Iris Global Services Limited IPO

01At a glance

What the company does: a business-to-business distributor of information and communication technology (ICT) products, standing between the brands that make them (Dell, HP, Acer, LG, Schneider Electric and others) and the resellers, system integrators and regional distributors that supply end users (DRHP p.27, DRHP p.199).

Who pays it: its "Channel Partners". 2,692 of them bought from it in FY26 (DRHP p.28). The document names Orient Technologies Limited, Microworld Infosol Private Limited, Transline Technologies Limited and Symmetrix Computer Systems Private Limited among its key customers (DRHP p.201) and says it has no concentration of customers (DRHP p.335). Repeat Channel Partners gave 86.12% of FY26 revenue (DRHP p.28).

Why it is raising money: ₹156.0 crore of the ₹200.0 crore fresh issue is for working capital in FY27 and FY28, and the rest, net of issue costs, for general corporate purposes (DRHP p.106, DRHP p.107).

How fast it has grown: revenue from ₹2,685.0 crore in FY24 to ₹4,156.4 crore in FY26, a CAGR of 24.4%, and profit after tax from ₹53.0 crore to ₹79.5 crore, a CAGR of 22.5% (DRHP p.64; our arithmetic, matching the document's 24.42% and 22.49% on DRHP p.199).

The one thing to understand: this is a large-volume, thin-margin business funded by credit. EBITDA was 3.15% of revenue in FY26 (DRHP p.203), while trade receivables grew from ₹533.5 crore to ₹1,291.1 crore over FY24 to FY26 and receivable days from 73 to 113 (DRHP p.37). Operating cash flow over the three years was ₹38.7 crore against ₹194.8 crore of profit (our arithmetic, DRHP p.64, DRHP p.65).

02The business, in plain words

A distributor holds brand agreements, purchases stock from the brand, and resupplies it on credit to thousands of smaller resellers who could not deal with the brand directly or could not get the same credit.

A system integrator needs laptops and a server for a client → it orders them from Iris Global against a purchase order → Iris Global procures from Dell, HP or another brand, holds the stock briefly at one of its 32 warehouse-cum-branch offices and ships or releases it → the integrator pays on agreed credit terms; trade receivables equalled 113 days of revenue at March 2026 (DRHP p.35, DRHP p.37).

The company works in two verticals. Enterprise and Infrastructure Solutions (EIS) covers servers including GPU-based AI servers, storage, networking, CCTV and surveillance, and UPS and data-centre power; it was 31.31% of FY26 revenue, up from 25.00% in FY24 (DRHP p.29). Computing and Mobility Solutions (CMS) covers laptops, desktops, monitors, large displays, printers and accessories; it was 68.69% (DRHP p.29). It sold 12,845 SKUs (stock-keeping units, one per distinct product) in FY26 (DRHP p.203).

Besides moving boxes, it offers what the document calls value-added capabilities: logistics, credit support to Channel Partners, warranty and annual maintenance support, and infrastructure rental (DRHP p.213). It says it procures mainly against confirmed orders, so inventory is small: 11 days of cost of goods at March 2026 (DRHP p.35). It had 260 permanent employees at 31 July 2026, 76 of them in sales and marketing (DRHP p.214).

Earnings equation: Profit ≈ value of products resupplied × (resale margin + brand incentives) + interest charged to customers − staff, warehouse and interest costs. Purchases of stock-in-trade were ₹3,993.5 crore against revenue of ₹4,156.4 crore in FY26 (DRHP p.64), so the gross spread is a few per cent of revenue. Interest income from customers was ₹20.8 crore in FY26 (DRHP p.327).

03Where the money comes from

Source: DRHP p.28, DRHP p.29, DRHP p.33.

Source: DRHP p.27, DRHP p.28.

The document does not give a share for the largest customer, the top five or the top ten; it states that the company has no concentration of customers (DRHP p.335). The concentration it does disclose sits on the supply side: the top ten Technology Brands were 75.40% of FY26 purchases and the top five 66.24% (DRHP p.27). Dell International Services India Pvt. Ltd. alone supplied 31.47% of FY26 purchases, up from 27.05% in FY24, and HP India Sales Private Limited 16.21% (DRHP p.335, DRHP p.336).

