Electromech Infraprojects Limited IPO

01At a glance

What the company does: mechanical, electrical and plumbing works for mission-critical buildings, mostly data centres, covering high and low voltage electrical work, mechanical work, fire protection and allied civil and interior fit-out, from design through testing and commissioning (DRHP p.244).

Who pays it: global hyperscale and colocation data centre operators, multinational companies building global capability centres, and domestic industrial companies. The largest client was 31.46% of FY26 revenue and the top five 75.03%; no client is named, because consent was not received (DRHP p.32, DRHP p.33).

Why it is raising money: ₹10,000.00 lakh for working capital, ₹7,647.93 lakh to raise its stake in subsidiary Jika EPC Services Limited from 34.78% to 60%, ₹3,000.00 lakh into Electromech Global Holdings Ltd, ₹2,415.69 lakh into Sinerco Power Systems Private Limited, and an unquantified amount for general corporate purposes (DRHP p.131).

How fast it has grown: revenue from ₹26,194.72 lakh in FY24 to ₹42,705.23 lakh in FY26, about 27.7% a year, and profit after tax from ₹1,843.10 lakh to ₹3,619.06 lakh, about 40.1% a year (our arithmetic, DRHP p.82, DRHP p.157).

The one thing to understand: the order book is the story and it is one sector deep. It went from ₹26,465 lakh at March 2025 to ₹82,972 lakh at March 2026, and 87.92% of it is data centre work (DRHP p.157, DRHP p.244).

02The business, in plain words

A data centre is mostly power, cooling, water and fire protection. Someone has to design those systems to the operator's standards, procure the switchgear, cable, chillers and pumps, install them on site, test them and hand over a facility that will not go down. That is the work this company does, either as one subcontractor among several or as the single turnkey MEP contractor.

A hyperscale operator awards an MEP package → the company designs and estimates, buys equipment and materials, and executes on site with its own engineers and contract labour → it tests and commissions the systems → it is paid against project milestones, and sometimes stays on for operations and maintenance.

The company was incorporated in November 2013 as Electromech Infraprojects Private Limited and converted into a public limited company in January 2025 (DRHP p.284). It has completed over 500 projects since incorporation, and states that over FY22 to FY26 it provided MEP services for nearly 135 MW of new Indian data centre capacity, which it puts at 13% to 15% of the capacity added in that period on the commissioned Crisil report's figures (DRHP p.244).

It had 511 full-time employees at July 31, 2026, of whom 266 are in projects and execution and 100 in health, safety and quality, and engages contract labour at sites (DRHP p.271). It holds ISO 9001, ISO 14001 and ISO 45001 accreditations (DRHP p.244).

Earnings equation: Profit ≈ project value executed − materials and bought-out equipment − site labour and staff cost − overheads − interest on the money tied up in receivables. In FY26 cost of materials consumed of ₹33,966.64 lakh was 79.54% of revenue and employee cost ₹2,898.88 lakh, 6.79% (our arithmetic, DRHP p.82).

03Where the money comes from

Source: DRHP p.244. FY24 and FY25 are standalone and FY26 is consolidated, because the subsidiaries came in during FY26 (DRHP p.82).

Client concentration is the defining number:

Source: DRHP p.32. Concentration has risen at every level over three years. The clients are not named, because consent was not received from them (DRHP p.33). Against that, revenue from repeat clients rose from 87% of revenue in FY24 to 95% in FY26 (DRHP p.244). Purchases are less concentrated: the top five suppliers were ₹4,845.56 lakh, ₹6,610.56 lakh and ₹7,507.23 lakh of raw material cost across FY24 to FY26, 21.79%, 19.27% and 22.09%, and the top ten 34.91%, 31.50% and 32.02% (DRHP p.34).

