Tempsens Instruments (India) IPO

Strengths · 8

• 01The company is the largest maker of contact and non-contact temperature sensors in India by revenue as per the F&S Report, with about 10.5% share of that segment in FY2026.
• 02Sales and profit have grown for three years. Total income went from Rs 278.04 crore in FY2024 to Rs 382.47 crore in FY2025 and Rs 455.86 crore in FY2026.
• 03Profit after tax grew from Rs 40.92 crore in FY2024 to Rs 62.56 crore in FY2025 and Rs 71.07 crore in FY2026.
• 04Margins are healthy for a manufacturing company. PAT margin was 15.59% and EBITDA was Rs 113.17 crore in FY2026.
• 05The balance sheet is strong. Net worth was Rs 496.89 crore against borrowing of only Rs 77.95 crore as on 31 March 2026.
• 06The customer base is wide, with more than 1,000 different customers served between April 2023 and March 2026, so it does not depend on a few buyers.
• 07Exports go to more than 80 countries including the UAE, Germany and Poland, which spreads the risk beyond the Indian market.
• 08The company has a long record of over 35 years, having started in 1990, and makes three related product lines instead of one.

Risks · 8

• 01This issue is priced high on earnings. At the upper band of Rs 300 the post issue P/E is about 35.38 times on an EPS of Rs 8.48.
• 02Return on net worth is modest at 13.55%, which is low compared to the P/E being asked.
• 03Profit grew slower than sales in FY2026. Income rose 19% but profit after tax rose only 14%, so margin came down slightly.
• 04Borrowing has more than doubled in two years, from Rs 30.13 crore in FY2024 to Rs 77.95 crore in FY2026.
• 05Sales depend on industrial capital spending. Temperature sensors and heaters are bought when factories are being built or upgraded, so a slowdown in industry directly reduces orders.
• 06Exports to more than 80 countries bring currency risk and exposure to trade rules and tariffs in those markets.
• 07Only Rs 18.13 crore of the money goes into new capacity, while Rs 55.00 crore is for repaying borrowings, so a large part is not adding to the earning capacity.
• 08Promoter holding will come down from 80.51% to 65.67% after the issue.

Tempsens Instruments (India) Limited was started in 1990. It is a thermal engineering and specialised cable company. It designs and makes temperature sensing products, electrical heating products and special purpose cables, mostly made to order as per what the customer needs.

Its temperature sensing range includes thermocouples, resistance temperature detectors, infrared pyrometers, online thermal imagers and furnace monitoring cameras. Its electrical heating range includes immersion, process, skid, cartridge, band, tubular and flexible heaters. Its cable range includes low voltage control and power cables, instrumentation cables, thermocouple and RTD cables and nickel alloy conductors.

As per the F&S Report the company is the largest maker of contact and non-contact temperature sensors in India by revenue, with a market share of about 10.5% in the temperature sensor segment in the year ended 31 March 2026. Between 1 April 2023 and 31 March 2026 it served more than 1,000 different customers, and it exports to over 80 countries including the United Arab Emirates, Germany and Poland.

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