Tempsens Instruments (India) Ltd

Analyst Notes

[Analyst View] Aamara Capital, 21 Oct 2026

Conflicts across the sources, shown not resolved

Open questions

Business Deep-Dive

Sources: Red Herring Prospectus 14 Aug 2026 (RHP, printed page = PDF page minus 5), Prospectus 24 Aug 2026, Q1 FY27 deck (PPT) and transcript (TR), ICRA letters, company site. All figures restated consolidated, Rs mn, FY = year to 31 March, unless stated. Capacity is certified by R V Parikh, chartered engineer, dated 14 Aug 2026, on a basis of 1 shift, 6 days, 51 weeks. Main-board company with full disclosure, but only one concall and one quarterly result so far.

What the company does

[Fact] RHP p.258, p.263. Heating rose from 3.9% to 20.7% of revenue because Marathon Heater (India) Pvt Ltd, a promoter-group heater maker, was amalgamated with effect from 1 Apr 2024 (NCLT Ahmedabad order 6 Feb 2025; effective 6 Mar 2025) (RHP p.256).

Product by product

Revenue mix, order cycle and cross-sale [Fact]

• Management says the OEM business is "insignificant" today but expects OEM plus new products above 25% of revenue from FY28 (TR).
• Order cycle: heavy-industry order book about 4-4.5 months; OEM visibility 9-12 months; PO-to-PO with OEMs, except one 5-year life-science furnace framework that is excluded from the reported order book until firm orders arrive (TR; PPT p.29). Rupee order book: Not Available.
• Replacement economics: sensor life ranges from "a few hours" (molten-aluminium dips) to 20 years (nuclear) (TR). F&S (company-commissioned): contact sensors replaced every 12-24 months in regulated industries; India sensor replacement market 35-40% of value, growing 8.9% (RHP p.186). MRO orders often come first, then project qualification; the first approval takes 3-5 years (TR).

Market-position claims (Frost & Sullivan, commissioned and paid for by the company)

• Largest manufacturer of contact plus non-contact temperature sensors in India by revenue, about 10.5% share of the Rs 18.8 bn FY26 market (RHP p.257, p.181-184). [Est.] Cross-check: 10.5% x Rs 18.8 bn = Rs 1.97 bn, equal to reported sensing revenue of Rs 1.967 bn, so the share is computed on the company's own consolidated sensing revenue (including exports and overseas subsidiaries) over an India-only pool. India-only share roughly 7-8% [Est.].
• "Only Indian maker" of non-contact sensors (pyrometers, online thermal imagers), 21.3% of the non-contact segment (F&S); "only Indian maker" of fibre-optic temperature sensors and thermal profiling systems (F&S).
• One of the largest electrical-heater makers in India by installed capacity (316,000 units a year at 31 Mar 2026), one of few with low-voltage process-heater capability; medium-voltage heater under R&D (RHP p.248, p.253 PDF).
• Among very few firms globally with backward-integrated thermocouple, cable and heater manufacturing; one of very few Indian holders of the ASME U-Stamp for pressure vessels (RHP p.262).

Plants and capacity (15 manufacturing units: 10 Udaipur, 5 overseas) [Fact] RHP p.282-294

Overseas JV revenue not in the table: PT Tempsens Asia Jaya net revenue Rs 427.18 mn FY26 (432.25 FY25; 388.87 FY24) is equity-accounted and therefore NOT in consolidated revenue (RHP p.270 footnote). Subsidiary FY26: Pyrosens revenue Rs 276.29 mn, PAT Rs 56.01 mn; Tempsens GmbH revenue Rs 76.20 mn (period not clearly stated; [Est.] full-year entity figure), PAT Rs 8.11 mn; Tempsens Gulf PAT Rs 12.44 mn (FY25 -6.50; FY24 -3.57); Tempsens Polska loss Rs 2.32 mn post-acquisition (RHP p.322-324, risk factor 48).

Expansion pipeline (management's "peak revenue potential at full utilisation, neither forecast nor guidance") [Fact] PPT p.28-30; TR

• Plus about 25,000 sq ft extra for custom furnaces (timeline not finalised). Land bought in Q1 FY27 for about Rs 25 cr from internal accruals for cable expansion (the financials file records the same land as about Rs 250 mn). Management: plants run about 80% max, so full utilisation of the Rs 500 cr by "FY29 end / FY30".
• [Est.] Rs 500 cr of incremental potential on an existing Rs 445 cr base implies more than 2x asset turn relative to present 41-58% utilisation; treat as aspiration. Management also said the Rs 500 cr is additive to the Rs 445 cr base.
• IPO use of funds: Rs 181.34 mn capex (heating plus cables), Rs 550 mn debt repayment (already applied by Sep 2026), balance general corporate purposes (not above 25% of gross) (RHP p.129; TR).

Certifications, accreditations and IP [Fact] RHP p.267, 276, 299

Customers (downstream) [Fact] RHP p.258-270

• Base: 2,600+ customers (Apr 2024) to 3,800+ (Mar 2026), about 21% a year [Est.]; ICRA cited about 3,500 in Nov 2025. Top 10 customers 18.59% (FY26), 23.68% (FY25), 24.74% (FY24); top-20 average tenure 10 years (range 1-23), top-30 8 years. No customer is named in the RHP.
• Largest disclosed relationship: an unnamed major Indian PSU (engineering/electrical equipment) since 2004 (sensors), cables 2012, pyrometers 2018, furnace-monitoring camera 2022, hopper heaters via Marathon: Rs 158.13 mn FY26 = 3.55% (FY25 3.11%; FY24 4.53%). Name Not Available (full RHP text searched).
• Named counterparties on the call: Victura Technologies (commercial-vehicle exhaust-heater JV), a life-sciences OEM (5-year private-label furnace deal), fuel-cell OEMs (field trials advanced, "executing at scale"), CVD-equipment OEMs, Micro-Epsilon (technology partner). Names of the fuel-cell and life-science customers: Not Available.
• Management: no end market above 22%; 75-90% of revenue from "critical" qualification-heavy applications, 10-20% from commoditised industries (TR).

• Export CAGR FY24-26 46.49%. Q1 FY27 exports Rs 398 mn, about 34% of product revenue (Q1 FY26 about 25%), helped by Germany and Poland consolidation. F&S says exports were "nearly 37.4%" of FY26 revenue (different base); the statutory split is 28.52%.
• Channel: direct 97.23% (Rs 4,288.78 mn), distributors 2.77% (Rs 122.26 mn), 28 distributors; 29 India sales engineers (RHP p.295) versus F&S 45 company-wide; 46 trade shows in FY25. Oct-Nov 2026 events: WETEX Dubai 20-22 Oct, glasstec Duesseldorf 20-23 Oct, ADIPEC Abu Dhabi 2-5 Nov (company site).
• Competition from US and European suppliers is avoided on small orders; new customers start with MRO (TR).

Group structure and strategic partners [Fact] RHP p.317-334

• Marathon Heater amalgamation (appointed date Apr 2024) brought Pyrosens (infrared; Micro-Epsilon holds 49.99% since Jun 2025, company 50.01%) and Accurate Optoelectronics (100% of Pyrosens). Micro-Epsilon is both minority partner and EDGE pyrometer co-developer.
• Tempsens GmbH (Germany) and Polska: 50.00% bought for EUR 763,500 paid 19 Dec 2025 to promoter Vinay Rathi (and Basant Rathi); valuation EUR 1,527k for 100% (Flick Gocke Schaumburg, 26 Nov 2025). Control via a voting-rights agreement from 16 Jan 2026. Related-party acquisition: see Tab 7.
• Tempsens Measurement & Control (ex-Techin Gauges, Udaipur): 51% from Mar 2026, Rs 75 mn commitment, founders Kuldeep Jain and Nitin Jain hold 24.5% each.
• Mexico entity registered but not yet a subsidiary (capital infusion pending; MoU for 60%). Acquisition targets under evaluation, with no definitive agreements: Saudi Arabia, USA, Brazil.
• Real estate: Udaipur plots are RIICO 99-year leaseholds (remaining 54-98 years on the plots listed); the Vadodara registered office is rented from a promoter-group member on an 11-month term. Risk factor 22 flags that much of the footprint is leased (RHP p.302-303). Energy: 1.5 MW rooftop solar at the Udaipur units for captive use (RHP p.300).
• The company website "Media" page is placeholder (lorem ipsum) text; no press articles were retrieved from it.