04The growth record

Source: DRHP p.82, DRHP p.84, DRHP p.157. Return on equity was 45.70%, 42.24% and 24.34%, and return on capital employed 40.01%, 48.80% and 32.85%; net debt was ₹684.56 lakh in FY24 and net cash of ₹1,636.95 lakh and ₹7,903.63 lakh in FY25 and FY26 (DRHP p.157). Earnings a share were ₹6.58, ₹10.53 and ₹11.90, adjusted for the bonus issue and the two share splits (DRHP p.83, DRHP p.155).

Our arithmetic over FY24 to FY26: revenue grew about 27.7% a year, EBITDA about 51.8% and profit about 40.1%; EBITDA margin rose 316 basis points and PAT margin 144 basis points (DRHP p.82, DRHP p.157). Two things sit under the table. First, almost all of the revenue growth came in FY25: revenue rose 55.95% that year and only 4.54% in FY26 (our arithmetic, DRHP p.82). Second, the returns fell as the equity base rose, because ₹7,891.06 lakh of new equity came in during FY26 from private placements at ₹264, ₹222.60 and ₹223 a share (our arithmetic, DRHP p.80, DRHP p.108, DRHP p.109).

05What the growth is made of

Data centre work, and then a step change in the order book rather than in revenue. Data centre revenue rose from ₹11,626 lakh in FY24 to ₹23,985 lakh in FY25 and ₹25,655 lakh in FY26, taking its share from 44% to 60%; global capability centre revenue rose from ₹13,461 lakh to ₹16,751 lakh and then fell slightly to ₹16,373 lakh (DRHP p.244). So the FY25 jump was data centres coming through, and FY26 was flat on both.

What changed in FY26 was what has been won rather than what has been billed. The closing order book went from ₹31,260 lakh at March 2024 to ₹26,465 lakh at March 2025 and ₹82,972 lakh at March 2026, and 87.92% of the March 2026 book is data centre work (DRHP p.157, DRHP p.244). Completed projects were 16, 33 and 33 across the three years (DRHP p.157).

The company gives no volume measure of its own output in MEP terms beyond the 135 MW of data centre capacity it says it served across five years and the 5.60 million square feet of global capability centre and commercial space (DRHP p.244). Read from the filing: the revenue split cannot be separated into price and volume from what is disclosed, and the order book, not the revenue line, is where the FY26 change shows.

06Earnings quality

Two lines need explaining. First, the gap between profit and cash: over three years the company earned ₹8,410.40 lakh and collected ₹2,727.70 lakh of operating cash, because receivables rose ₹7,978.03 lakh over the same period; trade payables rose too, which is what kept FY25 and FY26 in the black on cash (DRHP p.80, DRHP p.84). Second, half the trade payables are owed to micro and small enterprises, ₹6,918.74 lakh at March 2026 against ₹2,987.77 lakh to others, which is the other side of the same working-capital position (DRHP p.81).

07The balance sheet

At March 31, 2026 total assets were ₹26,982.98 lakh: trade receivables ₹16,982.72 lakh, investments ₹4,343.43 lakh, cash and cash equivalents ₹1,885.67 lakh and other bank balances ₹1,724.32 lakh, other current assets ₹652.93 lakh, other financial assets ₹681.49 lakh, right-of-use assets ₹503.47 lakh, inventories ₹105.90 lakh and property plant and equipment ₹65.38 lakh (DRHP p.80). Against that, trade payables were ₹9,906.51 lakh, borrowings ₹49.79 lakh, lease liabilities ₹533.58 lakh, provisions ₹366.93 lakh and other liabilities ₹1,254.67 lakh, leaving total equity of ₹14,871.50 lakh (DRHP p.80, DRHP p.81).

The company reports net cash of ₹7,903.63 lakh at March 2026, against net cash of ₹1,636.95 lakh a year earlier and net debt of ₹684.56 lakh in FY24 (DRHP p.157). Contingent liabilities are ₹194.65 lakh: ₹149.20 lakh disputed with the service tax authority, ₹31.43 lakh disputed with Choudhary Scaffolding, ₹10.90 lakh with Arraystrom and ₹3.12 lakh of TDS matters (our arithmetic, DRHP p.91).

