Aarish Outdoors Limited IPO

01At a glance

Ravita Engineering IPO date, price band and lot size

• Price band: ₹105 to ₹112 a share, from NSE's issue page; the prospectus leaves the price blank (RHP p.3).
• Lot size: 1,200 shares, from NSE's issue page. Individual investors must apply for at least two lots, so that the application exceeds ₹2 lakh (RHP p.16); at the upper band two lots of 2,400 shares cost ₹2,68,800 (our arithmetic).
• Dates: anchor bidding on October 12, 2026; the issue opens on October 13, 2026 and closes on October 15, 2026 (RHP p.1).
• Size: a fresh issue of 1,03,62,000 shares of ₹5, of which 5,22,000 are reserved for the market maker (RHP p.69). At ₹112 that is ₹116.1 crore, at ₹105 ₹108.8 crore (our arithmetic, RHP p.69). There is no offer for sale (RHP p.1).
• Lead manager and registrar: Vivro Financial Services Private Limited is the sole book running lead manager and MUFG Intime India Private Limited the registrar (RHP p.1). The market maker is Pace Stock Broking Services Private Limited (RHP p.90).

What the company does: designs, procures, installs and commissions heating, ventilation and air-conditioning (HVAC) systems, chiller plants, compressors and other electro-mechanical equipment on a turnkey basis, and runs and maintains such systems, at onshore sites, on offshore oil and gas platforms and rigs, and at a data centre (RHP p.184, RHP p.185). It is also laying a sub-sea effluent discharge pipeline for Numaligarh Refinery Limited at Paradip, Odisha (RHP p.185).

Who pays it: public sector undertakings, government departments, private companies and contractors; government and public sector clients brought 35.47% of FY26 revenue (RHP p.207). The company served 21 clients in FY26 (RHP p.209). The largest was 26.99% of FY26 revenue and the top five 78.65% (RHP p.29). Two clients are named: Reliance Corporate IT Park Limited, the only data centre client, and Numaligarh Refinery Limited (RHP p.185, RHP p.200).

Why it is raising money: ₹70.0 crore for working capital in FY27 and FY28 and ₹25.5 crore for heavy equipment such as dumpers, trucks, excavators and cranes, with the rest for general corporate purposes (RHP p.112).

How fast it has grown: revenue from ₹13.5 crore in FY24 to ₹277.6 crore in FY26 and profit after tax from ₹1.5 crore to ₹28.0 crore (RHP p.73); our arithmetic puts the yearly growth at about 353.6% for revenue and 331.2% for profit, from a very small base (RHP p.73).

The one thing to understand: the present promoters, Vibhoar Agrawal and Rachita Agrawal, bought the whole company in February 2025 (RHP p.185, RHP p.249), and almost all of its growth came after that. Revenue went up about twenty times in two years while the business took cash out: operating cash flow was −₹8.9 crore in FY25 and −₹46.9 crore in FY26, because money owed by customers, stock and advances rose (RHP p.74).

02The business, in plain words

What Ravita Engineering does

The company was incorporated as Sayo Construction Private Limited on December 28, 2007, became Powermech Services Private Limited in 2010, was renamed Ravita Engineering Services Private Limited in September 2025 and became a public company with a fresh certificate dated December 16, 2025 (RHP p.3). Sunildutt Narayan Goswami and Vatsala Goswami controlled it from February 2011 until February 21, 2025, when Vibhoar Agrawal and Rachita Agrawal acquired the shares (RHP p.249). Sunildutt Narayan Goswami stays on as Managing Director and Chief Executive Officer (RHP p.231).

It reports three areas of work (RHP p.185):

• Onshore: HVAC, chiller plants and related utilities at factories, commercial buildings, hotels and industrial sites, in Maharashtra, Gujarat, Odisha and Karnataka; 59.16% of FY26 revenue (RHP p.186).
• Offshore: HVAC, cooling and compressor work on rigs and platforms in Indian waters; it has worked on 6 rigs and 16 offshore platforms in the period covered; 28.84% of FY26 revenue (RHP p.185, RHP p.186).
• Data centre: operation and maintenance of cooling systems at one data centre in Navi Mumbai; 11.93% of FY26 revenue (RHP p.186, RHP p.200).

Each area has two kinds of contract. Under EPIC contracts (engineering, procurement, installation and commissioning) the company designs, procures and puts in a system; these run 6 to 14 months (RHP p.206). Under O&M contracts (operation and maintenance) it runs and services systems, often ones others installed, for 12 to 36 months (RHP p.206). EPIC work was 76.00% of FY26 revenue against 14.88% in FY24 (RHP p.187).

A refinery, factory owner, platform operator or developer puts out a tender or asks for a quote → the company prices the bill of quantities, wins the order, purchases chillers and equipment from makers and hires contract labour and machinery → it installs, tests and hands over, or runs the plant month by month → it is paid on running bills certified by the client, keeping some money back as retention until the defects period ends (RHP p.204, RHP p.206).

The company owns no factory: it says capacity and utilisation do not apply because it is not a manufacturer (RHP p.215). It had 399 payroll employees and 246 contract labourers on June 30, 2026 (RHP p.43). Its owned equipment is mostly scaffolding, ladders, welding sets and tools (RHP p.214). Heavy machinery such as dumpers, dozers and excavators is hired; hire charges were ₹29.6 crore in FY26 and nil in FY24 and FY25 (RHP p.194).