Segment Analysis

The accounts report a single operating segment ("Industrial Products"). The three verticals below are disclosed as revenue splits only; segment-level EBITDA or profit is Not Available (Prospectus, Q1 results and deck searched). Management says sensors and heaters earn a margin "slightly more than cables" and that margins are "broadly similar" across new segments (TR). [Fact] RHP p.258, p.263; PPT p.21; TR.

Revenue by vertical, three years and latest quarter

Sources: FY shares RHP p.258; FY26 growth RHP MD&A (printed p.490); Q1 PPT p.21. Revenue from operations Q1 FY27 Rs 1,187.07 mn includes other operating revenue, so the three verticals sum to slightly less. FY25 vertical revenue is not printed separately; derived from FY26 values and the printed growth rates: sensing about Rs 1,744.6 mn, heating about Rs 630.3 mn, cables about Rs 1,378.7 mn, total about Rs 3,753.6 mn, which reproduces the printed FY25 shares of 46.48 / 16.79 / 36.73% [Est.].

Where FY26 growth came from [Est.]

Heating, the smallest vertical until FY25, supplied 43% of FY26 vertical growth, and the heating base in FY25 already contained Marathon for the full year, so the +44.89% is organic relative to the merger. In Q1 FY27 sensing contributed about Rs 178 mn of the roughly Rs 295 mn increase, heating about Rs 149 mn, and cables took Rs 32 mn off [Est.].

Segment narratives

Growth versus market [Est.]

Domestic versus export (Q1 FY27) [Fact] PPT p.21

• Organic growth is not disclosed. Q1 FY27 includes Germany, Poland and Tempsens Measurement, all acquired after Q1 FY26, so organic revenue growth is below 33.4% [Est.].
• Fastest grower: heating (new plant, large oil and gas dispatches). Segment under pressure: cables in Q1 FY27 (export timing); defence and nuclear end-use fell from 9.69% to 6.95% of FY26 revenue and metal from 24.38% to 19.68%.
• Tempsens Measurement & Control (gauges) had no revenue in the FY26 numbers (acquired 30 Mar 2026) and adds cost with a low revenue base in FY27 (TR).

Financials: P&L

Income statement, restated consolidated (Rs mn)

[Fact] FY23: R25 OCR p.11; FY24-26: Prospectus p.81, PPT p.24 (identical). Dividends: FY25 Rs 20.70 per share pre-split (Rs 6.07 mn); FY26 Rs 0.33 per share (Rs 26.56 mn); none in FY24 (Prospectus p.65, p.367). Gross profit is not reported; gross margin below is our computation.

Growth and margins [Est.] (formulas on the Fact rows above)

Longer history (Screener, Rs crore, consolidated, rounded) [Fact]

Screener compounded sales growth 5Y 26%, 3Y 23%, TTM 18%; profit 5Y 31%, 3Y 28%, TTM 10%. Screener EPS vintage differs from the Prospectus (FY23 6.23 vs 7.33) because of share-count restatement for the Marathon merger shares. FY22 and FY21 are in no filing retrieved; Screener only. FY23 standalone (Indian GAAP, pre-Ind AS, OCR, low confidence on digits): revenue from operations about Rs 2,401.9 mn; borrowings long-term Rs 100.4 mn, short-term Rs 164.1 mn.

Quarterly (consolidated, Rs mn) [Fact] Q1 results p.5; PPT p.23; Screener

Eight quarters of history are Not Available: the company has filed only one listed-company quarterly result (Q1 FY27). Q1 FY26 and Q4 FY26 comparatives below are unaudited and were not reviewed by the auditor (note 4). Screener shows Q1 FY26 / Q4 FY26 / Q1 FY27 sales of Rs 89 / 133 / 119 cr, operating profit 21 / 29 / 24 cr, OPM 23% / 22% / 20% and net profit 14 / 21 / 16 cr.

• QoQ: revenue -11.0% [Est.] (1,187.07 / 1,333.34 - 1); Q4 FY26 PAT was 29.7% of FY26 PAT [Est.], i.e. strongly back-ended. Net profit fell about 23% QoQ (Screener Rs 21 cr to Rs 16 cr), partly seasonal.
• Material margin: gross margin 47.4% in Q1 FY27 versus 49.3% in Q1 FY26 (a high base), 46.0% FY26, 46.9% FY25 [Est.] (669.03 less 44.29 = 624.74, 52.6% of revenue). Net material cost Q1 FY26 50.7%.
• Employee cost +45% to Rs 204.5 mn (about 140 bp drag, 17.2% of revenue versus 15.8%), including the ESOP charge (Rs 0.57 cr noted) and newly acquired units with low revenue base; headcount added ahead of projects (TR p.5-6). Management bridge: about 200 bp from the gross margin high base and about 100 bp from employee cost.

Standalone versus consolidated, FY26 (Rs mn) [Fact]

FY25 standalone turnover Rs 3,674.2 mn, net worth Rs 4,185.0 mn (MGT-7, Companies Act basis). Key subsidiary FY26: Pyrosens revenue Rs 276.29 mn / PAT Rs 56.01 mn (49.99% held by Micro-Epsilon, so NCI); Accurate Opto revenue Rs 57.12 mn / PAT Rs 5.83 mn; Tempsens Gulf PAT Rs 12.44 mn (FY25 loss 6.50); Tempsens GmbH post-acquisition revenue Rs 76.20 mn / PAT Rs 8.11 mn; Polska revenue Rs 17.13 mn / loss Rs 2.32 mn; Tempsens Measurement net worth Rs 70.65 mn, no revenue yet (Prospectus p.326-332).

One-time and low-quality items in FY26 PAT [Est.]

Management FY27 outlook [Fact] TR p.5-6, 15, 16

Revenue growth "in line with blended last-3-year growth" (analyst read about 25%); margins "broadly similar to last year" with recovery from H2 FY27; employee-cost investment ahead of projects; profit growth "in line with revenue growth by end of this year" (Aryan Rathi). Finance cost to fall from Q2 after the Rs 550 mn repayment. Not formal guidance. Earnings-quality check against cash is in Tab 6: CFO was 59% of PAT in FY26.

Financials: Balance Sheet, Cash Flow & Ratios

Rs mn unless stated, restated consolidated, 31 March. FY23 from the DRHP-era restatement (R25, scanned, OCR; some digits noisy, totals tie). FY24-26 from Prospectus p.80-82 and PPT p.25-27. Labels: [Fact] read from a filing; [Est.] our arithmetic.

Balance sheet

• Equity jump FY24 to FY25 (+Rs 2,368.7 mn) is mostly the Marathon merger: net worth rose Rs 2,500.14 mn, of which Rs 1,901.99 mn came from the amalgamation (securities premium Rs 1,647.34 mn + share capital Rs 10.84 mn + retained Rs 243.80 mn) (Prospectus risk factor 9, PDF p.33). Goodwill Rs 1,061.28 mn and intangibles Rs 453.67 mn were recognised on a promoter-group merger. At FY26 goodwill plus intangibles of Rs 1,546.86 mn are 23.4% of total assets and 29.4% of total equity; tangible equity is about Rs 3,707.9 mn [Est.].
• Borrowings: working-capital loans were 82.55% of the total at FY26 (Rs 643.49 mn), 81.78% FY25, 65.64% FY24 (Prospectus p.36-37). Debt jumped Rs 417 mn in FY25 (short-term +Rs 419.10 mn per cash-flow statement) while Rs 583.57 mn went into bank deposits (p.82): the company borrowed short to hold deposits.
• Net debt (borrowings less cash, other bank balances and current investments; excluding non-current deposits) [Est.]: FY23 Rs 251.07 mn; FY24 Rs 164.28 mn; FY25 net cash Rs 38.18 mn; FY26 net debt Rs 172.76 mn. Non-current "other financial assets" of Rs 539.30 mn (FY26) are likely long-dated bank deposits (not itemised in the summary); if counted, FY26 is net cash of about Rs 366 mn.
• Share capital Rs 322.66 mn = 80,666,025 shares x Rs 4 after the 25:1 split (30 Apr 2025) and 10:1 bonus (30 May 2025) (Prospectus p.97, p.104, p.367).
• Contingent liabilities Rs 17.39 mn (0.35% of net worth Rs 4,968.89 mn): indirect tax Rs 10.90 mn plus land claim Rs 6.49 mn (Prospectus p.83, p.56).
• Asset turnover (revenue / total assets) [Est.]: FY24 1.01x; FY25 0.69x; FY26 0.67x. Company-reported fixed-asset turnover 2.77 / 2.81 / 3.07 (FY24 / FY25 / FY26).

