Laser Power and Infra IPO (9-13 July) Analysis

Jul 8

13 min read

Updated: Aug 11

IPO Analysis | BSE and NSE Main Board | Fresh Issue: Rs.542 Crore | OFS: Rs.200 Crore | Total: Rs.742 Crore

Based on Red Herring Prospectus dated July 3, 2026 | Integrated Power Cables, Conductors and EPC | Kolkata, West Bengal

Laser Power and Infra Limited (LPIL) is a Kolkata, West Bengal-based integrated manufacturer of power cables and conductors and an EPC contractor in the power distribution sector, with an established operating history of over three decades. Its registered office is at 4A, Pollock Street, 3rd Floor, Kolkata 700001, and its corporate office is at Adventz Infinity@5, 19th Floor, BN Block, Sector V, Bidhannagar, Kolkata 700091. Its website is www.laserpowerinfra.com. Its CIN is U14220WB1988PLC043591. The four promoters are Deepak Goel, Devesh Goel, Akshat Goel, and Rakhi Goel.

Business model: two segments. First, Manufacturing (72.70% of FY2026 revenue): LPIL manufactures a comprehensive range of power cables and conductors at three manufacturing units in West Bengal, all located in the eastern part of India, with a combined installed capacity of 85,448 MT as of March 31, 2026.

Product categories include:

(a) Power and Control Cables, covering LV and MV power cables, aerial bunched cables (ABC), control and quad cables, RDSO-certified railway signalling cables;

(b) Specialty Products, including in-house production of aluminium rods, aluminium alloy rods, and PVC compounds, supporting backward integration; and

Second, EPC (27.30% of FY2026 revenue): engineering, procurement, and construction services in the power distribution sector, focusing on rural electrification projects, distribution infrastructure development, and substation installation, entered in 2015.

Manufacturing facilities: Manufacturing Unit I at Dhulagarh, West Bengal (HT power cables, RDSO signalling cables, conductors); Manufacturing Unit II at Dhulagarh, West Bengal (aluminium wire rods, HT covered conductors); Manufacturing Unit III at Kharagpur, West Bengal (LT aerial bunched cables, LT power cables, ACSR conductors). Proximity to Kolkata and Haldia ports provides logistical advantage. All three units hold ISO 9001, ISO 14001, and ISO 45001 certifications.

Key credentials and partnerships: LPIL is a registered supplier to Indian Railways, accredited by RDSO, and is described by CRISIL as one of the largest approved vendors for certain cable categories among East India manufacturers.

The company has a licensed stranding partnership with TS Conductor Corp (USA), a proprietary carbon fibre composite core transmission technology provider, enabling domestic manufacturing of advanced high-capacity conductors. Customers include Indian Railways, multiple DISCOMs (TP Central, TP Western, TP Northern, TP Southern Odisha Distribution), and international clients in Africa, Bangladesh, Bhutan, and Nepal.

Corporate history context: LPIL's current structure arose from a composite scheme of arrangement sanctioned by the National Company Law Tribunal, Kolkata Bench in January 2025.

This scheme involved: a merger of multiple entities with Lumino Industries Limited, followed by a demerger of the EPC and manufacturing division from Lumino into LPIL, and a second demerger of a kitchen utensils business from Bhuvee Stenovate Private Limited into LPIL. These restructuring events mean FY2024 financial information is prepared on a combined basis and is not directly comparable to FY2025 and FY2026 consolidated numbers.

Growing order book: the company's order book grew from Rs.21,727.39 million (FY2024) to Rs.32,434.00 million (FY2026), implying an order book coverage of approximately 1.4x FY2026 revenue. The order book growth is primarily driven by large EPC contracts, which also drive the working capital intensity of the business.

Key Basics

This Offer comprises both a Fresh Issue (Rs.542 Crore) and an Offer for Sale (Rs.200 Crore by three Promoter Selling Shareholders). It is listed on both BSE and NSE main boards under Regulation 6(1) of SEBI ICDR Regulations. The Issue is active with Anchor Bidding on July 8 and bids open July 9. Price Band is not yet disclosed.

