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Chartered Speed Limited IPO

DRHP 4 Sep 2025

DRHP filed
4 Sep 2025
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Chartered Speed Limited: what the offer document says

An Ahmedabad bus operator with about 2,000 buses, running inter-city ticketed services and buses for state transport undertakings on per-kilometre contracts, is making an ₹8,550 million offer: ₹6,550 million of new shares, mainly to repay ₹3,965 million of debt and add electric buses, and ₹2,000 million sold by its two main promoters. Revenue nearly doubled to ₹6,668 million in FY25 and the company swung to a ₹701 million profit, almost all from a jump in contract work — its largest customer was 62% of FY25 revenue.

Published 21 Sep 2026 · 1,244 words · read from the DRHP

01At a glance

What the company does — passenger bus services: it buys, operates and maintains buses, including electric buses, for inter-city and intra-city routes across six states, with over 2,000 buses, 650 pick-up points and 65 booking offices at June 2025 (DRHP p.24). It earns either ticket revenue from passengers or fees from state transport undertakings under an "annuity" model billed per kilometre (DRHP p.121).

Who pays it — state transport undertakings under the annuity model, ₹4,781.01 million of FY25 revenue, and passengers on its own routes, ₹1,596.36 million (DRHP p.121). The largest customer was 61.68% of FY25 revenue, up from 18.15% in FY24 (DRHP p.210).

Why it is raising money — ₹3,964.74 million to repay borrowings, ₹980.00 million for electric buses, and the rest for general purposes (DRHP p.25).

How fast it has grown — revenue of ₹3,321 million in FY23, ₹3,473 million in FY24 and ₹6,668 million in FY25 (DRHP p.27).

The one thing to understand — a turnaround built on one contract customer. Annuity revenue tripled in FY25 while ticket revenue kept falling; EBITDA margin rose from 14.38% to 31.62% and net worth turned positive for the first time in the three years, but one customer now provides almost two-thirds of revenue (DRHP p.27, DRHP p.121, DRHP p.210).

02The business, in plain words

A bus operator owns a fleet and either sells tickets on its own inter-city routes or runs buses for a state transport undertaking, which pays it per kilometre.

A state transport undertaking needs electric buses on city routes → it contracts Chartered Speed to supply and run them → the company operates the buses with its drivers and maintains them → the undertaking pays per kilometre billed.

The company billed 62.88 million kilometres under annuity contracts in FY25, up from 30.67 million in FY24 (DRHP p.121).

Earnings equation: Profit ≈ kilometres billed × rate per km + ticket revenue − fuel, drivers and maintenance − depreciation and interest. Fuel was 30.60% of FY25 revenue, down from 45.07% in FY23 (DRHP p.121).

03Where the money comes from

MeasureFY23FY24FY25
Annuity model sales, ₹ million1,120.391,606.764,781.01
Ticket model sales, ₹ million2,073.951,786.631,596.36
Largest customer's share of revenue12.45%18.15%61.68%
Fleet of buses8111,6291,943
Inter-city occupancy67.82%77.90%68.93%

Source: DRHP p.121, DRHP p.210.

04The growth record

₹ million, restated consolidatedFY23FY24FY25
Revenue from operations3,320.763,473.026,667.74
EBITDA263.33499.272,108.09
EBITDA margin7.93%14.38%31.62%
Profit after tax(83.16)(54.94)700.96
Cash from operations221.46310.242,079.61

Source: DRHP p.27, DRHP p.121, DRHP p.340.

05What the growth is made of

One large contract. Revenue from the largest customer rose from ₹630.31 million in FY24 to ₹4,112.69 million in FY25, an increase of ₹3,482.38 million — more than the company's entire FY25 revenue increase of ₹3,194.72 million (our arithmetic, DRHP p.27, DRHP p.210). Ticket revenue fell for a second year (DRHP p.121).

06Earnings quality

Cash is strong: operating cash flow was ₹2,079.61 million in FY25, helped by negative working capital of 71 days (DRHP p.121, DRHP p.340). But the fleet absorbed ₹5,242.50 million of capital spending in FY24 and FY25 (our arithmetic, DRHP p.268). Depreciation was ₹797.14 million and interest ₹582.32 million in FY25 (DRHP p.340).

07The balance sheet

₹ millionMar 2023Mar 2024Mar 2025
Net worth(202.11)(145.07)668.64
Total borrowings1,648.954,587.485,179.59
Net debt1,597.754,423.005,008.57

Source: DRHP p.27, DRHP p.121.

08What the money is for

Use of net proceeds₹ million
Repay borrowings3,964.74
Electric buses980.00
General corporate purposesnot yet stated

Source: DRHP p.25. A pre-IPO placement of up to ₹1,310 million may be made (DRHP p.25).

09Who is selling

SellerOffered, ₹ millionHolding before the offer
Pankaj Gandhi (promoter)up to 1,00058.07%
Alka Pankaj Gandhi (promoter)up to 1,00038.58%

Source: DRHP p.26, DRHP p.82.

