Susan Electricals India IPO Review: A 46% Listing Pop, a Rs 271 Peak, and a Pullback That's Worth Understanding

Susan Electricals India, a Ghaziabad based maker of winding wires and power cables for DISCOMs and EPC contractors, listed on BSE SME on 18 June 2026 at Rs 186, a solid 46% premium to its Rs 127 issue price. The stock kept climbing after that, touching an intraday high near Rs 271 in early July, before pulling back to around Rs 218 today, a roughly 19% correction off that peak. The company's revenue and profit growth genuinely impress on paper, but an independent review found negative operating cash flow across three straight years, a sign the reported profit hasn't been converting into actual cash, and that's the tension worth understanding before treating the current price as a buying opportunity.

Key Details at a Glance

What Does Susan Electricals India Ltd Do?

Picture the copper coil inside a transformer, or the thick cable strung between power poles carrying electricity into a neighbourhood. Susan Electricals makes exactly that kind of product, aluminium and copper based winding wires, strips, stranded conductors, and power cables that go into transformers, motors, alternators, and power distribution networks. You can track its live price alongside other IPO GMP data on the IPO GMP Live homepage.

Founded in 2007 and based in Ghaziabad, Uttar Pradesh, the company runs three manufacturing facilities and sells across seven states, though nearly 98% of FY26 revenue still comes from that same regional base. Its main customers are state owned electricity distribution companies, the DISCOMs, along with EPC contractors and infrastructure firms, which means most of its business runs through a government tendering and vendor approval process rather than open market sales. It also trades aluminium wires and rods and provides job work services alongside its core manufacturing.

The bigger tailwind behind this business is India's ongoing push to modernise its power distribution network. The government's Revamped Distribution Sector Scheme, a Ministry of Power program with an outlay north of Rs 3 lakh crore aimed at cutting distribution losses and upgrading infrastructure, has been a genuine source of demand for companies like this one supplying wires and conductors to DISCOMs.

How Strong Are the Financials, and What Does the Cash Flow Tell You?

The headline numbers here are genuinely striking. Revenue grew from Rs 103.59 crore in FY24 to Rs 136.05 crore in FY25 to Rs 270 crore in FY26, and net profit went from under a crore to Rs 5.65 crore to Rs 18.25 crore over the same stretch, a 643% jump in FY25 alone. That kind of acceleration is exactly what drew Dilip Davda's attention before the IPO, and not entirely in a positive way. He flagged the bumper profits from FY25 onward as something that "raises eyebrows and concern over its sustainability," particularly given the company operates in what he called a highly competitive and fragmented segment, and rated the issue as aggressively priced, suitable only for well informed, risk taking investors with a long term horizon.

The detail that deserves the most attention, though, sits below the profit line. An independent review of the company's cash flow statements found negative operating cash flow in all three of the last three fiscal years, FY24, FY25, and FY26, tied to a severe working capital drag from its government and EPC client base. That's a meaningfully worse pattern than a single bad year, it suggests the underlying dynamic, long payment cycles from DISCOMs and EPC customers tying up cash even as the income statement shows growing profit, is structural rather than a one-off. The same review also flagged raw material concentration risk and pointed to past corporate governance and statutory compliance lapses, adding further reason for caution beyond the headline growth numbers.

Why Did the Stock Rally, Then Pull Back?

The listing itself was strong on its own merits, a 46% premium with the stock briefly touching Rs 195 before locking at the upper circuit. What happened next is worth walking through carefully. The stock kept climbing through late June, hitting Rs 205 within days of listing, and continued higher into a peak intraday level near Rs 271 around the start of July. Since then, it's pulled back meaningfully to trade around Rs 218 today, a correction of roughly 19% from that high.

This pattern, a sharp post-listing run followed by a real pullback, is a useful reminder of how SME stocks with thin free floats can move. The initial enthusiasm reflected genuine positives: strong FY26 numbers, a sector riding real government infrastructure spending, and subscription that ran well over 150 times by even the more conservative tracker's count. But once that initial momentum cooled, the stock has given back a meaningful chunk of its gains, which lines up with the earnings quality concerns already on record, a market that initially priced in the growth story is now digesting the cash flow reality alongside it.

Should You Buy Susan Electricals India at Current Levels?

Conservative investors: Three consecutive years of negative operating cash flow despite rising reported profit is a serious enough flag on its own, and combined with Dilip Davda's pre-IPO caution about the sustainability of the FY25 profit jump and the fragmented, competitive nature of this industry, this isn't a stock built for investors who need predictable, cash-backed earnings. The recent pullback from Rs 271 is itself a signal that the market is starting to price some of this in.

Moderate investors: If you hold from allotment, you're still sitting on solid gains even after the pullback, worth weighing whether to trim into strength. If you're considering a fresh entry, the working capital and cash flow trend over the next couple of quarters will tell you far more than the current chart, and the RDSS tailwind, while real, doesn't by itself fix a structural cash conversion problem.

Aggressive investors: The government infrastructure spending tailwind is genuine and multi-year in nature, and a company with established DISCOM vendor relationships is reasonably positioned to capture some of that demand. If you believe the working capital drag eases as the company scales and collections improve, the post-pullback price could look like a reasonable entry in hindsight. But you're underwriting a cash flow problem that's now shown up for three straight years, not a one-time hiccup.

Honest take. Susan Electricals is a business genuinely riding a real, government-backed infrastructure tailwind, and its revenue and profit growth on paper are hard to argue with. But three years running of negative operating cash flow is not something a good sector story papers over, it's a direct signal that money isn't coming back into the business at the pace the income statement suggests, and Dilip Davda's aggressively priced verdict was flagging exactly this kind of risk before the stock had even listed. The pullback from Rs 271 to around Rs 218 looks like the market starting to reconcile the growth story with the cash flow reality, and my honest read is that reconciliation isn't finished yet.

Where Did the IPO Money Go?

This issue combined a fresh issue with an offer for sale, so not all proceeds go to the company itself. Of the funds from the fresh issue, Rs 10.29 crore was earmarked for expanding the existing manufacturing facility in Sahibabad, Ghaziabad, a modest allocation relative to the rest of the raise. By far the largest share, Rs 33 crore, went toward working capital requirements, which lines up directly with the negative operating cash flow already discussed, this is money aimed squarely at the gap between reported profit and actual cash on hand. The remaining funds covered general corporate purposes and a relatively large Rs 9.33 crore in issue expenses.

Contact Details

Company: Susan Electricals India Ltd.

Location: Ghaziabad, Uttar Pradesh

Business: Manufacturing of aluminium and copper based electrical winding wires, conductors, and power cables, supplying DISCOMs, EPC contractors, and infrastructure companies

Registrar: Mudra RTA Ventures Pvt. Ltd.

Lead Manager: Seren Capital Pvt. Ltd.

Listing: BSE, SME platform

This page is not investment advice. GMP is indicative only and unofficial, and has limited relevance now that the stock is already listed and trading. Please consult a SEBI registered financial advisor before investing.