Document Type	Red Herring Prospectus (RHP) dated July 3, 2026. Price Band to be announced at least two Working Days prior to Bid/Offer Opening Date.
Offer Structure	Fresh Issue of Equity Shares aggregating up to Rs.5,420 million (Rs.542 Crore) + OFS of Equity Shares aggregating up to Rs.2,000 million (Rs.200 Crore). Total Offer: up to Rs.7,420 million (Rs.742 Crore).
OFS Selling Shareholders	Deepak Goel: up to Rs.112.50 Crore (WACA Rs.0.01). Rakhi Goel: up to Rs.25 Crore (WACA Rs.0.10). Devesh Goel: up to Rs.62.50 Crore (WACA Nil). Total OFS: Rs.200 Crore.
Face Value	Rs.5 per Equity Share
Pre/Post Offer Shares	Pre-Offer: 11,50,41,240 Equity Shares. Post-Offer: Equity Shares (increased due to Fresh Issue allotment).
Promoters	Deepak Goel, Devesh Goel, Akshat Goel, and Rakhi Goel.
Eligibility	Regulation 6(1) of SEBI ICDR Regulations, the standard main board profitability-based eligibility route.
Listing Exchanges	BSE Limited and National Stock Exchange of India Limited (NSE). Designated Stock Exchange: NSE. In-principle approvals received.
BRLMs	IIFL Capital Services Limited (formerly IIFL Securities Limited) and one other BRLM.
Registrar	Not named in the sections reviewed.
Anchor Bidding	Wednesday, July 8, 2026.
Bid/Offer Opens	Thursday, July 9, 2026.
Bid/Offer Closes	Monday, July 13, 2026.
Listed Peers	Apar Industries Limited, Polycab India Limited, KEI Industries Limited, Dynamic Cables Limited, and Universal Cables Limited (five named listed peers for accounting ratio comparison).

The OFS proceeds of Rs.200 Crore go entirely to three Promoter Selling Shareholders. The Fresh Issue Net Proceeds of approximately Rs.542 Crore (less Offer expenses) are deployed in two objects. The dominant object is debt repayment.

Object	Amount (Rs. Crore)	Details
Pre-payment or Re-payment of Outstanding Borrowings	490.00	Partial repayment of existing borrowings comprising working capital facilities, vehicle loans, and term loans. Total sanctioned borrowings as of June 17, 2026 were Rs.1,527.98 Crore against which Rs.935.67 Crore was outstanding. Debtor days of 196 days and net working capital of Rs.1,020.66 Crore drive high short-term borrowing needs. All deployment planned in FY2027.
General Corporate Purposes	[TBD]	Capped at 25% of Gross Proceeds. To be finalised upon Issue Price determination.
TOTAL NET PROCEEDS (Fresh Issue)	~542 Crore (minus expenses)	100% Fresh Issue net proceeds to company. OFS of Rs.200 Crore goes to Promoter Selling Shareholders. None of the Objects have been appraised by any bank or financial institution.

The use of proceeds is fundamentally a balance sheet deleveraging exercise. The Rs.490 Crore debt repayment will reduce total outstanding borrowings from approximately Rs.936 Crore (as of June 2026) by approximately 52%, meaningfully reducing the annual finance cost burden (which stood at Rs.133.02 Crore in FY2026). The company explicitly states the reduced debt-equity ratio will also lower the cost of future borrowings, supporting ongoing growth. The heavy working capital cycle of 138 days and debtor days of 196 days, driven by government/DISCOM customers with longer payment terms, makes deleveraging a directly operationally relevant objective.

Financial Performance

Note: All figures in Rs. million unless stated. Figures in Rs. Crore also provided for key line items. Financial periods: Fiscal 2026 (year ended March 31, 2026), Fiscal 2025 (year ended March 31, 2025), Fiscal 2024 (year ended March 31, 2024). Restated Consolidated Financial Information under Ind AS, certified by V. Singhi and Associates, Chartered Accountants (FRN: 311017E).

Important: FY2024 is a Restated Combined Statement incorporating entities that were subsequently merged or demerged into LPIL and may not be directly comparable to FY2025 and FY2026 Consolidated figures. The company has achieved rapid revenue growth (15.37% CAGR over FY2024 to FY2026) with meaningfully improving margins.

