Tempsens Instruments (India)
FinMinutes Deep Business Model & Edge
Tempsens Instruments (India) Limited is a leading Indian manufacturer of temperature sensors and a global provider of thermal and cable solutions. The company operates a fully integrated manufacturing network across India, Germany, Poland, UAE, and Indonesia, serving process-intensive industries such as metals, power generation, oil & gas, and glass.
What this company actually does — full breakdown ▾
Tempsens Instruments (India) Limited, incorporated in 1990 and headquartered in Udaipur, Rajasthan, is a global leader in providing advanced thermal engineering and cable solutions. The company designs, manufactures, and distributes a comprehensive portfolio of contact and non-contact temperature sensors (including thermocouples, RTDs, pyrometers, and thermal imagers), industrial electrical heaters, specialized low-voltage cables, calibration systems, and industrial furnaces. Serving over 3,800 customers, its diverse clientele spans critical end-user sectors such as metals, cement, chemicals, oil & gas, glass, power generation, pharmaceuticals, aerospace, and defense. Geographically, the company operates a robust international footprint. Along with its subsidiaries and joint ventures, it operates 15 state-of-the-art manufacturing units, of which ten are located in Udaipur, India, and five are located globally in Germany, Poland, the United Arab Emirates, South Korea, and Indonesia. These are complemented by a network of 28 distributors across more than 80 countries. Tempsens operates on a backward-integrated supply chain model for contact sensors and cables, reducing dependency on imports, ensuring faster turnaround, and maintaining strict quality control. In terms of scale, the company's revenue from operations grew at a CAGR of 27.23% from ₹274.81 crore in Fiscal 2024 to ₹444.88 crore in Fiscal 2026, while restated Profit After Tax (PAT) stood at ₹71.07 crore on a consolidated basis in Fiscal 2026.
- Temperature sensing solutions — Comprises contact sensors (thermocouples, RTDs, gauges), non-contact sensors (infrared pyrometers, thermal imagers), protectives (thermowells), calibration tools, and data loggers, contributing 44.59% (₹196.66 crore) of operation revenue in FY2026.
- Specialised cables — Focuses on low-voltage instrumentation, control, and signal cables, thermocouple cables, and mineral insulated metal-sheathed cables for industrial automation and precise signal fidelity, contributing 34.71% (₹153.11 crore) of operation revenue in FY2026.
- Electrical heating solutions — Includes industrial electric heaters (cartridge, tubular, immersion heaters), customized laboratory/process furnaces, and heating conductors/elements, contributing 20.70% (₹91.33 crore) of operation revenue in FY2026.
Tempsens' competitive moat is built on its deep backward-integrated manufacturing facilities in Udaipur, India, which ensures tight quality control, lower import dependency, and faster turnaround times. This operational strength is reinforced by high entry barriers due to stringent global product certifications (such as ATEX, IECEx, and ASME U-Stamp) and extended customer qualification cycles for mission-critical applications. The company further protects its market position through a highly diversified base of over 3,800 customers across multiple sectors, with low client concentration (top 10 clients contributed only 18.59% of revenue in Fiscal 2026).
The Offer
Follow the Money — Use of Proceeds
- Funding certain capital expenditure of our Company towards our (i) electrical heating solutions; and (ii) specialized cable solutions — ₹18.13 cr
- Pre-payment or scheduled re-payment, in full or in part, of certain outstanding borrowings availed by our Company — ₹55.00 cr
- General corporate purposes
Valuation at the Offer Price
The filing does not print a single headline multiple, so this one is ours: the upper band divided by the latest restated earnings per share — the same arithmetic the “Basis for the Offer Price” section performs. It is struck on pre-issue earnings, so the post-issue figure will differ once the fresh capital is deployed. The peer group is the one the filing itself names. A premium is not the same thing as expensive and a discount is not the same thing as cheap — the peer table and the reasons sit further down this page.
FinMinutes IPO Score — How It's Built
Transparent, deterministic, computed from the filing — not an opinion. Open any component below to see exactly what it measures and what it is worth. Components with no disclosed input are dropped from the weighting entirely rather than held at an invented neutral, because a constant inside a weighted average is not neutral — it quietly drags every score toward the middle. Weighted across 4 live components.
70% of the designed weighting had real data behind it on this issue. Not yet scored here: Anchor Quality, Valuation Vs Peers. A lower coverage figure does not mean a worse company — it means we are standing behind less of the picture, and you should read the findings below rather than the headline number.
