Pes Installations Limited IPO

01At a glance

What the company does: designs, supplies, installs and commissions hospital infrastructure, chiefly medical gas pipeline systems and modular operation theatres, plus pneumatic tube and nurse call systems and maintenance contracts; modular operation theatres were 65.70% and medical gas pipeline systems 21.39% of FY26 revenue (DRHP p.185, DRHP p.189, AP p.3).

Who pays it: private and government hospitals, and the contractors who build them. Private hospitals were 85.17% of FY26 revenue (DRHP p.192). The document does not name its top ten customers, saying they have not consented; it names, as examples of ongoing work, AIIMS JPNA Trauma, Larsen & Toubro Limited, Cymetree Projects LLP, Swadeshi Civil Infrastructure Pvt Ltd and VEHA Foundation (DRHP p.200, DRHP p.201, DRHP p.203).

Why it is raising money: ₹6,300.00 lakh for working capital, deployed ₹2,950.00 lakh in FY27 and ₹3,350.00 lakh in FY28, plus general corporate purposes capped at 25% of the gross proceeds (DRHP p.109, DRHP p.110). The offer for sale goes to the three promoters, not the company (DRHP p.109).

How fast it has grown: revenue from ₹9,724.05 lakh in FY24 to ₹11,056.40 lakh in FY26, about 6.6% a year, after a fall of 17.40% in FY25; profit after tax from ₹1,343.51 lakh to ₹2,311.81 lakh, about 31.2% a year (our arithmetic, DRHP p.77, DRHP p.121).

The one thing to understand: FY26 profit after tax was ₹2,311.81 lakh while operating cash flow was ₹288.40 lakh, because receivables reached ₹9,204.71 lakh, 304 days of revenue (DRHP p.77, DRHP p.78, DRHP p.31). In the same year one unnamed customer was 42.26% of revenue and Maharashtra 55.63% (DRHP p.28, DRHP p.29).

02The business, in plain words

A hospital needs oxygen, medical air and vacuum piped to every bed and operating table, and operating rooms built as sealed, cleanable spaces. This company designs those systems, makes the panels, doors and fittings for operating theatres at its plant in Haryana, buys in other parts, and sends its own people to install, test and commission them on site (DRHP p.185, DRHP p.186, DRHP p.187).

A hospital or its building contractor awards a tender or work order → the company designs the system and makes or buys the components → it installs and commissions them at the hospital → it is paid in milestones, with part held back as retention until the defect liability period ends.

Most work is won by tender or negotiated contract at a fixed price, and many government contracts can be cancelled without compensation (DRHP p.28, DRHP p.29, DRHP p.37). The company says it dispatches all the product on an order but bills about 65% of the product price at first, so roughly a quarter of the value stays unbilled until later stages (DRHP p.114). Most of its sales fall in the second half of the year: the fourth quarter was 48.40%, 64.69% and 64.01% of revenue in FY24, FY25 and FY26 (DRHP p.113).

Manufacturing began in 2016 at Plot No. 2025, Sector 38, Rai, Sonipat, a single facility of about 1,908 square metres (DRHP p.185, DRHP p.221). A majority of the products and components for its medical gas pipeline systems are made by Biodyys Medical Infra LLP, which is part of the promoter group (DRHP p.199). Nurse call systems are sourced from Rauland, which has appointed the company its distributor for India and Nepal, and pneumatic tube systems from a company in the Netherlands (DRHP p.188). The company had 80 permanent employees at August 31, 2026, plus contract labour (DRHP p.206).

Earnings equation: Revenue ≈ orders executed in the year, where orders executed equalled revenue in each of the three years: ₹9,724.05 lakh, ₹8,032.32 lakh and ₹11,056.40 lakh (DRHP p.112). The company puts its average order size at about ₹2,000 lakh in FY26 against about ₹1,000 lakh in FY25 (DRHP p.310). It gives no count of projects, beds or theatres by year and no price per unit.

