Technopaints And Chemicals Limited IPO

01At a glance

What the company does: manufactures paint products (putties, textures, primers, emulsions and enamels) at Cheriyal and Pashamylaram in Telangana and executes turnkey paint supply and application projects for developers, builders and government programmes; turnkey projects were 91.25% of FY26 revenue (DRHP p.30, DRHP p.283, AP p.5).

Who pays it: real estate developers, builders and contractors on government programmes. FY26's top ten customers, 81.90% of revenue, include HES Infra Private Limited, HIPL-FPPL (JV), Telangana Samagra Shiksha Society, Bhavya Constructions Private Limited, Megha Engineering & Infrastructures Limited, APR Group, GHR Infra Developers LLP and Ramky Infrastructure; two are not named (DRHP p.31).

Why it is raising money: ₹1,491.39 million towards a greenfield paint plant and innovation facility at Ibrahimpatnam, Telangana, and ₹799.86 million for working capital, plus general corporate purposes capped at 25% of the gross proceeds (DRHP p.132). The ₹1,750.00 million offer for sale goes to the selling shareholders, not the company (DRHP p.131).

How fast it has grown: revenue from ₹1,358.78 million in FY24 to ₹3,505.04 million in FY26, about 60.6% a year, and profit after tax from ₹147.75 million to ₹377.75 million, about 59.9% a year (our arithmetic, DRHP p.87).

The one thing to understand: the growth came from government school painting work in Telangana. Turnkey revenue from government programmes went from ₹242.27 million in FY24 to ₹2,453.60 million in FY26, 76.72% of turnkey revenue, while non-government turnkey revenue fell from ₹869.34 million to ₹744.63 million (DRHP p.39). Receivables went from 147 to 214 days of revenue over the same years (DRHP p.38).

02The business, in plain words

A builder finishing a housing tower, or a state programme repainting schools, needs walls levelled, primed and painted. This company makes the putty, texture, primer and paint, and then sends painters to apply it, so the customer buys one contract for material and labour together (DRHP p.250, DRHP p.279).

A developer or a government contractor awards a painting project → the company makes putty, texture, primer and emulsion at its Telangana plants → channel partners deploy painters on site under the company's supervisors → the company is paid a fixed contract price as work is measured and certified.

The work is done through 24 channel partners, 19 site engineers, 78 supervisors and 11 coordinators, with more than 2,800 verified painters associated with it at July 31, 2026; the painters are not its employees (DRHP p.253, DRHP p.45). Painting service expenses, what it pays for that labour, were ₹1,285.98 million, 36.69% of FY26 revenue (DRHP p.44). Contracts are generally fixed price and usually carry no change-order mechanism (DRHP p.35, DRHP p.36).

A smaller part, ₹306.81 million or 8.75% of FY26 revenue, is paint sold on its own to business customers and through 25 franchise stores at March 2026, a model started in FY25 (DRHP p.30, DRHP p.161). Sales through franchisees were ₹36.74 million in FY26 (DRHP p.61). The brand is "Technopaints", with sub-brands such as Kavach, Protect+ and Ecomate, and Sachin Tendulkar is the brand ambassador (DRHP p.272, DRHP p.253).

In August 2026 it bought Richwaves Specialities Private Limited, which offers luxury decorative finishes; the company makes those products and supplies them to Richwaves (DRHP p.278, DRHP p.279).

Earnings equation: Revenue ≈ turnkey projects executed × value per project + paint sold on its own. Projects completed were 23 in FY24, 48 in FY25 and 49 in FY26, and the company puts average order value per project at ₹26.11 million in FY25 and ₹45.90 million in FY26 (DRHP p.257, DRHP p.463). It does not give painted area or price per square foot by year.

03Where the money comes from

Source: DRHP p.30, DRHP p.39. Telangana was 98.77%, 97.88% and 99.59% of turnkey revenue in the three years (DRHP p.32). Of non-government turnkey revenue, residential projects were 87.01% in FY26 (DRHP p.60). Government work includes the "Mana Ooru, Mana Badi / Mana Basthi, Mana Badi" school programme of the Government of Telangana, done partly through HIPL-FPPL (JV), a joint operation in which the company has a 20% share and HES Infra Private Limited 80% (DRHP p.31, DRHP p.320).