How this is measured10%
Whether fresh capital actually enters the business. A predominantly offer-for-sale issue is marked down ONLY when the financials are weak. A profitable, cash-rich company selling down is treated as neutral, not penalised, because it does not need the money.
How this is measured26%
Driven by the models battery run on the filing's own restated numbers: the Piotroski fundamental tests (scored out of those we could actually run), the Altman Z-double-prime solvency zone, and the direction of profit across the disclosed period. It is not a single yes/no on last year's profit.
How this is measured12%
A proxy for syndicate strength, based today only on how many lead managers are on the issue: 75 where three or more banks are involved, 60 otherwise. We have not built a bank-by-bank track record, so treat this as a rough signal. When the filing does not disclose the syndicate, this component is dropped from the weighting rather than guessed.
How this is measured22%
Starts at 100 and loses points for every material red flag we find in the filing: contingent liabilities, related-party intensity, customer concentration, litigation, auditor qualifications. This is the component our DRHP forensics drives directly, and it is the one that moves most between companies.
3-Year Financial & Growth Trend
| Metric | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue (₹ Cr) | 444.878 | 378.526 | 274.81 |
| Net Profit (₹ Cr) | 71.067 | 62.555 | 40.919 |
| PAT Margin | 15.97% | 16.53% | 14.89% |
Revenue Breakdown
- Temperature sensing solutions: 44.59%
- Specialised cables: 34.71%
- Electrical heating solutions: 20.7%
Deep Financials
Revenue, EBITDA and profit are what every listing site prints. Below are the full restated statements as disclosed, the ratios we compute from them, and a DuPont decomposition of the return on equity. A prospectus carries three years, not ten — that is the document’s ceiling, and within it we go as deep as it allows.
Income StatementThe full profit and loss as restated in the filing.
| Income Statement (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue from Operations | 444.88 | 378.53 | 274.81 |
| Other Income | 10.98 | 3.94 | 3.23 |
| Total Income | 455.86 | 382.47 | 278.04 |
| Cost of Materials Consumed | 248.43 | 198.51 | 171.71 |
| Employee Benefit Expense | 63.83 | 49.86 | 30.00 |
| Other Expenses | 41.06 | 37.41 | 22.96 |
| Total Expenses | 364.04 | 302.30 | 227.12 |
| EBITDA | 113.17 | 97.32 | 61.13 |
| Depreciation & Amortisation | 13.83 | 12.08 | 5.35 |
| EBIT | 99.35 | 85.25 | 55.78 |
| Finance Cost | 5.22 | 2.08 | 1.60 |
| Profit Before Tax | 94.13 | 83.16 | 54.18 |
| Tax Expense | 23.06 | 20.61 | 13.27 |
| Profit After Tax | 71.07 | 62.56 | 40.92 |
| EPS - Basic | 8.35 | 7.51 | 8.06 |
| EPS - Diluted | 8.33 | 7.51 | 8.06 |
Balance SheetWhat the company owns, owes, and is worth on paper.
| Balance Sheet (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Share Capital | 32.27 | 2.93 | 1.85 |
| Reserves & Surplus | 465.16 | 427.25 | 202.98 |
| Net Worth | 497.42 | 430.18 | 204.83 |
| Long-term Borrowings | 7.60 | 5.53 | 9.30 |
| Short-term Borrowings | 70.35 | 66.30 | 20.83 |
| Total Borrowings | 77.95 | 71.83 | 30.13 |
| Trade Payables | 20.01 | 14.41 | 15.65 |
| Current Liabilities | 116.92 | 96.53 | 47.38 |
| Total Liabilities | 135.58 | 109.60 | 66.34 |
| Property, Plant & Equipment | 113.50 | 105.53 | 74.55 |
| Capital Work in Progress | 0.61 | 0.13 | 2.10 |
| Intangible Assets | 46.41 | 45.37 | 0.11 |
| Investments | 13.38 | 12.69 | 40.34 |
| Inventories | 111.94 | 86.42 | 57.07 |
| Trade Receivables | 85.74 | 64.24 | 45.56 |
| Cash & Equivalents | 28.48 | 13.02 | 13.70 |
| Current Assets | 289.83 | 236.55 | 121.11 |
| Total Assets | 661.05 | 551.28 | 271.14 |
Cash FlowWhere the cash actually went. Often the most honest statement of the three.
| Cash Flow (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Net Cash from Operating Activities | 42.02 | 54.15 | 37.09 |
| Capital Expenditure | 13.98 | 27.68 | 14.90 |
| Net Cash from Investing Activities | -26.25 | -93.46 | -26.86 |
| Net Cash from Financing Activities | -6.25 | 36.16 | 2.08 |
| Net Change in Cash | 9.52 | -3.15 | 12.31 |
Ratio AnalysisProfitability, leverage, liquidity, efficiency and earnings quality — computed by us.