04The growth record

Source: DRHP p.42, DRHP p.63, DRHP p.64, DRHP p.65, DRHP p.118, DRHP p.203. The document computes EBITDA after removing other income (DRHP p.314).

Revenue CAGR FY24 to FY26 was 24.4%, EBITDA CAGR 28.8% and PAT CAGR 22.5% (our arithmetic, DRHP p.64, DRHP p.203). EBITDA margin moved up by 21 basis points, from 2.94% to 3.15% (our arithmetic, DRHP p.203). Year by year, revenue grew 20.3% in FY25 and 28.7% in FY26 (our arithmetic, DRHP p.64). No change of year end or restatement of a year is mentioned in the pages read.

05What the growth is made of

Revenue rose from ₹2,685.0 crore in FY24 to ₹4,156.4 crore in FY26 (DRHP p.64). The document explains the FY26 increase of 28.72% by higher sales of displays, servers and storage and higher revenue from Delhi, Karnataka, Bihar and Andhra Pradesh (DRHP p.327). It explains the FY25 increase of 20.27% by higher sales of displays, servers, storage, surveillance and networking, and by more brands on board: 30 in FY24, 62 in FY25 (DRHP p.328).

Two shifts are visible in the figures. The EIS vertical grew from ₹671.3 crore to ₹1,301.2 crore, and North India from ₹955.9 crore to ₹1,900.1 crore (DRHP p.29, DRHP p.33). The number of Channel Partners billed stayed near 2,700 across the three years (DRHP p.28), so the growth came from more business per partner rather than more partners.

The offer document does not disclose units shipped or average selling prices, so the increase cannot be separated into volume and price.

06Earnings quality

The item that needs explaining is the gap between profit and cash. Trade receivables rose by ₹459.7 crore in FY26 alone (DRHP p.65), and the company says its credit extends to Channel Partners requiring longer credit periods (DRHP p.111). Payables rose too, by ₹287.1 crore in FY26 (DRHP p.65), so suppliers funded part of it. Credit insurance on receivables was capped at ₹70.0 crore in FY26, 5.42% of receivables (DRHP p.38). Bad debts written off were ₹3.6 crore in FY24 and ₹0.2 crore in FY26 (DRHP p.37).

Other income is large next to a 3% margin: ₹30.5 crore in FY26, of which ₹20.8 crore was interest charged to customers and ₹8.1 crore interest on fixed deposits (DRHP p.64, DRHP p.327). Finance costs were ₹50.4 crore in FY26, up 69.17%, including ₹22.3 crore of bill discounting charges and ₹13.9 crore of factoring charges (DRHP p.327, DRHP p.328).

07The balance sheet

Source: DRHP p.63, DRHP p.109. Cash and other bank balances are our arithmetic from the two lines on DRHP p.63.

Nearly all the cash sits in bank balances other than cash: ₹121.4 crore at March 2026 against ₹0.2 crore of cash (DRHP p.63). The document says fixed deposits are placed as collateral for borrowing facilities (DRHP p.327). Net debt was ₹115.5 crore, 0.9 times FY26 EBITDA (our arithmetic, DRHP p.63, DRHP p.203). Lease liabilities were ₹10.9 crore (DRHP p.63).

Borrowings then rose after the year end. At 31 July 2026 the company had ₹434.4 crore outstanding under fund-based working capital facilities and ₹110.6 crore under letters of credit and bank guarantees, ₹545.0 crore in all, against sanctioned limits of ₹645.0 crore (DRHP p.338). Interest rates range from 7.75% to 9.60% (DRHP p.338). Sanjiv Krishen and Anjali Krishen have given personal guarantees for facilities of ₹645.0 crore (DRHP p.49).

Contingent liabilities at March 2026 were ₹24.1 crore: direct tax claims ₹7.7 crore, indirect tax claims ₹13.4 crore, and ₹3.0 crore of bank guarantees for credit extended to third parties; capital commitments were a further ₹24.8 crore (DRHP p.67).

After the issue: the fresh issue is not for debt repayment. The ₹156.0 crore goes into working capital over FY27 and FY28 alongside borrowings, which the company plans at ₹260.9 crore and ₹286.9 crore in those years (DRHP p.110). A pro forma balance sheet cannot be drawn because net proceeds are not yet set (DRHP p.106).

