Ekkaa Electronics (India) Limited IPO

01At a glance

What the company does: designs and manufactures consumer electronics and appliances for other brands, chiefly LED televisions, and also semi-automatic washing machines, air coolers, multimedia speakers, induction and infrared cooktops and smart displays (DRHP p.248, DRHP p.249).

Who pays it: more than 450 customers in 20 states, which are retail-facing brands, online platforms and other businesses that market the goods under their own names; the largest was 16.86% of FY26 revenue and the top ten 65.77% (DRHP p.28, DRHP p.250).

Why it is raising money: ₹2,250.00 million to repay borrowings and ₹1,500.00 million for working capital out of a ₹5,250.00 million fresh issue, with general corporate purposes left blank; a further ₹2,000.00 million is being sold by two promoters (DRHP p.124, DRHP p.125, DRHP p.1).

How fast it has grown: restated revenue went from ₹0.71 million in FY24 to ₹4,965.14 million in FY25 and ₹12,217.63 million in FY26, because the company only began manufacturing in FY25 and consolidated its subsidiary from August 2025; on the unaudited pro forma basis the same three years read ₹4,336.81 million, ₹7,093.37 million and ₹12,631.40 million (DRHP p.79, DRHP p.142).

The one thing to understand: the company has never produced cash from operations. Operating cash flow was minus ₹152.83 million in FY24, minus ₹641.12 million in FY25 and minus ₹286.59 million in FY26, against restated profit of ₹653.79 million in FY26 (DRHP p.80).

02The business, in plain words

A brand that wants to put its name on a television, a washing machine or an air cooler does not have to build a factory. It buys the product from a manufacturer that designs it, sources the components and assembles it. That is what this company does: original design manufacture, and original equipment manufacture where the customer brings the design (DRHP p.248).

A retail brand or online platform needs a product to market under its own name → it orders from Ekkaa → Ekkaa designs or customises it, buys open cells, compounds and components, assembles at Noida or Ganaur and packs it → Ekkaa keeps what is left after components, labour and interest.

The company was incorporated in March 2021 (DRHP p.100). Its plants run four surface mount technology lines at Noida, each able to make 250,000 products a month, with injection moulding for plastic cabinets and metal pressing for television frames above 32 inches brought in house (DRHP p.248, DRHP p.257). It says it delivers first samples in seven days and finished customised products in 15 to 35 days of an order (DRHP p.248).

It acquired Ekkaa Electronics Industries Private Limited on August 29, 2025, which is now its subsidiary and was previously its largest customer and its lender (DRHP p.143, DRHP p.83). Facilities carry ISO 9001, ISO 14001 and ISO 45001 accreditation (DRHP p.257).

Earnings equation: Profit = units shipped × (price − component and conversion cost) − employee cost − depreciation − interest. In FY26 cost of materials consumed was ₹10,417.22 million against revenue of ₹12,217.63 million, employee cost ₹148.21 million, depreciation ₹136.65 million and finance cost ₹278.76 million (DRHP p.79).

03Where the money comes from

Source: DRHP p.249.

Televisions were 71.78% of FY26 revenue (DRHP p.249). The company had over 450 customers at March 2026 across 20 states and union territories, and 55 of them, relationships of more than five years, were 28.92% of FY26 revenue (DRHP p.250).

Source: DRHP p.28. FY24 is left out because revenue that year was ₹0.71 million, all of it from one customer, the company that later became its subsidiary (DRHP p.28, DRHP p.83).

Two thirds of revenue still comes from ten customers. The prospectus does not name them.

04The growth record

Source: DRHP p.79, DRHP p.80, DRHP p.142. FY26 is consolidated; FY25 and FY24 are standalone (DRHP p.79).

The restated record is not a growth record in the ordinary sense: the company began manufacturing in FY25, so FY24 revenue of ₹0.71 million is a base from which any percentage is meaningless. The prospectus also presents unaudited pro forma consolidated information, which puts revenue at ₹4,336.81 million in FY24, ₹7,093.37 million in FY25 and ₹12,631.40 million in FY26, and profit at ₹20.51 million, ₹353.77 million and ₹706.94 million (DRHP p.142).

On that pro forma basis revenue rose about 70.7% a year and profit about 487.1% a year over the two years (our arithmetic, DRHP p.142). The prospectus carries a risk factor stating that the unaudited pro forma information is presented for illustrative purposes only and is not necessarily indicative of what the results would have been (DRHP p.38).

