Jai Parvati Forge Limited IPO

01At a glance

What the company does: forges alloy steel and machines the forgings into bull gears, transmission gears and shafts and precision machined parts for tractors, commercial vehicles and off-highway vehicles, from three plants at Dera Bassi, Punjab and a fourth at Solan, Himachal Pradesh (DRHP p.260, DRHP p.262).

Who pays it: vehicle and aggregate makers; the top ten customers include Mahindra & Mahindra Limited, International Tractors Limited, Ashok Leyland Limited, Carraro India Limited, Graziano Transmissioni India Private Limited and Escorts Kubota Limited, and were 79.19% of FY26 revenue (DRHP p.299). Tractors and agriculture equipment were 63.17% of FY26 product sales (DRHP p.39).

Why it is raising money: ₹1,250.00 million towards a ₹1,484.14 million expansion of machining capacity at Manufacturing Unit III, and ₹950.00 million to repay borrowings, with the balance for general corporate purposes (DRHP p.134).

How fast it has grown: revenue from ₹3,210.91 million in FY24 to ₹4,204.83 million in FY26, 14.44% a year, and profit after tax from ₹238.14 million to ₹412.17 million, 31.56% a year (DRHP p.56).

The one thing to understand: this is a family-controlled supplier to the tractor industry that has just bought a promoter's own business. With effect from April 1, 2026 it acquired D.S. Engineers, the sole proprietorship of promoter Suman Chauhan, which had been a customer taking ₹379.19 million, or 9.02% of FY26 revenue (DRHP p.100, DRHP p.321). Suman Chauhan is also the only shareholder selling in the offer (DRHP p.85).

02The business, in plain words

Jai Parvati Forge cuts alloy steel bars into billets, heats them above 1,050°C, forges them into rough shapes on presses and hammers, heat-treats them, and then machines, grinds and hardens them into finished gears and shafts ready for a customer's gearbox or axle (DRHP p.285, DRHP p.289, DRHP p.290). It can supply parts at any stage: raw forgings, rough or finished machined parts, or assembled sub-components (DRHP p.261).

A tractor maker needs a final-drive bull gear → orders it to drawing → Jai Parvati forges, heat-treats and machines it at Dera Bassi → the customer pays on credit of 30 to 90 days (DRHP p.35).

The company was incorporated in 2004 with 3,600 MT of forging capacity and entered machining in 2008 (DRHP p.319). It had 32,100 MT a year of installed forging capacity at March 2026 and about 3.26 million machined components a year after adding D.S. Engineers' plant (DRHP p.262). It offered and sold 719 SKUs in FY26 and had 1,082 full-time employees and 177 contract workers at March 2026 (DRHP p.263, DRHP p.305). Its bull-gear market share was 17.4% by value in FY26, according to the CRISIL report the company commissioned (DRHP p.261). Exports were ₹83.31 million, or 2.21% of product sales, in FY26 (DRHP p.268).

Earnings equation: Profit ≈ tonnes forged and components machined × realisation per piece − steel and forgings bought − power − labour − interest. In FY26 materials consumed were ₹2,287.96 million, employee costs ₹408.11 million and power and fuel ₹344.10 million against revenue of ₹4,204.83 million (DRHP p.90, DRHP p.304). The DRHP does not give realisation per tonne or per component.

03Where the money comes from

Source: DRHP p.265, DRHP p.266. By end use, FY26 product sales were tractors and agriculture equipment 63.17%, commercial vehicles 24.83%, off-highway vehicles 11.81% and industrial applications 0.20% (DRHP p.39, DRHP p.40). By state, Punjab was 31.42%, Maharashtra 17.40% and Haryana 14.17% (DRHP p.268).

Source: DRHP p.299. Revenue depends on a few customers: ten of 47 customers were 79.19% of FY26 revenue, though the share has fallen for three years (DRHP p.273, DRHP p.299). The DRHP does not name all of the top ten, citing consent and confidentiality (DRHP p.299). Sales to D.S. Engineers, the promoter's business acquired in April 2026, were ₹290.15 million, ₹417.19 million and ₹379.19 million in the three years (DRHP p.100). Read from the filing: sales into Himachal Pradesh, where the D.S. Engineers plant is, were also ₹379.19 million in FY26 (DRHP p.268).