08What the money is for

Source: DRHP p.107. Percentages are our arithmetic on the ₹200.0 crore fresh issue.

Working capital: the company estimates its requirement at ₹546.8 crore in FY27 and ₹762.6 crore in FY28, against ₹392.8 crore in FY26, and plans to meet it with the proceeds, short-term borrowings and internal accruals (DRHP p.109, DRHP p.110). Those estimates assume receivable days of 107 and 103 and payable days of 79 and 74, with the fall in payable days attributed to upfront payments to some brands (DRHP p.110, DRHP p.111). They are the company's own estimates and are not appraised by any bank (DRHP p.50).

General corporate purposes: a list including acquisitions, brand building and working capital, capped at 25% of gross proceeds (DRHP p.112).

Pre-IPO placement: the company may raise up to ₹40.0 crore before the RHP, which would reduce the fresh issue by the same amount (DRHP p.106).

Into the business ₹200.0 crore (fresh issue, gross) (DRHP p.60). To selling shareholders 50,000,000 shares, about 25.0% of the pre-issue shares (DRHP p.60; our arithmetic, DRHP p.82).

At DRHP stage the offer for sale is a share count, not an amount; it cannot be priced until a band is set.

09Who is selling

Source: DRHP p.1, DRHP p.90. The last column is our arithmetic.

The weighted average cost of acquisition, after the split and bonus, is ₹1.27 a share for Sanjiv Krishen and ₹1.57 for Kamini Talwar (DRHP p.1, DRHP p.101). No other shareholder is selling.

10Promoters

Sanjiv Krishen, 78, is Chairman and Managing Director and holds 88.12% (DRHP p.90, DRHP p.251). The document gives over 55 years in the ICT distribution industry, earlier roles with IBM World Trade Corporation, Odin Computers India Limited, Jeraisy Computer Services and Ivalue Infosolutions, and association with the company since incorporation in April 2009 (DRHP p.234).

Kamini Talwar, 66, is a Whole-Time Director responsible for sales strategy and brand and partner relationships, and holds 10.12% (DRHP p.90, DRHP p.234). The document gives over 41 years in ICT distribution and association with the company since May 2009 (DRHP p.234).

What the company pays them: remuneration of ₹1.76 crore to Sanjiv Krishen and ₹1.07 crore to Kamini Talwar in FY24, and ₹0.65 crore and ₹0.42 crore in FY26 (DRHP p.69). New five-year terms from 7 March 2026 set Sanjiv Krishen's salary limit at ₹0.78 crore a year plus perquisites, with eligibility for a commission and a company car up to ₹1.0 crore, and give Kamini Talwar 5% of net profit for FY27 (DRHP p.235, DRHP p.236).

Group entities that deal with the company: Iris Computers Limited, in which both promoters are members, supplied ₹50.7 crore of goods in FY26 and ₹125.5 crore in FY25; Iris Waves Private Limited, where both are directors, bought ₹12.4 crore in FY26 (DRHP p.70, DRHP p.71, DRHP p.235). Iris Computers Limited operates in an overlapping segment, and a non-compete agreement with it was signed on 10 August 2026 (DRHP p.43). The company leases a Gurgaon basement from Kamini Talwar and a Bangalore property from Sanjiv Krishen together with Deepa Krishen, Sanjay Krishen and Anjali Krishen (DRHP p.253).

Pledges and regulatory matters: the promoters' offered shares are not pledged (DRHP p.98). Sanjiv Krishen received a summons from the Directorate of Enforcement under Section 50 of the Prevention of Money Laundering Act dated 31 December 2024, submitted documents on 31 January 2025, and has received no further communication (DRHP p.343). No company promoted by them has been delisted or debarred (DRHP p.253). The document says neither promoter has held a directorship in a listed company (DRHP p.50).

Promoter economics: the promoters' shares came from subscription at ₹10 in 2009, a private placement for consideration other than cash at ₹10 in March 2016, purchases from two early shareholders at ₹10 in 2017 and 2019, and conversion of an unsecured loan into 4,880,000 shares at ₹41 in March 2021 (DRHP p.83, DRHP p.90).