Source: DRHP p.31. Revenue depends on a few customers, more so each year: in FY26 five customers took 76.85% of it. There are no long-term agreements; each project is contracted separately (DRHP p.31). The document does not name the largest customer. The company's 20% share of revenue from the HIPL-FPPL (JV) joint operation was ₹997.75 million in FY26, 28.47% of revenue, and is listed as a related-party transaction (DRHP p.92, DRHP p.409). On the supply side, the top ten suppliers were 61.46% of FY26 purchases and the largest 21.55% (DRHP p.34).

04The growth record

Source: DRHP p.87, DRHP p.88, DRHP p.162, AP p.10.

Our arithmetic over FY24 to FY26: revenue grew about 60.6% a year (our arithmetic, DRHP p.87), operating EBITDA about 65.4% a year (our arithmetic, DRHP p.162) and profit after tax about 59.9% a year (our arithmetic, DRHP p.87). Operating EBITDA margin moved from 16.2% to 17.2%, up 98 basis points, and PAT margin from 10.87% to 10.78%, down 9 basis points (DRHP p.162). In rupees, revenue went from ₹135.9 crore to ₹350.5 crore and profit after tax from ₹14.8 crore to ₹37.8 crore (DRHP p.87).

Operating cash flow was ₹258.25 million in FY26, about ₹25.8 crore, after outflows in FY24 and FY25 (DRHP p.88). Other income of ₹19.23 million was 3.8% of FY26 profit before tax of ₹504.98 million (our arithmetic, DRHP p.87). Net debt to operating EBITDA was 0.06 times in FY26, about 0.1×, and debt to equity 0.73 times, about 0.7× (DRHP p.162). Return on average capital employed was 31.0% in FY26 (DRHP p.162). Net working capital was 115 days of revenue in FY26 (DRHP p.38). Contingent liabilities were ₹171.45 million at March 2026, about ₹17.1 crore: ₹86.12 million of income tax demands and an ₹85.33 million performance bank guarantee (DRHP p.89).

Profit growth was uneven: PAT rose only 12.7% in FY25 on revenue up 53.15%, when the tax charge was ₹118.10 million on profit before tax of ₹284.64 million, about 41.5%, against about 20.3% in FY24 (our arithmetic, DRHP p.87, DRHP p.162). Gross margin fell from 33.71% to 28.16% over the three years as turnkey work, which carries painting labour, grew in the mix (DRHP p.162).

The year end is March 31 throughout; FY24 and FY25 were first prepared under Indian GAAP and restated to Ind AS (DRHP p.24). The two net worth figures for FY25 differ slightly: ₹840.90 million on the balance sheet and ₹840.60 million in the KPI table (DRHP p.86, DRHP p.162).

05What the growth is made of

Revenue rose ₹2,146.26 million from FY24 to FY26 (our arithmetic, DRHP p.30). Government programme turnkey revenue added ₹2,211.33 million and product sales ₹59.64 million, while non-government turnkey revenue fell ₹124.71 million (our arithmetic, DRHP p.30, DRHP p.39). So more than the whole increase came from government programme work, most of it in Telangana.

The number of projects hardly explains it: 48 were completed in FY25 and 49 in FY26, and the company attributes FY26 growth to government and residential work and to a higher average order value per project, ₹45.90 million against ₹26.11 million (DRHP p.463). The joint operation alone contributed ₹997.75 million to FY26 revenue against nil in FY25 (DRHP p.92).

Production rose too. Powder paint output went from 25,950.23 MT in FY24 to 67,980.02 MT in FY26 and liquid paint from 4,701.08 KL to 6,122.59 KL (DRHP p.161). The document gives no painted area, rate per square foot or price per litre by year, so the increase cannot be split into volume and price. That is the finding.

