Kataline Limited IPO

01At a glance

What the company does: manufactures road marking materials (hot-applied thermoplastics, cold-applied plastics, water and solvent based paints) and road safety components such as studs and glass beads at one plant at Mouza Shirpur, Nagpur, and applies them on roads, expressways and airports through its own project teams; hot-applied thermoplastics were 84.82% of FY26 revenue (DRHP p.34, DRHP p.183, AP p.4).

Who pays it: distributors, road contractors and EPC contractors working on government-funded road projects. FY26's top ten customers, 50.49% of revenue, include Deepak Trading Corporation, KMGS Road Signs Private Limited, O K Plus Enterprises, Polymer Coatingss and Vasuuma Road Safety Products; the other five are not named for want of consent (DRHP p.35). Sales to distributors were 49.39% of FY26 revenue (DRHP p.37).

Why it is raising money: ₹7,000.00 lakh for working capital, ₹2,804.60 lakh to upgrade the Nagpur plant and ₹901.78 lakh for Borum road marking machines and the trucks to carry them, plus general corporate purposes capped at 25% of the gross proceeds (DRHP p.113). The offer for sale proceeds go to the two selling promoters, not the company (DRHP p.112).

How fast it has grown: revenue from ₹15,627.91 lakh in FY24 to ₹22,058.02 lakh in FY26, about 18.8% a year, and profit after tax from ₹1,755.99 lakh to ₹2,682.84 lakh, about 23.6% a year (our arithmetic, DRHP p.85). Almost all of it came in one year: revenue rose 1.70% in FY25 and 38.79% in FY26 (DRHP p.132).

The one thing to understand: the FY26 jump came with little cash. Revenue rose ₹6,164.81 lakh in FY26, about half of it from project services, which went from ₹3,402.98 lakh to ₹6,556.90 lakh (DRHP p.337). Operating cash flow was ₹19.64 lakh that year, after trade receivables rose ₹2,259.52 lakh and inventories ₹1,047.04 lakh (DRHP p.86).

02The business, in plain words

Lines, arrows and rumble strips on a highway are not ordinary paint. Most are thermoplastic: a dry powder of resin, pigment, filler and glass beads that is melted on site and laid hot so it sets thick, reflective and hard-wearing. Kataline makes that powder in Nagpur, along with two-component cold plastics, paints for kerbs and airports, and road studs, and either ships it to a distributor or sends its own crew and machines to lay it (DRHP p.185, DRHP p.186).

A road contractor or a distributor orders marking material, or awards a marking job on a highway contract → the company blends thermoplastic and mixes paints at its Nagpur plant → it ships the material ex-works, or its project team applies it on site with specialised machines → it is paid per purchase order for material, and in stages linked to milestones for project work.

Sources for the chain: purchase orders without long-term agreements (DRHP p.39), sales mostly ex-works (DRHP p.46), project payments in milestone stages (DRHP p.115).

Products were ₹15,501.12 lakh, 70.27% of FY26 revenue, and project execution services ₹6,556.90 lakh, 29.73% (DRHP p.36). Project work is won either by bidding directly in government tenders or as a subcontractor to EPC contractors who have won a road project; the company says it completed over 60 projects of more than ₹50.00 lakh each in the last three years, on corridors including the Samruddhi Mahamarg, the Delhi-Vadodara Expressway and the Purvanchal Expressway (DRHP p.190, DRHP p.189). The project team had 29 employees at March 31, 2026, and the company had 145 permanent employees and 216 contract labourers (DRHP p.186, DRHP p.58).

It holds exclusive rights in India to market and deploy Borum A/S road marking machines from Denmark, an exclusive supply arrangement with Swarovski for glass beads, and a technical collaboration with Tpaint B.V. (DRHP p.188). Raw materials are largely imported, from China, Austria and Hong Kong among others (DRHP p.42).

