Srit India Limited IPO

01At a glance

What the company does: designs, builds, integrates and then operates software platforms and networks for government departments and public sector bodies, across three verticals, healthcare, electronic governance, and telecommunications and broadband (RHP p.247).

Who pays it: government agencies and public sector entities, 89.41% of FY26 revenue, the rest enterprises (RHP p.252). The top ten customers were 89.36% of FY26 revenue and the top three 57.93% (RHP p.34).

Why it is raising money: ₹1,240.00 million of working capital and ₹128.57 million to modernise and redevelop three existing software products, with a further unquantified amount for acquisitions not yet identified and general corporate purposes, capped together at 35% of gross proceeds (RHP p.122).

How fast it has grown: revenue from ₹2,710.88 million in FY24 to ₹4,499.99 million in FY26, which the company puts at 28.84% a year, and profit after tax from ₹290.76 million to ₹432.89 million, 22.02% a year (RHP p.142).

The one thing to understand: this is a working-capital business that waits to be paid by state governments. Trade receivables and other current assets were ₹4,331.86 million against revenue of ₹4,499.99 million at March 2026, operating cash flow was negative ₹121.01 million in FY26, and the company has gone to the High Court of Kerala to get quarterly instalments released on one of its largest projects (RHP p.83, RHP p.86, RHP p.447).

02The business, in plain words

The company bids for government technology tenders, wins some of them, builds the system, and then runs and maintains it for the length of the contract. Its own software products sit inside those systems: Renaissance Health Enterprise Suite for hospitals, R-Converge for broadband and network operations, and a health insurance rating and settlement engine (RHP p.124). Much of the physical and on-site work is passed to subcontractors.

A state department publishes a tender → the company bids, alone or in a consortium → it supplies, installs and integrates the system, using subcontractors → it operates and maintains the system and is paid in milestones or quarterly instalments.

The company was incorporated in September 1999 as Sobha Renaissance Information Technology Private Limited, renamed SRIT India Private Limited in June 2014, and converted into a public limited company in May 2025 (RHP p.292). It had 177 permanent employees, 7 contract employees and 107 consultants at June 30, 2026, and its material subsidiary RICT India Private Limited holds most of the sales force, 183 permanent employees (RHP p.280, RHP p.284). Average employees across the group were 1,153 in FY26 (RHP p.145). It holds CMMI Maturity Level 5 and a Qatar Financial Centre licence (RHP p.454, RHP p.455).

Earnings equation: Profit ≈ contract value recognised in the year − subcontracting and technical fees − staff cost − interest on the working capital that funds the gap. In FY26 subcontracting and technical fees of ₹3,216.68 million were 71.5% of revenue and 78.92% of total expenses (our arithmetic, RHP p.36, RHP p.84).

03Where the money comes from

Source: RHP p.251.

By customer type, government was 81.84%, 91.34% and 89.41% of revenue across FY24 to FY26 (RHP p.252). By role, projects executed as principal contractor were 33.83% of FY26 revenue, as subcontractor 27.78% and as consortium subcontractor 38.39% (RHP p.280). Geographically, 94.03% of FY26 revenue was Indian, led by Maharashtra at 20.78%, Kerala 19.17% and Tamil Nadu 15.45%, with Qatar the largest overseas market at 4.73% (RHP p.256).

Source: RHP p.34. Revenue does depend on a few customers. The prospectus names only three of the top ten, RailTel Corporation of India, Telecommunications Consultants India and SEEPZ SEZ Authority, and withholds the rest for want of consent or for confidentiality (RHP p.34).

04The growth record

Source: RHP p.145. Borrowings, current and non-current, were ₹222.78 million, ₹512.96 million and ₹361.46 million at the three year ends, a debt-to-equity ratio of 0.31, 0.66 and 0.23 (RHP p.83, RHP p.84, RHP p.145). Return on net worth was 44.11%, 38.76% and 30.23%, and return on capital employed 47.52%, 37.42% and 28.79% (RHP p.145).

