SRIT India
FinMinutes Deep Business Model & Edge
SRIT India Limited is a Bengaluru-headquartered Information Technology and Information Technology enabled Services (IT/ITeS) solutions company with a 26-year operational track record. The company specializes in custom application development, system integration, and managed services across healthcare, electronic governance, and telecommunications and broadband sectors.
What this company actually does — full breakdown ▾
SRIT India Limited provides technology-enabled solutions and managed services across three core business verticals: Electronic Governance (68.39% of FY26 revenue), Telecommunications and Broadband (24.27%), and Healthcare (7.34%). In electronic governance, it implements digital public platforms, smart city systems, e-district solutions, and automated building verification software. In telecommunications and broadband, it deploys proprietary software platforms like R-Converge (OSS/BSS/CRM suite) and RConnect, serving major partners like RailTel. In healthcare, it deploys the Renaissance Health Enterprise Suite (RHES) for integrated hospital information management and clinical workflows. SRIT's customer base consists predominantly of central and state government entities and public sector undertakings (89.41% of FY26 revenue), alongside enterprise clients (10.59%). Geographically, domestic operations contribute 94.36% of revenue across multiple Indian states (led by Maharashtra, Kerala, and Tamil Nadu), while exports account for 5.64% across international markets such as Qatar, UAE, and Myanmar. SRIT executes projects through direct implementation, consortium arrangements, and sub-contracting. In FY26, consolidated revenue from operations reached ₹ 449.99 crore, with a restated Profit After Tax of ₹ 43.29 crore and an unexecuted Order Book of ₹ 1,204.72 crore as of June 30, 2026.
- Electronic Governance — Technology solutions and system integration services for e-governance, urban administration, smart city infrastructure, and e-district projects.
- Telecommunications and Broadband — Proprietary OSS/BSS/CRM software platforms (R-Converge, RConnect) and managed service provider solutions for broadband networks and telecom operators.
- Healthcare — Integrated healthcare IT platforms (RHES) providing hospital information management, clinical workflows, and revenue cycle management.
26-year operational track record with proprietary product IP suites (RHES, R-Converge), strong pre-qualification credentials for large-scale government tenders, high switching costs in mission-critical public infrastructure, and long-standing relationships with government and PSU partners.
The Offer
Follow the Money — Use of Proceeds
- Funding of capital expenditure requirements towards modernization of existing products and redevelopment — ₹12.86 cr
- Funding working capital requirements of our Company — ₹124.00 cr
- Achieving inorganic growth through unidentified acquisitions and other strategic initiatives and 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. The peer group is the one the filing itself names. A premium is not the same thing as expensive and a discount is not the same thing as cheap — the peer table and the reasons sit further down this page.
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 4 live components.
88% of the designed weighting had real data behind it on this issue. Not yet scored here: Filing Integrity. 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 measured10%
The post-issue earnings multiple against the peer median disclosed in the filing. A discount to the median scores well and a premium scores badly. When the filing does not disclose comparable peer multiples, this component is dropped from the weighting rather than held at a made-up neutral.
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) | 450 | 389.35 | 271.09 |
| Net Profit (₹ Cr) | 43.29 | 33.6 | 29.08 |
| PAT Margin | 9.62% | 8.63% | 10.73% |
Revenue Breakdown
- Electronic Governance: 68.39%
- Telecommunications and Broadband: 24.27%
- Healthcare: 7.34%
Market Context
NOT part of the FinMinutes ScoreThe Score above is what the filing says. Everything in this box is what the crowd says. We keep them apart on purpose — every other site blends the two and calls the result a rating. Demand is real information, but it is information about the market, not about the company, and it changes by the hour while the company does not.
Demand and our read of the filing are broadly in the same territory.
Subscription is low early in a book and high at the end, because most bids arrive in the final hours. A number read on day one says more about the clock than the company — which is precisely why it is not in the Score. GMP is unofficial, unregulated, and easily moved. Neither is a recommendation.
