Xtranet Technologies
FinMinutes Deep Business Model & Edge
Xtranet Technologies Limited is an integrated information technology solutions provider delivering end-to-end services including enterprise applications, digital services, and managed services. The company earns revenue through fixed-price contracts, time-and-materials arrangements, and recurring service agreements from both government/PSU and private sector clients.
What this company actually does — full breakdown ▾
Xtranet Technologies Limited is an integrated IT solutions provider headquartered in Bhopal, Madhya Pradesh, with a pan-India presence and an associate in Dubai. The company delivers end-to-end services encompassing enterprise applications, managed services, digital services, and proprietary platforms. Operating predominantly in the B2G and B2B segments, Xtranet derives a substantial 47.06% of its Fiscal 2026 revenue from Government and PSU clients, executing critical smart city, law enforcement, and e-governance IT infrastructure projects. The balance of its revenue is generated from private enterprises across diverse sectors such as healthcare, defense, and financial services. Scale is supported by a large distributed delivery model with major project execution focused in Maharashtra, Madhya Pradesh, and Delhi. The company's supply chain heavily relies on third-party hardware/software OEMs and distributors, posing a high concentration risk as its top 10 suppliers account for 95.24% of total purchases in FY26. What distinguishes Xtranet from pure-play IT integrators is its strong proprietary portfolio, notably the Synergy low-code digital transformation platform and its subsidiary XtraTrust, which operates as a licensed Certifying Authority providing digital signature and e-Sign services. This dual capability allows it to capture higher-margin platform revenues alongside its traditional system integration and infrastructure management contracts.
- Enterprise Applications — Includes ERP implementation and support services, IT system integration services, data centres, and application development.
- Managed Services — Outsourcing of ongoing management, monitoring, and support of IT systems, infrastructure, and applications.
- Digital Services — Digital transformation services and implementation of emerging technologies like AI, IoT, Cloud, and Blockchain.
- Proprietary Platforms & Products — Revenue generated from in-house platforms including Synergy (low-code platform), XtraTrust (digital signatures), X-ERP, and Smart Lockers.
Proprietary software platforms, notably XtraTrust (a licensed Certifying Authority for digital signatures) and Synergy (a low-code digital transformation platform), which integrate with their large-scale government and enterprise IT infrastructure projects to drive higher margins.
The Offer
Follow the Money — Use of Proceeds
- Repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by our Company — ₹20.20 cr
- Capital expenditure by our Company for purchase of systems and hardware — ₹8.48 cr
- To meet working capital requirements — ₹102.00 cr
- General corporate purposes
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, what it is worth, and where we are still using a neutral default rather than guessing. Weighted across 7 components.
How this is measured6%
The market window around the issue date. This is currently a neutral placeholder: we have not yet wired it to index trend and recent listing performance, so it does not move the score in either direction.
How this is measured12%
Whether marquee anchor investors took part, and how many. Held at a neutral 50 when no marquee anchor is identified in the filing.
How this is measured10%
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 measured24%
Taken from the three-year numbers in the filing: whether the company was profitable in the latest year, and whether profit is rising or falling across the disclosed period.
How this is measured16%
Where the multiples printed in the filing sit against the peer median. When the filing does not disclose comparable peer multiples, this is held at a neutral 55 rather than guessed.
How this is measured14%
A proxy for syndicate strength, based today only on how many lead managers are on the issue. It sits at a neutral 60 unless three or more banks are involved. We have not yet built a bank-by-bank track record, so treat this as a rough signal.
How this is measured18%
Starts at 100 and loses points for every material red flag we find in the filing: contingent liabilities, related-party intensity, customer concentration, litigation, auditor qualifications. This is the component our DRHP forensics drives directly.
3-Year Financial & Growth Trend
| Metric | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue (₹ Cr) | 365.2874 | 276.0815 | 232.9407 |
| Net Profit (₹ Cr) | 40.7276 | 30.0347 | 10.9425 |
| PAT Margin | 11.15% | 10.88% | 4.7% |
Revenue Breakdown
- Managed services: 40.53%
- Enterprise Applications: 33.22%
- Digital services: 15.93%
- Proprietary platforms & products: 10.33%
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.
