Yogiji Digi Limited IPO

01At a glance

What the company does — designs, manufactures and installs equipment that steel companies use to process flat steel: cold-rolling mills, annealing and pickling lines, acid regeneration plants, metal-coating and colour-coating lines, slitting lines, and spares, revamps and automation (AP p.3).

Who pays it — steel producers in India and abroad; projects in 10 countries across South Asia, Africa, the Middle East and North America (AP p.3). The top ten customers were 82.10% of FY26 revenue, and the largest, APL Apollo Building Products, 17.12% (AP p.3, DRHP p.33).

Why it is raising money — ₹1,400 million for working capital, ₹450 million to repay borrowings, and the rest for general purposes (AP p.5).

How fast it has grown — revenue from ₹3,965 million in FY24 to ₹6,261 million in FY26, and profit from ₹199 million to ₹404 million (AP p.7).

The one thing to understand — a project business with a large order book relative to revenue and long, cash-hungry build cycles. The order book was ₹13,130.41 million at 31 May 2026, over twice FY26 revenue, and operating cash flow was negative ₹473 million in FY25 (DRHP p.42, AP p.7).

02The business, in plain words

A steel-processing equipment maker builds large production lines to order for steel mills. Each project runs for months, is won by bid or direct award, and is paid in stages, often backed by bank guarantees. Profit depends on pricing the bid right and controlling steel and component costs during the build.

A steel company wants a new colour-coating line → it invites bids, and Yogiji Digi wins → the company designs, fabricates and assembles the line at Palwal, installs it at the customer's plant → it is paid in instalments as milestones are met.

Manufacturing is at units in Palwal, Haryana (DRHP p.35). Customers may require bank guarantees of 10% to 20% of contract value (DRHP p.39).

Earnings equation: Revenue ≈ order book executed in the year. EBITDA margin was 10.8% in FY26, our arithmetic (AP p.7).

03Where the money comes from

Source: AP p.3.

The largest customers change from year to year: in FY25 they were Shyam SEL & Power, CIM Steel Industry and Lodhia Industries (AP p.4). Revenue from customers in one region was ₹3,846.18 million in FY26 (DRHP p.37). Export revenue was $5.37 million in FY26 (DRHP p.42).

04The growth record

Source: AP p.7. Margins are our arithmetic.

05What the growth is made of

Revenue grew 57.90% over two years (DRHP p.35). The order book of ₹13,130.41 million suggests more to come, though the document warns orders can be adjusted, delayed or cancelled (DRHP p.42). Margins rose from 7.69% to 10.82% (AP p.7).

06Earnings quality

Cash swings with project milestones: operating cash flow was negative in FY25 and positive in FY26 (AP p.7). The document says the business needs large working capital because of long production cycles (DRHP p.47). Material costs are the main cost and can rise after a bid is priced (DRHP p.40).

07The balance sheet

Source: AP p.7.

Borrowings doubled in FY26 as investment outflows reached ₹1,202.58 million (AP p.7). Share capital rose from ₹18.91 million to ₹567.15 million over two years, including bonus issues and a share split (AP p.7).

08What the money is for

Source: AP p.1, AP p.5.

A pre-IPO placement of up to ₹390 million may reduce the fresh issue (AP p.5).

09Who is selling

The offer for sale is up to 7,171,290 shares by promoters and other shareholders, including 261,870 by Navneet Singh, whose average cost is ₹4.62 a share (AP p.1).

10Promoters

The promoters are Navneet Singh, managing director, with the company since 1993; Sameer Bansal, executive director, since 1995; and Satish Kumar Tripathi, executive director, since 2024 (AP p.5).

11Who already owns it

Source: AP p.6. The Kitara row is our sum of two holdings.

Promoters and promoter group hold 45.27% (AP p.6, our arithmetic).

12What changed just before the IPO

• Merger — a former subsidiary was merged into the company (DRHP p.42).
• Share capital — bonus issues and split raised it to ₹567.15 million (AP p.7).
• Borrowings — doubled in FY26 (AP p.7).

13Capacity and expansion

The Palwal units are the manufacturing base (DRHP p.35). The document notes that possession of certain owned properties has not been obtained (DRHP p.44).

14Market size and industry structure

India's flat-steel demand grew from 48.50 million tonnes in FY20 to 76.46 million tonnes in FY26, according to the CRISIL report cited in the offer document, which forecasts production of 100–105 million tonnes by FY31 (AP p.5). Those forecasts are CRISIL's, and newboard has not tested them. The company competes with domestic and international equipment makers (DRHP p.43).

15Competitive position

What the document claims, and what it rests on:

• A full range of flat-steel processing lines, spares and revamps (AP p.3).
• International projects in 10 countries (AP p.3).
• A large order book of ₹13,130 million (DRHP p.42).

Against that: heavy customer concentration, dependence on the steel investment cycle, and bid-based pricing risk (DRHP p.33, DRHP p.38, DRHP p.46).

16Peers the company named

The peer comparison was not read for this study. For Yogiji Digi the document gives FY26 earnings per share of ₹7.13, net asset value per share of ₹37.03 and return on net worth of 21.31% (AP p.7). No P/E is possible for the company until a price band is set.

17Risks, in plain words

• Customer concentration. The top ten customers were 82.10% of FY26 revenue (DRHP p.33).
• Steel cycle. Orders depend on steel companies' capital spending (DRHP p.46).
• Fixed-price bids. Cost overruns on material can erode margins (DRHP p.38, DRHP p.40).
• Guarantees. Bank guarantees of 10% to 20% of contract value can be invoked (DRHP p.39).
• Order book. Orders can be cut or cancelled (DRHP p.42).
• Working capital. Long builds tie up cash (DRHP p.47).

18Litigation and regulatory matters

The litigation summary was not read in detail for this study.

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:

• Margins by product line, in the pages read.
• How long the order book takes to execute.
• Names of two of the top five customers, which did not consent to disclosure.
• The property possession issue in detail.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. Over what period will the ₹13,130 million order book be executed?
2. How much of the order book is from APL Apollo and the other top customers?
3. What share of contracts carry price-escalation clauses for steel costs?
4. Why did borrowings double in FY26 and what did the ₹1,203 million of investment fund?
5. Which property has the company not taken possession of, and why?

2Sources and cited facts

This study was read from 2 documents the company filed. The 37 figures it cites are listed under the document each came from, with the page and the sentence as printed.