Earnings equation: Revenue ≈ tonnes of marking material sold × price per tonne + square metres of marking applied × contract rate. The document gives production, 35,696 tonnes of thermoplastic and cold plastic and 4,61,900 litres of paint in FY26 (DRHP p.51), but not tonnes sold, price per tonne or area applied.

03Where the money comes from

Source: DRHP p.34. These product lines include both material sold and material applied by the company's crews. By region, Western India, mainly Maharashtra and Gujarat, rose from 32.45% of revenue in FY24 to 44.05% in FY26, and exports fell from ₹506.22 lakh to ₹66.87 lakh (DRHP p.44). Project services in the West went from ₹626.51 lakh in FY25 to ₹3,065.00 lakh in FY26 (DRHP p.208). Sales to distributors were 38.30%, 47.92% and 49.39% of revenue in the three years (DRHP p.37).

Source: DRHP p.35, AP p.4. Customers here include distributors, and the names change year to year (DRHP p.35). Revenue is spread more widely than at many issuers of this size, but the share of the top ten has risen each year, to about half of FY26 revenue. Repeat customers, those who bought in the year before as well, were 86.37% of FY26 revenue (DRHP p.41). On the supply side, the largest supplier was 26.49% of FY26 purchases and the top ten 63.23%; imports were 66.02% of raw materials consumed (DRHP p.42).

04The growth record

Source: DRHP p.85, DRHP p.86, DRHP p.132, DRHP p.133, DRHP p.56.

Our arithmetic over FY24 to FY26: revenue grew about 18.8% a year (our arithmetic, DRHP p.85), EBITDA about 23.7% a year (our arithmetic, DRHP p.132) and profit after tax about 23.6% a year (our arithmetic, DRHP p.85). EBITDA margin moved from 15.2% to 16.4%, up 127 basis points (DRHP p.132). In crore, revenue went from ₹156.3 crore to ₹220.6 crore and profit after tax from ₹17.6 crore to ₹26.8 crore (DRHP p.85).

Operating cash flow was ₹19.64 lakh in FY26, about ₹0.2 crore, against ₹1,487.49 lakh in FY24 (DRHP p.86). Other income of ₹342.11 lakh was 9.7% of FY26 profit before tax of ₹3,518.46 lakh (our arithmetic, DRHP p.85); ₹269.98 lakh of it, about ₹2.7 crore, was a write-back of the allowance for doubtful debts (DRHP p.296).

Total borrowings were ₹92.01 lakh at March 2026, about ₹0.9 crore, including lease liabilities, and debt to equity was 0.01 (DRHP p.56). By August 31, 2026 borrowings had risen to ₹1,482.45 lakh, about ₹14.8 crore, against a ₹4,800.00 lakh sanction (DRHP p.348). Return on capital employed was 34.9% in FY26 (DRHP p.133). Net working capital was 133 days of revenue in FY26 (DRHP p.117).

Related-party transactions were ₹1,117.79 lakh in FY26, about ₹11.2 crore, 5.07% of revenue (DRHP p.55). Contingent liabilities were ₹492.00 lakh at March 2026, about ₹4.9 crore (DRHP p.88).

FY24 revenue was itself 4.26% below FY23, according to the company-commissioned industry report (DRHP p.180). The year end is March 31 throughout. Ind AS figures start from a transition date of April 1, 2023, with earlier Indian GAAP accounts restated (DRHP p.272). FY26 is consolidated and includes Kataline Australia Pty Ltd, which had not begun business (DRHP p.262, DRHP p.233). All of these figures come from one line of business, the manufacture and application of road marking materials (DRHP p.183).

05What the growth is made of

Revenue rose ₹6,164.81 lakh in FY26, after a ₹265.30 lakh rise in FY25 (DRHP p.337, our arithmetic, DRHP p.85). In FY26, product sales added ₹3,010.89 lakh, up 24.11%, and project services ₹3,153.92 lakh, up 92.68% (DRHP p.337). Of the services increase, ₹2,438.49 lakh came from Western India (our arithmetic, DRHP p.208). Hot-applied thermoplastics alone rose ₹5,516.07 lakh in FY26 (our arithmetic, DRHP p.34).

