Pragyawan Technologies Limited IPO

01At a glance

What the company does: supplies skill-development and training products and capacity-building solutions, and executes and maintains utility projects in power, water and renewable energy, through procurement, contract manufacturing, system integration and project execution (AP p.3).

Who pays it: central and state governments, public-sector undertakings and some private companies (AP p.3). The top five customers were 99.43% of revenue in the nine months to December 2025, and the top ten 99.99% (AP p.4).

Why it is raising money: ₹3,041.60 million for working capital, to be spent in FY27 and FY28, and the rest for general purposes (AP p.5, DRHP p.30).

How fast it has grown: revenue was ₹673 million in FY23, ₹2,117 million in FY24, ₹3,594 million in FY25 and ₹7,771 million in the nine months to December 2025 (AP p.3).

The one thing to understand: very fast growth from a handful of government contracts, with cash lagging far behind profit. In the nine months to December 2025 profit was ₹991 million but operating cash flow ₹153 million, and trade receivables reached ₹3,067 million (AP p.6, DRHP p.30).

02The business, in plain words

This is a government contractor. It wins orders to supply products such as smart-classroom and video-studio setups, artisan toolkits under the PM Vishwakarma scheme and educational kits, and to install and maintain utility systems such as renewable-energy lighting (DRHP p.27, DRHP p.40, DRHP p.41). Most products are made for it by contract manufacturers; it procures, integrates, delivers and installs them.

A government agency issues a request for proposal for artisan toolkits → Pragyawan wins the contract → it has the kits made by contract manufacturers and delivers them → it bills the agency on the contract's terms, often backed by a bank guarantee from the company.

The company began its own manufacturing in a leased facility in Greater Noida, and has delivered 'Jaadui Pitara' educational kits for the Odisha Primary Education Program Authority from it (DRHP p.40). It relies on equipment suppliers, contract manufacturers and contract-labour agencies (DRHP p.32).

Earnings equation: Profit ≈ contract value executed − materials − execution cost. Materials consumed were ₹5,986.56 million in the nine months to December 2025, 92.62% of total expenses (DRHP p.28).

03Where the money comes from

Source: AP p.3.

Source: AP p.4, DRHP p.24.

The states change sharply from year to year. In FY23 and FY24 Odisha and Uttar Pradesh made up all revenue (DRHP p.31). In the nine months to December 2025 Gujarat was 23.87%, Karnataka 14.88% and Uttar Pradesh 12.76%, with the rest spread over 21 other states and union territories (DRHP p.31).

04The growth record

Source: AP p.6, AP p.7.

Return on capital employed was 65.36% in FY23, 64.93% in FY24, 46.05% in FY25 and 56.48% in the nine months to December 2025 (DRHP p.106). Trade receivable days were 87 in FY23, 67 in FY24, 147 in FY25 and 109 in the nine months to December 2025 (DRHP p.30).

05What the growth is made of

Skill development: revenue in that vertical rose from ₹1,623 million in FY25 to ₹5,873 million in nine months of FY26 (AP p.3). The order book grew from ₹2,296.65 million at March 2023 to ₹16,483.13 million at December 2025 (AP p.7). Revenue grew at 131.07% a year from FY23 to FY25, and the document warns that this may not continue (DRHP p.26).

The order book has already been trimmed once: quantity changes to toolkit contracts under the PM Vishwakarma scheme, and the termination in June 2025 of a sub-contract from a private customer, reduced it by ₹479.87 million in aggregate (DRHP p.27).

06Earnings quality

Profit is not yet cash. Operating cash flow was ₹152.81 million in the nine months to December 2025, against profit of ₹990.90 million, and was negative in FY25 (AP p.6). Trade receivables were ₹3,067.31 million at December 2025 (DRHP p.30). Net working capital went from negative ₹5.43 million at March 2023 to ₹2,105.45 million at December 2025 (AP p.7).

Other obligations sit off the income statement: bank guarantees of ₹465.12 million furnished at December 2025 (DRHP p.40), and warranties of two to five years on smart-classroom, studio and renewable-lighting projects (DRHP p.41). The document also reports past delays in paying some statutory dues (DRHP p.36).

07The balance sheet

Source: AP p.6, DRHP p.30.

Debt to equity was 0.34 times at December 2025 (AP p.7). The promoters and others have given personal guarantees for the company's borrowings (DRHP p.44).

08What the money is for

Source: AP p.5, DRHP p.30.

General corporate purposes are capped at 25% of gross proceeds. A pre-IPO placement of up to ₹800 million may reduce the fresh issue (AP p.5).

09Who is selling

Source: AP p.1.

The offer is a fresh issue of up to ₹4,000.00 million and an offer for sale of up to 15,000,000 shares by the two promoters (AP p.1).

10Promoters

The promoters are Puneet Jain, chairman, managing director and chief executive, and Shefali Jain, non-executive director (AP p.5). Puneet Jain worked at Madras Aluminium, Sterlite Industries and Teracom, where the role was president, corporate business, has over 21 years of experience, and has been associated with the company since July 2024 (AP p.5).

