Alde Medi Impex Limited IPO

01At a glance

What the company does: markets and distributes pharmaceutical formulations in India and exports them, without owning or operating any manufacturing facility; products are made by third parties under contract manufacturing and loan licence arrangements (DRHP p.24, DRHP p.143).

Who pays it: more than 700 domestic distributors and stockists served from six hubs, and overseas distributors in 16 countries; the largest customer was 20.98% of FY26 revenue and the top ten 51.23% (DRHP p.144, DRHP p.143).

Why it is raising money: ₹3,532.36 lakh for working capital and ₹336.46 lakh to repay borrowings, with general corporate purposes left blank (DRHP p.93).

How fast it has grown: revenue rose from ₹5,862.87 lakh in FY24 to ₹10,515.92 lakh in FY26, about 33.9% a year, and the result moved from a loss of ₹84.68 lakh to a profit of ₹1,299.24 lakh (our arithmetic, DRHP p.55).

The one thing to understand: the business is asset-light in manufacturing but heavy in working capital. Inventories were ₹2,750.16 lakh and receivables ₹3,606.71 lakh at March 2026 against revenue of ₹10,515.92 lakh, and operating cash flow was negative in FY24 and FY25 (DRHP p.54, DRHP p.56).

02The business, in plain words

A pharmaceutical company does not have to own a plant. It can own the brand, the registration and the distribution, and have the tablets made to its specification by someone who does own a plant. That is this company's model: it selects and qualifies manufacturing partners, supports product development, oversees quality and regulatory work, and moves the finished goods to its own hubs and then to stockists and pharmacies (DRHP p.143, DRHP p.144).

A stockist or an overseas distributor orders a product → the company has it made by a third-party manufacturer under a contract or loan licence → it moves the goods to its hubs and on to the customer → the company keeps what is left after the purchase price of the goods, its sales force and interest.

The company also exports directly, to distributors who may market the goods under their own brands or private labels, and holds product registrations or marketing authorisations in ten countries (DRHP p.143). It does not own the transport vehicles or the warehouses used for domestic distribution (DRHP p.144). It has a subsidiary, Globezza Biotech LLC, in the United Arab Emirates (DRHP p.42). It maintains its own quality assurance, quality control and product development functions even though the physical manufacture is outsourced (DRHP p.145).

Earnings equation: Profit = units sold × (price − price paid to the manufacturing partner) − field force and distribution cost − interest. In FY26 purchases of stock in trade were ₹4,949.50 lakh, employee cost ₹1,837.39 lakh, other expenses ₹2,683.07 lakh and finance cost ₹292.57 lakh, against revenue of ₹10,515.92 lakh (DRHP p.55).

03Where the money comes from

Source: DRHP p.143, and our arithmetic on the domestic line.

Source: DRHP p.144.

About half of revenue comes from ten customers, and the largest grew from ₹917.98 lakh in FY24 to ₹2,206.03 lakh in FY26, which is most of the rise in concentration (DRHP p.144). On the buying side, the top ten suppliers were 42.70% of purchases in FY26 against 47.90% in FY24 (DRHP p.145). The prospectus does not name the customers or the suppliers.

04The growth record

Source: DRHP p.55, DRHP p.56; EBITDA is our arithmetic as profit before tax plus finance cost plus depreciation less other income.

Net worth was ₹859.06 lakh, ₹1,332.87 lakh and ₹2,482.00 lakh; borrowings ₹1,082.77 lakh, ₹2,142.95 lakh and ₹3,131.47 lakh; return on net worth minus 9.86%, 35.55% and 52.35% (DRHP p.54, DRHP p.108). Our arithmetic over the two years from FY24 to FY26: revenue rose about 33.9% a year and EBITDA about 240.9% a year; EBITDA margin widened 1,542 basis points. No profit growth rate can be given from FY24 because that year was a loss. Earnings per share were minus ₹0.68, ₹3.79 and ₹10.39, restated for the bonus issue of September 8, 2026 (DRHP p.55, DRHP p.108). Net asset value per share was ₹19.85 at March 2026 (DRHP p.108).

