Johnsoncab Electricals Limitedbusiness model

Tap any area to jump to its detail.

Is it a good business, and why? We read the Red Herring Prospectus through the seven domains of John Mullins' framework: the market, the industry, the company's edge and the team behind it. Every rating follows a stated rule, with the evidence shown.

−10−50+5+10

Each domain has its own score; there is no overall score and no buy or sell verdict. Based on the filing dated 29 Oct 2026. This is not investment advice.

The Johnsoncab Electricals Limited IPO page Source filing

Macro-market

Is the overall market big, growing and supported by trends?

Market domain · macro level

The filing states global growth is projected at 3.0% in 2026 and 3.4% in 2027, with India's GDP moderating to 6.6% in FY27.

How it was scored: +8: 11 favourable, 1 neutral and 1 unfavourable among 13 statements and outside facts.

Outside facts: 3 facts found about its market and industry that the filing does not give.

Evidence (10 from the filing, 3 independent)

What the company says

+Global growth is projected to be 3.0 percent in 2026 and 3.4 percent in 2027.p.188
−Global headline inflation is expected to increase from 4.1 percent in 2025 to 4.7 percent in 2026.p.188
+India's macroeconomic outlook seemed relatively favorable at the start of 2026 with inflation moderated to 2.1%.p.191
+India's GDP growth accelerated to approximately 7.6–7.7% in FY26 before moderating to 6.6% in FY27.p.192
0India's wires and cables market size was valued at USD 9.32 billion in 2024.p.196
+The India wires and cables market is projected to grow from USD 10.01 billion in 2025 to USD 17.08 billion by 2032.p.196
+The IMF has revised its FY2026-27 estimate upward to 6.5% citing the reduction of incremental US tariffs on Indian goods.p.192
+Total energy investment worldwide is expected to exceed $3 trillion in 2025 for the first time.p.197
+India's solar cable requirement alone is set to run into several million kilometers over the current decade due to the government's target of 500 GW of non-fossil energy capacity by 2030.p.198
+The global Paper Insulated Copper Conductor (PICC) market is projected to reach $10.61 billion by 2025 with a Compound Annual Growth Rate (CAGR) of 13.01% from 2025 to 2033.p.202

What credible outside sources say

Found independently, about India
+FDI equity inflows in India's manufacturing sector increased by 69% from Rs. 8,37,191 crore (US$ 97.7 billion) during 2004-14 to Rs. 14,14,742 crore (US$ 165.1 billion) during 2014-24.
“The government reports indicate a 69% increase in FDI equity inflows in the manufacturing sector from Rs. 8,37,191 crore (US$ 97.7 billion) during 2004-14 to Rs. 14,14,742 crore (US$ 165.1 billion) during 2014-24.”
IBEF · Primary source · checked 2026-10-31
Found independently, about India
+India has 133 unicorn startups as of October 2026, with eight new entrants in 2026.
“India has 133 unicorn startups as of October 2026, with eight new entrants in 2026, marking a 25% increase over the same period last year.”
IBEF · Primary source · checked 2026-10-31
Found independently, about India
+Indian exports are expected to reach US$ 1 trillion by 2030.
“According to Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles Mr. Piyush Goyal, Indian exports are expected to reach US$ 1 trillion by 2030.”
IBEF · Primary source · checked 2026-10-31

Micro-market

Is the target customer segment attractive, and does the product beat the alternatives?

Market domain · micro level

The filing states revenue is heavily concentrated in Unit-I, specific industries, and a few key customers, creating dependence risks.

How it was scored: +7: 6 favourable, 0 neutral and 1 unfavourable among 7 statements and outside facts.

Outside facts: No facts about its market and industry have been found from outside sources yet.

What could go wrong

The company's business is dependent on a few customers, and the loss of, or a significant reduction in award of contracts by such customers could adversely affect its business.

