Laxyo Limited IPO

01At a glance

What the company does: railway track work (track linking, gauge conversion, bridges, station redevelopment and mechanised track renewal), surface mining and raise boring, dredging and reclamation, and operation and maintenance of industrial and thermal plants (AP p.3).

Who pays it: mainly Indian Railways zones and state public-sector bodies, plus companies such as Wonder Cement and Hindustan Zinc (AP p.3). The largest customer was 58.05% of revenue in the six months to September 2025, and the top five 84.72% (DRHP p.263, AP p.4).

Why it is raising money: ₹700.00 million to repay borrowings, ₹97.50 million for equipment, ₹230.00 million for working capital, and the rest for general purposes (AP p.6).

How fast it has grown: revenue from ₹1,338 million in FY23 to ₹2,111 million in FY25, and ₹1,108 million in the six months to September 2025 (AP p.7).

The one thing to understand: a contractor whose revenue now rests heavily on one client and on debt. Borrowings rose from ₹530.25 million in March 2025 to ₹863.12 million in September 2025, and the offer is made under Regulation 6(2) of the SEBI rules because the company did not meet the requirements of Regulation 6(1) (AP p.1, AP p.7).

02The business, in plain words

An infrastructure contractor wins public tenders for track, mining or dredging work, brings its own specialised machines and crews, and is paid against measured progress.

A railway zone tenders a track-renewal stretch → Laxyo bids and wins → it deploys its PQRS track-relaying machine and crews → the railway measures work done and pays running bills.

The company cites the KEN Research report for being one of about five Indian players using PQRS machines for mechanised track renewal and for a 22% share of domestic raise boring (AP p.3). It has set up a Zambian subsidiary, Laxyo Evapeta Zambia, for raise boring (AP p.4). It may also rent out equipment when it does not win contracts (AP p.3).

Earnings equation: Profit ≈ work billed × (contract rate − crew, fuel and equipment cost) − interest. EBITDA margin was 12.50% in the six months to September 2025 (AP p.8).

03Where the money comes from

Source: AP p.7, AP p.8. H1 FY26 is six months.

Source: AP p.4, AP p.9. The document does not split revenue by segment; it reports one business segment (AP p.3).

04The growth record

Source: AP p.7, AP p.8. H1 FY26 is six months. The document gives EBITDA in whole millions.

05What the growth is made of

Mechanised track renewal with the company's own PQRS machine, from 70 km in FY25 and 44.6 km in the six months, while conventional track laying and dredging fell (AP p.8). The order book was ₹6,327.62 million at 31 January 2026, 81.72% from government customers and about 67.89% from railways (DRHP p.30, AP p.9).

06Earnings quality

Operating cash flow fell from ₹168.97 million in FY23 to ₹35.32 million in FY25 while profit rose (AP p.7). Debtor days fell from 37 in FY23 to 18 in FY25 (DRHP p.119). The statutory auditor's examination reports contain no qualifications (AP p.10). The KPI table gives net worth at September 2025 as ₹658.09 million and gross debt as ₹863.62 million, against ₹664.29 million and ₹863.12 million in the summary, and the auditor's KPI certificate date is left blank (AP p.7, AP p.8).

07The balance sheet

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

Proceedings against the company involve ₹361.11 million, 54% of net worth at September 2025 (our arithmetic, AP p.7, AP p.10).

08What the money is for

Source: AP p.6.

The company has not yet ordered the equipment, and the working-capital estimate has not been appraised by a bank (AP p.9). A pre-IPO placement of up to ₹300 million may reduce the issue (AP p.6).

09Who is selling

Nobody. The issue is a fresh issue only (AP p.1). The promoters' average acquisition cost is ₹0.34 a share, or nil for Shreyansh Sharma (AP p.9).