Earnings equation: Revenue = value of contracts won × share executed and billed in the year. The document gives the order book, the orders won each year and the average value of work executed per month, ₹23.1 crore in FY26 (RHP p.114), but not a split by price and volume.

03Where the money comes from

By area of work, share of revenue from operations (RHP p.186):

By kind of contract (RHP p.187):

By state, FY26 (RHP p.31): Maharashtra ₹95.8 crore (34.52%), Gujarat ₹70.7 crore (25.45%), Odisha ₹33.2 crore (11.96%), Karnataka ₹3.0 crore (1.08%) and Indian territorial waters ₹74.9 crore (26.99%). In the three months to June 2026 Odisha was 40.88% and Gujarat 32.15% (RHP p.31). Gujarat brought nothing in FY24 (RHP p.32).

Contracts won through tenders were 55.23% of FY26 revenue against 87.63% in FY24 (RHP p.201). Repeat clients brought 62.60% of FY26 revenue and new clients 37.40% (RHP p.189).

Ravita Engineering customers: how concentrated the revenue is

Source: RHP p.29. In the three months to June 2026 the largest customer was 29.76% and the top five 82.85% (RHP p.29). Customers other than Reliance Corporate IT Park Limited and Numaligarh Refinery Limited are not named. Read from the filing: revenue does depend on a few clients, in numbers: five clients out of 21 brought close to four fifths of FY26 revenue (RHP p.29, RHP p.209). The company served 8 clients in FY24, 13 in FY25 and 21 in FY26 (RHP p.209).

On the supply side, the largest supplier was 17.35% of FY26 cost of services and the top five 64.21%, against 2.91% and 9.59% in FY24 (RHP p.300).

04The growth record

Ravita Engineering financials: revenue, profit and margins

Source: RHP p.72, RHP p.73, RHP p.74, RHP p.129, converted from ₹ lakh. The company's EBITDA adds finance cost and depreciation to profit before tax and takes out other income; its PAT margin is struck on total income (RHP p.129). Revenue from operations went from ₹13.5 crore in FY24 to ₹277.6 crore in FY26, so ₹13.5 cr → ₹277.6 cr (RHP p.73). Profit after tax went from ₹1.5 crore to ₹28.0 crore, so ₹1.5 cr → ₹28.0 cr (RHP p.73). In the three months to June 30, 2026 revenue was ₹97.3 crore and profit after tax ₹10.1 crore (RHP p.73).

Our arithmetic over FY24 to FY26: revenue grew about 353.6% a year (our arithmetic, RHP p.73), profit after tax about 331.2% a year (our arithmetic, RHP p.73) and EBITDA about 274.1% a year (our arithmetic, RHP p.129). EBITDA margin moved from 21.21% to 14.43%, down 678 basis points, so 21.2% → 14.4% rounded (RHP p.129). Year by year, revenue rose 704.99% in FY25 and 155.62% in FY26 (RHP p.293, RHP p.291).

The year ends on March 31 throughout and there is no subsidiary (RHP p.229). FY24 was audited by the previous auditor, Rinki Gupta & Co. (RHP p.257). Restatement added ₹0.08 crore to FY24 profit and ₹0.41 crore to FY25, for gratuity and deferred tax (RHP p.275). The examination report notes no audit qualifications in the previous auditor's reports (RHP p.258).

What sits around the record:

• Cash: operating cash flow was −₹46.9 crore in FY26, −₹8.9 crore in FY25 and ₹0.17 crore in FY24 (RHP p.74). Over the three years profit after tax added up to ₹41.4 crore and operating cash flow to −₹55.6 crore (our arithmetic, RHP p.73, RHP p.74). Shares issued for ₹56.4 crore in FY26 were the main source of financing cash (RHP p.74).
• Money owed by customers: trade receivables were ₹73.3 crore at March 31, 2026 and ₹100.6 crore at June 30, 2026 (RHP p.72). Receivable days were 100 in FY24 and 96 in FY26, so 100 → 96 (RHP p.116).
• Stock and advances: inventory of materials was ₹37.4 crore at March 2026 against ₹2.5 crore at March 2024 (RHP p.72). Earnest money and security deposits were ₹27.7 crore at June 30, 2026 (RHP p.272).
• Other income was ₹0.19 crore in FY26, about 0.5% of profit before tax (our arithmetic, RHP p.73). In FY25 it included ₹0.62 crore of key man insurance receipts (RHP p.273).
• Debt: borrowings were ₹19.2 crore at March 31, 2026 and debt to equity 0.19 times, so 0.2× (RHP p.129). Net of ₹5.2 crore of cash, borrowings were about 0.4 times FY26 EBITDA, so 0.4× (our arithmetic, RHP p.72, RHP p.129). Borrowings were ₹30.9 crore at June 30, 2026 (RHP p.283). Return on capital employed was 48.65% in FY26, so 48.7% rounded (RHP p.129).
• Customers and suppliers: the largest customer was 26.99% of FY26 revenue, so 27.0%; the top five 78.65%, so 78.7% (RHP p.29). The top five suppliers were 64.21% of FY26 cost of services, so 64.2% (RHP p.300).
• Order book: ₹491.1 crore on June 30, 2026 (RHP p.34), against ₹365.1 crore at March 2026 and ₹17.8 crore at March 2024 (RHP p.129).
• Equipment hire: ₹29.6 crore of machinery hire charges in FY26, 13.36% of cost of services (RHP p.194).
• Related party rent: ₹11.1 crore of rent paid to the group company Tykoon Mines GK Limited in the three months to June 2026 (RHP p.77).
• Working capital: net working capital of ₹104.2 crore at March 31, 2026 (RHP p.114).
• Contingent liabilities: ₹4.5 crore of claims not acknowledged as debt at March 31, 2026 (RHP p.276).
• Cases: one criminal proceeding is listed under the promoters, an Enforcement Directorate case against a promoter group company (RHP p.306); section 23 has the details.
• Use of the issue: ₹70.0 crore of working capital and ₹25.5 crore of equipment (RHP p.112). The fresh issue is ₹116.1 crore at ₹112 (our arithmetic, RHP p.69).
• Valuation at the upper band: a market capitalisation of ₹422.0 crore (our arithmetic, RHP p.69) and a P/E of 15.0× on FY26 profit after tax on the enlarged share count (our arithmetic, RHP p.69, RHP p.73); peer median P/E: none named, as the prospectus names no listed peers (RHP p.131). Section 16 has the detail.
• Industry: HVAC and electro-mechanical engineering and maintenance, capital goods and engineering in the fixed list (RHP p.184).