Every ratio below is computed by us from the line items the company disclosed — not copied from anywhere. The arithmetic is standard; the point is that somebody actually did it. Blank cells mean the filing did not disclose the inputs, and we would rather show a gap than invent a number.
| Ratio | FY26 | FY25 | FY24 |
|---|---|---|---|
| Profitability | |||
| EBITDA Margin (%) | 24.8 | 25.4 | 22 |
| EBIT Margin (%) | 21.8 | 22.3 | 20.1 |
| PAT Margin (%) | 16 | 16.5 | 14.9 |
| Return on Equity (%) | 14.3 | 14.5 | 20 |
| Return on Capital Employed (%) | 17.3 | 17 | 23.7 |
| Return on Assets (%) | 10.8 | 11.3 | 15.1 |
| Leverage | |||
| Debt / Equity (x) | 0.16 | 0.17 | 0.15 |
| Net Debt / EBITDA (x) | 0.44 | 0.6 | 0.27 |
| Interest Coverage (x) | 19.03 | 40.9 | 34.97 |
| Liquidity | |||
| Current Ratio (x) | 2.48 | 2.45 | 2.56 |
| Quick Ratio (x) | 1.52 | 1.56 | 1.35 |
| Efficiency | |||
| Asset Turnover (x) | 0.67 | 0.69 | 1.01 |
| Receivable Days | 70 | 62 | 61 |
| Inventory Days | 92 | 83 | 76 |
| Payable Days | 16 | 14 | 21 |
| Cash Conversion Cycle (days) | 146 | 131 | 116 |
| Quality of Earnings | |||
| Operating Cash Flow / PAT (x) | 0.59 | 0.87 | 0.91 |
| Accruals Ratio (%) | 4.4 | 1.5 | 1.4 |
| Capex / Depreciation (x) | 1.01 | 2.29 | 2.79 |
DuPont DecompositionWhy the return on equity is what it is: margin, efficiency, or leverage.
A headline return on equity tells you what. The DuPont decomposition tells you why — whether the return is earned through margin, through asset efficiency, or simply through leverage. Two companies can post an identical ROE for opposite reasons, and only one of them is safe.
| Component | FY26 | FY25 | FY24 |
|---|---|---|---|
| Net Margin (PAT / Revenue) | 16% | 16.5% | 14.9% |
| Asset Turnover (Revenue / Assets) | 0.67x | 0.69x | 1.01x |
| Equity Multiplier (Assets / Net Worth) | 1.33x | 1.28x | 1.32x |
| = Return on Equity | 14.3% | 14.5% | 20% |
| Tax Burden (PAT / PBT) | 0.76x | 0.75x | 0.76x |
| Interest Burden (PBT / EBIT) | 0.95x | 0.98x | 0.97x |
| Operating Margin (EBIT / Revenue) | 22.3% | 22.5% | 20.3% |
Computed from the disclosed statements. Where the filing omits an input, the row is left blank rather than estimated.
Quality of EarningsWhat the statements say when you read them against each other.
What the statements say once you read them against each other. These are observations, not verdicts — every one is arithmetic on the numbers the company itself disclosed, and each is stated so you can go and check it in the filing.
- Interest coverage was 19.03x in FY26. Debt servicing is comfortably covered by operating profit.
Forensic ModelsBeneish, Altman and Piotroski — plus our own final-year check.