Evidence (7 from the filing, 0 independent)

What the company says

+Revenue from Unit-I accounts for 81.47% of total revenue, while Unit-II and Depot contribute significantly less.p.47
+Over 25% of the company's revenue is derived from the Railway and Renewable Energy industries.p.43
+The company generates major portion of its sales from operations in Gujarat, Rajasthan, West Bengal, and Uttar Pradesh.p.38 p.39
+The company caters to both private sector customers and government entities.p.206
−The company's business is dependent on a few customers, and the loss of, or a significant reduction in award of contracts by such customers could adversely affect its business.p.35
+The company's customer base is spread across multiple states in India, with the western region (Gujarat, Maharashtra, Rajasthan) constituting the primary market.p.209
+Revenue is sourced from both public sector units and private entities, with a significant portion coming from private entities.p.234

Industry

Is the industry structurally attractive: suppliers, buyers, rivals, new entrants and substitutes?

Industry domain · macro level

−2

The filing states the industry is heavily dependent on cable market performance and faces risks from transportation disruptions, quality requirements, and raw material fluctuations.

How it was scored: -2: 1 favourable, 8 neutral and 4 unfavourable among 13 statements and outside facts.

Outside facts: 3 facts found about its market and industry that the filing does not give.

Compared with: Prime Cable Industries, JD CABLES LIMITED, Susan Electricals India, listed companies the offer document names as its peers. Classified as Industrial Products › Cables - Electricals, 412 listed companies. The model picked Insurance, which is not where those peers sit, so treat the comparison with care.

Worked out from its numbers

Listed companies in its industry group: 412
Operating margin across the industry group: 9.2% middle

What could go wrong

The company's business and financial condition are heavily dependent on the performance of the cables market.
Disruptions in transportation providers, such as adverse weather or strikes, could delay raw material receipt and product delivery.
The company is subject to strict quality requirements, and any product defect issues or failure by suppliers to comply with quality standards may lead to cancellation of orders, recalls, or potential

Evidence (10 from the filing, 3 independent)

What the company says

0Johnsoncab Electricals Limited is engaged in the business of manufacturing low voltage (up to 1.1 kV) wires and cables deployed across power infrastructure, renewable energy integration, railways, and allied industrial applications.p.206
−The company's business and financial condition are heavily dependent on the performance of the cables market.p.48
0The issuer operates in the manufacturing and industrial sectors in India.p.251
0The company's revenue is primarily derived from power cables, housing wires, and industrial single core cables.p.216
0The issuer primarily uses third-party logistics providers to receive raw materials and deliver finished products.p.244
−A downturn in the industry increases the possibility that the company may be unable to generate cash sufficient to pay principal, interest, or other amounts due in respect of its indebtedness.p.40
0The company relies on third-party transportation providers for the procurement of raw materials and delivery of finished products.p.45
−Disruptions in transportation providers, such as adverse weather or strikes, could delay raw material receipt and product delivery.p.46
0The company is exposed to fluctuations in the performance of the cables market due to factors such as government policies, economic conditions, and raw material availability.p.48
−The company is subject to strict quality requirements, and any product defect issues or failure by suppliers to comply with quality standards may lead to cancellation of orders, recalls, or potential product liability claims.p.52

What credible outside sources say

Found independently, about Industrial Products
0Apple's India-based vendors exported Rs. 22,094 crore worth of components to China in FY26.
“Apple's India-based vendors exporting Rs. 22,094 crore (US$ 2.50 billion) worth of components to China in FY26, expected to reach Rs. 30,931 crore (US$ 3.50 billion) by the end of the year.”
IBEF · Primary source · checked 2026-10-31
Found independently, about Industrial Products
0India's automotive industry is worth more than US$ 222 billion and accounts for 8% of the country's total export.
“India's automotive industry is worth more than US$ 222 billion, contributes 8% of the country's total export”
IBEF · Primary source · checked 2026-10-31
Found independently, about Industrial Products
+India's fasteners market size reached Rs. 1,008.00 billion (US$ 11.20 billion) in 2025 and is projected to reach Rs. 1,530.00 billion (US$ 17.00 billion) by 2034.
“India's fasteners market size reached Rs. 1,008.00 billion (US$ 11.20 billion) in 2025 and is projected to reach Rs. 1,530.00 billion (US$ 17.00 billion) by 2034, registering a CAGR of 4.67% during 2026-2034.”
IBEF · Primary source · checked 2026-10-31

Competitive advantage

Can the company keep an edge, and does the business model make economic sense?

