Atomberg Technologies Limited IPO

01At a glance

What the company does: designs and sells ceiling, table and exhaust fans with its own energy-efficient motors, smart locks, mixer grinders and water purifiers, and through a subsidiary supplies motors and controllers to other manufacturers (AP p.3).

Who pays it: households, through distributors, dealers, shops, marketplaces, quick-commerce apps and its own website; and appliance makers such as Voltas, Godrej and Blue Star for components (AP p.3).

Why it is raising money: ₹900 million to repay borrowings, ₹1,500 million for brand and performance marketing, ₹1,000 million for research and development, and the rest for general purposes (AP p.6).

How fast it has grown: revenue from ₹7,970 million in FY24 to ₹12,938 million in FY26 (AP p.8).

The one thing to understand: fans make the money and everything else loses it. The home-appliances segment earned ₹1,352.99 million in FY26, while kitchen appliances lost ₹432.82 million and components ₹373.80 million, and the company as a whole lost money in each of the last three years (AP p.8, AP p.9).

02The business, in plain words

An appliance brand designs products, makes or assembles them, and sells them through shops and online at a margin, spending heavily on advertising to build the brand. Atomberg's pitch is its brushless DC motor, which uses less electricity than conventional fan motors; it now sells that motor to other appliance makers too.

A household wants a fan that uses less power → it picks an Atomberg fan at a shop or online → Atomberg designs the motor and electronics, manufactures around Pune and sells through distributors and marketplaces → it earns the product margin, less marketing and service costs.

Manufacturing and R&D are concentrated in facilities in and around Pune (DRHP p.32). The company reports three segments: home appliances, kitchen appliances and proprietary components (AP p.3).

Earnings equation: Profit ≈ units × product margin − marketing − R&D − overheads. Product margin was 42.97% of revenue in FY26, and R&D spending 6.71% (AP p.8).

03Where the money comes from

Source: AP p.8. Before inter-segment elimination.

Source: AP p.9.

04The growth record

Source: AP p.7, AP p.8.

Our arithmetic: revenue compounded about 27.4% a year from FY24 to FY26, and the adjusted EBITDA margin moved from −19.1% to −2.9% (AP p.8). Receivable days were 65.09 in FY24, 56.60 in FY25 and 57.12 in FY26 (DRHP p.43).

05What the growth is made of

Two new lines added most of the FY26 increase. Kitchen appliances went from ₹193 million to ₹1,240 million, and components from ₹169 million to ₹1,564 million, while fans grew 24% (AP p.8, our arithmetic). The new lines are loss-making at the segment level (AP p.9).

The adjusted EBITDA loss narrowed each year, from ₹1,520.74 million in FY24 to ₹371.22 million in FY26, but the loss after tax widened again in FY26 (AP p.8, AP p.7). R&D spending doubled over the two years, to ₹867.89 million (AP p.8).

06Earnings quality

Operating cash flow was negative ₹2,189.83 million in FY26 (AP p.7). The company uses channel-financing facilities for its distributors, which carry liquidity and counterparty risk (DRHP p.42). It has breached financial covenants in the past, which lenders waived (DRHP p.34). The joint statutory auditors' reports for the past three years contain modifications and observations (DRHP p.40).

07The balance sheet

Source: AP p.8.

Net worth roughly halved in FY25 on losses and was rebuilt in FY26 by financing inflows of ₹2,649.11 million (AP p.7, AP p.8).

08What the money is for

Source: AP p.6.

A pre-IPO placement of up to ₹900 million may reduce the fresh issue (AP p.6). Because the company does not meet Regulation 6(1)(a) and 6(1)(b), the offer is made under Regulation 6(2) (AP p.1).

09Who is selling

Source: AP p.1, AP p.2. Other investors, including Survam Partners with up to 3,318,220 shares, make up the rest of 76,541,851.

A91 would part with about 35% of its 109,053,420 shares (AP p.7, our arithmetic).

