Jagatjit Agri Engineering Limited IPO

01At a glance

What the company does: it manufactures tractor-operated and tractor-mounted agricultural implements such as the Super Seeder, Straw Reaper, Rotavator and Laser Land Leveller, plus briquette and pellet machines, at two plants in Punjab (DRHP p.251, DRHP p.271).

Who pays it: dealers and distributors who resell to farmers, and some direct customers; the largest customer, Seth Agro Industries, was 25.21% of FY26 revenue (DRHP p.267). Dealers and distributors together brought in 86.08% of FY26 revenue (DRHP p.253).

Why it is raising money: ₹1,100.00 million for working capital and ₹716.64 million to expand the Dehlon plant, out of a fresh issue of up to ₹3,000 million (DRHP p.130).

How fast it has grown: restated revenue went from ₹488.60 million in FY24 to ₹4,139.70 million in FY26 and profit after tax from ₹25.02 million to ₹313.90 million (DRHP p.93), a revenue CAGR of 191.1% and a PAT CAGR of 254.2% (our arithmetic, DRHP p.93).

The one thing to understand: most of that growth is an acquisition, not a like-for-like increase. Until March 2025 the Jagatjit business ran mainly through two proprietorships, Saron Mechanical Works I (Dharam Singh) and Saron Mechanical Works II (Jagatjit Singh), which were transferred to the company from 1 April 2025 (DRHP p.253). On the proforma basis that includes them, FY25 revenue was ₹2,537.60 million (DRHP p.98).

02The business, in plain words

A farmer who owns a tractor needs attachments for each stage of the crop: a plough or rotavator to prepare the soil, a seeder to sow, a reaper or thresher at harvest, and a mulcher or straw machine to deal with stubble. Jagatjit makes those attachments.

A farmer → orders a Super Seeder or Straw Reaper through a local dealer → Jagatjit cuts, bends, welds, machines, paints and assembles it in Punjab → the dealer or distributor pays Jagatjit, usually on 30 to 45 days' credit (DRHP p.270).

The company lists more than 20 products and 190 SKUs, three patents and 35 registered trademarks (DRHP p.252). Its home market is northern and central India: those regions were ₹3,890.89 million, or 93.99%, of FY26 revenue (DRHP p.253). Exports were 1.36% of FY26 revenue (DRHP p.254). Many of its products are bought with state subsidies under the SMAM and crop residue management schemes, which pay 40% to 80% of the equipment cost depending on the scheme and the farmer (DRHP p.256).

Sales are seasonal. The fourth quarter brought in 37.88% of FY26 revenue and the first quarter 10.52% (DRHP p.41).

Earnings equation: Revenue = implements sold × price per implement. The company sold 19,111 units in FY26, against 3,803 in FY25 and 1,578 in FY24 on the restated basis (DRHP p.164). Average revenue per unit sold was about ₹0.22 million in FY26 (our arithmetic, DRHP p.164).

03Where the money comes from

Source: DRHP p.275. The three flagship products were 64.40% of FY26 revenue (DRHP p.32).

Source: DRHP p.42, DRHP p.253. In FY24 and FY25 the largest customer was Saron Mechanical Works II, the proprietorship of Jagatjit Singh, at ₹94.53 million and ₹209.15 million (DRHP p.267). In FY26 it was Seth Agro Industries at ₹1,043.46 million (DRHP p.267). On the proforma basis, the top ten were 44.48% of FY25 revenue (DRHP p.30).

In numbers: one outside customer took a quarter of FY26 revenue, and the top ten took half.

04The growth record

Source: DRHP p.91, DRHP p.93, DRHP p.94, DRHP p.164. FY24 and FY25 are standalone figures; FY26 is consolidated, with the subsidiary Jagatjit Energies Private Limited (DRHP p.91). RoE for FY24 is not computed because average equity was negative (DRHP p.164).

Revenue CAGR FY24 to FY26: 191.1% (our arithmetic, DRHP p.93). EBITDA CAGR FY24 to FY26: 189.2% (our arithmetic, DRHP p.164). PAT CAGR FY24 to FY26: 254.2% (our arithmetic, DRHP p.93). EBITDA margin: 13.64% in FY24 to 13.46% in FY26, down 18 basis points (DRHP p.164).