05What the growth is made of

Three things moved together. Export revenue rose from ₹1,915.66 lakh to ₹4,079.12 lakh, and the number of countries where the company holds its own product registrations or marketing authorisations went from three to ten (DRHP p.143). Domestic revenue rose from ₹3,947.21 lakh to ₹6,436.80 lakh on a network of more than 700 distributors and stockists and six hubs (our arithmetic, DRHP p.143, DRHP p.144). And the single largest customer grew from ₹917.98 lakh to ₹2,206.03 lakh (DRHP p.144).

The margin moved more than the revenue: EBITDA margin went from 2.82% in FY24 to 18.24% in FY26 while revenue rose 79.4% over the two years (our arithmetic, DRHP p.55). Employee cost rose from ₹1,460.23 lakh to ₹1,837.39 lakh, well behind revenue, and purchases of stock in trade from ₹3,040.96 lakh to ₹4,949.50 lakh, also behind revenue (DRHP p.55). The prospectus does not give units sold or realisation by product, so the margin gain cannot be separated into price, mix and the operating leverage on a fixed field force.

06Earnings quality

Two items need explaining. The first is cash: over the three years the business used ₹734.61 lakh in operating activities against ₹1,688.37 lakh of reported profit, and the gap sits in inventories, which absorbed ₹1,732.67 lakh, and short-term loans and advances, which absorbed ₹1,042.18 lakh (our arithmetic, DRHP p.56). That is why ₹3,532.36 lakh of the issue, the largest object, goes to working capital (DRHP p.93).

The second is money placed with a related company. At March 2026 the company had ₹381.00 lakh of loans, ₹151.00 lakh of advances against purchase orders, ₹77.00 lakh of investment and ₹23.79 lakh of accrued interest outstanding with Alde Expression Life Science Private Limited, a company in which the directors and the company are interested, ₹632.79 lakh in all (our arithmetic, DRHP p.60). At March 2025 the equivalent was ₹101.00 lakh (DRHP p.60).

07The balance sheet

At March 2026, long-term borrowings were ₹337.68 lakh and short-term borrowings ₹2,793.79 lakh, a total of ₹3,131.47 lakh against net worth of ₹2,482.00 lakh (DRHP p.54). Cash and cash equivalents were ₹107.25 lakh (DRHP p.54). Trade payables were ₹1,645.04 lakh, of which ₹593.40 lakh was owed to micro and small enterprises, and other current liabilities were ₹1,877.36 lakh (DRHP p.54). Inventories were ₹2,750.16 lakh and receivables ₹3,606.71 lakh (DRHP p.54).

Property, plant and equipment rose from ₹280.44 lakh to ₹1,013.98 lakh during FY26 on ₹871.04 lakh of purchases (DRHP p.54, DRHP p.56). Long-term loans and advances were ₹381.00 lakh (DRHP p.54). There are no contingent liabilities or commitments (DRHP p.57). The prospectus states that no objection certificates have not been received from some lenders for the public issue (DRHP p.44).

After the issue: ₹336.46 lakh of the proceeds repays borrowings, which would leave about ₹2,795.01 lakh on the March 2026 figure, and ₹3,532.36 lakh is added to working capital against the ₹1,350.61 lakh of net current assets outside inventories and receivables at that date (our arithmetic, DRHP p.54, DRHP p.93).

08What the money is for

Source: DRHP p.93, and our arithmetic on the shares.

The whole requirement is to be funded from the issue, so no firm arrangement of finance was needed under Regulation 230(1)(e) (DRHP p.94). The fund requirement has not been appraised by any bank or financial institution, and the prospectus states that no monitoring agency has been appointed to oversee the use of the proceeds (DRHP p.94, DRHP p.44). General corporate purposes are capped at 15% of gross proceeds or ₹10 crore, whichever is lower (DRHP p.93). A pre-IPO placement may be made (DRHP p.88).

