Tempsens Instruments (India) Limited is launching its ₹650 crore initial public offering from August 20 to August 24, 2026. The IPO comprises a ₹95 crore fresh issue and an offer for sale of 1.85 crore equity shares worth ₹555 crore at the upper price band. The company operates across temperature-sensing solutions, electrical heating solutions and specialised cables, with strong revenue and profit growth over FY24-FY26. However, its business also carries exposure to project cycles, industrial capital expenditure, working-capital requirements and raw-material price volatility.
This article is based on the Red Herring Prospectus dated August 14, 2026 and publicly available IPO information. Investors should verify the final Prospectus, exchange filings, subscription data and allotment details before investing. IPO investments involve market and business risks, and SEBI does not guarantee the accuracy of the offer document or the company's prospects.
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Table of Contents
- Tempsens Instruments IPO Details
- What Does Tempsens Instruments Do?
- Customers and End-Use Industries
- Tempsens Instruments Business Model
- Tempsens Instruments Product Mix
- Tempsens Instruments Geographic Mix
- Manufacturing and Global Presence
- Objects of the IPO
- Who Is Selling Shares?
- Tempsens Instruments Financial Performance
- Working Capital Analysis
- Tempsens Instruments IPO Valuation
- Key Strengths of Tempsens Instruments IPO
- Key Risks of Tempsens Instruments IPO
- What Should Investors Check Before Applying?
- Tempsens Instruments IPO Review: Investor View
- Conclusion
The Tempsens Instruments IPO has a total issue size of ₹650 crore, comprising both a fresh issue and an offer for sale. The fresh issue will provide ₹95 crore of capital to the company, while the remaining ₹555 crore will be raised through the sale of existing shares by selling shareholders.
| Particular |
Details |
| Company |
Tempsens Instruments (India) Limited |
| Issue type |
Fresh issue plus offer for sale |
| Total issue size |
₹650 crore |
| Fresh issue |
₹95 crore |
| Offer for sale |
1.85 crore equity shares |
| Price band |
₹285-₹300 per share |
| Face value |
₹4 per share |
| Lot size |
50 shares |
| Minimum retail investment |
₹15,000 at the upper band |
| Anchor bidding |
August 19, 2026 |
| IPO opens |
August 20, 2026 |
| IPO closes |
August 24, 2026 |
| Basis of allotment |
August 25, 2026 |
| Refund/share credit |
August 27, 2026 |
| Expected listing |
August 28, 2026 |
| Exchanges |
BSE and NSE |
| Lead managers |
ICICI Securities and JM Financial |
| Registrar |
KFin Technologies |
At the upper price band of ₹300 per share, the minimum retail application is 50 shares, requiring ₹15,000. Applications must be made in multiples of 50 shares.
Retail investors have been allocated not less than 35% of the net offer, QIBs not more than 50% and NIIs not less than 15%, subject to the final offer structure.
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Tempsens Instruments was incorporated on September 14, 1990. The company provides customised thermal engineering and industrial measurement products used to monitor, control and manage temperature in manufacturing processes.
Its products are used in applications where temperature accuracy, process safety, reliability and operating efficiency are important.
The business is divided into three principal verticals.
1. Temperature Sensing Solutions
This segment includes contact and non-contact temperature sensors, thermocouples, resistance temperature detectors, infrared temperature measurement products and related systems.
Temperature sensing remains the company's largest product category and is central to its industrial measurement business.
2. Electrical Heating Solutions
Tempsens manufactures industrial heaters and process-heating products for applications that require controlled or high-temperature heating.
This vertical has expanded significantly in recent years and accounted for 20.70% of revenue in FY26, compared with 3.90% in FY24.
3. Specialised Cables
The company manufactures cables designed for industrial, high-temperature and technically demanding applications.
Specialised cables accounted for 34.71% of revenue in FY26, making this the second-largest product category after temperature sensing.