The cover's offer-for-sale table names seven investor sellers: A91 Emerging Fund I LLP, up to 37,699,277 shares; V-Sciences Investments Pte. Ltd., up to 12,249,902; JV4, up to 9,946,394; Inflexor Opportunities Fund 1, up to 4,940,000; Steadview Capital Mauritius Limited, up to 4,538,058; Inflexor Technology Fund, up to 3,850,000; and Survam Partners LLP, up to 3,318,220 (DRHP p.1).

10Promoters

The promoters are the founders Manoj Kumar Meena, managing director and chairman, and Sibabrata Das (AP p.5). Between them they hold 27.75% on a fully diluted basis (AP p.7).

11Who already owns it

Source: AP p.7.

Investors outside the promoters hold 67.41% through the top ten alone (AP p.7).

12What changed just before the IPO

• New lines: kitchen appliances and components reached ₹2,804 million of revenue in FY26, from ₹362 million a year earlier (AP p.8, our arithmetic).

• Equity: financing inflows of ₹2,649.11 million in FY26 restored net worth (AP p.7).

• Loss: widened in FY26 despite a smaller adjusted EBITDA loss (AP p.7, AP p.8).

• Public company: converted from a private limited company in May 2026 (DRHP p.3).

• Promoter pay: short-term employee benefits to the two promoters were ₹24.69 million in FY24 and ₹36.50 million in FY26 (our arithmetic, DRHP p.369).

• Auditors: Jain & Chopra resigned in October 2023 and SSKM & Associates was appointed joint statutory auditor for FY24 to FY28, alongside S R B C & CO LLP (DRHP p.92).

13Capacity and expansion

Manufacturing is around Pune (DRHP p.32). The offer funds R&D and marketing rather than new plant (AP p.6). The document lists slowdowns or shutdowns at its facilities as a risk (DRHP p.40).

14Market size and industry structure

The Redseer report cited in the offer document argues that engineering-led companies are shifting Indian consumer appliances towards energy-efficient, connected products, helped by rising incomes, stricter efficiency rules and Make in India (AP p.5). That view is Redseer's, and newboard has not tested it.

15Competitive position

What the document claims, and what it rests on:

• Its own motor technology, energy-efficient and now sold to other appliance makers (AP p.3, DRHP p.31).
• Omni-channel reach, including quick commerce (AP p.3).
• Component customers among large appliance brands, Voltas, Godrej and Blue Star (AP p.3).

Against that: the fan market has large established brands, which the document names in its industry section, and the new lines are losing money (DRHP p.214, AP p.9).

16Peers the company named

None as comparable. The document states there are no listed companies in India or abroad similar to it, so it gives no peer comparison (DRHP p.164). It made a loss in each year, so there is no P/E even after a price band is set.

17Risks, in plain words

• Losses. Loss-making in each of the last three years, with negative operating cash flow in FY26 (DRHP p.33).
• Fans. Home appliances are most of revenue and all of the segment profit (DRHP p.30, AP p.9).
• New categories. Kitchen appliances and components are losing money as they grow (DRHP p.31, AP p.9).
• One location. Manufacturing and R&D are around Pune (DRHP p.32).
• Covenants. Past breaches of loan covenants, waived by lenders (DRHP p.34).
• Supply chain. Components and sub-assemblies come from third parties, some imported (DRHP p.32, DRHP p.38).

18Litigation and regulatory matters

The litigation summary was not read in detail for this study. The document lists regulatory requirements on energy efficiency and product safety as a risk (DRHP p.41).

19Related-party transactions

Not read in detail for this study.

20What the offer document does not say

In the sections read for this study, the document does not give:

• When kitchen appliances and components are expected to break even.
• Units sold, or market share in fans, in the pages read.
• How much channel financing distributors use, and who bears the credit risk.
• The covenants breached and when.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. What revenue does the kitchen-appliances segment need to cover its costs?
2. Why did the loss after tax widen in FY26 while the adjusted EBITDA loss narrowed?
3. What margin do components earn from Voltas, Godrej and Blue Star, and are the contracts long-term?
4. Which covenants were breached, and what are the current headroom levels?
5. How much of the ₹1,500 million for marketing is performance marketing on marketplaces?

2Sources and cited facts

This study was read from 2 documents the company filed. The 57 figures it cites are listed under the document each came from, with the page and the sentence as printed.