03Where the money comes from

Source: DRHP p.189, DRHP p.190. All revenue is from India (DRHP p.285). Private hospitals were 81.48%, 69.49% and 85.17% of revenue in the three years, and government hospitals 18.52%, 30.42% and 14.83% (DRHP p.192). By state, Maharashtra went from 13.37% of FY24 revenue to 55.63% of FY26, while Tamil Nadu fell from 11.15% to 0.01% and Telangana from 9.12% to 0.41% (DRHP p.29). Delhi was 11.56% and Odisha 7.42% of FY26 revenue (DRHP p.29).

Source: DRHP p.28. Revenue depends on a few customers, and much more so in FY26: one customer took ₹4,672.30 lakh, 42.26% of the year's revenue, against ₹1,041.56 lakh for the largest in FY25 (DRHP p.28, DRHP p.203). The customers are not named, and there are no long-term contracts with most of them (DRHP p.27). On the supply side, the top ten suppliers were 67.06% of FY26 purchases and the largest 32.95% (DRHP p.202).

04The growth record

Source: DRHP p.77, DRHP p.78, DRHP p.121, DRHP p.123, AP p.7.

Our arithmetic over FY24 to FY26: revenue grew about 6.6% a year (our arithmetic, DRHP p.77), EBITDA about 28.6% a year (our arithmetic, DRHP p.121) and profit after tax about 31.2% a year (our arithmetic, DRHP p.77). EBITDA margin went from 20.6% to 29.9%, up 934 basis points (DRHP p.121). In crore, revenue went from ₹97.2 crore in FY24 to ₹110.6 crore in FY26 and profit after tax from ₹13.4 crore to ₹23.1 crore (DRHP p.77).

Cash and balance sheet in crore: operating cash flow was ₹2.9 crore in FY26 (DRHP p.78). Other income of ₹81.26 lakh was 2.6% of FY26 profit before tax of ₹3,172.97 lakh (our arithmetic, DRHP p.77). Borrowings of ₹1,589.32 lakh less cash of ₹10.48 lakh, against EBITDA of ₹3,306.56 lakh, give net debt of about 0.5× EBITDA (our arithmetic, DRHP p.76, DRHP p.77).

Return on capital employed was 36.8% in FY26 (DRHP p.121) and debt to equity 0.21, about 0.2× (DRHP p.123). Net working capital was 183 days in FY26 (DRHP p.30), and receivables went from 274 days in FY24 to 304 days in FY26 (DRHP p.31). Receivables more than a year past due were ₹1,871.57 lakh, about ₹18.7 crore and 20.0% of gross receivables of ₹9,339.48 lakh, at March 2026 (our arithmetic, DRHP p.277).

Disputed tax demands carried as contingent liabilities were ₹382.51 lakh, about ₹3.8 crore, and bank guarantees issued ₹1,243.25 lakh, about ₹12.4 crore (DRHP p.79). Related-party transactions summed to ₹715.30 lakh in FY26, about ₹7.2 crore (DRHP p.46). The order book stood at ₹22,163.92 lakh, about ₹221.6 crore, at July 31, 2026 (DRHP p.28). Loans from the three promoters were ₹561.04 lakh, about ₹5.6 crore, at March 2026 (our arithmetic, DRHP p.282).

The year end is March 31 throughout. FY24 and FY25 were first prepared under Indian GAAP and restated to Ind AS; the restatement raised FY24 profit from ₹1,080.96 lakh to ₹1,343.51 lakh and lowered FY25 profit from ₹1,444.25 lakh to ₹1,310.07 lakh (DRHP p.298, DRHP p.299). Revenue fell 17.40% in FY25, which the company puts down to the general election code of conduct delaying projects and sites not being ready (DRHP p.121, DRHP p.314).

05What the growth is made of

Revenue rose ₹1,332.35 lakh from FY24 to FY26 (our arithmetic, DRHP p.77). Modular operation theatres added ₹2,441.28 lakh, maintenance services ₹545.67 lakh and nurse call systems ₹238.37 lakh, while medical gas pipeline systems fell ₹1,654.68 lakh and pneumatic tube systems ₹238.29 lakh (our arithmetic, DRHP p.189). So more than the whole increase came from operation theatre work.

