Polite Powertech Limited IPO

01At a glance

What the company does: designs, supplies, installs and commissions underground cabling, overhead distribution and transmission lines, solar EPC projects, and air- and gas-insulated substations (DRHP p.28, DRHP p.229).

Who pays it: public-sector power utilities, directly or through private contractors on a back-to-back basis; the largest customer was 35.00% of revenue in the six months to September 2025 and the top ten 96.89% (DRHP p.33, DRHP p.235). Gujarat provided 98.87% of revenue in that period (DRHP p.43).

Why it is raising money: ₹1,000.00 million for working capital, and the rest for general purposes (DRHP p.29).

How fast it has grown: the company started operating in FY24: revenue was ₹246 million that year, ₹1,556 million in FY25 and ₹973 million in the six months to September 2025 (DRHP p.31).

The one thing to understand: a two-and-a-half-year-old company built on its founder's older business. It was incorporated on 4 March 2023 and took over the business of M/s. Patel Electricals, a proprietorship started in 2006 by the promoter Yogeshkumar Narottambhai Patel, under a business transfer agreement; FY24 revenue and bids include that transferred business (DRHP p.28, DRHP p.42, DRHP p.235).

02The business, in plain words

A power-distribution contractor wins tenders from state utilities, or subcontracts from firms that won them, to lay cables, string lines and build substations. It procures cable, conductors and equipment, installs them with its crews, and bills against milestones.

A Gujarat distribution utility tenders underground cabling in a city → Polite Powertech wins it, or takes it back-to-back from the main contractor → it lays and commissions the cables → it bills and waits for the utility to pay.

The company made 35 bids in the six months to September 2025 and won 3 (DRHP p.42). Its promoters Yogeshkumar Narottambhai Patel and Snehalben Yogeshbhai Patel are engaged in other power-sector businesses, which the document lists as a possible conflict of interest (DRHP p.33).

Earnings equation: Profit ≈ project value executed × (contract rate − materials, labour and site cost) − interest. EBITDA margin was 17.64% in the six months (DRHP p.138).

03Where the money comes from

Source: DRHP p.229. Converted from ₹ lakh. H1 FY26 is six months. The company had no operations in FY23 (DRHP p.229).

Source: DRHP p.43, DRHP p.235.

04The growth record

Source: DRHP p.31, DRHP p.138. Converted from ₹ lakh. H1 FY26 is six months.

Return on capital employed was 18.90% in FY24, 94.75% in FY25 and 35.92% in the six months to September 2025 (DRHP p.138). Trade receivable days were 73 in FY24, 118 in FY25 and 130 in the six months to September 2025 (DRHP p.50).

05What the growth is made of

The first full year of the transferred business, then underground cabling and solar work. Underground cabling rose from ₹30 million in FY24 to ₹626 million in FY25, and solar EPC reached 23.45% of revenue in the six months (DRHP p.229). The order book was ₹1,757.64 million at March 2024, ₹2,005.82 million at March 2025 and ₹3,218.89 million at September 2025 (DRHP p.138); the risk factors give ₹3,135.62 million at 31 December 2025 (DRHP p.33).

06Earnings quality

Profit has not become cash: over FY24 to September 2025 the company booked ₹246 million of profit and generated negative ₹123 million from operations (our arithmetic, DRHP p.31, DRHP p.138). In the six months to September 2025 trade receivables rose by ₹196.28 million (DRHP p.388). The statutory auditors have no qualifications that were not given effect in the restated accounts (DRHP p.32).

07The balance sheet

Source: DRHP p.31. Converted from ₹ lakh.

Net worth rose ₹296.72 million in the six months to September 2025, of which profit was ₹107.39 million, so shares were issued to investors in that period (our arithmetic, DRHP p.31). A bonus issue followed on 17 October 2025 (DRHP p.137).

08What the money is for

Source: DRHP p.29. Converted from ₹ lakh.

09Who is selling

Source: DRHP p.1.