Net worth was ₹146.69 million, ₹382.21 million and ₹2,515.25 million; borrowings ₹1,696.75 million, ₹3,226.39 million and ₹3,087.54 million, and the prospectus gives total outstanding borrowings of ₹3,961.43 million at July 31, 2026; return on net worth was (27.61%), 61.62% and 25.99%; return on capital employed (0.65%), 12.93% and 18.00% (DRHP p.78, DRHP p.47, DRHP p.139, DRHP p.142).

05What the growth is made of

Capacity, a subsidiary and a new plant. Installed capacity went from 1,856,800 units in FY24 to 3,626,800 in FY25 and 5,199,300 in FY26, and aggregate utilisation in FY26 was 37.80% (DRHP p.142, DRHP p.257). The Ganaur facility was commissioned in January 2026, so its FY26 utilisation is measured against a full annualised capacity for a part year (DRHP p.31). Operations at the Sonipat facility were scaled down in November 2025 and consolidated with another facility (DRHP p.31).

The acquisition matters to the comparison. Ekkaa Electronics Industries Private Limited was acquired on August 29, 2025; the prospectus states that its full FY26 figures were revenue of ₹3,654.16 million, gross profit of ₹250.95 million and a loss after tax of ₹57.53 million, and that the post-acquisition portion cannot be separated out from the audited statements (DRHP p.143). Before that acquisition the same company was the buyer of ₹1,043.40 million of the company's FY25 sales, 21.01% of that year's revenue (DRHP p.83).

Product mix also moved: televisions went from ₹3,610.36 million to ₹8,769.80 million and washing machines from ₹373.98 million to ₹1,197.27 million, while air coolers and multimedia speakers started from nothing (DRHP p.249). The prospectus does not print units sold by product or realisation per unit, so the increase cannot be separated into volume and price.

06Earnings quality

The item that needs explaining is cash. Across FY24, FY25 and FY26 the company used ₹1,080.54 million in operating activities and ₹2,476.59 million in investing activities, and funded both from borrowings and share issues (our arithmetic, DRHP p.80). In FY26 alone, working capital absorbed ₹1,527.65 million, of which receivables took ₹972.55 million and inventories ₹388.97 million (our arithmetic, DRHP p.80). That is the reason ₹1,500.00 million of the fresh issue goes to working capital and ₹2,250.00 million to repaying debt (DRHP p.125).

A second item is the basis of comparison. FY26 is consolidated and includes a subsidiary acquired part way through the year; FY25 and FY24 are standalone and exclude it. The pro forma table is the only place where the three years are on one basis, and the prospectus flags it as illustrative (DRHP p.38, DRHP p.142).

07The balance sheet

At March 2026, non-current borrowings were ₹1,131.06 million and current borrowings ₹1,956.48 million, a total of ₹3,087.54 million against net worth of ₹2,515.25 million; the prospectus separately states total outstanding borrowings of ₹3,961.43 million at July 31, 2026 (DRHP p.78, DRHP p.47). Cash and cash equivalents were ₹23.40 million and other bank balances ₹104.31 million (DRHP p.78). Trade payables were ₹1,965.84 million, of which ₹279.59 million was owed to micro and small enterprises (DRHP p.78).

Lease liabilities were ₹120.88 million and right-of-use assets ₹446.17 million (DRHP p.78). Property, plant and equipment was ₹2,394.46 million with ₹17.54 million of capital work in progress (DRHP p.78). There are no contingent liabilities (DRHP p.82).

After the issue: the fresh issue of ₹5,250.00 million before expenses is about twice the March 2026 net worth of ₹2,515.25 million, and ₹2,250.00 million of it repays borrowings, which on the July 31, 2026 figure of ₹3,961.43 million would leave about ₹1,711.43 million (our arithmetic, DRHP p.78, DRHP p.125, DRHP p.47).

08What the money is for

Source: DRHP p.125.

The borrowings to be repaid include a ₹405.00 million Axis Bank term loan for the Ganaur plant at 8.25%, a ₹650.00 million Bajaj Finance term loan at 9.35% for land acquisition and general corporate purposes, and a ₹200.00 million HDFC Bank term loan at 7.25% for the Noida plant, with prepayment penalties of up to 4% on some of them (DRHP p.127). General corporate purposes are capped at 25% of gross proceeds (DRHP p.125). The company may undertake a pre-IPO placement of up to 20% of the fresh issue before the red herring prospectus is filed, which would reduce the fresh issue by that amount (DRHP p.124).

