's own disclosure.

The most notable structural feature of this offer is that both Promoter Selling Shareholders are exiting at a Weighted Average Cost of Acquisition of Nil, meaning the entire Offer for Sale proceeds they receive represent pure gain with no original cash cost basis. Combined with a genuinely long, 40 year operating history (predating most companies in this report series by decades), this offer has a different risk and governance profile than the newer SME issuers processed alongside it.

How Will the IPO Money Be Used?

Object	Estimated Amount (Rs. Lakhs)	Substantiation
Repayment of a portion of borrowings (cash credit loan to Bank of Maharashtra)	600.00	A specific, named lender and facility type disclosed; funded entirely from Net Proceeds, existing bank borrowings and internal accruals with no external appraisal required under Regulation 230(1)(e).
Funding of working capital requirements	2,200.00	A specific rupee figure disclosed, consistent with the working capital intensive nature of project-based O&M and infrastructure services; not independently appraised by a bank or financial institution.
General corporate purposes	[TBD]	To be finalised upon determination of the Offer Price; no cap percentage was located in the summary reviewed here, so investors should confirm the exact cap in the full RHP.

This Issue has no capital expenditure Object: the Net Proceeds are directed entirely at debt repayment and working capital, consistent with the Company's asset-light, project execution based service model rather than owned manufacturing capacity. The debt repayment Object identifies a specific lender (Bank of Maharashtra) and facility type (cash credit), which is more specific than a generic 'repayment of borrowings' line seen in some other reports in this series.

As with all RHPs at this stage, the Gross Proceeds, Net Proceeds and General Corporate Purposes figures remain undetermined until the Offer Price is fixed, and none of the fund requirements have been independently appraised by a bank or financial institution.

Financial Performance

P&L and Key Metrics (Rs. Lakhs unless stated)

Particulars	FY 2026	FY 2025	FY 2024
Revenue from operations	15,641.29	13,123.56	11,179.56
EBITDA	1,704.94	804.35	613.89
EBITDA margin (%)	10.90	6.13	5.49
Profit after tax	1,046.57	466.08	280.32
PAT margin (%)	6.69	3.55	2.51
Return on equity / RoNW (%)	36.81	23.16	17.91
Return on capital employed (%)	31.13	23.88	27.14
Net worth	3,366.56	2,319.99	1,705.07
NAV per equity share (Rs.)	40.66	28.70	21.10
Repeat customer revenue (%)	88.29	97.14	99.28

Cash Flow Highlights (Rs. Lakhs)

Particulars	FY 2026	FY 2025	FY 2024
Net cash from / (used in) operating activities	(330.99)	108.18	38.67

Independently recomputed, revenue grew approximately 17.4% in FY 2025 and a further 19.2% in FY 2026, reconciling with the RHP's own figures, while PAT growth has been sharper and accelerating: 66.3% in FY 2025 and a further 124.5% in FY 2026, more than doubling in the most recent year alone. RoNW has climbed steadily and substantially across all 3 years, from 17.91% to 23.16% to 36.81%, and EBITDA margin nearly doubled from 5.49% to 10.90% over the same period, a genuinely improving trend rather than a single-year spike.

The one notable caveat is FY 2026 cash flow: operating cash flow turned negative (Rs.(330.99) Lakhs) in the same year the Company posted its highest ever profit, a divergence pattern also seen in a small number of other companies in this report series, and one the Company's own Risk Factors attribute to increased working capital requirements, including delays in customer payments, common in project-based utility contracting work.

FY 2024 and FY 2025 operating cash flow were both modestly positive (Rs.38.67 Lakhs and Rs.108.18 Lakhs respectively), so this is a change in direction worth monitoring rather than an established pattern across the full 3 year record.

How Does It Compare to Peers?

Company	Total Income (Rs. Lakhs)	EPS (Rs.)	P/E (times)	RoNW (%)	NAV/Share (Rs.)
G V Electricals Ltd	15,666.10	12.64	N/A (Price TBD)	31.09	40.66
Rajesh Power Services Limited	1,63,341.29	79.52	10.69	35.26	225.56
Parth Electricals & Engineering Limited	20,094.69	11.35	39.20	12.78	81.54

The RHP discloses 2 listed peers in the same broad line of business, Rajesh Power Services Limited and Parth Electricals & Engineering Limited, though the Company itself notes there is a distinction in product portfolio between it and both peers, so the comparison should be read as broad rather than precise.