After the offer: a fresh issue of ₹32,600 lakh against equity of ₹14,871.50 lakh at March 2026 would nearly triple the equity base; ₹10,000.00 lakh of it funds working capital and ₹13,063.62 lakh goes into three subsidiaries (our arithmetic, DRHP p.80, DRHP p.131).

08What the money is for

Source: DRHP p.131, DRHP p.132. The Jika object is a mix of subscription to fresh shares and secondary purchase of shares, and the Sinerco object funds that subsidiary's working capital and capital expenditure (DRHP p.131). The fund requirement has not been appraised by any bank, financial institution or independent agency (DRHP p.132). The company may also do a pre-IPO placement of up to 20% of the fresh issue before filing the red herring prospectus, which would reduce the fresh issue by the same amount (DRHP p.130).

Into the business ₹32,600 lakh: the fresh issue (DRHP p.105). To selling shareholders the proceeds of up to 18,91,000 shares, which cannot be priced at draft stage: Paresh Pratap Maniar up to 8,93,000 shares, AIG Direct LLC up to 5,25,000, Varun Paresh Maniar up to 3,28,000, Mitesh Pratap Maniar up to 1,00,000 and Chandrika Paresh Maniar up to 45,000 (DRHP p.77).

09Who is selling

Source: DRHP p.77, DRHP p.123. The last column is our arithmetic. The four promoters together are offering 13,66,000 shares of the 2,32,48,368 they hold, 5.88% of their holding; AIG Direct LLC is offering a fifth of its stake (our arithmetic, DRHP p.77, DRHP p.123). AIG Direct LLC's stated average cost of acquisition is ₹89.23 a share (DRHP p.126).

10Promoters

The promoters are Paresh Pratap Maniar, aged 65, Chairman and Whole Time Director; Varun Paresh Maniar, aged 40, Managing Director; Mitesh Pratap Maniar, aged 63; and Chandrika Paresh Maniar, aged 68, Non-Executive Director (DRHP p.316, DRHP p.317). The promoter group table records Varun Paresh Maniar as the son of Paresh Pratap Maniar and Mitesh Pratap Maniar as the spouse's brother of Chandrika Paresh Maniar (DRHP p.320). Together they hold 2,32,48,368 shares, 63.47% of the capital (DRHP p.316). All four were identified as promoters by a board resolution of December 23, 2025, and there has been no change of control in the five years before the filing (DRHP p.317).

Promoter economics: the stated average cost of acquisition is negative ₹11.25 a share for Paresh Pratap Maniar, negative ₹151.64 for Chandrika Paresh Maniar, ₹1.37 for Varun Paresh Maniar and nil for Mitesh Pratap Maniar, the negatives arising because shares were sold at ₹40,000 apiece before the splits and the bonus (DRHP p.119, DRHP p.126).

The holdings were built from a 1,000-share subscription in 2013 and a ₹100-a-share rights issue in 2015, then transformed by a sub-division from ₹100 to ₹10 in January 2025, a bonus issue of 27 shares for one in February 2025, and a second sub-division from ₹10 to ₹5 in December 2025 (DRHP p.106, DRHP p.108). None of the promoters acquired any share in the last year (DRHP p.126).

Remuneration to the promoters was ₹322.69 lakh in FY24, ₹363.51 lakh in FY25 and ₹205.44 lakh in FY26, so it fell as profits rose (our arithmetic, DRHP p.92). Promoter-group entities include C P Powertechnic Private Limited, Cell Energy (India) Private Limited and the firm Computechnics, which both sells to and buys from the company (DRHP p.92, DRHP p.320).

The prospectus records no criminal or civil litigation and no regulatory action against the promoters, and one direct-tax matter of ₹0.79 lakh (DRHP p.424, DRHP p.426). It also records that Paresh Pratap Maniar and Chandrika Paresh Maniar were promoters and directors of Capstone Habitats Developers Private Limited, and Varun Maniyar of Stunnery Beauty Labs Private Limited, both voluntarily struck off (DRHP p.430).

