Tempsens Instruments India Ltd (May Subscribe)

Highlights

Tempsens Instruments India Limited (TIIL) incorporated in 1990, is a thermal engineering and specialised cable manufacturer, engaged in the design and manufacture of customized temperature sensing solutions, electrical heating solutions and specialised cables. Its product offering has expanded from 7 categories in FY20 to 13 categories in 3 verticals during FY26.

TIIL is the largest manufacturer of contact and non-contact temperature sensors in India in terms of revenue, with a market share of 10.5 pct in the temperature sensor segment in FY26. They are also the only Indian manufacturer of non-contact temperature sensors, and holds 21.3 pct of the non-contact temperature sensor market share in FY26.

TIIL’s customer base expanded from 2,600+ customers to 3,800+ customers between FY25-26, and has served more than 1,000 unique customer between FY24-26. They also exported its products to more than 80 countries including UAE, Germany and Poland penetrating markets across APAC, MENA, EU, Africa, and North & South America.

Out of the total proceeds of Rs. 6,500 mn, Rs. 181 mn would go towards funding electrical heating solutions and specialized cable solutions, Rs. 550 mn would go towards pre-payment or scheduled re-payment, in full or in part, of certain outstanding borrowings availed by the company, and Rs. 219 mn would go towards funding general corporate purposes. Additionally, 5,550 mn is going towards promoter and investor selling shareholders.

Key Highlights

• Global temperature sensors market valued at USD 4.3 bn in CY25, projected to grow at 8.1 pct CAGR between CY25-30 reaching USD 6.3 bn. Whereas, Indian market is projected to grow from Rs. 18.8 bn to Rs. 28.8 bn by FY31 at CAGR of 8.9 pct. Global Specialised Industrial Cable market valued at USD 33.5 bn in CY25, projected to grow at a CAGR of 8.3 pct between CY25-30, reaching USD 49.8 bn, while India market is projected to grow from Rs. 128 bn to Rs. 273 bn by FY31 at 16.3 pct CAGR. Global heating solutions market valued at USD 13.2 bn in CY25, projected to grow at 7.4 pct between CY25-30 reaching USD 18.9.

• TIIL follows a two-pronged model combining Project/OEM orders with recurring MRO replacement business, where project wins greenfield and brownfield setups demonstrating technical credibility and establish customer relationships in high-barrier, approval-driven market. While MRO orders from existing customers provide stable, recurring revenue linked to uptime, compliance and lifecycle needs. Together, project wins strengthen infrastructure foothold and drive repeat MRO orders.
• TIIL primarily follows a make-to-order model, with most products custom-built for complex applications. Its integrated engineering, design and manufacturing capabilities translate customer requirements into precise production drawings, ensuring high standard of accuracy, performance and timely delivery.
• TIIL, along with its JVs, operates 15 manufacturing units globally, including 10 in Udaipur, India and 5 overseas, enabling backward integration, quality control and timely international delivery. Additionally, its 28-distributor network supports product distribution across 80+ countries.
• R&D is central to TIIL’s product development strategy, supporting evolving market requirements, technological advancement and a strong innovation pipeline, with continued focus on developing new products and ongoing initiative of slot RTDs, medium-voltage heaters, nuclear reactor pressuriser heaters, and next-generation infrared pyrometers and online thermal imagers.
• TIIL, along with its subsidiaries and JVs, holds 12 patents, 8 registered trademarks, 1 copyright in India and 39 trademark across oversees jurisdictions. They also has filed applications for 1 patent, 4 trademarks in India and 3 trademarks across various oversees jurisdictions, which are pending.
• TIIL’s key growth strategies include (i) To expand and commercialize new products by leveraging R&D capabilities and technological partnerships, (ii) scale established product lines, (iii) maintain and expand global presence and exports, (iv) pursue organic and inorganic growth through JVs and subsidiaries, (v) improve operational efficiency and expand manufacturing capacity, and (vi) expand the replacement business and diversify industry presence to drive resilient, annuity-style growth.
• The sales of the company have grown by 27.24 pct CAGR over FY24-26 and EBITDA/profit has grown 36.11 pct CAGR/31.85 pct CAGR over the same period. In FY26, the company reported sales of Rs. 4,449 mn, rose 17.54 pct YoY. EBITDA of the company increased 16.34 pct YoY to Rs. 1,132 mn. In FY26, the company posted profit of Rs. 711 mn, up 13.58 pct YoY.

Key Risk

• TIIL’s performance is significantly influenced by demand trends in certain end-user industries like metal, power and petrochemical, any negative developments in this sectors may adversely affect its results.
• TIIL is reliant on subsidiaries / JVs for international market entry and product launches exposing it to operational and strategic risks, as any difference in strategic priorities, operational approaches or risk appetites may led to disagreements or delays in decisions.

Financial Performance

Source: – RHP.

Valuation

Tempsens specialises in thermal engineering solutions, which includes their 3 key verticals, Temperature sensing solutions, Electrical Heating Solutions and Specialised Cables that are tailored to the needs of the customer. Tempsens along with its subsidiaries and JVs provides thermal engineering solutions with manufacturing facilities in India, Indonesia, UAE, Poland, Germany and South Korea. Backed by decades of experience, positions them to handle complex and critical industrial applications, fosters high customer retention, and creates strong entry barriers for new competitors. At the upper end of the price band of Rs. 300, the issue is priced at an PE of 35.4x its FY26 post issue capital. The issue appears to be fully priced. However, Only high risk investors may apply for listing gains.

Disclaimer: The views shared in blogs are based on personal opinions and do not reflect the company’s views. Investment involves risk, and it is advisable to consult a financial advisor before making any investment through the app. The decision to invest is solely that of the investor, and the company or its communication cannot be held responsible for it.