Into the business ₹5,250.00 million, the fresh issue (DRHP p.124). To selling shareholders ₹2,000.00 million, the offer for sale, 27.6% of the ₹7,250.00 million offer (our arithmetic, DRHP p.1).

09Who is selling

Source: DRHP p.1, certified on September 24, 2026. Both sellers are promoters; no investor is selling. Chandra Prakash Gupta holds 8,496,736 shares, 10.09% of the fully diluted capital before the offer, and Madhuri Gupta 9,230,904 shares, 10.96% (DRHP p.110). At the draft stage the number of shares each seller will offer is not fixed, only the rupee amount.

10Promoters

The promoters are Sagar Gupta, Chandra Prakash Gupta and Madhuri Gupta, who subscribed the memorandum in March 2021 with 2,500,000, 750,000 and 750,000 shares of ₹10 each at par (DRHP p.98). They hold 40.75%, 10.09% and 10.96% of the fully diluted capital, 61.80% together, and with the promoter group, which includes three family trusts and seven relatives, 80.00% (our arithmetic, DRHP p.110).

Promoter economics: after the March 2021 subscription at ₹10, the holdings were built through a 1-for-1 bonus on August 28, 2025, a private placement of 447,725 shares at ₹888 on August 30, 2025 to Chandra Prakash Gupta and Madhuri Gupta under the share purchase agreement for the subsidiary, a split of the ₹10 share into two ₹5 shares in August 2026 and a 3-for-1 bonus on August 20, 2026 (DRHP p.98, DRHP p.99).

The selling shareholders' weighted average cost is ₹19.87 and ₹17.53 a share (DRHP p.1). Remuneration in FY26 was ₹8.75 million to Sagar Gupta, ₹10.50 million to Chandra Prakash Gupta and ₹2.80 million to Madhuri Gupta, and nothing in FY25 or FY24 (DRHP p.83). No promoter shares are pledged (DRHP p.109). The promoters have given personal guarantees for certain borrowings (DRHP p.53).

Regulatory matters involving a promoter: the Commissioner of Customs passed an order dated March 30, 2024 against Chandra Prakash Gupta, described in the prospectus as the proprietor of M/s Sagar Electronics and sixteen other alleged fictitious or dummy firms, confirming a differential customs duty demand of ₹163.97 million with interest, ordering confiscation with a redemption option and imposing penalties, on show cause notices of 2005 and 2006 alleging under-valuation of imported electronic components; a writ petition dated June 3, 2024 is pending before the Bombay High Court (DRHP p.441).

11Who already owns it

The company had 81 shareholders at the date of the draft (DRHP p.115). On a fully diluted basis the three promoters hold 61.80% and the promoter group 80.00% (DRHP p.110). The largest outside holder is Abakkus Four2eight Opportunities Fund with 684,463 Series B compulsorily convertible preference shares, 6.50% on conversion; Mukul Mahavir Agrawal holds 2.70%, Kaushik Daga 1.77% and Gaurav Agrawal 1.12%, all through Series A preference shares (DRHP p.115). All 1,097 Series A and 684,463 Series B preference shares convert into a maximum of 15,655,864 equity shares before the red herring prospectus is filed (DRHP p.75).

Prices paid recently are in the document: Series A preference shares were placed in September 2025 at an estimated ₹105.25 per resulting equity share, and in September 2026 Chandra Prakash Gupta transferred shares to four parties at ₹226 each (DRHP p.100, DRHP p.109). Equity shares outstanding before the offer, before conversion, are 68,541,800 of ₹5 each (DRHP p.99).

12What changed just before the IPO

• The subsidiary Ekkaa Electronics Industries Private Limited, previously the company's largest customer and a lender to it, was acquired on August 29, 2025 (DRHP p.143, DRHP p.83).
• A bonus of one share for every one held, 4,060,000 shares, was allotted on August 28, 2025 (DRHP p.98).
• 447,725 shares were allotted at ₹888 on August 30, 2025 to Chandra Prakash Gupta and Madhuri Gupta for consideration other than cash, on a valuation report dated August 28, 2025 (DRHP p.99, DRHP p.100).
• Series A preference shares were placed in September 2025, equivalent to ₹105.25 an equity share on conversion, and Series B preference shares were taken by Abakkus Four2eight Opportunities Fund (DRHP p.100, DRHP p.115).
• The ₹10 share was split into two ₹5 shares in August 2026, followed on August 20, 2026 by a bonus of three shares for every one held, 51,406,350 shares (DRHP p.99).
• The Ganaur facility was commissioned in January 2026, and operations at Sonipat were scaled down in November 2025 (DRHP p.31).
• Promoter remuneration began in FY26 at ₹22.05 million in total, against none in FY25 and FY24 (our arithmetic, DRHP p.83).
• Shares were transferred at ₹226 each in September 2026, days before the draft was filed (DRHP p.109).

