Gujarat Victory Forgings Limited IPO

01At a glance

What the company does: processes and refines non-ferrous metal scrap, mainly copper, into copper cathodes of 99.96 to 99.99% purity, master alloys of copper (arsenic, phosphorus, nickel, chromium-zirconium and silicon alloys) and copper products such as tubes, pipes, ingots, busbars, rods and coils (AP p.3).

Who pays it: manufacturers in power infrastructure, electric vehicles and automotive, construction and renewable energy; 176 customers in 15 states and union territories and 5 countries over the period covered (AP p.3, AP p.4). The top ten customers were 69.53% of revenue in the six months to September 2025 (DRHP p.30).

Why it is raising money: ₹317.85 million to expand copper-cathode capacity at Unit III, Vadodara, ₹400.00 million to repay borrowings, and the rest for general purposes (DRHP p.103).

How fast it has grown: revenue was ₹5,454 million in FY23, ₹5,112 million in FY24 and ₹6,077 million in FY25, and ₹3,446 million in the six months to September 2025 (AP p.7).

The one thing to understand: a thin-margin metal processor. EBITDA margin was 2.20% in FY23 and 5.98% in the latest six months; in those six months profit after tax (₹223.74 million) exceeded EBITDA (₹206.03 million) because of ₹103.32 million of other income, which included a ₹45.07 million gain on losing control of a subsidiary (AP p.8, DRHP p.285).

02The business, in plain words

A copper recycler buys scrap, discarded wire, cable and other copper material, some of it imported, melts and electro-refines it, and sells refined cathodes and shaped products to manufacturers. Its margin is a small spread over the copper price.

A cable maker in Gujarat needs copper cathodes → it places a purchase order with Gujarat Victory → the company refines bought scrap into cathodes at Vadodara and ships them with a purity certificate → it is paid per tonne.

The company has two adjacent manufacturing units in Vadodara, Unit II and Unit III, with installed capacity of 2,760 and 6,600 tonnes a year at the date of the DRHP (DRHP p.175). Its revenue is concentrated in Gujarat and Dadra and Nagar Haveli (AP p.9). Its corporate identity number records registration in Gujarat in 1990 (DRHP p.1).

Earnings equation: Profit ≈ tonnes sold × (product price − scrap cost − refining cost) − interest. Materials were 90.46% of total income in the six months to September 2025 (DRHP p.331).

03Where the money comes from

Source: AP p.3, AP p.7. H1 FY26 is six months. The three product lines were 93.07% of revenue in the six months; the rest is other operating revenue (AP p.3).

Source: DRHP p.30.

04The growth record

Source: AP p.7, AP p.8. H1 FY26 is six months. EBITDA here excludes other income (AP p.8).

Our arithmetic: revenue grew about 5.6% a year from FY23 to FY25 and profit after tax about 82.9% a year (our arithmetic, AP p.7). The CareEdge comparison table in the offer document puts return on capital employed at 17.71% in FY23, 18.00% in FY24 and 27.01% in FY25 (DRHP p.171).

05What the growth is made of

Margin more than volume. Revenue grew 11% from FY23 to FY25, while EBITDA more than doubled as the margin rose from 2.20% to 4.67% (our arithmetic, AP p.7, AP p.8). Master-alloy revenue rose from ₹568 million in FY24 to ₹1,345 million in FY25 (AP p.3). Cathode capacity was used at 61.29% in FY25 and 60.94% in the six months (DRHP p.195).

06Earnings quality

Two things to watch. First, other income: ₹103.32 million in the six months to September 2025, or 37% of profit before tax of ₹276.57 million, including the ₹45.07 million gain when Buntingwa Resources, Zambia, became an associate instead of a subsidiary on 1 July 2025 (our arithmetic, DRHP p.248, DRHP p.285, DRHP p.335). Second, cash: operating cash flow turned negative ₹308.78 million in the six months, which the document explains by working-capital changes (DRHP p.335). The statutory auditors expressed no qualification, reservation, adverse remark, emphasis of matter or other observation (AP p.10).

07The balance sheet

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

The ₹400 million earmarked for repaying debt is more than the ₹374.08 million of borrowings at September 2025 (our arithmetic, AP p.7, DRHP p.103).

08What the money is for

Source: DRHP p.103.