Beneish M-Score
M = -1.96An eight-variable model built to detect earnings manipulation, and built to run on exactly two consecutive years — which is what a prospectus gives us. It belongs here more than anywhere: a company about to list has the maximum possible incentive to have dressed up the very years it is about to show you. A score above −1.78 is the threshold at which the model says the accounts merit a closer look. It is a screening signal, not an accusation, and it was calibrated on listed companies elsewhere. Read the eight components, not just the total.
| Component | Value | What it captures |
|---|---|---|
| DSRI Days Sales in Receivables Index (Receivables_t / Sales_t) / (Receivables_t-1 / Sales_t-1) | 1.136 | Above 1 means receivables grew faster than sales. Revenue may be being recognised ahead of collection. |
| GMI Gross Margin Index GrossMargin_t-1 / GrossMargin_t | 1.077 | Above 1 means margins deteriorated. A firm with worsening prospects has more incentive to manipulate. |
| AQI Asset Quality Index AQ_t / AQ_t-1, where AQ = 1 - (CurrentAssets + PPE) / TotalAssets | 1.027 | Above 1 means a rising share of assets is soft (neither current nor fixed) — capitalised costs can hide here. |
| SGI Sales Growth Index Sales_t / Sales_t-1 | 1.175 | Growth is not manipulation. But high-growth firms face more pressure to keep the streak going. |
| DEPI Depreciation Index DepRate_t-1 / DepRate_t, where DepRate = Dep / (Dep + PPE) | 0.946 | Above 1 means assets are being depreciated more slowly — a quiet way to lift reported profit. |
| SGAI SG&A Index (SGA_t / Sales_t) / (SGA_t-1 / Sales_t-1), SGA proxied as employee cost + other expenses | 1.023 | A proxy, because filings rarely break out SG&A cleanly. Read it as a direction, not a precise figure. |
| LVGI Leverage Index Leverage_t / Leverage_t-1, where Leverage = (CurrentLiab + LongTermDebt) / TotalAssets | 1.018 | Above 1 means leverage rose. Debt covenants create pressure to hit numbers. |
| TATA Total Accruals to Total Assets (PAT - CashFromOperations) / TotalAssets | 0.0439 | The gap between reported profit and cash generated. The single heaviest term in the model — and the one that catches profit that never became cash. |
M = -1.96, below the −1.78 threshold. The model does not flag these accounts.
Altman Z″-Score (emerging markets)
Z″ = 12.12 · SafeA distress-prediction model. We use the Z″ variant deliberately: the original Z was calibrated on American manufacturers and misleads badly on Indian services companies. Above 2.6 is the safe zone, 1.1 to 2.6 is grey, below 1.1 is the distress zone. Like every model of its kind it is a screen, not a prophecy.
| X1 — Working Capital / Total Assets | 0.262 |
| X2 — Retained Earnings / Total Assets | 0.704 |
| X3 — EBIT / Total Assets | 0.15 |
| X4 — Net Worth / Total Liabilities | 3.669 |
| Z″ = 3.25 + 6.56·X1 + 3.26·X2 + 6.72·X3 + 1.05·X4 | 12.12 |
Piotroski F-Score (adapted)
3 / 8Nine yes-or-no tests of fundamental strength — except we run eight. One of the original nine asks whether the company issued new shares, which is plainly absurd to ask of a company whose entire purpose at this moment is to issue shares. We drop that test and score out of eight, and we would rather tell you that than quietly fudge it.
- ✓Positive return on assets
- ✓Positive operating cash flow
- ✗Return on assets improving
- ✗Cash flow exceeds profit (quality of earnings)
- ✗Long-term leverage decreasing
- ✓Current ratio improving
- ✗Gross margin improving
- ✗Asset turnover improving
Ratios Nobody Prints
- Contingent liabilities / Net worth: 0.3%
Contingent liabilities of 1.74 cr against a net worth of 497.42 cr — 0.3% of what the company is worth on paper. These are obligations that sit off the balance sheet but could land on it. What they consist of matters as much as the size: a corporate guarantee to a subsidiary is a different animal from a disputed tax demand, and the filing says which. - Related-party revenue / Total revenue: 3.1%
3.1% of revenue in FY26 came from entities connected to the promoters. Revenue you sell to yourself is not the same as revenue you won in the market. - Cash / Short-term borrowings: 0.4x
Short-term borrowings of 70.35 cr against cash of 28.48 cr. Debt that must be refinanced within a year is only comfortable while lenders stay comfortable. - Promoter remuneration / PAT: 3.7%
Managerial remuneration to the promoter group was 2.64 cr against a profit of 71.07 cr. This is a legitimate cost — but it is also a route by which value leaves a company before it ever reaches a minority shareholder.
The Formula NotebookEvery number above, with the working shown. Check us.
Every number we publish, with the working shown. The formula, the same formula with this company’s actual figures put into it, the answer, and what it is for. Check us. That is the point.