The restated FY24 and FY25 figures exclude the two proprietorships. The proforma figures, which include them as if acquired earlier, show revenue of ₹2,074.48 million in FY24 and ₹2,537.60 million in FY25, and profit of ₹80.82 million and ₹206.95 million (DRHP p.98). Against those, FY26 revenue is up 41.3% a year and profit 97.1% a year (our arithmetic, proforma FY24 against restated FY26, DRHP p.98, DRHP p.93).

Operating cash flow was ₹26.85 million in FY26 against profit of ₹313.90 million (DRHP p.94). Other income of ₹35.03 million was 7.9% of FY26 profit before tax of ₹444.12 million (our arithmetic, DRHP p.93). Receivable days were 23 in FY24, 57 in FY25 and 45 in FY26 on the audited standalone basis (DRHP p.133).

Net debt, borrowings including leases less cash and other bank balances, was ₹1,194.17 million at March 2026, or 2.1 times FY26 EBITDA (our arithmetic, DRHP p.91, DRHP p.164). RoCE was 31.10% in FY26 (DRHP p.164). Contingent liabilities at March 2026 totalled ₹71.70 million: GST demands of ₹22.67 million, income tax demands of ₹0.18 million, ₹6.50 million of other money and ₹42.35 million of bank guarantees (DRHP p.99).

05What the growth is made of

The company says so itself: the FY26 revenue increase of 331.55% was "primarily attributable to the addition of revenues on account of the acquisition" of the two proprietorships from 1 April 2025 (DRHP p.479). The FY25 increase of 96.33% over FY24 came from more implements sold and higher exports, which rose from ₹24.48 million to ₹84.35 million (DRHP p.481).

Volume can be followed in units. Restated units sold went from 3,803 in FY25 to 19,111 in FY26; on the proforma basis the FY25 figure was 12,234 (DRHP p.164). Proforma FY25 revenue of ₹2,537.60 million on 12,234 units, set against FY26 revenue of ₹4,139.70 million on 19,111 units, puts about 56% more units against about 63% more revenue (our arithmetic, DRHP p.164). The rest is price and mix, which the document does not separate.

Distribution also shifted: distributors went from 12.61% of revenue in FY24 to 46.16% in FY26 (DRHP p.253).

06Earnings quality

The item that needs explaining is the FY26 cash flow. Inventories rose by ₹445.46 million and other assets by ₹281.35 million in FY26, while receivables fell by ₹242.66 million (DRHP p.94). Finished goods stood at ₹432.33 million at March 2026 against ₹19.26 million a year earlier, partly because ₹336.61 million of finished goods came across from the proprietorships (DRHP p.480). FY26 also carried ₹13.8 million of bad debts written off and ₹18.97 million of allowance for doubtful receivables, both nil in FY24 (DRHP p.478).

The document also notes material adjustments between the special purpose financial statements and the audited financial statements for FY25 and FY24, reconciled in Note 53 (DRHP p.477).

07The balance sheet

Source: DRHP p.91. Lease liabilities and cash rows add the two lines the document prints separately.

Outstanding borrowings were ₹1,641.44 million at 31 August 2026 (DRHP p.146). The three promoters have personally guaranteed borrowings of ₹1,340.89 million outstanding at that date (DRHP p.46).

After the fresh issue, where the arithmetic is available: borrowings excluding leases were ₹1,247.28 million at March 2026; repaying ₹185.00 million from the proceeds would leave ₹1,062.28 million on the March 2026 balance sheet (our arithmetic, DRHP p.91, DRHP p.130). The equity side cannot be computed until the issue price and share count are set.

08What the money is for

Source: DRHP p.130. Percentages are our arithmetic on the ₹3,000 million fresh issue.