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 full profit and loss as restated in the filing.
| Income Statement (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue from Operations | 365.29 | 276.08 | 232.94 |
| Other Income | 0.72 | 0.45 | 0.32 |
| Total Income | 366.01 | 276.53 | 233.26 |
| Cost of Materials Consumed | 223.19 | 178.88 | 168.43 |
| Employee Benefit Expense | 30.12 | 24.00 | 21.29 |
| Other Expenses | 47.77 | 52.72 | 42.92 |
| Total Expenses | 314.01 | 237.75 | 217.33 |
| Depreciation & Amortisation | 5.89 | 2.32 | 1.05 |
| Finance Cost | 5.89 | 5.26 | 2.80 |
| Profit Before Tax | 52.13 | 40.07 | 15.33 |
| Tax Expense | 11.40 | 10.04 | 4.39 |
| Profit After Tax | 40.73 | 30.03 | 10.94 |
| EPS - Basic | 10.40 | 8.15 | 3.17 |
| EPS - Diluted | 10.40 | 8.15 | 3.17 |
Balance SheetWhat the company owns, owes, and is worth on paper.
| Balance Sheet (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Share Capital | 39.15 | 7.83 | 6.90 |
| Reserves & Surplus | 96.86 | 87.66 | 31.88 |
| Net Worth | 136.01 | 95.49 | 38.78 |
| Long-term Borrowings | 41.48 | 17.25 | 18.48 |
| Short-term Borrowings | 43.96 | 21.99 | 22.71 |
| Total Borrowings | 85.45 | 39.24 | 41.19 |
| Trade Payables | 90.18 | 165.89 | 109.87 |
| Current Liabilities | 163.31 | 207.11 | 142.89 |
| Total Liabilities | 206.25 | 225.29 | 162.44 |
| Property, Plant & Equipment | 47.93 | 13.81 | 8.26 |
| Capital Work in Progress | 25.26 | 16.83 | 6.09 |
| Intangible Assets | 10.76 | 9.18 | 3.61 |
| Investments | 1.56 | 1.44 | 0.14 |
| Inventories | 78.81 | 79.97 | 54.54 |
| Trade Receivables | 114.44 | 162.34 | 100.27 |
| Cash & Equivalents | 1.46 | 1.09 | 3.17 |
| Current Assets | 213.65 | 257.63 | 173.56 |
| Total Assets | 341.97 | 321.79 | 202.94 |
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 | 27.57 | 8.62 | -1.16 |
| Capital Expenditure | 50.02 | 25.50 | 7.26 |
| Net Cash from Investing Activities | -67.52 | -30.44 | -15.81 |
| Net Cash from Financing Activities | 40.32 | 19.73 | 19.23 |
| Net Change in Cash | 0.37 | -2.09 | 2.27 |
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 (%) | 17.5 | 17.2 | 8.2 |
| EBIT Margin (%) | 15.9 | 16.4 | 7.8 |
| PAT Margin (%) | 11.1 | 10.9 | 4.7 |
| Return on Equity (%) | 29.9 | 31.5 | 28.2 |
| Return on Capital Employed (%) | 26.2 | 33.6 | 22.7 |
| Return on Assets (%) | 11.9 | 9.3 | 5.4 |
| Leverage | |||
| Debt / Equity (x) | 0.63 | 0.41 | 1.06 |
| Net Debt / EBITDA (x) | 1.31 | 0.8 | 1.98 |
| Interest Coverage (x) | 9.85 | 8.61 | 6.47 |
| Liquidity | |||
| Current Ratio (x) | 1.31 | 1.24 | 1.21 |
| Quick Ratio (x) | 0.83 | 0.86 | 0.83 |
| Efficiency | |||
| Asset Turnover (x) | 1.07 | 0.86 | 1.15 |
| Receivable Days | 114 | 215 | 157 |
| Inventory Days | 79 | 106 | 85 |
| Payable Days | 90 | 219 | 172 |
| Cash Conversion Cycle (days) | 103 | 102 | 70 |
| Quality of Earnings | |||
| Operating Cash Flow / PAT (x) | 0.68 | 0.29 | -0.11 |
| Accruals Ratio (%) | 3.8 | 6.7 | 6 |
| Capex / Depreciation (x) | 8.5 | 11.01 | 6.91 |
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) | 11.1% | 10.9% | 4.7% |
| Asset Turnover (Revenue / Assets) | 1.07x | 0.86x | 1.15x |
| Equity Multiplier (Assets / Net Worth) | 2.51x | 3.37x | 5.23x |
| = Return on Equity | 29.9% | 31.5% | 28.2% |
| Tax Burden (PAT / PBT) | 0.78x | 0.75x | 0.71x |
| Interest Burden (PBT / EBIT) | 0.9x | 0.88x | 0.85x |
| Operating Margin (EBIT / Revenue) | 15.9% | 16.4% | 7.8% |
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.
