Sadbhav Futuretech Limited IPO

01At a glance

What the company does — designs, supplies, installs and maintains solar power systems, overwhelmingly solar water-pumping systems, with smaller rooftop and ground-mounted work (AP p.3). Solar water pumping was 97.73% of revenue in the six months to September 2025 (AP p.11).

Who pays it — government agencies directly, and private contractors that hold government contracts; the largest customer was 86.45% of revenue in the six months and the top five 99.38% (AP p.3, AP p.11). The company holds a turnkey contract from the Maharashtra State Electricity Distribution Company for off-grid solar pumps across Maharashtra under the Magel Tyala Saur Krushi Pump scheme (DRHP p.29).

Why it is raising money — ₹2,150 million for working capital — ₹1,200 million in FY27 and ₹950 million in FY28 — and the rest for general purposes (AP p.7).

How fast it has grown — revenue from ₹730 million in FY23 to ₹3,021 million in FY25, and ₹2,743 million in the six months to September 2025 (AP p.3).

The one thing to understand — very fast growth funded by debt, not cash. Operating cash flow was negative ₹1,100 million in FY25 and negative ₹1,677 million in the six months, and borrowings rose from ₹1,282 million to ₹3,121 million in those six months (AP p.9, AP p.11).

02The business, in plain words

A solar-pump EPC company wins or subcontracts government orders to install solar-powered irrigation pumps on farms. It buys panels, pumps and controllers, installs them, and is paid by the agency, which can be slow, while it has to pay suppliers first (AP p.11).

A farmer in Maharashtra is allotted a solar pump under the state scheme → MSEDCL assigns the installation to Sadbhav → the company procures a panel set and pump, installs and commissions it → MSEDCL pays under the contract terms.

The company relies entirely on third-party suppliers for materials, owns none of its premises, and uses 11 warehouses in Andhra Pradesh, Assam and Maharashtra (AP p.4, AP p.11). It has applied to move its registered office from Raipur, Chhattisgarh to Haryana (AP p.4).

Earnings equation: Profit ≈ pumps installed × (contract price − equipment and installation cost) − interest on working capital. EBITDA margin was 24.50% in the six months (our arithmetic, AP p.9).

03Where the money comes from

Source: AP p.3, AP p.4. Converted from ₹ lakh; "Other" is our arithmetic.

The company moved from almost entirely sub-contracted work to mostly direct government contracts by the six months to September 2025 (AP p.3). The order book was ₹20,160.50 million at 28 February 2026, of which ₹5,858.78 million had been booked as revenue by September 2025 (DRHP p.58, DRHP p.149).

04The growth record

Source: AP p.9. Converted from ₹ lakh. H1 FY26 is six months.

05What the growth is made of

One programme. Revenue in the six months to September 2025 came 86.45% from one customer, through the direct government contracts that began in FY25 (AP p.3, AP p.11). EBITDA margin rose from 5.29% in FY23 to 24.50% in the six months (our arithmetic, AP p.9).

06Earnings quality

Profit is not cash: over FY24, FY25 and the six months the company booked ₹789 million of profit and used ₹2,955 million in operations (our arithmetic, AP p.9). The document lists slow collection of receivables among its main risks (AP p.11). The joint auditors noted that the audit-trail feature of the accounting software was not enabled for certain direct data changes in FY24 and FY25 (AP p.13).

07The balance sheet

Source: AP p.9. Converted from ₹ lakh.

Borrowings were 2.6 times net worth at September 2025 (our arithmetic, AP p.9).

08What the money is for

Source: AP p.7. Converted from ₹ lakh.

09Who is selling

Source: AP p.1. Converted from ₹ lakh.

10Promoters

The promoters are Bhupender Singh, Saikat Roy, Bettericon Consultancy Private Limited, Nilesh Jain, Neelam Jain and Samkit Jain (AP p.1). Four of them are selling in the offer (AP p.1).

11Who already owns it

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

Promoters hold 77.45% (AP p.8).

12What changed just before the IPO

• Direct contracts — from sub-contractor to direct government contractor (AP p.3).
• Borrowings — up ₹1,838 million in six months (AP p.9).
• Registered office — application to move from Chhattisgarh to Haryana (AP p.4).

13Capacity and expansion

Capacity is working capital and installation teams, not plant (AP p.11). The proceeds fund working capital (AP p.7).

14Market size and industry structure

The ICRA report cited in the offer document says India's installed solar capacity rose from 28.18 GW in FY19 to 105.65 GW in FY25, and that about 24 lakh households had installed rooftop solar under PM Surya Ghar by December 2025 (AP p.5). It describes solar EPC as intensely competitive (AP p.3).

15Competitive position

What the document claims, and what it rests on:

• A large order book of ₹20,161 million (DRHP p.58).
• Experience in solar pumps as a sub-contractor before taking direct contracts (AP p.3).

Against that: one customer, one product, and government payment cycles (AP p.11).

16Peers the company named

Source: DRHP p.160. Converted from ₹ lakh. Peer P/E uses prices on 27 February 2026.

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

17Risks, in plain words

• One customer. 86% of recent revenue (AP p.11).
• One product. Solar water pumps are 98% of revenue (AP p.11).
• Cash. Operating cash flow deeply negative (AP p.11).
• Receivables. Government payments can be slow (AP p.11).
• Suppliers. All materials are bought in (AP p.11).
• Region. Operations in Maharashtra and Haryana; order book in Maharashtra and Andhra Pradesh (AP p.11).

18Litigation and regulatory matters

Source: AP p.15. Converted from ₹ lakh.

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:

• How long the main customer takes to pay, in the pages read.
• What the criminal proceeding against the company concerns.
• How much of the ₹20,161 million order book comes from the Maharashtra programme.
• Promoter backgrounds, in the pages read.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. How much of receivables is owed by MSEDCL, and how old is it?
2. What share of the order book depends on the Maharashtra solar-pump scheme?
3. Why did operating cash flow worsen as revenue grew?
4. What does the criminal proceeding against the company concern?
5. Why is the registered office moving from Chhattisgarh to Haryana?

2Sources and cited facts

This study was read from 2 documents the company filed. The 29 figures it cites are listed under the document each came from, with the page and the sentence as printed.