Our arithmetic over FY24 to FY26: revenue grew about 28.8% a year, EBITDA about 25.7% and profit about 22.0%; EBITDA margin fell 73 basis points and PAT margin 111 basis points. The company states the same revenue and profit rates, 28.84% and 22.02% (RHP p.142). Net worth almost doubled in FY26, which is share issuance rather than earnings: ₹285.01 million came in from private placements and ₹280.24 million from converting promoter loans into shares (RHP p.86, RHP p.106).

05What the growth is made of

New and scaled-up government mandates in two of the three verticals. Electronic governance revenue rose from ₹1,359.08 million in FY24 to ₹3,077.55 million in FY26, on higher billing from a railway-sector connectivity programme, a state-wide urban administration integration mandate and a new welfare-board engagement; telecommunications and broadband rose from ₹949.23 million to ₹1,091.93 million on state fibre-network work including a new middle-mile mandate (RHP p.251, RHP p.431). Healthcare went the other way, from ₹596.77 million in FY25 to ₹330.51 million in FY26, as an earlier connected-health engagement completed (RHP p.251, RHP p.431).

How the revenue is recognised also changed, and the change is large. Revenue recognised at a point in time rose from ₹357.07 million in FY25 to ₹2,791.53 million in FY26, while revenue recognised over a period of time fell from ₹3,536.40 million to ₹1,708.46 million, which the prospectus attributes to a higher share of supply, installation, testing and commissioning and licence deliverables rather than turnkey work under the percentage-of-completion method (RHP p.431).

The order intake does not run in step with revenue. Bids awarded were 7, 8 and 6 across FY24 to FY26, worth ₹9,666.57 million, ₹881.52 million and ₹3,263.22 million, on 44, 40 and 43 bids submitted, a win rate of 15.91%, 20.00% and 13.95% (RHP p.33). The order book was ₹14,769.56 million, ₹12,160.55 million and ₹11,828.24 million at the three year ends, and ₹12,047.17 million at June 30, 2026 (RHP p.252).

06Earnings quality

Two items need explaining. First, other income of ₹125.39 million in FY26 is nearly a quarter of profit before tax, and a large part of it is interest imputed on the financing component of trade receivables and payables: the cash flow statement adds back ₹71.46 million of interest income on a significant financing component and ₹69.40 million of interest expense on the financing component of trade payables (RHP p.86).

Second, the gap between profit and cash: receivables and other current assets of ₹4,331.86 million at March 2026 are more than the whole year's revenue, and ₹634.24 million of the FY26 cash outflow was the increase in other assets alone (RHP p.83, RHP p.86).

07The balance sheet

At March 31, 2026 total assets were ₹6,141.55 million: trade receivables of ₹2,347.52 million current and ₹240.98 million non-current, other current assets ₹1,743.36 million, other financial assets ₹1,028.74 million, intangible assets ₹272.32 million, intangible assets under development ₹86.60 million, property plant and equipment ₹117.77 million, and cash of ₹55.87 million with a further ₹161.07 million in other bank balances (RHP p.83). Against that, trade payables were ₹2,349.22 million, borrowings ₹361.46 million, lease liabilities ₹86.61 million and other financial liabilities ₹606.40 million, leaving equity of ₹1,938.44 million of which ₹1,932.72 million is attributable to owners (RHP p.83, RHP p.84).

Borrowings as at June 30, 2026 were ₹425.04 million of fund-based debt on a sanctioned ₹1,781.73 million, of which ₹90.59 million is unsecured loans from the three promoters at 9.00% repayable on demand, plus ₹560.56 million of non-fund-based facilities, bank guarantees and surety bonds, giving ₹985.60 million in total (RHP p.406). The promoters have given personal guarantees of ₹953.30 million (RHP p.62). Contingent liabilities at March 2026 came to ₹633.77 million: bank guarantees ₹301.47 million, surety bonds ₹214.84 million, civil litigation ₹44.86 million, disputed goods and services tax ₹33.23 million, service tax ₹24.92 million, TDS defaults ₹8.38 million and disputed income tax ₹6.07 million (our arithmetic, RHP p.88).

After the issue: at ₹130 the fresh issue adds ₹2,184.00 million of gross proceeds to net worth of ₹1,932.72 million, more than doubling it, with ₹1,240.00 million of it earmarked for working capital across FY27 and FY28 (our arithmetic, RHP p.123).

