Powerica Limited shares ended Oct. 19 at ₹571.05 on BSE Limited (BSE), a 44.6% premium to their IPO price, even as costs squeezed profitability in its generator business.
The stock had finished Oct. 16 at ₹584.85, making the Oct. 19 decline 2.4%; Powerica sold its IPO shares at ₹395. Mint reported that Nuvama Institutional Equities began coverage with a Buy rating and a ₹700 price target. At the latest close, that target stood 22.6% above the market price, compared with 19.7% using the Oct. 16 close in Mint's report.
Powerica supplies generator sets and develops wind projects. It said on its Aug. 10 earnings call that orders for Cummins-powered generators stood at about ₹1,700 crore on July 31, with data centers accounting for ₹900 crore. Management put data center orders at ₹1,100 crore by Aug. 7. Customer site schedules will help determine deliveries within the company's estimated 12-to-18-month execution period.
The larger order book has not prevented pressure on profitability. For the quarter ended June 30, Powerica recorded ₹780.1 crore in consolidated revenue, up 26.7% from a year earlier. The generator segment's earnings before interest, taxes, depreciation and amortization margin fell to 5.6% from 7.1%.
Powerica Chairman and Managing Director Bharat Oberoi said higher input costs took time to reach customers through pricing. Management said some contracts booked before the increases kept their original prices, leaving Powerica to absorb more of the cost, while newer orders carry revised prices. Executives expect the generator margin to improve starting in the third quarter of fiscal 2027 as those prices take effect.
The company's wind portfolio offers another possible source of growth, though much of that capacity is not operating. Its Aug. 7 release put operating capacity at 330.85 megawatts (MW); a separate 638.35 MW figure included projects under construction and in the pipeline. In its Aug. 7 release, Powerica said it was still awaiting a letter of award for a 50 MW project.
Mint reported that Nuvama also cited wind expansion and retrofit emission-control devices in its growth case. Powerica's prospectus names Nuvama Wealth Management Limited among the book-running lead managers for its IPO. The next company updates will show whether revised generator prices lift margins and whether the pending wind award is secured.