The offer is a fresh issue of up to 10,000,000 shares and an offer for sale of up to 2,500,000 shares, with the price not yet set (DRHP p.28).

10Promoters

The promoters are Yogeshkumar Narottambhai Patel, aged 42, chairman and managing director; Karankumar Yogeshbhai Sukhadiya, aged 40, whole-time director; and Snehalben Yogeshbhai Patel, aged 36, a non-executive director (DRHP p.289). Yogeshkumar Patel founded M/s. Patel Electricals in 2006 (DRHP p.28). Remuneration paid to the three promoters totalled ₹1.35 million in FY24 and ₹5.98 million in FY25 (our arithmetic, DRHP p.34).

11Who already owns it

Source: DRHP p.29, DRHP p.30.

The promoters hold 89.10% (DRHP p.29). Sixteen other investors hold between 0.25% and 0.99% each (DRHP p.30, DRHP p.31).

12What changed just before the IPO

• Business transfer: the proprietorship's business moved into the company from FY24 (DRHP p.42).
• New investors: shares issued in the six months to September 2025 (our arithmetic, DRHP p.31).
• Bonus issue: 17 October 2025 (DRHP p.137).
• Order book: up 60% in six months (our arithmetic, DRHP p.138).

The company became a public limited company with a fresh certificate of incorporation dated 30 September 2025 (DRHP p.2). The October 2025 bonus issue was in the ratio of 250 shares for every 1 held (DRHP p.108). The last allotment before the offer document was a private placement of 338,033 shares at ₹71 a share on 6 January 2026 (DRHP p.109). The company does not contemplate a pre-IPO placement (DRHP p.37). There has been no change in the statutory auditors in the three years before the offer document (DRHP p.99).

13Capacity and expansion

Capacity is crews, equipment and working capital; the company had 37 ongoing projects in the six months to September 2025 (DRHP p.142). The proceeds fund working capital only (DRHP p.29).

14Market size and industry structure

The industry report cited in the offer document says India's installed power generation capacity was about 513 GW at December 2025, and that distribution is mainly done by state-owned companies (DRHP p.28). newboard has not tested the report's statements.

15Competitive position

What the document claims, and what it rests on:

• Execution record from the legacy business since 2006 (DRHP p.28).
• Range of work across cabling, lines, substations and solar (DRHP p.229).

Against that: one state, a handful of customers, a low win rate, and negative operating cash flow (DRHP p.42, DRHP p.43, DRHP p.235).

16Peers the company named

Source: DRHP p.137. Converted from ₹ lakh. Peer P/E uses prices on 16 February 2026.

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

17Risks, in plain words

• Gujarat. 99% of recent revenue (DRHP p.43).
• Customers. Ten customers were 97% of recent revenue (DRHP p.235).
• Tenders. 3 of 35 bids won in the six months (DRHP p.42).
• Legacy. Credentials and early orders came from the founder's proprietorship (DRHP p.33).
• Conflicts. Promoters have other power-sector businesses (DRHP p.33).
• Cash. Negative operating cash flow in every period (DRHP p.33, DRHP p.138).

18Litigation and regulatory matters

Source: DRHP p.32. Converted from ₹ lakh. No proceedings are listed by or against the company (DRHP p.32).

19Related-party transactions

Not read in detail for this study. The business transfer from the promoter's proprietorship is the main related-party event identified (DRHP p.42).

20What the offer document does not say

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

• What was paid for the business of M/s. Patel Electricals, in the pages read.
• What the promoters' other power-sector businesses do, and whether they compete, in the pages read.
• Who the largest customer is.
• Who invested in the six months to September 2025, and at what price, in the pages read.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. What did the company pay for Patel Electricals' business, and what did it receive?
2. What do the promoters' other power-sector businesses do, and do they bid for the same tenders?
3. Why has operating cash flow been negative in every period?
4. Who is the customer that provided 35% of recent revenue?
5. How will the company win work outside Gujarat?

1Sources and cited facts

This study was read from 1 document the company filed. The 59 figures it cites are listed under the document each came from, with the page and the sentence as printed.