Steel Infra Solutions Company Limited IPO

01At a glance

What the company does — an integrated structural steel solutions provider: design, engineering, procurement, fabrication and erection of steel structures for industrial plants, airports, high-rise buildings, metro and railway structures, data centres and other projects (DRHP p.27). Since FY2018 it has executed 187 projects and delivered 261,735 tonnes of fabricated steel (DRHP p.27).

Who pays it — EPC contractors, project management consultants and end users; the largest customer, Tata Projects, was 20.64% of FY25 revenue and the top ten 73.31% (DRHP p.41, DRHP p.42). Other FY25 customers include Adani Power, Megha Engineering & Infrastructures, Offshore Infrastructures, ArcelorMittal Nippon Steel India and Larsen & Toubro (DRHP p.42).

Why it is raising money — ₹453.70 million for capital spending at its Vadodara, Hyderabad and Bhilai units, ₹270.00 million for working capital, and the rest for general purposes (our arithmetic, DRHP p.29).

How fast it has grown — revenue from ₹5,117 million in FY23 to ₹5,735 million in FY24 and ₹6,361 million in FY25; tonnes dispatched from 44,510 to 63,372 (DRHP p.27, DRHP p.146).

The one thing to understand — a fabricator that has added capacity faster than work to fill it, with most of the offer going to existing holders. Installed capacity rose from 54,400 to 100,000 tonnes a year in FY25 and utilisation fell from 86.10% to 62.05%; of the offer, ₹960 million is new money and the rest is 14,240,473 shares from promoters and investors (DRHP p.28, DRHP p.127, DRHP p.146).

02The business, in plain words

A structural steel fabricator takes a project's steel design, buys steel plates and sections, cuts, welds and paints them into columns, beams and trusses in its workshops, ships them to site and, where the contract includes it, erects them.

A power-plant EPC contractor needs the steel frame for a boiler building → it awards the fabrication order to Steel Infra Solutions → the company designs the connections, fabricates the members in its units and ships them → the contractor pays on the agreed terms.

Earnings equation: Profit ≈ tonnes dispatched × (price per tonne − steel and fabrication cost) − overheads − interest. EBITDA per tonne dispatched was ₹10,463 and EBITDA margin 10.42% in FY25 (DRHP p.146).

03Where the money comes from

Source: DRHP p.41, DRHP p.236.

04The growth record

Source: DRHP p.31, DRHP p.64, DRHP p.146.

05What the growth is made of

Volume. Tonnes dispatched grew 19.32% a year against revenue growth of 11.49% a year from FY23 to FY25 (DRHP p.27). EBITDA per tonne rose from ₹9,146 to ₹10,463 (DRHP p.146). Tata Projects' revenue rose from ₹239.13 million in FY23 to ₹1,313.04 million in FY25, and Adani Power and Offshore Infrastructures were new in FY25 (DRHP p.42).

06Earnings quality

Operating cash flow of ₹1,210.89 million over FY23 to FY25 was above profit of ₹753.40 million (our arithmetic, DRHP p.31, DRHP p.64). Payable days rose from 106.81 to 134.66 while receivable days rose from 61.77 to 66.89 and inventory days from 64.44 to 71.11 (DRHP p.146). Fixed-asset turnover fell from 8.88 to 4.98 times as new units were added (DRHP p.146).

07The balance sheet

Source: DRHP p.31, DRHP p.146. Non-fund credit limits of ₹4,420 million, of which ₹2,622 million was used, stood at March 2025 (DRHP p.146).

08What the money is for

Source: DRHP p.29. The Vadodara expansion is to add 15,000 tonnes a year (DRHP p.127).

09Who is selling

Source: DRHP p.28, DRHP p.29, DRHP p.30. The last row is our arithmetic. Shares acquired in the last year cost a weighted average of ₹170.89, all at ₹200; over three years the average was ₹100.03, in a range of ₹15 to ₹200 (DRHP p.38).

10Promoters

The promoters are Ravikant Uppal, Rajagopal Kannabiran, Ranjan Sharma, Zarksis Jahangir Parabia, Surinder Choudhari, Sunita Choudhari, Aman Choudhari, Arun Choudhari, Akash Choudhari and Surin Holdings LLP, who hold 46.12% together; the five Choudhari promoters hold no shares directly (DRHP p.29, DRHP p.30). No proceedings are listed against the promoters (DRHP p.32).

11Who already owns it

Source: DRHP p.29, DRHP p.30. The last row is our arithmetic.

12What changed just before the IPO

• Capacity — Vadodara started in April 2024 and Hyderabad in March 2025, taking capacity to 100,000 tonnes a year (DRHP p.127, DRHP p.146).
• Customers — 22 new customers in FY25, providing 40% of revenue (DRHP p.236).
• Debt — borrowings cut to ₹135.79 million (DRHP p.31).

13Capacity and expansion

Source: DRHP p.127, DRHP p.146. Two of the Bhilai units are held in the names of Adarsh Udyog and Amit Engineering Corporation, and the company operates them under manufacturing agreements, with the approvals in those firms' names (DRHP p.47).

14Market size and industry structure

The CRISIL report cited in the offer document puts India's structural steel market at ₹1,009 billion in FY2025, up from ₹504 billion in FY2019, and projects the steel structure fabrication market at ₹1,700 to 1,750 billion by FY2030 (DRHP p.27). Those projections are CRISIL's, and newboard has not tested them.

15Competitive position

What the document claims, and what it rests on:

• Integrated service — design, fabrication and erection under one contract (DRHP p.27).
• Order book — ₹8,111.35 million, or 76,567 tonnes, at March 2025 (DRHP p.146).
• Large EPC customers — Tata Projects, Larsen & Toubro and others (DRHP p.42).

Against that: customer concentration, one product line, low utilisation of new capacity, and leased units run under third-party approvals (DRHP p.33, DRHP p.47, DRHP p.146).

16Peers the company named

Source: DRHP p.145. The peers' average P/E, excluding Everest Industries, is 30.15 (DRHP p.144).

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

17Risks, in plain words

• Customers. Ten customers were 73% of FY25 revenue, one of them 21% (DRHP p.41).
• One business. All revenue comes from fabricated steel structures (DRHP p.33).
• Idle capacity. Utilisation fell to 62% after capacity nearly doubled (DRHP p.146).
• Leased units. Two Bhilai units depend on agreements with their owners (DRHP p.47).
• Order book. Orders may be changed, cancelled or suspended (DRHP p.25).

18Litigation and regulatory matters

Source: DRHP p.32.

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:

• Who MK Ventures and Meridian Investments are, beyond their holdings, in the pages read.
• How the five Choudhari promoters relate to Surin Holdings LLP, in the pages read.
• What the company pays Adarsh Udyog and Amit Engineering Corporation under the manufacturing agreements, in the pages read.
• How much of the order book is with the top customers, in the pages read.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. When will the new Vadodara and Hyderabad units reach the utilisation of the Bhilai units?
2. Why add 15,000 tonnes in Vadodara with capacity 62% used?
3. What happens to Bhilai output if a manufacturing agreement ends?
4. Why did repeat-customer revenue fall from 87% to 59% in FY25?
5. Why are holders offering about 35% of the company when the fresh issue is ₹960 million?

1Sources and cited facts

This study was read from 1 document the company filed. The 26 figures it cites are listed under the document each came from, with the page and the sentence as printed.