Tempsens Instruments (India)

Thermal engineering player

Largest manufacturer of contact and non-contact temperature sensors in India

Tempsens Instruments (India) 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.

Temperature sensing solutions product portfolio comprises thermocouple, resistance temperature detector, infrared pyrometer, online thermal imager, furnace monitoring camera, temperature and pressure gauge, temperature calibrator, level switch and gauge, diaphragm seals, fiber optic temperature sensor and heat flux sensor. The electrical heating solutions business comprises products of immersion heater, process heater, and cartridge heater, band heater, and coil heater, floor heating mats, furnace heater, laboratory electrical furnaces and process electrical furnaces. Similarly the specialized cable solutions business comprises products of LV control cable, LV Power cable, instrumentation cable, heat trace cable, thermocouple/RTD cable, and mineral insulated metal sheath cable and nickel alloy conductors.

It is the largest manufacturer of contact and non-contact temperature sensors in India in terms of revenue as of March 31, 2026, with a market share of approximately 10.5% in the temperature sensor segment in Fiscal 2026. It is also the only Indian manufacturer of non-contact temperature sensors as of March 31, 2026, and held approximately 21.3% of the non-contact temperature sensor market share in Fiscal 2026. By indigenizing non-contact temperature sensor development, it have reduced reliance on foreign suppliers and established a strong leadership position. In FY26 revenue from operation about 44.59% is from temperature sensing solutions, 20.70% from electrical heating solutions and 34.71% is from specialized cables.

Offerings of the company are tailored to address each customer’s technical requirements. It also manufactures products for a range of industrial applications, offering product customization to meet specific customer requirements. By combining its technical expertise with a collaborative approach to customer relationships, the company delivers solutions that address complex thermal management and cable challenges across diverse industries. With its strong sales and operations teams, it is able to respond quickly to client needs, ensuring timely and effective delivery of customized solutions.

Revenues of the company is well-balanced between project-based/OEM business and maintenance, repair and operations (“MRO”) business. Project-based and OEM revenue is generated through installations in new or existing facilities or as a specified machine component. MRO revenue arises from customers maintaining and repairing components such as sensors, cables and heaters, which are typically replaced after reaching the end of their service life. This business mix supports a stable and ongoing revenue stream, reducing dependence on one-time sales and contributing to long-term sustainability. In FY26 revenue from operations while MRO business account for 32.45% the balance is from projects/OEM.

The amalgamation of Marathon Heater with the company, approved by the National Company Law Tribunal, Ahmedabad, on February 6, 2025 and with an appointed date of April 1, 2024, reflects its strategic focus on integrating related product lines and customer bases for long-term growth. Previously, Marathon Heater was part of its promoter group, and the company held a minority stake in Marathon Heater. Marathon Heater specialised in industrial heaters and thermal engineering solutions, overlapping with its own activities. This integration was undertaken to achieve operational synergies, consolidate resources and expertise, and offer a more comprehensive product portfolio. As a result, its capabilities in electrical heating solutions have expanded, allowing it to provide broader and more efficient solutions for customers.

Additionally, the company acquired a majority stake in Tempsens Measurement and Control Private Limited (formerly Techin Gauges India Private Limited). This acquisition has expanded its manufacturing capabilities in temperature and pressure gauges and enabled it to integrate diaphragm seals and level products into its product portfolio. In addition, it have incorporated a joint venture company, Victura Tempsens Technologies Private Limited, in Udaipur, India, to manufacture, assemble, market and sell exhaust gas heater components and assemblies for commercial vehicles and allied products.

The end-user industries include power, steel, oil and gas, cement, chemicals, plastics, automotive, defence and space. In addition, it supply a broad range of OEMs, such as manufacturers in green energy, including wind, solar, fuel cells and battery storage as well as plastic injection moulding machine manufacturers, defence, aerospace companies and other advanced technology sectors. In FY26 revenue from operations, about 21.45% is from petrochemicals, 19.68% from metals, 12.27% from power, 6.95% from defence & nuclear, 9.42% from manufacturing, 6.74% from glass, 3.90% from plastic, 9.58% from trading and 9.99% others.

Between April 1, 2023 and March 31, 2026, the company has exported products to more than 80 countries, supported by its subsidiaries (including step down subsidiaries) in India, United Arab Emirates, Germany and Poland penetrating markets across Asia Pacific, Africa & Middle East and North Africa, Europe, and North and South America. Of total revenue from operations, the contribution of sales outside of India was 28.52% [Europe 9.74%, Asia Pacific 6.68%, and Africa/MENA 10.01%. Americas 2.09%] in FY26 and 26.7% in FY25.

Currently the company operate 15 manufacturing units across the world, of which ten are located in Udaipur (Rajasthan, India) and balance five are located outside of India i.e. United Arab Emirates, Republic of Korea, Indonesia, Germany and Poland.

It is also one of the very few manufacturers in India to hold the ASME U-Stamp certification for pressure vessels as of March 31, 2026. In addition, backward integration has given it greater control over production and quality.

