Laser Power & Infra
IPO Size: Rs. 742 cr
- Fresh Issue of Rs. 542 cr, for repaying Rs. 490 cr of Rs. 936 cr gross debt
- Offer for Sale (OFS) of Rs. 200 cr by promoter (100% to shrink to 75%)
Price band: Rs. 203-214 per share
M cap: Rs. 3,004 cr, implying 25% dilution
IPO Date: Thu 9th Jul to Mon 13th Jul 2026, Listing Thu 16th Jul 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Power Cable Manufacturer & EPC Company
Laser Power & Infra is a 38 year old Kolkata based manufacturer of power cables and conductors, with an installed capacity of 85,448 MTPA, across 3 plants in West Bengal. Company also undertakes EPC (engineering, procurement and construction) projects in power distribution, with Rs. 2,300 cr topline, split as 72:27 between the two business segments. It mainly supplies cables to railways, Odisha state power discoms and small private EPC contractors, for rural electrification, with 85% of Rs. 2,300 cr revenue generated from East India.
Flat Volumes, despite Capacity Rise
Since FY24, installed capacity increased by 38% to 85,448 MT. Yet actual production volume has remained stagnant at ~53,000 MT for past 3 years, shrinking capacity utilization to 62% in FY26 from 86% in FY24.
Between FY24 to FY26, revenue increased at 15% CAGR or Rs. 580 cr, led by EPC segment’s revenue tripling (rising by Rs. 415 cr). Thus, manufacturing segment has hardly contributed to growth, which is surprising as domestic power sector is booming.
Financials not Comforting
FY26 revenue declined 9% YoY to Rs. 2,326 cr, with both segments - manufacturing and EPC witnessing a YoY fall in topline of 9% and 11% respectively. Despite drop in topline, gross margin remained flat YoY at Rs. 670 cr, as share of higher margin high-tension (HT) cables, increased from 8% in FY24 to 12% in FY25 to 26% in FY26, and mix of low-tension cables (LT) reduced. However, contraction in EPC revenue in FY26 is not explained.
EBITDA increased by 18.5% YoY to Rs. 323 cr in FY26, which is quite a jump, just before the IPO. EBITDA margin expanded to 13.7%, and PAT stood at Rs. 152 cr, leading to 6.8% net margin and an EPS of Rs. 13.2.
Tax Benefits supports Financials
Income tax rate has been nil for past 3 years (i.e. FY24, FY25, FY26) due to acquisition of a company with brought-forward losses, under NCLT in FY23. While income tax liability is expected to be nil till FY27, 25% rate will be applicable from FY28E onwards, shrinking net margin from next year. Also, RoE, 23% in FY26, will contract to 13-14% FY28E onwards, as net worth expands and full income tax kick-in.
Monitor Post-Listing
Company’s order book stood at Rs. 3,243 cr as of 31.3.26, comprises manufacturing order book of Rs. 1,669 cr, nearly doubling YoY. While this provides visibility, execution remains monitorable, as track record since FY24 was not encouraging, wherein manufacturing revenue rose only by 5% and volumes remained flat.
On the balance sheet front, debtors outstanding at Rs. 1,375 cr or 5.3 months of revenue is seen very high, up from 3.9 months outstanding YoY. Even gross debt, rated A+ from Acuite, increased by Rs.108 cr in 78 days, from Rs. 828 cr as of 31.3.26 to Rs. 936 cr as of 17.6.26, increasing net debt to equity ratio over 1 time.
Fully Priced
M cap of Rs. 3,004 cr and enterprise value of Rs. 3,300 cr lead to a PE multiple of 13x on FY27E EPS of about Rs. 16. However, FY28E EPS is estimated at about Rs. 15, leading to a one-year forward PE multiple of 14x, which makes it fully-priced, for mid-single net margin and 13% RoE.
In Mar 2025, it undertook non-exclusive tie-up with US based TS Conductor Corp for manufacturing high-tension low sag conductors, but no tenders have reported to be won in the past 15 months.