Volume is partly visible. Production of thermoplastic and cold plastic rose from 28,615 tonnes in FY24 to 35,696 tonnes in FY26, about 24.7%, while revenue rose about 41.1% over the same two years (our arithmetic, DRHP p.51, DRHP p.85). Production is not sales, and the document gives no tonnes sold or price per tonne, so the increase cannot be separated into volume and price. That is the finding.

Cost moved with the mix: labour and job work charges, the cost of applying material on site, rose from ₹725.44 lakh in FY25 to ₹2,025.48 lakh in FY26 (DRHP p.338), and gross margin fell from 35.58% to 31.26% (DRHP p.132). Director remuneration fell in FY26, which the company names as the reason employee costs declined (DRHP p.338).

06Earnings quality

The item that needs explaining is cash. Over three years the company reported ₹6,103.64 lakh of profit and generated ₹1,880.96 lakh of operating cash (our arithmetic, DRHP p.85, DRHP p.86). In FY26, ₹3,824.62 lakh of operating profit before working capital became ₹912.65 lakh of cash from operations, and ₹893.01 lakh of tax was paid (DRHP p.86). Inventory went from ₹980.50 lakh in FY24 to ₹3,709.43 lakh in FY26, which the company links to stocking 15 new warehouses (DRHP p.84, DRHP p.117).

The doubtful-debt allowance fell from ₹411.19 lakh to ₹141.21 lakh in FY26, and the ₹269.98 lakh released was booked as other income (DRHP p.289, DRHP p.296). In the same year a ₹239.14 lakh receivable from Kataline Construction Technologies Private Limited, a promoter group company, which had sat unpaid at March 2024 and March 2025, was converted into a ₹229.14 lakh loan at 8%, repayable in one payment two years after March 31, 2026 (DRHP p.289, DRHP p.287). Receivables more than a year past due were ₹353.07 lakh at March 2026 (DRHP p.39).

07The balance sheet

At March 31, 2026 total assets were ₹15,330.73 lakh: trade receivables ₹7,353.58 lakh current and ₹342.34 lakh non-current, inventories ₹3,709.43 lakh, property, plant and equipment ₹2,827.28 lakh, other financial assets ₹455.17 lakh and cash ₹13.33 lakh (DRHP p.84; other financial assets is our arithmetic). Against that: borrowings of ₹40.98 lakh, lease liabilities of ₹51.03 lakh, trade payables of ₹3,003.02 lakh and net worth of ₹11,553.84 lakh (DRHP p.84, our arithmetic for leases). Cash fell from ₹743.97 lakh a year earlier (DRHP p.87).

By August 31, 2026 borrowings were ₹1,482.45 lakh: ₹734.80 lakh of cash credit, ₹479.26 lakh of bank guarantees, ₹229.33 lakh of usance letters of credit and ₹39.06 lakh of foreign letters of credit, all secured within a ₹4,800.00 lakh HDFC Bank limit (DRHP p.348). The mortgage deed for that facility has not yet been executed by the bank, so the charge is not registered (DRHP p.47).

Amit Arvind Thatte, Ketaki Amit Thatte and Kataline Construction Technologies Private Limited guarantee it and have given property as security (DRHP p.65). Contingent liabilities were ₹400.69 lakh of guarantees and ₹91.31 lakh of income tax, and capital commitments ₹1,038.12 lakh (DRHP p.342). Insurance cover was ₹10,927.07 lakh, 72.20% of net assets (DRHP p.50).

After the issue, as far as the arithmetic goes: none of the fresh issue repays debt (DRHP p.113). Net worth would rise by the fresh issue less its share of expenses, but the issue amount and expenses are blank at this stage, so the figure cannot be stated (DRHP p.112). The share count after the issue would be up to 3,17,05,000 if all 43,00,000 fresh shares are issued (our arithmetic, DRHP p.81).