06Earnings quality

The item that needs explaining is receivables. Trade receivables went from ₹545.93 million to ₹2,058.51 million, 58.74% of FY26 revenue (DRHP p.56, DRHP p.57). At March 2026, ₹721.45 million was six months to a year past due and ₹159.25 million one to two years (DRHP p.378). One government programme receivable of ₹503.61 million had been outstanding for more than nine months, and ₹489.30 million was due from HIPL-FPPL (JV) (DRHP p.38). Government project receivables were ₹1,517.01 million, 73.69% of the total (DRHP p.152).

FY26 cash flow turned positive because trade payables rose ₹548.46 million while receivables rose ₹940.34 million (DRHP p.88). The company pays its application contractors only when the customer pays it, and amounts due to service suppliers were ₹976.92 million, 73.59% of payables, at March 2026 (DRHP p.153).

Write-offs: ₹51.45 million of advances to service providers and contractors were written off in FY26 because the services were not rendered (DRHP p.465, DRHP p.393). A risk factor says ₹41.42 million of trade receivables were written off in FY26, while the receivables note shows no bad debts written off (DRHP p.57, DRHP p.378). The expected credit loss allowance rose from ₹7.85 million to ₹43.38 million (DRHP p.378).

07The balance sheet

At March 31, 2026 total assets were ₹4,187.02 million: trade receivables ₹2,058.51 million, cash ₹893.45 million, inventories ₹530.77 million, property, plant and equipment ₹289.17 million, other current assets ₹258.12 million and investment property ₹14.34 million (DRHP p.86). Against that: borrowings of ₹749.14 million current and ₹182.51 million non-current, trade payables of ₹1,327.49 million and net worth of ₹1,365.00 million (DRHP p.86). Lease liabilities were ₹65.76 million (DRHP p.406).

By July 31, 2026 borrowings had risen to ₹1,253.15 million: ₹836.68 million of working capital lines against ₹957.50 million sanctioned, ₹253.15 million of term loans, ₹32.07 million of vehicle loans and ₹5.39 million unsecured, repayable on demand (DRHP p.432). Bank guarantees and letters of credit of ₹125.86 million were also outstanding (DRHP p.432). The promoters personally guarantee the loans, up to ₹1,923.40 million by Akuri Srinivasa Reddy and ₹1,896.90 million by A Sandhya (DRHP p.63). Capital commitments are nil (DRHP p.406). Insured assets were ₹1,110.30 million, 26.52% of total assets (DRHP p.57). The ₹150.00 million price for Richwaves is payable by March 31, 2027 (DRHP p.318).

After the issue, as far as the arithmetic goes: none of the fresh issue repays debt, so borrowings are not reduced by it (DRHP p.132). Net worth would rise by the fresh issue less its share of expenses; the gross amount is up to ₹3,250.00 million, but expenses are left blank at this stage, so the post-issue figure cannot be stated (DRHP p.131, DRHP p.155). The share count after the issue depends on the price, which is not set (DRHP p.82).

08What the money is for

Source: DRHP p.132; the percentages are our arithmetic on the ₹3,250.00 million gross fresh issue. The plant is to cost ₹1,686.64 million in all, of which ₹195.25 million for the land has already been paid from internal accruals; the rest is buildings and civil work ₹796.22 million, plant and machinery ₹422.24 million, laboratory and R&D equipment ₹102.98 million, power ₹43.15 million, other items and a contingency of ₹71.02 million (DRHP p.135). Deployment is ₹1,164.85 million in FY28 and ₹326.54 million in FY29, and commercial production is scheduled for July 2028 (DRHP p.132, DRHP p.147).

The plant is meant to replace the two existing units, which the company says are manual and space-constrained, with one automated site (DRHP p.134). No orders have been placed and there are no definitive agreements with vendors (DRHP p.146). The land's sale deed is to be executed later, and the allotment can be cancelled if production does not start within the period set by TGIIC (DRHP p.40). The working capital money is all to be spent in FY28, on a plan that assumes receivables of 190 days in FY27 and 170 in FY28 (DRHP p.149, DRHP p.151). None of the objects has been appraised by a bank (DRHP p.157).

The company may also place up to ₹650.00 million of shares before the red herring prospectus, which would reduce the fresh issue (DRHP p.83).