• Working capital: ₹700.00 million in FY28 and ₹400.00 million in FY29 (DRHP p.130). Sanctioned working capital limits were ₹1,150 million at 31 August 2026, of which ₹945.02 million was used (DRHP p.133).
• Dehlon expansion: a fabrication unit, a utilities unit and an R&D unit on 16.20 acres leased from Jagatjit Singh (DRHP p.135). Plant and machinery is ₹449.84 million of the net cost (DRHP p.140). No orders had been placed at the date of the DRHP (DRHP p.135). Commercial production is scheduled from 1 March 2028 (DRHP p.143).
• Debt: up to ₹185.00 million of existing loans, all deployed in FY28 (DRHP p.130).
• Pre-IPO placement: the company may raise up to ₹600 million before the RHP, which would reduce the fresh issue (DRHP p.130).

Into the business: up to ₹3,000 million (fresh issue) (DRHP p.88). To the selling shareholder: 3,100,000 shares; the rupee amount depends on a price not yet set (DRHP p.88).

09Who is selling

Source: DRHP p.1, DRHP p.116. The last column is our arithmetic.

The offer has two parts: a fresh issue of up to ₹3,000 million, which is ₹300.0 crore (DRHP p.88), and an offer for sale of up to 3,100,000 equity shares of ₹5 each by Jagatjit Singh (DRHP p.88). Jagatjit Singh's average cost of acquisition is ₹5.40 a share (DRHP p.1). The company will receive nothing from the offer for sale (DRHP p.129).

10Promoters

The promoters are Dharam Singh, Jagatjit Singh and Simran Saron, who together hold 99.97% of the company (DRHP p.339). Dharam Singh, aged 78, is Chairman and Whole Time Director; Jagatjit Singh, aged 44, is Managing Director; Simran Saron, aged 38, is Whole Time Director (DRHP p.339). The document lists Jagatjit Singh as the son of Dharam Singh, and Simran Saron as the spouse of Jagatjit Singh (DRHP p.341). The original promoters were the late Ranjit Kaur and Simran Saron; Dharam Singh and Jagatjit Singh became directors in September 2020 (DRHP p.340).

Pay: in FY26 the company paid Jagatjit Singh ₹30.00 million, Dharam Singh ₹18.00 million and Simran Saron ₹12.00 million, ₹60.00 million in all; none of the three received remuneration from the company in FY25 or FY24 (DRHP p.100).

Other dealings: in FY26 the company advanced loans of ₹45.00 million to Jagatjit Singh and ₹10.00 million to Dharam Singh, both outstanding at March 2026 (DRHP p.100, DRHP p.101). Both plants stand on land leased from promoters (DRHP p.271). Promoter group entities include Guru Nanak Agriculture Implements and G9 International (DRHP p.342). In FY26 the company's sales to Guru Nanak Agriculture Implements were ₹63.43 million and its purchases from G9 International ₹42.65 million (DRHP p.100). Goodfield Technology Private Limited, a group company, also makes agricultural implements and has no non-compete with the company (DRHP p.41).

Regulatory matters: Dharam Singh and Jagatjit Singh sat on the company's board from 29 September 2020 to 31 October 2021 while on the Ministry of Corporate Affairs list of disqualified directors, arising from Jaggatjit Agro Private Limited, which was struck off; both have applied to compound the offence, and the company has filed an adjudication application (DRHP p.495, DRHP p.497). There are no criminal or material civil cases against the promoters, and no tax proceedings against them (DRHP p.496, DRHP p.499).

Promoter economics: the 2025 share allotments that paid for the proprietorships were priced at ₹1,547 a share of ₹10 face value, which is ₹35.15 a share after the bonus and split (DRHP p.169). Simran Saron's average cost is ₹0.22 a share and Dharam Singh's ₹33.70 a share (DRHP p.126).

11Who already owns it

Source: DRHP p.118. The company has seven shareholders (DRHP p.127). There are no private equity, venture capital or institutional holders. A year before the DRHP, Jagatjit Singh held 90.00% and Simran Saron 10.00% (DRHP p.117). The shares of the promoter group members and Apoorva Jamwal came as gifts of 100 shares each in early 2026, before the bonus (DRHP p.120, DRHP p.121). Post-issue holdings are left blank until the price is set (DRHP p.118).