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) | ↑ 15.6% | Revenue from operations increased primarily due to higher execution across electronic governance (up 28.96%) and telecom/broadband verticals, alongside the ramp-up of point-in-time SITC deliverables. | Structural |
| Sub-contracting and technical fees (FY26 vs FY25) | ↑ 12.3% | Sub-contracting costs grew at a slower rate than top-line revenue, improving gross margin after technical fees to 28.52% in FY26. | Structural |
| Employee benefits expense (FY26 vs FY25) | ↑ 12.6% | Employee expenses increased due to headcount expansion, periodic salary revisions, and higher actuarial gratuity charges. | Structural |
| Finance costs (FY26 vs FY25) | ↑ 14.4% | Finance costs rose due to higher utilization of working capital credit facilities and lease liabilities. | Structural |
| Depreciation and amortisation expense (FY26 vs FY25) | ↑ 213.5% | Depreciation increased significantly due to property, plant and equipment additions and right-of-use asset capitalisation. | Structural |
| Restated PAT (FY26 vs FY25) | ↑ 28.8% | Restated net profit expanded due to top-line revenue growth, gross margin improvement, and lower effective tax rate. | Structural |
| Operating cash flow (FY26 vs FY25) | ↓ 167.4% | Operating cash flow turned negative at ₹ -12.10 crore due to working capital lock-up in unbilled contract assets and trade receivables. | Structural |
| Revenue from operations (FY25 vs FY24) | ↑ 43.6% | Revenue expanded due to full-year execution of a major state-wide e-governance and telecom infrastructure contract. | Structural |
Headwinds
- High Working Capital Intensity in Government Projects sector persistent
Milestone-based billing and extended certification cycles in public sector contracts create working capital lock-up and temporary cash flow drag. - Public Sector Tender Concentration and Budget Allocation Risks company persistent
Government entities account for 89.41% of FY26 revenue, exposing business to political, policy, or budgetary shifts.
Tailwinds
- Expansion of India's Digital Public Infrastructure and Health Missions macro
Government mandates across Ayushman Bharat Digital Mission, e-District rollouts, and 5G telecom backhaul generate sustained long-term project opportunities.
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 initiated2026-10-05
- Pre Application Start2026-09-26
- Bidding Start2026-09-28
- Bidding End2026-09-30
- Allotment Process Start2026-10-01
- Allotment Finalization2026-10-05
- Listing Day2026-10-06
- Mandate End2026-11-11
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 | 450.00 | 389.35 | 271.09 |
| Other Income | 12.54 | 11.16 | 11.13 |
| Total Income | 462.54 | 400.50 | 282.22 |
| Employee Benefit Expense | 39.56 | 35.15 | 28.05 |
| Finance Cost | 13.76 | 12.03 | 12.00 |
| Depreciation & Amortisation | 8.60 | 2.74 | 1.78 |
| Other Expenses | 345.66 | 304.39 | 202.06 |
| Total Expenses | 407.59 | 354.31 | 243.88 |
| Profit Before Exceptional Items and Tax | 54.95 | 46.19 | 38.34 |
| Exceptional Items | 0.00 | 0.00 | 0.00 |
| Profit Before Tax | 54.95 | 46.19 | 38.34 |
| Tax Expense | 11.66 | 12.59 | 9.26 |
| Profit After Tax | 43.29 | 33.60 | 29.08 |
| Other Comprehensive Income | 0.29 | -0.17 | 0.12 |
| Total Comprehensive Income | 43.58 | 33.43 | 29.19 |
| EPS - Basic | 9.47 | 7.20 | 5.39 |
| EPS - Diluted | 9.47 | 7.20 | 5.39 |
Balance SheetWhat the company owns, owes, and is worth on paper.