Cash flow versus PAT

FY23 R25 OCR p.12 (totals tie: 241.39 - 250.61 - 3.27 = -12.49, matching the reported change); FY24-26 Prospectus p.82, PPT p.26-27.

• 4-year cumulative CFO is 75.8% of cumulative PAT [Est.] (1,574.00 / 2,077.74). FY26 conversion fell to 59% because inventories (+Rs 206.7 mn), receivables (+Rs 141.4 mn) and other assets / liabilities (net Rs 94.9 mn, the plug row above) absorbed about Rs 443 mn net of other liabilities, or about Rs 405 mn after Rs 37.9 mn of payables [Est.]. The earlier "about Rs 500 mn" is the gross figure (other assets Rs 151.8 mn) before other liabilities. FY26 included acquired balance sheets, so part of the build is acquisition-related. Management attributes inventory to "customisation requirements, delays in dispatch clearance" and expansion stocking (Prospectus p.153).
• Screener cash-flow table (Rs cr): CFO FY22 14, FY23 22, FY24 37, FY25 54, FY26 42; CFO / operating profit 57% / 72% / 90% / 82% / 63% on its definition. Screener classifies investing flows differently (FY26 -20 vs filing -26.2).
• Non-cash or low-quality elements of FY26 PAT: JV share Rs 23.11 mn (dividends received Rs 26.52 mn), other income Rs 109.77 mn (15% of PBT), FX gain Rs 34.83 mn, fair-value gain Rs 11.59 mn, ESOP charge Rs 12.88 mn.

Working-capital days

• Company "net working capital days": 152 (FY24), 193 (FY25), 210 (FY26). Trade receivable turnover 6.03 / 5.89 / 5.19x. Bad debts written off Rs 1.23 / 0.74 / 2.98 mn; ECL allowance Rs 2.09 / 2.07 / 2.31 mn, very low against Rs 857 mn of receivables (Prospectus p.50). Contract liabilities (customer advances) Rs 70.42 mn (FY25) to Rs 119.94 mn (FY26) (p.495).
• Inventory Rs 110-120 cr, 65-70% raw material; raw material priced into orders at booking ("we pass through fluctuations") (TR p.13). Inventory days 147 standalone and 170 consolidated in FY26 (Screener, RHP p.263). ICRA flagged working-capital intensity of 29.8% (FY24) and 35.4% (FY25) of operating income.
• The cash conversion cycle lengthened about 58 days in two years (152 to 210). Management cites the long build and collection cycle of heater products (Prospectus p.153).

Returns and leverage [Fact] Prospectus p.152, p.485-486

FY23 ROE [Est.] 332.33 / 1,567.27 = 21.2%. Reported ROE (13.5%) is depressed by Rs 1.5 bn of merger intangibles; ex-intangibles about 20.7%. Interest cover FY26 [Est.] (941.27 + 52.21) / 52.21 = 19.0x. Screener ROCE 36% / 29% / 26% / 23% / 18% (FY22-FY26 on its own basis, includes goodwill); Screener at 21 Oct: ROCE 17.8% (the market file shows 17.15%), ROE 14.4%.

Capex, maintenance versus growth

A maintenance versus growth split is Not Available (not disclosed in the Prospectus summary). Unit expansions: Unit I capacity raised from 720,000 to 1,140,000 nos in Jan 2024; Units V and VI began commercial operations in Apr 2025; land of about Rs 25 cr bought in Q1 FY27 from internal accruals. IPO capex plan: Rs 181.34 mn (see IPO section below).

Debt, facilities, security and rating

Equity dilution and share count

IPO: size, structure and use of proceeds

• Size Rs 6,500 mn: fresh Rs 950 mn (3,166,666 shares; 14.6%) plus OFS Rs 5,550 mn (18,500,000 shares; 85.4%), so the company received 14.6% of money raised. Offer = 25.85% of post-offer capital; employee reservation 50,000 shares (Rs 15 mn) (Prospectus p.1, p.3).
• Selling shareholders: Amit Talesara 4,815,543 (Rs 1,444.66 mn), Puneet Talesara 1,294,480 (Rs 388.34 mn), Chandra Prakash Talesara 3,787,720 (Rs 1,136.32 mn), Ankit Talesara 3,787,720 (Rs 1,136.32 mn; also a director), Nirmal Kumar Pande 4,814,537 (Rs 1,444.36 mn). Promoters Vinay Rathi, V.P. Rathi and P.S. Talesara sold nothing. Weighted average acquisition cost Rs 0.04-0.06 per share (nil for Chandra Prakash) (p.1, p.127).
• Offer expenses Rs 506.52 mn (7.79% of offer; BRLM fees 203.26, legal 87.36, regulatory 103.96); company share Rs 76.85 mn, giving net fresh proceeds Rs 873.15 mn (p.134, p.146).

First formal quarterly utilisation statement is due with Q2 FY27 results (Not Available yet; check BSE filings in Nov 2026). Lower finance cost is expected from Q2 FY27. Land purchase of about Rs 250 mn for cable expansion was paid in Q1 FY27 from internal accruals (PPT p.20).

Key balance-sheet risks [Analyst View]

• Cash conversion and the 210-day cycle, with receivables up 33% YoY to Rs 857.38 mn and inventory up 30% to Rs 1,119.41 mn.
• Goodwill and intangibles of Rs 1,546.86 mn (29.4% of equity) from a related-party merger, plus goodwill on three new acquisitions.
• Short-term working-capital debt at 82.6% of borrowings; interest-rate environment (ICRA site notes another rate hike likely in Dec 2026, see Tab 9).
• Non-current other financial assets of Rs 539.30 mn, likely long-dated deposits but not itemised in the summary [Est.].
• NCI of Rs 280.51 mn (5.3% of equity) and equity-accounted JVs outside revenue.

Management, Promoters & Governance

Primary documents: Prospectus 24 Aug 2026 (PROS, PDF page numbers), Q1 FY27 results (Q1), transcript (TR), board committees page (BC), MGT-7 FY25, Screener, Chittorgarh. Rs mn unless stated. [Fact] read from a filing; [Est.] our arithmetic or inference.

Promoters and promoter group

• Promoters formally identified by board resolution of 25 Mar 2025. No change in control in the last 5 years; no SEBI or exchange disciplinary action against promoters in the last 5 fiscals; none has been a director of a suspended or delisted company (PROS p.352, p.514).
• Promoter group holders: Rathi Family Trust, Amit Talesara, Chandra Prakash Talesara, Puneet Talesara, Sonal Rathi (Vinay's wife), Aryan Rathi (Vinay's son), Tanya Rathi. Ankit Talesara (non-executive director, 8.49% pre-IPO, personal guarantor of bank loans) and Nirmal Kumar Pande (8.49%) are classed as "Other Selling Shareholders" (public), not promoter group (PROS p.1, p.128).
• Group companies linked to related-party transactions: Pyrotech Electronics Pvt Ltd (VPR, Ankit and Pratap are directors), Matplat Pvt Ltd, Pyrotech Technologies Pvt Ltd, plus JVs PT Tempsens Asia Jaya and Tempsens Korea. Group companies and promoter-group entities are empowered by their constitutions to carry on similar business; no non-compete is signed (PROS p.54, p.519; risk 61).
• On 23 Jul 2026, one month before listing, VPR transferred 7,663,275 shares and Vinay 5 shares to the newly formed Rathi Family Trust (now 9.50%, promoter group). VPR's direct holding fell from 25.00% (Aug 2025) to 15.50%. Trust deed, trustees, beneficiaries and whether the trust's shares are locked in: Not Available in the text read (PROS p.120-128).
• Third generation: Aryan Rathi, Lead Global Sales, joined 1 May 2024 (BS Texas A&M, "over two years" experience), paid Rs 10.99 mn in FY26 versus Rs 5.73 mn in FY25 (+92%); nominee director on Tempsens Measurement; fronted the Q1 concall.