05What the growth is made of

Revenue from operations rose ₹264.1 crore from FY24 to FY26 (our arithmetic, RHP p.73). The document explains it by contracts, not by price and volume:

• Onshore installation: projects won rose from 1 in FY24 to 5 in FY25 and 20 in FY26; contract value won from ₹1.3 crore to ₹52.5 crore and ₹324.3 crore; revenue from ₹1.4 crore to ₹39.3 crore and ₹145.4 crore (RHP p.293, RHP p.291).
• Offshore installation: one project in each of FY25 and FY26; revenue from ₹16.6 crore in FY25 to ₹65.6 crore in FY26 (RHP p.291). This includes the Numaligarh pipeline contract of ₹77.2 crore dated November 7, 2025 (RHP p.211).
• Maintenance: onshore O&M revenue went from ₹11.9 crore in FY25 to ₹19.0 crore in FY26, offshore O&M from ₹10.0 crore to ₹14.5 crore and data centre O&M from ₹30.8 crore to ₹33.1 crore (RHP p.291).
• Orders: the company won ₹174.9 crore of new orders in FY25 and ₹558.9 crore in FY26, against ₹7.7 crore in FY24 (RHP p.30). The average order rose from ₹0.96 crore in FY24 to ₹20.0 crore in FY26 (RHP p.30).

Read from the filing: the growth came from scale of contracts after the change of control, mostly in installation work in new states. No acquisition is involved: the company made none in the last ten years (RHP p.229). The document does not give margins by area or by contract type.

Margins: cost of services rose from 61.61% of revenue in FY24 to 78.58% in FY25 and 79.81% in FY26 (RHP p.40). The company links this to contract payments and purchases, which rose from ₹77.3 crore in FY25 to ₹201.4 crore in FY26 (RHP p.292). Payroll cost fell from 86.68% of operating cost in FY24 to 7.26% in FY26, as work moved to contract labour and subcontractors (RHP p.189).

06Earnings quality

The item that needs explaining is cash. In FY26 receivables rose by ₹46.9 crore, inventory by ₹28.3 crore and loans and advances by ₹23.4 crore, against ₹17.8 crore more credit from suppliers (RHP p.74). Receivables at June 30, 2026 were almost all less than six months past due; ₹5.7 crore was six months to a year past due (RHP p.271). The company says payments come on milestones and certification, and that receivables are normally settled on 30 to 90 day terms (RHP p.118, RHP p.271).

A second item is equipment hire. The objects chapter says machinery has been hired since August 2025 from a group company, Tykoon Mines GK Limited, at about ₹3.7 crore a month, ₹29.6 crore in FY26 and ₹11.1 crore in the June quarter (RHP p.121). The related party note shows rent to Tykoon Mines GK Limited only for the June quarter, not for FY26 (RHP p.279), and the business chapter says such equipment is hired "from local suppliers" (RHP p.214). The document does not reconcile the three.

Also recorded: delays of up to 1,645 days in company law filings and certain untraceable older records (RHP p.36); late payment of provident fund in each year and of ₹3.2 crore of GST in FY25 (RHP p.44).

07The balance sheet

At March 31, 2026 total assets were ₹163.0 crore: trade receivables ₹73.3 crore, inventories ₹37.4 crore, short term loans and advances ₹33.8 crore, property, plant and equipment ₹9.4 crore, cash and bank ₹5.2 crore and other assets (RHP p.72). Against them: trade payables ₹32.6 crore, short term borrowings ₹19.0 crore, other liabilities and provisions, and net worth of ₹99.6 crore (RHP p.72).

