Johnsoncab Electricals Ltd IPO

Consistent growth in revenue from operations demonstrating business scalability.

Continued investment in manufacturing infrastructure to support future growth.

Ability to serve both government and private sector customers.

Product Innovation Supported by Intellectual Property (Patent).

Established Vendor Approvals and Eligibility to Participate in Government Tenders.

The company has not entered into long-term agreements with most of its raw material suppliers. If the company is unable to procure adequate quantities of raw materials or at competitive prices, its business, results of operations and financial condition may be adversely affected. Any increase or fluctuation in prices of the companys raw materials, may have a material adverse effect on its business, results of operations and financial condition.

The companys 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.

The Companys manufacturing activities are employee intensive and are subject to labour laws and any strike, work stoppage or increased wage demand by its employees or any other kind of disputes with the companys employees or high attrition could adversely affect its business, financial condition, results of operations and cash flows.

The Company does not own the land on which premises of its registered office and manufacturing units are situated and both the land are on long term lease arrangement. The companys depot is also operated from lease premised. Any termination of such lease/license thereof and attachment by land owner could adversely affect its operations.

The company generates its major portion of sales from the company operations in certain geographical regions especially Gujarat, Rajasthan, West Bengal and Uttar Pradesh. Any adverse developments affecting its operations in these regions could have an adverse impact on the companys revenue and results of operations.

As of August 31, 2026, its debt-to-equity ratio is high at 1.94. The company has availed a substantial debt amounting to Rs. 7756.89 Lakhs as of August 31, 2026. Any inability to service this debt or adhere to the covenants stipulated in its financing agreements could materially and adversely impact the companys business operations, financial condition, and overall performance.

The companys business is subject to seasonality in the industries in which its customers operates, which may contribute to fluctuations in the companys results of operations and financial condition.

The company may incur penalties or liabilities for non-compliance or delay in compliance with certain provisions of GST Act, Income tax and other applicable laws in the last three years.

The Company has, in the past, experienced delays in the filing of certain forms with the Registrar of Companies (ROC) as required under the Companies Act, 2013.

While the company supply to varied end-user industries, over 25 % of its revenues are from Railway and Renewable Energy industry during the preceding three Fiscals. Any downturn in this industries and the other industries in which the companys customers operates, may create an adverse impact on its revenue from operations, cash flows and financial condition