Can Tempsens IPO deliver long-term growth for high-risk investors?
Business
Incorporated in 1990, Tempsens manufactures customized temperature sensing solutions, electrical heating solutions and specialised cables. It exports products to over 80 countries including United Arab Emirates, Germany and Poland. It operates 15 manufacturing units across the world along with its joint ventures. Temperature sensing solutions segment contributes 45% to the revenue, specialized cables contribute 35% and the rest comes from electric heating solutions. According to the Frost & Sullivan, the company is the largest manufacturer of contact and non-contact temperature sensors in India in terms of revenue, with a market share of 10.5% in FY26. It also had 21.3% of market share in non-contact temperature sensors in FY26. It is one of the largest manufacturers of electrical heaters in India in terms of installed capacity FY26. The company is the only manufacturer of fibre optic temperature sensors, thermal profiling systems, pyrometers and online thermal imagers in India in FY26.
ET BureauThrough the Lens Healthy growth and strong portfolio seen as upside; customer concentration and premium pricing warrant a deeper look
Financials
Revenue from operations rose 27.2% annually to ₹444.9 crore while net profit grew 31.8% annually to ₹71.1 crore between FY24 and FY26. Operating profit before interest, tax, depreciation and amortisation (Ebitda) increased 36.1% to ₹113.2 crore during the same period. In FY26, revenue rose 17.5%, Ebitda increased 16.3% while net profit grew 13.6% year-on-year. Ebitda margin dropped to 24.8% in FY26 from 22% in FY24.
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Valuation
The company does not have any listed comparable peer in India. Considering the post-IPO equity and net profit for FY26, the company demands a price-earnings (P/E) multiple of 35 and price to sales multiple of six.