Borrowings of ₹30.9 crore at June 30, 2026 (RHP p.268, RHP p.283):

The cash credit is secured on current assets, a property at Thane and a fixed deposit, with personal guarantees of Vibhoar Agrawal and Rachita Agrawal (RHP p.268). Unsecured loans repayable on demand were ₹19.0 crore at June 30, 2026 (RHP p.55). Starwings Realtors Private Limited lent ₹12.0 crore in the June quarter (RHP p.76). After June 2026 the company took a ₹1.6 crore ECLGS loan over 60 months (RHP p.300). Bank guarantees outstanding were ₹3.4 crore (RHP p.38).

Source: RHP p.72, RHP p.112, RHP p.283; the net worth after the issue adds ₹116.1 crore of gross proceeds before issue expenses (our arithmetic, RHP p.69). The capitalisation statement leaves the after-issue column blank (RHP p.283). Contingent liabilities were ₹4.5 crore, two indirect tax claims; there are no capital commitments (RHP p.276, RHP p.308).

08What the money is for

Ravita Engineering IPO objects: what the money is for

Source: RHP p.112, RHP p.124; the percentages are our arithmetic on ₹116.1 crore at ₹112 (RHP p.69).

Working capital, ₹70.0 crore: ₹36.0 crore in FY27 and ₹34.0 crore in FY28 (RHP p.113). The company projects net working capital of ₹211.3 crore at March 2027 and ₹331.6 crore at March 2028, against ₹104.2 crore at March 2026, assuming receivable days of 93 and 94, inventory days of 62 and payable days of 45 and 40 (RHP p.117). The rest is to come from internal accruals and short term borrowings (RHP p.117).

Heavy equipment, ₹25.5 crore: 11 dumper trucks, 14 trucks, 2 excavators, 2 backhoe loaders, 3 rough terrain cranes and an electric forklift, on quotations dated March to October 2026; no purchase orders have been placed (RHP p.122, RHP p.123, RHP p.124). The company says owning them will cut the hire charges it now pays (RHP p.121).

The objects have not been appraised by any bank (RHP p.126). Brickwork Ratings India Private Limited is the monitoring agency (RHP p.125). None of the proceeds is to go to the promoters, and none to earnest money deposits for bids (RHP p.126).

Into the business ₹116.1 crore of fresh issue at ₹112, before issue expenses (our arithmetic, RHP p.69). To selling shareholders nothing: there is no offer for sale (RHP p.1).

09Who is selling

Ravita Engineering IPO offer for sale: who is selling

Nobody. The issue is a fresh issue of 1,03,62,000 shares of ₹5 and the offer for sale is "NIL" (RHP p.1). The new shares are 27.50% of the post-issue capital (RHP p.3). The promoters and promoter group will not take part in the issue (RHP p.111).

10Promoters

The promoters are Vibhoar Agrawal, Rachita Agrawal and Starwings Realtors Private Limited (RHP p.247). The promoter group list names Rachita Agrawal as the spouse of Vibhoar Agrawal (RHP p.251), and Starwings Realtors Private Limited is owned 50% each by the two (RHP p.248).

• Vibhoar Agrawal, 40, Chairman and Executive Director since March 27, 2025, B.Com, over 7 years in engineering and infrastructure businesses, managing director of Ganesh Infraworld Limited (RHP p.231, RHP p.233). Draws no remuneration from the company (RHP p.234).
• Rachita Agrawal, 36, B.Com and a fashion design degree, a former partner of M/s Ganesh International (RHP p.247); a director from March 27, 2025 to December 1, 2025 (RHP p.279).
• Starwings Realtors Private Limited, incorporated March 23, 2022, a real estate company in Kolkata; it is also the company's landlord for the Kolkata corporate office (RHP p.248, RHP p.213).

A risk factor says some promoters have limited experience in HVAC engineering (RHP p.53). The business is run day to day by Sunildutt Narayan Goswami, Managing Director and CEO, a marine engineer with the company since 2010, whose remuneration ceiling is ₹0.90 crore a year (RHP p.185, RHP p.234), and Bhaskar Agnihotri, Chief Operating Officer from October 1, 2026 (RHP p.245).

Other businesses and transactions: Vibhoar Agrawal is a director of Ganesh Infraworld Limited, which is listed on NSE Emerge, and of Tykoon Mines GK Limited; both are group companies (RHP p.231, RHP p.252, RHP p.253). The company's 10% joint venture, Ganesh Netsoft JV Networks, is led by Ganesh Infraworld Limited with a 60% share, for a South Eastern Railway communications contract (RHP p.229, RHP p.230).

Tykoon Mines GK Limited, whose registered office is the company's own registered office address, hires out machinery to the company (RHP p.252, RHP p.121). All three independent directors also sit on the board of Ganesh Infraworld Limited, and one of them on that of Tykoon Mines GK Limited (RHP p.232).

Loans and guarantees: Starwings Realtors Private Limited lent ₹12.5 crore in FY25, was repaid in FY26 and lent ₹12.0 crore again in the June quarter (RHP p.279). Vibhoar Agrawal and Rachita Agrawal guarantee the ICICI Bank facility (RHP p.268). No promoter shares are pledged (RHP p.111).