08What the money is for

Source: DRHP p.113; the percentages are our arithmetic on the ₹10,706.38 lakh of named objects, because the fresh issue amount is blank. Working capital is to be spent ₹2,500.00 lakh in FY27 and ₹4,500.00 lakh in FY28, on a plan that keeps receivables at 122 days and inventory at 103 days (DRHP p.113, DRHP p.117). The company also plans ₹2,000.00 lakh and ₹3,000.00 lakh of short-term borrowing in those years (DRHP p.116).

The plant upgrade is ₹606.71 lakh for an automated liquid paint line and its shed, ₹852.63 lakh for a research and product development unit with testing equipment, and ₹1,345.26 lakh for a storage shed and site works, on land the company already owns (DRHP p.120, DRHP p.119). It is to be spent ₹500.00 lakh in FY27 and ₹2,304.60 lakh in FY28 (DRHP p.113). The Borum object is five road marking machines at ₹607.10 lakh plus fifteen trucks and recovery vans, all in FY28 (DRHP p.125, DRHP p.113). The document gives no added production capacity for the upgrade.

No orders have been placed and there are no definitive agreements; costs rest on quotations, and the objects have not been appraised by any bank (DRHP p.57, DRHP p.95). The company may also place up to 6,70,000 shares before the red herring prospectus, which would reduce the fresh issue (DRHP p.81).

Into the business up to 43,00,000 new shares, the fresh issue; the rupee amount is left blank until the price is set (DRHP p.81). To selling shareholders up to 43,00,000 existing shares, the offer for sale, sold by two promoters (DRHP p.81).

09Who is selling

Source: DRHP p.82 for the shares offered and DRHP p.103 for holdings; the last column is our arithmetic. The offer is up to 86,00,000 shares: a fresh issue of up to 43,00,000 shares and an offer for sale of up to 43,00,000 shares (DRHP p.81). Half the offer, by share count, goes to the two selling promoters (our arithmetic, DRHP p.81). Both selling promoters have a weighted average cost of ₹0.34 a share (DRHP p.1). The rupee amounts will be fixed with the price (DRHP p.82).

10Promoters

The promoters are Amit Arvind Thatte, aged 51, Chairman and Managing Director; Ketaki Amit Thatte, aged 50, Whole-time Director; and Abhishek Amit Thatte, aged 23, Whole-time Director (DRHP p.255, DRHP p.256). The document states that Ketaki Amit Thatte is the spouse of Amit Arvind Thatte and that Abhishek Amit Thatte is their son (DRHP p.240). Amit Arvind Thatte and Ketaki Amit Thatte have been with the company since incorporation in 2008; Abhishek Amit Thatte joined on September 30, 2024 with two years of experience (DRHP p.239). Together the promoters and promoter group hold 100.00% before the offer (DRHP p.107).

Pay: Amit Arvind Thatte's terms from August 26, 2025 set a basic salary of ₹540.00 lakh a year, and Ketaki Amit Thatte's ₹180.00 lakh (DRHP p.241). Paid remuneration was ₹540.00 lakh and ₹180.00 lakh in FY24, and ₹360.00 lakh, ₹120.00 lakh and ₹18.00 lakh to Abhishek Amit Thatte in FY26 (DRHP p.89). Together that is ₹720.00 lakh in FY24 and ₹498.00 lakh in FY26, about ₹7.2 crore and ₹5.0 crore (our arithmetic, DRHP p.89). Niharika Amit Thatte, stated to be their daughter, and Prajakta Rahul Shingwekar, stated to be the sister of Ketaki Amit Thatte, are employed by the company (DRHP p.257).

