Pushp Brand (India) Limited IPO

01At a glance

What the company does: makes and markets pure spices (chilli, coriander, turmeric), blended spices, hing and adjacent products such as soya and tea, with 312 SKUs at March 2026 (AP p.3, AP p.8).

Who pays it: consumers, reached mainly through general trade (95.14% of FY26 revenue), plus modern trade and e-commerce and quick commerce; there is no customer concentration (AP p.3, AP p.4).

Why it is raising money: it is not. The offer is entirely a sale of existing shares, and the company receives none of the proceeds (AP p.1, AP p.5).

How fast it has grown: revenue from ₹3,982 million in FY24 to ₹4,819 million in FY26, and profit from ₹333 million to ₹590 million (AP p.7).

The one thing to understand: a profitable regional brand whose investors are taking money out. Madhya Pradesh was 67.45% of FY26 revenue, and A91 Emerging Fund and Sixth Sense India Opportunities are offering most of the shares (AP p.5, AP p.9).

02The business, in plain words

A branded spice company buys raw chilli, coriander, turmeric and other spices, cleans, grinds, blends and packs them, and sells through distributors to grocery shops. Its margin depends on buying raw spices well and on brand strength letting it price above loose spices.

A kirana store in Indore stocks Pushp chilli powder → a distributor supplies it from the company's Indore plants → a household buys a pack → the store reorders through the distributor.

The company runs two automated plants at Bardari and Bharosala in Indore and uses third parties for tea manufacture and for packing soya and tea (AP p.4, AP p.9). The Surana family's partnership, Munimji & Sons, preceded the company (AP p.5).

Earnings equation: Profit ≈ tonnes × (price per kg − raw-spice and packing cost) − brand and distribution cost. Product margin was 37.76% of revenue in FY26 (AP p.8).

03Where the money comes from

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

Source: AP p.3, AP p.9.

The company cites the TKC report for a 20.7% share of Madhya Pradesh's branded-spices market by value in FY25, and about 58% of packaged hing there (AP p.3).

04The growth record

Source: AP p.7, AP p.8. The company computes margins on total income.

Trade receivable days were 22 in FY24 and 18 in FY26 (DRHP p.335).

05What the growth is made of

Volumes grew 2.49%, 10.63% and 14.47% in FY24, FY25 and FY26 (AP p.7). FY25 revenue was nearly flat despite 10.63% volume growth, which suggests lower realisations that year (our reading of AP p.7). Product margin widened from 31.91% to 37.76% over two years (AP p.8). Retail touch points rose from over 237,000 to over 368,000 (AP p.8).

06Earnings quality

Operating cash flow was ₹195 million in FY26 against profit of ₹590 million, after ₹486 million in FY25 (AP p.7). Auditors' qualifications have been given effect in the restated financial information (AP p.10).

07The balance sheet

Source: AP p.7.

Some of the shares on offer will come from converting compulsorily convertible preference shares held by the sellers (AP p.6).

08What the money is for

Source: AP p.5.

09Who is selling

Source: AP p.1, AP p.5.

10Promoters

The promoters are Mahendra Kumar Surana, chairman and managing director, and Surendra Kumar Surana, chief executive and whole-time director, both associated with the company's business since 1 April 1995 and previously partners in Munimji & Sons, with over 31 years in FMCG (AP p.5).

Mahendra Kumar Surana and Surendra Kumar Surana were each paid ₹18.00 million in FY24 and ₹19.00 million in FY26, ₹36.00 million and ₹38.00 million together (DRHP p.63).

11Who already owns it

Source: AP p.6.

12What changed just before the IPO

• Share structure: a split, bonus issue and change in preference-share conversion ratio (AP p.7).
• Growth: revenue up 19.10% in FY26 after flat FY25 (AP p.7).
• Capacity: raised from 53,000 to 63,000 tonnes a year in FY26 (AP p.8).
• Split and bonus: on 19 February 2025 each ₹10 equity share was split into two of ₹5, and a 9:1 bonus issue was made the same day (DRHP p.73).
• Public company: the company converted to a public limited company on 17 September 2025 (DRHP p.368).
• Auditors: there has been no change in the statutory auditors in the three years before the DRHP (DRHP p.67).

13Capacity and expansion

The KPI table gives installed capacity of 63,000 tonnes a year and utilisation of 38.95% for FY26, while the business summary gives 60,000 tonnes and 37.19% at 31 March 2026 (AP p.4, AP p.8). Either way, there is spare capacity for more than double today's output. No capacity is funded, as there is no fresh issue.

14Market size and industry structure

The TKC report cited in the offer document values India's domestic spice market at ₹909.6 billion in FY25 and projects ₹1,420.1 billion by FY30, with a shift from loose to packaged spices (AP p.4, AP p.5). Those projections are TKC's, and newboard has not tested them.

15Competitive position

What the document claims, and what it rests on:

• Leadership in Madhya Pradesh, citing TKC market shares (AP p.3).
• Two brands for premium and popular price points (AP p.3).

Against that: two-thirds of sales in one state, dependence on three spices, and much larger national competitors (AP p.9, DRHP p.99).

16Peers the company named

Source: DRHP p.99. Peer P/E uses prices on 21 May 2026.

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

17Risks, in plain words

• Three spices. Pure spices, mainly chilli, coriander and turmeric, were 63.56% of FY26 revenue (AP p.8).
• One state. Madhya Pradesh is two-thirds of revenue, and all plants are in Indore (AP p.9).
• Raw-material prices. Spice and packaging costs swing (AP p.9).
• Food safety. Contamination or mislabelling could bring regulatory action (AP p.9).
• Third parties. Tea and some packing are outsourced (AP p.9).

18Litigation and regulatory matters

Source: AP p.10, 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:

• What the ₹200 million of claims filed by the company concern.
• Why operating cash flow fell in FY26 while profit rose.
• Which capacity figure is correct: 60,000 or 63,000 tonnes.
• Realisations per kilogram, in the pages read.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. Why did FY25 revenue stay flat when volumes grew 10.63%?
2. Why did operating cash flow fall to ₹195 million in FY26?
3. What are the company's four civil claims worth ₹200 million about?
4. How will the company grow outside Madhya Pradesh, and at what cost?
5. Is installed capacity 60,000 or 63,000 tonnes a year?

2Sources and cited facts

This study was read from 2 documents the company filed. The 47 figures it cites are listed under the document each came from, with the page and the sentence as printed.