- Receivable days fell from 157 to 114. Collections improved over the disclosed period.
- Between FY24 and FY26 revenue grew 57% while profit grew 272%. Profit expanding at several times the rate of revenue is not automatically a concern — operating leverage does exactly this — but it is worth confirming from the filing whether the gap comes from genuine margin expansion or from one-off items.
- Interest coverage was 9.85x in FY26. Debt servicing is comfortably covered by operating profit.
Forensic ModelsBeneish, Altman and Piotroski — plus our own final-year check.
Beneish M-Score
M = -2.17An 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) | 0.533 | 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 | 0.905 | 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 | 1.502 | 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 | 1.323 | 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) | 1.313 | 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 | 0.767 | 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 | 0.859 | Above 1 means leverage rose. Debt covenants create pressure to hit numbers. |
| TATA Total Accruals to Total Assets (PAT - CashFromOperations) / TotalAssets | 0.0385 | 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. |
M = -2.17, below the −1.78 threshold. The model does not flag these accounts.
Altman Z″-Score (emerging markets)
Z″ = 6.97 · 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 | 0.147 |
| X2 — Retained Earnings / Total Assets | 0.283 |
| X3 — EBIT / Total Assets | 0.17 |
| X4 — Net Worth / Total Liabilities | 0.659 |
| Z″ = 3.25 + 6.56·X1 + 3.26·X2 + 6.72·X3 + 1.05·X4 | 6.97 |
Piotroski F-Score (adapted)
6 / 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 score out of eight, 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
Ratios Nobody Prints
- Contingent liabilities / Net worth: 31.4%
Contingent liabilities of 42.74 cr against a net worth of 136.01 cr — 31.4% 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. - Cash / Short-term borrowings: 0.03x
Short-term borrowings of 43.96 cr against cash of 1.46 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 1.16 cr against a profit of 40.73 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 Worth40.73 ÷ 136.01What 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)58.02 ÷ (136.01 + 85.45) = 58.02 ÷ 221.46Return on ALL the capital in the business, borrowed as well as owned. Unlike ROE, it cannot be flattered by taking on debt.
EBITDA ÷ Revenue63.90 ÷ 365.29Operating profitability before the effects of debt, tax and depreciation. What the business earns from the act of trading.
Total Borrowings ÷ Net Worth85.45 ÷ 136.01How much the company has borrowed against what it owns. High is not automatically bad — ask whether the borrowing is being serviced comfortably.
EBIT ÷ Finance Cost58.02 ÷ 5.89How 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(114.44 ÷ 365.29) × 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 Days79 + 114 − 90How 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 ÷ PAT27.57 ÷ 40.73Did 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(40.73 − 27.57) ÷ 341.97 = 13.15 ÷ 341.97The 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.
Institutional Alpha: DRHP Deep Dive
The Indian IT and ITeS industry is undergoing rapid expansion, fueled by widespread digital transformation, robust digital public infrastructure (DPI), and increased government technology spending on e-governance and smart cities. India's IT sector is pivotal globally, characterized by significant shifts toward cloud migration, AI/ML adoption, and managed IT infrastructure services. Specifically for players like Xtranet, the thrust on public sector digitalization, including various state-level automation programs, provides a massive runway. However, the sector is highly competitive and tender-driven, with strict eligibility criteria and continuous need for technological upskilling to maintain margins against established mid-sized and large IT service providers.
Future Planning & Capital Allocation
The company is raising a ₹170.00 crore fresh issue. The largest portion, ₹102.00 crore, will be deployed toward working capital to support the upfront liquidity needs (EMDs, PBGs, inventory) of large government contracts. Additionally, ₹20.20 crore will be used to prepay/repay debt to optimize leverage, and ₹8.48 crore is earmarked for IT hardware capex.
Source: RHP p. 127-133Competitive Position
Xtranet differentiates itself from pure-play IT system integrators through its proprietary platforms—specifically XtraTrust, which acts as a licensed Certifying Authority (CA) for digital signatures. Integrating its own PKI/e-Sign infrastructure into broad government digitization contracts allows it to capture higher margin, recurring revenue streams that typical hardware integrators cannot.