Into the business up to ₹3,250.00 million, the fresh issue, before expenses (DRHP p.82). To selling shareholders up to ₹1,750.00 million, the offer for sale, sold by eleven shareholders (DRHP p.82).

09Who is selling

Source: DRHP p.83 for the amounts and classification, DRHP p.120 for holdings and average cost per ₹5 share. In crore, the fresh issue is ₹325.0 crore and the offer for sale ₹175.0 crore by 11 selling shareholders (DRHP p.82).

By seller, in crore: Akuri Srinivasa Reddy ₹90.0 crore, A Sandhya ₹30.0 crore, Akuri Sakesh Reddy ₹5.0 crore, Akuri Deepthi ₹5.0 crore, K Sivareddy ₹4.0 crore, Satyanarayana Reddy Akuri ₹12.0 crore, Anil Kondoth ₹12.0 crore, Dantuluri Krishna Harish Varma ₹11.2 crore, Venkata Lakshmi Narasimha Murthy Chilla ₹4.0 crore, Arjun Nagulapally ₹1.0 crore and Ambati Sreedhar ₹0.8 crore (DRHP p.83).

Promoters offer ₹1,200.00 million and the promoter group ₹140.00 million, together 76.6% of the offer for sale (our arithmetic, DRHP p.83). The number of shares each sells will be fixed with the price (DRHP p.83). The document states the relationships: Akuri Sakesh Reddy is the son and Akuri Deepthi the daughter of both promoters, and K Sivareddy is the brother of A Sandhya (DRHP p.343, DRHP p.344).

Anil Kondoth is Executive Director and CEO, Venkata Lakshmi Narasimha Murthy Chilla a non-executive director and Satyanarayana Reddy Akuri a member of senior management (DRHP p.127).

10Promoters

The promoters are Akuri Srinivasa Reddy, aged 49, Chairman and Managing Director, and A Sandhya, aged 46, Chief Administrative Officer; the document states that A Sandhya is the spouse of Akuri Srinivasa Reddy (DRHP p.339, DRHP p.325). Both have been with the company since incorporation in 2008, have no formal education according to the document, and have over 23 and over 18 years in paints and coatings (DRHP p.323, DRHP p.159, AP p.7). Together they hold 71.28%, and 77.76% with the promoter group (DRHP p.119).

Pay: Akuri Srinivasa Reddy is entitled to ₹1.00 million a month for five years from April 1, 2025 (DRHP p.325). Director remuneration was ₹4.80 million in FY24 and ₹11.90 million in FY26; A Sandhya received ₹2.10 million in FY24 and ₹1.97 million of remuneration plus ₹2.34 million of salary in FY26 (DRHP p.91). Together that is ₹6.90 million in FY24 and ₹16.21 million in FY26, about ₹0.7 crore and ₹1.6 crore (our arithmetic, DRHP p.91).

Other businesses and deals with the company: the promoters are partners in Calstone Minerals and Nano Technology Coating Products, both authorised to make paints and said to be inactive (DRHP p.340). The company bought Calstone Minerals' business undertaking for ₹80.00 million in March 2025, and bought ₹98.50 million of material from Nano Technology Coating Products in FY25 (DRHP p.318, DRHP p.92).

On August 22, 2026 it bought all 10,000 shares of Richwaves Specialities Private Limited from the two promoters and their two children for ₹150.00 million, on a registered valuer's report; Richwaves was incorporated in March 2024 with paid-up capital of ₹100,000 (DRHP p.318, DRHP p.319). The company sold two villas and agricultural land to Akuri Srinivasa Reddy for ₹21.00 million, ₹15.00 million and ₹4.00 million between February 2025 and December 2025 (DRHP p.341, DRHP p.342).

Loans from Akuri Srinivasa Reddy stood at ₹25.22 million at March 2026 (DRHP p.408).

Pledges and cases: no promoter share is pledged (DRHP p.119). The promoters are named, with the company and K Siva Reddy, in a 2014 cheque-dishonour complaint by Aquent Impex India Private Limited over ₹0.91 million; non-bailable warrants against them were cancelled on September 19, 2026 and the matter is pending (DRHP p.478). They face six direct tax proceedings involving ₹1.37 million (DRHP p.482).

