Ravita Engineering Services
A distinct read of SME-specific danger (liquidity, concentration, forensic flags) — separate from the FinMinutes Score. Higher band = more caution warranted.
- Pre-IPO 100:1 bonus issue in February 2026 expanding insider shareholding at zero cost.
- Persistent negative operating cash flow (-Rs. 46.85 crore in FY26) due to working capital lock-up.
- High trade receivables standing at Rs. 73.26 crore (96 receivable days in FY26).
- Recent change in promoter ownership and management control in February 2025.
- High customer concentration with top 5 clients generating 87.86% of FY25 revenue.
Educational risk signal grounded in the filing — not a buy/sell call.
First time with SME IPOs? Read the SME IPO guide and the risks before applying.
FinMinutes Deep Business Model & Edge
Ravita Engineering Services Limited is an engineering solutions provider specializing in turnkey Engineering, Procurement, Installation and Commissioning (EPIC) and Operations & Maintenance (O&M) for HVAC and electromechanical systems across onshore, offshore, and data center environments.
What this company actually does — full breakdown ▾
Incorporated in 2007, Ravita Engineering Services Limited provides integrated electro-mechanical engineering solutions across three key verticals: Onshore, Offshore, and Data Centers. The company executes turnkey EPIC projects (including HVAC, central air conditioning, chiller plants, and industrial cooling) and provides multi-year O&M services. In FY26, revenue from operations reached Rs. 277.6329 crore (standalone), with EPIC projects contributing 76.00% (Rs. 210.9907 crore) and O&M services contributing 24.00% (Rs. 66.6422 crore). Total order book as of June 30, 2026 stood at Rs. 491.1212 crore.
Integrated service offerings combining short-cycle EPIC execution with multi-year recurring O&M contracts, specialized experience in mission-critical data center and harsh offshore environments, large engineering workforce, and established client relationships.
The Offer
Follow the Money — Use of Proceeds
- To meet long-term working capital requirements of our Company — ₹106.00 cr
- Funding capital expenditure requirements of our Company towards purchase of certain heavy equipment — ₹25.53 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; where the issue creates new shares, the post-issue multiple is computed in the workings below. This filing names no comparable listed peer, so there is no peer table and no relative multiple on this page. We would rather say that than assemble a peer set the issuer did not stand behind.
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 3 live components.
80% of the designed weighting had real data behind it on this issue. Not yet scored here: Filing Integrity, 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 measured12%
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 measured32%
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 measured28%
Starts at 100 and loses points for every material finding: 12 for a flagged finding, 4 for a noted one. Two kinds feed it. DERIVED findings are computed from the filed numbers against stated thresholds — operating cash negative while profit is positive, related-party revenue above 15% of total, revenue rising while profit falls, goodwill above 30% of net worth, receivables growing more than 1.3x faster than sales, cash below half of short-term debt. Those are reproducible: the same filing gives the same answer every time, and the rule is printed beside the finding. READ findings come from the forensic sweep of the notes. Contingent liabilities, related-party intensity, customer concentration, litigation, auditor qualifications, statutory dues, promoter funding. Findings that record the ABSENCE of a problem — no litigation pending, an unmodified audit opinion — deduct nothing. This is the component our forensic read drives directly, and it moves most between companies.
3-Year Financial & Growth Trend
| Metric | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue (₹ Cr) | 277.6329 | 108.6127 | 13.4925 |
| Net Profit (₹ Cr) | 28.0416 | 11.827 | 1.508 |
| PAT Margin | 10.1% | 10.89% | 11.18% |
Why the numbers moved, in management’s own words
Taken from the Management’s Discussion and Analysis section of the filing. A number tells you what happened; this is the company’s explanation of why, and whether it calls the cause temporary or structural.
