Bird Machines Limited IPO

01At a glance

What the company does: cuts, bends, welds and machines steel plates and sections into components and assemblies made to customers' drawings, mainly for original equipment manufacturers (OEMs), at one plant at Baghola, Haryana (DRHP p.133, DRHP p.134).

Who pays it: OEMs and other industrial customers, not named in the document; the largest customer was 16.14% of FY26 revenue, the top five 56.61% and the top ten 86.20% (DRHP p.25, DRHP p.26). Customers in Haryana brought 58.61% of FY26 revenue (DRHP p.27).

Why it is raising money: up to ₹19.5 crore to repay part of an Indian Bank cash credit facility and up to ₹5.9 crore for new machinery at the existing plant, with the general corporate purposes amount left blank (DRHP p.88, DRHP p.101). There is no offer for sale (DRHP p.1).

How fast it has grown: revenue from operations from ₹70.4 crore in FY24 to ₹95.2 crore in FY26, about 16.2% a year, and profit after tax from ₹1.1 crore to ₹5.1 crore, about 112.2% a year (our arithmetic, DRHP p.53).

The one thing to understand: stock in the factory is large against sales. Inventory was ₹46.1 crore at March 31, 2026, about 48% of FY26 revenue, of which work in progress was ₹37.9 crore (DRHP p.52, DRHP p.223). Borrowings were ₹43.7 crore, 1.84 times net worth (DRHP p.234).

02The business, in plain words

What Bird Machines does

Bird Machines was incorporated on April 07, 2008 as Bird Machines Private Limited and took over the partnership firm M/s Bird Machines as a going concern from September 15, 2008 (DRHP p.133). It became a public company with a fresh certificate dated May 01, 2023 (DRHP p.2). The document says the business was started by Late Iqbal Singh Bhagat, an erstwhile promoter, and Prabh Jyoti Singh (DRHP p.133).

The work is business to business and order driven (DRHP p.133, DRHP p.152). The steps, as the document describes them for its three process types (DRHP p.143 to DRHP p.148):

• Raw material: steel plates and sections, hot and cold rolled, bought in India, plus bought-out parts such as bushes (DRHP p.148, DRHP p.149).
• Cutting: CNC plasma cutting to the customer's drawing, then buffing (DRHP p.143).
• Forming: straightening on presses, punching, bending (DRHP p.143, DRHP p.145).
• Welding: tacking in fixtures, then MIG welding, grinding and buffing (DRHP p.144).
• Machining: boring and other machining to tolerance (DRHP p.144).
• Finishing: powder coating is outsourced (DRHP p.146).
• Dispatch: inspection, packing in metal pallets or trolleys, dispatch with test certificates (DRHP p.144).

An OEM sends a drawing and a purchase order after qualifying the company as a vendor → the company cuts, forms, welds and machines steel into the part → it inspects, packs and delivers it → it is paid the agreed price per part (DRHP p.152, DRHP p.153).

The product range is grouped by weight: heavy fabrications above 20 kg for mining, construction and agriculture, medium fabrications of 10 to 20 kg, light fabrications of 1 to 10 kg, and machined components (DRHP p.141, DRHP p.142). Examples named are pin assemblies, interlever components and tipping lever components (DRHP p.143, DRHP p.144, DRHP p.146).

The plant at Killa No. 21/2, 22/1, 22/2, Baghola Tatarpur Road covers about 62,291 sq ft and is owned; a warehouse of about 16,584 sq ft at Samaypur, Ballabgarh is also owned (DRHP p.157). The plant holds ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certification (DRHP p.152). The company had 52 employees on its payroll, plus contract workers (DRHP p.156). It exports small amounts to Brazil, the UK and the USA (DRHP p.133, DRHP p.137). The awards listed include recognition at the JCB India Supplier Conference in 2009 and at Escorts Kubota Limited's supplier meet in 2024 for 24 years of association (DRHP p.155).

Earnings equation: Revenue = tonnes of components made × price per tonne. The document gives tonnes made, not tonnes sold, and gives no prices, so the equation can only be approached through output (see section 04).

03Where the money comes from

The company has one business segment and gives no split of revenue by product or weight class (DRHP p.228, DRHP p.252). All revenue is sale of finished goods (DRHP p.225).

By state, share of revenue from operations (DRHP p.27, DRHP p.28):

Uttar Pradesh rose from ₹2.4 crore in FY24 to ₹21.4 crore in FY26, Rajasthan fell from ₹18.6 crore to ₹7.7 crore, and Delhi appeared at ₹7.9 crore in FY26 (DRHP p.27). Exports were ₹3.2 crore in FY24 and ₹1.2 crore in FY26 (DRHP p.31).

Bird Machines customers: how concentrated the revenue is

Source: DRHP p.25, DRHP p.26, DRHP p.148. The customers are shown as Customer 1 to Customer 10 and are not named (DRHP p.148). The largest customer brought ₹15.4 crore in FY26 against ₹17.7 crore in FY24 (DRHP p.148). Read from the filing: revenue depends on a few customers in every year shown; ten customers brought 86.20% of FY26 revenue (DRHP p.26). There are no long-term agreements with customers (DRHP p.26). Read from the filing: Customer 4's FY26 revenue of ₹7.9 crore is the same figure as FY26 revenue from Delhi (DRHP p.148, DRHP p.27).

