Trenzet Infra Limited IPO

01At a glance

What the company does — builds railway bridges, earthworks, structures and track, with some electrification and signalling, including piling, tunnelling and steel-girder fabrication and launching (AP p.2).

Who pays it — Indian Railways, other government authorities including the National Highways Authority of India, public-sector undertakings and a few private clients; the largest customer was 26.80% of revenue in the six months to September 2025, the top five 89.03% and the top ten 99.15% (AP p.2, AP p.6).

Why it is raising money — ₹416.00 million for working capital, ₹176.12 million for construction vehicles and equipment, and the rest for general purposes (AP p.4).

How fast it has grown — revenue from ₹2,695 million in FY23 to ₹3,334 million in FY25, and ₹1,511 million in the six months to September 2025 (AP p.5).

The one thing to understand — a small contractor with a much larger order book. Orders were ₹15,662.73 million at September 2025, 10.36 times six-month revenue, up from ₹8,522.30 million at March 2025 (AP p.5). At January 2026, 38.48% of the order book was in Assam (DRHP p.190), a state not among the ten that provided revenue in the periods reported (AP p.2).

02The business, in plain words

A railway civil contractor bids for bridge and earthwork packages, executes them with its own equipment and subcontractors, and is paid against measured quantities or project milestones.

A railway zone tenders a package of bridges on a new line → Trenzet bids and is declared the lowest bidder → it mobilises crews and subcontractors, fabricates and launches girders → the railway measures work done and pays running bills.

Bill-of-quantities contracts were 68.33% of revenue and EPC contracts 30.83% in the six months (AP p.6). Subcontracting charges were 52.38% of total expenses in that period (AP p.6).

Earnings equation: Profit ≈ work billed × (contract rate − subcontract, material and site cost) − interest. Operating EBITDA margin was 12.82% in the six months (our arithmetic, AP p.5).

03Where the money comes from

Source: AP p.5. Converted from ₹ lakh. H1 FY26 is six months.

Source: DRHP p.28, DRHP p.190. Converted from ₹ lakh. The first three rows total ₹16,009.80 million; the Assam row is part of that total.

04The growth record

Source: AP p.5. Converted from ₹ lakh. H1 FY26 is six months.

05What the growth is made of

Steady revenue growth of 14% in FY24 and 8% in FY25, and a margin rise from 8.24% in FY23 to 10.66% in FY25 (our arithmetic, AP p.5). In the six months to September 2025, revenue came mainly from Jharkhand (31.77%), Karnataka (28.27%), Andhra Pradesh (16.55%) and Odisha (14.94%) (AP p.6).

06Earnings quality

Operating cash flow was negative in FY24 and FY25 while profit rose, which the document attributes to receivables, inventories and other working capital (AP p.6). Net working capital was ₹875.37 million at September 2025 (AP p.6). The auditors made no qualifications (AP p.7).

07The balance sheet

Source: AP p.5. Converted from ₹ lakh.

08What the money is for

Source: AP p.4. Converted from ₹ lakh.

09Who is selling

Source: AP p.1.

Recent acquisitions by both were bonus shares and gifts at nil cost (AP p.7).

10Promoters

The promoters are Kishan Kumar Thotakura and Murali Mohan Cherukuri (AP p.3). Kishan Kumar Thotakura, chairman and managing director, holds a provisional engineering degree from an institute affiliated to Mysore University, co-founded the predecessor partnership K. Venkata Raju Engineers & Contractors, and has more than 25 years in infrastructure, mainly railway bridges (AP p.3). Murali Mohan Cherukuri, whole-time director, holds a civil engineering degree from Karnataka University, Dharwad, and has more than 25 years in the sector (AP p.3).

11Who already owns it

Source: AP p.4. The three are Naren Chandra Chowdary Thotakura, Thotakura Sriram Chowdary and Veera Venkata Satyanarayana Nadipalli, a non-executive director (AP p.4, AP p.7).

12What changed just before the IPO

• Order book — ₹8,522 million in March 2025 to ₹15,663 million in September 2025 and ₹16,010 million in January 2026 (AP p.5, DRHP p.190).
• Assam — 38% of the order book (DRHP p.190).
• Bids — 3 won out of 22 in the six months (AP p.5).
• Bonus issue — earnings per share are restated for bonus shares (AP p.5).

13Capacity and expansion

Capacity is equipment, crews and subcontractors; the company has a registered office in Vijayawada and project-site offices (AP p.2). The proceeds fund construction equipment and working capital (AP p.4).

14Market size and industry structure

The CareEdge report cited in the offer document describes Indian Railways as the fourth-largest railway system in the world, with over 69,181 route km and 7,461 stations in FY24, and about 7,319 million passengers and 1,617 million tonnes of freight in FY25 (AP p.3). newboard has not tested the report's statements.

15Competitive position

What the document claims, and what it rests on:

• A diversified order book across contract types, clients and geographies, in the company's words (AP p.2).
• Bridge expertise under bill-of-quantities contracts (AP p.2).

Against that: dependence on railway tenders, a few customers each period, heavy use of subcontractors and a falling win rate (AP p.5, AP p.6).

16Peers the company named

Source: DRHP p.115, DRHP p.116. Converted from ₹ lakh. Peer P/E uses prices on 18 March 2026.

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

17Risks, in plain words

• Government work. Indian Railways is 68% of the order book (DRHP p.28).
• Customers. Ten customers were 99% of recent revenue (AP p.6).
• Bidding. Win rates have fallen (AP p.5).
• Working capital and cash. Negative operating cash flow in FY24 and FY25 (AP p.6).
• Subcontractors. About half of costs (AP p.6).
• Execution. A large new order book, much of it in a new state (DRHP p.190).

18Litigation and regulatory matters

Source: AP p.7, AP p.8, DRHP p.44. 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:

• What the Assam contracts are, who awarded them and when, in the pages read.
• Who the largest customer is.
• How the company will staff and fund an order book ten times its six-month revenue, beyond the proceeds.
• What the criminal proceeding filed by a promoter concerns.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. What are the Assam projects, and how much working capital will they need?
2. Why did the win rate fall from 33% in FY23 to 14% in the six months?
3. Why was operating cash flow negative in FY24 and FY25?
4. How much of the work will be subcontracted, and to whom?
5. Who is the largest customer, at 27% of recent revenue?

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.