PAT ÷ Net Worth71.07 ÷ 497.42What the company earned on the money shareholders have in it. The headline measure of return — and the one the DuPont section takes apart.
EBIT ÷ (Net Worth + Total Borrowings)99.35 ÷ (497.42 + 77.95) = 99.35 ÷ 575.37Return on ALL the capital in the business, borrowed as well as owned. Unlike ROE, it cannot be flattered by taking on debt.
EBITDA ÷ Revenue113.17 ÷ 444.88Operating profitability before the effects of debt, tax and depreciation. What the business earns from the act of trading.
Total Borrowings ÷ Net Worth77.95 ÷ 497.42How much the company has borrowed against what it owns. High is not automatically bad — ask whether the borrowing is being serviced comfortably.
EBIT ÷ Finance Cost99.35 ÷ 5.22How many times over operating profit covers the interest bill. Below about 2x, a meaningful share of what the business earns is going to lenders rather than owners.
(Trade Receivables ÷ Revenue) × 365(85.74 ÷ 444.88) × 365How long the company waits to be paid. Rising receivable days mean revenue is being booked faster than it is collected — which is where a great many accounting problems begin.
Inventory Days + Receivable Days − Payable Days92 + 70 − 16How long cash is tied up in the operating cycle before it comes back. The longer it is, the more working capital the business must fund.
Cash from Operations ÷ PAT42.02 ÷ 71.07Did the profit turn into cash? Profit is an opinion; cash is a fact. When this sits well below 1x for long, the two are drifting apart, and the filing is where you find out why.
(PAT − Cash from Operations) ÷ Total Assets(71.07 − 42.02) ÷ 661.05 = 29.05 ÷ 661.05The share of reported profit that exists on paper rather than in the bank. It is also the heaviest single term in the Beneish model, for good reason.
Institutional Alpha: DRHP Deep Dive
The Indian temperature sensors and allied products market was valued at approximately ₹1,880.00 crore (INR 18.8 billion) in FY2026 and is projected to reach ₹2,880.00 crore (INR 28.8 billion) by FY2031, growing at a CAGR of 8.90%. Tempsens holds a dominant position as the largest manufacturer of contact and non-contact temperature sensors in India, with a 10.50% overall market share in FY2026. Furthermore, Tempsens is the only domestic manufacturer of non-contact temperature sensors (pyrometers and online thermal imagers) in India as of March 31, 2026, holding a 21.30% market share in this fast-growing, high-margin segment. The market is transitioning from import dependency toward localized manufacturing under Make-in-India policies, which strongly benefits backward-integrated players.
Future Planning & Capital Allocation
Tempsens is planning to deploy ₹18.134 crore of Net Proceeds to expand the manufacturing capacities of its electrical heating solutions (Unit VI) and specialized cables (Unit IV). It is also allocating ₹55.00 crore to prepay outstanding bank debt, which will reduce financing costs and improve its debt-to-equity ratios.
Source: p. 128, 138, 160Competitive Position
Tempsens occupies a distinct premium position as the largest domestic player in India's temperature sensor market and the sole domestic manufacturer of pyrometers. Its highly backward-integrated structure and extensive global certifications act as strong barriers to entry against smaller local unorganized competitors.
Source: p. 163, 198, 248Execution Track Record
Under the leadership of the Rathi family, the company has scaled revenues at a 27.23% CAGR to reach ₹444.88 crore in Fiscal 2026. This growth is backed by successful backward integration, a broad international footprint across five countries, and the successful integration of Marathon Heater.
Source: p. 237, 243Shareholding, Syndicate & Leadership
Leadership & Skin in the Game
Leadership: Vinay Rathi (Managing Director)
Litigation: Outstanding direct tax litigation against the Company involves 2 proceedings totaling ₹0.05 crore. Outstanding indirect tax litigation against the Company involves 4 proceedings totaling ₹1.09 crore under appeal. Other civil litigation against the Company includes 2 claim applications under the Motor Vehicles Act filed by Vardichand and Pushkar Puri Goswami for ₹0.012 crore and ₹0.083 crore respectively (totaling ₹0.095 crore). Outstanding criminal litigation against Promoters includes 1 petition filed by Durga Shankar Paliwal against Virendra Prakash Rathi and Vinay Rathi challenging a labour/disciplinary order. Outstanding criminal litigation against Directors includes 1 revision petition filed by Jindal Enterprises against Secure Meters Limited and independent director Bhagwat Singh Babel involving a demand of ₹0.112 crore. Outstanding material civil litigation against subsidiaries includes 1 commercial arbitration application filed by Theia New Consultancy LLP against Tempsens Measurement and Control Private Limited seeking interim relief of ₹11.041 crore.