On the supply side, the top ten suppliers were 82.17% of FY26 purchases, 87.31% in FY25 and 87.39% in FY24 (DRHP p.29), and the top five 66.05% in FY26 (DRHP p.252). The largest supplier was 25.62% of FY26 purchases and 41.82% of FY25 (DRHP p.148). There are no formal supply contracts (DRHP p.30).

04The growth record

Bird Machines financials: revenue, profit and margins

Source: DRHP p.52, DRHP p.53, DRHP p.54, DRHP p.108, converted from ₹ lakh; borrowings are long-term plus short-term borrowings (DRHP p.52). Revenue from operations went from ₹70.4 crore in FY24 to ₹95.2 crore in FY26 and profit after tax from ₹1.1 crore to ₹5.1 crore (DRHP p.53). Revenue grew 0.50% in FY24, 16.06% in FY25 and 16.42% in FY26 (DRHP p.108).

Our arithmetic over FY24 to FY26: revenue grew about 16.2% a year and profit after tax about 112.2% a year (our arithmetic, DRHP p.53); EBITDA grew about 70.1% a year (our arithmetic, DRHP p.108). EBITDA margin moved from 7.29% to 15.61%, up 832 basis points, so from 7.3% to 15.6% rounded (DRHP p.108).

The year ends on March 31 throughout. Restatement changed profit: FY26 profit after tax was ₹5.01 crore audited and ₹5.08 crore restated, FY25 ₹3.02 crore audited and ₹3.29 crore restated, FY24 ₹1.27 crore audited and ₹1.13 crore restated, mainly for gratuity, leave encashment, tax and other adjustments (DRHP p.235). The FY24 accounts were re-audited for the restatement, and the FY25 accounts were audited by D A R P N & Company with an unmodified opinion (DRHP p.204). The financial ratios note gives RoCE of 28.00% for FY26 and 30.99% for FY25, against 33.90% and 39.82% in the KPI table (DRHP p.233, DRHP p.108).

What sits around the record:

• Cash: operating cash flow was ₹9.1 crore in FY26, ₹5.9 crore in FY25 and ₹1.0 crore in FY24 (DRHP p.54). Spending on plant and equipment was ₹15.2 crore in FY26 and ₹14.0 crore in FY25 (DRHP p.54).
• Other income was ₹0.13 crore in FY26, about 1.9% of profit before tax (our arithmetic, DRHP p.53).
• Debt: borrowings were ₹43.7 crore at March 31, 2026, debt to equity 1.84 times, so 1.8× (DRHP p.234), and net of ₹1.9 crore of cash about 2.8× FY26 EBITDA (our arithmetic, DRHP p.52, DRHP p.108). Return on capital employed was 33.90%, so 33.9% rounded (DRHP p.108). Finance cost was ₹4.0 crore in FY26 (DRHP p.53).
• Stock: inventory was ₹46.1 crore at March 31, 2026, of which work in progress ₹37.9 crore (DRHP p.52, DRHP p.223).
• Receivables: about 36 days of revenue at March 2024 and 62 days at March 2026 (our arithmetic, DRHP p.52, DRHP p.53).
• Promoter loans: unsecured loans from the three promoters and two relatives were ₹2.8 crore at March 31, 2026, repayable on demand (DRHP p.56).
• Customers and suppliers: the largest customer was 16.14% of FY26 revenue, so 16.1% rounded, the top five 56.61%, so 56.6%, and the top ten 86.20%, so 86.2% (DRHP p.25, DRHP p.26); the top ten suppliers were 82.17% of FY26 purchases, so 82.2% (DRHP p.29); Haryana was 58.61% of FY26 revenue, so 58.6% (DRHP p.27).
• Contingent liabilities: ₹1.2 crore of outstanding tax demands at March 31, 2026 (DRHP p.57).
• Capacity: fabrication utilisation was 87.57% in FY26, so 87.6% rounded (DRHP p.32).
• Cases: 5 criminal and 1 tax proceeding against the promoters, by the document's count (DRHP p.27).
• Use of the issue: ₹19.5 crore of the fresh issue is for repaying borrowings and ₹5.9 crore for machinery (DRHP p.88).

05What the growth is made of

Revenue from operations rose ₹24.7 crore from FY24 to FY26 (our arithmetic, DRHP p.53).

Volume: fabrication output was 7,086 tonnes in FY24, 8,581 tonnes in FY25 and 9,562 tonnes in FY26; machining output 1,613, 2,614 and 2,330 tonnes (DRHP p.32). Together that is 8,699 tonnes in FY24 and 11,892 tonnes in FY26 (our arithmetic, DRHP p.32).

Realisation, read from output: revenue per tonne of fabrication and machining output was about ₹80,974 in FY24 and about ₹80,031 in FY26 (our arithmetic, DRHP p.32, DRHP p.53). This adds two process types that may count the same part twice and is output, not tonnes sold, so it does not separate price from mix.

The management discussion says the increase in revenue is "by and large linked to increase in volume" (DRHP p.252). The document gives no tonnes sold, no prices and no revenue by product, so the increase cannot be split cleanly into volume and price. That is the finding.