| Balance Sheet (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Share Capital | 23.74 | 20.24 | 26.95 |
| Reserves & Surplus | 170.11 | 72.93 | 53.52 |
| Net Worth | 193.27 | 93.17 | 80.47 |
| Long-term Borrowings | 19.50 | 19.96 | 19.29 |
| Short-term Borrowings | 16.65 | 31.33 | 2.99 |
| Total Borrowings | 36.15 | 51.30 | 22.28 |
| Trade Payables | 234.99 | 243.81 | 247.87 |
| Current Liabilities | 349.36 | 281.62 | 230.12 |
| Total Liabilities | 420.31 | 402.90 | 347.87 |
| Property, Plant & Equipment | 11.78 | 11.62 | 2.27 |
| Capital Work in Progress | 0.00 | 0.00 | 0.00 |
| Intangible Assets | 27.23 | 0.10 | 0.13 |
| Investments | 0.00 | 0.00 | 0.00 |
| Trade Receivables | 258.85 | 247.00 | 272.64 |
| Cash & Equivalents | 5.59 | 15.44 | 24.14 |
| Current Assets | 498.01 | 342.88 | 297.30 |
| Total Assets | 614.16 | 496.64 | 428.96 |
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 | -12.10 | 17.97 | 34.16 |
| Capital Expenditure | 15.42 | 17.52 | 11.98 |
| Net Cash from Investing Activities | -31.47 | -27.30 | -15.22 |
| Net Cash from Financing Activities | 33.71 | 0.29 | 2.07 |
| Net Change in Cash | -9.87 | -9.04 | 21.01 |
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 (%) | 16.7 | 15.2 | 18.5 |
| EBIT Margin (%) | 14.9 | 14.5 | 17.8 |
| PAT Margin (%) | 9.6 | 8.6 | 10.7 |
| Return on Equity (%) | 22.4 | 36.1 | 36.1 |
| Return on Capital Employed (%) | 29.9 | 40.3 | 49 |
| Return on Assets (%) | 7 | 6.8 | 6.8 |
| Leverage | |||
| Debt / Equity (x) | 0.19 | 0.55 | 0.28 |
| Net Debt / EBITDA (x) | 0.4 | 0.59 | -0.04 |
| Interest Coverage (x) | 4.99 | 4.84 | 4.2 |
| Liquidity | |||
| Current Ratio (x) | 1.43 | 1.22 | 1.29 |
| Efficiency | |||
| Asset Turnover (x) | 0.73 | 0.78 | 0.63 |
| Receivable Days | 210 | 232 | 367 |
| Payable Days | 191 | 229 | 334 |
| Quality of Earnings | |||
| Operating Cash Flow / PAT (x) | -0.28 | 0.53 | 1.17 |
| Accruals Ratio (%) | 9 | 3.1 | -1.2 |
| Capex / Depreciation (x) | 1.79 | 6.39 | 6.73 |
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) | 9.6% | 8.6% | 10.7% |
| Asset Turnover (Revenue / Assets) | 0.73x | 0.78x | 0.63x |
| Equity Multiplier (Assets / Net Worth) | 3.18x | 5.33x | 5.33x |
| = Return on Equity | 22.4% | 36.1% | 36.1% |
| Tax Burden (PAT / PBT) | 0.79x | 0.73x | 0.76x |
| Interest Burden (PBT / EBIT) | 0.8x | 0.79x | 0.76x |
| Operating Margin (EBIT / Revenue) | 15.3% | 15% | 18.6% |
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 43.29 cr while operating cash flow was NEGATIVE at -12.10 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.
- Receivable days fell from 367 to 210. Collections improved over the disclosed period.
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) | 0.907 | 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 | — | 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 | 0.594 | 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 | 1.156 | 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) | 0.452 | 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 | 0.982 | 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 | 0.989 | Above 1 means leverage rose. Debt covenants create pressure to hit numbers. |
| TATA Total Accruals to Total Assets (PAT - CashFromOperations) / TotalAssets | 0.0902 | 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″ = 6.98 · 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 | 0.242 |
| X2 — Retained Earnings / Total Assets | 0.277 |
| X3 — EBIT / Total Assets | 0.112 |
| X4 — Net Worth / Total Liabilities | 0.46 |
| Z″ = 3.25 + 6.56·X1 + 3.26·X2 + 6.72·X3 + 1.05·X4 | 6.98 |
Piotroski F-Score (adapted)
4 / 7Nine 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. A further 1 test is shown as — below: the filing does not disclose what it needs, so it is dropped from the denominator rather than counted as a failure.
- ✓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 -0.28x profit in FY26, against 0.53x in FY25. Profit rose; the cash behind it did not follow at the same rate.