| Metric | Move | Management's stated reason | Type |
|---|---|---|---|
| Revenue from Operations (FY26 vs FY25) | ↑ 155.6% | Revenue increased significantly due to execution of large-scale EPIC project contracts for data center and onshore HVAC installations, coupled with growth in recurring O&M contracts. | Structural |
| Profit After Tax (FY26 vs FY25) | ↑ 137.1% | PAT expanded sharply driven by higher operational revenue, economies of scale in EPIC execution, and stable O&M service gross margins. | Structural |
| Trade Receivables (FY26 vs FY25) | ↑ 178.3% | Trade receivables expanded due to revenue growth and milestone-based billing realization cycles from corporate and public sector EPIC clients. | Structural |
| Inventories (FY26 vs FY25) | ↑ 311.9% | Inventories increased due to raw material equipment and project site supplies held for ongoing EPIC execution across onshore and data center sites. | Structural |
| Operating Cash Flow (FY26 vs FY25) | ↓ 423.9% | Operating cash flow turned further negative at -Rs. 46.8510 crore in FY26 (compared to -Rs. 8.9436 crore in FY25) due to working capital absorption in trade receivables and project inventories. | Structural |
Headwinds
- Working capital lock-up in trade receivables (Rs. 73.26 crore / 96 days) and project inventory company persistent
Long execution and inspection milestones in EPIC projects absorb substantial working capital, leading to negative operating cash flows. - Customer concentration with top 5 clients contributing 87.86% of revenue company persistent
A significant portion of operational revenue depends on key corporate and industrial clients.
Tailwinds
- Surge in data center infrastructure construction and industrial HVAC outfitting in India macro
Rapid expansion of hyperscale data centers and commercial infrastructure creates high-margin demand for specialized HVAC EPIC and O&M services. - Substantial order book of Rs. 491.12 crore providing medium-term revenue visibility company
Unexecuted order book of Rs. 491.12 crore across EPIC and O&M contracts secures future revenue growth.
Movements the filing does not explain
- Pre-IPO 100:1 Bonus Issue Capitalizing Reserves FY26 — In February 2026, the company issued 27,048,200 bonus shares (100:1 ratio) at Rs. 0.00 per share by capitalizing reserves, expanding pre-issue equity capital to 27,318,682 shares.
A material movement that management does not address is not a finding on its own. It is a question the filing leaves open, and it is recorded here as one.
Issue Timeline
Dates as carried by the exchange feed. Allotment, refund and credit dates move more often than the open and close dates do.
- Refunds initiated2026-10-19
- Pre Application Start2026-10-09
- Bidding Start2026-10-13
- Bidding End2026-10-15
- Allotment Process Start2026-10-16
- Allotment Finalization2026-10-19
- Listing Day2026-10-21
- Mandate End2026-11-26
Applying, and Who Handles the Allotment
Check allotment status on the registrar’s own portal → We link the registrar directly rather than mirroring the form.
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 profit and loss as filed, then what we derive from it — kept apart.
Statutory order, exactly as restated in the filing. Finance cost and depreciation sit inside Total Expenses under Ind AS, which is why they are listed among the expense lines here rather than below the total. The expense rows sum to the total. Rows the filing does not disclose separately are omitted rather than left blank.
| Income Statement — as filed (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue from Operations | 277.63 | 108.61 | 13.49 |
| Other Income | 0.19 | 0.69 | 0.04 |
| Total Income | 277.82 | 109.30 | 13.53 |
| Cost of Materials Consumed | 221.59 | 85.34 | 8.31 |
| Changes in Inventories | -28.34 | -6.62 | -0.98 |
| Employee Benefit Expense | 3.01 | 1.93 | 1.58 |
| Finance Cost | 0.72 | 0.35 | 0.65 |
| Depreciation & Amortisation | 2.05 | 0.18 | 0.16 |
| Other Expenses | 12.98 | 5.69 | 0.74 |
| Total Expenses | 240.35 | 93.49 | 11.44 |
| Profit Before Exceptional Items and Tax | 37.47 | 15.81 | 2.09 |
| Exceptional Items | 0.00 | 0.00 | 0.00 |
| Profit Before Tax | 37.47 | 15.81 | 2.09 |
| Tax Expense | 9.43 | 3.99 | 0.58 |
| Profit After Tax | 28.04 | 11.83 | 1.51 |
| EPS - Basic | 11.05 | 5.85 | 0.75 |
| EPS - Diluted | 11.05 | 5.85 | 0.75 |
Balance SheetWhat the company owns, owes, and is worth on paper.