Board of Directors (8: 2 executive, 2 non-executive, 4 independent) [Fact] PROS p.342-347; BC

• Independent directors are 4 of 8 (50%), appointed for 5-year terms from 18 Jun 2025, two months before the public conversion; none has history with the company before the IPO process. Sitting fees Rs 30,000 per board meeting and Rs 15,000 per committee; FY26 total about Rs 1.3 mn. Non-executive directors take no fees (PROS p.349).
• Relationships (the PROS table layout is garbled, so this is our reading): VPR is father of Vinay and grandfather of Aryan; Akhil Maheshwari (sister's son) and Hemant Rathi (brother's son) are Vinay's nephews and senior managers; Pratap Singh Talesara is uncle of Ankit Talesara. Three family lines (Rathi, Talesara, extended) sit on the board and in management.
• Committees (BC; PROS p.352-358): Audit: Verdia (Chair), Kabra, Vinay Rathi (the MD is a member; 2 of 3 independent satisfies Reg 18). NRC: Godha (Chair), Verdia, Babel. Stakeholders Relationship: Kabra (Chair), VPR, Vinay. CSR: Vinay (Chair), VPR, Godha. Risk Management: Babel (Chair), Vinay, Verdia. Plus an IPO Committee. Board meeting attendance, FY26 corporate governance report and AGM voting results: Not Available (investor pages searched; FY25 annual report PDF is scanned and was not OCR'd).
• Director litigation: Bhagwat Singh Babel is named in a criminal revision in the Allahabad HC (Jindal Enterprises v Secure Meters Ltd, cheque Rs 1.12 mn, filed 17 Aug 2023), linked to his earlier Secure Meters directorship.

Remuneration of executive promoters [Fact] PROS p.347-349, p.85

[Est.] FY26 combined Rs 26.38 mn = 3.7% of consolidated PAT Rs 710.67 mn. Ceiling of Rs 100 mn combined = 14.1% of FY26 PAT: headroom to rise 3.8x. Standalone FY26 PBT Rs 839.92 mn gives a 1.5% commission of about Rs 12.6 mn each.

Key managerial personnel and senior management [Fact] PROS p.360-362

• Both KMP appointments were made in April 2025, four months before conversion to a public company. Aryan's FY26 pay is 3.9x the CFO's and 15x the CS's [Est.]. Other family employees: Sonal Rathi (wife; Rs 6.46 mn incl. Pyrosens), Sheela Talesara (wife of Pratap; Rs 1.33 mn), consultant Nidhi Toshniwal (VPR's daughter; Rs 0.24 mn) (PROS p.85, p.350). Promoter, senior-management and employee attrition: Not Available.
• ESOP 2025: pool 1,613,320 shares; 339,477 options outstanding at strikes Rs 123 and Rs 245; none vested; ESOP expense Rs 12.88 mn FY26 (PROS p.130-132).

Shareholding trend [Fact] PROS p.123-124, p.128; Screener

2024 columns re-aligned by us from a garbled table (sum 99.98%). Promoters alone 46.13% pre-IPO and 44.38% post-IPO [Est.] (37,208,195 / 83,832,691). Promoter-group post-IPO = (64,947,494 - 9,897,743 sold) / 83,832,691 = 65.65%.

• Latest filed pattern (Sep 2026 quarter per Screener): promoters 65.67%, FIIs 2.66%, DIIs 11.60%, public 20.06%; 96,561 shareholders. Consistent with our 65.65% estimate. The exchange-filed Sep-2026 SHP PDF (names of holders above 1%, pledge columns): Not Available (NSE and BSE APIs return HTTP 403; the company page lists 10 documents but links are not exposed). Last four quarters trend: only the Sep 2026 quarter exists post-listing.
• Pledge / encumbrance: none disclosed. The pre-IPO table shows no locked-in, pledged or non-disposal columns populated; the promoters' contribution is stated "not subject to any pledge"; all promoter shares are in demat (PROS p.120, p.122). Post-listing pledge: Not Available (check SHP Dec 2026). Vinay Rathi's residential plot is mortgaged to SBI and he and Ankit Talesara give personal guarantees: promoter-asset encumbrance, not a share pledge.
• Sell-down at IPO: OFS 18,500,000 shares (Rs 5,550 mn). Promoter-group sellers (Amit 4,815,543; Puneet 1,294,480; Chandra Prakash 3,787,720 = 9,897,743 shares, Rs 2,969 mn); other sellers (Ankit 3,787,720; Nirmal Pande 4,814,537 = 8,602,257 shares, Rs 2,581 mn). The three promoters sold nothing.
• Pre-IPO secondary: WhiteOak Capital India Opportunities Fund bought 2,016,651 shares at Rs 247.94 (Rs 500.01 mn) on 24-26 Dec 2025 from the five sellers (409,169 / 380,302 / 409,060 / 409,060 / 409,060 shares) (PROS p.126, p.335). WhiteOak SHA (24 Dec 2025): information, anti-dilution, ROFO, tag-along, pre-emptive rights; exit / put option if the IPO was not done by a long-stop date; waived for the IPO and terminated automatically on listing (p.335-336). No investor nominee director.
• Bulk and block deals since listing: NSE bulk and block files for 19 Oct 2026 show no TEMPSENS entry ("NO RECORDS" for block). The only deals found (2 and 9 Sep 2026, Moneycontrol) are same-day round trips; full table in Tab 12. Insider / SEBI PIT disclosures by promoters: none seen.

Lock-ins and upcoming supply [Fact] PROS p.120-121; Chittorgarh

• Our recompute of the 25 Feb 2027 unlock: about 54% of equity (24.4% promoters' excess + 29.8% other pre-IPO holders) becomes eligible to trade [Est.], subject to the final lock-in schedule; one input file said about 34%. The RHP lock-in tables were blank placeholders, and the final Prospectus lock-in table (read by the governance file) is the basis.
• Non-promoter holding today about 34.33% (Screener: FII 2.66% + DII 11.60% + public 20.06%; promoters 65.67%). Free float is smaller than 34% because of lock-ins on pre-IPO holders.
• Anchor book: 29 allottees, 6,484,999 shares, Rs 194.55 cr (list with share counts in Tab 12).

Subsidiaries, step-downs and joint ventures [Fact] PROS p.322-339

Joint-control limits: the 50:50 JVs and the 50.00% GmbH holding mean the company cannot unilaterally steer these entities; decisions require majority or unanimous consent (PROS p.33, risk 7). Six subsidiaries and three JVs were reviewed by other auditors in Q1 FY27 (Rs 280.11 mn revenue). Acquisition track record: only one full-year record exists (Marathon, FY25); Gulf swung from loss to Rs 12.44 mn profit; Polska lost Rs 2.32 mn; Korea, GmbH and Polska run at 18-22% utilisation.

Related-party transactions, summary FY24-FY26 [Fact] PROS p.84-87, p.51

FY24 was elevated by Pyrosens, Marathon and Accurate, which became subsidiaries through the merger. All certified "arm's length" by Bansilal Shah & Co. (previous auditor) (PROS p.51).