Other businesses and deals with the company: the promoter group includes Kataline Construction Technologies Private Limited, Amit Arvind Thatte HUF and Ayodhya Hill Road LLP (DRHP p.259). The company bought the land under part of its plant from Amit Arvind Thatte for ₹300.00 lakh, about ₹3.0 crore, by a sale deed of June 30, 2025 (DRHP p.60). It bought 25 trademarks from Amit Arvind Thatte for ₹25.00 lakh and the "KATALINE" mark from Kataline Construction Technologies Private Limited for ₹1.65 lakh on February 6, 2026 (DRHP p.234). The ₹229.14 lakh loan to Kataline Construction Technologies Private Limited is described in section 05 (DRHP p.287).

Pledges and cases: no promoter share is pledged (DRHP p.107). There are no criminal, regulatory or material civil cases against the promoters; there are five direct tax proceedings involving ₹6.33 lakh (DRHP p.352, DRHP p.355). Ketaki Amit Thatte has an appeal pending in the Bombay High Court in a 2013 cheque-dishonour case for ₹3.60 lakh (DRHP p.353). No SEBI or exchange action has been taken against them, and no company they are associated with has been delisted or suspended (DRHP p.258).

Promoter economics: Amit Arvind Thatte and Ketaki Amit Thatte subscribed 500 shares each at ₹100 in 2008, took 12,000 shares each at ₹100 in March 2012, and Amit Arvind Thatte 69,500 more at ₹100 in March 2014 (DRHP p.101). Each ₹100 share was split into ten ₹10 shares on October 28, 2024, and a bonus of 28 shares for each share followed on March 24, 2025 (DRHP p.101).

In June 2025 Amit Arvind Thatte gifted 100 shares each to Abhishek Amit Thatte and Niharika Amit Thatte and sold 100 shares each to three individuals at ₹40 (DRHP p.106). The weighted average cost of the two selling promoters is ₹0.34 a share (DRHP p.104).

11Who already owns it

Source: DRHP p.105, DRHP p.107. The company has seven shareholders and no employee stock options (DRHP p.104, DRHP p.102). The three public holders, Deepjee Ambrishjee Singhal, Shubhangi Rajesh Shah and Nikita Amarkumar Shah, bought 100 shares each from Amit Arvind Thatte at ₹40 on June 6, 2025 (DRHP p.136). No fund, institution or company other than the promoters holds 1% or more (DRHP p.103). There has been no allotment for cash since March 2014 (DRHP p.101).

After the offer, if all 43,00,000 fresh shares are issued and both promoters part with all the shares offered, the promoters and promoter group would hold about 72.9%, against 100.00% today (our arithmetic, DRHP p.107). The final figure depends on the price and on any pre-IPO placement (DRHP p.105).