| Balance Sheet (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Share Capital | 13.66 | 0.10 | 0.10 |
| Reserves & Surplus | 85.90 | 15.03 | 3.20 |
| Net Worth | 99.56 | 15.13 | 3.30 |
| Long-term Borrowings | 0.16 | 0.51 | 0.84 |
| Short-term Borrowings | 19.05 | 22.60 | 2.68 |
| Total Borrowings | 19.21 | 23.11 | 3.52 |
| Trade Payables | 32.57 | 14.76 | 0.25 |
| Current Liabilities | 62.35 | 41.93 | 4.38 |
| Total Liabilities | 162.97 | 58.24 | 9.08 |
| Property, Plant & Equipment | 10.17 | 11.48 | 1.74 |
| Capital Work in Progress | 0.00 | 0.00 | 0.00 |
| Intangible Assets | 0.00 | 0.00 | 0.00 |
| Investments | 0.00 | 0.00 | 0.00 |
| Inventories | 37.43 | 9.09 | 2.47 |
| Trade Receivables | 73.26 | 26.33 | 3.71 |
| Cash & Equivalents | 5.15 | 0.64 | 0.37 |
| Current Assets | 152.80 | 46.75 | 7.33 |
| Total Assets | 162.97 | 58.24 | 9.08 |
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 | -46.85 | -8.94 | 0.17 |
| Capital Expenditure | -0.55 | -9.87 | -0.01 |
| Net Cash from Investing Activities | -0.40 | -10.03 | 0.03 |
| Net Cash from Financing Activities | 51.77 | 19.24 | -3.26 |
| Net Change in Cash | 4.52 | 0.26 | -3.06 |
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 (%) | 14.5 | 14.9 | 21.4 |
| EBIT Margin (%) | 13.7 | 14.8 | 20.2 |
| PAT Margin (%) | 10.1 | 10.9 | 11.2 |
| Return on Equity (%) | 28.2 | 78.2 | 45.6 |
| Return on Capital Employed (%) | 32.2 | 42.3 | 40.1 |
| Return on Assets (%) | 17.2 | 20.3 | 16.6 |
| Leverage | |||
| Debt / Equity (x) | 0.19 | 1.53 | 1.07 |
| Net Debt / EBITDA (x) | 0.35 | 1.38 | 1.09 |
| Interest Coverage (x) | 53.18 | 46.78 | 4.24 |
| Liquidity | |||
| Current Ratio (x) | 2.45 | 1.12 | 1.67 |
| Quick Ratio (x) | 1.85 | 0.9 | 1.11 |
| Efficiency | |||
| Asset Turnover (x) | 1.7 | 1.87 | 1.49 |
| Receivable Days | 96 | 88 | 100 |
| Inventory Days | 49 | 31 | 67 |
| Payable Days | 43 | 50 | 7 |
| Cash Conversion Cycle (days) | 102 | 69 | 160 |
| Quality of Earnings | |||
| Operating Cash Flow / PAT (x) | -1.67 | -0.76 | 0.11 |
| Accruals Ratio (%) | 46 | 35.7 | 14.7 |
| Capex / Depreciation (x) | 0.27 | 54.87 | 0.06 |
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) | 10.1% | 10.9% | 11.2% |
| Asset Turnover (Revenue / Assets) | 1.7x | 1.87x | 1.49x |
| Equity Multiplier (Assets / Net Worth) | 1.64x | 3.85x | 2.75x |
| = Return on Equity | 28.2% | 78.2% | 45.6% |
| Tax Burden (PAT / PBT) | 0.75x | 0.75x | 0.72x |
| Interest Burden (PBT / EBIT) | 0.98x | 0.98x | 0.76x |
| Operating Margin (EBIT / Revenue) | 13.8% | 14.9% | 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.
- In FY26 the company reported a profit of 28.04 cr while operating cash flow was NEGATIVE at -46.85 cr. Reported earnings did not convert into cash. This is the single divergence most worth understanding in any set of accounts, and the filing is the place to look for why.
- Interest coverage was 53.18x in FY26. Debt servicing is comfortably covered by operating profit.
Forensic ModelsBeneish, Altman and Piotroski — plus our own final-year check.
Beneish M-Score
7 of 8 inputsAn 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) | 1.089 | 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 | 1.061 | 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 | — | 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 | 2.556 | 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) | 0.092 | 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 | 0.821 | 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 | 0.526 | Above 1 means leverage rose. Debt covenants create pressure to hit numbers. |
| TATA Total Accruals to Total Assets (PAT - CashFromOperations) / TotalAssets | 0.4596 | 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. |
The filing does not disclose every input the model needs, so we withhold the composite score rather than substitute a guess. The components we could compute are above.