• Rent: Vinay Rathi HUF Rs 0.36 mn, Sonal Rathi Rs 0.30 mn, Nidhi Toshniwal Rs 0.18 mn a year; registered office from Nidhi Toshniwal; Raipur guest house from Hemant Rathi HUF (senior management) (PROS p.350-351, p.361).
• Promoter-family borrowings: Vinay Rathi borrowed-in Rs 164.02 mn in FY24 and repaid Rs 132.26 mn (FY24), Rs 22.35 mn (FY25) and Rs 27.69 mn (FY26); balance at Mar-26 nil for all family lenders (Mar-25: Vinay 27.69, Sonal 16.20, Tanya 5.20, Aryan nil). Interest paid to family FY26 about Rs 0.37 mn (FY25 about Rs 5.1 mn) (p.86-87).
• Guarantees: Vinay Rathi and Ankit Talesara personal guarantees for company loans (no guarantee fee disclosed); Sonal Rathi guarantees Pyrosens loans (p.87, p.48).
• Marathon Heater merger (promoter-controlled): appointed date 1 Apr 2024, NCLT Ahmedabad order 6 Feb 2025, effective 6 Mar 2025; exchange ratio 3,667 shares of Rs 100 per 10,000 Marathon shares (registered valuer Nikhil Jain, 25 Mar 2024); 108,389 shares issued to Vinay (59,119) and VPR (49,270), so the promoters' combined stake rose; created Rs 1,061.28 mn goodwill, Rs 453.67 mn intangibles and Rs 1,647.34 mn securities premium (p.322-323, p.28-34). Fairness of the ratio to the Talesara and Pande minority co-owners: no fairness opinion disclosed (Not Available).

Auditor [Fact] PROS p.90, p.369-373; R25

Litigation, regulatory actions and statutory compliance [Fact] PROS p.509-515, p.46, p.52-54

The company's own summary table (p.46, layout garbled) lists: 1 criminal case against the company, 9 criminal cases by it, 1 against directors, 2 against promoters, and 1 material civil proceeding against subsidiaries (Rs 110.41 mn).

• No SEBI or stock-exchange disciplinary actions against promoters in the last five fiscals; no outstanding material civil litigation against the company; no wilful-defaulter flags (PROS p.514, p.470-471). Contingent liabilities Rs 17.39 mn (0.35% of net worth).
• Statutory dues delays (EPF, ESI, PT, GST): FY24 1 instance Rs 0.10 mn; FY25 22 instances Rs 0.95 mn (mostly ESI, 16 instances); FY26 3 instances Rs 1.26 mn; all paid with interest, "operational delay" (p.58-59). Employees on PF 731 at Mar-26 (642 FY25; 430 FY24).
• Material creditors: 1 creditor owed more than Rs 10.01 mn; MSME creditors 262 (Rs 11.68 mn); others 354 (p.515).

Corporate-record and process red flags (company-disclosed)

Governance assessment [Analyst View]

Monitor: Q2 FY27 results (Nov 2026) and the IPO utilisation statement; SHP at 31 Dec 2026 (pledge, DII / FII changes); Rathi Trust disclosure; insider (SEBI PIT) trades after 25 Feb 2027; ICRA surveillance (due Nov 2026); the Theia arbitration order; AGM notice (related-party approvals, remuneration ratification).

Not Available / where searched: post-listing SHP with pledge columns, Reg 7 insider disclosures and Reg 31 forms (NSE / BSE APIs blocked, 403; company page link not exposed); board and committee attendance, FY26 annual report, auditor fees and AGM date (FY26 AR not yet published; FY25 AR scanned); Rathi Family Trust deed, GmbH net debt, GmbH deal approvals, Marathon fairness opinion (Prospectus pages cited; not disclosed); promoter and senior-management attrition (not disclosed).

Supply Chain

Sources: RHP p.256-303 (printed pages), risk factors 3-4, 21, 22, 40, transcript (TR), Screener, ICRA. [Fact] read from a filing; [Est.] our arithmetic.

Value chain map

Upstream: what Tempsens depends on

• Domestic sourcing from suppliers in 18 states and 2 union territories (Rajasthan, Gujarat, Maharashtra, UP, Delhi, Tamil Nadu, Karnataka); foreign suppliers from 18 countries in the last three years. China is still the largest import origin even after its share fell from 9.52% to 6.69%.
• Supplier concentration. Top supplier India Trade Link Private Limited: Rs 541.51 mn, 20.77% of purchases (FY25 25.51%; FY24 22.91%); top-5 33.02%; top-10 40.33% (FY25 41.67%; FY24 47.62%). What India Trade Link supplies (likely nickel / copper / metals trading) is Not Available; the RHP names it only in risk factor 4 (full text searched). No long-term supply agreements; spot purchase orders only.
• Pass-through. The RHP says raw-material POs are placed on receipt of confirmed customer proposals, so margin risk is limited on large orders; small and urgent orders carry price risk. CFO: "we book the raw materials at the time of receiving orders... pass through fluctuations to the customer"; inventory Rs 110-120 cr, 65-70% raw material (TR). Both statements hold; the difference is order size. The cost of this model is working capital: inventory days 147 standalone / 170 consolidated in FY26, net working capital days 210 (193 FY25; 152 FY24) [Est.].
• Vertical integration (what is not bought). Alloy melting (vacuum induction), hot rolling, annealing, wire drawing, MI-cable compaction, thermowell machining, heating-element alloys, tubular elements, vessel fabrication, panel integration and calibration. Previously imported thermocouple and heating conductors are now made in-house at Units II and V (RHP p.262, p.270). Precious metals (platinum and rhodium) were 4.29% of purchases in FY25 and 7.33% in FY26.
• Logistics and energy. No own fleet; spot third-party air, road and rail; no related-party logistics (RHP p.296). Inventory on ERP; higher stock held for imported items. 1.5 MW rooftop solar at the Udaipur units for captive use (p.300).
• Labour. 814 permanent employees (incl. JVs) plus 1,189 contract workers at 31 Mar 2026 (1,012 in FY25; 872 in FY24); employee cost Rs 638.33 mn FY26, which is 14.35% of revenue (the business file labels it "of expenses"; recompute from the P&L gives revenue as the base) (p.301-302). Contract Labour Act absorption risk.
• Commodity exposure. Copper, nickel and precious metals are 33.4% of purchases (26.05% + 7.33%) [Est.]. ICRA site (12-16 Oct 2026): WPI inflation 11.4% in Sep 2026, "elevated global commodity prices".

Downstream: who depends on Tempsens

• Customers: 2,600+ (Apr 2024) to 3,800+ (Mar 2026); top-20 average tenure 10 years (range 1-23), top-30 8 years; no customer named. End-use mix is in Tab 3; no end market above 22% (management).
• End-products containing Tempsens output: blast furnaces, reactors, pressurisers, fuel cells, space hardware, thermal and nuclear power plants, glass furnaces, CVD equipment, lab furnaces for life science, commercial-vehicle exhaust-gas heaters, battery manufacturing (Korean JV), oil and gas heaters and heat-trace.
• Design-win stickiness: sensors are under 1% of plant cost but critical; qualified OEM vendors are built into specs and machines; first approval 3-5 years; but OEM contracting is PO-to-PO with milestone POs, and only the life-science furnace deal is a 5-year contract (TR). ICRA calls entry barriers "low" for consumable heating and in export markets.
• Contract tenors and order cycle: heavy industry order book about 4-4.5 months; OEM visibility 9-12 months. Government, defence and space contracts carry termination and penalty clauses (RHP risk factor 14). Receivables Rs 857.38 mn (+33% YoY); ECL allowance only Rs 2.31 mn.
• Pricing power evidence: gross material margin 46-47% (management), company EBITDA margin 21.98% / 25.45% / 24.83% FY24-26, 22.0% in Q1 FY27. Where pricing power sits [Analyst View]: with the customer in standard heaters and cables (low entry barriers, many regional makers, import-parity in sensors); with Tempsens in qualified lines (ATEX / IECEx / ASME U-Stamp / nuclear approvals, MI cable, alloys) and in niche non-contact sensors. Raw-material suppliers hold spot-market pricing power, which Tempsens manages by pass-through at order booking.