Source: RHP p. 254-255, 268Execution / Track Record
The company delivered robust financial scaling, growing revenue from ₹232.94 crore in FY24 to ₹365.28 crore in FY26 while significantly expanding EBITDA margins from 8.10% to 17.30%. However, this rapid operational growth outpaced its internal governance controls, evidenced by missing RoC records, delayed statutory payments (PF, GST), and auditor warnings on MSME payment delays.
Source: RHP p. 39-42, 54-55, 352Shareholding, Syndicate & Leadership
Leadership & Skin in the Game
Leadership: Sukhbir Singh Kukreja (Managing Director)
Litigation: Against Company: 3 tax proceedings (₹166.05 lakhs) and 2 non-material civil proceedings (₹293.70 lakhs). Against Subsidiaries: 2 tax proceedings (₹32.16 lakhs). Against Promoters: 2 tax proceedings (₹33.66 lakhs).
Auditor / RPT Flags: Emphasis of Matter for FY25: Failure to enable the audit trail (edit log) feature in accounting software. Emphasis of Matter for FY26: Non-recognition of interest liability of ₹269.09 lakhs on delayed payments to MSMEs under the MSMED Act.
Peers & Valuation
| Company | P/E | P/B | RoE | Margin |
|---|---|---|---|---|
| Silver Touch Technologies Limited | 63.65 | — | 21.06 | — |
| Dynacons Systems & Solutions Limited | 20.2 | — | 26.89 | — |
| Coforge Limited | 35.51 | — | 16.31 | — |
🔍 Forensic Findings — What the Footnotes Say
Risks hiding outside the risk section — mined from MD&A, related-party notes, contingent liabilities and litigation. This is the FinMinutes edge.
In FY26, the top 10 suppliers accounted for 95.24% of total purchases, up from 74.83% in FY25 and 71.72% in FY24.
RHP p. 30, Risk FactorsThe top 10 customers accounted for 86.72% of total revenue from operations in FY26. The single largest customer contributed 23.06% of the revenue.
RHP p. 31, 278, Risk FactorsThe company has a history of severe RoC non-compliances, including an unlawful loan to a director of ₹211 lakhs (compounded), utilizing private placement funds prior to filing PAS-3 (resulted in ₹15+ lakhs penalties), and failure to file Consolidated Financial Statements for 7 years (resulted in ₹8.66 lakhs penalty).
RHP p. 39-42, Risk FactorsThe statutory auditor flagged an Emphasis of Matter in FY26 regarding the company's failure to recognize an interest liability of ₹269.09 lakhs for delayed payments to Micro and Small Enterprises, contrary to the MSMED Act requirements.
RHP p. 35-36, 676Crucial trademarks, including the core 'XtraNet' brand and 'getlabh.com', were incorrectly registered under the 'Single Firm' category instead of 'Body Incorporate', or are registered in the personal name of the Promoter.
RHP p. 37-38, 471-472Against Company: 3 tax proceedings (₹166.05 lakhs) and 2 non-material civil proceedings (₹293.70 lakhs). Against Subsidiaries: 2 tax proceedings (₹32.16 lakhs). Against Promoters: 2 tax proceedings (₹33.66 lakhs).
RHP p. 35-36, 113, 148, 290, 468-469, 676Emphasis of Matter for FY25: Failure to enable the audit trail (edit log) feature in accounting software. Emphasis of Matter for FY26: Non-recognition of interest liability of ₹269.09 lakhs on delayed payments to MSMEs under the MSMED Act.
RHP p. 35-36, 113, 148, 290, 468-469, 676Company's Claims vs Reality
We stress-test each claim against the filing's own data.
Does the operational data support this success rate?
RHP p. 277-278 (Average bid-to-win ratio of 41% across 518 bids submitted from FY24 to FY26)Do the cash flow statements reflect this?
RHP p. 43, 353 (Net cash from operations rebounded from negative ₹116.01 lakh in FY24 to positive ₹2,757.39 lakh in FY26)Proprietary SWOT — Company-Specific
Strengths
- Diverse service portfolio spanning enterprise applications, managed services, and proprietary digital platforms (including the Synergy low-code platform and XtraTrust digital signatures).
- Proven execution track record with Government/PSU clients, supported by a 41% bid-to-win ratio and high-level process maturity certifications (CMMI Level 5, ISO 27001).
Weaknesses
- Extreme reliance on top 10 customers (86.72% of revenue) and top 10 suppliers (95.24% of purchases), posing significant concentration risks.
- Poor track record of statutory compliances, marked by multiple penalties for late filings, missing corporate records, and unrecognized MSME interest obligations.