The company as of March 31, 2026, is among the very few companies in the world with a backward-integrated manufacturing facility for thermocouples, cables, and electrical heaters, located at Udaipur, India. Key in-house capabilities now include alloy melting, hot-rolling, annealing, mineral-insulated cable manufacturing, machining, final assembly and calibration. For its heater products, it now manufacture heating alloys, produce tubular heating elements, fabricate vessel and perform final assembly including instrumentation, process connections and panel integration entirely in-house. It also produce the thermocouple conductor used in thermocouple cables. This integrated approach has increased operational control, enhanced product consistency, and allowed it to shorten lead times.

It have acquired 50.00% of the share capital of Tempsens Instruments GmbH, Germany, from its promoter and managing director, Vinay Rathi, and Basant Rathi, pursuant to the agreement of sell and purchase of shares dated September 23, 2025 (as amended by the addendum dated December 8, 2025). Accordingly, Tempsens Instruments GmbH was a Joint Venture of the company from December 17, 2025 until January 15, 2026 and became subsidiary with effect from January 16, 2026, upon the company acquiring control over Tempsens Instruments GmbH pursuant to the voting rights, agency and governance agreement dated January 16, 2026, which established a governance framework granting company the ability to direct the activities of Tempsens Instruments GmbH. Tempsens Polska Sp. z o.o., Poland, a subsidiary of Tempsens Instruments GmbH, has, as a consequence, also become its step-down subsidiary with effect from January 16, 2026.

The offer, objects of the issue

The offer comprises both fresh issue of equity shares of face value of Rs 4 each aggregating up to Rs 95 crore and an offer for sale of up to 18,500,000 equity shares of face value of Rs 4 each. Offer for sale component comprises sale of 9897743 equity shares by promoters and 8602257 equity shares by other selling shareholders. The promoter equity share sale comprises 4815543 equity shares by Amit Talesara, 1294480 equity shares of Puneet Talesara and 3787720 equity shares of C P Talesara.

Of the net proceeds, the company intends to use Rs 18.134 crore towards funding certain capital expenditure towards (i) electrical heating solutions and (ii) specialized cable solutions, Rs 55 crore towards prepayment of certain borrowings and balance towards general corporate purposes.

Total outstanding borrowings (on a consolidated basis) as of July 31, 2026 were Rs 108.316 crore.

Strengths

Largest manufacturer of contact and non-contact temperature sensors in India in terms of revenue and one of the largest manufacturers of electrical heaters in India with a focus on indigenization resulting in high entry barriers.

Diversified business model with broad product portfolio, wide industry coverage, and balanced mix of projects and MRO revenue. MRO orders provide a stable, recurring revenue stream, less dependent on capital expenditure cycles and strongly linked to process uptime, regulatory compliance, and lifecycle management.

Generate revenue from a broad spectrum of industries. Moreover contributions from top 10 customers have shown a consistent downward trend, remaining consistently at or under 25.00% of revenue from operations.

Global manufacturing and distribution channel presence enhances its global operational efficiency and helps ensure product quality and timely delivery to international markets.

Integrated manufacturing operations increased operational control, enhanced product consistency, and allowed it to shorten lead times.

Weakness

Revenue from repeat customers in FY26 stood at 46.35%, 71.01% and 67.38% in FY26, FY25 and FY24 respectively.

Performance is influenced by demand trends in certain end-user industries, in particular, metal and petro chemical industries which collectively contributed 41.13%, 42.90%, and 41.52% of its revenue from operations for Fiscals 2026, 2025, and 2024, respectively.

Significant volatility, increases, fluctuations, shortages, or delays in the supply of primary raw materials may adversely impact business.

Significant concentration of manufacturing units at Udaipur in Rajasthan, India.

Any delay, modification, cancellation, or adverse change in government policies, procurement processes, contract terms, or regulatory requirements applicable to its products could materially and adversely affect business of the company.

Valuation

Consolidated re-stated revenue for the fiscal ending March 2026 stood higher by 18% to Rs 444.88 crore. With OPM contract by 140 bps to 22.5%, the growth of OP was 11% to Rs 99.89 crore. Finally, net profit after MI was Rs 71.07 crore, a growth of 14%. Financial and operational results for Fiscal 2026 and Fiscal 2025 are not directly comparable with previous periods, as they reflect the acquisition of Tempsens Instruments GmbH and Tempsens Polska sp. z o.o. in Fiscal 2026 and the amalgamation of Marathon Heater (India) Private Limited in Fiscal 2025.

On expanded equity, the EPS for FY2026 was - Rs 8.5. On upper price band, the PE works out to 35.3 times of its FY26 EPS. The P/BV stood at 4.2 times and EV/Sales stood 5.8 times.

Repayment of Rs 55 crore from net proceeds will bring the borrowings down by about 50.7774%, resulting in lower interest outgo. The EPS for FY26 works out to Rs 8.8 if 50.78% of its interest cost is removed, keeping all other items, including tax rate, same. The reworked PE stands at 34.1 times.

There are no listed comparable companies in India in terms of its business operations.