Where the margin came from (our arithmetic, DRHP p.53):

• Materials: cost of materials consumed after the change in inventories was about 77.2% of revenue in FY24 and about 75.7% in FY26.
• Wages: employee cost fell from ₹5.9 crore in FY24 to ₹4.6 crore in FY25 and ₹3.6 crore in FY26, from 8.4% to 3.8% of revenue. The management discussion puts this down to fewer employees and lower salaries and wages (DRHP p.247).
• Other expenses: ₹4.9 crore in FY24 and ₹4.5 crore in FY26 (DRHP p.53).
• Below EBITDA: depreciation rose from ₹0.75 crore to ₹4.4 crore and finance cost from ₹3.0 crore to ₹4.0 crore (DRHP p.53).

Gross additions to plant and equipment were ₹13.3 crore in FY25 and ₹14.2 crore in FY26 (DRHP p.222). Installed fabrication capacity rose from 10,080 to 10,920 tonnes a year in FY26 (DRHP p.32).

06Earnings quality

The item that needs explaining is work in progress. It was ₹22.7 crore at March 2024, ₹25.3 crore at March 2025 and ₹37.9 crore at March 2026, about 40% of FY26 revenue (DRHP p.223, our arithmetic). The rise in stock of ₹12.5 crore in FY26 was credited in the profit and loss account as a change in inventories, while raw material stock fell from ₹21.1 crore to ₹7.5 crore (DRHP p.53, DRHP p.225). The document describes the business as order driven, with finished goods made to customer schedules (DRHP p.152). It does not say what the work in progress is, for which orders, or how long it has been held.

Receivables rose from ₹5.7 crore at March 2025 to ₹16.1 crore at March 2026, of which ₹15.9 crore was less than six months overdue from the due date (DRHP p.52, DRHP p.230). The ratio note explains the change in receivable turnover as revenue having increased (DRHP p.233).

Some figures differ inside the document: the risk factor says materials were 88.80% of revenue, counting materials consumed before the change in inventories (DRHP p.28); RoE for FY24 is 10.57% in the KPI table and 9.69% in the ratio note (DRHP p.108, DRHP p.233); paid-up capital for FY25 is ₹96.65 lakh in the DRHP and ₹96.55 lakh in the abridged prospectus (DRHP p.52, AP p.8). Inside the cash flow statement, "Share Premium on shares other than cash" of ₹3.15 crore is shown as a financing inflow in FY26, though the shares were issued on conversion of a loan (DRHP p.54, DRHP p.73).

07The balance sheet

At March 31, 2026 total assets were ₹97.3 crore: property, plant and equipment ₹29.1 crore, inventories ₹46.1 crore, trade receivables ₹16.1 crore, loans and advances ₹3.1 crore and cash and bank ₹1.9 crore (DRHP p.52). Against them: long-term borrowings ₹13.7 crore, short-term borrowings ₹30.0 crore, trade payables ₹26.4 crore, other liabilities and provisions ₹3.4 crore and net worth ₹23.7 crore (DRHP p.52).

Borrowings of ₹43.7 crore at March 31, 2026 were (DRHP p.218, DRHP p.219, DRHP p.220):

Source: DRHP p.220, DRHP p.240, DRHP p.241; the rows are our grouping of the lender list and round to the total. The Indian Bank loans are secured on the factory, the Samaypur warehouse and a residential property at 2427, Sector 9, Faridabad (DRHP p.220). Four unsecured business loans, from Godrej Finance, Kisetsu Saison Finance, Maxemo Capital and Unity Small Finance Bank, were sanctioned on March 30 and 31, 2026 (DRHP p.240, DRHP p.241). The promoters have given personal guarantees for the bank facilities (DRHP p.39). Indian Bank gave its no objection to the issue on September 15, 2026 (DRHP p.267).

Source: DRHP p.234, DRHP p.88. The capitalisation statement leaves the post-issue column blank (DRHP p.234). The loan to be repaid is the Indian Bank cash credit, ₹25.6 crore outstanding at August 31, 2026 (DRHP p.101). A cash credit is a revolving limit; the document does not say whether the limit will be reduced after repayment. There are no capital commitments (DRHP p.57).

08What the money is for

Bird Machines IPO objects: what the money is for

Source: DRHP p.88, DRHP p.89. The rupee size of the fresh issue depends on a price not yet set, so the share of each object cannot be worked out (DRHP p.88).

Repayment, ₹19.5 crore, in FY27: of the Indian Bank cash credit sanctioned at ₹26.0 crore, renewed April 18, 2026, at 8.75% (DRHP p.89, DRHP p.101). The auditor has certified that the loan was used for its stated purpose (DRHP p.101).

Machinery, ₹5.9 crore: ₹4.4 crore in FY27 and ₹1.5 crore in FY28 (DRHP p.89). Seven items, from quotations dated July 29 to August 29, 2026, priced before GST (DRHP p.90 to DRHP p.100):

• 12 kW laser cutting machine, TMNL India: ₹1.18 crore (DRHP p.97).
• Horizontal machining centre Orion H6600, Bharat Fritz Werner: ₹2.98 crore with options (DRHP p.99).
• CNC hydraulic press brake 450-31, Hindustan Hydraulics: ₹0.86 crore (DRHP p.96).
• CNC vertical machining centre, Bharat Fritz Werner: ₹0.35 crore after discount (DRHP p.100).
• 10 ton overhead crane and 1 ton jib crane, Light Lift India: ₹0.37 crore together (DRHP p.92, DRHP p.94).
• MIG/MAG welding machine, Panasonic, Fair Deal Components: ₹0.12 crore (DRHP p.96).