08What the money is for

Source: RHP p.122, RHP p.123.

The product money is split three ways: ₹35.73 million to modernise and redevelop R-Converge, the broadband and network operations suite; ₹42.56 million to modernise Renaissance Health Enterprise Suite and build an outpatient consultation platform called OP Live; and ₹50.28 million for the health insurance and revenue cycle management engine (RHP p.124). The company has not yet placed orders or signed definitive agreements for the equipment and personnel this will need (RHP p.70).

The fund requirement has not been appraised by any bank or financial institution (RHP p.123). Of the residual object, at most 25% of gross proceeds may go to acquisitions, none of which is identified, and at most 25% to general corporate purposes (RHP p.122).

Into the business the whole issue: up to 1,68,00,000 new shares, ₹2,184.00 million at the upper band and ₹2,066.40 million at the lower (our arithmetic, RHP p.104). To selling shareholders nothing: there is no offer for sale (RHP p.81).

09Who is selling

No one. The issue is a fresh issue of up to 1,68,00,000 shares by the company, and the promoters and promoter group will not participate in it or receive any proceeds (RHP p.81, RHP p.121).

10Promoters

The promoters are Dr. Nambiar Raghavan Madhusoodan, aged 67, Managing Director and Chief Executive Officer; Prasaktha Vakkiyl Nambiar, aged 60, Whole-time Director; and Martin Poovakkulam Chacko, aged 59, Whole-time Director (RHP p.325). Together the three hold 4,02,26,747 shares, 84.74% of the capital (RHP p.325). The prospectus records 26 years in information technology for Dr. Nambiar Raghavan Madhusoodan, over 22 years in employee training and development for Prasaktha Vakkiyl Nambiar, and over 35 years in the IT sector for Martin Poovakkulam Chacko (RHP p.142). All three were named as promoters by a board resolution of December 10, 2025, and the prospectus records no change of control since incorporation (RHP p.326).

Promoter economics, all of it from the capital structure chapter (RHP p.105, RHP p.106, RHP p.109, RHP p.117): the stated average cost of acquisition is nil for Dr. Nambiar Raghavan Madhusoodan and for Martin Poovakkulam Chacko, on the ground that their holdings came mainly through off-market transfers, and ₹2.60 a share for Prasaktha Vakkiyl Nambiar. A 5:1 bonus issue in March 2005 multiplied the early holdings.

Unsecured promoter loans were converted into shares twice, 1,33,42,407 shares at ₹10 in March 2022 and 40,03,353 shares at ₹70 in April 2025. In September 2024 the company bought back 67,12,400 shares from the three promoters at ₹27 each, ₹181.24 million in total, and immediately afterwards the ₹10 share was split into two ₹5 shares. In February 2025 Dr. Nambiar Raghavan Madhusoodan transferred 18,00,000 shares to NNM Securities Private Limited at ₹64.

Promoter remuneration was ₹22.71 million in FY24 and ₹30.50 million in FY26 (our arithmetic, RHP p.90, RHP p.91). The company rents part of its Bengaluru premises from Dr. Nambiar Raghavan Madhusoodan and Prasaktha Vakkiyl Nambiar (RHP p.46). Three of the group's entities were struck off in June 2025 and the promoters disassociated from them (RHP p.327). The prospectus records no criminal proceedings, no material civil proceedings, no tax proceedings and no SEBI or exchange action against the promoters (RHP p.451).

11Who already owns it

Source: RHP p.117. The company had 340 shareholders at the date of the prospectus (RHP p.120). Two years earlier the three promoters held 100% between them (RHP p.118). The outside holders came in through four private placements between August and November 2025, all at ₹95 a share: 11,36,315 shares in August, 4,23,157 in September, 6,90,000 in October and 7,50,528 in November, 30,00,000 shares in total (RHP p.106, RHP p.107).

NNM Securities Private Limited was the largest subscriber across those rounds and also bought 18,00,000 shares from the managing director at ₹64 in February 2025 (RHP p.107, RHP p.109). On full allotment the count rises to 6,42,71,757 shares and the promoters would hold about 62.6% (our arithmetic, RHP p.104, RHP p.325).