The company describes itself as the largest manufacturer of contact and non-contact temperature sensors in India by revenue as of March 31, 2026, with an estimated 10.5% market share in India's temperature-sensor segment. This industry position is based on the Frost & Sullivan industry report cited in the RHP and should not be treated as a guarantee of future performance.
Tempsens serves customers across several industrial sectors, including:
The company served more than 3,800 customers as of March 31, 2026. Its top 10 customers accounted for 18.59% of revenue from operations in FY26.
The relatively modest contribution from the top 10 customers indicates that revenue is not excessively concentrated among a small group of customers. However, individual project orders and exposure to specific industrial sectors remain important considerations.
Tempsens earns revenue primarily through two broad channels: Projects/OEM and MRO.
1. Projects/OEM Business
The Projects/OEM business supplies products for new plants, expansion projects, equipment manufacturers and large industrial applications.
Projects/OEM contributed 67.55% of revenue from operations, excluding scrap sales and export incentives, in FY26.
This business can generate large orders and benefit from industrial capital expenditure. However, it can also involve longer sales cycles, project delays and fluctuations in order timing.
2. MRO Business
The MRO business caters to maintenance, repair and replacement requirements at operating industrial facilities.
MRO contributed 32.45% of revenue in FY26. This segment can provide repeat demand as industrial equipment requires periodic replacement and maintenance, although demand remains linked to plant utilisation and overall industrial activity.
The high contribution from Projects/OEM means that project execution and industrial capex trends will remain important drivers of future performance.
Tempsens has gradually diversified its revenue across its three major product categories: temperature sensing solutions, electrical heating solutions and specialised cables. The shift in contribution across these segments indicates a growing role for electrical heating solutions in the company's overall business.
FY24 Product Mix
| Product category |
FY24 |
| Temperature sensing solutions |
60.58% |
| Electrical heating solutions |
3.90% |
| Specialised cables |
35.52% |
FY25 Product Mix
| Product category |
FY25 |
| Temperature sensing solutions |
46.48% |
| Electrical heating solutions |
16.79% |
| Specialised cables |
36.73% |
FY26 Product Mix
| Product category |
FY26 |
| Temperature sensing solutions |
44.59% |
| Electrical heating solutions |
20.70% |
| Specialised cables |
34.71% |
Temperature sensing solutions remained the largest business in FY26, although their contribution declined from 60.58% in FY24 to 44.59%.
At the same time, electrical heating solutions expanded sharply from 3.90% to 20.70% of revenue. This indicates a significant shift in the company's product mix following expansion and acquisition-related activities.
Greater product diversification can reduce dependence on a single product line. However, operating across different products and technologies also increases the company's execution requirements.
Tempsens remains primarily focused on India, although its international operations have grown steadily. The changing geographic mix indicates a gradual increase in the contribution of overseas markets.
FY24 Geographic Revenue Mix
| Geography |
FY24 |
| India |
78.51% |
| Europe |
10.42% |
| Asia Pacific |
3.95% |
| Africa and MENA |
5.04% |
| North America |
1.78% |
| South America |
0.31% |
FY25 Geographic Revenue Mix
| Geography |
FY25 |
| India |
73.30% |
| Europe |
10.16% |
| Asia Pacific |
7.65% |
| Africa and MENA |
6.60% |
| North America |
1.71% |
| South America |
0.57% |
FY26 Geographic Revenue Mix
| Geography |
FY26 |
| India |
71.48% |
| Europe |
9.74% |
| Asia Pacific |
6.68% |
| Africa and MENA |
10.01% |
| North America |
1.58% |
| South America |
0.51% |
Revenue outside India increased from ₹58.64 crore in FY24 to ₹125.82 crore in FY26.
The growing overseas contribution provides geographic diversification and access to international customers. However, international operations also expose the company to foreign-exchange movements, regulatory requirements, geopolitical risks, local competition and execution challenges.
Tempsens and its joint ventures operate 15 manufacturing units globally:
- 10 units in Udaipur, Rajasthan, India
- One unit in the UAE
- One unit in South Korea
- One unit in Indonesia
- One unit in Germany
- One unit in Poland
The manufacturing and subsidiary network supports international sales and local customer servicing.