No orders have been placed (DRHP p.43). GST on the quotations adds about ₹1.06 crore to the ₹5.86 crore total (our arithmetic, DRHP p.90 to DRHP p.100). Cost overruns are to come from general corporate purposes or internal accruals (DRHP p.100). The objects have not been appraised, and no monitoring agency will be appointed because the issue is below ₹50 crore (DRHP p.103, DRHP p.63). ₹0.11 crore of issue expenses had been paid from internal accruals by August 31, 2026 (DRHP p.102).

Into the business the fresh issue of up to 35,00,000 shares, at a price not yet set (DRHP p.50). To selling shareholders nothing: there is no offer for sale (DRHP p.1).

09Who is selling

Bird Machines IPO offer for sale: who is selling

Nobody. The whole issue is a fresh issue of up to 35,00,000 shares of ₹10, amount not set (DRHP p.71), and the document marks the offer for sale “NOT APPLICABLE AS THE ENTIRE ISSUE CONSTITUTE FRESH ISSUE OF EQUITY SHARES” (DRHP p.1, AP p.1). The promoters and promoter group will not take part in the issue (DRHP p.86). The company is not considering any pre-IPO placement (DRHP p.75).

10Promoters

The promoters are Prabh Jyoti Singh, Sandeep Singh and Arvinder Pal Singh (DRHP p.194). The document states that Sandeep Singh and Arvinder Pal Singh are brothers of Prabh Jyoti Singh and names Late Iqbal Singh Bhagat as the father of all three (DRHP p.178, DRHP p.175). Each holds 22,20,000 shares, 33.14%, 99.41% together (DRHP p.78).

• Prabh Jyoti Singh, 60, Chairperson and Managing Director, a director since incorporation, diploma in electrical engineering, more than 29 years in engineering and fabrication, responsible for overall operations (DRHP p.175, DRHP p.177).
• Sandeep Singh, 50, Executive Director, a director since incorporation, senior secondary education, more than 26 years in the industry, responsible for commercial and administrative work (DRHP p.175, DRHP p.177).
• Arvinder Pal Singh, 58, Executive Director, a director since incorporation, Bachelor of Engineering in industrial electronics, more than 18 years in the industry, responsible for procurement, logistics and inventory (DRHP p.175, DRHP p.177).

Pay: remuneration to the three was ₹0.48 crore in each of FY24, FY25 and FY26: ₹0.18 crore to Prabh Jyoti Singh, ₹0.156 crore to Arvinder Pal Singh and ₹0.144 crore to Sandeep Singh (DRHP p.55). The approved terms are ₹1,50,000 a month for Prabh Jyoti Singh, ₹1,30,000 for Arvinder Pal Singh and ₹1,20,000 for Sandeep Singh (DRHP p.179, DRHP p.180). There is no bonus or profit-sharing plan for directors (DRHP p.180).

Loans: at March 31, 2026 the company owed Prabh Jyoti Singh ₹0.77 crore, Arvinder Pal Singh ₹0.55 crore, Sandeep Singh ₹0.47 crore, Jaspreet Kaur ₹1.00 crore and Jyoti Bhagat ₹0.03 crore, ₹2.8 crore in all, unsecured and repayable on demand (DRHP p.56, DRHP p.220). No interest rate is stated for them (DRHP p.220).

Other businesses: none of the promoters holds another directorship or partnership (DRHP p.194, DRHP p.195). The promoter group firms are M/s The Pattern Souk, M/s Harminder Kaur, M/s Musket Traders and M/s Aashiana Construction Company (DRHP p.199). Bird Exim LLP, in which the directors had significant influence, was struck off on May 25, 2026 (DRHP p.55). There is no group company and the promoters have no venture in the same line of business (DRHP p.200, DRHP p.197).

Guarantees and pledges: the promoters guarantee the bank facilities, and a residential property at 2427, Sector 9, Faridabad, the promoters' listed address, is part of the security (DRHP p.39, DRHP p.220, DRHP p.59). No promoter shares are pledged (DRHP p.80).

Cases: 5 criminal and 1 tax proceeding against the promoters, by the document's count (DRHP p.27). The criminal matters are cheque dishonour complaints filed by a steel supplier in 2022, now pending against Arvinder Pal Singh, and a Special Leave Petition in the Supreme Court against Prabh Jyoti Singh and Sandeep Singh; the tax matter is an income tax assessment of Sandeep Singh for AY 2025-26 (DRHP p.254 to DRHP p.262). Details are in section 23.

Promoter economics: the promoters' shares came from the 2008 subscription at ₹10 and allotment at ₹20, a 3:8 bonus in 2010, an allotment at ₹20 in 2012, conversions of loans into shares at ₹97 in March 2022, ₹285 in March 2023 and ₹210 in July 2025, transfers from Jyoti Bhagat on May 12, 2025, and the 5:1 bonus of July 27, 2026 (DRHP p.79 to DRHP p.81).

The capital structure puts their average cost at ₹12.48 for Prabh Jyoti Singh, ₹7.82 for Sandeep Singh and ₹7.03 for Arvinder Pal Singh (DRHP p.82). The May 2025 transfers are shown as gifts in the tables, while the footnotes say Sandeep Singh and Arvinder Pal Singh "purchased" the shares (DRHP p.80, DRHP p.81).