In January 2026 each ₹10 share was split into five ₹2 shares, and a 3:1 bonus followed on 30 January 2026 (DRHP p.83). Between September and December 2025 Sanjiv Krishen transferred shares to employees and others at ₹225 per ₹10 share, including 30,000 shares to Kamini Talwar on 29 December 2025 (DRHP p.92, DRHP p.93). After the split and bonus, ₹225 per ₹10 share equals ₹11.25 per current share (our arithmetic, DRHP p.83).

11Who already owns it

Source: DRHP p.97, DRHP p.98.

There is no private equity, venture capital or institutional holder, and no promoter group member holds shares (DRHP p.89). The largest non-promoter holders are individuals, led by Manoj Kumar at 0.30% and Himanshu Chawla and Prasoon Kumar at 0.20% each (DRHP p.99); Prasoon Kumar is the Chief Financial Officer and Pankaj Dhingra, a Whole-Time Director, holds 0.18% (DRHP p.69, DRHP p.99). Most came in through transfers from the promoters at ₹50 per ₹10 share in November 2021 and ₹225 in late 2025 (DRHP p.90, DRHP p.92).

After the offer for sale alone the promoters would hold 146,280,000 shares, 73.2% of the present share count (our arithmetic, DRHP p.90); the fresh shares will dilute that further by an amount not known until the price is set. An ESOP plan of up to 2,000,000 shares was adopted in March 2026 (DRHP p.102).

12What changed just before the IPO

• Borrowings: ₹545.0 crore outstanding at 31 July 2026, including non-fund facilities, against ₹237.1 crore of borrowings at 31 March 2026 (DRHP p.42, DRHP p.338).
• Receivables: receivable days up from 73 in FY24 to 113 in FY26 (DRHP p.37).
• Brands: from 30 in FY24 to 70 in FY26 and 73 at July 2026 (DRHP p.27).
• Finance costs: up 69.17% in FY26, with factoring charges rising from ₹3.5 crore to ₹13.9 crore (DRHP p.327, DRHP p.328).
• Share structure: split of ₹10 shares into ₹2 shares and a 3:1 bonus, January 2026 (DRHP p.83).
• Secondary transfers: promoter shares transferred at ₹225 per ₹10 share, September to December 2025 (DRHP p.92).
• Public company: conversion approved in December 2025, fresh certificate dated 20 February 2026 (DRHP p.226).
• Auditor: G A M S & Associates LLP resigned on 7 January 2026 citing rotation rules, and Sudhir Agarwal & Associates was appointed on 16 January 2026 (DRHP p.75).
• Board and management: three independent directors joined in March and April 2026 (DRHP p.234, DRHP p.235); key managerial personnel rose from 2 to 6 in FY26 (DRHP p.45).
• Promoter pay: new terms from 7 March 2026, including 5% of FY27 net profit for Kamini Talwar (DRHP p.235, DRHP p.236).
• Related parties: purchases from Iris Computers Limited fell from ₹125.5 crore in FY25 to ₹50.7 crore in FY26; a non-compete with it was signed in August 2026 (DRHP p.43, DRHP p.70).
• Credit rating: CARE BBB+ with a positive outlook in September 2023, CARE A- from October 2024 (DRHP p.46, DRHP p.47).

13Capacity and expansion

The company manufactures nothing, so there is no installed capacity or utilisation to report. Its physical base is 32 leased warehouse-cum-branch offices in 21 states and union territories (DRHP p.34, DRHP p.35). The issue funds no capital expenditure; the proceeds go to working capital and general purposes (DRHP p.107). Rent paid was ₹2.9 crore in FY26 (DRHP p.34).

14Market size and industry structure

As claimed: the Frost & Sullivan report "The Indian ICT Products Distribution Market", dated 19 September 2026 and commissioned and paid for by the company, puts India's ICT product market at distributor level at ₹2,24,521.1 crore in FY2026 and projects ₹3,70,967.9 crore by FY2031 (DRHP p.24, DRHP p.204). Those projections are the report's, and newboard has not tested them. The part that is addressable: the report's figure covers PCs, tablets, servers, storage, UPS, surveillance cameras, displays, projectors and networking equipment (DRHP p.204), which matches both of the company's verticals. What the company is today: FY26 revenue of ₹4,156.4 crore is about 1.9% of the report's FY2026 figure (our arithmetic, DRHP p.64, DRHP p.204).