11Who already owns it

Source: DRHP p.123. The company had 78 shareholders at the date of the filing, four of them promoters (DRHP p.125). Two years earlier there were two: Paresh Pratap Maniar with 60% and Harshad N. Kapadia with 40% (DRHP p.124).

The rest of the register was built in eighteen months through six private placements and one preferential allotment: at ₹264 a share on ₹10 face value in June and August 2025, and at ₹222.60 and ₹223 on ₹5 face value in May, June and August 2026 (DRHP p.107, DRHP p.108, DRHP p.109, DRHP p.110).

The weighted average cost of all shares transacted was ₹47.50 over three years, ₹116.51 over eighteen months and ₹111.40 over one year (DRHP p.126). There are no outstanding options, warrants or convertibles (DRHP p.430).

12What changed just before the IPO

• The share was split twice and multiplied once. From ₹100 to ₹10 in January 2025, a 27 for 1 bonus in February 2025, and from ₹10 to ₹5 in December 2025, taking 50,000 shares to 3,14,46,974 before any new money (DRHP p.106, DRHP p.108).
• The company became a public company in January 2025, with the fresh certificate of incorporation issued in October 2025 (DRHP p.284).
• Six private placements and a preferential allotment between June 2025 and August 2026 brought in about 55 new shareholders at ₹264, ₹222.60 and ₹223 a share (DRHP p.107, DRHP p.108, DRHP p.109, DRHP p.110).
• The statutory auditor changed. Patwardhan & Jamenis resigned on December 19, 2024 and Hasmukh Shah & Co. LLP was appointed on January 15, 2025 to fill the casual vacancy (DRHP p.101).
• The order book trebled, from ₹26,465 lakh at March 2025 to ₹82,972 lakh at March 2026 (DRHP p.157).
• Subsidiaries appeared. FY26 is the first consolidated year, with goodwill of ₹14.03 lakh, a non-controlling interest of ₹20.68 lakh and three subsidiaries that the offer proceeds will fund further (DRHP p.80, DRHP p.131).
• Client concentration rose. The top ten went from 79.25% of revenue in FY24 to 90.13% in FY26 (DRHP p.32).
• Receivables outgrew revenue, from ₹9,004.69 lakh at March 2024 to ₹16,982.72 lakh at March 2026 while revenue rose 63% (DRHP p.80).
• Promoter remuneration was cut, from ₹363.51 lakh in FY25 to ₹205.44 lakh in FY26 (our arithmetic, DRHP p.92).
• The board approved the offer on August 5, 2026, with shareholder approval on August 12, 2026 and the selling shareholders' consents dated September 10, 2026 (DRHP p.429).

13Capacity and expansion

Nothing is manufactured at scale by the parent; capacity is engineers, site teams, prequalification and the balance sheet that lets the company bid for larger packages.

Source: DRHP p.157, DRHP p.271. The company describes backward integration into manufacturing digital infrastructure equipment as one of its strengths, which is what the Sinerco Power Systems investment supports (DRHP p.154, DRHP p.131). The ₹10,000.00 lakh of working capital is the capacity item that matters for a contractor: it is what funds the receivables and the bought-out equipment on a larger book. The prospectus does not state how much order book the new capital is expected to support, or the company's MEP capacity in megawatts a year.

14Market size and industry structure

As claimed: the Crisil report titled "Assessment of MEP segment within construction industry in India with focus on data centre" dated September 11, 2026, commissioned and paid for by the company, records installed Indian data centre capacity as having more than trebled since FY19 to 1,550 to 1,650 MW by FY26, and projects 4,800 to 5,200 MW by FY30. It puts MEP at about 70% to 75% of total data centre construction expenditure, against 25% to 30% for land and building, and records 910 to 1,010 MW of capacity added over FY22 to FY26 (DRHP p.244, DRHP p.245).