By geography, Maharashtra revenue rose ₹4,672.86 lakh, from ₹1,478.02 lakh to ₹6,150.88 lakh, more than three times the total increase (our arithmetic, DRHP p.29). In FY26 the largest customer alone was ₹4,672.30 lakh (DRHP p.28); the document does not say whether that customer is in Maharashtra.

On volume, the chartered engineer's figures show operation theatre equipment and accessories produced rising from 8,603 Nos in FY24 to 13,960 Nos in FY26, and medical gas pipeline items falling from 10,260 Nos to 6,739 Nos (DRHP p.198). The company says revenue increases are "by and large linked" to volume (DRHP p.317), and puts the FY26 increase down to new states, a larger order book, more private work and larger orders (DRHP p.310). The document gives no price or value per unit, so the increase cannot be separated into volume and price. That is the finding.

06Earnings quality

The item that needs explaining is the gap between profit and cash. In FY26 trade receivables rose ₹2,929.02 lakh and inventories ₹1,106.68 lakh, against a ₹640.97 lakh rise in payables (DRHP p.78). Inventory is almost all work in progress, ₹1,821.82 lakh of ₹1,925.63 lakh at March 2026 (DRHP p.277). The company explains the receivable cycle by government billing and inspection times, retention money and a fourth-quarter sales peak, and says about 80% of debtors pay in the first half of the next year (DRHP p.113).

The expected credit loss allowance is ₹134.77 lakh in all three years, while credit-impaired receivables rose from ₹75.63 lakh to ₹193.47 lakh (DRHP p.277). Bad debts and sundry balances written off were ₹108.39 lakh, ₹129.60 lakh and ₹7.43 lakh (DRHP p.78). Contract assets, revenue recognised but not yet billed, were ₹1,994.69 lakh at March 2026 (DRHP p.279).

Tax: current tax was ₹866.60 lakh in FY26 but income tax paid in cash ₹470.53 lakh, and the net current tax liability rose to ₹683.94 lakh (DRHP p.77, DRHP p.78, DRHP p.76). Interest and late fees on statutory dues were ₹66.63 lakh in FY26 (DRHP p.286). The document lists late deposit of TDS, ESI and provident fund in each of the three years (DRHP p.45).

07The balance sheet

At March 31, 2026 total assets were ₹14,344.89 lakh: trade receivables ₹9,204.71 lakh, contract assets ₹1,994.69 lakh, inventories ₹1,925.63 lakh, other non-current financial assets (mostly deposits and margin money) ₹561.01 lakh, property, plant and equipment ₹430.64 lakh and cash ₹10.48 lakh (DRHP p.76). Against that: borrowings of ₹1,576.51 lakh current and ₹12.81 lakh non-current, trade payables of ₹4,056.28 lakh, current tax liabilities of ₹683.94 lakh and net worth of ₹7,477.42 lakh (DRHP p.76). Lease liabilities were ₹96.21 lakh (DRHP p.282).

Current borrowings include a ₹797.09 lakh IndusInd Bank cash credit, a ₹200.00 lakh IndusInd loan, ₹18.39 lakh from the National Small Industries Corporation and ₹561.04 lakh of interest-free loans from the three promoters, repayable on demand (DRHP p.282). By August 31, 2026 outstanding borrowings, fund and non-fund based, were ₹2,819.03 lakh against ₹3,872.48 lakh sanctioned; promoter loans were then ₹550.74 lakh (DRHP p.318, DRHP p.319). The bank facilities carry personal guarantees from the three promoters, ₹2,250.00 lakh in all as of FY26 (DRHP p.36, DRHP p.318).

Contingent liabilities: disputed GST and income tax demands of ₹382.51 lakh, and bank guarantees issued of ₹1,243.25 lakh, at March 2026 (DRHP p.79). The civil-litigation line is ₹400.00 lakh in the summary and ₹4.00 lakh in the note (DRHP p.79, DRHP p.294). No capital commitment is listed beyond the bank guarantees (DRHP p.294).

After the issue, as far as the arithmetic goes: none of the fresh issue repays debt, so borrowings are not reduced by it (DRHP p.109). Net worth would rise by the fresh issue less its share of expenses, but the amount, price and expenses are blank at this stage, so the post-issue figure cannot be stated (DRHP p.111, DRHP p.320).