Revenue, EBITDA, and Profitability

Metric	FY2026 (Rs. Mn)	FY2025 (Rs. Mn)	FY2024 (Rs. Mn)
Revenue from Operations	23,261.04	25,703.97	17,475.78
Revenue in Rs. Crore	Rs.2,326 Cr	Rs.2,570 Cr	Rs.1,748 Cr
2-Year CAGR (FY2024 to FY2026)	15.37%
Manufacturing Revenue (Rs. Mn)	16,910.39 (72.70%)	18,570.48 (72.25%)	15,278.28 (87.43%)
EPC Revenue (Rs. Mn)	6,350.65 (27.30%)	7,133.49 (27.75%)	2,197.50 (12.57%)
Revenue Growth % YoY	(9.50%)	+47.08%	N/A
EBITDA (Rs. Mn)	3,014.42	2,503.87	1,561.04
EBITDA Margin %	12.96%	9.74%	8.93%
Profit After Tax / PAT (Rs. Mn)	1,515.91	1,067.54	404.09
PAT Growth % YoY	+42.00%	+164.17%	N/A
PAT Margin %	6.46%	4.12%	2.29%
Return on Equity (RoE) %	23.32%	19.76%	10.41%
Return on Capital Employed (RoCE) %	17.83%	17.58%	12.49%
Net Working Capital Cycle (days)	138	88	101
Debtor Days	196 days (FY2026)
Net Debt (Rs. Mn)	8,013.59	4,984.96	3,931.84
Net Debt to Equity (times)	1.10x	0.67x	0.61x
Net Debt to EBITDA (times)	2.66x	1.99x	2.52x
Basic EPS (Rs.)	13.18	[est.]	[est.]
RoNW % (from peer table)	20.90%
NAV per share (Rs., from peer table)	63.06
Order Book (Rs. Mn)	32,434.00		21,727.39

The financial trajectory over three years is one of consistently improving margins on growing revenue. Revenue grew 47.08% in FY2025 (largely from strong EPC momentum as EPC revenue jumped from Rs.2,197.50 million to Rs.7,133.49 million) before contracting 9.50% in FY2026 as EPC revenue moderated slightly.

EBITDA margin has expanded consistently from 8.93% (FY2024) to 12.96% (FY2026), reflecting both operational leverage and improving product and contract mix. PAT has grown very rapidly, from Rs.404.09 million (FY2024) to Rs.1,515.91 million (FY2026), nearly a fourfold increase in two years, as margin expansion compounded with revenue growth.

The key financial concern visible in the KPI data is the rapid increase in net working capital cycle from 88 days (FY2025) to 138 days (FY2026), accompanied by a near-doubling in net debt from Rs.4,984.96 million to Rs.8,013.59 million over the same period.

Trade receivables of Rs.13,749.57 million against FY2026 revenue of Rs.23,261.04 million, implying 196 debtor days, reflect the structural characteristic of serving government entities and DISCOMs where payment cycles are inherently long. This high working capital intensity is the primary reason debt has grown even as profitability has improved, and is the direct driver of the Rs.490 Crore debt repayment as the dominant use of IPO proceeds.

Balance Sheet and Cash Flow

Item	FY2026 (Rs. Mn)	FY2025 (Rs. Mn)	FY2024 (Rs. Mn)
Total Equity (attributable to owners)	7,254.13	5,745.84	6,339.68
Equity Share Capital	575.21	63.91	63.91
Non-controlling Interests	Nil (absorbed post-restructuring)	1,700.04	1,669.22
Non-Current Borrowings	1,123.66	1,209.75	732.62
Current Borrowings	7,158.68	3,819.74	3,204.87
Trade Payables	7,672.54 (est.)
Total Assets	26,323.57	22,701.65	19,869.87
Property, Plant and Equipment (Net)	3,724.91	3,462.86	3,336.95
Capital Work-in-Progress	531.39	564.73	204.61
Inventories	8.43 + 11,199.17 + 44.53 (est. ~11,252)
Trade Receivables	13,749.57	11,199.17 (est.)	7,874.17
Cash and Cash Equivalents	264.14 (est.)	44.53	5.65
Net Cash from Operating Activities (Rs. Mn)	(1,190.48)	603.39	1,708.08
Net Cash from Investing Activities (Rs. Mn)	(705.56)	(609.86)	(653.82)
Net Cash from Financing Activities (Rs. Mn)	2,132.62	45.35	(1,090.22)

The balance sheet shows total assets growing from Rs.19,869.87 million (FY2024) to Rs.26,323.57 million (FY2026), driven primarily by trade receivables growth (from Rs.7,874.17 million to Rs.13,749.57 million).

The equity share capital jump from Rs.63.91 million (FY2025) to Rs.575.21 million (FY2026) reflects bonus share issuances ahead of the IPO. Current borrowings nearly doubled from Rs.3,819.74 million to Rs.7,158.68 million in one year, driven by working capital facility drawdowns to fund the growing receivables cycle.