The part that is addressable: MEP packages on Indian data centres, global capability centres and commercial and industrial buildings that require international execution standards. The company names Mumbai as the primary hub, with Chennai, Hyderabad, Delhi NCR, Pune and Kolkata emerging (DRHP p.245).

What the company is today: ₹42,705.23 lakh of FY26 revenue and an ₹82,972 lakh order book, having served nearly 135 MW of the 910 to 1,010 MW added over FY22 to FY26, which the company puts at 13% to 15% of new capacity (DRHP p.157, DRHP p.244).

On structure, the company's stated barrier is client qualification: its clients are multinational operators who require execution to international standards of quality and safety, which it says creates high entry barriers (DRHP p.154). The next phase of demand, on the commissioned report's account, is AI workloads needing higher-density facilities with enhanced power delivery and advanced cooling (DRHP p.245).

15Competitive position

Source: DRHP p.156. The four named peers are between 3.3 and 33.6 times the company's size by total income (our arithmetic, DRHP p.156).

What the company offers in place of scale, on its own account: a track record of over 500 projects and 135 MW of data centre capacity served, multi-disciplinary scope across electrical, mechanical, fire protection and fit-out, a safety record and ISO accreditations, 95% repeat business, and backward integration into equipment manufacturing (DRHP p.154, DRHP p.244). Against that, the work is won client by client, the top ten clients are 90.13% of revenue, the clients cannot be named, and the company has 511 employees against peers many times its size (DRHP p.32, DRHP p.271).

16Peers the company named

Peers named in the offer document: Blue Star, Voltas, Dynacons Systems and Solutions and Black Box (DRHP p.156).

The company states plainly that no listed Indian company is directly comparable to it in business operations and products, and that these four differ in business mix, product and service offerings, operating profile, scale and customer base, so any comparison should be regarded as indicative only (DRHP p.158).

That caveat is worth taking at face value: Blue Star and Voltas are air-conditioning and engineering groups selling largely to consumers and projects, Black Box is a global network infrastructure services company, and Dynacons is an IT infrastructure integrator. At BSE closing prices of September 18, 2026 they traded at 60.79, 99.56, 62.69 and 15.21 times FY26 basic earnings, an average of 59.56 and a median of 61.74 (DRHP p.155, DRHP p.156).

Return on net worth was 15.36%, 5.78%, 16.91% and 26.90% against the company's 24.34% (DRHP p.156). No price band exists yet, so where this issue would sit in that spread cannot be stated.

17Risks, in plain words

Clients, and a very few of them: the top ten clients were 90.13% of FY26 revenue and the largest 31.46% (DRHP p.32) → the loss of one relationship removes a large block of revenue at once → concentration has risen at every level since FY24 (DRHP p.32).

One sector, and a capital-expenditure cycle: data centres were 60% of FY26 revenue and 87.92% of the March 2026 order book (DRHP p.244) → a slowdown in hyperscale or colocation capital spending would hit both the revenue and the book → global capability centre revenue, the second leg, was already flat in FY26 (DRHP p.244).

Getting paid: receivables rose from ₹9,004.69 lakh to ₹16,982.72 lakh across FY24 to FY26, 145 days of revenue (our arithmetic, DRHP p.80) → a contractor funds the client's project until the milestone is certified → three years of profit produced ₹2,727.70 lakh of operating cash against ₹8,410.40 lakh of profit (our arithmetic, DRHP p.82, DRHP p.84).

Suppliers: the top five suppliers were 22.09% of FY26 raw material cost, and bought-out materials were 79.54% of revenue (our arithmetic, DRHP p.34, DRHP p.82) → price moves in cable, switchgear and chillers land in the margin on fixed-price packages → the prospectus does not say what share of contracts carries a price-variation clause.

Indirect tax: 12 indirect-tax cases of ₹2,475.36 lakh are pending against the company, against FY26 profit before tax of ₹4,801.55 lakh (DRHP p.82, DRHP p.426) → the amount is over half a year's pre-tax profit → the company also carries ₹149.20 lakh of disputed service tax as a contingent liability (DRHP p.91).