They were disqualified as directors from November 1, 2014 to October 31, 2021 because Sree Vajra Paints Private Limited did not file returns, continued to act as directors of this company, and filed for compounding on September 22, 2026 (DRHP p.482). None of the companies they are associated with has been delisted or suspended, and there is no SEBI action against them (DRHP p.342, DRHP p.482).

Promoter economics: each promoter subscribed 5,000 shares at ₹10 in 2008, and later shares came through a further issue at ₹10 in 2011, gifts in September 2023 and a rights issue at ₹10 in March 2024 (DRHP p.102, DRHP p.120). A bonus of 11 shares for each share followed in April 2024 (DRHP p.104). Akuri Srinivasa Reddy converted 1,000,000 warrants at ₹130 into shares in November 2025 (DRHP p.110, DRHP p.120).

A 2:5 bonus in August 2026 and a split from ₹10 to ₹5 took the counts to the present (DRHP p.111, DRHP p.115). Average cost is ₹4.62 a share for Akuri Srinivasa Reddy and ₹0.10 for A Sandhya (DRHP p.120). In November 2024 both promoters gifted shares to their son and daughter (DRHP p.116).

11Who already owns it

Source: DRHP p.119, DRHP p.125, DRHP p.126; the "other public" row is our arithmetic. The company has 95 shareholders and no employee stock option shares (DRHP p.126, DRHP p.117). Other holders of 1% or more are Dantuluri Krishna Harish Varma 1.39%, Ande Prathap Reddy 1.32%, Adiraju Rajendra Prasad 1.07%, Ajay Pratyush Nedunuri 1.01% and Oruganti Subbarami Reddy 1.01% (DRHP p.126). All are individuals or a family trust: no fund, no institution and no company holds 1% or more; Superstar Investments Private Limited was allotted shares in 2024 but is not in the 1% list (DRHP p.105, DRHP p.126).

When they came in: public shareholders were allotted shares at ₹130 each in preferential allotments from June 2024 to April 2025, and warrant holders converted at ₹130 in September and November 2025, all on ₹10 shares before the 2026 bonus and split (DRHP p.105 to DRHP p.110). The Amit Raj Sinha Family Trust was allotted 53,800 shares in July 2024, 225,300 in August 2024 and 70,900 in September 2024 (DRHP p.107, DRHP p.108).

The weighted average cost of all shares acquired in the last year is ₹46.43, and over three years ₹11.69, in a range of nil to ₹130 (DRHP p.122). The holding after the issue cannot be computed until the price fixes the number of shares; the promoters and promoter group will keep a majority (DRHP p.69).