Competitive Position

Industry size and growth (F&S) [Fact as stated]

[Est.] Tempsens FY26 revenue of Rs 4,449 mn is roughly USD 50 mn at an assumed Rs 85-90/USD, about 0.1% of the global pool; the thesis is niche (make-to-order, qualified), not share of total.

F&S labels furnaces "FY2026E-FY2031E" but heater / total as "FY2027E-31", so the five-year cumulative is not annual and not comparable to the Rs 17.25 bn annual size. The cable market (Rs 128 bn) is dominated by LV power cable, where Tempsens's offering is marginal [Est.].

Trade flows [Fact] RHP p.186-187, 208, 248-249

• India temperature-sensor exports Rs 3.9 bn, growing 8-10% (contact 70%, non-contact 25%, protection 5%).
• India cable exports Rs 2,750 cr in FY25 (FY20 1,380; FY21 810; FY22 1,472; FY23 1,748; FY24 2,184).
• India heating imports about Rs 365 cr; top-10 global suppliers over Rs 230 cr (about 65%): Thermon, Heat Trace, Alleima (Kanthal), Zoppas, nVent Thermal, Heatwell, Hotset, IRCA. Heater exports Rs 245 cr in FY20 to Rs 335 cr in FY25 (FY24 +15.6%, FY25 +12.2%); "Thermopads" cited as a large Indian exporter.
• Import substitution already visible in sensors: global brands' India share fell from 75% (FY18) to 59% (FY26); organised Indian players rose from 15% to 31%; unorganised stable at about 10% (RHP p.187).

Market share, FY26 [Est.] unless stated

Leadership is real only in India contact and non-contact sensors and in the niche of MI cable and conductors; in heating it is one of about 14 mapped players; in cables it is a small niche inside a large LV market [Est.]. Indian organised sensor makers took 16 points of share in 8 years (F&S); Tempsens' 10.5% is the largest single share but over 85% of the pool is others (global brands 59%, other organised Indian players about 20%) [Est.].

Competitor map [Fact] RHP p.187-189, 201, 248; FS25 p.100-103

F&S states "no directly listed companies in India or internationally across all three segments", and the RHP lists no listed peer for P/E comparison (RHP p.146, 301). A bundled peer multiple does not exist; investors will compare to part-peers.

Competitor metrics (F&S benchmarking from RoC / MCA filings; Rs mn) [Fact] RHP p.254-255

• Other data: Thermo Cables FY23 revenue 6,129.26, EBITDA 855.70, PAT 521.96; WIKA India FY23 revenue 3,117.60, PAT 96.80; Thermon India FY23 revenue 503.80; Tempsens FY23 revenue 2,369.43. FY26 figures for all three peers: Not Available (F&S prints N.A.; filings not yet collected). Thermo Cables is unlisted (Hyderabad, 1990, 60+ countries, 1,000+ staff); WIKA India about 610 staff, parent WIKA Group about 11,500 staff and 300+ patents; Thermon Group about 1,800 staff (US-listed parent; metrics not retrievable, FMP access denied on the current plan).
• [Est.] Tempsens has the highest EBITDA and PAT margin in the benchmark set but the worst working capital (210 days vs 52-120), and lower RoE / RoCE than Thermo Cables (31.6% / 43.5% FY25) because of merger goodwill and a larger balance sheet. Thermo Cables is 2.2x Tempsens' FY25 sales (8,449 vs 3,785) at roughly half the sales growth (19.5% vs Tempsens 37.7% in FY25) and is the most direct cable rival.

Screener "peers" (listed, 21 Oct 2026): not like-for-like [Fact]

Median of the 131-company Screener set: P/E 33.84, ROCE 16.52%. These are not business peers (only Honeywell Automation overlaps, in instrumentation). Proper listed adjacents (Polycab, KEI, Universal Cables, Thermax, Rishabh Instruments): screens returned HTTP errors this session, Not Available. Tempsens' Q1 sales growth on the Screener peer table: 21.9% (standalone).

Strengths and weaknesses versus peers, moat [Analyst View]

• Qualification moat: first approval 3-5 years, then adjacent products are easier (TR); top-20 customers average 10 years (RHP p.266). Counter-evidence: ICRA calls entry barriers "low" for consumable heating and export markets.
• Cost and localisation: Indian makers moving from "low-cost alternative" to full stack; global brands described as "assembly players" in India with import-led cost bases (F&S, RHP p.187).
• China: management says few Chinese rivals in engineered and critical products and some customers moving away from China (TR); Tempsens itself imports 6.7% of purchases from China, its largest import origin.
• Partnerships reduce capex but hand value away: Micro-Epsilon 49.99% of Pyrosens; 50% JV partners in Indonesia, Korea and Victura.

Policy and regulatory drivers [Fact] RHP industry section (printed p.201-250), Key Regulations (p.306-312); TR

Industry structure and Porter's Five Forces [Analyst View]

• Fragmented and tiered: global MNCs own high-precision and smart sensing; Indian organised players (Tempsens, Radix, Pyro Electric, Precision Mass) own traditional contact sensors; unorganised about 10% in sensors; cables and heaters have long tails of regional makers with price competition (RHP p.301).
• Demand split: about 60-70% project / OEM (lumpy, capex-linked, 4-month book) and 30-40% replacement (annuity-like). Tempsens' FY26 mix of 67.55 / 32.45 mirrors the F&S estimate of 35-40% replacement for sensors.
• Barriers: certifications (ATEX, IECEx, UL, ASME U / R, PESO), customer approvals (PSUs, nuclear, refineries), backward integration; weak barriers in standard heaters and cables and for Chinese low-end entrants.

Moat: narrow-to-moderate and product-specific [Analyst View]. For: qualification-driven stickiness, backward integration, cross-sale at 60% of revenue, top-20 tenure of 10 years, highest margin in the benchmark set. Against: sponsored share data, 210-day working capital, low barriers in parts of heating and cables, mixed Indian-only share of about 7-8% in sensors, and partners holding minority stakes in key subsidiaries.

Risks & Red Flags

Severity (High / Medium / Low) is our judgement [Analyst View] combining likelihood and impact; the explanation column carries the facts with sources. RHP RF = risk factor number in the Red Herring Prospectus. Rows 1-22 originate in the market file's risk register; rows 23-40 add governance, financial and market-structure risks from the other files.

Red-flag checklist

Concall Highlights & Guidance

Event timeline [Fact]

The NSE announcements API returns only about 10 recent items and the BSE API returned HTTP 403, so a complete announcements list could not be pulled. The company site lists "Intimation of Letter of Award" headings (FY2026-27 and FY2025-26) and "Letter of Acceptance" (FY2024-25) under Reg 30, but the links are empty "#" placeholders: contents and values Not Available. The "Appointment of Statutory Auditor" intimation in FY2026-27 is listed with details Not Available.

17 Sep 2026 call (Q1 FY27): full highlights [Fact] TR

Participants: MD Vinay Rathi, CFO Priyanka Menaria, Aryan Rathi (Lead, Global Sales). Questioners: Pratik Dharmshi (Union Mutual Fund), Sahil (SR Investments), Aman (Blue Sky Fintech), Naman Parmar (Niveshaay Investment Advisory), Jenish Karia (Union AMC), Parag Agrawal (Second Theory Capital), Gaurav Jawalkar (JM Financial, an IPO BRLM), Pujan Shah (Molecule Ventures), Vedant S. (MARS Investments). Eight to nine questions; no questions from large foreign institutions. Of the nine, only one was sell-side (JM Financial); two Union entities signals domestic MF interest [Est.].