However, the concentration of 10 manufacturing facilities in Udaipur creates a location-specific operational risk. Any significant disruption involving infrastructure, logistics, utilities, labour availability, natural events or local regulations could affect multiple facilities simultaneously.
The company will receive ₹95 crore from the fresh issue. The RHP identifies the following uses of the proceeds:
| Use of proceeds |
Amount |
| Capital expenditure for electrical heating solutions and specialised cable solutions |
₹18.13 crore |
| Prepayment or repayment of borrowings |
₹55 crore |
| General corporate purposes |
Balance amount |
The fresh issue is therefore directed mainly towards debt repayment, with a smaller allocation towards capacity and product-related capital expenditure.
The ₹555 crore OFS component will be received by the selling shareholders rather than by Tempsens. Therefore, investors should not consider the entire ₹650 crore IPO size as capital available for the company's expansion.
The RHP identifies the following selling shareholders in the Tempsens Instruments IPO:
| Selling shareholder |
Shares offered |
| Amit Talesara |
Up to 48,15,543 |
| Puneet Talesara |
Up to 12,94,480 |
| Chandra Prakash Talesara |
Up to 37,87,720 |
| Ankit Talesara |
Up to 37,87,720 |
| Nirmal Kumar Pande |
Up to 48,14,537 |
| Total |
Up to 1,85,00,000 |
The weighted average acquisition cost reported for several selling shareholders is substantially below the IPO price.
This is not unusual in an OFS, but it means the selling shareholders are monetising part of their holdings at a substantial premium to their acquisition cost. Investors should therefore distinguish between capital raised for the company and proceeds received by existing shareholders.
Tempsens has reported strong growth in revenue, EBITDA and profit between FY24 and FY26. The year-wise financial performance highlights the company's growth trajectory, margin movement, debt position and cash-flow trends.
FY24 Financial Performance
| Financial metric |
FY24 |
| Revenue from operations |
₹274.81 crore |
| EBITDA |
₹61.13 crore |
| EBITDA margin |
21.98% |
| Profit after tax |
₹40.92 crore |
| PAT margin |
14.72% |
| Total borrowings |
₹30.13 crore |
| Cash flow from operations |
₹37.09 crore |
| ROE |
20.02% |
| ROCE |
22.82% |
| Debt/equity |
0.15x |
| Debt/EBITDA |
0.49x |
FY25 Financial Performance
| Financial metric |
FY25 |
| Revenue from operations |
₹378.53 crore |
| EBITDA |
₹97.32 crore |
| EBITDA margin |
25.45% |
| Profit after tax |
₹62.56 crore |
| PAT margin |
16.36% |
| Total borrowings |
₹71.83 crore |
| Cash flow from operations |
₹54.15 crore |
| ROE |
14.08% |
| ROCE |
23.08% |
| Debt/equity |
0.16x |
| Debt/EBITDA |
0.74x |
FY26 Financial Performance
| Financial metric |
FY26 |
| Revenue from operations |
₹444.88 crore |
| EBITDA |
₹113.17 crore |
| EBITDA margin |
24.83% |
| Profit after tax |
₹71.07 crore |
| PAT margin |
15.59% |
| Total borrowings |
₹77.95 crore |
| Cash flow from operations |
₹42.02 crore |
| ROE |
13.54% |
| ROCE |
21.61% |
| Debt/equity |
0.15x |
| Debt/EBITDA |
0.69x |
The company reported FY26 revenue from operations of ₹444.88 crore, EBITDA of ₹113.17 crore and PAT of ₹71.07 crore.
Between FY24 and FY26, revenue grew at a 27.23% CAGR, EBITDA at 36.07% and PAT at 31.79%.
Revenue Growth Is Strong but Has Moderated
Revenue increased 61.9% between FY24 and FY26. However, annual growth moderated to 17.53% in FY26 from 37.74% in FY25.