Dues to small suppliers: ₹6,918.74 lakh of the ₹9,906.51 lakh of trade payables at March 2026 is owed to micro and small enterprises (DRHP p.81) → those dues carry statutory interest if paid late → the figure has more than doubled since March 2024 (DRHP p.81).

A short public history: the company became a public company in January 2025, its auditor changed in the same month, and its shareholder register went from two holders to 78 in under two years (DRHP p.101, DRHP p.124, DRHP p.284).

Offer-specific: ₹13,063.62 lakh of the proceeds goes into three subsidiaries rather than the company, the fund requirement has not been appraised, and the general corporate purposes amount is left blank (DRHP p.131, DRHP p.132).

18Litigation and regulatory matters

There are no criminal proceedings against or by the company, its subsidiaries, the promoters, the directors, the key managerial personnel or the senior management; no civil litigation against the company; and no action by any statutory or regulatory authority against any of them (DRHP p.423, DRHP p.424, DRHP p.425, DRHP p.426). There has been no SEBI or other regulatory inspection of the company (DRHP p.430). TDS matters of ₹3.12 lakh are outstanding with the TDS Traces department for financial years running from 2013-14 to 2025-26 (DRHP p.91).

19Related-party transactions

Source: DRHP p.92, DRHP p.93.

Total related-party transactions were about ₹5.22 crore in FY26, ₹8.75 crore in FY25 and ₹8.11 crore in FY24, on revenue of ₹427.05 crore, ₹408.51 crore and ₹261.95 crore, so under 2% of revenue in every year (our arithmetic, DRHP p.92).

The pattern is a family business being professionalised: remuneration to the four promoters fell from ₹363.51 lakh in FY25 to ₹205.44 lakh in FY26, salaries to relatives Jaimini Maniar and Mona Maniar stopped in FY26, and salaries to two non-family employees, Jyoti Kumari and Souvik Samaddar, and expenses for two independent directors, Rakesh Janardhan Raval and Pravin Devchand Thakkar, appear for the first time (DRHP p.92, DRHP p.93).

Sinerco Power Systems Private Limited, from which the company bought ₹87.82 lakh of goods in FY26, is now a subsidiary and is to receive ₹2,415.69 lakh of the offer proceeds (DRHP p.92, DRHP p.131). A ₹50.00 lakh loan from Paresh Pratap Maniar was repaid in FY25 (DRHP p.92).

20What the offer document does not say

No client is named, because consent was not received, so the 31.46% relationship cannot be identified or assessed. The order book is not split into how much is expected to convert in FY27 against later years. Contract terms, including whether prices vary with input costs and how retention money is held, are not set out on the pages read.

Margins by segment are not disclosed, so data centre work cannot be compared with global capability centre work. The company's MEP capacity, in megawatts a year or in crews, is not stated. The subsidiaries' own revenue and profit are not broken out, although three of them are to receive ₹13,063.62 lakh of the proceeds. The valuation of the secondary purchase of Jika EPC Services Limited shares is not explained in the object table.

The general corporate purposes amount and the offer expenses are left blank, and there is no price band.

21Five questions for management

1. Who is the client that was 31.46% of FY26 revenue, on what contract terms, and how much of the ₹82,972 lakh order book is that same client?
2. How much of the March 2026 order book is scheduled for execution in FY27, and how much in FY28 and later?
3. What is the gross margin on data centre work against global capability centre work, and why did revenue in both stay flat in FY26 while the order book trebled?
4. What are the 12 indirect-tax cases of ₹2,475.36 lakh, and what is the company's own assessment of the exposure?
5. What is Jika EPC Services Limited worth, and how was the ₹7,647.93 lakh for going from 34.78% to 60% arrived at?

1Sources and cited facts

This study was read from 1 document the company filed. The 92 figures it cites are listed under the document each came from, with the page and the sentence as printed.