Other matters: M.R. Foods Private Limited, a promoter group company, is under compulsory strike-off by the Registrar of Companies, Ranchi, which the company says could disqualify Vibhoar Agrawal as a director (RHP p.33). The Enforcement Directorate case is in section 23.

Promoter economics: on February 22, 2025 Vibhoar Agrawal and Rachita Agrawal bought 91,730 shares of ₹10 from the Goswamis at ₹691 a share (RHP p.103, RHP p.104). Starwings Realtors Private Limited subscribed 7,812 shares at ₹16,000 in August 2025 (RHP p.104). After the split into ₹5 shares and the 100:1 bonus, the promoters' average cost is ₹3.42 a share for Vibhoar Agrawal and Rachita Agrawal and ₹77.68 for Starwings Realtors Private Limited (RHP p.107). No shares were bought or sold by the promoters in the six months before the prospectus (RHP p.106).

11Who already owns it

Ravita Engineering promoter holding before and after the IPO

Source: RHP p.101, RHP p.102; the after-issue column is our arithmetic on 3,76,80,682 shares (RHP p.69). Promoters hold 1,99,41,238 shares, 72.99% before the issue (RHP p.106), and would hold about 52.9% after it, so 73.0% → 52.9% (our arithmetic, RHP p.106, RHP p.69); with the promoter group, 73.74% → about 53.5% (our arithmetic, RHP p.101). The prospectus leaves its own post-issue figures blank (RHP p.102). There are 107 shareholders (RHP p.106).

The largest outside holders are Mavira Growth Opportunities Fund with 2.77%, Dilip Talakshi Vora and Alpa Dhakan with 2.31% each, Hemant Gadodia and Dinkar Bagaria with 1.50% each and Aarth AIF Growth Fund with 1.39% (RHP p.105). Most came in through the preferential issues and private placement of June to August 2025 at ₹16,000 a ₹10 share, ₹79.21 a share after the split and bonus (RHP p.96, RHP p.131). Pre-issue shares of non-promoters are locked in for one year from allotment (RHP p.108).

12What changed just before the IPO

• Revenue and profit: revenue from operations went from ₹13.5 crore in FY24 to ₹277.6 crore in FY26 and profit after tax from ₹1.5 crore to ₹28.0 crore (RHP p.73).
• Receivables: 100 days in FY24 and 96 days in FY26 (RHP p.116).
• Promoter pay: none in FY24 and none in FY26; no remuneration to Vibhoar Agrawal or Rachita Agrawal appears in the related party note (RHP p.279). The former promoters, Sunildutt Narayan Goswami and Vatsala Goswami, drew ₹0.24 crore each in FY24 (RHP p.279).
• Change of control: Vibhoar Agrawal and Rachita Agrawal bought the company on February 22, 2025 (RHP p.249).
• Pre-IPO placement: 35,241 shares of ₹10 at ₹16,000 each in June, July and August 2025, ₹56.4 crore in all, ₹79.21 a share after the split and bonus (RHP p.131).
• Share split: ₹10 shares into ₹5 shares on January 29, 2026 (RHP p.96).
• Bonus issue: 100:1, 2,70,48,200 shares on February 19, 2026 (RHP p.96).
• Last allotment before the IPO: the bonus shares at nil price in February 2026 (RHP p.96).
• Auditor: Rinki Gupta & Associates, appointed September 30, 2024, resigned March 1, 2025; Sambit Das & Associates was appointed and resigned on April 2, 2025; Piyush Kothari & Associates was appointed April 30, 2025 (RHP p.86).
• Name and status: renamed Ravita Engineering Services Private Limited in September 2025 and converted to a public company with a certificate dated December 16, 2025 (RHP p.3).
• Board: Vibhoar Agrawal joined on March 27, 2025; three independent directors on October 8, 2025; CFO Mayuri Saxena from June 23, 2025 and Company Secretary from March 12, 2026 (RHP p.231, RHP p.232, RHP p.245).
• Equipment hire: from August 2025 the company hires machinery from Tykoon Mines GK Limited, about ₹3.7 crore a month (RHP p.121).
• Workforce: payroll employees went from 615 at March 2025 to 398 at March 2026 while contract labour went from 55 to 231 (RHP p.43); attrition was 62.82% in FY26 (RHP p.39).
• Main objects: data centre HVAC maintenance added to the main objects on January 29, 2026 (RHP p.226).
• Dividend: none in the June quarter or the last three years (RHP p.52).

13Capacity and expansion

Source: RHP p.215, RHP p.214, RHP p.121, RHP p.122. The company says capacity is set by clients' pre-qualification formulas, not by a fixed measure (RHP p.204). It leases its registered office, its Kolkata corporate office and a warehouse at Nhava, Raigad, and owns one vacant commercial unit at Thane (RHP p.212, RHP p.213).

The issue funds 33 machines for ₹25.5 crore (RHP p.123); the 41 hired units in FY26 were 30 dumpers, 2 dozers, 8 excavators and 1 grader (RHP p.121). The document does not say how many hired units the purchased ones will replace.