The document says degree certificates of certain senior managers cannot be traced, and provisional certificates or mark sheets were relied on instead (DRHP p.46, DRHP p.47).

11Who already owns it

Source: AP p.6.

Promoters and promoter group hold 98.74% (AP p.6, our arithmetic).

12What changed just before the IPO

• Growth: nine-month revenue in FY26 was more than twice full-year FY25 (AP p.3).
• Share capital: rose from ₹95.19 million at March 2025 to ₹475.95 million at December 2025; per-share figures are adjusted for a bonus issue and share split (AP p.6).
• Manufacturing: the Greater Noida lease took effect on 5 January 2026, for 11 months (DRHP p.40).
• Order book: cut by ₹479.87 million through contract changes and one termination (DRHP p.27).

The company made a bonus issue of 17 shares for every 1 held on 16 September 2024 and another of 4 for every 1 held on 27 December 2025, and then sub-divided each ₹100 share into 50 shares of ₹2 under a shareholder resolution of 30 December 2025 (DRHP p.81). It became a public limited company, with a fresh certificate of incorporation dated 17 October 2025 (DRHP p.3). Khandelwal Badaya & Co. resigned as statutory auditor on 2 July 2025 and M S K C & Associates LLP was appointed on 9 July 2025 (DRHP p.73).

13Capacity and expansion

The business has been asset-light, relying on contract manufacturers (DRHP p.40). The Greater Noida facility is shared and leased, building, plant and machinery, for 11 months, and either side can end the lease on two months' notice (DRHP p.40). Offices and warehouses are also leased or licensed (DRHP p.42). No plant is funded from the proceeds.

14Market size and industry structure

The Frost & Sullivan report cited in the offer document says the PM Vishwakarma scheme has ₹13,000 crore allocated for FY24 to FY28, projects rising smart-classroom adoption in schools through FY30, and forecasts Indian technology spending in education to rise from ₹637.50 billion in FY25 to ₹2,550 billion by FY30 (AP p.4). Those forecasts are Frost & Sullivan's, and newboard has not tested them. The document describes its industry as highly competitive and fragmented (DRHP p.35).

15Competitive position

What the document claims, and what it rests on:

• Repeat business: 95.20% of nine-month revenue came from repeat customers (DRHP p.24).
• An integrated model covering procurement, contract manufacturing, integration, execution and maintenance (AP p.3).

Against that: near-total dependence on a few government customers, no long-term agreements with them, and a fragmented, competitive market (DRHP p.24, DRHP p.35).

16Peers the company named

The peer comparison was not read for this study. For Pragyawan the document gives return on net worth of 52.25% and net asset value per share of ₹7.97 for the nine months to December 2025, not annualised (AP p.6). No P/E is possible for the company until a price band is set.

17Risks, in plain words

• Customer concentration. Five customers were 99.43% of nine-month revenue, with no long-term agreements (DRHP p.24).
• State concentration. Revenue moves between a few states each year (DRHP p.31).
• Receivables and cash. ₹3,067 million outstanding, and operating cash flow far below profit (DRHP p.30, AP p.6).
• Order book. Orders can be delayed, modified, cancelled or not fully paid (DRHP p.26).
• Fixed-price contracts. Costs may be misjudged (DRHP p.41).
• Guarantees and warranties. Bank guarantees can be invoked; warranties run up to five years (DRHP p.40, DRHP p.41).
• Third parties. Suppliers, contract manufacturers, labour agencies and logistics providers (DRHP p.32, DRHP p.34).

18Litigation and regulatory matters

Source: DRHP p.27.

There are no material civil proceedings, and no proceedings involving group companies that may materially affect the company (DRHP p.27). The details are on DRHP page 376 of the document and were not read for this study. The company reports past delays and discrepancies in filing certain regulatory forms (DRHP p.37).

19Related-party transactions

The company has entered into related-party transactions and may continue to (DRHP p.37). One group company has business objects in common with the company, which the document flags as a possible conflict of interest (DRHP p.45). The details were not read for this study.

20What the offer document does not say

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

• The names of the top customers, which are listed in the management discussion and not read here.
• How much of receivables is overdue.
• Which schemes and customers make up the order book, and over what period it will be executed.
• What the criminal proceeding against a key managerial person concerns, in the pages read.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. Which customers and schemes make up the ₹16,483 million order book, and over what period will it be executed?
2. How much of the ₹3,067 million of receivables is more than six months old?
3. Why was operating cash flow ₹153 million in nine months when profit was ₹991 million?
4. The PM Vishwakarma allocation runs from FY24 to FY28 to how much of the order book depends on it?
5. What does the criminal proceeding against a key managerial person concern?

2Sources and cited facts

This study was read from 2 documents the company filed. The 69 figures it cites are listed under the document each came from, with the page and the sentence as printed.