Opening framework

• "Measure, heat, connect"; about one third of product revenue from outside India in the quarter; three verticals in FY26: sensing 45%, cables 35%, heating 21%.
• Moat claims: cross-sale Rs 267 cr = 60% of revenue (management said growth "over 30%"; the Prospectus YoY is +25.6%, Rs 2,123.73 mn to Rs 2,668.14 mn; 30% is the FY24-26 CAGR); backward integration (own alloys, MI cables); qualification (blast furnaces, reactors, pressurisers, fuel cells, space).
• OEM programme: fuel-cell sensors and cable harnesses; Victura JV (heating cables for commercial-vehicle emissions); private-label lab furnace for a life-science company.
• Two thirds projects plus OEM, one third replacement; no end market above 22%; top-10 customers 19%; top-20 with the company for 10+ years; exports to 80+ countries, +46% CAGR FY24-26; 15 plants (the transcript says "five of them in India, five outside India"; the Prospectus says ten in Udaipur and five overseas, so the wording is a slip); 83 R&D engineers; UL, ATEX, ASME U-stamp.
• FY24-26: revenue CAGR 27% to Rs 445 cr, EBITDA +36% to Rs 113 cr, adjusted PAT +35% to Rs 75 cr, gross margin 46-47%.
• Caveat from the MD: EBITDA margin "would move" with the timing of large dispatches, "that particular state" (mix), and investment for the future.
• Four tailwinds: electrification of process heat, alternative energy (fuel cells, green hydrogen), China+1, continued oil, gas and steel investment; global pool $50 bn growing 7-8% to about $75 bn by 2030 (F&S, company-commissioned).

Quarter commentary (CFO, Aryan Rathi)

• Sensing +42% (thermal power, OEMs incl. CVD-equipment makers; healthy pipeline in thermal and nuclear power, steel, glass). EDGE-series pyrometers (co-developed with Micro-Epsilon) dispatch from Q3 FY27; addressable market about Rs 3,000 cr, Tempsens "less than 1%" of it.
• Heating +149% on a low base (heater plant commissioned end-Q1 FY26): large oil and gas dispatches in India, Southeast Asia and the Middle East; 5-year framework supply deal with a life-science OEM for standard furnaces; +25,000 sq ft for custom furnaces this year; medium-voltage heaters up to 15 MW for carbon capture, battery storage and green hydrogen, explosion-proof certification target Q4 FY27 (PPT: tested up to 7.2 kV; the transcript says "kilowatts", a slip).
• Cables -8.8% to Rs 32.5 cr: "timing of export order execution" (executed thermal power, oil and gas Africa, chemicals India); foray into UL-certified high-temperature cable harnesses; Unit 8 greenfield construction started; Middle East oil-and-gas approvals pending.
• Costs: gross material margin 47.4% (Q1 FY26's 49.3% was a high base); employee cost +45% (headcount for growth; newly acquired units add cost on a low revenue base).
• Capital: Rs 95 cr fresh issue, Rs 55 cr used to repay borrowings (against Rs 78 cr at Mar-26); land bought for about Rs 25 cr from internal accruals.

Analyst Q&A takeaways

[Est.] The buy-side themes (fuel-cell run-rate, new products, moat, order book, Middle East, margin bridge, FY27 growth, capacity utilisation) are the things the market is paying for and the things management would not quantify.

Guidance versus actuals [Est.]

Because this is the first call and first listed quarter, there is no prior-quarter guidance to grade. The table compares IPO-era statements and the first guide with what is observable.

RHP-era benchmarks: FY26 revenue +17.53%, EBITDA margin 24.83%, PAT Rs 710.67 mn. ICRA in Nov 2025 expected FY26 revenue to "further increase on expected growth in existing segments" and sustained operating metrics; outcome FY26 +17.5%, EBITDA margin 24.83% vs ICRA's FY25 24.1% (ICRA; RHP p.263).

Management tone, credibility and contradictions [Analyst View]

Growth, Outlook & Valuation

Industry size and share statements quoted here are from the Frost & Sullivan report that the company commissioned and paid for; the 10.5% India sensor share is group sensing revenue over an India-only pool (India-only roughly 7-8% [Est.]). Street data come from Moneycontrol (21 Oct 2026, 16:05 IST), Chittorgarh, IPOWatch, Screener and the NSE archives.

Order book and revenue visibility

Management guidance numbers [Fact] and expansion plans

New products and markets

• EDGE-series pyrometers with Micro-Epsilon (dispatch from Q3 FY27; about Rs 3,000 cr addressable, under 1% share). Medium-voltage heaters up to 15 MW for carbon capture, battery storage and green hydrogen (certification Q4 FY27). UL-certified high-temperature cable harnesses. Fuel-cell sensors and harnesses (advanced field trials, "executing at scale", unquantified). Victura exhaust-gas heater cables for commercial vehicles (production from Q4 FY27). Private-label lab furnaces (5-year life-science framework).
• New geographies: Mexico (entity registered, MoU for 60%, capital infusion pending), Poland, South Korea; acquisition targets under evaluation with no definitive agreements: Saudi Arabia, USA, Brazil. Middle East oil and gas approvals for cables in progress.
• Trade shows: WETEX Dubai 20-22 Oct, glasstec Duesseldorf 20-23 Oct, ADIPEC Abu Dhabi 2-5 Nov 2026.

Catalysts and overhangs, next 4-6 months [Est.]

Industry tailwinds and long-term drivers

Electrification of process heat under carbon-market rules, green steel, public capex (Budget 2026-27 capex Rs 12.2 lakh cr), thermal power investment, defence and nuclear indigenisation, China+1, fuel cells and green hydrogen, and import substitution in sensors (global brands' India share 75% in FY18 to 59% in FY26, all F&S). Detail and sources in Tab 9. Global pool about USD 51 bn growing to about USD 75 bn by CY2030 (F&S).

Analyst consensus and street coverage

Bottom line [Est.]: no published sell-side research, target price or rating was findable 8 weeks after listing. FY27 / FY28 consensus EPS: Not Available.

Valuation

• The Prospectus states there are no listed like-for-like peers in India (p.151); Screener's peer table is not comparable (median P/E 33.84; Tab 9). A 3-year historical average multiple is not computable: listed only since 28 Aug 2026. Moneycontrol sector P/E 38.00.
• Re-rating: P/E went from 35.9x to about 61x trailing in eight weeks while FY26 PAT grew 13.6% and Q1 FY27 PAT 15.6%. The price discounts the order and OEM ramp, not trailing earnings [Analyst View].
• Illustrative only, not a forecast [Est.]: if FY27 revenue grows 23-27% with similar margins, PAT is about Rs 870-900 mn and EPS about Rs 10.4-10.8 on 83.8 mn shares, giving about 48-49x at Rs 513. EPS needed to justify Rs 513 at 40x is about Rs 12.8, at 30x about Rs 17.1; the same Rs 513 is 35.9x on EPS of Rs 14.3.
• Dividend yield 0.00% (FY26 Rs 0.33 per share; 3.7% payout); no buyback; lender covenants restrict dividends to current-year profits. Target prices (bull / base / bear): Not Available from any source; our scenarios are in Tab 13.
• Pre-IPO investor mark-to-market: WhiteOak's 2,016,651 shares at Rs 513 are worth about Rs 103.5 cr, 2.07x cost [Est.].

IPO demand: subscription, pricing and anchors

• Reconciliation [Est.]: 277.99 cr shares / (2.167 cr - 0.6485 cr anchor) = about 183x, i.e. Moneycontrol's 184.07x is close to the subscription of the portion offered ex-anchor (183x vs 184x; basis not confirmed); 128x includes the anchor allocation in the denominator. Both describe the same book; 130.85x is the exchange figure.
• Price: band Rs 285-300; priced at the top (Rs 300 = 75x face value); lot 50 shares; retail maximum 13 lots (Rs 1.95 lakh). Offer 85.4% OFS. QIB 50% of net, NII 15%, retail 35%, employees 50,000 shares (Chittorgarh; Prospectus p.3). Grey market: listing "at par with grey-market expectations of more than 100%" (Moneycontrol); numeric GMP history Not Available.