10Promoters

The promoters are Dev Prakash Sharma, Jai Prakash Sharma, Yogesh Sharma, Rajeshwary Sharma and Shreyansh Sharma (AP p.5). Dev Prakash Sharma, chairman and whole-time director, has no formal education and over 18 years in railway engineering execution (AP p.5, AP p.10). Jai Prakash Sharma has more than 25 years of experience, including 18 in finance and HR (AP p.5). Yogesh Sharma, managing director, holds degrees in computer applications, law and international business and has over 25 years of experience, 12 in tendering and contracts (AP p.5, AP p.10).

11Who already owns it

Source: AP p.5, AP p.6. The last row is our arithmetic; Rajeshwary Sharma, a promoter, holds 1.50% of it.

There are no public shareholders (AP p.6).

12What changed just before the IPO

• Debt: borrowings up ₹333 million in the six months to September 2025 (our arithmetic, AP p.7).
• Customer: one client at 58% of revenue (DRHP p.263).
• Equipment: own PQRS track machine in use from FY25 (AP p.8).
• Zambia: a subsidiary for raise boring (AP p.4).
• Share split: the face value was sub-divided from ₹100 to ₹10 in January 2026 (DRHP p.87).
• Bonus issue: 42,103,600 shares in the ratio 28:1 in February 2026, the last allotment before the issue, at nil consideration (DRHP p.87).
• Auditor: no change of statutory auditor in the three years before the filing; Pramod Nahar and Associates was reappointed in September 2023 (DRHP p.79).
• Company form: the company became a public limited company in April 2013 (DRHP p.78).

13Capacity and expansion

Capacity is machines and crews; offices are in Indore and leased warehouses in Ratlam (AP p.4). The proceeds add ₹97.50 million of equipment, not yet ordered (AP p.6, AP p.9).

14Market size and industry structure

The KEN Research report cited in the offer document says railway infrastructure spending grew at 12.3% a year from FY20 to reach ₹1.4 lakh crore in FY25, and projects the raise-boring market to reach about ₹529 crore by FY31 (AP p.4). Those projections are KEN's, and newboard has not tested them.

15Competitive position

What the document claims, and what it rests on:

• Specialised machines: one of about five PQRS users, citing KEN (AP p.3).
• Raise boring: 22% domestic share, citing KEN (AP p.3).
• Several lines of work across railways, mining, dredging and O&M (AP p.3).

Against that: dependence on one large customer, on government tenders and on Madhya Pradesh, with bank guarantees needed for contracts (AP p.9, DRHP p.263).

16Peers the company named

Source: DRHP p.127. The table also lists Larsen & Toubro, Afcons, GR Infraprojects, Thermax and Dredging Corporation of India, and includes Master Drilling India, which it notes is unlisted, among "listed peers" (DRHP p.127).

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

17Risks, in plain words

• One customer. 58% of recent revenue (DRHP p.263).
• Government work. 82% of the order book (AP p.9).
• Region. Madhya Pradesh was 44% of recent revenue (AP p.9).
• Tenders. Competitive bidding and bank guarantees (AP p.9).
• Proceedings. ₹361 million against the company (AP p.10).
• Debt. Borrowings up 63% in six months (our arithmetic, AP p.7).

18Litigation and regulatory matters

Source: AP p.10. An insolvency petition against a group company, Yolax Infranergy, was dismissed for non-appearance in April 2025 (AP p.11).

19Related-party transactions

Not read in detail for this study.

20What the offer document does not say

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

• Who the largest customer is, at 58% of recent revenue.
• Revenue by line of work: railways, mining, dredging and O&M.
• What the ₹361 million of proceedings against the company concern, in the pages read.
• Why net worth and debt differ between the summary and KPI tables.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. Who is the customer behind 58% of recent revenue, and what contracts does it have with the company?
2. How much revenue comes from each line of work?
3. What do the criminal and civil proceedings against the company concern?
4. Why did borrowings rise by ₹333 million in six months?
5. Why did dredging volumes fall to zero?

2Sources and cited facts

This study was read from 2 documents the company filed. The 63 figures it cites are listed under the document each came from, with the page and the sentence as printed.