12What changed just before the IPO

• Government work took over. Government programme turnkey revenue went from 21.79% of turnkey revenue in FY24 to 76.72% in FY26 (DRHP p.39).
• The joint operation arrived. Revenue from HIPL-FPPL (JV) was ₹117.44 million in FY24, nil in FY25 and ₹997.75 million in FY26, 28.47% of FY26 revenue (DRHP p.92).
• Customer concentration rose. The largest customer went from 17.84% of FY24 revenue to 29.13% of FY26, the top five from 45.03% to 76.85% and the top ten from 56.96% to 81.90% (DRHP p.31). Telangana was 99.59% of FY26 turnkey revenue (DRHP p.32).
• Revenue and profit: revenue went from ₹135.9 crore in FY24 to ₹350.5 crore in FY26 and profit after tax from ₹14.8 crore to ₹37.8 crore (DRHP p.87).
• Receivables lengthened from 147 days to 214 days over FY24 to FY26 (DRHP p.38).
• Promoter pay rose from about ₹0.7 crore in FY24 to about ₹1.6 crore in FY26 (our arithmetic, DRHP p.91).
• A bonus of 11:1 was allotted on April 19, 2024 (DRHP p.104).
• Preferential allotments at ₹130 a ₹10 share ran from June 2024 to April 2025, and warrants issued at ₹130 in 2024 were converted in September and November 2025; the conversion on November 24, 2025 was the last allotment for cash (DRHP p.105 to DRHP p.110, DRHP p.115).
• The company became public: renamed Technopaints and Chemicals in January 2025, and converted to a public company with a certificate dated April 19, 2025 (DRHP p.3).
• Assets moved in from promoter firms: Calstone Minerals' undertaking for ₹80.00 million in March 2025 (DRHP p.318).
• Company property went out to a promoter: villas and land sold to Akuri Srinivasa Reddy between February and December 2025 (DRHP p.341, DRHP p.342).
• New management layer: a company secretary and CFO from July 1, 2025, after a period without them for which an adjudication application was filed on September 3, 2026; independent directors joined in 2025 and 2026 (DRHP p.479, DRHP p.407).
• Promoters left group company boards on March 30, 2026: Richwaves, Masterbond Construction Chemicals, Akuri Properties and Holdings, and, for Akuri Srinivasa Reddy, Fenetre UPVC (DRHP p.343).
• A secondary sale at ₹130: Sreedhar Ambati transferred 34,000 shares at ₹130 on May 21, 2026 (DRHP p.116).
• A 2:5 bonus was allotted on August 29, 2026, and each ₹10 share was split into two of ₹5 under resolutions of August 8 and 13, 2026 (DRHP p.111, DRHP p.115).
• Richwaves bought from the promoters for ₹150.00 million, about ₹15.0 crore, on August 22, 2026 (DRHP p.318).
• Borrowing rose from ₹931.65 million at March 2026 to ₹1,253.15 million at July 2026 (DRHP p.62, DRHP p.432).
• The statutory auditor did not change: VASG & Associates was re-appointed on September 30, 2023 (DRHP p.95).
• Ind AS was adopted for FY26, with April 1, 2025 as the transition date (DRHP p.24).

13Capacity and expansion

Source: DRHP p.44, DRHP p.45, DRHP p.147; utilisation is certified by a chartered engineer. Unit II's land is leased until September 30, 2028 (DRHP p.66). The new plant is to take over the work of both units; against today's 103,896 MTPA of powder and 22,199 KLPA of liquid capacity, it would be about 2.3 times and 1.4 times as large (our arithmetic, DRHP p.253). The document does not say what happens to the existing units once it runs.

The chain from capacity to revenue is not drawn in the document. Liquid paint lines ran at about 28% in FY26, so the added liquid capacity is not explained by present use, while powder lines ran at about 65% overall (our arithmetic, DRHP p.161). Production at both units has exceeded the levels permitted in their pollution control consents, and the company has applied to raise them (DRHP p.48).

14Market size and industry structure

As claimed: the industry report is by CRISIL Intelligence, "Paint Products and Paint Applications Industry", September 2026, commissioned and paid for by the company for the offer (DRHP p.26). It puts the Indian paint industry at about ₹1,210 to 1,260 billion in FY25 (DRHP p.133, AP p.7) and the paint application industry at ₹400 to 420 billion in FY25, with organised players about 20% of it (DRHP p.213).

The part that is addressable: turnkey supply and application of paint for building projects and government programmes, almost all in Telangana. The document does not size this part.

What the company is today: FY26 revenue of ₹3,505.04 million, under 1% of the all-India paint application figure for FY25 (our arithmetic, DRHP p.87, DRHP p.213). The company-commissioned report calls it the fastest-growing of its peers on revenue and EBITDA over FY24 to FY26 (DRHP p.250).

On structure, the commissioned report says the top four to five companies hold about 90% of the paint products market, while about 80% of paint application by value is unorganised (DRHP p.209, DRHP p.213). Demand for this company depends on construction, housing and government capital spending, and on state budgets for programmes like the school work (DRHP p.39). Raw materials such as titanium dioxide, resins and pigments are bought in India, many derived from crude oil (DRHP p.42, DRHP p.43).

15Competitive position

Source: DRHP p.160; PAT margin is our arithmetic on total revenue. Peers are consolidated and the company standalone. The document says JSW Dulux's FY26 profit was influenced by acquisition-related and exceptional factors (DRHP p.160). The table carries no borrowing or RoCE figures for peers.