Auditor / RPT Flags: Statutory auditors issued an unmodified opinion on the Restated Consolidated Financial Information. However, under Companies (Audit and Auditors) Rules, 2014 Rule 11(g), the auditors disclosed that the Holding Company and two subsidiaries did not enable the feature of recording audit trail (edit log) at the database level for their accounting software to log any direct data changes.
🔍 Forensic Findings — What the Footnotes Say
Risks hiding outside the risk section — mined from MD&A, related-party notes, contingent liabilities and litigation. This is the FinMinutes edge.
Theia New Consultancy LLP filed a commercial arbitration application against subsidiary Tempsens Measurement and Control Private Limited before the High Court of Bombay seeking interim relief of ₹11.041 crore, alleging a breach of non-solicitation and confidentiality covenants by channeling business to director-controlled firms.
p. 261, 263Statutory auditors reported that the audit trail (edit log) feature was not enabled at the database level for the accounting software used by the Holding Company and two subsidiaries commencing April 1, 2025, which allows potential direct database modifications without logs.
p. 747, 869The company is unable to trace critical historical corporate records, specifically the Form-32 for the initial appointment of Chairman Virendra Prakash Rathi in September 1990 and Form-2 for the bonus allotment of 30,765 equity shares in October 2004.
p. 31, 44, 114, 688Durga Shankar Paliwal filed a criminal petition against promoters Virendra Prakash Rathi and Vinay Rathi before the District and Sessions Judge, Udaipur on January 25, 2026, challenging a lower court order where cognizance was allegedly not taken regarding their failure to take disciplinary actions against employees.
p. 129, 267, 508, 894Outstanding direct tax litigation against the Company involves 2 proceedings totaling ₹0.05 crore. Outstanding indirect tax litigation against the Company involves 4 proceedings totaling ₹1.09 crore under appeal. Other civil litigation against the Company includes 2 claim applications under the Motor Vehicles Act filed by Vardichand and Pushkar Puri Goswami for ₹0.012 crore and ₹0.083 crore respectively (totaling ₹0.095 crore). Outstanding criminal litigation against Promoters includes 1 petition filed by Durga Shankar Paliwal against Virendra Prakash Rathi and Vinay Rathi challenging a labour/disciplinary order. Outstanding criminal litigation against Directors includes 1 revision petition filed by Jindal Enterprises against Secure Meters Limited and independent director Bhagwat Singh Babel involving a demand of ₹0.112 crore. Outstanding material civil litigation against subsidiaries includes 1 commercial arbitration application filed by Theia New Consultancy LLP against Tempsens Measurement and Control Private Limited seeking interim relief of ₹11.041 crore.
p. 31, 129, 254, 261, 264, 267, 275, 355, 358, 425, 508, 702, 747, 869Statutory auditors issued an unmodified opinion on the Restated Consolidated Financial Information. However, under Companies (Audit and Auditors) Rules, 2014 Rule 11(g), the auditors disclosed that the Holding Company and two subsidiaries did not enable the feature of recording audit trail (edit log) at the database level for their accounting software to log any direct data changes.
p. 31, 129, 254, 261, 264, 267, 275, 355, 358, 425, 508, 702, 747, 869Company's Claims vs Reality
We stress-test each claim against the filing's own data.
Does the F&S Industry Report confirm that Tempsens is the sole domestic producer of non-contact thermal sensors and does the product segment justify its margin structure?
p. 163, 171, 248, 251Proprietary SWOT — Company-Specific
Strengths
- Dominant market position in India as the largest manufacturer of contact and non-contact temperature sensors with an overall 10.50% market share in FY2026.
- Highly backward-integrated manufacturing footprint consisting of 15 facilities (10 in Udaipur, 5 globally) ensuring strict quality controls and fast turnaround times.
- Strong financial discipline and margins, with consolidated EBITDA margin expanding to 24.83% in FY26 and high ROCE of 21.61%.
Weaknesses
- High capital intensity, requiring consistent cash flows and capex to maintain and upgrade specialized plants (₹28.019 crore in FY26 capex).