Into the business the whole issue: up to 47,28,000 new shares, priced later (DRHP p.93). To selling shareholders nothing: there is no offer for sale (DRHP p.93).

09Who is selling

No one. The issue is up to 47,28,000 new shares issued by the company, including a market maker reservation portion whose size is not yet fixed (DRHP p.1, DRHP p.93). The number of shares may change with the lot size once the issue price and basis of allotment are settled (DRHP p.93).

10Promoters

The promoters are Rajesh Kumar Rastogi, Manas Rastogi, Mehul Rastogi and Nisha Rastogi (DRHP p.1). Manas Rastogi is Managing Director, Mehul Rastogi and Rajesh Rastogi are executive directors, and the prospectus records that Manas Rastogi and Mehul Rastogi are sons of Rajesh Rastogi and that Nisha Rastogi is the spouse of Rajesh Rastogi (DRHP p.58).

Promoter economics: the four hold 1,01,03,700 shares, 80.81% of the capital before the issue, at an average cost of acquisition of ₹3.33 a share as certified on September 14, 2026 (DRHP p.87). With the promoter group, Namita Rastogi and Hina Rastogi, the holding is 1,23,29,700 shares and 98.62% (DRHP p.87). The holdings tripled in the bonus issue of September 8, 2026, which capitalised reserves (DRHP p.88).

Directors' remuneration to the three executive promoters was ₹49.20 lakh in FY24 and FY25 and ₹66.00 lakh in FY26; salaries to the wives of the three and to a brother of Nisha Rastogi were ₹73.58 lakh, ₹75.09 lakh and ₹94.05 lakh over the three years (our arithmetic, DRHP p.58).

The prospectus records that certain ventures of the promoters, namely Rajesh Kumar Rastogi HUF, Globezza Biotech, M H Medicos and Manas Pharmaceuticals, are in a business similar to the company's, and that certain trademarks used in the business are registered in the name of the promoters rather than the company (DRHP p.25, DRHP p.36).

11Who already owns it

The company had 9 shareholders at the date of the draft (DRHP p.89). Promoters held 80.81% and the promoter group a further 17.81%, so 98.62% is held by six members of one family; the public 1.38% is held by three individuals, Vivek Agarwal, Sameer Rastogi and Neeraj Rastogi (DRHP p.87). The same six have held the same percentages for at least two years before the filing, so no outside investor has come in (DRHP p.88).

No fund or company holds any shares. Paid-up capital before the issue is 1,25,02,800 shares of ₹10; after a full issue of 47,28,000 shares it would be 1,72,30,800, at which the promoters would hold about 58.6% (our arithmetic, DRHP p.87, DRHP p.93).

12What changed just before the IPO

• A bonus issue was allotted on September 8, 2026 by capitalising reserves, tripling the share count from 41,68,800 to 1,25,02,800 (our arithmetic, DRHP p.88, DRHP p.87).
• The result moved from a loss of ₹84.68 lakh in FY24 to a profit of ₹473.81 lakh in FY25 and ₹1,299.24 lakh in FY26 (DRHP p.55).
• Property, plant and equipment rose from ₹280.44 lakh to ₹1,013.98 lakh during FY26 on ₹871.04 lakh of purchases (DRHP p.54, DRHP p.56).
• Money placed with Alde Expression Life Science Private Limited, a company in which the directors and the company are interested, rose from ₹101.00 lakh at March 2025 to ₹632.79 lakh at March 2026 (our arithmetic, DRHP p.60).
• Short-term loans and advances rose from ₹220.96 lakh to ₹1,243.26 lakh during FY26 (DRHP p.54).
• The number of countries with active product registrations or marketing authorisations rose from three in FY24 to ten in FY26 (DRHP p.143).
• Directors' remuneration rose from ₹49.20 lakh to ₹66.00 lakh in FY26 (DRHP p.58).
• Two cheque dishonour complaints were filed by the company in September 2026 (DRHP p.277).