12What changed just before the IPO

• Proprietorships folded in: under business transfer agreements dated 27 August 2025, the company took over Saron Mechanical Works I for ₹69.13 million and Saron Mechanical Works II for ₹255.44 million, with effect from 1 April 2025 (DRHP p.307, DRHP p.308).
• Shares for the transfer: on 22 October 2025, 44,688 shares went to Dharam Singh and 165,116 to Jagatjit Singh at ₹1,547 each, not for cash (DRHP p.111). That was the last allotment at a price.
• Bonus issue: 22 bonus shares for every share held, 26,615,688 shares allotted on 27 May 2026 (DRHP p.111). This was the last allotment before the DRHP.
• Share split: each ₹10 share became two ₹5 shares, approved by shareholders on 4 May 2026 (DRHP p.112).
• Pre-IPO placement: none made; up to ₹600 million may be raised before the RHP (DRHP p.130).
• Subsidiary: Jagatjit Energies Private Limited, incorporated in October 2025, was bought from Jagatjit Singh and Lakshjit Singh for ₹100,000 in December 2025 (DRHP p.305, DRHP p.308).
• Largest customer: Saron Mechanical Works II, 21.86% of FY25 revenue, gave way to Seth Agro Industries at 25.21% of FY26 revenue (DRHP p.267). Top ten customers fell from 56.09% of revenue in FY25 to 50.04% in FY26 (DRHP p.42).
• Promoter pay: from nil in FY24 and FY25 to ₹60.00 million in FY26 (DRHP p.100).
• Auditors: Singla Gupta & Co. resigned in April 2024; Kansal Sandeep & Associates was appointed in May 2024 and left in September 2024, when M/s Anup Kumar Jain & Co. was appointed (DRHP p.104).
• Public company: converted from a private company, with a fresh certificate issued on 23 March 2026 (DRHP p.3).
• Leases: the Cheema plant lease from the promoters is dated 2 December 2025 and the Dehlon lease from Jagatjit Singh 30 January 2026 (DRHP p.340).

13Capacity and expansion

Source: DRHP p.273. The restated tables show no Cheema capacity before FY26; on the proforma basis, which includes the proprietorships, Cheema had 18,000 units of capacity and ran at 64.59% in FY25 (DRHP p.273). The document says capacity figures rest on management estimates of product mix and are certified by an independent chartered engineer (DRHP p.54, DRHP p.274).

The Dehlon expansion is shown as taking installed capacity from 4,000 to 33,000, an addition of 29,000 (DRHP p.143). That table is headed "in ₹ million", while the 4,000 matches Dehlon's installed capacity in units; the document does not clarify the unit.

14Market size and industry structure

All market figures come from the "Industry Research Report on Agri Equipment Sector" dated 23 September 2026 by CARE Analytics and Advisory Private Limited, commissioned and paid for by the company for this offer (DRHP p.251).

As claimed: the domestic farm equipment market was ₹1,397 billion in FY26, according to the commissioned CARE report (DRHP p.256).

The part that is addressable: the implements market, which excludes tractors, was ₹440 billion in FY26, according to the commissioned CARE report (DRHP p.233). Organised makers held about 60% of it in FY26 (DRHP p.227).

What the company is today: FY26 revenue of ₹4,139.70 million is about 0.9% of that ₹440 billion implements market (our arithmetic, DRHP p.93, DRHP p.233). The CARE report places the company third among homegrown implement makers by FY26 revenue, with about 13% of the straw reaper market by value (DRHP p.251, DRHP p.252).

Demand depends on tractor ownership, cropping patterns and state subsidy schemes, and the crop residue scheme covers several of the company's products (DRHP p.256). The market projections in the report are CARE's and newboard has not tested them.

15Competitive position

Source: DRHP p.167; crore figures are our conversion of the document's ₹ million.

What the document points to: a product range spanning soil preparation to residue management, 12 distributors and 233 dealers at July 2026, a presence in 20 states, and plants that can make the whole range (DRHP p.253, DRHP p.160). The market-share figures it cites are from the commissioned CARE report (DRHP p.252). The document itself says there are no listed Indian peers with a comparable product portfolio (DRHP p.162).

16Peers the company named

Peers named in the offer document: VST Tillers Tractors Limited, Indo Farm Equipment Limited and Escorts Kubota Limited (DRHP p.162).

Source: DRHP p.162. The peers' average P/E is 28.10 (DRHP p.161).