13Capacity and expansion

Aggregate installed capacity was 1,856,800 units in FY24, 3,626,800 in FY25 and 5,199,300 units a year at March 2026, with aggregate capacity utilisation of 37.80% in FY26 (DRHP p.142, DRHP p.257). Capacity is stated on a full-year annualised basis whatever part of the year a line actually ran, so the Ganaur facility commissioned in January 2026 depresses the FY26 figure (DRHP p.31). The four surface mount technology lines at Noida can each make 250,000 products a month (DRHP p.248).

Nothing in this offer is for capacity: the two stated objects are debt repayment and working capital (DRHP p.125). The prospectus does describe plans beyond the offer, including fully automatic top-load washing machines, mini-LED televisions, and an intent filed with the Government of Uttar Pradesh for a greenfield refrigerator facility at YEIDA, Gautam Buddha Nagar (DRHP p.258). It does not price those plans or say how they would be funded.

14Market size and industry structure

As claimed: the industry chapter is the report "Industry Report On Consumer Electronics ODM, ESDM, And Appliance Manufacturing" dated September 22, 2026, prepared by Frost and Sullivan (India) Private Limited for the issuer (DRHP p.247). It puts India's consumer durables original design manufacturing market at about ₹249.00 billion in FY26, growing at about 16.90% a year from FY21, and projects about ₹513.80 billion by FY30; LED televisions alone were ₹469.00 billion in FY25 (DRHP p.250).

The part that is addressable: outsourced manufacture of televisions, washing machines, coolers, speakers and cooktops for Indian brands and platforms (DRHP p.249).

What the company is today: ₹12,217.63 million of FY26 revenue, and the commissioned report gives it about 5.50% of India's LED television market by volume in FY26 (DRHP p.79, DRHP p.250). Against the ₹249.00 billion ODM figure from the same report, FY26 revenue is about 4.9% (our arithmetic, DRHP p.250).

The prospectus carries a risk factor noting that it discloses information from a commissioned industry report (DRHP p.54).

15Competitive position

Source: DRHP p.139, DRHP p.140. The company is the smallest of the four by a wide margin: Dixon is about 40 times its revenue, Amber about 10 times and PG Electroplast about 4 times (our arithmetic, DRHP p.140). What it offers against them, on its own account, is lines that are fungible across product verticals, backward integration into plastic cabinets and metal pressing, four surface mount technology lines, and sample delivery in seven days (DRHP p.248). Its stated dependence runs the other way too: one supplier was 46.94% of the cost of raw materials purchased in FY26 and the top ten 79.11% (DRHP p.34).

16Peers the company named

Peers named in the offer document: Dixon Technologies (India) Limited, Amber Enterprises India Limited and PG Electroplast Limited (DRHP p.139).

Source: DRHP p.139, DRHP p.140; prices are BSE closing prices of September 22, 2026. The prospectus prints the peer group P/E as a highest of 139.50, a lowest of 48.60 and an average of 103.20 (DRHP p.139). All three peers are several times the company's size and all three are listed electronics manufacturers with broader customer bases; no price band exists yet, so no comparison of this issue against those multiples can be made at this stage.

17Risks, in plain words

Cash from operations: operating cash flow was negative in all three years, minus ₹152.83 million, minus ₹641.12 million and minus ₹286.59 million (DRHP p.80) → growth has been funded by debt and equity, not by the business → total borrowings were ₹3,961.43 million at July 31, 2026 (DRHP p.47).

Customers: the top ten were 65.77% of FY26 revenue and the largest 16.86% (DRHP p.28) → a small number of brands decide the order book → the prospectus does not disclose long-term volume commitments from any of them.

Suppliers: one supplier was 46.94% of the cost of raw materials purchased in FY26 and the top ten 79.11% (DRHP p.34) → a single source sits behind nearly half the input cost → the prospectus also flags restrictions on importing raw materials from certain countries (DRHP p.46).