08What the money is for

Source: DRHP p.109, DRHP p.111. The percentage column cannot be filled because the fresh issue is stated as a share count with no amount. The working capital money is to be spent ₹2,950.00 lakh in FY27 and ₹3,350.00 lakh in FY28 (DRHP p.110).

The plan assumes the working capital gap grows from ₹8,678.46 lakh in FY26 to ₹23,322.48 lakh in FY28, with receivables of ₹17,800.00 lakh at 295 days and payable days cut from 185 to 124 (DRHP p.111, DRHP p.112). The company says it will use the money to pay suppliers earlier and to post margin money for performance bank guarantees, typically 2.5% to 5% of each work order (DRHP p.111, DRHP p.114).

The objects have not been appraised by a bank (DRHP p.118).

The company may also place up to 20% of the offer with investors before the red herring prospectus, which would reduce the offer (DRHP p.109).

Into the business up to 57,94,480 new shares, the fresh issue, amount not yet set (DRHP p.72). To selling shareholders up to 24,83,360 existing shares, the offer for sale, by the three promoters, amount not yet set (DRHP p.72).

09Who is selling

Source: DRHP p.2 for the shares offered, DRHP p.105 for holdings, DRHP p.107 for the average cost per ₹10 share; the percentages are our arithmetic. The offer is up to 82,77,840 shares: a fresh issue of 57,94,480 shares and an offer for sale of 24,83,360 shares, so the offer for sale is 30.0% of the shares on offer (our arithmetic, DRHP p.72). The working capital object is ₹6,300.00 lakh, about ₹63.0 crore (DRHP p.109).

All three selling shareholders are promoters, and each consented on September 7, 2026 (DRHP p.73). No shares were acquired by them in the last year other than by bonus or gift, and the cost of those is nil (DRHP p.107).

10Promoters

The promoters are Raghunandan Paul Chadha, aged 80, Managing Director; Gaurav Chadha, aged 47, Whole Time Director; and Pankaj Chadha, aged 51, Whole Time Director (DRHP p.246, DRHP p.247, DRHP p.227). The document states that Raghunandan Paul Chadha is the father of Gaurav Chadha and Pankaj Chadha (DRHP p.228). Pankaj Chadha has been a director since incorporation in 1995, Raghunandan Paul Chadha since 1996 and Gaurav Chadha since 2005 (DRHP p.34). Together the three hold 98.18% before the issue (DRHP p.99). Pankaj Chadha was also Chief Financial Officer from December 3, 2025 until September 12, 2026 (DRHP p.245).

Pay: remuneration was ₹120.00 lakh, ₹150.00 lakh and ₹180.00 lakh to Raghunandan Paul Chadha, and ₹84.00 lakh, ₹102.00 lakh and ₹120.00 lakh to each of Gaurav Chadha and Pankaj Chadha, in FY24 to FY26 (DRHP p.80). Together that is ₹288.00 lakh in FY24 and ₹420.00 lakh in FY26, about ₹2.9 crore and ₹4.2 crore (our arithmetic, DRHP p.80). Approved terms allow up to ₹30,00,000 a month for Raghunandan Paul Chadha and up to ₹20,00,000 a month for each of the others, for three years from April 1, 2025 (DRHP p.229, DRHP p.230).

Other businesses and deals with the company: the promoter group entities are Peritus Infrastructure Private Limited, Prime Automations, Biodys Medical Infra LLP, Operista Solutions PTE Ltd. and Operista FZ LLC (DRHP p.250). Biodyys Medical Infra LLP, in which the directors are partners, makes most of the company's medical gas pipeline components; purchases from it were ₹61.32 lakh in FY25 and ₹92.60 lakh in FY26 (DRHP p.199, DRHP p.80).

Peritus Infrastructure, the one group company, works to a limited extent in a similar line and signed a non-compete agreement with the company on September 24, 2026 (DRHP p.332). The promoters lent the company ₹561.04 lakh, interest free and repayable on demand, at March 2026, and guarantee its bank loans without a fee (DRHP p.81).