12What changed just before the IPO

• Growth arrived in one year. Revenue went from ₹156.3 crore in FY24 to ₹220.6 crore in FY26 and profit after tax from ₹17.6 crore to ₹26.8 crore, with FY25 revenue up only 1.70% (DRHP p.85, DRHP p.132).
• Project services doubled in FY26, from ₹3,402.98 lakh to ₹6,556.90 lakh, and Western India rose from 33.77% to 44.05% of revenue (DRHP p.337, DRHP p.44).
• Concentration: in FY26 the largest customer was 13.3% of revenue, the top five 33.8% and the top ten 50.5%, against 9.69%, 27.79% and 43.61% in FY24 (DRHP p.35). Hot-applied thermoplastics were 84.8% of FY26 revenue (DRHP p.34), sales to distributors 49.4% (DRHP p.37), and imports 66.0% of raw materials consumed (DRHP p.41).
• Receivables lengthened from 108 days to 127 days over FY24 to FY26 (DRHP p.48).
• Promoter pay fell from about ₹7.2 crore in FY24 to about ₹5.0 crore in FY26 (our arithmetic, DRHP p.89).
• A share split turned each ₹100 share into ten ₹10 shares on October 28, 2024 (DRHP p.101).
• A bonus of 28:1 was allotted on March 24, 2025; it is the last allotment before the IPO, and the last allotment for cash was at ₹100 a ₹100 share in March 2014 (DRHP p.101).
• No pre-IPO placement has been made; up to 6,70,000 shares may be placed before the red herring prospectus (DRHP p.81).
• The auditor changed: B P S D & Associates left on completion of its tenure and C. N. Patel & Co. LLP was appointed on September 30, 2024 for five years (DRHP p.93).
• The company became public: converted to a public company with a certificate dated June 20, 2025, and renamed from Kataline Infra-Products Limited to Kataline Limited on August 1, 2025 (DRHP p.230).
• A subsidiary was set up: Kataline Australia Pty Ltd, registered February 13, 2025, with AUD 100 of capital and no business yet (DRHP p.233).
• Assets moved in from the promoters: land from Amit Arvind Thatte for ₹3.0 crore in June 2025 (DRHP p.60), and trademarks from Amit Arvind Thatte and Kataline Construction Technologies Private Limited in February 2026 (DRHP p.234).
• A related-party receivable became a loan: ₹2.3 crore to Kataline Construction Technologies Private Limited at 8%, repayable after two years (DRHP p.287).
• A doubtful-debt write-back of ₹2.7 crore went into FY26 other income (DRHP p.296).
• Worth reading in the figures: operating cash flow of ₹0.2 crore in FY26 (DRHP p.86), other income at 9.7% of profit before tax (our arithmetic, DRHP p.85), related-party transactions of ₹11.2 crore (DRHP p.55), contingent liabilities of ₹4.9 crore (DRHP p.88), working capital of 133 days (DRHP p.117), and five tax proceedings against the promoters involving ₹6.33 lakh, about ₹0.1 crore (DRHP p.355).
• New board and officers: three independent directors joined in June and July 2025, the three promoters were designated executive directors on August 26, 2025, and a CFO and a company secretary are on the payroll from FY26 and FY25 (DRHP p.244, DRHP p.89).
• Borrowing rose from ₹40.98 lakh at March 2026 to ₹1,482.45 lakh at August 2026 (DRHP p.84, DRHP p.348).
• A compliance lapse is being compounded: the company did not spend the required CSR amount from 2018 to 2025 and filed for compounding on September 29, 2026 (DRHP p.47).

13Capacity and expansion

Source: DRHP p.51, DRHP p.113, DRHP p.125; utilisation is certified by an independent chartered engineer and measured against available capacity of 90,000 MTPA and 7,80,000 litres, which assumes 300 days of one eight-hour shift at 75% efficiency (DRHP p.51, DRHP p.52). Cold plastic and paint share one line, so their capacities cannot be used at the same time (DRHP p.51).

Thermoplastic utilisation was 31.79% in FY24 and 39.66% in FY26 (DRHP p.51). The issue-funded upgrade is described as automation, research and storage, and the document does not state how much production capacity it adds (DRHP p.118). The chain from capacity to revenue is not drawn in the document, and the company itself says there have been instances of material under-utilisation in the last three years (DRHP p.52).

14Market size and industry structure

As claimed: the industry report is CAREEdge's "Research Report on Road Safety Marking Sector", September 2026, commissioned and paid for by the company for the offer (DRHP p.33). It puts the Indian road-marking paint market at ₹2,931.3 crore in CY25, up from ₹1,760.5 crore in CY19, with paint-based markings at ₹1,009.25 crore and performance-based markings at ₹1,832.09 crore (DRHP p.167, AP p.5). It puts government spending on road safety improvement at ₹400.0 crore in FY27, against ₹213.6 crore in FY23 (DRHP p.158).

The part that is addressable: road marking materials and their application in India, which is the market above; exports were 0.30% of FY26 revenue (DRHP p.44). The document does not size the application services market separately.

What the company is today: FY26 revenue of ₹220.6 crore against a CY25 road-marking market of ₹2,931.3 crore, about 7.5%, though the years and definitions do not match exactly (our arithmetic, DRHP p.85, DRHP p.167). The company-commissioned report calls it the largest company in India providing end-to-end traffic safety project execution services, by FY25 service revenue (DRHP p.183).