Investors should assess whether the high FY25 growth rate was partly supported by acquisitions, amalgamation or an unusually strong project cycle. Sustaining a high growth rate after listing will be important to justify the IPO valuation.
Margins Have Improved but Softened in FY26
EBITDA margin increased from 21.98% in FY24 to 25.45% in FY25 before declining to 24.83% in FY26.
PAT margin followed a similar pattern, rising from 14.72% to 16.36% before declining to 15.59% in FY26.
The moderation is not necessarily alarming, but investors should monitor whether margins stabilise as the company expands its electrical heating and specialised-cable businesses.
Debt Remains Moderate
Debt/equity remained around 0.15-0.16x during FY24-FY26, while debt/EBITDA stood at 0.69x in FY26.
The proposed repayment of ₹55 crore from IPO proceeds could further reduce borrowings, depending on the final utilisation and repayment schedule.
Operating Cash Flow Needs Attention
Cash flow from operations declined from ₹54.15 crore in FY25 to ₹42.02 crore in FY26 despite higher reported profit.
This difference suggests that working capital absorbed a meaningful amount of cash. Consequently, investors should assess cash generation alongside PAT rather than relying solely on reported earnings.
Return Ratios Have Declined
ROE declined from 20.02% in FY24 to 13.54% in FY26, while ROCE remained relatively stable at 21.61% in FY26.
The decline in ROE partly reflects the substantial increase in net worth. A lower ROE does not automatically indicate deterioration, but future earnings growth will need to generate attractive returns on the enlarged capital base.
Working-capital intensity has increased significantly, which is an important area to monitor in the Tempsens Instruments IPO.
| Financial year |
Net working-capital days |
| FY24 |
152 |
| FY25 |
193 |
| FY26 |
210 |
Net working-capital days increased from 152 in FY24 to 210 in FY26.
The RHP attributes this increase to higher inventory and trade receivables, customised product requirements, dispatch delays and the impact of the Marathon Heater amalgamation and acquisitions.
Heating products may require longer manufacturing, delivery and collection cycles, which can increase the amount of capital tied up in operations.
This is one of the key metrics to monitor after listing. A company can report rising sales and profits while experiencing cash-flow pressure if inventory and receivables grow faster than revenue.
Investors should therefore monitor:
- Inventory growth relative to revenue
- Receivable days
- Cash conversion
- Project-related working-capital requirements
- Operating cash flow versus PAT
- Additional borrowing requirements
If working-capital days continue to rise, Tempsens may require additional financing despite maintaining accounting profitability.
At the upper price band of ₹300, the IPO implies the following approximate valuation metrics based on FY26 financials.
| Metric |
Calculation |
Value |
| Market Cap |
₹300 × 10.083 Cr shares |
₹3,025 Cr |
| Price-to-Sales |
₹3,025 Cr ÷ ₹444.88 Cr |
6.8x |
| Price-to-Book |
₹3,025 Cr ÷ ₹496.89 Cr |
6.1x |
| P/E (Basic EPS) |
₹300 ÷ ₹8.35 |
35.9x |
| P/E (Diluted EPS) |
₹300 ÷ ₹8.33 |
36.0x |
| EV/EBITDA |
EV ÷ FY26 EBITDA |
~26x |
The approximate post-issue share count is derived from the pre-issue equity base of approximately 8.067 crore shares plus the fresh issue of ₹95 crore at the final price.
The exact valuation should be recalculated using the final Prospectus, final issue price and post-issue capital structure.
At the upper band, Tempsens is valued at approximately 36 times FY26 diluted earnings. This is not a low valuation for an industrial manufacturing company.
The valuation can be supported only if the company sustains healthy growth, maintains margins, improves working-capital efficiency and successfully scales its heating and specialised-cable businesses.
The RHP reports FY26 diluted EPS of ₹8.33 and NAV per share of ₹61.66. Therefore, the upper-band price of ₹300 represents approximately 4.3 times FY26 NAV based on the RHP figures.
What Should Investors Consider When Valuing Tempsens?
