Tempsens Instruments (India) — RHP Analysis
Filed with SEBI on
Tempsens Instruments (India) Limited designs and manufactures customized temperature sensing solutions, electrical heating solutions, and specialised cables across industrial applications, serving over 3,800 customers in sectors including metal, petrochemicals, power, defence, glass, and automotive.
Central question
Can Tempsens sustain its margin expansion and export momentum while scaling capacity in specialized cables and electrical heating and optimizing its extended working capital cycle?
Tempsens demonstrates a defensible domestic market position as the largest temperature sensor manufacturer in India with backward-integrated production facilities and extensive global quality certifications. Primary capital is targeted at expanding heating and cable capacities alongside debt reduction, though performance remains exposed to industrial capex cyclicality and working capital elongation.
Offer structure
| Total issue size | Not disclosed |
| Fresh issue | ₹95 Cr |
| Offer for sale | — |
| Price band | Not yet announced |
Capex for electrical heating and specialized cables (₹18.134 cr), debt repayment/pre-payment (₹55.00 cr), and general corporate purposes
Fiscal 2027 to Fiscal 2028 deployment for capex and debt pre-payment/repayment
What it sells
Who pays: Over 3,800 industrial enterprise customers across metal, petrochemicals, power, glass, cement, automotive, and defence sectors.. What it sells: Customized temperature sensing solutions (thermocouples, RTDs, pyrometers), electrical heating solutions, and specialised cables.. How it delivers: Manufactured across 15 production facilities globally (10 in Udaipur, India) supported by backward-integrated alloy melting and drawing operations and international quality accreditations.. How it earns: Earns revenue through turnkey Projects/OEM contract execution (67.55% of FY26 revenue) and recurring aftermarket MRO/replacement sales (32.45% of FY26 revenue), alongside export deliveries across more than 80 countries..
Restated financials
| Period | Revenue | EBITDA | PAT | EPS | ROE |
|---|---|---|---|---|---|
| Fiscal 2024 | ₹274.81 Cr | ₹61.13 Cr | ₹40.92 Cr | 8.06 | |
| Fiscal 2025 | ₹378.53 Cr | ₹97.32 Cr | ₹62.56 Cr | 7.51 | |
| Fiscal 2026 | ₹444.88 Cr | ₹113.17 Cr | ₹71.07 Cr | 8.33 |
Business model
Tempsens Instruments (India) Limited designs and manufactures customized temperature sensing solutions, electrical heating solutions, and specialised cables across industrial applications, serving over 3,800 customers in sectors including metal, petrochemicals, power, defence, glass, and automotive.
- The company operates across three core verticals: temperature sensing solutions, electrical heating solutions, and specialised cables. (3 core verticals, Fiscal 2026) — Defines the core product architecture and scope of industrial solutions offered. [1]
- Revenue from operations is divided between Projects/OEM (67.55% in Fiscal 2026) and recurring MRO/replacement sales (32.45% in Fiscal 2026). (67.55% Projects/OEM, 32.45% MRO, Fiscal 2026) — Demonstrates customer procurement structure combining large, long-cycle project installations with regular aftermarket replacement revenue. [1]
- In Fiscal 2026, temperature sensing solutions contributed 44.59%, specialised cables contributed 34.71%, and electrical heating solutions contributed 20.70% of revenue from operations (excluding other operating revenue). (44.59% sensing, 34.71% cables, 20.70% heating, Fiscal 2026) — Details the product-level revenue contribution across operating segments. [1]
- The company serves over 3,800 customers with low customer concentration, as the top 10 customers contributed 18.59% of revenue from operations in Fiscal 2026. (18.59% top 10 concentration, Fiscal 2026) — Reflects broad customer adoption and low reliance on any single client. [1]
Open questions: What is the average order execution timeframe and contractual pricing mechanism for large turnkey Projects/OEM contracts?
Growth thesis
Growth is driven by planned capacity expansion in Unit IV (specialised cables) and Unit VI (electrical heating) funded via IPO proceeds, ongoing R&D in mid-voltage and nuclear heating applications, expanding global distribution beyond 80 export countries, and industry tailwinds toward domestic indigenisation.