What the company puts forward: an integrated model of making and applying paint, a record of over 1,150 turnkey projects in a decade across seven states, 982 of them in Telangana, repeat developer customers such as Ramky Infrastructure since 2015, and in-house product development with six people (DRHP p.250, DRHP p.257, DRHP p.263, DRHP p.253). Against that: two plants and 99.59% of turnkey revenue in one state, government programmes at 76.72% of turnkey revenue, no long-term customer contracts, and fixed-price work where labour is a third of revenue (DRHP p.32, DRHP p.39, DRHP p.31, DRHP p.44).

16Peers the company named

Peers named in the offer document: Asian Paints Ltd, Berger Paints India Ltd, Kansai Nerolac Paints Ltd, JSW Dulux Limited (formerly Akzo Nobel India Ltd) and Indigo Paints Ltd (DRHP p.160).

The document calls them listed peers in the same line of business and gives only their figures, not a description of how their businesses compare with turnkey application work (DRHP p.160). Asian Paints' revenue is about 101 times the company's, and Indigo Paints, the smallest, about 4 times (our arithmetic, DRHP p.160).

The document prints peer P/E ratios on September 22, 2026 prices of 54.27 for Asian Paints, 46.80 for Berger, 24.83 for Kansai Nerolac, 7.24 for JSW Dulux and 37.52 for Indigo Paints, an average of 34.13 (DRHP p.159, DRHP p.160). The company's FY26 basic EPS is ₹8.23 on the ₹5 share (DRHP p.159). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Customers: five customers took 76.85% of FY26 revenue, with no long-term contracts (DRHP p.31) → one project ending or not being renewed moves the year → the largest alone was 29.13% (DRHP p.31).

Government and one state: government programmes were 76.72% of turnkey revenue and Telangana 99.59% (DRHP p.39, DRHP p.32) → budgets, sanctions and payment approvals in one state decide much of revenue and cash → one programme receivable of ₹503.61 million was over nine months old at March 2026 (DRHP p.38).

Related-party joint operation: 28.47% of FY26 revenue came through HIPL-FPPL (JV), in which the company holds 20% (DRHP p.92, DRHP p.320) → the company also gives an ₹85.17 million bank guarantee on the JV's behalf (DRHP p.89) → ₹489.30 million was receivable from it at March 2026 (DRHP p.409).

Working capital: receivables of 214 days (DRHP p.38) → the company's plan still assumes 190 days in FY27 (DRHP p.151) → operating cash flow was negative in FY24 and FY25 (DRHP p.88).

Fixed prices and labour: contracts are mostly fixed price without change orders (DRHP p.36) → painting labour was 36.69% of FY26 revenue (DRHP p.44) → a rise in wages or materials after a contract is signed comes out of margin.

Project to be built: ₹1,491.39 million goes to a plant with no orders placed, due in July 2028 (DRHP p.132, DRHP p.146) → the land allotment can be cancelled if production does not start in time (DRHP p.40).

Compliance record: GST of ₹323.63 million was paid late in FY26 in 32 instances, with ₹6.09 million of interest (DRHP p.53) → promoter disqualification, a missing company secretary and CFO, and a late auditor filing are all under compounding or adjudication (DRHP p.46, DRHP p.47) → production exceeded pollution consent limits (DRHP p.48).

Promoter transactions: Richwaves bought from the promoter family for ₹150.00 million, a business undertaking from a promoter firm for ₹80.00 million, and property sold to a promoter (DRHP p.318, DRHP p.341) → these set the price of assets between the company and its owners.

Issue-specific: 76.6% of the offer for sale is by the promoters and promoter group, whose average cost is ₹4.62 and ₹0.10 a share (our arithmetic, DRHP p.83, DRHP p.120); the general corporate purposes amount and expenses are blank; and a pre-IPO placement of up to ₹650.00 million may be made (DRHP p.83).

18Litigation and regulatory matters

Criminal: the only criminal matter against the company and promoters is the cheque complaint above (DRHP p.478, DRHP p.481). Two cheque-dishonour cases are recorded from a public database against independent director Radhakrishnan Balakrishna Menon, who has received no notice in them (DRHP p.480). Directors other than promoters face three tax proceedings involving ₹4.10 million (DRHP p.481).