Ratios Nobody Prints
- Contingent liabilities / Net worth: 31.5%
Contingent liabilities of 60.96 cr against a net worth of 193.27 cr — 31.5% 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: 9.6%
9.6% 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: 0.34x
Short-term borrowings of 16.65 cr against cash of 5.59 cr. Debt that must be refinanced within a year is only comfortable while lenders stay comfortable. - Promoter remuneration / PAT: 7%
Managerial remuneration to the promoter group was 3.05 cr against a profit of 43.29 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 Worth43.29 ÷ 193.27What 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)68.71 ÷ (193.27 + 36.15) = 68.71 ÷ 229.42Return on ALL the capital in the business, borrowed as well as owned. Unlike ROE, it cannot be flattered by taking on debt.
EBITDA ÷ Revenue77.31 ÷ 450.00Operating profitability before the effects of debt, tax and depreciation. What the business earns from the act of trading.
Total Borrowings ÷ Net Worth36.15 ÷ 193.27How much the company has borrowed against what it owns. High is not automatically bad — ask whether the borrowing is being serviced comfortably.
EBIT ÷ Finance Cost68.71 ÷ 13.76How 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(258.85 ÷ 450.00) × 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.
Cash from Operations ÷ PAT-12.10 ÷ 43.29Did 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(43.29 − -12.10) ÷ 614.16 = 55.39 ÷ 614.16The 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₹130.00 × 64,271,757 sharesWhat the whole company is being valued at, if the issue prices at the top of the band.
Market Cap + Total Borrowings − Cash835.53 + 36.15 − 5.59What 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 ÷ EBITDA866.09 ÷ 77.31The 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 ÷ PAT835.53 ÷ 43.29The familiar multiple. Useful, but blind to debt — read it alongside EV/EBITDA, never instead of it.
Offer price ÷ weighted average cost of acquisition₹130.00 ÷ ₹54.21Every 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.
Growth needed to reach the peer multiple on earnings alone19.3x against a peer median of 18.62xThis is not a forecast and not a target. It is the price restated as a question: at this multiple, with the price unchanged, earnings would have to compound at this rate to arrive at what the filing’s own peer group trades on. Whether the business can do that is the argument — we are only stating what the argument is about.
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 (%)19.3 ÷ 28.8%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 post-issue share count is stated as “[•]” in this filing until final pricing, so we derive it: profit after tax divided by earnings per share gives the pre-issue count, and the fresh issue divided by the offer price gives the new shares. Everything below rests on that derivation. It is close, not exact.
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
According to the D&B Report, the Indian IT-BPM industry is projected to reach USD 315 billion in FY26, driven by digital transformation, cloud adoption, and government digital public infrastructure mandates. IT services account for nearly 48% of industry revenue, while e-governance, digital health, and 5G telecom backhaul represent key growth vectors. SRIT India Limited competes with both legacy IT majors and specialized technology integrators, maintaining a strong position in public sector digital transformations across healthcare, telecom, and e-governance.
Proprietary Product IP Modernization via Public Capital
SRIT India Limited is directing ₹ 12.86 crore from IPO proceeds toward modernizing its core proprietary software suites (RHES for healthcare, R-Converge for telecom, and RCM for revenue cycle management), transitioning legacy platforms to cloud-native microservices architecture to expand recurring SaaS revenue.
Source: p.115, p.116, p.240Order Book Delivery Backed by High Margin Point-in-time Billings
With an unexecuted Order Book of ₹ 1,204.72 crore as of June 30, 2026, SRIT's top-line growth is accompanied by a shift toward point-in-time SITC and software license billings (62.03% of FY26 revenue), expanding gross margin after technical fees to 28.52%.
Source: p.245, p.363, p.425100% Primary Equity Capital Inflow for Working Capital De-risking
The IPO is structured 100% as a Fresh Issue of 16,800,000 Equity Shares, allocating ₹ 124.00 crore directly to working capital augmentation. This capital influx de-risks the balance sheet against extended public-sector milestone payment cycles.