Industry domain · micro level

−1

The filing states capacity utilization rose to 87.50% in FY2025-26 while computed figures show a debt-to-equity ratio of 2.54x and negative cash conversion of -147% of profit.

How it was scored: -1: 2 favourable, 8 neutral and 0 unfavourable among 10 statements and outside facts; measured figures count double: 1 healthy, 2 to watch, 2 weak (Debt to equity, Cash conversion).

Worked out from its numbers

Operating margin: 11.6%
Net profit margin: 6.4%
Return on equity: 42.7%
Debt to equity: 2.54x
Cash conversion: -147% of profit

What could go wrong

The total estimated cost of the proposed plant and machinery is ₹8,50,12,747.
The company's capacity utilization increased from 73.19% in Fiscal 2024 to 79.62% in Fiscal 2026.

Evidence (10 from the filing, 0 independent)

What the company says

0The total estimated costs for the proposed expansion of Unit-II are ₹1,836.69 Lakhs.p.135
0The total estimated cost for the proposed expansion of Unit-II is ₹1,836.69 Lakhs.p.135
0The offer includes 1,65,000 shares of HVLS FAN-MRT 7A/G3 (24ft) PMSM Advanced Technology.p.142
0The HVLS FAN-MRT 7A/G3 (24ft) PMSM Advanced Technology is priced at 8,25,000 per share.p.142
0The total estimated cost of the proposed plant and machinery is ₹8,50,12,747.p.148
+The company's capacity utilization increased from 73.19% in Fiscal 2024 to 79.62% in Fiscal 2026.p.177 p.178
0As of Fiscal 2026, the combined annual installed manufacturing capacity of both units is 79,950 KMS.p.206
0Manufacturing Unit-I was established in 2012 and has an installed capacity of 70,000 KMS as of March 31, 2026.p.221 p.222
0The facility has a built-up area of 6,928.68 square meters and an installed capacity of 9,950 KMS as of March 31, 2026.p.224
+The company's total capacity utilization for wires in FY2025-26 was 87.50%.p.230

Team: aspirations

What do the promoters want from this IPO: to sell down or to grow the company?

Team domain

The filing states the promoters intend to use proceeds for debt repayment, capital expenditure, working capital, acquisitions, and general corporate purposes.

How it was scored: +5: 6 favourable, 3 neutral and 1 unfavourable among 10 statements and outside facts.

Worked out from its numbers

Promoter holding before the IPO: 98.6%

Evidence (10 from the filing, 0 independent)

What the company says

0The company is issuing 182.5 million shares for an offer-for-sale of 18.3% of total issued share capital.p.185
+The Chandreshkumar Patel Family Trust is an entity in which the promoter holds 20% or more of the equity share capital.p.291
+The Anjal Patel Family Trust is an entity in which the promoter holds 20% or more of the equity share capital.p.291
+The Chandreshkumar Shankerlal Patel HUF is an entity in which the promoter holds 20% or more of the equity share capital.p.291
−The company intends to use the proceeds for debt repayment.p.183
+The company intends to use the proceeds for capital expenditure.p.183
+The company intends to use the proceeds for working capital.p.183
+The company intends to use the proceeds for acquisitions.p.183
0The company intends to use the proceeds for general corporate purposes.p.183
0Proceeds from the issuance will be used for debt repayment.p.186

Team: execution

Can the team deliver what the industry demands?

Team domain

The filing states the team includes newly appointed directors and an executive director with a 2026 remuneration of Rs. 24.00 Lakhs.