11Who already owns it

Bird Machines promoter holding before and after the IPO

Source: DRHP p.79; the after-issue column is our arithmetic. There are 66,99,288 shares of ₹10 before the issue and 7 shareholders (DRHP p.71, DRHP p.86). If all 35,00,000 new shares are issued the total becomes up to 1,01,99,288 shares (DRHP p.50), and the promoters' 99.41% becomes about 65.3%, so 99.4% → 65.3% (our arithmetic, DRHP p.50, DRHP p.79). Promoters and promoter group together go from 100% to about 65.7% (our arithmetic, DRHP p.50, DRHP p.79). The document leaves the after-issue percentages blank (DRHP p.79).

The promoter group table names Jyoti Bhagat as the promoters' mother, Jaspreet Kaur Bhagat as the spouse of Prabh Jyoti Singh, Rabnoor Singh as the son of Prabh Jyoti Singh and Arundeep Kaur as the spouse of Arvinder Pal Singh (DRHP p.198). No fund or company holds shares. 20% of the post-issue capital held by the promoters is to be locked in for three years as the minimum promoters' contribution (DRHP p.82).

In 2011 and 2012 the company allotted 81,250 shares at ₹200 and 44,000 shares at ₹500 to fourteen private companies, among them Rising Portfolio India Pvt Ltd and Omexpo Enterprises Pvt Ltd (DRHP p.73, DRHP p.74). None of them is a shareholder today, and the document does not show when or at what price they left (DRHP p.77).

12What changed just before the IPO

• Revenue and profit: revenue from operations went from ₹70.4 crore in FY24 to ₹95.2 crore in FY26 and profit after tax from ₹1.1 crore to ₹5.1 crore (DRHP p.53).
• Receivables: about 36 days of revenue in FY24 and 62 days in FY26, so 36 → 62 (our arithmetic, DRHP p.52, DRHP p.53).
• Promoter pay: ₹0.48 crore in FY24 and ₹0.48 crore in FY26 (DRHP p.55).
• Bonus issue: 5:1, 55,82,740 shares on July 27, 2026, taking the count to 66,99,288 (DRHP p.73).
• Last allotment before the IPO: 1,50,000 shares at ₹210 a share on conversion of promoter loans, ₹3.15 crore, in July 2025, before the bonus (DRHP p.73).
• Pre-IPO placement: none; the company is not considering one (DRHP p.75).
• Family transfers: on May 12, 2025 Jyoti Bhagat moved 3,86,725 shares to the three promoters, giving each 3,20,000 shares before the July 2025 allotment (DRHP p.80, DRHP p.81). Iqbal Singh Bhagat held 39.77% at March 31, 2024 and died on February 27, 2024 (DRHP p.217, DRHP p.181).
• Auditor: Anurag Awasthi & Co. resigned June 20, 2025; D A R P N and Company served from June 30, 2025 to July 10, 2026; Abhijit Dutt & Associates, Kolkata, appointed July 15, 2026; both resignations cite pre-occupation (DRHP p.64).
• Converted to a public company: shareholders approved on April 01, 2023; fresh certificate May 01, 2023 (DRHP p.2).
• Board and officers: independent directors Pooja Bansal, Udbhaw Dwivedi and Kumari Kashish appointed January 19, 2026; Kumari Kashish resigned September 02, 2026; Amit Tiwari appointed August 17, 2026 (DRHP p.181). Ajay Bhati was CFO from March 02 to March 30, 2026; Rahul became CFO on July 27, 2026; Sweety became Company Secretary on April 01, 2025 (DRHP p.192). Committees formed February 09, 2026 and reconstituted August 31, 2026 (DRHP p.182).
• Capital spending: ₹14.0 crore in FY25 and ₹15.2 crore in FY26 on plant and equipment, against ₹0.29 crore in FY24 (DRHP p.54).
• Debt: borrowings rose from ₹25.2 crore at March 2024 to ₹43.7 crore at March 2026 (DRHP p.52); four unsecured loans were sanctioned on March 30 and 31, 2026 (DRHP p.240, DRHP p.241).
• Sales mix: Uttar Pradesh rose from 3.43% of revenue in FY24 to 22.52% in FY26 and Rajasthan fell from 26.43% to 8.09% (DRHP p.27).
• Wages: employee cost fell from ₹5.9 crore in FY24 to ₹3.6 crore in FY26 (DRHP p.53).
• Dividend: none since incorporation (DRHP p.201).

13Capacity and expansion

Source: DRHP p.32, DRHP p.151. Capacity is certified by Garg and Associates, Chartered Accountants, dated September 3, 2026 (DRHP p.151). The objects chapter says the plant operated at “approximately 80%” of installed capacity in FY26 (DRHP p.90). The document warns that capacity figures rest on management assumptions (DRHP p.42).

The planned addition is the seven machines in section 07, which the company says are “expected to increase our available manufacturing capacity at various stages of production” (DRHP p.91). The document does not state the tonnes they add or when they will run. The existing plant lists 48 types of machine, among them three plasma cutters, one CNC brake press, two vertical machining centres and 22 MIG welding sets (DRHP p.149 to DRHP p.151). The step from capacity to revenue cannot be made from the filing.