Anchor book (19 Aug 2026): Rs 194.55 cr, 64,84,999 shares at Rs 300, 29 allottees, 60% of the QIB portion [Fact] Chittorgarh

• Eight fund houses took the maximum 5,54,300 shares each (SBI MF, HDFC MF, Nippon, Kotak MF, Aditya Birla SL, Aranda, Goldman Sachs, Ashoka WhiteOak, counting a fund house's schemes together; Rs 16.63 cr each = 8.55% of the anchor book; 2.56% of the issue; about 68% of the book in total): "book-built to equal blocks" [Est.]. Anchor shares = 7.73% of the post-issue company [Est.] (6,484,999 / 83,832,691).
• Quality read [Est.]: a small-cap / industrial-theme MF set (SBI Resurgent, Nippon Small Cap, ABSL Small Cap, HDFC Manufacturing / Business Cycle, Kotak Infra) plus Temasek and Goldman as long-only foreign anchors: credible, not exceptional; no marquee long / short hedge funds or sovereign funds beyond Temasek. Anchor lock-in: 50% ended 23 Sep 2026; the remaining 50% ends 22 Nov 2026.

Listing day (28 Aug 2026) and league table

• NSE open Rs 634.00 (+111.3%), BSE Rs 631.20 (+110.4%); NSE high 634.85, low 551.15, last 586.65 (+95.6%); BSE last Rs 586.80; volume 51.1 mn shares, 25% delivery. Moneycontrol listing-time mcap Rs 5,291 cr (about Rs 631); Chittorgarh mcap at listing close Rs 4,918 cr.
• Best 2026 mainboard listing so far per Prime Database / Moneycontrol: Tempsens at about 110%, then Bharat Coking Coal +96.57%, INDO-MIM +44.95%, CMR Green Tech +43.44%; 60 IPOs raised Rs 72,165 cr in Jan-Aug 2026.

Notable holders and flows

• WhiteOak Capital India Opportunities Fund: pre-IPO holder, 2.41% post-issue; it was not an OFS seller. Promoters and family, post-IPO [Est.]: Vinay Rathi 28.86%, V.P. Rathi 14.91%, Rathi Family Trust 9.14%, Puneet Talesara 6.05%, Chandra Prakash Talesara 3.65%, Ankit Talesara 3.65%, Amit Talesara 2.43%, Nirmal Kumar Pande 2.43%, Pratap Singh Talesara 0.61%.
• Latest filed (Sep 2026, Screener): promoters 65.67%, FIIs 2.66%, DIIs 11.60%, public 20.06%; 96,561 shareholders. Names behind the DII stake: Not Available (Sep 2026 MF portfolio disclosures not accessible).
• DII 11.60% vs anchor MF about 4.4% of the company [Est.] (3,721,600 / 83,832,691) implies further DII buying in the QIB / market tranche. FII 2.66% vs foreign anchors about 2.0% [Est.] (1,662,900 / 83,832,691): little beyond the anchor foreign money.

Bulk / block deals [Fact] Moneycontrol deals tab (last 8 entries)

[Est.] Each entity bought and sold nearly identical quantities at nearly identical prices on the same day (net: Junomoneta 2 Sep -4,183 shares; Microcurves 0; Mathisys +3,206; 9 Sep -4,844). This is the signature of proprietary, arbitrage or algo market-making desks, not directional institutional accumulation or distribution. No promoter, MF, FPI or insider entries; Moneycontrol "Insider Deal" tab blank; NSE bulk file for 19 Oct 2026 has no TEMPSENS row and the block file shows "NO RECORDS". The full 28 Aug to 21 Oct deal history: Not Available (API blocked).

Trading statistics and price path

Media and sentiment

• Mainstream media (all Moneycontrol, none critical): "111% listing gains: Tempsens Instruments more than doubles on market debut; should you buy, sell or hold?" (28 Aug); "Which IPOs posted the best listing gains in 2026? Tempsens leads at 110%" (28 Aug); "Stocks to Watch Today, 17 September" (Q1 consolidated revenue +33.4% to Rs 118.7 cr, profit +14.2% to Rs 15.2 cr, owners' share). No negative press, litigation news or short-seller report found. Business Standard, Economic Times, Mint and Business Today coverage: Not Available (search engines unavailable). The company's own Media page is placeholder text.
• Retail forum (Moneycontrol message board, 21 Oct, anonymous): "below 500 by next week..." and "I told everyone that it was fake breakout look at price today. Operators playing with innocent investors." Two posts only; "Community Sentiments: Data not Available". Treat as noise reflecting holders after the 7-13 Oct spike [Est.]. X, Reddit, Telegram, ValuePickr: Not Available (not reachable). Chittorgarh member reviews: 2 "Subscribe".
• Company communication: first concall 12:00 IST on 17 Sep 2026 (ICICI Securities-hosted); presentation and transcript filed 22 Sep.
• Sentiment synthesis [Est.]: (1) IPO demand was extreme and led by NII and QIB (226-230x) while retail was normal for a hot IPO (33x); (2) after the +96% first-day pop the stock has traded sideways to lower in a Rs 486-635 band with no sell-side anchor; (3) results day (+15.6% PAT growth, margin down about 330 bp) produced no sustained re-rating; (4) the 7-13 Oct spike (no exchange announcement per the narrative file) reversed about 13-15% within seven sessions, with typical post-IPO "operator / breakout" chatter; (5) institutional interest is visible (anchors, Union MF / AMC, Second Theory) but small (DII 11.6%, FII 2.7%).

Final Verdict

Base case (12-18 months) [Analyst View] scenario ranges, not forecasts

Five things to remember

1. The price is Rs 513 (21 Oct 2026 close), 61.4x FY26 EPS, with market cap Rs 4,300 cr; at issue it was 35.9x, and eight weeks of trading produced no sell-side coverage, so valuation is unanchored.
2. Only Rs 95 cr of the Rs 650 cr IPO reached the company (14.6%); Rs 55 cr has repaid debt; the rest of the money went to family sellers at a cost of about Rs 0.05 per share.
3. Cash does not follow profit: CFO was 59% of PAT in FY26 and 76% cumulatively, and the cash conversion cycle is 210 days.
4. Industry data and market-share claims are Frost & Sullivan, commissioned and paid for by the company; the 10.5% sensor share compares group revenue including exports with an India-only pool (India-only about 7-8%).
5. The 50% Tempsens GmbH purchase from MD Vinay Rathi (EUR 763,500 = 50% of EUR 1,527k) is a related-party transaction with control via a voting agreement and undisclosed approvals; November brings H1 results and the first utilisation statement, 22 Nov brings the anchor unlock.

Five questions before investing

1. What is the rupee order book and its conversion, given that management declined to give a number and the Letter of Award links are empty?
2. Will Q2 and Q3 FY27 company-definition EBITDA margin recover from 22.0% toward 24.8%, and does standalone PAT growth rise above +2.9%?
3. Why do key units run at 41-58% utilisation if management says plants run near 80%, and what does that say about the Rs 500 cr capacity plan?
4. Who approved the GmbH purchase, who are the trustees of the Rathi Family Trust, and what are the final lock-in dates for the roughly 54% of equity that can trade from about 25 Feb 2027?
5. Does working capital turn (cash conversion cycle below 200 days, CFO / PAT above 75%) before the market pays 60x for the OEM ramp?

Sources

All sources accessed 21 Oct 2026 unless a document date is shown. The report rests on six research files written by two agents. Each file has its own key table and the keys collide: "RHP" is the Red Herring Prospectus of 14 Aug 2026, where the printed page number equals the PDF page minus 5; "PROS" or "PROS p." is the final Prospectus of 24 Aug 2026 (617 pages), where page numbers are PDF pages; "PPT", "TR" and "ICRA" point to different URLs in different files (BSE copy versus company-site copy; ICRA letter versus ICRA rationale page). In the body of this report, citations use the originating file's key. The six tables below are therefore kept separate and not merged. Web search was unavailable to the agents; NSE and BSE live APIs returned HTTP 403 to curl, so exchange facts that could not be re-fetched are marked as relayed from another file.

Key table 1: Business file (1_business)

Key table 2: Financials file (2_financials)

Key table 3: Governance file (3_governance)

Key table 4: Market file (4_market)

Key table 5: Narrative file (5_narrative)

Key table 6: Street file (6_heard)

Not Available: where searched