Opportunities
- Strong tailwinds in India's digital public infrastructure, smart city initiatives, and e-governance spending, aligning with the company's B2G focus.
- Expansion of proprietary platforms like XtraTrust (Certifying Authority) to capitalize on the growing demand for digital identity, e-Sign, and compliance solutions in the BFSI sector.
Threats (material, not boilerplate)
- Heavy dependence on tender-driven Government/PSU projects. risk_section
Why it matters: Changes in government procurement policies, budget reallocations, or failure to meet stringent pre-qualification criteria could suddenly dry up the company's primary revenue pipeline. - High Performance Bank Guarantee (PBG) requirements. risk_section
Why it matters: The company has ₹4,009.45 lakhs in outstanding bank guarantees. Invocation of these guarantees due to project delays or SLA breaches would severely impair liquidity and cash flows.
Live Subscription Status
Analyst Q&A: Burning Questions
Facts from the filing. No recommendation — that layer arrives once our Research Analyst registration is live.
Where is the money going?
The IPO is a 100% fresh issue of ₹170.00 crore. The proceeds will be allocated towards working capital requirements (₹102.00 crore), repayment or pre-payment of certain borrowings (₹20.20 crore), and capital expenditure for systems and hardware (₹8.48 crore), with the balance for general corporate purposes.
RHP p. 127How concentrated is the customer and supplier base?
The company exhibits extreme concentration. In FY26, the top 10 customers accounted for 86.72% of total revenue from operations, while the top 10 suppliers accounted for 95.24% of total purchases.
RHP p. 30-31Is it profitable and growing?
Yes. Revenue from operations grew from ₹232.94 crore in FY24 to ₹365.28 crore in FY26. Profit After Tax (PAT) grew correspondingly from ₹10.94 crore in FY24 to ₹40.72 crore in FY26, with Return on Equity at 34.78% for FY26.
RHP p. 352What sits in the footnotes / contingent liabilities?
The company has contingent liabilities totaling ₹42.73 crore in FY26, dominated by bank guarantees of ₹40.09 crore. Footnotes also reveal a statutory auditor's 'Emphasis of Matter' regarding the company's decision not to recognize ₹2.69 crore in interest liabilities owed to MSMEs for delayed payments.
RHP p. 35-36, 47, 676What 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 |
|---|---|---|---|
| Hira Infratek Limited | ₹50.00 | 2023-03-10 | 2.5x |
| The 3 allotments below are shown at their as-disclosed per-share price. These prices are not adjusted for any later bonus issue or share split, so where the company has issued bonus shares the raw multiple understates the true return and can even read as a loss when none was made. We show them as filed and decline to compute a misleading multiple. Bonus-adjusted cost is on the roadmap. | |||
| Strategic Sixth Sense Capital Fund | ₹325.00 | 2024-09-28 | as disclosed |
| Minerva Ventures | ₹325.00 | 2024-09-28 | as disclosed |
| Sixth Sense Venture Partners LLP | ₹325.00 | 2024-09-28 | as disclosed |
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.
- 30 Mar 2027Minimum Promoters' Contributioneighteen months
- 30 Jan 2027Promoters' shareholding in excess of 20%six months
- 30 Jan 2027Equity Shares held by persons other than Promoterssix months
- 28 Oct 2026Anchor Investors (50%)90 days
- 29 Aug 2026Anchor Investors (50%)30 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.
What Changed Between the DRHP and the RHP
Companies file a draft prospectus, then a final one. The changes in between are rarely reported, and they can be revealing.
| Item | In the DRHP | In the RHP / Addendum |
|---|---|---|
| Total issue size The total issue size (which consists entirely of a fresh issue) was reduced by ₹2,000.00 lakhs between the draft and the final filing. | Up to ₹19,000.00 lakhs | Up to ₹17,000.00 lakhs |
| Financial Information Period The restated financial statements were rolled forward by one full fiscal year, adding the newly completed FY26 and dropping FY23. | Restated financial statements for the years ended March 31, 2025, March 31, 2024, and March 31, 2023 | Restated financial statements for the years ended March 31, 2026, March 31, 2025, and March 31, 2024 |
| Litigation / Employee Claim A new specific labor-related claim against the company was added to the disclosures in the RHP. | Not present | A former employee, Pradeep Pathak, filed a claim before the CGIT-cum-Labour Court seeking recovery of ₹1.18 lakh and ancillary compensation of ₹10 lakh. |
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