14Market size and industry structure

Ravita Engineering industry: market size and growth

As claimed: the chapter is taken from "Industry Report of Industrial HVAC Industry in India" dated March 2026 by Dun & Bradstreet Information Services India Private Limited, commissioned and paid for by the company for the issue (RHP p.28, RHP p.51). The commissioned report puts India's HVAC market at ₹1,01,637 crore in FY2021 and ₹1,45,000 crore in FY2025, about 9.3% a year (RHP p.149). It labels this the industrial HVAC segment, though its own split of the FY2025 figure gives commercial ₹60,900 crore (42%), residential (38%) and industrial ₹29,000 crore (20%) (RHP p.151). The residential figure is ₹50,100 crore in the text and ₹55,100 crore in the chart (RHP p.151).

The part that is addressable: the company installs and maintains HVAC systems at onshore sites, offshore platforms and data centres. The commissioned report sizes HVAC installation and commissioning work at ₹81,284 crore in FY2025: onshore ₹52,385 crore, offshore ₹13,805 crore and data centres ₹15,094 crore (RHP p.154, RHP p.155). It sizes HVAC operation and maintenance at ₹36,905 crore in FY2025: onshore ₹24,965 crore, offshore ₹8,260 crore and data centres ₹3,680 crore (RHP p.157, RHP p.158).

What the company is today: FY26 revenue of ₹277.6 crore is about 0.23% of the ₹1,18,189 crore of installation and maintenance work in FY2025 (our arithmetic, RHP p.73, RHP p.154, RHP p.157); the years differ. Its FY26 offshore revenue of ₹80.1 crore is about 0.36% of the ₹22,065 crore offshore figure (our arithmetic, RHP p.186, RHP p.155, RHP p.158).

Size over time: installation and commissioning grew from ₹47,720 crore in FY2021 to ₹81,284 crore in FY2025, and the report projects ₹1,69,723 crore by FY2030 (RHP p.154). Maintenance grew from ₹24,025 crore to ₹36,905 crore, and the report projects ₹68,205 crore by FY2030 (RHP p.157). The report projects the whole HVAC market at ₹2,87,862 crore by FY2030, about 14.7% a year (RHP p.151, RHP p.152). Our arithmetic on the report's figures: installation work grew about 14.2% a year from FY2021 to FY2025 (our arithmetic, RHP p.154). These projections are the report's own.

Segments: by location, the report gives growth from FY2021 to FY2025 of 13.7% a year for onshore installation work, 10.5% for offshore and 20.7% for data centres (RHP p.155). By end user, oil and gas platforms and rigs were ₹9,801 crore of installation work and ₹4,290 crore of maintenance in FY2025 (RHP p.156, RHP p.159). The report says maintenance spending is overtaking equipment spending: services were 54% of commercial HVAC spending and 51% of industrial in FY2025 (RHP p.150). The company sits in onshore installation, offshore installation and maintenance, and data centre maintenance (RHP p.185).

What drives demand: the commissioned report names rising temperatures, citing an India Meteorological Department warming trend of about 0.68°C per 100 years and a record power demand of 250 GW in May 2024 (RHP p.160); air-conditioner sales rising from 84 lakh units in 2021-22 to 109 lakh in 2023-24 (RHP p.160); urbanisation, with urban population put at 54.27 crore by 2025 (RHP p.161); energy codes; and data centres, with capacity of 950 MW in FY2024 and 2,070 MW in FY2025 and a projection of 3,400 MW by FY2030 (RHP p.169).

For offshore work it notes 131 offshore wells drilled in FY2024-25 (RHP p.164) and declining output from the western offshore fields against a rise in the eastern offshore from FY2024 (RHP p.165).

Structure: the report calls competition fragmented and relationship-driven, with contracts awarded on execution record, technical compliance, safety and the ability to field skilled workers (RHP p.179). It says there is no direct peer matching the company's model and names no HVAC contractor as a competitor (RHP p.179). It names NTT, STT, CtrlS, Sify and Nxtra as holding 85% of data centre capacity in March 2024 (RHP p.169). Entry barriers it lists are pre-qualification credentials, skilled manpower, working capital and client empanelment (RHP p.181).

Inputs and trade: the report points to dependence on a limited set of equipment makers, long lead times for imported chillers and VRF systems, and volatile prices of steel, refrigerants and electronics (RHP p.178). The company had no foreign currency transactions, imports or exports in the period (RHP p.281).

Rules: the report lists the Energy Conservation Building Code for commercial buildings with a connected load of 100 kW or more (RHP p.161), Bureau of Energy Efficiency star labels with tighter ISEER thresholds from 2026-27, Eco Niwas Samhita, the Shunya net zero labels, BIS certification such as IS 1391, and a proposed minimum air-conditioner setting of 20°C (RHP p.175, RHP p.176). The company's own approvals pending include trademark registrations in classes 37 and 35 and a professional tax name change (RHP p.56).

What the chapter says can go wrong: shortages of trained technicians and engineers, fast technology change, input cost swings, supply chain delays, and a price-sensitive market that squeezes bids (RHP p.177, RHP p.178, RHP p.179). For offshore work, the report says growth depends on oil and gas capital spending and global energy prices (RHP p.155). The chapter does not size the effluent pipeline work the company is doing, and gives no market shares for HVAC contractors.