14Market size and industry structure

Bird Machines industry: market size and growth

As claimed: the Industry Overview chapter is drawn from websites and publicly available documents and has not been independently verified by the company or anyone connected with the issue (DRHP p.113). It is not an industry report commissioned for the issue; it quotes pages from Research and Markets, The Business Research Company, IMARC Group, Mordor Intelligence, Market Research Future and Marketsandata (DRHP p.123 to DRHP p.132).

Citing Mordor Intelligence, the chapter says the India metal fabrication market is expected to grow from USD 8.03 billion in 2025 to USD 8.51 billion in 2026 and to USD 11.56 billion by 2031, a CAGR of 6.32% over 2026 to 2031 (DRHP p.124). Citing IMARC and Marketsandata, it says the same market was USD 3.53 billion in 2025 and is projected to reach USD 5.22 billion by 2034, a CAGR of 4.23% (DRHP p.129).

The two 2025 figures differ by more than two times (our arithmetic, DRHP p.124, DRHP p.129). The global metal fabrication market is put at about US$22.55 billion in 2025, projected by The Business Research Company to reach US$27.19 billion by 2030 at 3.8% a year (DRHP p.123).

The part that is addressable: the company makes customer-specific fabricated and machined steel components for OEMs, mainly in north India (DRHP p.133, DRHP p.27). The chapter does not size this part. It says machining held 34.28% of 2025 service-type revenue, carbon steel 46.55% of the 2025 material mix and construction and infrastructure 35.88% of 2025 end-user revenue (DRHP p.127, DRHP p.128). It does not size components for tractors, construction equipment or other OEM machinery, or the north Indian market.

What the company is today: FY26 revenue of ₹95.2 crore (DRHP p.53). The chapter gives the market in US dollars and gives no rupee figure, so the company's share of it is not computed here.

Size over time: the Mordor Intelligence figures quoted run from USD 8.03 billion in 2025 to USD 11.56 billion in 2031; the IMARC figures from USD 3.53 billion in 2025 to USD 5.22 billion in 2034 (DRHP p.124, DRHP p.129). These are the sources' own projections as quoted in the chapter. The chapter also gives national data: real GDP growth estimated at 7.6% in FY 2025-26, manufacturing growth of 3.9% in FY 2025 within an index of industrial production that grew 4.0%, and capital goods output growth of 5.5% in FY 2025 against 6.3% in FY 2024 (DRHP p.115, DRHP p.117, DRHP p.119).

Segments: the chapter divides the market by process (welding the largest, cutting growing), by service type (machining, welding), by material (carbon steel, aluminium, stainless and alloy steel), by end use (construction, automotive, energy, aerospace and defence) and by region (DRHP p.126 to DRHP p.129). Welding is quoted to grow at 7.34% a year through 2031 and aerospace and defence at 8.18% (DRHP p.127, DRHP p.128). Western India is quoted at 32.88% of 2025 revenue; Northern and Eastern India, where the company sells, are described without a share (DRHP p.128, DRHP p.129). The company sits in cutting, welding and machining of carbon steel components for OEMs (DRHP p.143).

What drives demand: the chapter names investment in automotive manufacturing and electric vehicles, automation and robotics, renewable energy and construction (DRHP p.125, DRHP p.126). It quotes a highway budget of INR 2.87 lakh crore and railway capital spending of INR 2,65,200 crore for FY26, domestic crude steel of 235 million tonnes by November 2025 and defence output of INR 1.78 lakh crore in FY2025-26 (DRHP p.128, DRHP p.124, DRHP p.131). It notes public capital spending of INR 12.2 lakh crore in the FY2026-27 budget (DRHP p.121).

Structure: the chapter calls the Indian market fragmented, with many small and medium firms and large EPC (engineering, procurement and construction) companies (DRHP p.123). It names Larsen & Toubro, Kirby Building Systems, Zamil Industrial Investment Co., ISGEC Heavy Engineering, Pennar Industries, Godrej & Boyce and Salasar Techno Engineering as leaders (DRHP p.130). It says buyers increasingly favour suppliers with documentation and certification, and that small firms without them will find premium orders harder to reach (DRHP p.130). The business chapter says the company competes with organised and unorganised players on quality, price and delivery (DRHP p.35, DRHP p.153).

Inputs and trade: steel and aluminium prices are the main input risk; the chapter cites a 2% year-on-year fall in a steel price index in FY2025-26 (DRHP p.130). The company buys all raw material in India (DRHP p.149). The chapter does not size imports or exports of fabricated components.

Rules: the business needs a factory licence, a pollution board exemption certificate, a fire NOC, ground water permission and labour registrations (DRHP p.267 to DRHP p.271). The chapter mentions ISO 3834-2 and EN 1090 welding certifications as buyer requirements (DRHP p.127).

What the chapter says can go wrong: steel and aluminium price swings, competition from unorganised small firms, the capital cost of CNC and robotic equipment, a shortage of skilled labour, energy costs and regulatory compliance (DRHP p.130, DRHP p.131, DRHP p.132). The chapter does not discuss order cycles of tractor or construction equipment makers, customer concentration or seasonality; the management discussion says the business is not seasonal (DRHP p.252).