Regulatory: no action by a regulator against the company or promoters; three compounding or adjudication applications under the Companies Act were filed by the company and directors in September 2026 (DRHP p.478, DRHP p.479, DRHP p.482). Civil: no material civil litigation by or against the company, promoters or directors (AP p.17). The summary table totals ₹87.71 million against the company (AP p.17).

19Related-party transactions

Source: DRHP p.91, DRHP p.92, DRHP p.408; the loans row is our arithmetic, adding loans to Fenetre UPVC, Masterbond, Richwaves, Akuri Properties and Holdings and RSIX Engineers. RSIX Engineers is a promoter-group company that works only as the company's channel partner (DRHP p.347). Akuri Srinivasa Reddy lent the company ₹91.15 million, ₹187.17 million and ₹48.82 million in the three years and was repaid ₹67.68 million, ₹143.69 million and ₹10.48 million (DRHP p.91). Amounts owed to Nano Technology Coating Products and Techno Coats were ₹66.05 million and ₹20.75 million at March 2026 (DRHP p.409).

What appeared or changed in the two years before filing: the HIPL-FPPL (JV) revenue in FY26; loans to promoter-group companies, ₹56.30 million to RSIX Engineers in FY26; the Calstone Minerals purchase; property sales to Akuri Srinivasa Reddy; salaries to a new CFO and company secretary; and the Richwaves acquisition, which turns a related party into a subsidiary (DRHP p.92, DRHP p.408, DRHP p.318). The related-party table records property sales of ₹21.00 million in FY25 and ₹4.00 million in FY24, while the promoter section dates the ₹21.00 million villa sale April 29, 2025 and the ₹4.00 million land sale February 21, 2025 (DRHP p.407, DRHP p.341, DRHP p.342).

20What the offer document does not say

The largest customer is not named, and the document does not say whether it is HIPL-FPPL (JV). Painted area, price per square foot and volumes sold by year are not given, so growth cannot be split into volume and price. Margins on turnkey projects and on product sales are not given separately. Richwaves' revenue, profit and assets, and the basis of its ₹150.00 million value, are not given in the pages read. The document does not say whether Units I and II close when the new plant starts. The general corporate purposes amount, offer expenses, price band and share counts in the offer are blank.

Some inconsistencies are recorded as document matters, not business ones: the order book at March 31, 2026 is ₹10,528.51 million in one place and ₹9,931.25 million in another and at July 31, 2026 ₹9,946.85 million and ₹9,750.93 million (DRHP p.37, DRHP p.149, DRHP p.36); FY25 total equity is ₹840.90 million and ₹840.60 million (DRHP p.86, DRHP p.162);

receivables written off in FY26 are ₹41.42 million in a risk factor and nil in the receivables note (DRHP p.57, DRHP p.378); operating experience is given as over 15 years and over 18 years (DRHP p.250, DRHP p.149); the related-party years for the property sales differ from the transaction dates (DRHP p.407, DRHP p.341); and one selling shareholder's name is printed as both Ambati Sreedhar and Sreedhar Ambati (DRHP p.83, DRHP p.116).

21Five questions for management

1. How much of FY26 revenue came from the "Mana Ooru, Mana Badi" programme in total, including the JV, and how much of the ₹10,528.51 million order book is that one programme?
2. When is the ₹503.61 million government receivable expected to be paid, and what was collected from the ₹2,058.51 million of March 2026 receivables by September 2026?
3. What painted area and average rate per square foot sit behind turnkey revenue in each of FY24 to FY26?
4. What were Richwaves' revenue, profit and net assets when it was bought for ₹150.00 million, and what share of its sales are products bought from the company?
5. With liquid lines at about 28% utilisation, what output and utilisation does the Ibrahimpatnam plant need to cover its own depreciation?

2Sources and cited facts

This study was read from 2 documents the company filed. The 158 figures it cites are listed under the document each came from, with the page and the sentence as printed.