Source: p.1, p.115, p.116Shareholding, Syndicate & Leadership
Leadership & Skin in the Game
Leadership: Dr. Nambiar Raghavan Madhusoodan
Litigation: ₹ 8.02 crore in direct/indirect tax proceedings against the Company, alongside an ongoing payment dispute of ₹ 36.96 crore under the Safe Kerala project pending before the High Court of Kerala.
Auditor / RPT Flags: None; Statutory auditor examination reports contain unmodified opinions for FY24-FY26, with standard emphasis of matter paragraphs noting non-current trade receivables/payables classification and strike-off of non-operational subsidiaries.
Peers & Valuation
| Company | P/E | P/B | RoE | Margin |
|---|---|---|---|---|
| Mastek Limited | 12.59 | — | 14.81 | 10.92 |
| RailTel Corporation of India Limited | 24.03 | — | 16.25 | 8.1 |
| Protean eGov Technologies Limited | 19.8 | — | 9.69 | 10.08 |
| Allied Digital Services Limited | 15.52 | — | 4.74 | 3.67 |
| Aurionpro Solutions Limited | 18.62 | — | 12.92 | 15.01 |
At the ₹130 upper band, the issue is priced at 13.7x earnings — a 26% discount to the peer median of 18.6x. This is the arithmetic of the price band against the peers the filing itself lists; it is not a view on whether the offer is worth taking.
IT & System Integration Vitals
The operating metrics that actually price this business — the ones a generic IPO page skips. Straight from the filing.
| Metric | Value | Detail |
|---|---|---|
| Unexecuted Order Book | ₹ 1,204.72 crore | as of June 30, 2026 across healthcare, e-governance, and telecom |
| E-Governance Revenue Share | 68.39% | share of FY26 revenue from operations |
| Government & PSU Revenue Share | 89.41% | share of FY26 revenue from government and public sector entities |
| Point-in-time SITC Billings Share | 62.03% | share of FY26 revenue recognized at a point in time (₹ 279.15 crore) |
Source: p.241, p.245, p.326
🔍 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.
SRIT India Limited recorded negative cash flow from operations of ₹ -12.10 crore in Fiscal 2026 (compared to positive CFO of ₹ 17.97 crore in FY25 and ₹ 34.16 crore in FY24) as cash was absorbed into contract assets (₹ 153.80 crore) and other current assets.
p.328, p.428Top ten customers accounted for 89.36% of FY26 revenue from operations (92.68% in FY25), with government and public sector entities contributing 89.41% of total top-line revenue.
p.32, p.403Subcontracting and technical fees represented 69.54% of total income in FY26 (71.54% in FY25 and 65.18% in FY24), reflecting significant outsourcing of project execution.
p.418, p.423The public offer consists 100% of a Fresh Issue of up to 16,800,000 Equity Shares with no secondary Offer for Sale by Promoters or existing shareholders.
p.1, p.74₹ 8.02 crore in direct/indirect tax proceedings against the Company, alongside an ongoing payment dispute of ₹ 36.96 crore under the Safe Kerala project pending before the High Court of Kerala.
p.1, p.97, p.326, p.438, p.441None; Statutory auditor examination reports contain unmodified opinions for FY24-FY26, with standard emphasis of matter paragraphs noting non-current trade receivables/payables classification and strike-off of non-operational subsidiaries.
p.1, p.97, p.326, p.438, p.441Operating cash flow was negative ₹12.10 cr in FY26 while the company reported a profit after tax of ₹43.29 cr. Profit that does not arrive as cash has to be funded from somewhere else.
rule: CFO<0 & PAT>09.6% of FY26 revenue came from connected entities.
rule: RPT revenue 5-15%Short-term borrowings of ₹16.65 cr against cash of ₹5.59 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.
D&B Report and RHP confirm execution of over 103 projects with a total order value of ₹ 1,234.72 crore over the last decade, with an active Order Book of ₹ 1,204.72 crore as of June 30, 2026.
p.156, p.240, p.245Restated consolidated financial statements show PAT margin expanding to 9.62% in FY26 (up from 8.63% in FY25) and debt-to-equity ratio decreasing to 0.23x in FY26, though operating cash flow turned negative in FY26 at ₹ -12.10 crore.
p.245, p.326, p.406Proprietary SWOT — Company-Specific
Strengths
- 26-year operational track record with deep system integration capabilities and proprietary software product IP across healthcare (RHES), telecom (R-Converge), and e-governance.