15Competitive position

Ravita Engineering competitors

Source: RHP p.73, RHP p.129, RHP p.131, RHP p.215. The business chapter says the company competes with small and large entities in the same areas and with local infrastructure contractors, without naming any (RHP p.215).

What the company puts forward: both installation and maintenance services, long relationships with large clients, a large deployable workforce and experience at offshore platforms and a data centre (RHP p.127). Its tender success rate in FY26 was 26.58% onshore, 25.00% offshore and 28.57% for data centres (RHP p.205). Against that, as the document itself states: no contracts longer than 36 months, 16 of its 21 FY26 clients with it for less than three years, dependence on hired machinery and contract labour, and an unregistered logo (RHP p.206, RHP p.209, RHP p.194, RHP p.42, RHP p.52).

16Peers the company named

Peers named in the offer document: none. The prospectus says there are no listed companies of similar business or comparable size, so it gives no peer comparison (RHP p.131).

Ravita Engineering listed peers

The group company Ganesh Infraworld Limited is listed on NSE Emerge (RHP p.253), but the prospectus does not treat it as a peer and says it is in a different industry (RHP p.252). With no named peer, there is no peer range in the prospectus to place the issue in (RHP p.131).

17Valuation at the issue price

Ravita Engineering IPO valuation and P/E

At the upper band of ₹112, with 1,03,62,000 new shares added to 2,73,18,682 existing shares (RHP p.69):

Source: our arithmetic on shares (RHP p.69), profit and EPS (RHP p.73), EBITDA (RHP p.129) and book value per share (RHP p.128). At ₹112 the market capitalisation is ₹422.0 crore and the P/E on FY26 profit after tax of ₹28.0 crore on the enlarged share count 15.0× (our arithmetic, RHP p.69, RHP p.73).

At the lower band of ₹105 the market capitalisation is ₹395.6 crore and the P/E on FY26 profit 14.1 times (our arithmetic, RHP p.69, RHP p.73). Enterprise value takes the 2,73,18,682 existing shares at ₹112, ₹306.0 crore, adds March 2026 borrowings of ₹19.2 crore and deducts cash of ₹5.2 crore (our arithmetic, RHP p.72). The FY26 EPS of ₹11.05 is on a weighted 2,53,80,530 shares (RHP p.281).

On the June 2026 book value of ₹40.15 a share, ₹112 is 2.8 times (our arithmetic, RHP p.128). After the issue, book value including gross proceeds at ₹112 would be about ₹215.6 crore, and the market capitalisation about 2.0 times that (our arithmetic, RHP p.72, RHP p.69).

The upper band is 1.41 times the ₹79.21 a share, adjusted for the split and bonus, paid in the June to August 2025 placement (our arithmetic, RHP p.131), and 32.7 times the promoters' ₹3.42 average cost (our arithmetic, RHP p.107). The prospectus names no listed peers, so there is no peer range to place the issue in (RHP p.131). At the upper band the issue is priced at 15.0 times FY26 profit on the enlarged share count and 10.1 times FY26 EPS as the prospectus computes it.

18Risks, in plain words

Ravita Engineering IPO risks

Financial: cash: operating cash flow was negative in FY25, FY26 and the June quarter (RHP p.46) → growth needs outside money for receivables, materials and deposits → operating cash flow was −₹46.9 crore in FY26 against ₹28.0 crore of profit (RHP p.74, RHP p.73).

Customers: concentration: the top five clients were 78.65% of FY26 revenue (RHP p.29) → losing or delaying one of them would cut sales sharply → the largest was 26.99% and the company served 21 clients in all (RHP p.29, RHP p.209).

Business: large contracts: the two largest projects make up ₹156.7 crore, 31.90% of the June 2026 order book (RHP p.34) → a delay, dispute or cost overrun on one of them would show in results → the order book was ₹491.1 crore (RHP p.34).

Promoters: new owners: the present promoters took control in February 2025 (RHP p.33) → their record with this business is short, and a risk factor says some have limited HVAC experience (RHP p.53) → revenue was ₹13.5 crore in FY24, before the change (RHP p.73).

Promoters: related companies: machinery is hired from Tykoon Mines GK Limited, where Vibhoar Agrawal is a director, and the Kolkata office is rented from the promoter Starwings Realtors Private Limited (RHP p.121, RHP p.213) → the terms are set between related parties → rent to Tykoon Mines GK Limited was ₹11.1 crore in the June quarter and ₹4.9 crore was payable to it at June 30, 2026 (RHP p.77).

Legal: promoter group case: the Enforcement Directorate has accused Ganesh Infraworld Limited, a promoter group company, under the money laundering law (RHP p.306) → an adverse outcome could affect Vibhoar Agrawal's standing as a director and promoter → the case is in section 23.

Regulation: director disqualification: M.R. Foods Private Limited is under compulsory strike-off (RHP p.33) → a strike-off could disqualify Vibhoar Agrawal as a director for five years (RHP p.33) → the company has received no notice so far (RHP p.33).

Financial: loans on demand: unsecured loans of ₹19.0 crore are repayable on demand (RHP p.55) → a sudden recall would strain cash → borrowings rose from ₹19.2 crore in March 2026 to ₹30.9 crore in June 2026 (RHP p.72, RHP p.283).

