Company Overview

Chamunda Electricals Limited is an India-based company specializing in the operation and maintenance of electrical substations up to 66 KV, testing and commissioning of electrical substations up to 220 KV, and solar power generation. Originally incorporated as "Chamunda Electrical Private Limited" on June 25, 2013, it converted to a Public Limited Company and was renamed "Chamunda Electrical Limited" on August 21, 2024.

The company has established itself as a niche service provider in the power sector, possessing deep expertise in electrical substations and renewable energy solutions. It excels in Extra High Voltage (EHV) class equipment, undertaking complex erection, testing, and commissioning projects for substations. Beyond initial setup, Chamunda Electricals is proficient in substation operation and maintenance (O&M). The company is supported by a team of over 600 engineers, supervisors, and support staff, adept at handling intricate projects with high precision.

Core Business Segments

Operation and Maintenance Services

Chamunda Electricals focuses on the Operation & Maintenance of electrical substations (up to 66 KV). This segment has seen substantial growth, with the O&M portfolio expanding from 62 substations in FY22 to 130 in FY25, a testament to the company's success in competitive bidding processes. This expansion highlights their capability to secure long-term contracts and foster enduring client relationships within the power industry.

Testing and Commissioning Services

The company offers comprehensive testing and commissioning services for electrical infrastructure, including electrical substations up to 220 KV. Their service portfolio is backed by specialized equipment such as a Polarity Meter Tester, Single Phase Relay Kit, Primary Injection Kit Up to 200 Amp., Routine Test Kit, Knee Point, and AC High-voltage Kit, showcasing their technical capabilities and specialized inventory.

Solar Power Generation

Chamunda Electricals operates a 1.5 MW solar park in Gujarat. This facility, located in Village-Bhatib, Taluka-Dhanera, District-Banaskantha, Gujarat, operates under a 25-year Power Purchase Agreement (PPA) with UGVCL, ensuring stable, long-term revenue streams from renewable energy generation.

EHV Equipment Erection

The Erection of Extra High Voltage (EHV) Class Equipment (up to 220 KV) is another significant service area. The company's proven expertise in installing and commissioning high-voltage electrical equipment has been crucial in securing complex projects and building technical credibility within the power sector.

Financial Performance

Key Financial Metrics

- Market Capitalisation: ₹47.70 Crore (as of May 08, 2025)

- Current PE Ratio: 19.35

- Current PB Ratio: 1.80

- FY25 (Annualized) Revenue: ₹24.39 Cr.

- FY25 (Annualized) PAT: ₹3.75 Cr.

- ROE (Return on Equity): 25.71 %

- ROA (Return on Assets): 15.56 %

- EBITDA Margin: 26.95 %

Revenue and Profitability Growth

The company has demonstrated a consistent increase in revenue from operations over recent years:

- FY22: ₹11.23 crore

- FY23: ₹13.94 crore

- FY24: ₹19.95 crore

Profitability margins have also shown significant improvement:

- PAT Margins:

- FY22: -4.57 %

- FY23: 2.24 %

- FY24: 12.21 %

- 9M-FY25: 15.40 %

- RoCE Margins:

_ FY22: -5.49 %

_ FY23: 12.04 %

_ FY24: 36.82 %

_ 9M-FY25: 30.62 %

This upward trend in profitability margins, particularly from FY24 onwards, indicates enhanced operational efficiency and improved project execution.

Recent Corporate Developments

Initial Public Offering (IPO)

Chamunda Electricals successfully launched a SME IPO comprising 29,19,000 equity shares of face value ₹10, aggregating up to ₹14.60 Crores. The issue price was ₹50 per share. The IPO offered a listing gain of 40.00%, listing at ₹70.00 against the issue price of ₹50.00.

Order Book and Future Prospects

The company maintains a robust order book. As of June 2025, Chamunda Electricals reported an order book of ₹6,436.7 lacs. Recent developments include receiving a ₹65 lakh electrical work order for an NWR project from LCC Engineering Pvt as of June 2025, indicating sustained business momentum. Further expansions include a 4 MW solar expansion and achieving NABL certification by December 2025.

Financial Health and Capital Structure

Chamunda Electricals demonstrates strong financial health with a minimal debt burden, being largely debt-free. The company has a commendable track record of Return on Equity (ROE) of 26.2% over 3 years, signifying efficient utilization of shareholder funds and robust profitability.

However, the company faces some working capital challenges, with debtor days increasing from 54.6 to 76.8 days and working capital days rising from 59.7 to 104 days. These require management attention to optimize cash flow cycles.

Industry Position and Peer Comparison

Key peers for Chamunda Electrical Ltd include larger infrastructure companies such as Larsen & Toubro Ltd, Rail Vikas Nigam Ltd, IRB Infrastructure Developers Ltd, NBCC (India) Ltd, K E C International Ltd, Kalpataru Projects International Ltd, and Afcons Infrastructure Ltd.

Despite operating within a specialized niche of the power sector, focusing on substation services and renewable energy generation, Chamunda Electricals is well-positioned within India's expanding power infrastructure landscape. The company's specialization in EHV equipment and substation services is particularly relevant as India continues to invest heavily in grid modernization and renewable energy integration.