GST of ₹54.35 million on the expansion is to be paid from internal accruals (DRHP p.103).

09Who is selling

Source: AP p.1.

Vijendrakumar Gupta holds 45,512,400 shares, so the offer is 29% of that holding (our arithmetic, AP p.7). The average cost reflects a bonus issue of 390 shares for every share held, approved in February and March 2026 (DRHP p.119).

10Promoters

The promoters are Vijendrakumar Bishamber Gupta, Manjuben Vijendrakumar Gupta and Rahul Vijendra Agrawal (AP p.6). Vijendrakumar Gupta, whole-time director, has been with the company since incorporation and oversees operations and product development (AP p.6). Manjuben Gupta, non-executive director, has been a director since incorporation, overseeing HR and administration (AP p.6). Rahul Vijendra Agrawal joined as general manager of operations in 2021 and became chairman and managing director on 27 November 2025 (AP p.6).

11Who already owns it

Source: AP p.7.

The three promoters hold 99.76% (our arithmetic, AP p.7).

12What changed just before the IPO

• Leadership: Rahul Vijendra Agrawal became chairman and managing director in November 2025 (AP p.6).
• Subsidiary: Buntingwa Resources, Zambia, became an associate in July 2025 (DRHP p.248).
• Bonus issue: 390-for-1, taking the share count to 67,447,500 (DRHP p.119, AP p.7).
• Cash: operating cash flow negative in the six months (AP p.7).
• New product: copper coils, at 13.40% utilisation of a new 400-tonne line in the six months (DRHP p.195).
• Share split: 17,250 shares of ₹100 were sub-divided into 1,72,500 shares of ₹10 in February 2026, and 6,72,75,000 bonus shares followed on 6 March 2026 at nil consideration, the last allotment before the offer (DRHP p.88).
• Auditor: the term of M/s R. K. Raman & Co. expired on 18 October 2025 and M/s Parikh Mehta & Associates was appointed on 10 November 2025 for five financial years (DRHP p.80).
• Public company: converted from a private limited company in March 2026 (DRHP p.3).

13Capacity and expansion

Source: DRHP p.195. Cathode utilisation was 56.87%, 66.34% and 61.29% in FY23 to FY25 (DRHP p.195).

The proceeds add cathode capacity at Unit III, although existing cathode capacity has been about 60% used (DRHP p.103, DRHP p.195).

14Market size and industry structure

The CareEdge report cited in the offer document describes India's non-ferrous metals industry as supplying power, construction, transport, renewables and electronics, and says recycling policies are reducing dependence on imported scrap (AP p.5). newboard has not tested the report's statements.

15Competitive position

What the document claims, and what it rests on:

• High-purity cathodes of 99.96 to 99.99% from scrap (AP p.3).
• A range of master alloys used by other metal makers (AP p.3).
• Repeat customers, who were 55.50% of revenue in the six months (DRHP p.30).

Against that: thin margins, dependence on scrap quality and imports, purchase-order business with no long-term contracts, and western-India concentration (AP p.9).

16Peers the company named

Source: DRHP p.120. Peer P/E uses prices on 20 March 2026.

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

17Risks, in plain words

• Scrap. Quality and supply of copper scrap, some imported (AP p.9).
• One product. Copper cathodes are the largest line (AP p.9).
• Customers. Repeat buyers on purchase orders, no long-term contracts (AP p.9).
• Suppliers. No long-term supply agreements (AP p.9).
• Region. Gujarat and Dadra and Nagar Haveli (AP p.9).
• Other income. A large share of recent profit (DRHP p.285).

18Litigation and regulatory matters

Source: AP p.11.

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:

• Why control of Buntingwa Resources was given up, and what the company still owns, in the pages read.
• Why cathode capacity is being expanded while existing cathode capacity is about 60% used, in the pages read.
• Who the largest customers are.
• What the ₹99 million of proceedings against the company concern, in the pages read.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. What happened at Buntingwa Resources in Zambia, and what exposure remains?
2. How much of the six-month profit will recur without the ₹45 million gain?
3. Why add cathode capacity when utilisation is about 60%?
4. Why did operating cash flow turn negative in the six months to September 2025?
5. How much scrap is imported, and from where?

2Sources and cited facts

This study was read from 2 documents the company filed. The 61 figures it cites are listed under the document each came from, with the page and the sentence as printed.