- Company is expanding electrical heating capacity by 7.56% (from 317,400 to 341,400 units) and specialized cables by 11.76% (from 10,200 km to 11,400 km) utilizing ₹181.34 million in IPO net proceeds. (+7.56% heating capacity, +11.76% cable capacity, Fiscal 2027-2028 deployment) — Directly links primary capital deployment to quantified manufacturing capacity increases across high-growth verticals. [1]
- Export revenue expanded at a CAGR of 46.49% between Fiscal 2024 and Fiscal 2026, reaching ₹1,258.21 million across more than 80 countries. (46.49% CAGR (₹1,258.21 million in FY26), Fiscal 2024 - Fiscal 2026) — Demonstrates rapid geographic diversification and export market penetration. [1]
- Ongoing product development includes slot RTDs, mid-voltage heaters, pressuriser heaters for nuclear reactors, and next-generation IR pyrometers. (Current pipeline) — Highlights expansion into higher-margin, mission-critical thermal applications with high entry barriers. [1]
Open questions: What is the projected commercialization timeline and target addressable market for the nuclear pressuriser heaters and mid-voltage heaters under development?
Offer & ownership
The IPO consists of a Fresh Issue of up to ₹950.00 million and an Offer for Sale of up to 18,500,000 Equity Shares of face value of ₹4 each by selling shareholders. Pre-offer equity capital stands at 80,666,025 shares, with Promoters holding 46.13%.
- The Offer comprises a Fresh Issue aggregating up to ₹950.00 million and an Offer for Sale of up to 18,500,000 Equity Shares. (₹950.00 million Fresh Issue, 18,500,000 OFS shares, As of RHP date) — Defines the capital structure changes and primary capital infusion vs. secondary liquidity. [1]
- Selling shareholders in the OFS are Amit Talesara (up to 4,815,543 shares), Nirmal Kumar Pande (up to 4,814,537 shares), Chandra Prakash Talesara (up to 3,787,720 shares), Ankit Talesara (up to 3,787,720 shares), and Puneet Talesara (up to 1,294,480 shares). (18,500,000 shares total OFS, As of RHP date) — Identifies the individual selling shareholders and their respective secondary divestment volumes. [1]
- Promoters hold 37,208,195 Equity Shares, representing 46.13% of the pre-offer paid-up equity share capital. (46.13% (37,208,195 shares), As of RHP date) — Establishes baseline promoter ownership prior to dilution from the Fresh Issue and secondary share sale. [1]
- Net proceeds of the Fresh Issue are earmarked for ₹181.34 million in capital expenditure, ₹550.00 million for debt pre-payment/repayment, and the remainder for general corporate purposes. (₹181.34 million capex; ₹550.00 million debt reduction, Fiscal 2027-2028 deployment) — Quantifies the planned allocation of fresh issue capital across capacity expansion and debt deleveraging. [1]
Open questions: What will be the final post-issue promoter shareholding percentage following conclusion of the Book Building Process?
Financials
Revenue from operations increased from ₹2,748.10 million in Fiscal 2024 to ₹4,448.78 million in Fiscal 2026 (CAGR of 27.23%), while PAT rose from ₹409.19 million to ₹710.67 million (CAGR of 31.79%). EBITDA margin expanded to 24.83% in Fiscal 2026.