Escorts Kubota's revenue is about 28 times the company's, and VST Tillers' about three times; Indo Farm Equipment is the closest in size (our arithmetic, DRHP p.162). All three make tractors or tillers rather than implements alone. The company's FY26 RoNW is shown as 44.54% in the peer table and 44.26% a page earlier (DRHP p.161, DRHP p.162). No P/E can be worked out for the company until a price band is set.

17Risks, in plain words

• Customers: one customer was 25.21% of FY26 revenue (DRHP p.41); losing it would remove a quarter of sales, and the next largest was 4.57% (DRHP p.267).
• Products: three products were 64.40% of FY26 revenue (DRHP p.32), so demand for straw and residue machines drives the result.
• Subsidies: many implements are sold under subsidy schemes funded about 60% by the Centre and 40% by the states (DRHP p.62); a cut in those schemes would reach demand directly.
• Seasonality: 37.88% of FY26 revenue came in the fourth quarter (DRHP p.41), so a poor season is concentrated in a few months.
• Working capital: inventory days reached 132 in FY26 (DRHP p.133) and operating cash flow was ₹26.85 million against ₹313.90 million of profit (DRHP p.94).
• Promoters: borrowings of ₹1,340.89 million rest on the promoters' personal guarantees (DRHP p.46), and both plants are on promoter land (DRHP p.271).
• Governance: two promoters sat on the board while listed as disqualified, a matter now before the authorities for compounding (DRHP p.43).
• Issue: the offer is made under Regulation 6(2), as the company does not meet the requirements of Regulation 6(1)(a) and 6(1)(c) (DRHP p.1); under that route not less than 75% of the offer is to be allocated to qualified institutional buyers (DRHP p.3).

18Litigation and regulatory matters

The document reports no criminal proceedings against the company, its subsidiary, promoters or directors (DRHP p.495, DRHP p.497). Of the GST demands, ₹2.14 million relates to Saron Mechanical Works I and would be borne by the company under the transfer agreement (DRHP p.499). Dues to micro and small enterprises were ₹424.14 million at March 2026 (DRHP p.500).

19Related-party transactions

Source: DRHP p.100. Other FY26 items: promoter pay of ₹60.00 million, lease rent of ₹1.79 million to Jagatjit Singh and Dharam Singh, loans of ₹55.00 million given to the two, and ₹51.50 million borrowed from and ₹97.75 million repaid to Jagatjit Singh (DRHP p.100).

What appeared and disappeared: before April 2025 the two proprietorships were the largest counterparties, with purchases from Saron Mechanical Works II of ₹419.46 million in FY25 (DRHP p.101). Those flows ended with the transfer. New in FY26: promoter pay, lease rent, loans to promoters, and larger purchases from Expert International, A.P.U Traders and G9 International, which were ₹16.79 million, ₹0.86 million and ₹1.30 million in FY25 (DRHP p.100).

20What the offer document does not say

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

• Revenue by product in units, so price and volume cannot be separated product by product.
• How much of revenue is sold under subsidy schemes, as a share of the total.
• Why the company gave loans of ₹55.00 million to two promoters in FY26, beyond listing them (DRHP p.100).
• The unit behind the post-expansion capacity figure of 33,000 (DRHP p.143).
• Terms with Seth Agro Industries, the customer behind a quarter of FY26 revenue.
• Financial statements of the subsidiary, which was incorporated after FY25 (DRHP p.306).
• The price band, lot size, issue dates or post-issue shareholding, which is normal at DRHP stage.

21Five questions for management

1. What share of FY26 revenue came from farmers buying under the SMAM or crop residue management subsidies?
2. What does Seth Agro Industries do with the products, and on what credit terms?
3. Why did inventory days reach 132 in FY26, and how much of the March 2026 finished goods came from the proprietorships?
4. On what terms were the ₹55.00 million of loans to promoters given, and when will they be repaid?
5. In what unit is the 33,000 post-expansion capacity stated, and what utilisation is needed to cover the new plant's depreciation?

1Sources and cited facts

This study was read from 1 document the company filed. The 134 figures it cites are listed under the document each came from, with the page and the sentence as printed.