Business: people: payroll attrition was 82.03% in FY24 and 62.82% in FY26 (RHP p.39) → execution depends on site workers and contract labour → 246 of 645 workers were contract labour at June 30, 2026 (RHP p.43).

Regulation: records and dues: some company records cannot be traced and filings were late by up to 1,645 days; provident fund and GST were paid late (RHP p.36, RHP p.44) → penalties may follow → ₹3.2 crore of GST was paid late in FY25 (RHP p.44).

Legal: tax claims: a GST show cause notice demands ₹2.1 crore for FY2019-20 to FY2023-24 (RHP p.305) → it may fall on the company → total indirect tax claims are ₹4.5 crore (RHP p.308).

Issue-specific: the working capital object assumes receivables stay near 93 to 94 days while revenue grows (RHP p.117) → if collections slow, the need rises → net working capital is projected at ₹211.3 crore for March 2027 (RHP p.117). The prospectus carries 79 numbered risk factors, with the number 34 used twice (RHP p.51, RHP p.67).

19Litigation and regulatory matters

Cases against Ravita Engineering and its promoters

Criminal: none against the company, its directors or key managers (RHP p.305, RHP p.307, RHP p.308). The only criminal matter is the Enforcement Directorate case above, listed under the promoters; Ganesh Infraworld Limited denies the allegations (RHP p.306). Regulatory: no SEBI or exchange action against the promoters in five years (RHP p.307). Civil: no civil case against the promoters or directors (RHP p.306, RHP p.307). Tax: no direct tax claims against the company, promoters or directors (RHP p.308). Creditors: 15 material creditors were owed ₹39.8 crore and 73 others ₹7.6 crore at June 30, 2026; nothing was owed to micro and small enterprises (RHP p.309).

20Related-party transactions

Source: RHP p.76, RHP p.77, RHP p.279, converted from ₹ lakh; the Goswami loan total is our arithmetic. Loans payable at June 30, 2026 were ₹12.0 crore to Starwings Realtors Private Limited, ₹2.5 crore each to Sunildutt Narayan Goswami and Vatsala Goswami and ₹1.0 crore to Rachita Agrawal (RHP p.279). Rent of ₹4.9 crore was payable to Tykoon Mines GK Limited (RHP p.280). The company booked ₹0.03 crore of rental income from each of Tykoon Mines GK Limited and Ganesh Infraworld Limited in the June quarter (RHP p.279).

What appeared or changed in the two years before filing: the Goswami family's pay ended after FY25 apart from Sunildutt Narayan Goswami's; the Starwings loans began in FY25; the joint venture with Ganesh Infraworld Limited began in July 2025; the Tykoon Mines GK Limited hire began in August 2025 by the objects chapter and in the June 2026 quarter by the related party note; office rent to Starwings Realtors Private Limited began in the June 2026 quarter (RHP p.279, RHP p.228, RHP p.121). The company says its related party transactions are at arm's length (RHP p.47).

21What the offer document does not say

The names of the customers other than Reliance Corporate IT Park Limited and Numaligarh Refinery Limited are not given, nor are the suppliers'. Margins by area (onshore, offshore, data centre) or by contract type are not disclosed. The price paid for hired machinery per unit is given, but not how hire terms compare with other lessors. How many hired machines the purchased ones will replace is not stated.

The share of the Numaligarh pipeline contract in FY26 offshore revenue is not given separately. The issue size in rupees, general corporate purposes, issue expenses and post-issue holdings are blank (RHP p.112, RHP p.102). No listed competitor or peer is named (RHP p.131).

Some inconsistencies are recorded as document matters, not business ones: offshore revenue is 28.84% of FY26 revenue in the segment table, 28.86% in the strengths and 26.99% as territorial waters revenue, the difference being the Numaligarh contract billed in Odisha (RHP p.186, RHP p.191, RHP p.31); data centre revenue for FY24 is 37.52% in one table and 37.62% in another (RHP p.186, RHP p.191);

equipment hire is from a group company in the objects chapter and from local suppliers in the business chapter and the related party note shows no FY26 hire from the group company (RHP p.121, RHP p.214, RHP p.279); the commissioned report calls the whole HVAC market the industrial segment and gives residential demand as ₹50,100 crore in the text and ₹55,100 crore in the chart (RHP p.149, RHP p.151);

the report's company profile gives a workforce of over 350 against 399 employees elsewhere (RHP p.182, RHP p.38); a sentence on long-standing clients gives three counts for four periods (RHP p.189); the risk factors use the number 34 twice (RHP p.51); the material developments section calls the document a draft red herring prospectus (RHP p.300).

22Five questions for management

1. What gross margin did onshore installation, offshore installation and maintenance work each earn in FY26?
2. How were the hire rates paid to Tykoon Mines GK Limited set, and how much of the ₹29.6 crore of FY26 hire went to it?
3. How much of the ₹100.6 crore of receivables at June 30, 2026 had been collected by September 2026?
4. How much of FY26 offshore revenue came from the Numaligarh pipeline contract, and what margin did it carry?
5. What share of the ₹491.1 crore order book is expected to be billed in FY27, by contract?

1Sources and cited facts

This study was read from 1 document the company filed. The 231 figures it cites are listed under the document each came from, with the page and the sentence as printed.