- Restated revenue from operations grew to ₹4,448.78 million in Fiscal 2026 from ₹3,785.26 million in Fiscal 2025 and ₹2,748.10 million in Fiscal 2024. (₹4,448.78 million, Fiscal 2026) — Reflects robust top-line expansion supported by inorganic integration and organic growth. [1]
- Restated Profit for the Year increased to ₹710.67 million in Fiscal 2026 from ₹625.55 million in Fiscal 2025 and ₹409.19 million in Fiscal 2024. (₹710.67 million, Fiscal 2026) — Demonstrates sustained net earnings growth across the three-year reporting period. [1]
- EBITDA reached ₹1,131.73 million in Fiscal 2026, representing an EBITDA margin of 24.83% on total income of ₹4,558.55 million. (₹1,131.73 million EBITDA (24.83% margin), Fiscal 2026) — Underlines strong operating profitability and cash generation potential before working capital adjustments. [1]
- Net cash generated from operating activities stood at ₹420.22 million in Fiscal 2026, compared to ₹541.50 million in Fiscal 2025 and ₹370.89 million in Fiscal 2024. (₹420.22 million OCF, Fiscal 2026) — Demonstrates operating cash generation while reflecting higher working capital absorption in Fiscal 2026. [1]
- Net Working Capital Days expanded to 210 days in Fiscal 2026 from 193 days in Fiscal 2025 and 152 days in Fiscal 2024. (210 days, Fiscal 2026) — Working capital elongation reflects inventory build-up for customized heating/cable solutions and acquired entity cycles. [1]
- As of March 31, 2026, the company's total assets were ₹6,610.52 million. (₹6,610.52 million, As of March 31, 2026) — Discloses the total asset base of the company at the end of Fiscal 2026. [1]
- As of March 31, 2025, the company's total assets were ₹5,512.82 million. (₹5,512.82 million, As of March 31, 2025) — Discloses the total asset base of the company at the end of Fiscal 2025. [1]
- As of March 31, 2024, the company's total assets were ₹2,711.44 million. (₹2,711.44 million, As of March 31, 2024) — Discloses the total asset base of the company at the end of Fiscal 2024. [1]
- As of March 31, 2026, the company's total equity was ₹5,254.75 million. (₹5,254.75 million, As of March 31, 2026) — Reflects the net worth and total equity base of the company as of March 31, 2026. [1]
- As of March 31, 2025, the company's total equity was ₹4,416.79 million. (₹4,416.79 million, As of March 31, 2025) — Reflects the net worth and total equity base of the company as of March 31, 2025. [1]
- As of March 31, 2024, the company's total equity was ₹2,048.05 million. (₹2,048.05 million, As of March 31, 2024) — Reflects the net worth and total equity base of the company as of March 31, 2024. [1]
- As of March 31, 2026, total borrowings stood at ₹779.48 million, comprising ₹76.03 million of non-current borrowings and ₹703.45 million of current borrowings. (₹779.48 million, As of March 31, 2026) — Reflects the overall debt and borrowing burden of the company as of March 31, 2026. [1] [2]
Open questions: What specific inventory reduction initiatives will management implement to optimize the 210-day working capital cycle?
Moat & defensibility
The company's competitive defensibility is supported by market leadership in temperature sensors in India, backward integration across conductors and heating elements, and extensive international quality accreditations, alongside high switching barriers in critical industrial applications.
- Tempsens is the largest manufacturer of contact and non-contact temperature sensors in India by revenue with an approximate 10.5% market share in Fiscal 2026. (10.5% market share, Fiscal 2026) — Demonstrates domestic market leadership and scale advantages in core sensor categories. [1]
- Tempsens operates a backward-integrated manufacturing facility for thermocouples, cables, and electrical heaters located at Udaipur, India. (Fiscal 2026) — Internalisation of critical manufacturing steps such as alloy melting and drawing shortens lead times, enhances quality control, and reduces reliance on third-party raw material suppliers. [1]
- The company holds extensive international certifications including ASME U Stamp, R Stamp, CE, ATEX, IECEx, UL, BIS, and NABL ISO/IEC 17025:2017 accreditation. (Fiscal 2026) — Stringent qualification requirements and certifications create substantial barriers to entry in critical process industries. [1]
Open questions: What proportion of the company's sensor and cable sales are tied to multi-year sole-supplier framework contracts versus competitive spot bidding?
Governance
The Board comprises eight directors, including two executive directors, two non-executive directors, and four independent directors (with one woman independent director). Executive remuneration and related-party leases and sales with promoter-controlled entities are disclosed.
- The Board of Directors consists of eight directors, including four independent directors and two executive directors. (8 Directors (4 Independent), As of RHP date) — Meets regulatory board composition standards under the Companies Act and SEBI Listing Regulations. [1]
- Chairman Virendra Prakash Rathi and Managing Director Vinay Rathi were each paid remuneration of ₹13.19 million for Fiscal 2026. (₹13.19 million each, Fiscal 2026) — Discloses key promoter and executive managerial compensation levels. [1] [2]
- The company engages in transactions with promoter-related entities including Pyrotech Electronics Private Limited, Matplat Private Limited, and Pyrotech Technologies Private Limited for raw material sourcing and sales. (Fiscal 2024 - Fiscal 2026) — Highlights recurring related-party business linkages within promoter group entities. [1]
Open questions: Are there any plans to eliminate overlapping operational transactions with promoter group entities like Pyrotech Electronics post-listing?