The P/E multiple alone does not provide a complete picture. Investors should consider whether:
-
FY26 profit is representative of normalised earnings.
-
Revenue can continue growing at more than 20% annually.
-
EBITDA margin can remain close to 25%.
-
Future growth can be converted into operating cash flow.
-
Working-capital requirements can be controlled.
-
Acquisitions can deliver sustainable earnings.
-
The company can maintain attractive returns on the enlarged capital base.
-
The valuation is reasonable compared with relevant listed industrial, sensor, cable and heating-equipment companies.
A high-growth company can grow into an expensive valuation. However, any significant earnings disappointment can lead to a sharp valuation de-rating after listing.
The Tempsens Instruments IPO has several business and financial strengths that could support its long-term growth.
1. Established Operating History
Tempsens has operated since 1990 and is led by promoters with long experience in the engineering industry.
Its established customer relationships, manufacturing capabilities and technical expertise may support repeat business and market credibility.
2. Products Used in Critical Industrial Applications
Temperature measurement and process heating are important for safety, quality control, energy efficiency and production consistency.
Products used in critical industrial applications may be less easily replaced than standard commodity products, potentially supporting customer relationships and repeat demand.
3. Product Diversification
Tempsens operates across temperature sensing, electrical heating and specialised cables.
The increasing contribution from electrical heating solutions has reduced the company's dependence on temperature sensors alone.
4. Domestic and International Presence
The company sells across India and overseas markets and has subsidiaries and joint ventures in several regions.
International operations can broaden its addressable market and provide access to global customers, although they also increase operational complexity.
5. Moderate Leverage
FY26 debt/equity stood at 0.15x and debt/EBITDA at 0.69x.
The proposed repayment of ₹55 crore from IPO proceeds could strengthen the balance sheet, subject to the actual utilisation of proceeds and post-issue debt position.
6. Industry Growth Opportunity
The RHP's industry report estimates India's temperature-sensor market at approximately ₹188 crore in FY26 and projects it to reach ₹288 crore by FY31E.
The report also identifies opportunities in specialised cables and electrifiable heating solutions.
These are industry estimates rather than company guarantees, and actual market growth may differ.
While the Tempsens Instruments IPO offers growth opportunities, investors should also consider the business, financial and execution risks before investing.
1. High Dependence on Projects/OEM Business
Projects/OEM contributed 67.55% of FY26 revenue.
Project businesses can involve long sales cycles, irregular order timing, tender-related uncertainty and sensitivity to industrial capital expenditure.
Delays in customer projects could therefore affect quarterly revenue and cash flows.
2. Exposure to Metal and Petrochemical Industries
Metal and petrochemical industries collectively contributed 41.13% of FY26 revenue.
Weak commodity prices, lower production, reduced capital expenditure or declining capacity utilisation could affect demand for the company's products.
3. Raw-Material Price Volatility
Tempsens uses metals, polymers, insulating materials, conductors, adhesives, coatings and other inputs.
Sharp increases in input costs, supply shortages or delays could pressure margins, particularly where customer contracts do not allow immediate price pass-through.
4. Supplier Concentration
The RHP highlights dependence on a limited group of suppliers and the absence of definitive supply agreements for certain raw materials.
This could expose the company to supply disruptions, quality problems and sudden cost increases.
5. Rising Working-Capital Intensity
Net working-capital days increased from 152 in FY24 to 210 in FY26.
If this trend continues, Tempsens could require additional borrowing even while reporting profit growth.
6. Manufacturing Concentration in Udaipur
Ten of the company's 15 global manufacturing units are located in Udaipur.
This creates a geographic concentration risk because a major regional disruption could affect multiple facilities simultaneously.
7. Joint-Venture Dependence
Tempsens uses subsidiaries and joint ventures to enter international markets and launch products.
The RHP states that certain important decisions require majority or unanimous consent. This could restrict management flexibility or delay strategic decisions in certain ventures.
8. Acquisition and Integration Risk
The company has expanded through amalgamation and acquisitions, including Marathon Heater and overseas entities.
