Srit India Limited IPO

01At a glance

What the company does — custom application development, system integration and operation of digital platforms for government entities and enterprises in India and some overseas markets, over 26 years (DRHP p.32).

Who pays it — government entities, which were 92.23% of revenue in the six months to September 2025; the top ten customers were 94.12% (DRHP p.30). E-governance projects were 77.94% of revenue in that period (DRHP p.30).

Why it is raising money — ₹153.57 million to modernise and redevelop existing products, ₹1,240.00 million for working capital, and the rest for unidentified acquisitions, other strategic initiatives and general purposes (DRHP p.33).

How fast it has grown — revenue from ₹1,518 million in FY23 to ₹3,893 million in FY25, and ₹2,326 million in the six months to September 2025 (DRHP p.35).

The one thing to understand — a government contractor whose cash sits with its clients. Trade receivables and contract assets were ₹3,231.31 million at September 2025, 58.96% of total assets, and operating cash flow was negative ₹175.17 million in the six months (DRHP p.49, DRHP p.367).

02The business, in plain words

A government IT contractor bids for tenders to build or run a digital service — a citizen-services portal, a records system, network connectivity — delivers it with its own staff and subcontractors, and is paid against milestones that the department certifies.

A state government tenders an e-district services platform → SRIT bids and wins → it builds, integrates and runs the system, sometimes with partners on a back-to-back basis → it bills against milestones and waits for the department's payments.

The company had ₹270.37 million of bank guarantees outstanding to customers at September 2025 (DRHP p.36).

Earnings equation: Profit ≈ contract billings − staff and subcontractor cost − interest on working capital. Profit after tax was 8.57% of revenue in the six months (our arithmetic, DRHP p.35).

03Where the money comes from

Source: DRHP p.30. H1 FY26 is six months.

04The growth record

Source: DRHP p.35, DRHP p.367. H1 FY26 is six months.

05What the growth is made of

E-governance contracts, which went from 11.46% of revenue in FY23 to 77.94% in the six months (DRHP p.30). Revenue grew 78% in FY24 and 44% in FY25 (our arithmetic, DRHP p.35).

06Earnings quality

Receivables and contract assets have grown with revenue: from ₹1,708.45 million in March 2023 to ₹3,231.31 million in September 2025, with contract assets — work done but not yet billable — rising from ₹299.01 million to ₹1,261.58 million (DRHP p.49). Over FY23 to September 2025 the company booked ₹976 million of profit and generated ₹455 million from operations (our arithmetic, DRHP p.35, DRHP p.367). There are no auditor qualifications that have not been given effect in the restated accounts (DRHP p.35).

07The balance sheet

Source: DRHP p.35, DRHP p.49.

Net worth rose ₹630.19 million in the six months to September 2025, of which profit was ₹199.24 million, and share capital rose from ₹202.35 million to ₹230.16 million; share capital had fallen from ₹269.47 million to ₹202.35 million during FY25 (our arithmetic, DRHP p.35). The pages read do not explain either change.

08What the money is for

Source: DRHP p.33.

Acquisitions may use up to 25% of gross proceeds, and acquisitions plus general purposes up to 35% (DRHP p.33).

09Who is selling

Nobody. The issue is a fresh issue only, of up to 16,800,000 shares of ₹5 face value (DRHP p.32).

10Promoters

The promoters are Dr. Nambiar Raghavan Madhusoodan, Prasaktha Vakkiyl Nambiar and Martin Poovakkulam Chacko (DRHP p.32).

11Who already owns it

Source: DRHP p.33. The last row is our arithmetic.

12What changed just before the IPO

• Mix — e-governance rose to 78% of revenue (DRHP p.30).
• Cash — operating cash flow turned negative in the six months (DRHP p.367).
• Capital — share capital fell in FY25 and rose again in the six months (DRHP p.35).
• Dispute — a contract with AdvantageSB Communication terminated in January 2025 and now in arbitration (DRHP p.381).

13Capacity and expansion

Capacity is people and subcontractors; the proceeds fund working capital, product modernisation and possible acquisitions not yet identified (DRHP p.33).

14Market size and industry structure

The D&B report cited in the offer document puts Indian IT-BPM industry revenue at $282.6 billion in FY25 and projects $378 billion by FY30 (DRHP p.32). Those projections are D&B's, and newboard has not tested them.

15Competitive position

What the document claims, and what it rests on:

• A 26-year record of large government projects, citing D&B (DRHP p.32).
• Presence in multiple states in digital-inclusion programmes (DRHP p.32).

Against that: dependence on government tenders and a few customers, long payment cycles, and disputes with project partners (DRHP p.30, DRHP p.49, DRHP p.381).

16Peers the company named

Source: DRHP p.143. Peer P/E uses prices on 22 January 2026.

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

17Risks, in plain words

• Government dependence. 92% of recent revenue (DRHP p.30).
• Customers. Ten customers were 94% (DRHP p.30).
• Receivables. 59% of total assets (DRHP p.49).
• Tenders. Winning and keeping government contracts (DRHP p.30).
• Acquisitions. Part of the proceeds for targets not yet identified (DRHP p.33).
• Partners. Back-to-back payment disputes with subcontractors (DRHP p.380).

18Litigation and regulatory matters

Source: DRHP p.35, DRHP p.36. The company's claim is against AdvantageSB Communication, which it engaged in 2022 to supply 4G connectivity for about 15,000 offsite ATMs and whose contract it terminated in January 2025 (DRHP p.381). Galmax Technologies has begun arbitration against the company over ₹25.16 million on the Chhattisgarh e-District 2.0 project (DRHP p.380).

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 government clients take to pay, beyond the receivables totals, in the pages read.
• Why share capital fell in FY25 and rose in the six months.
• Which acquisitions the proceeds might fund.
• The end client of the ATM connectivity project, in the pages read.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. How old are the ₹1,970 million of trade receivables, and which departments owe them?
2. What are the contract assets of ₹1,262 million, and when can they be billed?
3. What happened in FY25 to reduce share capital, and who subscribed in the six months?
4. What is the status of the ATM connectivity project after the termination?
5. What kind of acquisitions are planned, and in which sectors?

1Sources and cited facts

This study was read from 1 document the company filed. The 28 figures it cites are listed under the document each came from, with the page and the sentence as printed.