Risks
Key business risks include high reliance on Projects/OEM contracts (67.55% in FY26), end-user exposure to metal and petrochemical sectors (41.13% in FY26), geographic concentration of 10 out of 15 manufacturing units in Udaipur, and pending regulatory and arbitral disputes.
- High dependence on Projects/OEM orders (67.55% of FY26 revenue) exposes the company to customer capex cutbacks, long sales cycles, and order deferrals. (67.55% of FY26 revenue, Fiscal 2026) — Represents primary operating risk regarding revenue predictability and project execution cycles. [1]
- Metal and petrochemical industries accounted for 41.13% of revenue from operations in Fiscal 2026 (19.68% metal, 21.45% petrochemical). (41.13% combined contribution, Fiscal 2026) — Exposes performance to sectoral cyclicality and capital investment slowdowns in core industrial sectors. [1]
- Manufacturing is heavily concentrated in Udaipur, Rajasthan, where 10 of the group's 15 manufacturing units are located. (10 of 15 units in Udaipur, As of RHP date) — Creates single-region vulnerability to localized infrastructure failures, utility outages, or regional disruptions. [1]
- Subsidiary Tempsens Measurement faces a commercial arbitration claim seeking interim relief of ₹110.41 million from Theia New Consultancy LLP. (₹110.41 million claim, Pending as of RHP date) — Represents a quantified material dispute regarding alleged breach of non-solicitation covenants. [1]
Open questions: What financial provision or legal assessment has been made regarding the ₹110.41 million arbitral claim against Tempsens Measurement?
Valuation framework
The document is a Red Herring Prospectus where the Price Band, Floor Price, Cap Price, and final issue size remain undetermined ([●]). Fiscal 2026 Diluted EPS is ₹8.33, Net Asset Value per share is ₹61.66, and the Weighted Average Cost of Acquisition from primary issuance in the last 18 months is ₹55.63 per share.
- The Price Band, Floor Price, and Cap Price are not disclosed in the Red Herring Prospectus. ([●], As of RHP date) — Precludes the calculation of listing valuation multiples such as P/E, EV/EBITDA, or market capitalisation at this stage. [1]
- Restated Diluted EPS was ₹8.33 for Fiscal 2026, ₹7.51 for Fiscal 2025, and ₹8.06 for Fiscal 2024. (₹8.33 Diluted EPS (FY26), Fiscal 2026) — Provides the historical per-share earnings baseline for trailing P/E determination once the Cap Price is announced. [1]
- Net Asset Value per Equity Share as of March 31, 2026 is ₹61.66. (₹61.66 per share, March 31, 2026) — Establishes the book value per share benchmark prior to IPO capital infusion. [1]
- The weighted average cost of acquisition (WACA) for primary issuance in the last 18 months was ₹55.63 per equity share. (₹55.63 per share, Last 18 months preceding RHP) — Provides an acquisition price reference point from the Marathon Amalgamation Scheme (adjusted for sub-division and bonus issue). [1]
Open questions: What will be the final Price Band and Cap Price announced by the company and BRLMs prior to the Offer opening?
Litigation
- Tempsens Measurement Private Limited: Commercial arbitration petition filed by Theia New Consultancy LLP alleging breach of non-solicitation and confidentiality covenants under an MOU (₹11.04 Cr)
What the filing leaves open
- Financial figures for Fiscal 2026 include the full-year impact of the Marathon Heater amalgamation (effective April 1, 2024) and acquisitions of Tempsens Instruments GmbH, Tempsens Polska, and Tempsens Measurement, making period-on-period financial figures not directly comparable.
- Price Band, Floor Price, Cap Price, issue share counts, and post-issue market valuation metrics remain undetermined in this Red Herring Prospectus.
- No forward financial guidance (revenue, EBITDA, PAT, margin, or EPS targets) was explicitly provided by the issuer.