Pledges and cases: no promoter share is pledged (DRHP p.108). There is no criminal, tax or regulatory case against the promoters (DRHP p.324, DRHP p.326). Raghunandan Paul Chadha is a defendant, with the company, in a ₹1,99,005 dues suit by a former employee, Dharmender Kumar; Pankaj Chadha and Gaurav Chadha were removed from it in December 2022 (DRHP p.322, DRHP p.323). The promoters have not been debarred by SEBI and have not been promoters of a company that was (DRHP p.249).

Promoter economics: Pankaj Chadha subscribed at ₹10 in 1995; further issues at ₹10 followed in 1996, 2006 and 2009 (DRHP p.90, DRHP p.91, DRHP p.92). In March 2013 Raghunandan Paul Chadha bought the 50,000 shares four companies had taken in a March 2011 private placement, at ₹100 each (DRHP p.92, DRHP p.95). A rights issue at ₹51 in March 2014 went to Pankaj Chadha and Gaurav Chadha, 49,019 shares each (DRHP p.92).

Everything since has come from bonus issues, nine in all from 1999 to 2026, and from gifts: Dinesh Chadha gifted 9,56,083 shares to Pankaj Chadha on April 10, 2026 and 9,56,083 to Gaurav Chadha on May 5, 2026 (DRHP p.96, DRHP p.97, DRHP p.98, DRHP p.108). Average cost is ₹1.80, ₹2.43 and ₹2.60 a share (DRHP p.107).

11Who already owns it

Source: DRHP p.105, AP p.7. The company has seven shareholders, all promoters or promoter group, and no public shareholder (DRHP p.103, DRHP p.108). The promoters hold 98.2% and the promoter group the rest (DRHP p.105). No fund, institution or company holds shares; there is no employee stock option scheme and no outstanding warrant or convertible (DRHP p.98, DRHP p.108).

The promoter group table lists Dinesh Chadha as the spouse of Raghunandan Paul Chadha and the mother of Gaurav Chadha and Pankaj Chadha, and Shikha Chadha and Sarika Chadha as the spouses of Gaurav Chadha and Pankaj Chadha (DRHP p.250). Dinesh Chadha held 15.82% two years before the filing and 1.82% now, after the 2026 gifts, and was reclassified from promoter to non-promoter (DRHP p.105, DRHP p.248). The holding after the issue cannot be computed until the price fixes the number of shares (DRHP p.106).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹97.2 crore in FY24 to ₹110.6 crore in FY26, and profit after tax from ₹13.4 crore to ₹23.1 crore (DRHP p.77).
• One customer became 42.3% of revenue: the largest customer was 42.26% of FY26 revenue, the top five 64.46% and the top ten 78.33%, against 13.01%, 43.95% and 65.23% in FY24 (DRHP p.28).
• Maharashtra became 55.6% of revenue in FY26, from 13.37% in FY24 (DRHP p.29).
• Private hospitals were 85.17% of FY26 revenue, against 69.49% in FY25 (DRHP p.192).
• Receivables lengthened from 274 days to 304 days over FY24 to FY26 (DRHP p.31).
• Promoter pay rose from about ₹2.9 crore in FY24 to about ₹4.2 crore in FY26 (our arithmetic, DRHP p.80).
• Promoters started lending: promoter loans went from nil at March 2024 to ₹561.04 lakh at March 2026 (DRHP p.81).
• Statutory auditor changed: GC Gupta & Company resigned on September 9, 2023, citing unavoidable circumstances, and SSR and Co. was appointed on September 11, 2023 and reappointed on September 30, 2023 (DRHP p.84).
• A 1:1 bonus was allotted on March 17, 2025, 68,29,164 shares (DRHP p.93).
• The company became public: converted under a resolution of October 28, 2025, with a certificate dated December 2, 2025 (DRHP p.2). The restated accounts give March 26, 2026 and May 21, 2026 instead (DRHP p.260).
• New board and management: three independent directors joined between December 2025 and July 2026, two others joined and resigned in the same period, a company secretary from September 6, 2025 and a CFO, Rahul Kapoorwan, from September 12, 2026 (DRHP p.232, DRHP p.233, DRHP p.245).
• Gifts inside the family: Dinesh Chadha gifted 9,56,083 shares each to Pankaj Chadha and Gaurav Chadha in April and May 2026 (DRHP p.108).
• Another 1:1 bonus, 1,36,58,328 shares, was allotted on September 3, 2026 at nil; the last allotment for cash was the rights issue at ₹51 a share in March 2014 (DRHP p.93, DRHP p.92).
• No pre-IPO placement has been made; one of up to 20% of the offer may be made before the red herring prospectus (DRHP p.109).
• Compliance clean-up: compounding and adjudication applications filed in September 2026 for a 2006-07 capital filing, an unequal 1999 bonus and unspent CSR in FY21 and FY22, and a filing about historical accounts that were not duly signed (DRHP p.43, DRHP p.307).
• Ind AS was adopted for FY26, with April 1, 2023 as the transition date (DRHP p.260).