Altman Z″-Score (emerging markets)
Z″ = 10.83 · 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 | 0.555 |
| X2 — Retained Earnings / Total Assets | 0.527 |
| X3 — EBIT / Total Assets | 0.234 |
| X4 — Net Worth / Total Liabilities | 0.611 |
| Z″ = 3.25 + 6.56·X1 + 3.26·X2 + 6.72·X3 + 1.05·X4 | 10.83 |
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 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
The Final-Year Check
oursNot from any textbook. The hockey stick in the last year before a filing is the oldest pattern in this business, and nobody publishes it. So we measure it: how the final disclosed year compares with the years behind it. Real acceleration looks exactly the same on the page as a flattering one — which is precisely why it is worth naming rather than assuming either way.
- Cash conversion fell sharply in the final year: operating cash flow was -1.67x profit in FY26, against -0.76x in FY25. Profit rose; the cash behind it did not follow at the same rate.
Ratios Nobody Prints
- Contingent liabilities / Net worth: 4.5%
Contingent liabilities of 4.47 cr against a net worth of 99.56 cr — 4.5% 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: 0%
0% 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: 0.27x
Short-term borrowings of 19.05 cr against cash of 5.15 cr. Debt that must be refinanced within a year is only comfortable while lenders stay comfortable. - Promoter remuneration / PAT: 2.8%
Managerial remuneration to the promoter group was 0.78 cr against a profit of 28.04 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 Worth28.04 ÷ 99.56What 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)38.19 ÷ (99.56 + 19.21) = 38.19 ÷ 118.77Return on ALL the capital in the business, borrowed as well as owned. Unlike ROE, it cannot be flattered by taking on debt.
EBITDA ÷ Revenue40.24 ÷ 277.63Operating profitability before the effects of debt, tax and depreciation. What the business earns from the act of trading.
Total Borrowings ÷ Net Worth19.21 ÷ 99.56How much the company has borrowed against what it owns. High is not automatically bad — ask whether the borrowing is being serviced comfortably.
EBIT ÷ Finance Cost38.19 ÷ 0.72How 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(73.26 ÷ 277.63) × 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 Days49 + 96 − 43How 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 ÷ PAT-46.85 ÷ 28.04Did 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(28.04 − -46.85) ÷ 162.97 = 74.89 ÷ 162.97The 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.
Price × Post-issue Shares₹112.00 × 37,680,600 sharesWhat the whole company is being valued at, if the issue prices at the top of the band.
Market Cap + Total Borrowings − Cash422.02 + 19.21 − 5.15What it would actually cost to buy the whole business: you take on its debt and you get its cash. This is the number a buyer cares about, and it is the reason a P/E on its own can mislead.
Enterprise Value ÷ EBITDA436.08 ÷ 40.24The multiple that includes debt. Two companies on the same P/E — one debt-free, one heavily borrowed — are not the same investment, and only this number tells you so.
Market Cap ÷ PAT422.02 ÷ 28.04The familiar multiple. Useful, but blind to debt — read it alongside EV/EBITDA, never instead of it.
Offer price ÷ EPS, on pre- and post-issue share counts₹10.26 EPS pre → ₹7.44 EPS postThe fresh issue expands the share count by 27.5%, so the same profit is spread across more shares. The multiple quoted in the filing is struck on pre-issue earnings; the one on the right is what a buyer actually holds on listing day. The gap closes only if the new capital earns a return, which has not happened yet.
Offer price ÷ weighted average cost of acquisition₹112.00 ÷ ₹3.42Every offer document must disclose the weighted average cost of acquisition for shares issued or transferred over the preceding one, eighteen and thirty-six months. Early capital takes real risk and a large multiple built over years is ordinary. A steep step-up inside a short window is the one that deserves a second look. What it means is yours to decide; the arithmetic is the filing’s own.
EBIT × (1 − tax rate) ÷ (Net Worth + Debt − Cash)NOPAT ÷ Invested CapitalWhat the business earns on the capital actually at work in it. We do not compare this to a cost of capital: that would need a beta, an unlisted company has none, and inventing one would be theatre.
P/E ÷ trailing PAT growth (%)15.05 ÷ 137.1%PEG was designed for FORWARD growth. This one uses TRAILING growth, because that is all a prospectus gives us — and the final year before an IPO is very often the best year the company will have for a while. A low PEG here may say more about the timing of the filing than about the price. We show it because it was asked for; we show the growth denominator beside it so it cannot mislead you quietly.
Workspace
The numbers are already loaded. Move the offer price and watch every multiple move with it. Set your own growth and margin and see what they imply two years out. These are your assumptions, not our forecast — we have no view on what this company will earn, and the moment we published one we would be doing something we are not registered to do. What we can do is put the arithmetic in front of you and get out of the way.