Operating cash flow turned sharply negative in FY2026 at Rs.1,190.48 million outflow, after being positive Rs.603.39 million in FY2025 and Rs.1,708.08 million in FY2024. The swing to negative OCF in FY2026 is primarily attributable to a Rs.3,569.64 million increase in trade receivables during the year (as EPC project scale expanded), partially offset by a Rs.1,667.94 million increase in trade payables.

This negative OCF was bridged through financing activities (Rs.2,132.62 million inflow, largely from new short-term borrowings), explaining the current borrowings surge. The planned debt repayment from IPO proceeds will partially offset this working capital-driven debt accumulation.

How Does It Compare to Peers?

The RHP names five listed industry peers: Apar Industries Limited, Polycab India Limited, KEI Industries Limited, Dynamic Cables Limited, and Universal Cables Limited. These are primarily cable and conductor manufacturers, ranging from mid-cap to large-cap. Peer P/E ratios are computed based on June 19, 2026 NSE closing prices versus FY2026 Diluted EPS.

Metric (FY2026)	Laser Power	Apar Ind.	Polycab	KEI Ind.	Dynamic Cables
Revenue (Rs. Mn)	23,261	2,29,021	2,88,838	1,17,478	11,978
EPS Diluted (Rs.)	13.18	242.81	176.95	96.02	17.42
P/E Ratio	TBD	63.06x	56.98x	58.64x	21.05x
RoNW %	20.90%	18.11%	22.25%	13.78%	18.47%
NAV (Rs. per share)	63.06	1,342.70	797.79	697.17	94.36
Face Value (Rs.)	5	10	10	2	10

At Rs.5 face value, LPIL's EPS of Rs.13.18 compares to Dynamic Cables at Rs.17.42 on a Rs.10 face value (implying a rough face-value adjusted Rs.6.71 EPS for Dynamic Cables, putting LPIL's EPS ahead). LPIL's RoNW of 20.90% is competitive, exceeding Apar Industries (18.11%) and Dynamic Cables (18.47%), while being broadly in line with Polycab (22.25%).

LPIL is most directly comparable in size to Dynamic Cables (revenue Rs.11,978 million vs LPIL's Rs.23,261 million), though Dynamic Cables trades at 21.05x P/E reflecting its comparable but smaller scale. The large-cap peers (Apar, Polycab, KEI) trade at 57 to 63x P/E multiples, reflecting their scale premium.

The eventual Price Band for LPIL, once disclosed, should be assessed relative to Dynamic Cables' P/E as the most scale-comparable benchmark, while recognising that LPIL's EPC segment and government-heavy customer mix represent different business model exposures.

Key Risks

l Operating cash flow turned sharply negative in FY2026 (Rs.1,190.48 million outflow) after two years of positive OCF: the company generated positive operating cash flows of Rs.1,708.08 million (FY2024) and Rs.603.39 million (FY2025) before reversing to a Rs.1,190.48 million outflow in FY2026. This reversal was driven by a Rs.3,569.64 million surge in trade receivables as EPC project scale grew. The gap was bridged through current borrowings (which nearly doubled to Rs.7,158.68 million). Positive OCF return depends on improving debtor collection cycles from government and DISCOM clients.

l 196-day debtor days and 138-day NWC cycle reflect structural dependency on slow-paying government customers: trade receivables of Rs.13,749.57 million represent nearly 196 days of annual revenue outstanding. The RHP explicitly attributes this to the longer credit cycles of state and central government organisations which are the company's primary customers. This structural cash flow mismatch between project execution and payment receipt is inherent to the business model and cannot be fully resolved by management action alone.

l Net Debt nearly doubled in one year to Rs.8,013.59 million (Debt/Equity of 1.10x), and IPO proceeds will only partially reduce this: current borrowings grew from Rs.3,819.74 million to Rs.7,158.68 million in FY2026 as receivables expanded. The Rs.490 Crore debt repayment from IPO proceeds will meaningfully reduce total borrowings, but given the working capital-intensive nature of the business and the growing order book (Rs.3,243 Crore), borrowings are likely to remain elevated as scale grows.

l Top 10 customers account for 72.14% of FY2026 revenue with no long-term contracts with most: the top single customer contributed 24.82% (Rs.5,773.59 million) of FY2026 revenue, with the top 10 at 72.14% (Rs.16,779.30 million). The RHP discloses that the company does not have long-term agreements with most of its major customers, meaning order flow depends on repeated tender wins. Any loss of a key customer, reduction in tenders won, or deterioration in relationship could materially affect revenue.