04The growth record

Source: DRHP p.88, DRHP p.90, DRHP p.91, DRHP p.164; borrowings are current plus non-current borrowings, our arithmetic (DRHP p.88).

Our arithmetic: revenue grew about 14.4% a year from FY24 to FY26, EBITDA about 24.9% and profit after tax about 31.6%; EBITDA margin rose 290 basis points and PAT margin 238 basis points (DRHP p.90, DRHP p.164). Most of the growth came in FY26, when revenue rose 21.42% and profit 59.64% (DRHP p.56). The figures exclude D.S. Engineers; on the DRHP's pro forma basis, as if it had been acquired on April 1, 2025, FY26 revenue would have been ₹4,587.26 million and profit ₹434.56 million (DRHP p.96).

05What the growth is made of

Volume, from new forging capacity. Forged production rose from 16,667 MT in FY24 to 18,618 MT in FY25 and 25,270 MT in FY26, after Manufacturing Unit III began commercial production on June 8, 2024 (DRHP p.45, DRHP p.453, DRHP p.454). The company attributes FY26 revenue growth to higher sales volumes from capacity expansion and better utilisation, and FY25 growth to forging volumes and higher realisation (DRHP p.453, DRHP p.454). Sales of forgings rose from ₹505.03 million to ₹966.24 million over FY24 to FY26 (DRHP p.265, DRHP p.266).

The DRHP gives production in tonnes and pieces but not sales volumes or realisation, so the increase cannot be separated into volume and price. It credits the margin gain to a higher share of machined components (DRHP p.454), and gross margin rose from 43.26% to 47.01% (DRHP p.163). New customers added ₹147.18 million, or 3.91% of FY26 product sales (DRHP p.273).

06Earnings quality

What needs explaining is where the cash went. Operating cash flow over three years, ₹1,258.93 million, was matched by investing outflows of ₹1,239.00 million, mostly plant and machinery, so debt rose and cash stayed at ₹0.65 million at March 2026 (our arithmetic, DRHP p.91, DRHP p.92). Payables rose ₹139.26 million in FY26, which helped FY26 operating cash flow (DRHP p.91).

07The balance sheet

At March 31, 2026 current borrowings were ₹778.04 million and non-current borrowings ₹457.22 million, total ₹1,235.26 million, 0.60 times equity (DRHP p.424). Outstanding borrowings were ₹1,335.79 million at June 30, 2026, of which ₹98.28 million was unsecured from a non-banking finance company (DRHP p.425, DRHP p.56). Lease liabilities were ₹150.24 million (our arithmetic, DRHP p.88). Cash was ₹0.65 million and other bank balances ₹29.04 million (DRHP p.88). The contingent liability is an export obligation of ₹88.12 million under the EPCG scheme (DRHP p.98).

The promoters have personally guaranteed ₹1,210.44 million, 90.62% of June 2026 borrowings (DRHP p.56); elsewhere the DRHP gives ₹624.93 million at March 2026 (DRHP p.346). Net debt was about 1.6 times FY26 EBITDA (our arithmetic, DRHP p.88, DRHP p.164).

After the issue, where the arithmetic is available: ₹950.00 million of the June 2026 borrowings of ₹1,335.79 million is to be repaid, leaving about ₹385.79 million if nothing else changes, and the gross fresh issue of ₹3,000.00 million would add to net worth of ₹2,054.38 million before issue expenses (our arithmetic, DRHP p.147, DRHP p.88).

08What the money is for

Source: DRHP p.134; percentages are our arithmetic against the gross fresh issue.

Machining expansion: the project costs ₹1,484.14 million, of which ₹61.37 million for land is already paid and ₹172.77 million will come from internal accruals; it covers ₹253.88 million of civil work, ₹1,088.18 million of plant and machinery, ₹39.28 million of utilities and ₹41.44 million of contingencies (DRHP p.138, DRHP p.139). It adds 624,000 gears and shafts and 348,000 precision machined parts a year, with commercial production scheduled for April 2028 (DRHP p.138, DRHP p.146). No orders have been placed and the pollution board's Consent to Establish, applied for on August 10, 2026, is pending (DRHP p.145, DRHP p.147).