An employee stock option plan adopted in 2025 allows up to 30,00,000 options; none is outstanding at the date of the prospectus (RHP p.108, RHP p.121).

12What changed just before the IPO

• The company became a public company in May 2025, having been private since 1999 (RHP p.292).
• The share was split from ₹10 to ₹5 on a record date of September 20, 2024 (RHP p.106).
• The company bought back 67,12,400 shares from its three promoters at ₹27 each in September 2024, ₹181.24 million, and paid out ₹207.84 million of cash in FY25 on that account (RHP p.86, RHP p.106).
• Promoter loans of ₹280.24 million were converted into 40,03,353 shares at ₹70 in April 2025 (RHP p.106).
• Four private placements at ₹95 a share between August and November 2025 raised ₹285.00 million from funds and corporate investors (RHP p.86, RHP p.106, RHP p.107).
• The statutory auditor changed. Sethia Prabhad Hegde & Co resigned on June 27, 2025 and Brahmayya & Co was appointed on July 25, 2025 for five years (RHP p.96).
• Revenue recognition shifted from over-time to point-in-time: ₹357.07 million to ₹2,791.53 million recognised at a point in time between FY25 and FY26 (RHP p.431).
• Operating cash flow turned negative in FY26, at ₹121.01 million against an inflow of ₹179.66 million in FY25 (RHP p.86).
• Two group companies were struck off in June 2025, SRIT Enterprise Solutions and SRIT Healthcare Solutions (RHP p.327).
• Dues to micro and small enterprises rose from 12 creditors and ₹2.34 million at September 2025 to 53 creditors and ₹291.47 million at March 2026 (DRHP p.384, RHP p.452).
• The company went to court over unpaid instalments on the Safe Kerala traffic enforcement project in May 2026 and obtained an interim order in June 2026 (RHP p.447).

13Capacity and expansion

Nothing is manufactured; capacity is people, products and the ability to fund a contract until it is paid. Average employees across the group were 916, 1,040 and 1,153 in FY24 to FY26, and revenue for each average employee ₹2.96 million, ₹3.74 million and ₹3.90 million (RHP p.145). The average number of active orders was 120, 93 and 104, and the average number of clients served 75, 61 and 65 (RHP p.145).

The issue adds capacity in two ways the prospectus states: ₹1,240.00 million of working capital, which is what lets the company bid for and carry more contracts, and ₹128.57 million to rebuild three products, including a move of the hospital suite to a software-as-a-service architecture (RHP p.122, RHP p.125). The prospectus does not say how many additional contracts or employees the money is expected to support.

14Market size and industry structure

As claimed: the Dun & Bradstreet report titled "Report on Indian Information Technology & Business Process Management (IT-BPM) Sector" dated August 27, 2026, commissioned and paid for by the company, puts Indian IT-BPM industry revenue at USD 315.0 billion in FY2026 and expects USD 378.0 billion by FY2030, and records the sector as about 7.5% of India's gross value added in FY2024 (RHP p.183, RHP p.233).

The part that is addressable: government and public sector technology contracts in the three verticals the company works in, in the Indian states where it is present and in a few overseas markets. The prospectus does not size that part.

What the company is today: ₹4,499.99 million of FY26 revenue and an order book of ₹12,047.17 million at June 30, 2026, against more than 103 projects worth ₹12,347.16 million executed in the last decade (RHP p.145, RHP p.252).

On structure, the commissioned report describes government clients placing more weight on past implementation record, cybersecurity readiness and data localisation, and the ability to run large multi-stakeholder projects as the differentiator; most work is awarded by competitive tender, which the prospectus itself says puts pressure on margins (RHP p.32, RHP p.233).

15Competitive position

Source: RHP p.144. Every named peer is between 2.2 and 9.5 times the company's size by revenue, and the company's return on net worth is the highest in the table (our arithmetic, RHP p.144).

Why a department awards work here rather than elsewhere, on the prospectus's own account: twenty-six years of implementations for central and state bodies, its own products rather than only integration of others', CMMI Level 5 and a set of ISO certifications, and a record of running systems after building them (RHP p.141, RHP p.455). Against that, the company does not retain full ownership of some software it develops for government clients, which limits reuse, and RailTel Corporation of India appears in the prospectus both as a named peer and as one of its named top-ten customers (RHP p.34, RHP p.64, RHP p.144).