- Diversified unexecuted Order Book of ₹ 1,204.72 crore as of June 30, 2026, providing high revenue visibility.
Weaknesses
- Working capital intensive business model leading to negative operating cash flow of ₹ -12.10 crore in FY26.
- Customer concentration with top 10 government/PSU clients contributing 89.36% of FY26 revenue.
Opportunities
- Accelerating digital public infrastructure investments across Ayushman Bharat Digital Mission, 5G backhaul fiberization, and urban e-governance schemes in India.
- Expanding recurring revenue streams through cloud-hosted SaaS models (OP LIVE, R-Converge modernization) and international market penetration.
Threats (material, not boilerplate)
- Delayed payment release or milestone certification cycles on large government contracts. risk_section
Why it matters: Delayed annuity or milestone payments (such as the Safe Kerala dispute) lock up working capital and strain liquidity.
Live Subscription Status
Allotment Status
Check your allotment on the registrar's portal → Registrar: KFin Technologies
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 (11 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 will the net fresh issue proceeds be utilized?
SRIT India Limited will allocate ₹ 124.00 crore towards funding incremental working capital requirements, ₹ 12.86 crore for product modernization and redevelopment (RHES, R-Converge, RCM), and the remainder towards inorganic acquisitions and general corporate purposes.
p.115, p.116What is SRIT's customer concentration and public sector exposure?
Government and public sector entities contributed 89.41% of FY26 revenue from operations (91.34% in FY25), with the top 10 customers representing 89.36% of total top-line revenue.
p.32, p.403What drove top-line growth and net profit expansion in Fiscal 2026?
Consolidated revenue from operations grew by 15.58% to ₹ 449.99 crore in FY26, while restated PAT increased by 28.82% to ₹ 43.29 crore, supported by a higher share of point-in-time SITC deliverable billings and gross margin improvement to 28.52%.
p.326, p.424, p.425What caused the negative operating cash flow in Fiscal 2026?
Operating cash flow turned negative at ₹ -12.10 crore in FY26 due to working capital lock-up in unbilled contract assets (₹ 153.80 crore as of March 31, 2026) and trade receivables across ongoing e-governance and telecom project execution cycles.
p.328, p.428What 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 |
|---|---|---|---|
| Service & Trade Company LLC / Dr. Nambiar Raghavan Madhusoodan | ₹10.00 | 2001-02-19 | 13.0x |
| An early round from roughly 26 years ago, at roughly 13.0x 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. | |||
| Dr. Nambiar Raghavan Madhusoodan, P.N.C. Menon, Sobha Limited | ₹10.00 | 2006-01-27 | 13.0x |
| An early round from roughly 21 years ago, at roughly 13.0x 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. | |||
| Dr. Nambiar Raghavan Madhusoodan, Martin Poovakkulam Chacko, Prasaktha Vakkiyl Nambiar | ₹10.00 | 2022-03-30 | 13.0x |
| An early round from roughly 5 years ago, at roughly 13.0x 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. | |||
| Dr. Nambiar Raghavan Madhusoodan, Martin Poovakkulam Chacko, Prasaktha Vakkiyl Nambiar | ₹70.00 | 2025-07-25 | 1.9x |
| Fortune Hands Growth Fund, SB Opportunities Fund I, NNM Securities, Bluestone Business Equity | ₹95.00 | 2025-08-11 | 1.4x |
| Vajra Machineries, Ebony Capital Services, NNM Securities | ₹95.00 | 2025-11-18 | 1.4x |
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.
- 06 Apr 2028Minimum Promoters' Contribution18 months
- 06 Apr 2027Promoters' Shareholding in Excess of Minimum Contribution6 months
- 06 Apr 2027Entire Pre-Issue Equity Share Capital6 months
- 05 Nov 2026Anchor Investor Portion (50%)30 days
- 04 Jan 2027Anchor Investor Portion (50%)90 days
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.