Repayment: ₹950.00 million, 71.11% of borrowings at June 30, 2026, to be spent in FY27 (DRHP p.147).

Into the business up to ₹3,000.00 million (fresh issue) (DRHP p.85). To selling shareholders 9,000,000 shares by Suman Chauhan; the amount depends on a price not yet set (DRHP p.85).

A pre-IPO placement of up to 20% of the fresh issue may be made before the RHP, reducing the fresh issue (DRHP p.85). A monitoring agency will be appointed (DRHP p.155).

09Who is selling

Source: DRHP p.125, DRHP p.133; the percentage is our arithmetic. The shares offered are 12.2% of the 73,500,000 shares outstanding (our arithmetic, DRHP p.85). The weighted average cost of acquisition of the selling shareholder is ₹0.61 a share (DRHP p.1).

10Promoters

The promoters are Sahender Singh Chauhan, 61, Executive Chairman and Whole-Time Director and a director since incorporation; Suman Chauhan, 57, sole proprietor of D.S. Engineers for 28 years; and Vineet Chauhan, 41, Managing Director and a director since 2007 (DRHP p.345, DRHP p.326). The DRHP states that Suman Chauhan is the spouse of Sahender Singh Chauhan and that Vineet Chauhan is their son (DRHP p.348). Sahender Singh Chauhan is a politically exposed person, a former member of the Uttar Pradesh Legislative Assembly from 2017 to 2022 (DRHP p.61).

FY26 remuneration was ₹11.36 million for Sahender Singh Chauhan and ₹8.00 million for Vineet Chauhan (DRHP p.329). In July 2026 the board and shareholders waived recovery of up to ₹2.01 million paid to Sahender Singh Chauhan as life insurance premiums above the approved limit (DRHP p.328). No promoter shares are pledged (DRHP p.120). Promoter group entities are Jai Parvati Educational and Charitable Trust, Jai Parvati Social Welfare Society, Jai Parwati Suksham Foundation, Y S Autotech and Master Farm Resorts (DRHP p.348). The company has no group company (DRHP p.349).

Promoter economics: average cost per share is ₹0.31 for Sahender Singh Chauhan, ₹0.61 for Suman Chauhan and ₹0.19 for Vineet Chauhan (DRHP p.127). Shares were issued at ₹10 face value up to 2010, followed by a one-for-one bonus in 2008, a two-for-one bonus in February 2025 and a split from ₹10 to ₹2 in February 2026 (DRHP p.114, DRHP p.115, DRHP p.116). In the last three years the only priced transfers were at ₹0.97 and ₹22.40 a share after the split (DRHP p.126).

11Who already owns it

Source: DRHP p.125, DRHP p.130. Promoters hold 88.32% and the promoter group 11.68%; the company has seven shareholders and no institutional or private equity holder (DRHP p.125, DRHP p.131). Dharmender acquired 1,035,000 shares of ₹10 from Subey Singh on October 3, 2025 at ₹4.83 each, ₹0.97 after the split (DRHP p.128, DRHP p.170). Satish Kumar Sharma acquired 100 shares from Sahender Singh Chauhan at ₹112 each on October 17, 2025 (DRHP p.128). The holding after the issue depends on the price and is left blank (DRHP p.125).