Price defaults to the top of the band. Margin defaults to what the company actually reported in FY26.
Projections are arithmetic on the inputs you typed. They are not a forecast, not a recommendation, and not a view on whether this offer is worth taking. Educational only.
Institutional Alpha: DRHP Deep Dive
Pre-IPO 100:1 Bonus Issue Expanded Promoter Shareholding at Nil Cost
In February 2026, the company issued 27,048,200 bonus shares (100:1 ratio) at Rs. 0.00 per share by capitalizing reserves, expanding pre-issue equity capital to 27,318,682 shares and reducing promoter average acquisition costs.
Source: p.90, 96, 120Persistent Negative Operating Cash Flow Driven by EPIC Working Capital
Operating cash flow remained negative across FY25 (-Rs. 8.9436 crore) and FY26 (-Rs. 46.8510 crore) due to working capital lock-up in trade receivables (Rs. 73.2602 crore) and project inventory (Rs. 37.4281 crore).
Source: p.68, 112, 293Recent Acquisition of Ownership and Control by Current Promoters in February 2025
Current promoters Vibhoar Agrawal, Rachita Agrawal, and Starwings Realtors Private Limited acquired 100% ownership and control in February 2025, driving revenue expansion to Rs. 277.63 crore in FY26.
Source: p.29, 181, 202Shareholding, Syndicate & Leadership
Leadership & Skin in the Game
Leadership: Sunildutt Narayan Goswami
Litigation: Pending indirect tax claims of Rs. 4.4666 crore against the Company. Ongoing RoC strike-off proceedings against associated company M.R. Foods Private Limited.
Global and Indian HVAC, EPIC and O&M Engineering Industry Metrics
The operating metrics that actually price this business — the ones a generic IPO page skips. Straight from the filing.
| Metric | Value | Detail |
|---|---|---|
| Indian HVAC and Electromechanical Engineering Market Size (USD billion) | — |
Source: p.128, 130
🔍 Forensic Findings — What the Footnotes Say
Findings from across the filing — the notes, MD&A, related-party disclosures, contingent liabilities, CARO and litigation, alongside the risk section itself. Each carries where it was found, so you can see which were buried and which were disclosed. Findings marked derived are computed from the filed numbers against a stated rule, shown beside them.
On February 19, 2026 (7 months prior to RHP filing), the company issued 27,048,200 bonus shares in a 100:1 ratio at Rs. 0.00 per share by capitalizing reserves, following a 1:2 share split in January 2026. This expanded pre-issue equity share capital to 27,318,682 shares, lowering promoter weighted average acquisition cost to Rs. 3.42 - 77.68 per share.
p.90, 96, 120Operating cash flow (CFO) was negative in FY25 (-Rs. 8.9436 crore) and FY26 (-Rs. 46.8510 crore), as working capital was heavily absorbed by trade receivables (Rs. 73.2602 crore in FY26) and inventory (Rs. 37.4281 crore in FY26).
p.68, 112, 293In February 2025 (19 months prior to RHP), current promoters Vibhoar Agrawal, Rachita Agrawal, and Starwings Realtors Private Limited acquired 100% shareholding and control of the company from original promoters Sunil Goswami and Vatsala Goswami.
p.29, 181, 202The company disclosed that no direct listed peers exist with comparable business operations and size.
p.124, 136Pending indirect tax claims of Rs. 4.4666 crore against the Company. Ongoing RoC strike-off proceedings against associated company M.R. Foods Private Limited.
p. 1, 7, 29, 253 and 2 moreOperating cash flow was negative ₹46.85 cr in FY26 while the company reported a profit after tax of ₹28.04 cr. Profit that does not arrive as cash has to be funded from somewhere else.
rule: CFO<0 & PAT>0Short-term borrowings of ₹19.05 cr against cash of ₹5.15 cr. Debt that must be refinanced within a year is comfortable only while lenders stay comfortable.
rule: cash < 0.5x short-term debtCompany's Claims vs Reality
We stress-test each claim against the filing's own data.
Trade receivables stood at Rs. 73.26 crore in FY26 and order book expanded to Rs. 491.12 crore, confirming high working capital intensity required for milestone-based EPIC project execution.
p.108, 112, 181O&M contracts contributed 24.00% of FY26 revenue (Rs. 66.64 crore) and provided predictable recurring cash flows, supporting operating EBITDA margins of 14.43%.
p.121, 181, 184Allotment Status
Check your allotment on the registrar's portal → Registrar: MUFG Intime India
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 (26 Nov 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.