13Capacity and expansion

Source: DRHP p.198, certified by Rajul Garg, independent chartered engineer. Total utilisation was 50.16% in FY24 and 40.06% in FY25 (DRHP p.198). The document gives one capacity figure in "Nos" for two different product groups and does not say what a unit is.

The issue funds no capacity: the money goes to working capital (DRHP p.109). The company says higher volumes should raise utilisation of the existing plant (DRHP p.196). Because most medical gas pipeline components are made by a promoter-group LLP, the plant's figures cover only part of what the company sells (DRHP p.199). The factory licence is held in the old company name and has not been applied for in the new one, and the company cannot trace the grant or status of its pollution control consents (DRHP p.48).

14Market size and industry structure

As claimed: the industry report is by CARE Analytics and Advisory Private Limited, "Industry Report on Hospital Infrastructure & Medical Engineering", dated September 28, 2026, commissioned and paid for by the company for the offer (DRHP p.27). It puts the India medical gas pipeline system market at USD 52 to 72 million in 2025 and the India modular operation theatre market at USD 150 to 160 million in 2025 (DRHP p.153, DRHP p.154).

The same commissioned report gives the operation theatre figure as USD 154 to 164 million on a later page (DRHP p.158), and the India nurse call systems market at USD 90 to 95 million in 2025 (DRHP p.155).

The part that is addressable: medical gas pipeline systems and modular operation theatres, the two lines that made up 87.1% of FY26 revenue (our arithmetic, DRHP p.189), almost all from private hospitals and in a handful of states (DRHP p.189, DRHP p.192, DRHP p.29). The document does not size the market by state or by private and government buyers.

What the company is today: at the document's own rate of ₹85.58 to the dollar for March 31, 2025, the two markets come to about ₹445 to ₹616 crore and ₹1,284 to ₹1,369 crore (our arithmetic, DRHP p.23, DRHP p.153, DRHP p.154). FY26 revenue from operation theatres of ₹7,263.90 lakh and from gas pipeline systems of ₹2,365.27 lakh would be roughly 4% to 6% of each, though the years differ, FY26 against calendar 2025 (our arithmetic, DRHP p.189).

On structure, the commissioned report says the market is fragmented, with local contractors strong in installation work and organised companies in large turnkey projects (DRHP p.162). Demand depends on hospital construction and upgrading, government schemes such as PM-ABHIM and PMSSY, and accreditation standards (DRHP p.153, DRHP p.154, DRHP p.156). Copper and steel are the main raw materials, and some high-specification components are imported (DRHP p.37, DRHP p.163).

15Competitive position

Source: DRHP p.182, DRHP p.183, DRHP p.184, from the company-commissioned report; FY26 figures for MDD Medical Systems are not available in it. The business chapter names the same three as competitors (DRHP p.209). The report's net working capital days for the company are 56, 72 and 117 in FY24 to FY26, against Aprameya Engineering's 265, 170 and 378 (DRHP p.183); these differ from the company's own 118, 73 and 183 (DRHP p.30).