One product: LED televisions were 71.78% of FY26 revenue (DRHP p.249) → the business moves with one category and its technology cycle → the prospectus flags rapidly evolving consumer preferences as a risk (DRHP p.32).

Utilisation: aggregate capacity was 5,199,300 units at March 2026 and utilisation 37.80% (DRHP p.257) → most of the plant is idle, and it carries depreciation and interest → depreciation was ₹136.65 million and finance cost ₹278.76 million in FY26 (DRHP p.79).

Comparability: FY26 is consolidated and FY25 and FY24 are standalone, and the only three-year comparison on one basis is unaudited pro forma information that the prospectus itself calls illustrative (DRHP p.38, DRHP p.79, DRHP p.142) → year-on-year growth rates mix a company that has changed shape → the subsidiary acquired in August 2025 had a loss after tax of ₹57.53 million for the full FY26 (DRHP p.143).

A promoter and the customs authorities: an order of March 30, 2024 confirmed a differential customs duty demand of ₹163.97 million with interest and penalties against Chandra Prakash Gupta, and a writ petition is pending before the Bombay High Court (DRHP p.441) → that promoter is also one of the two selling shareholders → the amount is more than a quarter of FY26 profit before tax of ₹796.30 million (our arithmetic, DRHP p.79).

Statutory dues and people: the prospectus discloses delays in payment of statutory dues in FY26 and FY25, and an attrition rate of 25.77% in FY26 and 27.85% in FY25 (DRHP p.41, DRHP p.48) → penalties and turnover both cost money → a former employee has an order of ₹93,433 against the company, which it has applied to set aside (DRHP p.439).

Geography: the manufacturing facilities are concentrated in Haryana and Uttar Pradesh (DRHP p.42) → a local disruption reaches all of production → the registered office, the Noida facility and other premises are leased (DRHP p.43).

Issue-specific: ₹2,000.00 million of the ₹7,250.00 million offer, 27.6%, goes to two promoters rather than into the company (our arithmetic, DRHP p.1); a pre-IPO placement of up to 20% of the fresh issue may be made before the red herring prospectus, reducing the fresh issue (DRHP p.124); and the offer is being made under Regulation 6(2) of the SEBI ICDR Regulations because the company does not meet the profitability test in Regulation 6(1)(b) (DRHP p.1).

18Litigation and regulatory matters

There are no criminal proceedings against the company, its subsidiary or its directors, no material civil proceedings, and no indirect tax matters involving the company (DRHP p.439, DRHP p.440, DRHP p.441). The customs amount is demanded by the authority and disputed by the promoter, not paid.

19Related-party transactions

Source: DRHP p.83, DRHP p.84. Ekkaa Electronics Industries Private Limited was a related party throughout and became the company's subsidiary on August 29, 2025 (DRHP p.143). Other related-party dealings in FY26, excluding that subsidiary and excluding loan movements, come to ₹79.87 million: ₹23.82 million of remuneration, ₹44.87 million of shares issued to promoters and a relative, ₹6.63 million of rent to Gaurisuta Enterprises Private Limited and Gaurisuta Industries LLP, and a ₹4.55 million advance (our arithmetic, DRHP p.83, DRHP p.84).

20What the offer document does not say

Units sold and realisation per unit by product are not disclosed, so the revenue increase cannot be separated into volume and price. The names of the top ten customers, which are 65.77% of revenue, are not given. The identity of the supplier that is 46.94% of raw material cost is not given. Capacity utilisation by facility and by product for a full year of operation at Ganaur is not stated.

The cost of the proposed refrigerator facility at YEIDA, and how it would be funded, is not stated. The price band, the number of shares each promoter will offer, the issue expenses and the amount for general corporate purposes are all left blank at this stage.

21Five questions for management

1. How many units of each product category were shipped in FY25 and FY26, and at what realisation per unit?
2. Why was operating cash flow negative in each of the three years shown, and what receivable and inventory days does the company expect once the ₹1,500.00 million of working capital is deployed?
3. On what valuation was Ekkaa Electronics Industries Private Limited acquired in August 2025, and why did it record a loss after tax of ₹57.53 million for FY26?
4. Which supplier accounts for 46.94% of raw material cost, what does it supply, and what alternatives are qualified?
5. What is the company's exposure, if any, to the ₹163.97 million customs demand against Chandra Prakash Gupta, and what would a final adverse order mean for the promoter's holding?

1Sources and cited facts

This study was read from 1 document the company filed. The 106 figures it cites are listed under the document each came from, with the page and the sentence as printed.