13Capacity and expansion

The company owns no manufacturing capacity. Products are made by third-party manufacturers under contract manufacturing or loan licence arrangements, and the prospectus states that the company has limited direct control over the manufacturing process and that the ability to market products lawfully depends on those partners obtaining and maintaining their own licences and approvals (DRHP p.24, DRHP p.26, DRHP p.28). Certain loan licence agreements are of perpetual duration with certain partners, which the prospectus flags as a risk in its own right (DRHP p.25).

Its physical capacity is distribution: more than 700 distributors and stockists and six hubs, depots or distribution centres in India at March 2026, with transport and warehousing taken from third-party providers (DRHP p.144). Overseas, it exported to 16 countries in FY26 and held registrations in ten (DRHP p.143). Nothing in this issue funds manufacturing capacity: both stated objects are working capital and debt repayment (DRHP p.93).

14Market size and industry structure

As claimed: the prospectus carries an industry overview chapter beginning at DRHP p.119. It does not print a rupee size for the Indian pharmaceutical marketing and distribution segment that this company operates in, in the pages read.

The part that is addressable: branded and generic formulations sold through Indian stockists and pharmacies, and export markets where the company or its overseas partner holds the marketing authorisation (DRHP p.143).

What the company is today: ₹10,515.92 lakh of FY26 revenue, of which ₹4,079.12 lakh was exported to 16 countries (DRHP p.55, DRHP p.143).

Structure, as the prospectus describes it: the company competes with large integrated pharmaceutical companies and with regional and unorganised participants, and its products can be counterfeited through multi-tier distribution networks (DRHP p.42, DRHP p.36).

15Competitive position

Source: DRHP p.109. On profit the three are of a similar size; the difference is the capital behind it, with net asset value per share of ₹19.85 against ₹81.03 and ₹87.29, which is what lifts the reported return on net worth to 52.35% (DRHP p.109). What the company offers on its own account is an asset-light model without a plant, its own quality assurance and regulatory functions, registrations in ten countries and a domestic network of more than 700 stockists (DRHP p.143, DRHP p.144, DRHP p.145).

16Peers the company named

Peers named in the offer document: Speciality Medicines Limited and Trident Lifeline Limited (DRHP p.109).

Source: DRHP p.109; prices are BSE closing prices of September 11, 2026 and earnings per share are from the latest published annual report for FY26. The prospectus prints the industry P/E as a highest of 18.54, a lowest of 11.14 and an average of 14.84, worked out from those two companies alone (DRHP p.108). Both peers are small pharmaceutical companies with an export orientation. No price band exists yet, so no comparison of this issue against those multiples can be made at this stage.

17Risks, in plain words

No plant of its own: the company owns no manufacturing facility and depends entirely on third-party manufacturers, with limited direct control over the process (DRHP p.24, DRHP p.26) → a partner's licence lapse or quality failure stops the product → the ability to market lawfully depends on those partners' approvals (DRHP p.28).

Brands it does not own: the company does not own the brands or products distributed under certain of its arrangements, and certain trademarks used in the business are registered in the name of the promoters (DRHP p.25, DRHP p.36) → part of the goodwill sits outside the company → certain loan licence agreements are of perpetual duration, which the prospectus flags separately (DRHP p.25).

Promoter ventures in the same line: Rajesh Kumar Rastogi HUF, Globezza Biotech, M H Medicos, Manas Pharmaceuticals and others are promoter ventures in a similar business (DRHP p.25) → orders and margin can move between the company and those firms → ₹113.98 lakh of goods were sold to Globezza Biotech in FY24 and ₹28.69 lakh in FY25 (DRHP p.59).

Working capital and cash: operating cash flow was minus ₹731.56 lakh in FY24, minus ₹386.01 lakh in FY25 and ₹382.96 lakh in FY26 (DRHP p.27, DRHP p.56) → the growth has been funded by borrowing → short-term borrowings rose from ₹998.92 lakh to ₹2,793.79 lakh over the same period (DRHP p.54).

Money with a related company: ₹632.79 lakh was outstanding with Alde Expression Life Science Private Limited at March 2026, against ₹101.00 lakh a year earlier (our arithmetic, DRHP p.60) → that is about half of FY26 profit placed with a company in which the directors are interested → the prospectus does not state the terms of the loan or the advances.