Structure: the company describes competition from organised and unorganised players, and names Rashi Peripherals Limited, Redington Limited and Creative Newtech Limited, from the commissioned report, as its key competitors (DRHP p.44, DRHP p.45). Competition is on price, product availability, delivery, credit terms and breadth of range (DRHP p.214). Brands supply on non-exclusive agreements that can usually be ended on notice without cause, and a brand can appoint other distributors or supply end customers directly (DRHP p.31). The products are made by global brands; the report lists supply-chain and global sourcing dependence as a challenge for the industry (DRHP p.192).

15Competitive position

Source: DRHP p.122. The peers' figures are as the offer document reports them; borrowings in rupees are not given for the peers.

What the document says customers and brands get from the company: a range of 70 brands and 12,845 SKUs, credit support, logistics from 32 locations, and warranty and maintenance support (DRHP p.203, DRHP p.213). Relationships with Acer since 2016, Dell since 2017, and LG and HP since 2019 are cited (DRHP p.201). The agreements are non-exclusive and terminable (DRHP p.31), so there is no contractual lock-in on either side, and the company does not enter long-term arrangements with Channel Partners (DRHP p.28).

Two named counterparties appear on both sides: Comnet Solutions Pvt Ltd is named as a Channel Partner and was the sixth-largest supplier in FY26 at ₹96.4 crore, and Transline Technologies is named as a key customer and supplied ₹58.5 crore (DRHP p.28, DRHP p.201, DRHP p.335).

16Peers the company named

Peers named in the offer document: Creative Newtech Limited, Rashi Peripherals Limited and Redington Limited (DRHP p.119).

Source: DRHP p.119. The size column is our arithmetic. P/E is at closing prices of 17 September 2026 on FY26 diluted EPS, as the document computes it; the document puts the peer average at 22.29 (DRHP p.118, DRHP p.119).

Redington is nearly 29 times the company's revenue and Rashi Peripherals nearly four times; Creative Newtech is smaller. All three are distributors in the same trade. The company's own RoNW was 26.62% on FY26 diluted EPS of ₹3.98 and net asset value of ₹14.95 a share (DRHP p.117, DRHP p.118).

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

17Risks, in plain words

Suppliers

• One brand: Dell International Services India Pvt. Ltd. supplied 31.47% of FY26 purchases (DRHP p.335) → a change in Dell's allocation or terms would reach a third of what the company resupplies → top ten brands were 75.40% of purchases (DRHP p.27).
• Terminable agreements: brand agreements are non-exclusive and can generally be ended on notice without cause (DRHP p.31) → the business rests on renewals → 73 brands at July 2026 (DRHP p.27).

Customers

• Credit: receivable days rose from 73 to 113 over FY24 to FY26 (DRHP p.37) → cash is tied up for longer and bad debts fall on the company → credit insurance covered 5.42% of FY26 receivables (DRHP p.38).
• No contracts: Channel Partners order against purchase orders with no long-term arrangement (DRHP p.28) → 86.12% of FY26 revenue came from repeat partners (DRHP p.28).
• Region: North India was 45.71% of FY26 revenue (DRHP p.32).

Financial

• Thin margin, rising interest: EBITDA margin 3.15% in FY26 (DRHP p.203) → finance costs were 38.5% of EBITDA in FY26 (our arithmetic, DRHP p.64, DRHP p.203) → interest cover fell from 3.69 to 2.52 times (DRHP p.42).
• Cash flow: operating cash flow was an outflow of ₹45.2 crore in FY25 (DRHP p.65).
• Guarantees: facilities of ₹645.0 crore rest on personal guarantees from Sanjiv Krishen and Anjali Krishen (DRHP p.49).

Regulation and legal

• Investigation: the company is one of 14 companies under a Ministry of Corporate Affairs investigation ordered in December 2022, still pending (DRHP p.341).
• Compliance record: delayed and erroneous filings with the Registrar of Companies, with compounding and adjudication applications pending (DRHP p.41); a GST payment of ₹63.4 crore was one day late in FY25 (DRHP p.37); the extended producer responsibility authorisation has expired and renewal is pending a portal issue (DRHP p.47).

Promoters

• Control: the promoters hold 98.24% before the issue and will keep a majority after it (DRHP p.48).
• Group overlap: Iris Computers Limited operates in an overlapping segment (DRHP p.43).