What the company puts forward: over 30 years in the business, products listed as approved makes in hospital tenders, ISO, CE and EN certifications, a Class A and B medical device manufacturing licence, its own manufacturing, and a distributorship for Rauland nurse call systems (DRHP p.191, DRHP p.188, DRHP p.221). Against that: one plant, one customer at 42.26% of revenue, one state at 55.63%, fixed-price contracts, and limited marketing spend by its own account (DRHP p.32, DRHP p.28, DRHP p.29, DRHP p.40). The document does not show win rates on tenders.

16Peers the company named

Peers named in the offer document: Aparmeya Engineering Limited (DRHP p.120).

It is the only listed peer in the basis for offer price, spelt Aparmeya there and Aprameya in the business chapter and the commissioned report (DRHP p.120, DRHP p.209). The company itself says the peers "are not strictly comparable" given its nature and turnover (DRHP p.121). The peer's FY26 revenue of ₹5,513.14 lakh is about half the company's, and its profit after tax ₹512.81 lakh against the company's ₹2,311.81 lakh (our arithmetic, DRHP p.124).

The document prints the peer's P/E as 44.78 at a price of ₹120.00 on September 25, 2026 (DRHP p.120, DRHP p.121). The company's FY26 EPS after the bonus is ₹8.46 (DRHP p.77). With no price band, no P/E for the company can be stated. Of the other two names in the commissioned report, Poly Medicure's revenue is about 17 times the company's (our arithmetic, DRHP p.182).

17Risks, in plain words

Customers: one unnamed customer took 42.26% of FY26 revenue and the top five 64.46%, with no long-term contracts with most customers (DRHP p.28, DRHP p.27) → if that customer's projects end, a large share of a year's revenue has to be replaced → the largest customer in FY25 was only 12.97% (DRHP p.28).

Geography: Maharashtra was 55.63% of FY26 revenue, up from 13.37% in FY24 (DRHP p.29) → state-level spending and approvals move the total → Tamil Nadu and Telangana, together 20.27% of FY24 revenue, were under 1% in FY26 (DRHP p.29).

Working capital and collections: receivables were 304 days of revenue and ₹1,871.57 lakh was more than a year past due at March 2026 (DRHP p.31, our arithmetic, DRHP p.277) → profit turns into cash slowly → operating cash flow was ₹288.40 lakh against ₹2,311.81 lakh of profit in FY26 (DRHP p.78, DRHP p.77).

Fixed prices and raw materials: most contracts are fixed price and materials were 56.20% of FY26 revenue (DRHP p.37, DRHP p.37) → a rise in copper or steel after a bid is won comes out of margin → raw material cost was 66.90% of revenue in FY24 (DRHP p.38).

Related parties: a promoter-group LLP makes most gas pipeline components, and the promoters lend ₹561.04 lakh repayable on demand (DRHP p.199, DRHP p.81) → supply and funding both depend on the promoter family → related-party transactions were 6.47% of FY26 revenue (DRHP p.46).

Compliance record: a factory licence and pollution consents not applied for or untraceable, licences in the old name, untraceable allotment filings, unsigned historical accounts and three compounding or adjudication applications (DRHP p.48, DRHP p.53, DRHP p.307, DRHP p.43) → regulators may still act → interest and late fees on statutory dues were ₹66.63 lakh in FY26 (DRHP p.286).

Single plant: all manufacturing is at Rai, Sonipat (DRHP p.32) → a shutdown there stops supply → the business insurance sum is ₹1,600 lakh (DRHP p.207).

Issue-specific: 30.0% of the shares on offer are sold by the promoters, whose average cost is ₹1.80 to ₹2.60 a share (our arithmetic, DRHP p.72, DRHP p.107); the general corporate purposes amount, offer size and expenses are blank; and a pre-IPO placement of up to 20% of the offer may be made (DRHP p.109).

18Litigation and regulatory matters

Criminal: no criminal case against the company, promoters, directors or senior management; the only criminal matter is the company's own cheque complaint (DRHP p.322, DRHP p.324, DRHP p.325). Regulatory: no action by a statutory or regulatory authority against the company, promoters or directors (DRHP p.323, DRHP p.325). Tax: the litigation chapter says there are no outstanding tax claims and then lists eight indirect tax cases of ₹576.27 lakh against the company (DRHP p.326). The summary table puts ₹580.64 lakh against the company and ₹78.67 lakh by it (DRHP p.49, AP p.11). Material creditors: four creditors were owed ₹2,628.10 lakh at March 2026 (DRHP p.326).