On structure, the commissioned report describes the industry as relatively fragmented and unorganised (DRHP p.173). Demand depends on highway and road construction and maintenance, much of it funded by government and awarded through EPC contractors, and slows in the monsoon (DRHP p.38, DRHP p.63). Raw materials are largely imported, so currency and freight move costs; the company has no formal hedging policy (DRHP p.41, DRHP p.59).

15Competitive position

Source: the company-commissioned CAREEdge report as reproduced at DRHP p.180 and DRHP p.181. Both are unlisted; FY26 figures for them are not given, and the table carries no borrowings. Asian Paints PPG's road marking product sales were ₹9,207.29 lakh in FY25, against Kataline's product sales of ₹12,490.23 lakh (DRHP p.180).

What the company puts forward: manufacturing and application under one roof, a NABL-accredited laboratory, exclusive rights to Borum machines in India, an exclusive Swarovski glass bead arrangement, FIA homologation for racing circuit paint, and a record on named expressways (DRHP p.130, DRHP p.178). Against that: one plant in Nagpur, 84.82% of revenue from one product family, no long-term customer agreements and no long-term supply contracts (DRHP p.34, DRHP p.39, DRHP p.41).

16Peers the company named

Peers named in the offer document: none. The company states that there are no listed entities of comparable size and business model in India or abroad (DRHP p.131, DRHP p.132).

The only comparison in the document is the commissioned industry report's table of two unlisted companies, shown in section 14 (DRHP p.180). Asian Paints PPG Private Limited's total revenue is about 7.5 times the company's in FY25 and covers far more than road marking; Automark Industries (India) Private Limited is about 1.5 times the size (our arithmetic, DRHP p.180). With no listed peer and no price band, no comparison of trading multiples can be made.

17Risks, in plain words

Product: hot-applied thermoplastics were 84.82% of FY26 revenue (DRHP p.34) → a shift in road authority specifications to other marking types would reach most of revenue → the other three product families together were ₹3,349.24 lakh (our arithmetic, DRHP p.34).

Customers and channel: no long-term agreements with direct customers; sales run on purchase orders (DRHP p.39) → orders can stop without compensation → the top ten were 50.49% of FY26 revenue and distributors 49.39% (DRHP p.35, DRHP p.37).

Government spending: demand depends on road projects funded by government and executed by EPC contractors (DRHP p.38) → delays in awards or payments flow down to the company → receivables more than a year past due were ₹353.07 lakh at March 2026 (DRHP p.39).

Suppliers and currency: imports were 66.02% of raw materials and the largest supplier 26.49% of purchases (DRHP p.41, DRHP p.42) → a supply disruption or rupee fall raises cost with no hedging policy in place (DRHP p.59) → foreign exchange loss was ₹92.54 lakh in FY26 (DRHP p.59).

Working capital: net working capital rose from 80 to 133 days of revenue over FY24 to FY26 (DRHP p.117) → the plan assumes it stays near that level while revenue grows (DRHP p.117) → FY26 operating cash flow was ₹19.64 lakh (DRHP p.86).

Project contracts: work orders carry liquidated damages of up to 10% of the contract price in at least one case, and some have no price variation (DRHP p.39, DRHP p.40) → cost rises after award come out of margin → services were 29.73% of FY26 revenue (DRHP p.36).

People: attrition of permanent employees was 28.47% in FY26, against 12.50% in FY24 (DRHP p.58) → execution depends on trained crews and engineers → 216 contract labourers were engaged at August 2026 (DRHP p.58).

Promoter transactions: land bought from a promoter for ₹300.00 lakh and a ₹229.14 lakh loan to a promoter group company (DRHP p.60, DRHP p.287) → these set prices between the company and its owners.