How are the fresh issue IPO proceeds allocated across working capital, heavy equipment capex, and general corporate purposes?
Fresh issue proceeds are allocated as: Rs. 106.0000 crore for meeting long-term working capital requirements in FY27 and FY28, Rs. 25.5292 crore for funding capital expenditure towards purchase of heavy equipment (trucks, dumpers, cranes), and the balance for General Corporate Purposes.
p.108, 112, 116What is the promoters' shareholding pre-issue and their acquisition cost history?
Promoters Vibhoar Agrawal, Rachita Agrawal, and Starwings Realtors Private Limited hold 84.52% pre-issue equity (23,098,238 shares out of 27,318,682 shares). Control was acquired in February 2025, and shareholding was expanded through a 100:1 bonus issue in February 2026, establishing a promoter weighted average cost of acquisition (WACA) of Rs. 3.42 per share for Rachita and Vibhoar Agrawal, and Rs. 77.68 per share for Starwings Realtors.
p.90, 97, 120, 181What are the key related-party transactions, inter-corporate deposits, and promoter debt support?
Promoter entity Starwings Realtors Private Limited provided inter-corporate loans (outstanding Rs. 12.0359 crore as of June 30, 2026). Director loans from Sunil Goswami stood at Rs. 2.4551 crore. Promoters Vibhoar Agrawal and Rachita Agrawal provided personal guarantees and collateral property for bank credit facilities of Rs. 21.00 crore.
p.72, 204, 225, 298How did operating cash flow perform relative to restated net profits over FY24 to FY26?
Restated PAT expanded from Rs. 1.5080 crore in FY24 to Rs. 11.8270 crore in FY25 and Rs. 28.0416 crore in FY26. However, Operating Cash Flow (CFO) was negative in FY25 (-Rs. 8.9436 crore) and FY26 (-Rs. 46.8510 crore) due to working capital lock-up in trade receivables (Rs. 73.2602 crore) and inventory (Rs. 37.4281 crore).
p.65, 68, 121, 293What secretarial, statutory compliance, litigation, and tax findings exist for the company?
The company disclosed 2 indirect tax claims under dispute totaling Rs. 4.4666 crore. An associated entity, M.R. Foods Private Limited, is undergoing compulsory strike-off by RoC. Statutory auditor M/s Piyush Kothari & Associates served as auditor for FY25 and FY26 following previous auditor M/s Rinki Gupta & Co.
p.29, 253, 304What are the application lot terms, retail ticket requirements, market maker details, and exit constraints for public investors?
The offer is listed on NSE Emerge with a minimum retail application requirement of 2 lots (minimum application size above Rs. 2.00 lakhs). Trading occurs strictly in standardized market lots, and because lots are indivisible, partial exit or fractional lot trading is impossible. Market maker reservation is 522,000 equity shares (5.04%) with a mandatory 3-year obligation period. Standard SME 5% price circuit limits apply.
p.1, 3, 90What 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 |
|---|---|---|---|
| Initial Subscribers to MOA / Original Promoters (Goswami Family) | ₹10.00 | 2007-03-27 | 11.2x |
| An early round from roughly 20 years ago, at roughly 11.2x the offer price. A multiple of that size built over that long reflects the risk taken and the time elapsed. That is the normal reward for early capital, not a red flag. | |||
| Promoters (Vibhoar & Rachita Agrawal, Starwings Realtors) | ₹10.00 | 2025-02-15 | 11.2x |
| Promoters (Share Split 1:2) | ₹5.00 | 2026-01-20 | 22.4x |
| This round priced within the last year, yet the offer is at roughly 22.4x that price. A step-up this steep in this little time is worth understanding: what changed in the business to justify it? | |||
| Existing Shareholders (Bonus 100:1) | — | 2026-02-19 | — |
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.
- 21 Oct 2029promoter3 years7,536,137 shares (20% of total)
- 21 Oct 2027promoter group1 year15,562,101 shares (41.3% of total)
- 21 Oct 2027public1 year14,582,444 shares (38.7% of total)
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.
Educational, grounded entirely in the company's filings (DRHP/RHP). Not investment advice. FinMinutes does not provide buy/sell recommendations.