- Commodity price risk on key raw material inputs such as platinum and copper used in thermocouples and cables.
- Complicated multi-jurisdictional operational and tax compliance overheads across manufacturing facilities in Germany, Poland, UAE, South Korea, and Indonesia.
Opportunities
- Favorable regulatory push toward 'Make in India' and import substitution of advanced thermal and sensing solutions.
- Strong capex trends in domestic process-intensive industries (metals, cement, power, chemicals) accelerating demand for custom engineered heaters and cables.
Threats (material, not boilerplate)
- Intense competition from established global sensor and calibration brands expanding their footprints in India.
- Potential risk of technological obsolescence if process industries shift rapidly to alternate heating or sensing solutions.
Allotment Status
Check your allotment on the registrar's portal → Registrar: KFin Technologies
Allotment is decided by the registrar, not by us and not by the exchange. In an oversubscribed retail book, allotment is by lottery, so a large application does not improve your odds beyond one lot. If money stays blocked after the refund date, the mandate expiry (05 Oct 2026) is the date to raise with your bank.
Analyst Q&A: Burning Questions
Facts from the filing. No recommendation — that layer arrives once our Research Analyst registration is live.
What are the primary objects funded by the Fresh Issue and how will they impact the P&L?
The Fresh Issue proceeds of ₹95.00 crore are primarily directed toward (i) ₹18.134 crore for capex to procure machinery for expanding electrical heating and specialized cable solutions in Udaipur; and (ii) ₹55.00 crore for pre-paying high-interest bank borrowings, which will directly reduce the company's interest burden (₹5.221 crore in FY26).
p. 128, 138, 160How high is the customer and supplier concentration for Tempsens?
Customer concentration is exceptionally low, with the top 10 clients contributing only 18.59% of revenue in FY26. Sourcing concentration is moderate, with the top supplier accounting for 20.77% and the top 10 suppliers contributing 40.33% of raw material purchases in FY26.
p. 198, 717What factors are driving EBITDA margin expansion and net profitability?
Consolidated EBITDA margins expanded to 24.83% in FY26 from 21.98% in FY24, and PAT reached ₹71.07 crore. This was driven by a favorable product mix shift toward higher-margin non-contact sensors, operational integration synergies from Marathon Heater, and economies of scale on raw material sourcing.
p. 237, 242What off-balance sheet or footnote liabilities pose a risk to the business?
Footnote and legal risks include (i) a commercial arbitration claim of ₹11.041 crore against the Tempsens Measurement subsidiary; (ii) statutory audit trail features disabled at the database level; (iii) missing historical corporate filings (Form-32 and Form-2); and (iv) outstanding disputed GST demands under appeal of ₹0.821 crore.
p. 129, 223, 261, 747, 855What Earlier Investors Paid
Early capital takes real risk and is fairly rewarded for it — a large multiple built over many years is normal. What deserves a closer look is a steep step-up in a short window: a round priced cheaply only months before the offer.
| Shareholder | Priced at | When | vs IPO price |
|---|---|---|---|
| Virendra Prakash Rathi | ₹55.63 | 2025-03-20 | 5.4x |
| Vinay Rathi | ₹55.63 | 2025-03-20 | 5.4x |
| Share Sub-division (Face Value ₹100 to ₹4) | — | 2025-04-30 | — |
| Bonus Allotment (10:1) | — | 2025-05-30 | — |
| WhiteOak Capital India Opportunities Fund | ₹247.94 | 2025-12-26 | 1.2x |
Prices are as stated in the filing’s allotment history and are not adjusted for later bonus issues or share splits. Where a company has issued bonus shares, the multiples above understate the true return and can even read as losses. Adjusting for that is on our list; until it is done we would rather show the raw disclosure and tell you its limits than publish a confident number that is wrong.
Lock-in Expiry Calendar
Shares held before the IPO cannot be sold immediately; they unlock in tranches. When a tranche unlocks, more shares become eligible to trade. Retail investors are frequently caught unaware by these dates. The schedule below follows from the listing date; quantities are shown only where the filing discloses them.
- 28 Feb 2028Minimum Promoters' Contribution18 months
- 28 Feb 2027Promoters' shareholding in excess of 20%6 months
- 28 Feb 2027Entire pre-Offer Equity Share capital of our Company (other than the Minimum Promoters' Contribution and secondary OFS shares)six months
An unlock means more shares may be sold — not that they will be, and not that the price will move. We state the dates; what you do with them is your call.