How it was scored: +9: 9 favourable, 1 neutral and 0 unfavourable among 10 statements and outside facts.

Evidence (10 from the filing, 0 independent)

What the company says

+Mr. Chandreshkumar Shankerlal Patel was re-designated as Managing Director on 06/04/2026.p.278
+Mr. Anjal Chandreshkumar Patel was re-designated as Whole Time Director on 06/04/2026.p.278
+Mr. Shail Pradipkumar Shah was appointed as Additional Director on 06/04/2026.p.278
+Mr. Yax patel was appointed as Additional Director on 06/04/2026.p.278
+Mr. Shankar lal was appointed as Additional Director on 06/04/2026.p.278
+Mr. Shail Pradipkumar Shah was regularized as a Non-Executive Independent Director on 10/04/2026.p.278
+Mr. Yax patel was regularized as a Non-Executive Independent Director on 10/04/2026.p.278
0Mr. Chandreshkumar Shankerlal Patel has been associated with the company since April 6, 2026.p.273
+Mr. Anjal Chandreshkumar Patel was appointed as a Whole Time Director for a period of 5 years starting from April 06, 2026.p.275
+Mr. Chandreshkumar Shankerlal Patel is listed as an executive director with a remuneration of Rs. 24.00 Lakhs for the financial year ended March 31, 2026.p.275

Team: connections

Does the team have the ties across the value chain: customers, suppliers, partners?

Team domain

The filing states the company holds leases with related parties and has past related party transactions with promoters and directors.

How it was scored: +3: 2 favourable, 4 neutral and 0 unfavourable among 6 statements and outside facts.

What could go wrong

The lease agreements for the registered office and manufacturing units are held by related parties.
The company has entered into related party transactions with its Promoters and Directors in the past.

Evidence (6 from the filing, 0 independent)

What the company says

0The lease agreements for the registered office and manufacturing units are held by related parties.p.37
0The company has entered into related party transactions with its Promoters and Directors in the past.p.50
+The company has subsidiaries involved in the distribution of housing wires and industrial single core cables.p.216
0Mr. Shankar lal serves as a Member of the Stakeholder's Relationship Committee.p.280
0Mr. Anjal Chandreshkumar Patel serves as a Member of the Stakeholder's Relationship Committee.p.280
+The company holds vendor registration with Western Railway, UGVCL (Unit-I and Unit-II), and Gujarat State Road Transport Corporation (GSRTC).p.239

How to read this

What the ratings mean, where the evidence comes from, and what this page is not.

Three kinds of evidence, always labelled

What the company says comes from its own offer document, with the page it came from. It is a claim, not a finding. Worked out from its numbers is arithmetic on the filing's own financial statements and issue terms. Independent sources are outside publications we trust, with the name, tier and date.

How a rating is set

Every piece of evidence points one way: favourable (+1), neutral (0) or unfavourable (-1). The score is the average of those, times ten, so it runs from -10 to +10.
It is an average, not a total: twelve favourable facts score the same as four. Only their balance counts.
Figures worked out from the filing's numbers count double: healthy is +1, to watch is -0.5, weak is -1. A figure and its peer comparison count once.
The company's own statements and the outside facts about its market and industry are each read by the model, which only says which way a sentence points; every sentence stays visible.
“Not enough evidence” appears only when nothing at all was found for the domain.

Which outside sources count

Facts about a company's market and industry come from a fixed list: regulators and exchanges (SEBI, NSE, BSE, MCA, RBI), government and industry bodies, credit-rating agencies, and established business press. Blogs, forums, social media and Wikipedia are excluded. Each is kept with the exact sentence it rests on. We do not check what the offer document itself says against the web: that is SEBI's job.

About the framework

The seven domains come from John Mullins' The New Business Road Test, written for new ventures. We adapt each domain to what an IPO document can show. The author has not reviewed or endorsed this analysis. Read it with the filing, not instead of it.