10Promoters

The promoters are Pankaj Gandhi, Alka Pankaj Gandhi and Sanyam Gandhi (DRHP p.24). Three regulatory proceedings involving ₹0.60 million are pending against the promoters, who are also directors (DRHP p.27).

11Who already owns it

Holder, before the offerShare
Pankaj Gandhi58.07%
Alka Pankaj Gandhi38.58%
Others, including Raajdeep Enterprises, Devang Sanghvi and Dinesh Genaram Mistry3.35%

Source: DRHP p.26. The last row is our arithmetic.

12What changed just before the IPO

  • Contract work — annuity revenue tripled in FY25 (DRHP p.121).
  • Profit — first profit in the three years (DRHP p.27).
  • Fleet — more than doubled since FY23 (DRHP p.121).

13Capacity and expansion

Capacity is the fleet: 1,943 buses at March 2025 and over 2,000 by June 2025, with in-house maintenance facilities in Ahmedabad (DRHP p.24, DRHP p.121, DRHP p.210). The proceeds fund more electric buses (DRHP p.25).

14Market size and industry structure

The F&S report cited in the offer document projects India's bus population to grow from 2.40 million in FY2024 to 3.16 million by FY2030 and the mobility industry about 9.5% a year from FY2025 to FY2030 (DRHP p.24). Those projections are F&S's, and newboard has not tested them.

15Competitive position

What the document claims, and what it rests on:

  • A leading bus operator with a self-owned fleet, citing F&S (DRHP p.24, DRHP p.120).
  • Lower fuel share — fuel fell from 45% to 31% of revenue over two years (DRHP p.121).

Against that: dependence on one contract customer, state transport policy, fuel prices, and debt to fund buses (DRHP p.121, DRHP p.210).

16Peers the company named

None. The document says no listed company in India or abroad has a directly comparable business model (DRHP p.120).

No P/E is possible for the company until a price band is set.

17Risks, in plain words

  • One customer. 62% of FY25 revenue (DRHP p.210).
  • Ticket business. Falling revenue (DRHP p.121).
  • Debt. ₹5,180 million of borrowings (DRHP p.27).
  • Fuel. Nearly a third of revenue (DRHP p.121).
  • Contracts. Annuity work depends on state transport undertakings (DRHP p.121).

18Litigation and regulatory matters

Proceedings outstandingCount₹ million
Against the company — tax, regulatory1, 1398.95
Against a subsidiary — civil119.63
Against promoters and directors — regulatory30.60

Source: DRHP p.27.

20What the offer document does not say

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

  • Who the largest customer is, or how long its contract runs, in the pages read.
  • What the ₹398.95 million tax and regulatory matters concern, in the pages read.
  • Why ticket revenue has been falling, in the pages read.
  • Which buses carry the debt being repaid, in the pages read.
  • The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

  1. Who is the customer that paid ₹4.1 billion in FY25, and when does the contract end?
  2. What happens to profit if that contract is not renewed?
  3. Why has the ticketed inter-city business shrunk for two years?
  4. What are the ₹399 million of tax and regulatory claims?
  5. How much debt remains on the fleet after the repayment?

1Sources and cited facts

This study was read from 1 document the company filed. The 25 figures it cites are listed under the document each came from, with the page and the sentence as printed.

Chartered Speed Limited DRHPdrhp · filed 2025-09-0425 facts
  1. 1
    At a glanceWhat the company does** — passenger bus services: it buys, operates and maintains buses, including electric buses, for inter-city and intra-city routes across six states, with over 2,000 buses, 650 pick-up points and 65 booking offices at June 2025 (DRHP p.24).p.24

    “What the company does** — passenger bus services: it buys, operates and maintains buses, including electric buses, for inter-city and intra-city routes across six states, with over 2,000 buses, 650 pick-up points and 65 booking offices at June 2025 (DRHP p.24).”

  2. 2
    At a glanceIt earns either ticket revenue from passengers or fees from state transport undertakings under an "annuity" model billed per kilometre (DRHP p.121).p.121

    “It earns either ticket revenue from passengers or fees from state transport undertakings under an "annuity" model billed per kilometre (DRHP p.121).”

  3. 3
    At a glanceWho pays it** — state transport undertakings under the annuity model, ₹4,781.01 million of FY25 revenue, and passengers on its own routes, ₹1,596.36 million (DRHP p.121).p.121

    “Who pays it** — state transport undertakings under the annuity model, ₹4,781.01 million of FY25 revenue, and passengers on its own routes, ₹1,596.36 million (DRHP p.121).”

  4. 4
    At a glanceThe largest customer was 61.68% of FY25 revenue, up from 18.15% in FY24 (DRHP p.210).p.210

    “The largest customer was 61.68% of FY25 revenue, up from 18.15% in FY24 (DRHP p.210).”

  5. 5
    At a glanceWhy it is raising money** — ₹3,964.74 million to repay borrowings, ₹980.00 million for electric buses, and the rest for general purposes (DRHP p.25).p.25

    “Why it is raising money** — ₹3,964.74 million to repay borrowings, ₹980.00 million for electric buses, and the rest for general purposes (DRHP p.25).”