19Related-party transactions

Source: DRHP p.80, DRHP p.81; the promoter rows are our arithmetic on the three individual lines. Prime Automations is a firm in which relatives of the directors are partners; Peritus Infrastructure Private Limited a company under common directorship; Biodyys Medical Infra LLP an LLP in which the directors are partners (DRHP p.80). Purchases of ₹128.96 lakh from Peritus Infrastructure are printed without a year column (DRHP p.81). Reimbursements to Gaurav Chadha were ₹92.21 lakh in FY26 against ₹2.69 lakh in FY25 (DRHP p.80). At March 2026 the company owed Peritus Infrastructure ₹84.21 lakh and Prime Automations ₹46.73 lakh (DRHP p.81).

What appeared or changed in the two years before filing: promoter loans, from nil at March 2024 to ₹561.04 lakh; purchases from Biodyys Medical Infra LLP from FY25; a one-off ₹188.54 lakh sale to Prime Automations in FY25, outstanding as a debtor at March 2025 and no longer outstanding at March 2026; and the non-compete agreement with Peritus Infrastructure on September 24, 2026 (DRHP p.81, DRHP p.80, DRHP p.332). The related-party total is ₹715.30 lakh in the summary and ₹716.28 lakh in the note (DRHP p.81, DRHP p.291).

20What the offer document does not say

The largest customer, 42.26% of FY26 revenue, is not named, nor is its state or sector. No customer or supplier is named in the top-ten tables. Project counts, order sizes by year and price per unit are not given, so growth cannot be split into volume and price. Margins by segment are not given. What a unit of the 37,600 "Nos" capacity is, is not explained. The share of medical gas pipeline components made by Biodyys Medical Infra LLP, and the value bought from it beyond the related-party lines, is not quantified. Collections after March 2026 are not given. The offer size, general corporate purposes amount and expenses are blank.

Some inconsistencies are recorded as document matters, not business ones: the civil-litigation contingent liability is ₹400.00 lakh in one place and ₹4.00 lakh in another, with totals of ₹782.51 lakh and ₹386.51 lakh (DRHP p.79, DRHP p.294); the date of conversion to a public company differs between the cover and the restated accounts (DRHP p.2, DRHP p.260); a risk factor gives FY24 to FY26 growth rates of 76.46% and (2.49)%

which are the FY26 and FY25 profit changes, not growth over the period (DRHP p.50); a risk factor gives the offer for sale as 57,94,480 shares, the fresh issue size (DRHP p.33); FY26 basic EPS is ₹16.93 in the accounts and ₹16.74 elsewhere (DRHP p.77, DRHP p.304, AP p.7); the holdings of Gaurav Chadha and Pankaj Chadha are swapped in two places (DRHP p.59, DRHP p.60, DRHP p.247);

FY25 EBITDA growth is (1.64)% and (7.51)% (DRHP p.121, DRHP p.190); the receivables-to-revenue row runs in the wrong year order (DRHP p.31); and the segment note describes a business in seating systems and carpets (DRHP p.294).

21Five questions for management

1. Who is the customer that was 42.26% of FY26 revenue, how much of the ₹22,163.92 lakh order book at July 31, 2026 is theirs, and what of the ₹9,204.71 lakh of March 2026 receivables have they paid since?
2. How many theatres, beds or systems sit behind FY26 revenue, and at what average value, against FY24?
3. What share of FY26 medical gas pipeline costs was paid to Biodyys Medical Infra LLP, including any amounts outside the ₹92.60 lakh of related-party purchases?
4. What unit does the 37,600 "Nos" capacity measure, and what does the plant need to make to cover its fixed costs?
5. Why is the expected credit loss allowance unchanged at ₹134.77 lakh for three years while credit-impaired receivables rose from ₹75.63 lakh to ₹193.47 lakh?

1Sources and cited facts

This study was read from 1 document the company filed. The 148 figures it cites are listed under the document each came from, with the page and the sentence as printed.