16Peers the company named

Peers named in the offer document: Mastek, RailTel Corporation of India, Protean eGov Technologies, Allied Digital Services and Aurionpro Solutions (RHP p.144).

All five are Indian listed IT services or e-governance companies, which makes the set a reasonable one by activity, and all are larger. At NSE closing prices of September 17, 2026, their price to earnings ratios on FY26 diluted earnings were Mastek 12.59, Allied Digital Services 15.52, Aurionpro Solutions 18.62, Protean eGov Technologies 19.80 and RailTel Corporation of India 24.03, an average of 18.31 and a median of 18.62 (RHP p.143, RHP p.144).

Two of the five, RailTel Corporation of India and Protean eGov Technologies, supply government departments as this company does; Mastek and Aurionpro Solutions are mainly enterprise and export businesses several times its size. In the draft the same five were priced at an average of 26.95 times FY25 earnings on January 22, 2026 (DRHP p.141, DRHP p.142).

17Valuation at the issue price

At the upper band of ₹130, with all 1,68,00,000 new shares added to the 4,74,71,757 in issue (our arithmetic, RHP p.104):

Source: RHP p.83, RHP p.104, RHP p.143, RHP p.145. At the lower band of ₹123 the market capitalisation is ₹7,905.43 million (our arithmetic, RHP p.104). Enterprise value at the upper band, taking March 2026 borrowings of ₹361.46 million and cash of ₹55.87 million, is ₹8,660.92 million, 13.4 times FY26 EBITDA of ₹647.74 million (our arithmetic, RHP p.83, RHP p.145). Including the gross proceeds, book value after the issue would be about ₹4,116.72 million, ₹64.05 a share, and the upper band 2.0 times that (our arithmetic, RHP p.123, RHP p.145).

Against the five peers the prospectus itself names, at NSE closing prices of September 17, 2026: 12.59 to 24.03 times FY26 diluted earnings, an average of 18.31 and a median of 18.62 (RHP p.143). On the enlarged share count the issue is at 19.3 times FY26 profit, 4% above that median and inside the peer range; on the prospectus's own per-share basis it is at 13.7 times, 26% below the median (our arithmetic, RHP p.143, RHP p.145).

18Risks, in plain words

Customers, a handful of them, most of them government: the top ten customers were 89.36% of FY26 revenue and government tenders 89.41% (RHP p.34, RHP p.252) → the loss of one contract or a change in a state's procurement moves the whole company → the top three alone were 57.93% of FY26 revenue (RHP p.34).

Getting paid: receivables and other current assets of ₹4,331.86 million at March 2026 exceed a full year's revenue, and receivable days were 210 (RHP p.83, our arithmetic) → the company funds the state's delay out of its own balance sheet → operating cash flow was negative ₹121.01 million in FY26 (RHP p.86).

One project's instalments already in court: quarterly instalments of ₹117.90 million payable to KELTRON, of which ₹75.60 million is due onward to the company on the Safe Kerala project, were not released, and the company obtained an interim order on June 19, 2026 (RHP p.447) → payment depends on a state releasing funds down a chain → the underlying project is ₹2,358.20 million payable in 20 quarterly instalments (RHP p.447).

Suppliers, who do most of the work: subcontractor costs were 75.42%, 80.87% and 78.92% of total expenses in FY24 to FY26 (RHP p.36) → the company carries the client's risk for work it does not perform itself → it cannot state what percentage of projects is subcontracted (RHP p.36).

Order book, and whether it converts: the order book fell from ₹14,769.56 million at March 2024 to ₹11,828.24 million at March 2026 (RHP p.252) → projects in it can be cancelled, delayed or cut back → bids awarded were 6 of 43 submitted in FY26 (RHP p.33, RHP p.41).

Financial, guarantees and bonds: non-fund-based facilities of ₹560.56 million at June 30, 2026, and contingent liabilities of ₹633.77 million (our arithmetic, RHP p.88, RHP p.406) → a called guarantee becomes a cash liability at once → the promoters' personal guarantees stand behind ₹953.30 million of facilities (RHP p.62).