Issue-specific

• Proceeds to sellers: 50,000,000 of the offered shares are sold by the promoters, and the company receives nothing from that part (DRHP p.60).
• Cost of existing shares: the weighted average cost of shares transacted in the last year was ₹0.20 (DRHP p.101).

18Litigation and regulatory matters

Criminal: no criminal proceedings are outstanding against the company, the promoters or the directors (DRHP p.341, DRHP p.343). The company has filed 75 complaints for dishonoured cheques from customers, ₹50.0 crore in all (DRHP p.342). A complaint by the Assistant Registrar of Companies names the Company Secretary, Yati Gupta, over a cost audit filing of another company for FY2016-17; Yati Gupta has disputed it (DRHP p.344).

Regulatory: the document states that the Ministry of Corporate Affairs order of 19 December 2022 covers 14 companies and that the company was included on the ground of fraud and diversion of funds; the company has furnished records, has received no findings or specific allegations, and asked for closure in July 2026 (DRHP p.341). Sanjiv Krishen's Enforcement Directorate summons is described in section 09 (DRHP p.343).

Civil: no material civil proceedings against the company, promoters or directors (DRHP p.341, DRHP p.343). Sanjiv Krishen's petition concerns an unpaid settlement balance of ₹18.3 crore claimed from Kapil Gupta (DRHP p.343).

Group companies: Iris Computers Limited has filed cheque dishonour complaints of about ₹174.3 crore and a commercial suit for about ₹91.6 crore, is also under the MCA investigation, and received SEBI summons in 2024 for documents in an investigation of other entities (DRHP p.344, DRHP p.345).

19Related-party transactions

Source: DRHP p.42, DRHP p.69, DRHP p.70, DRHP p.71.

Other items: purchases from IIPT Technologies Pte. Limited of ₹4.7 crore in FY25 (DRHP p.70); sales to Iris Computers Limited of ₹5.0 crore in FY25 and none in FY26 (DRHP p.70); rent of ₹0.04 crore a year each to Sanjiv Krishen, Deepa Krishen, Sanjay Krishen and Anjali Krishen (DRHP p.70). An advance of ₹67.3 crore to Iris Computers Limited was outstanding at March 2025 and nil at March 2026 (DRHP p.73). Loans from the promoters outstanding at March 2025, ₹4.5 crore from Sanjiv Krishen and ₹0.5 crore from Kamini Talwar, were nil at March 2026 (DRHP p.72).

Appeared or changed in the last two years: purchases from Iris Computers Limited fell by more than half in FY26 and the non-compete with it dates from 10 August 2026 (DRHP p.43, DRHP p.70); new leases from the promoters are dated March and May 2026 (DRHP p.253); Kamini Talwar's profit-linked pay applies to FY27 (DRHP p.235).

20What the offer document does not say

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

• Customer concentration: no share for the largest, top five or top ten customers; it states only that there is no concentration (DRHP p.335).
• Gross margin by vertical or brand, or the size of brand incentives and price protection income.
• Units shipped or average prices, so growth cannot be split into volume and price.
• Why 2,692 partners were billed in FY26 while the business section speaks of over 10,500 Channel Partners (DRHP p.28, DRHP p.201); the two figures appear to measure different things.
• How much of receivables is factored or discounted, though factoring and bill discounting charges were ₹36.3 crore in FY26 (our arithmetic, DRHP p.327, DRHP p.328).
• The price band, lot size, issue dates or the post-issue share count, which is normal at DRHP stage.

21Five questions for management

1. What share of FY26 revenue came from the largest customer and the top ten, given that the document states no concentration but does not print the figures?
2. How much of the rise in receivable days from 73 to 113 comes from partners on extended credit terms, and what interest do they pay?
3. What amount of receivables was factored or discounted at 31 March 2026, and is any of it with recourse to the company?
4. Why did fund-based borrowings reach ₹434.4 crore at 31 July 2026 against ₹237.1 crore of borrowings at 31 March 2026?
5. What share of FY26 gross profit came from brand incentives, rebates and price protection rather than resale margin?

1Sources and cited facts

This study was read from 1 document the company filed. The 128 figures it cites are listed under the document each came from, with the page and the sentence as printed.