Integration can create challenges involving systems, employees, product portfolios, customers, working capital and operational efficiency.
9. Margin Pressure
EBITDA margin declined from 25.45% in FY25 to 24.83% in FY26, while PAT margin declined from 16.36% to 15.59%.
Continued margin compression could make the IPO valuation more difficult to justify.
10. OFS-Heavy Issue
Approximately 85% of the ₹650 crore issue is an OFS, while only ₹95 crore will accrue to the company.
The IPO therefore provides limited fresh capital relative to the total issue size. Investors should not assume that the entire ₹650 crore will fund business expansion.
11. Promoter and Governance Considerations
The business is promoter-led, with Virendra Prakash Rathi and Vinay Rathi holding senior leadership positions.
Promoter experience can be a strength, but investors should assess related-party transactions, subsidiary performance, joint-venture arrangements, contingent liabilities, litigation and post-listing promoter holding in the final Prospectus.
12. Grey-Market Premium Is Not Reliable Valuation Evidence
Pre-issue reports may indicate strong or weak grey-market interest, but GMP is unofficial, can change rapidly and is not regulated or guaranteed.
Investors should not use grey-market premium as a substitute for analysing financial statements, valuation, business prospects and risks.
Before applying for the Tempsens Instruments IPO, investors should review:
- The final Prospectus and any updated risk factors.
- Anchor-investor allocation and participating institutions.
- Final post-issue promoter and shareholder ownership.
- FY26 operating cash flow versus PAT.
- Inventory and receivable days.
- Order book, order inflow and project-conversion trends.
- EBITDA and PAT margins in the latest available quarter.
- Borrowings after IPO-related repayment.
- Revenue and profit contribution from subsidiaries and joint ventures.
- Related-party transactions and contingent liabilities.
- Customer and industry concentration.
- Valuation relative to relevant listed peers.
- Acquisition-related goodwill and intangible assets.
- Lock-in periods and potential future share sales.
The Tempsens Instruments IPO presents a mix of strong business fundamentals and valuation, execution and working-capital concerns that investors should weigh before making an investment decision.
Positive Factors
- Long operating history and established industrial presence.
- Strong FY24-FY26 revenue and profit growth.
- Diversification across sensors, heating solutions and specialised cables.
- Growing domestic and export presence.
- Moderate leverage.
- Potential industry growth from industrial automation, process control, electrification and manufacturing capex.
Negative Factors
- Upper-band valuation of roughly 36 times FY26 diluted EPS.
- Large OFS component, with only ₹95 crore going to the company.
- High dependence on Projects/OEM business.
- Exposure to metal and petrochemical industries.
- Rising working-capital days.
- Lower operating cash flow in FY26 despite higher profit.
- Raw-material and supplier risks.
- Manufacturing concentration in Udaipur.
- Acquisition and joint-venture execution risks.
- Recent moderation in operating margins.
Want to benchmark Tempsens Instruments against other recent IPOs across industrial, manufacturing and technology sectors? Use this IPO dashboard to compare issue structures, pricing and key offer details.
Tempsens Instruments presents a combination of established industrial operations, strong historical growth, technical capabilities, product diversification and moderate leverage. However, the IPO is not a straightforward value offering at ₹300 per share.
The key investment question is whether Tempsens can sustain its growth while improving working-capital efficiency and defending margins. Its high Projects/OEM exposure makes future performance partly dependent on industrial capital expenditure and project execution, while the increase in working-capital days raises questions about cash conversion.
For long-term investors, the Tempsens Instruments IPO may be suitable only for those comfortable paying a growth-oriented valuation for an industrial company with project exposure and rising working-capital intensity. Conservative investors may prefer to monitor post-listing results, cash-flow performance, order visibility and valuation behaviour before taking a larger position.
Short-term investors should also avoid relying solely on grey-market premium or expected listing gains. The company's financial performance, cash generation, valuation and execution will ultimately determine whether the IPO valuation is sustainable.