12What changed just before the IPO

• The statutory auditor changed: N K Associates resigned on September 1, 2024 for not being peer-reviewed, and Ashwani K Gupta and Associates was appointed on September 30, 2024 (DRHP p.106).
• Manufacturing Unit III began commercial production on June 8, 2024 (DRHP p.45).
• A two-for-one bonus issue on February 28, 2025, and a split from ₹10 to ₹2 face value approved on February 16, 2026 (DRHP p.115, DRHP p.116).
• Board changes: Smriti Sindhu Chauhan became a Whole-Time Director on September 27, 2025, two independent directors joined in September and October 2025, and Vineet Chauhan became Managing Director on February 1, 2026 (DRHP p.331).
• D.S. Engineers, the promoter's proprietorship, was acquired with effect from April 1, 2026 for ₹65.40 million, and its land and building by a sale deed of January 19, 2026 for ₹30.60 million (DRHP p.321).
• The board identified the three promoters by resolution on April 27, 2026 (DRHP p.346).
• FY26 revenue rose 21.42% and profit 59.64% (DRHP p.56).
• Interest on leases fell from ₹24.72 million to ₹12.41 million after leased machinery was purchased (DRHP p.453).
• Key managerial personnel attrition was 60.00% in FY26 (DRHP p.305).

13Capacity and expansion

Source: DRHP p.297, DRHP p.298, DRHP p.137, DRHP p.146. Unit IV was run by D.S. Engineers in FY26 (DRHP p.298). The forging press lines are ordered and are not among the issue's objects (DRHP p.137). Machines added in FY26 and put to use on April 1, 2026 raised bull-gear capacity to 418,080 and gears and shafts to 806,832 pieces (DRHP p.137).

The issue-funded expansion raises gears and shafts capacity by 77.34% and precision machined parts by 17.09% over April 2026 levels (DRHP p.138). Installed capacity assumes 300 working days of three shifts (DRHP p.297).

14Market size and industry structure

As claimed: the Indian automotive forging industry was ₹311 billion in FY26, up from ₹185 billion in FY21, according to the "Gears, Shafts and Precision Components Industry Report" of September 2026 by CRISIL, commissioned and paid for by the company for the offer (DRHP p.224, DRHP p.29).

The part that is addressable: the same commissioned CRISIL report puts the company's core markets, transmission gears and shafts, tractor reduction drives, hydraulic components and 4WD axle components, at about ₹64 billion in FY26 (DRHP p.136). CRISIL projects ₹103 to 110 billion by FY2031; that projection is CRISIL's and newboard has not tested it (DRHP p.136).

What the company is today: FY26 revenue of ₹4,204.83 million is about 6.6% of the ₹64 billion figure (our arithmetic, DRHP p.90, DRHP p.136); this is a ratio, not a market share, because the revenue includes forgings sold outside those markets. The commissioned report gives the company 17.4% of the bull-gear market by value (DRHP p.261).

Structure: the commissioned report cites entry barriers of capital cost, long OEM approval cycles and switching costs (DRHP p.274). The company says utilisation of 70% to 100% compares with a forging industry average of about 60% (DRHP p.274). Tractor demand is seasonal (DRHP p.60).

15Competitive position

Source: DRHP p.167, DRHP p.168. The DRHP also names Bharat Forge Limited as a competitor (DRHP p.305).

Why customers purchase from this company, as the DRHP puts it: long relationships, with the top five customers associated for an average 18.50 years; an in-house chain from forging to finished part across more than 300 machines; and IATF 16949 certification (DRHP p.273, DRHP p.272, DRHP p.261). The company has applied for, but does not yet hold, a registered trademark (DRHP p.303).

16Peers the company named

Peers named in the offer document: Happy Forgings Limited, Ramkrishna Forgings Limited, MM Forgings Limited and RACL Geartech Limited (DRHP p.161).

Source: DRHP p.161; peer P/E at NSE prices of August 25, 2026, average 79.18 (DRHP p.159). Ramkrishna Forgings' revenue is about ten times the company's, Happy Forgings' and MM Forgings' about 3.7 to 3.8 times, and RACL Geartech's about 1.2 times (our arithmetic, DRHP p.161). Ramkrishna Forgings' P/E sits on a PAT margin of 1.69% (DRHP p.167). No P/E is possible for the company until a price band is set.

17Risks, in plain words

Customers: ten customers were 79.19% of FY26 revenue (DRHP p.299) → losing one large programme would cut revenue quickly → the largest customer alone was 19.37% (DRHP p.299).

One industry: tractors and agriculture equipment were 63.17% of FY26 product sales and the automotive sector 99.80% (DRHP p.39, DRHP p.40) → a poor monsoon or tractor downturn reaches most of the business → non-automotive sales were ₹7.36 million (DRHP p.40).

