{
  "id": 6519744,
  "title": "Can Karamtara Engineering IPO deliver long-term growth for high-risk investors?",
  "url": "https://urgent.news/2026/09/10/can-karamtara-engineering-ipo-deliver-long-term-growth-for-high-risk",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-10T01:13:31.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/ipos/fpos/can-karamtara-engineering-ipo-deliver-long-term-growth-for-high-risk-investors/articleshow/133989531.cms"
  },
  "original_language": "en",
  "account": "Karamtara Engineering, a solar and transmission equipment manufacturer founded in 1996, is set to raise ₹875 crore through an IPO to tackle debt and bolster its balance sheet. The promoter's shareholding will shrink from 92% to 82% post-IPO. Despite robust revenue growth, operating margin and net profit over the past three years, the company confronts regulatory risks stemming from its heavy reliance on the renewable energy sector. The looming increase in steel and metal prices could also dent its margins.\n\nManufacturing solar mounting structures, solar trackers, transmission line towers, wind energy structures, and other steel products, Karamtara Engineering commands the largest capacity in solar mounting structures and tracker components. Operating across 13 facilities in India and Italy, the company is poised for expansion into battery energy storage systems and prefabricated engineered buildings. However, nearly 41% of its FY26 revenue comes from exports, making it vulnerable to currency fluctuations, trade barriers, tariffs, and geopolitical tensions.\n\nOver the past three years, the company's revenue from operations surged 33.3% year-on-year to ₹4,312 crore, while its operating margin (EBITDA) improved to 11.6% from 10.8%. However, the net profit rose to ₹228.7 crore from ₹102.6 crore. Return on equity nudged up marginally to 20.8% from 20.5%, though it still lags behind the 21%-42% range seen in other companies. The debt increased to ₹881.3 crore in FY26 from ₹463.1 crore in FY24, although the debt-to-equity ratio improved to 0.8 from 0.9.\n\nSeeking a price-earnings (P/E) multiple of 35.7 on an IPO basis, Karamtara Engineering's valuation lags behind its peers, such as Premier Energies, Waaree Energies, and Inox Wind, which trade at P/Es of 11, 19, and 30, respectively. Investors should view this IPO as a potential opportunity for long-term growth, given the company's impressive financial performance and diversification efforts, but only if they possess a higher risk tolerance.",
  "summary": "Karamtara Engineering plans a ₹875 crore IPO to repay debt and fund expansion. The company has shown healthy financial growth over recent years. However, it faces risks from renewable energy sector regulations and metal prices. Its integrated manufacturing capacity positions it well in the solar sector. The IPO appears suitable for investors with higher risk tolerance.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}