15Competitive position

Bird Machines competitors

Source: DRHP p.107, converted from ₹ lakh. The Automotive Axles revenue is printed with misplaced separators and is not converted here (DRHP p.107). Federal-Mogul Goetze's revenue is about 20 times the company's (our arithmetic, DRHP p.107). The document gives no PAT margin, RoCE or borrowings for the peers.

What the company puts forward: promoters with long experience, repeat orders from customers, an integrated plant doing cutting to dispatch under one roof, and quality control at each stage (DRHP p.135, DRHP p.136). Against that: one plant, no long-term customer or supplier contracts, ten customers bringing 86.20% of revenue, and competition from unorganised players who can offer lower prices (DRHP p.29, DRHP p.26, DRHP p.35). The company's own SWOT lists concentration at a single location and time-lagged pass-through of steel prices as weaknesses (DRHP p.154).

16Peers the company named

Peers named in the offer document: Automotive Axles Ltd and Federal-Mogul Goetze (India) Ltd (DRHP p.107).

Both are listed automotive component makers with revenues many times the company's; Federal-Mogul Goetze's FY26 revenue was ₹1,924.1 crore (DRHP p.107). The document gives their P/E as 15.38 and 14.93 at closing prices on BSE on September 23, 2026 of ₹1,672.95 and ₹453.30 (DRHP p.107). The company's FY26 EPS is ₹7.62 on 66,66,822 bonus-adjusted weighted shares (DRHP p.226). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Bird Machines IPO risks

Customers: ten customers brought 86.20% of FY26 revenue and the largest 16.14% (DRHP p.26, DRHP p.25) → there are no long-term contracts and orders can be cut or cancelled → the top five's share was 82.26% in FY25 (DRHP p.26).

Business: one plant: all manufacturing is at Baghola, Haryana (DRHP p.29) → a shutdown would stop production → customers in Haryana, Uttar Pradesh and Rajasthan brought 89.22% of FY26 revenue (our arithmetic, DRHP p.27).

Business: stock: work in progress was ₹37.9 crore at March 31, 2026 (DRHP p.223) → stock that is not delivered and billed does not bring cash → inventory was about 177 days of FY26 revenue (our arithmetic, DRHP p.52, DRHP p.53).

Suppliers: no formal supply contracts, and the top ten suppliers were 82.17% of FY26 purchases (DRHP p.30, DRHP p.29) → steel price rises may not be passed on quickly → material cost was about 75.7% of FY26 revenue after the change in inventories (our arithmetic, DRHP p.53).

Financial: debt: borrowings were ₹43.7 crore at March 31, 2026 (DRHP p.234) → interest takes a large part of operating profit → finance cost was ₹4.0 crore against profit before tax of ₹6.7 crore in FY26 (DRHP p.53).

Financial: costly loans: unsecured loans from finance companies carry 13.50% to 18.51% interest (DRHP p.220) → they cost about twice the bank rate of 8.75% → four were taken on March 30 and 31, 2026 (DRHP p.240, DRHP p.241).

Financial: demand loans: ₹6.9 crore of unsecured loans are repayable on demand (DRHP p.39) → a call would need cash at short notice → ₹2.8 crore of it is from the promoters and two relatives (DRHP p.56).

Legal: a steel supplier has four cheque dishonour complaints and an insolvency petition pending against the company from 2022 (DRHP p.254 to DRHP p.257) → an adverse result would bring payment and costs → the insolvency petition claims ₹1.48 crore of unpaid invoices and has not been admitted (DRHP p.257).

Regulation: tax: outstanding income tax and GST demands, with contingent tax demands of ₹1.2 crore at March 31, 2026 (DRHP p.258, DRHP p.57) → appeals may fail → an income tax demand for AY 2025-26 of ₹0.83 crore plus ₹0.11 crore interest is outstanding after a ₹0.40 crore payment (DRHP p.258).

Regulation: filings and approvals: past delays in company law filings of up to 1,722 days, late statutory dues, and pending renewals of the fire NOC and ground water permission (DRHP p.34, DRHP p.32, DRHP p.271) → penalties may follow → no show cause notice has been received for the filings (DRHP p.34).

Promoters: after the issue the promoters would hold about 65.3% (our arithmetic, DRHP p.50, DRHP p.79) → they control board and shareholder votes → the three are brothers and family members hold every other pre-issue share (DRHP p.178, DRHP p.79).

Issue-specific: no orders have been placed for the machinery, and there is no monitoring agency (DRHP p.43, DRHP p.63) → use of the money rests on the board and audit committee → the machinery quotations are valid for about 180 days (DRHP p.92, DRHP p.97).

18Litigation and regulatory matters

Cases against Bird Machines and its promoters

The document counts, against the company, 4 criminal proceedings, 12 tax proceedings and 2 material civil cases, and against the promoters 5 criminal and 1 tax proceeding (DRHP p.26, DRHP p.27, AP p.10). The amounts below are what the documents claim or demand, not liabilities the company accepts.

Criminal: the four cheques, for ₹0.50 crore, ₹0.10 crore, ₹0.50 crore and ₹0.375 crore, were dated June to August 2022 and returned for insufficient funds, payment stopped or exceeding arrangements (DRHP p.255, DRHP p.256). On February 3, 2025 the Punjab and Haryana High Court quashed the complaints against Prabh Jyoti Singh and Sandeep Singh, holding they could not be held vicariously liable given their “dormant position as Directors” (DRHP p.255). The proceedings against Iqbal Singh Bhagat ended with that promoter's death (DRHP p.255). The contingent liabilities do not include these claims (DRHP p.57).