  6. 6
    At a glanceHow fast it has grown** — revenue of ₹3,321 million in FY23, ₹3,473 million in FY24 and ₹6,668 million in FY25 (DRHP p.27).p.27

    “How fast it has grown** — revenue of ₹3,321 million in FY23, ₹3,473 million in FY24 and ₹6,668 million in FY25 (DRHP p.27).”

  7. 7
    The business, in plain wordsThe company billed 62.88 million kilometres under annuity contracts in FY25, up from 30.67 million in FY24 (DRHP p.121).p.121

    “The company billed 62.88 million kilometres under annuity contracts in FY25, up from 30.67 million in FY24 (DRHP p.121).”

  8. 8
    The business, in plain wordsFuel was 30.60% of FY25 revenue, down from 45.07% in FY23 (DRHP p.121).p.121

    “Fuel was 30.60% of FY25 revenue, down from 45.07% in FY23 (DRHP p.121).”

  9. 9
    What the growth is made ofTicket revenue fell for a second year (DRHP p.121).p.121

    “Ticket revenue fell for a second year (DRHP p.121).”

  10. 10
    Earnings qualityDepreciation was ₹797.14 million and interest ₹582.32 million in FY25 (DRHP p.340).p.340

    “Depreciation was ₹797.14 million and interest ₹582.32 million in FY25 (DRHP p.340).”

  11. 11
    What the money is forA pre-IPO placement of up to ₹1,310 million may be made (DRHP p.25).p.25

    “A pre-IPO placement of up to ₹1,310 million may be made (DRHP p.25).”

  12. 12
    PromotersThe promoters are Pankaj Gandhi, Alka Pankaj Gandhi and Sanyam Gandhi (DRHP p.24).p.24

    “The promoters are Pankaj Gandhi, Alka Pankaj Gandhi and Sanyam Gandhi (DRHP p.24).”

  13. 13
    PromotersThree regulatory proceedings involving ₹0.60 million are pending against the promoters, who are also directors (DRHP p.27).p.27

    “Three regulatory proceedings involving ₹0.60 million are pending against the promoters, who are also directors (DRHP p.27).”

  14. 14
    What changed just before the IPOContract work** — annuity revenue tripled in FY25 (DRHP p.121).p.121

    “Contract work** — annuity revenue tripled in FY25 (DRHP p.121).”

  15. 15
    What changed just before the IPOProfit** — first profit in the three years (DRHP p.27).p.27

    “Profit** — first profit in the three years (DRHP p.27).”

  16. 16
    What changed just before the IPOFleet** — more than doubled since FY23 (DRHP p.121).p.121

    “Fleet** — more than doubled since FY23 (DRHP p.121).”

  17. 17
    Capacity and expansionThe proceeds fund more electric buses (DRHP p.25).p.25

    “The proceeds fund more electric buses (DRHP p.25).”

  18. 18
    Market size and industry structureThe F&S report cited in the offer document projects India's bus population to grow from 2.40 million in FY2024 to 3.16 million by FY2030 and the mobility industry about 9.5% a year from FY2025 to FY2030 (DRHP p.24).p.24

    “The F&S report cited in the offer document projects India's bus population to grow from 2.40 million in FY2024 to 3.16 million by FY2030 and the mobility industry about 9.5% a year from FY2025 to FY2030 (DRHP p.24).”

  19. 19
    Competitive positionLower fuel share** — fuel fell from 45% to 31% of revenue over two years (DRHP p.121).p.121

    “Lower fuel share** — fuel fell from 45% to 31% of revenue over two years (DRHP p.121).”

  20. 20
    Peers the company namedThe document says no listed company in India or abroad has a directly comparable business model (DRHP p.120).p.120

    “The document says no listed company in India or abroad has a directly comparable business model (DRHP p.120).”

  21. 21
    Risks, in plain wordsOne customer.** 62% of FY25 revenue (DRHP p.210).p.210

    “One customer.** 62% of FY25 revenue (DRHP p.210).”

  22. 22
    Risks, in plain wordsTicket business.** Falling revenue (DRHP p.121).p.121

    “Ticket business.** Falling revenue (DRHP p.121).”

  23. 23
    Risks, in plain wordsDebt.** ₹5,180 million of borrowings (DRHP p.27).p.27

    “Debt.** ₹5,180 million of borrowings (DRHP p.27).”

  24. 24
    Risks, in plain wordsFuel.** Nearly a third of revenue (DRHP p.121).p.121

    “Fuel.** Nearly a third of revenue (DRHP p.121).”

  25. 25
    Risks, in plain wordsContracts.** Annuity work depends on state transport undertakings (DRHP p.121).p.121

    “Contracts.** Annuity work depends on state transport undertakings (DRHP p.121).”

Not on this page yet: the peer table the issuer printed. Each is added when the pipeline extracts it from the offer document.