Suppliers: the top supplier provided 45.38% of FY26 raw material purchases and the top ten 88.01%, without long-term contracts (DRHP p.299, DRHP p.300, DRHP p.31) → steel prices and supply pass straight into cost → materials were 54.21% of total income (DRHP p.452).

Promoters and related parties: the company bought the promoter's business, which was also a customer (DRHP p.321) → pricing between the two was set by related parties → the acquisition was valued at ₹65.40 million on net asset value by the company's own statutory auditor (DRHP p.321).

Financial: debt was ₹1,335.79 million at June 2026, 90.62% of it guaranteed by the promoters (DRHP p.56) → lenders' consent is needed for changes in control and management (DRHP p.426) → ₹950.00 million is to be repaid from the issue (DRHP p.147).

Project: the expansion's Consent to Establish is pending and no machinery orders are placed (DRHP p.38, DRHP p.145) → delays push out the added capacity → commercial production is scheduled for April 2028 (DRHP p.146).

Legal and compliance: RoC penalties of ₹0.50 million on the company and ₹0.15 million on Vineet Chauhan for past lapses; a return of allotment for 2010 cannot be traced; statutory dues were paid late on several occasions (DRHP p.466, DRHP p.116, DRHP p.64).

Issue-specific: 9,000,000 shares go to a promoter, not the company (DRHP p.85), and general corporate purposes are not yet quantified (DRHP p.134).

18Litigation and regulatory matters

There are no criminal proceedings involving the company, promoters or directors, and no material civil cases against them (DRHP p.466, DRHP p.467). The land acquisition collector had awarded about ₹30.57 million for the land (DRHP p.466). Dues to three material creditors were ₹181.74 million at March 2026 (DRHP p.469).

19Related-party transactions

Source: DRHP p.100, DRHP p.101. Vineet Chauhan lent the company ₹15.00 million in FY24 (DRHP p.101). What changed: D.S. Engineers, the largest related-party counterparty, became part of the company from April 1, 2026 under a slump sale agreement of January 16, 2026 and an addendum of June 20, 2026, so those sales end (DRHP p.321). Suman Chauhan disassociated from D.S. Engineers on March 31, 2026 (DRHP p.347).

20What the offer document does not say

• The price band, lot size, issue dates and the share count after the issue, which is normal at DRHP stage.
• The amount for general corporate purposes and the issue expenses, left blank (DRHP p.134, DRHP p.152).
• Realisation per tonne or per component, so growth cannot be split into volume and price.
• The names of all top ten customers and of any supplier (DRHP p.299, DRHP p.300).
• Whether the ₹30.60 million land and building price is within the ₹65.40 million consideration for D.S. Engineers; the DRHP describes both without saying (DRHP p.321, DRHP p.346).
• A single figure for machined output in FY25: one page gives 1,330,616 units and another 1,612,616 units (DRHP p.453, DRHP p.454).
• A single figure for promoter guarantees: ₹624.93 million at March 2026 on one page, ₹1,210.44 million at June 2026 on another (DRHP p.346, DRHP p.56).
• Matching profit before tax: ₹545.17 million in the FY26 profit and loss statement against ₹543.97 million in the cash flow statement (DRHP p.90, DRHP p.91).
• The capacity footnote refers to the practice of the "Indian industrial gases industry", not forging (DRHP p.297).

21Five questions for management

1. What was the average realisation per tonne of forgings and per machined component in FY24, FY25 and FY26, and how much of FY26's 21.42% growth came from price?
2. On what terms did the company supply ₹379.19 million of products to D.S. Engineers in FY26, and what did D.S. Engineers do with those parts?
3. Is the ₹30.60 million paid for the Solan land and building part of the ₹65.40 million consideration, or in addition to it?
4. What utilisation must the new Unit III machining lines reach to cover their own depreciation and interest?
5. Which customers make up the four unnamed members of the FY26 top ten, and what share of revenue do they carry?

1Sources and cited facts

This study was read from 1 document the company filed. The 111 figures it cites are listed under the document each came from, with the page and the sentence as printed.