Tax, company (DRHP p.258, DRHP p.259):

• Income tax: AY 2025-26 demand of ₹0.83 crore outstanding plus ₹0.11 crore interest, after ₹0.40 crore paid; a 2022 attachment notice to two banks for about ₹1.01 crore relating to AY 2012-13, 2018-19 and 2020-21, with no demand showing on the portal; an AY 2009-10 appeal from 2015.
• GST: DRC-07 orders of ₹0.27 crore (FY 2021-22) and ₹0.92 crore (FY 2021-22 and 2022-23), both under appeal; a show cause notice of August 28, 2026 for ₹0.04 crore alleging input credit from a non-existent supplier, not yet answered; an ASMT-10 notice from 2019 of ₹0.36 crore for FY 2017-18.
• TDS: defaults of under ₹0.01 crore in all, across several years.

Regulatory: no actions by statutory or regulatory authorities against the company, promoters or directors, and no SEBI action against the promoters (DRHP p.257, DRHP p.262). By the company: a 2014 second appeal in the High Court against the State of Haryana over land in Sector 56, Ballabgarh, for which the company says it has no records, next hearing March 1, 2027 (DRHP p.259). Creditors: three material creditors were owed ₹19.3 crore at March 31, 2026; 22 small enterprises were owed ₹0.34 crore (DRHP p.264).

19Related-party transactions

Source: DRHP p.55, converted from ₹ lakh. Outstanding loans at March 31, 2026 were ₹2.8 crore from the promoters, Jaspreet Kaur and Jyoti Bhagat, against ₹2.0 crore at March 2025 and ₹0.13 crore at March 2024 (DRHP p.56). Director remuneration payable was ₹0.24 crore at March 2026 (DRHP p.56). There were no related-party sales, purchases or rent in the three years (DRHP p.55).

What appeared or changed in the two years before filing: the July 2025 conversion of ₹3.15 crore of promoter loans into shares at ₹210 (DRHP p.73); a ₹1.00 crore loan from Jaspreet Kaur in FY26 (DRHP p.55); Bird Exim LLP struck off on May 25, 2026 (DRHP p.55). The company says it believes all related-party dealings are at arm's length (DRHP p.43).

20What the offer document does not say

The names of the customers are not given; they are Customer 1 to Customer 10 (DRHP p.148). No order book is disclosed. Tonnes sold and prices are not given, and there is no revenue or margin by product class, so growth cannot be split into volume and price. What the ₹37.9 crore of work in progress consists of, for which orders and how old it is, is not explained (DRHP p.223).

How much capacity the new machines add is not stated (DRHP p.91). The issue size, price band, general corporate purposes amount, issue expenses, market maker and lot size are blank (DRHP p.88, DRHP p.50). The after-issue shareholding is blank (DRHP p.79). How and at what price the fourteen companies that subscribed in 2011 and 2012 exited is not shown (DRHP p.73, DRHP p.74).

The interest rate on promoter and family loans is not stated (DRHP p.220). The industry chapter gives no rupee market size for the company's segment.

Some inconsistencies are recorded as document matters, not business ones: the statement of tax benefits is signed for Abhijit Dutt & Associates under firm registration 016790C which the auditor table gives as D A R P N and Company's while Abhijit Dutt & Associates is 315049E (DRHP p.111, DRHP p.64); the abridged prospectus lists the machines differently from the DRHP, naming the laser machine twice and omitting the vertical machining centre (AP p.5, DRHP p.90);

the abridged prospectus heads its financial summary “period ended December 31, 2026” and calls its risk list the top ten “as per the Red Herring Prospectus” (AP p.8, AP p.9); the related-party list names Kumari Kashish as an independent director, who resigned before filing (DRHP p.55, DRHP p.181); Prabh Jyoti Singh's shares at March 2025 are 2,96,412 in the restated notes and 2,94,412 in the capital structure (DRHP p.217, DRHP p.78);

Arvinder Pal Singh's loan conversions and bonus shares are shown as cash consideration while the same allotments for the other promoters are not (DRHP p.81); the SWOT lists imported presses as a threat, a product the company does not make (DRHP p.154); the industry chapter's two sizes for the Indian market differ by more than two times (DRHP p.124, DRHP p.129);

and the RoCE for FY26 is 33.90% in the KPIs and 28.00% in the ratio note (DRHP p.108, DRHP p.233).

21Five questions for management

1. What did the ₹37.9 crore of work in progress at March 31, 2026 consist of, against which customer orders, and how much of it was more than six months old?
2. How many tonnes were sold in FY24, FY25 and FY26, and at what average price per tonne?
3. What share of FY26 revenue came from Escorts Kubota Limited and JCB, and which customer is Customer 4, the Delhi revenue of ₹7.9 crore?
4. How many tonnes a year of fabrication and machining capacity will the seven new machines add, and by when?
5. What amount does the company expect to pay M/s Steel Kart, and why is the ₹1.48 crore claim not shown as a contingent liability?

1Sources and cited facts

This study was read from 1 document the company filed. The 193 figures it cites are listed under the document each came from, with the page and the sentence as printed.