Customers: the largest was 20.98% of FY26 revenue and the top ten 51.23% (DRHP p.144) → half the revenue sits with ten buyers → the largest grew from ₹917.98 lakh to ₹2,206.03 lakh in two years, so the concentration is recent (DRHP p.144).

Exports and registrations: exports were 38.79% of FY26 revenue across 16 countries, and registrations or marketing authorisations can take a long time to obtain (DRHP p.143, DRHP p.34) → an authorisation held by an overseas partner rather than the company can be withdrawn from it → the company is exposed to currency movement, with a ₹216.79 lakh exchange gain in FY26 (DRHP p.34, DRHP p.56).

Records and compliance: certain corporate records filed with the Registrar of Companies, Delhi are not traceable, including a Form 2 for a 2002 allotment and share transfer deeds; there have been past non-compliances under the Companies Act and delays in statutory dues including under the Employees' State Insurance Act (DRHP p.31, DRHP p.32, DRHP p.33) → each carries a penalty risk → the company has also had delayed payments to micro and small enterprise suppliers, on which interest arose (DRHP p.40).

Issue-specific: no monitoring agency has been appointed for the use of proceeds, no objection certificates have not been received from some lenders, and the promoters and promoter group hold 98.62% before the issue (DRHP p.44, DRHP p.87).

18Litigation and regulatory matters

There are no direct tax or goods and services tax proceedings against the company beyond the ₹1.62 lakh of tax deducted at source demands, none against the subsidiary, and none against Manas Rastogi or Nisha Rastogi (DRHP p.279). The land dispute at Moradabad concerns a one-third share in agricultural land recorded in the names of members of the Rastogi family, on a 1978 agreement for sale; the petitioners have lost at each stage below and the writ petition seeks to quash those orders (DRHP p.278).

19Related-party transactions

Source: DRHP p.58, DRHP p.59. Closing balances with related parties were ₹20.53 lakh at March 2024, ₹119.18 lakh at March 2025 and ₹681.36 lakh at March 2026, of which ₹632.79 lakh relates to Alde Expression Life Science Private Limited (our arithmetic, DRHP p.60). The company also has ₹5.16 lakh unpaid to Manas Rastogi for the purchase of shares in Globezza Biotech LLC, its United Arab Emirates subsidiary, and an unsecured loan of ₹28.86 lakh from Manas Rastogi outstanding at March 2026 (DRHP p.60).

20What the offer document does not say

Units sold and realisation by product are not disclosed, so the rise in EBITDA margin from 2.82% to 18.24% cannot be separated into price, mix and operating leverage. The names of the top ten customers, which are 51.23% of revenue, are not given, nor are the manufacturing partners. The terms, interest rate and repayment date of the ₹632.79 lakh placed with Alde Expression Life Science Private Limited are not set out.

The rupee size of the Indian pharmaceutical marketing and distribution market the company sells into is not printed in the pages read. The working-capital assessment behind the ₹3,532.36 lakh object, in days and by line, is not summarised in the objects chapter. The issue price, the market maker reservation and the amount for general corporate purposes are left blank at this stage.

21Five questions for management

1. What drove EBITDA margin from 2.82% in FY24 to 18.24% in FY26, and how much of it was price, product mix and the field force not growing with revenue?
2. On what terms is the ₹632.79 lakh outstanding with Alde Expression Life Science Private Limited, what does that company do, and when is it repayable?
3. Which customer grew from ₹917.98 lakh to ₹2,206.03 lakh of revenue in two years, in which market, and on what payment terms?
4. Why did inventories reach ₹2,750.16 lakh, about 203 days of purchases, in a business that does not manufacture?
5. Which brands and trademarks used in the business are owned by the promoters rather than the company, and what does the company pay for the use of them?

1Sources and cited facts

This study was read from 1 document the company filed. The 91 figures it cites are listed under the document each came from, with the page and the sentence as printed.