Promoters and related parties: unsecured promoter loans of ₹90.59 million are repayable on demand, and related-party transactions were 9.57% of FY26 revenue (RHP p.62, RHP p.93) → the company's funding and premises depend on its promoters → the same promoters took ₹181.24 million out through the September 2024 buyback (RHP p.106).

Issue-specific: no orders have been placed for the equipment and personnel the product spending needs, the acquisitions the proceeds may fund are not identified, and the fund requirement has not been appraised by a bank (RHP p.70, RHP p.71, RHP p.122).

19Litigation and regulatory matters

There are no criminal proceedings and no regulatory or statutory action against the company, and no criminal, civil, tax or regulatory proceedings against the promoters (RHP p.446, RHP p.451). A legal notice of August 5, 2025 alleges that Dr. Chandan Dash, a non-executive director, guaranteed a ₹40.00 million mortgage loan and that a cheque for the ₹62.30 million claimed was dishonoured; a reply disputing the notice was issued on August 20, 2025 (RHP p.450).

A motor accident compensation claim is pending against the Chief Financial Officer, Manesh M George, as owner of the vehicle involved (RHP p.451). At March 2026 the company had 4 material creditors owed ₹1,726.38 million and 53 micro and small enterprise creditors owed ₹291.47 million (RHP p.452).

20Related-party transactions

Source: RHP p.90, RHP p.91, RHP p.93. The promoter loan, remuneration, interest and rent rows are our arithmetic on the recipients the table lists.

Almost all of the traffic is with the three promoters, and it runs both ways: loans in at 9.00% interest, remuneration and rent out, ₹181.24 million paid out in the FY25 buyback, and ₹280.24 million of loans turned into shares at ₹70 in April 2025 (RHP p.90, RHP p.91, RHP p.106).

Two smaller recurring items involve relatives: professional fees to Liny Martin, a relative of a director, of ₹3.45 million, ₹4.89 million and ₹1.20 million across the three years for software development work through RICT India, and manpower services from Village Knowledge Development Centre of ₹1.29 million, ₹2.49 million and ₹4.16 million (RHP p.91, RHP p.92).

What appeared in the two years before the filing: the promoter borrowings and their conversion, the buyback, sitting fees to five newly appointed independent and other directors, and salaries to two new company secretaries and the chief financial officer (RHP p.91, RHP p.92).

21What the offer document does not say

Seven of the top ten customers are not named, for want of consent or for confidentiality, so the concentration cannot be traced to a named counterparty. The share of projects that is subcontracted is not stated; the prospectus says it is difficult to ascertain. Revenue is reported on a bundled basis for products and services, so the product share of revenue is not given.

The order book is not broken into how much is expected to convert in the next year. The composition of ₹1,743.36 million of other current assets is not set out on the pages read. The parts of the ₹1,240.00 million working-capital requirement are not itemised. No acquisition target is identified for the money that may go to acquisitions, and the amounts for that object, for general corporate purposes and for issue expenses are left blank.

The company has paid no dividend in the last three fiscal years and states no dividend intention.

22Five questions for management

1. How much of the ₹11,828.24 million order book at March 2026 is expected to be recognised as revenue in FY27, and how much of it is operations and maintenance rather than build?
2. What is inside other current assets of ₹1,743.36 million, and how much of it is unbilled work on government contracts?
3. What are the payment terms and the actual days taken to be paid by each of the three largest customers?
4. How much of FY26 revenue came from the point-in-time recognition change, and what would FY26 revenue have been on the FY25 basis?
5. What kind of acquisition is the unquantified object intended for, and what will be done with the money if none is found?

24Draft to final: what changed

The fresh issue of up to 1,68,00,000 shares, the absence of an offer for sale, the three objects, the peer set, the promoters and the sole lead manager, Choice Capital Advisors Private Limited, are unchanged, and the company's tax proceedings stand at 7 cases and ₹80.18 million in both documents (DRHP p.93, DRHP p.381, RHP p.81, RHP p.96, RHP p.448).

1Sources and cited facts

This study was read from 1 document the company filed. The 106 figures it cites are listed under the document each came from, with the page and the sentence as printed.