Rajesh Power Services is roughly 10.4 times larger than G V Electricals by total income and has a slightly higher RoNW (35.26% versus 31.09%), while Parth Electricals is a smaller but still larger peer (roughly 1.3 times G V Electricals' income) with a materially lower RoNW (12.78%). The industry average P/E across this 2 company peer set is 24.95 times, with a wide range (10.69 to 39.20 times), and G V Electricals' own P/E cannot yet be calculated pending Offer Price determination within the disclosed structure.

Key Risks to Know Before Applying

l Statutory dues delays have worsened, not improved, over the 3 year track record shown: delayed PF payments rose from Rs.413.51 Lakhs across 40 instances in FY 2024 to Rs.911.39 Lakhs across 158 instances in FY 2026, and delayed GST payments rose from Rs.1,290.43 Lakhs (49 instances) to Rs.2,260.23 Lakhs (69 instances) over the same period, alongside recurring delays in ESIC, Labour Welfare Fund, Professional Tax and TDS remittances.

While all amounts have since been paid with applicable interest and late fees, the growing scale and frequency of these delays through the most recent fiscal year is a trend worth close attention, distinct from cases elsewhere in this series where similar issues were disclosed as historical and improving.

l Revenue is heavily concentrated both by customer type and by individual customer: electricity distribution utilities alone contributed 79.10% of FY 2026 revenue, and the top 10 customers contributed 94.76% of FY 2026 revenue (with the single largest customer alone contributing 33.33%), typically under project-specific work orders or rate contracts rather than long-term guaranteed agreements.

l Revenue is also heavily concentrated in a single service vertical, Network O&M Services, which contributed 76.90% of FY 2026 revenue; any adverse shift in utility maintenance outsourcing practices or budgetary priorities could disproportionately affect the Company.

l Operating cash flow turned negative in FY 2026 (Rs.(330.99) Lakhs) in the same year the Company posted record profit, which the Company attributes to increased working capital needs and customer payment delays typical of utility sector contracting.

l The Company has been unable to trace certain historical corporate and secretarial records dating back to the 1980s and 1990s (including forms from 1988-89, 1994-95 and multiple Form No. 8 filings from the mid-1990s and 2000s), and has identified clerical and typographical inaccuracies in more recent AOC-4 and MGT-7 filings that the Company states cannot be rectified through resubmission.

l Both Promoter Selling Shareholders in the Offer for Sale, Jawed Akhtar and Sunil Lakshman Vatsa, are exiting at a Weighted Average Cost of Acquisition of Nil, meaning their entire sale proceeds represent pure gain with no cash cost basis.

l The Company previously failed to meet its CSR spending obligation within the prescribed timeline for Fiscal 2023, though the shortfall has since been remitted and the non-compliance cured.

l Most of the Company's operational premises (offices, warehouses, guest houses near project sites) are held on short-term leases of 10 to 11 months, and the registered office lease itself runs only through February 2029, creating recurring renewal and relocation risk across a geographically dispersed project footprint.

l The Company depends on third-party contractors and subcontractors for certain activities and on third-party suppliers for electrical materials and equipment, without necessarily long-term supply or subcontracting agreements.

l The Company's business is dependent on availability and deployment of skilled and semi-skilled manpower (linemen, technicians, supervisors), a segment that can face wage inflation and availability constraints.

l There are certain outstanding legal proceedings involving the Company, primarily relating to labour matters, and the Company operates in a competitive tendering environment where inability to win new contracts could affect growth.

Positives to Note

l Profitability has improved sharply and consistently across all 3 disclosed fiscal years, not just in a single spike year: PAT margin rose from 2.51% to 3.55% to 6.69%, and RoNW rose from 17.91% to 23.16% to 36.81% between FY 2024 and FY 2026.

l The Company has a genuinely long, 40 year operating history (incorporated 1985), one of the longest track records in this report series, together with over 30 years of relevant industry experience from both its Chairman and Managing Director.

l As of June 30, 2026, the Company holds a substantial order book of 34 ongoing projects worth approximately Rs.553.70 Crore (unexecuted portion), providing meaningful forward revenue visibility.

l The Company holds a broad set of recognised management system certifications (ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, SA 8000:2014), supporting its positioning as a qualified contractor for utility-grade infrastructure work.

l Revenue from repeat customers has remained consistently high across all 3 years (88.29% to 99.28%), indicating durable, ongoing relationships with the Company's utility customer base rather than one-off project wins.

l RoNW of 31.09% in FY 2026 sits ahead of one of the Company's two disclosed listed peers (Parth Electricals & Engineering at 12.78%) and close to the other (Rajesh Power Services at 35.26%), a reasonable showing relative to established, larger peers in the same broad sector.

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