What Changed Between the DRHP and the RHP
Companies file a draft prospectus, then a final one. The changes in between are rarely reported, and they can be revealing.
| Item | In the DRHP | In the RHP / Addendum |
|---|---|---|
| Reporting Period and Restated Financial Statements The reporting period was rolled forward by one full financial year, dropping Fiscal 2023 and adding Fiscal 2026. | Restated Consolidated Financial Information covering Fiscals 2025, 2024, and 2023 | Restated Consolidated Financial Information covering Fiscals 2026, 2025, and 2024 |
| Fresh Issue Fundraising Size The proposed Fresh Issue fundraising size was reduced by ₹23.00 crore between the draft and final prospectus. | Up to ₹118.00 crore | Up to ₹95.00 crore |
| Offer for Sale (OFS) Share Count The total number of shares offered by the Selling Shareholders under the OFS was increased by 0.0575 crore equity shares. | Up to 1.7925 crore Equity Shares | Up to 1.8500 crore Equity Shares |
| OFS Shareholder Contributions Individual shareholder contributions to the OFS were revised; Amit Talesara, Chandra Prakash Talesara, Ankit Talesara, and Nirmal Kumar Pande increased their offered portions, while Puneet Talesara reduced his portion by 0.2086 crore shares. | Amit Talesara: up to 0.3637 crore shares; Puneet Talesara: up to 0.3380 crore shares; Chandra Prakash Talesara: up to 0.3636 crore shares; Ankit Talesara: up to 0.3636 crore shares; Nirmal Kumar Pande: up to 0.3636 crore shares | Amit Talesara: up to 0.4816 crore shares; Puneet Talesara: up to 0.1294 crore shares; Chandra Prakash Talesara: up to 0.3788 crore shares; Ankit Talesara: up to 0.3788 crore shares; Nirmal Kumar Pande: up to 0.4815 crore shares |
| Employee Reservation Portion Allocation The reservation allocation for eligible employees was finalized at ₹1.50 crore in the RHP. | Unspecified / up to ₹ [●] crore | Up to ₹1.50 crore |
| Net Proceeds Allocation for Capital Expenditure (Capex) Planned Net Proceeds allocation for capital expenditure was reduced by ₹17.245 crore, dropping civil work and miscellaneous fixed asset funding entirely from the Objects of the Offer. | ₹35.379 crore total (comprising ₹18.361 crore for machinery, ₹15.488 crore for civil work, and ₹1.530 crore for miscellaneous fixed assets) | ₹18.134 crore total, allocated strictly for machinery and equipment |
| Pre-Offer Promoter Direct Shareholding Direct shareholding of the Promoters declined by 9.50% following the transfer of 0.7663 crore shares from Promoter Virendra Prakash Rathi to the Rathi Family Trust (classified under Promoter Group) on July 23, 2026. | 55.63% (4.4871 crore Equity Shares) | 46.13% (3.7208 crore Equity Shares) |
| Outstanding Material Civil Litigation against Subsidiaries A major civil dispute alleging breach of non-solicitation and confidentiality covenants was initiated against the newly acquired subsidiary, Tempsens Measurement, seeking an interim relief of ₹11.041 crore. | Nil | 1 active commercial arbitration proceeding filed by Theia New Consultancy LLP against subsidiary Tempsens Measurement and Control Private Limited seeking interim relief of ₹11.041 crore |
| Outstanding Criminal Litigation against Promoters A new criminal petition filed on January 25, 2026, by a former employee was added to outstanding litigations against the Promoters. | Nil | 1 active criminal petition filed by Durga Shankar Paliwal against Promoters Virendra Prakash Rathi and Vinay Rathi challenging a lower court order on labour/disciplinary actions |
| Auditor Disclosures on Accounting Software Compliance A newly reported internal control and statutory compliance flag regarding database-level edit logs was disclosed by statutory auditors at the RHP stage. | No material statutory non-compliance reported by statutory auditors | Statutory auditors disclosed under Companies (Audit and Auditors) Rules, 2014 Rule 11(g) that the Holding Company and two subsidiaries did not enable the feature of recording audit trail (edit log) at the database level |
Educational, grounded entirely in the company's filings (DRHP/RHP). Not investment advice. FinMinutes does not provide buy/sell recommendations.