Compliance record: unspent CSR from 2018 to 2025 under compounding, delays in TDS, GST and other statutory payments, and an unregistered charge on the main bank facility (DRHP p.47, DRHP p.54).

Issue-specific: half the offer is an offer for sale by two promoters whose average cost is ₹0.34 a share (DRHP p.81, DRHP p.104); the issue amount, general corporate purposes amount and expenses are blank; and a pre-IPO placement of up to 6,70,000 shares may be made (DRHP p.81).

18Litigation and regulatory matters

Criminal: there are no criminal proceedings against the company, promoters, directors, key managers or the subsidiary (DRHP p.352, DRHP p.353, DRHP p.354). Regulatory: no action by a regulator against any of them, and no SEBI or exchange action against the promoters in five years (DRHP p.352, DRHP p.353). Civil: no material civil litigation, on a materiality threshold of ₹101.73 lakh (DRHP p.351). The summary table totals ₹214.83 lakh against the company (DRHP p.59, AP p.10). The CSR compounding application of September 29, 2026 is pending with the Registrar of Companies (DRHP p.47).

19Related-party transactions

Source: DRHP p.89; the first and third rows are our arithmetic from the same page. KCTPL is Kataline Construction Technologies Private Limited, the only group company named (DRHP p.362). The FY26 KCTPL item is labelled "loan repaid" in the related-party tables, while the loans note says an amount due from KCTPL was converted into a loan at 8% (DRHP p.89, DRHP p.287). Loans from Ketaki Amit Thatte of ₹9.25 lakh were repaid in FY25 (DRHP p.89). All related-party transactions were ₹734.89 lakh in FY24 and ₹1,117.79 lakh in FY26 (DRHP p.55).

What appeared or changed in the two years before filing: the land purchase from Amit Arvind Thatte in June 2025; the trademark assignments in February 2026; the KCTPL loan; salaries to a CFO and a company secretary; sitting fees to independent directors; and a lower promoter pay bill in FY26 (DRHP p.89, DRHP p.60, DRHP p.234). In 2010 the company and KCTPL jointly bought land at Hingna, ₹31.25 lakh of a ₹62.50 lakh price being the company's share; it is vacant (DRHP p.257).

20What the offer document does not say

Tonnes sold, price per tonne and area of marking applied are not disclosed, so growth cannot be split into volume and price. Margins on products and on project services are not given separately. The order book for project work is not disclosed. The largest customer and five of the top ten are not named. The production capacity added by the plant upgrade is not stated. Kataline Construction Technologies Private Limited's business and financial figures are not in the document; they are only on the company's website (DRHP p.362). The issue amount, price band, general corporate purposes amount and offer expenses are blank.

Some figures differ within the document and are recorded as document matters: receivable days are 108, 118 and 127 in one table and 103, 115 and 122 in another (DRHP p.48, DRHP p.117); inventory days are 42, 70 and 89 on average stock and 36, 102 and 103 on closing stock (DRHP p.50, DRHP p.117); the expected credit loss allowance is ₹108.52 lakh on the receivables face and ₹141.21 lakh in the movement table (DRHP p.289); and the FY26 KCTPL item is a "loan repaid" in one table and a loan given in another (DRHP p.89, DRHP p.287).

21Five questions for management

1. How many tonnes of thermoplastic were sold in FY24 and FY26, and at what average price per tonne?
2. Which projects made up the ₹3,065.00 lakh of FY26 service revenue in Western India, and how much of it was collected by September 2026?
3. What gross margin did project services and product sales each earn in FY26?
4. On what basis was ₹269.98 lakh of doubtful-debt allowance written back in FY26, and how much of the related receivables has since been collected?
5. Why was the ₹239.14 lakh due from Kataline Construction Technologies Private Limited, unpaid since at least March 2024, converted into a two-year loan rather than collected?

1Sources and cited facts

This study was read from 1 document the company filed. The 160 figures it cites are listed under the document each came from, with the page and the sentence as printed.