Powerica IPO Review: Powerica Ltd IPO has received Subscribe rating for a long-term investment from brokerage firm Geojit.

Powerica was founded in 1984. It is an integrated power solutions provider  focused on diesel generator sets (DG sets) for primary and standby power.

Powerica IPO Price Band

Powerica IPO price band: Rs 375 to Rs 395

Geojit said that Powerica's strong technical depth and integrated operations drive quality and cost efficiency, supported by credible OEM partnerships. DG demand remains steady on power deficits and infrastructure growth, while renewables offer policy-led higher-margin diversification.

At upper price band of Rs 395, Powerica is eyeing a valuation of Rs 5,000 crore.

Powerica IPO is a combination of a fresh issue and an OFS. The fresh issue is worth Rs 700 crore. Under the OFS, promoters are selling shares worth Rs 400 crore.

Powerica's Rs 1,100 crore IPO subscription will end on Friday (March 27).

Geojit noted that Powerica has plans for debt repayment of Rs 525 crore from the fresh issue.

At the upper price band of Rs 395, Powerica is valued on adjusted P/E of an 28x for FY25 EPS and 19x for FY26E EPS annualised.

Powerica Financials

Powerica's topline grew by 5.6 per cent CAGR, reaching Rs 2,653 crore in FY25 from FY23. The growth was driven by healthy orders.

Powerica's margins, however, contracted by 190 bps from FY23 to 12.7 per cent in FY25. The margin of DG sets segment surged by over 8 per cent during the same period due to rising input costs.

Powerica's PAT (profit after tax) increased strongly at a 28.6 per cent CAGR to touch Rs 177cr in FY25 from Rs 106 cr in FY23.