l Revenue declined 9.50% in FY2026 from FY2025's peak: total revenue fell from Rs.25,703.97 million to Rs.23,261.04 million, as EPC revenue moderated from Rs.7,133.49 million to Rs.6,350.65 million and manufacturing revenue also fell. While underlying margins improved, the revenue contraction in the most recent year is a relevant datapoint for investors assessing current trading momentum.

l Complex corporate history through recent demerger scheme introduces financial comparability limitations: FY2024 financials are prepared on a Combined basis (incorporating entities pre-demerger), while FY2025 and FY2026 are Consolidated financials. This structural discontinuity, arising from the NCLT-sanctioned scheme effective from early 2025, limits the comparability of multi-year trend analysis. Non-controlling interests in FY2024 and FY2025 (Rs.1,669 and Rs.1,700 million respectively) were eliminated in FY2026 following the demerger.

l All three manufacturing units concentrated in West Bengal, with EPC projects spread across multiple states: while geographic diversification of EPC projects provides some resilience, the entire manufacturing base is in a single state. Social, political, or infrastructure disruptions in West Bengal would simultaneously impair all manufacturing operations.

l Raw material price volatility in aluminium, copper, XLPE and PVC compound directly impacts cost structure: cost of materials consumed is the largest expense line, and primary raw material prices (aluminium and copper in particular) are globally traded commodities subject to significant volatility. Tender-based contracts may limit the ability to pass through cost increases on a timely basis.

l OFS sellers have near-zero WACA and will realise very large returns: Deepak Goel (WACA Rs.0.01), Rakhi Goel (WACA Rs.0.10), and Devesh Goel (WACA Nil) are together selling Rs.200 Crore of shares. While this is common in legacy businesses, it means promoters are realising returns of hundreds of times their acquisition cost at the eventual Issue Price.

l Preference shares outstanding and redeemable: the company has issued redeemable preference shares pursuant to a scheme of arrangement, which creates future cash outflow obligations for redemption and preference dividends. These ongoing obligations are part of the financing structure that the company maintains alongside its equity capital.

Positives to Note

l EBITDA margin consistently expanded from 8.93% to 12.96% across all three years: the improvement from sub-9% to approaching 13% EBITDA margins over two years reflects genuine operating leverage and improving business mix, including the scale-up of higher-margin specialty products and the expansion of EPC services. This trend is consistent and present across all three fiscal years.

l PAT grew nearly fourfold from Rs.404.09 million (FY2024) to Rs.1,515.91 million (FY2026): the compounding of revenue growth and margin expansion has produced exceptional profit trajectory, and RoE has improved from 10.41% to 23.32% over the same period, demonstrating improving capital efficiency as the business matures.

l Growing order book of Rs.3,243 Crore (Rs.32,434 million) provides 1.4x revenue visibility: the order book grew 49.3% from FY2024 to FY2026, providing meaningful forward revenue coverage and reducing near-term order intake uncertainty. The mix of EPC contracts in the order book supports the continued diversification of revenue beyond pure manufacturing.

l RDSO approval and Indian Railways registered supplier status creates durable, differentiated revenue stream: qualification as a registered supplier to Indian Railways, a multi-year and technically demanding approval process, is a genuine competitive moat within the power cable and conductor market and provides recurring business from one of India's largest and most capex-active infrastructure entities.

l Regulation 6(1) main board listing confirms multi-year profitable track record: LPIL qualifies under the standard profitability-based main board eligibility route, confirming a sustained earnings history that meets SEBI's standard criteria, unlike companies that must use alternative eligibility routes.

l TS Conductor Corp stranding partnership enables manufacture of advanced next-generation transmission conductors in India: this partnership provides access to proprietary carbon fibre composite core transmission technology, enabling LPIL to manufacture conductors that are lighter, stronger, and capable of higher capacity transmission than conventional ACSR conductors. As India's grid modernisation accelerates, demand for advanced conductors is expected to grow.

l Strong sectoral tailwinds from India's cable and conductor market, expected to grow at 11 to 13% CAGR to FY2030: the industry CRISIL Report projects the wires and cables market to reach Rs.2,350 to Rs.2,550 billion by FY2030 from Rs.1,408 billion in FY2025, driven by grid expansion, rural electrification, smart grid investments, and export demand. LPIL is well-positioned in East India to benefit from these demand trends.

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