Blueocean Ecotech Limited IPO

01At a glance

What the company does: buys used PET bottles, washes and shreds them into flakes, melts and spins the flakes into recycled polyester staple fibre (rPSF) in several deniers, colours and cut lengths, and earns EPR certificates for the plastic it recycles, from a plant in Mandideep, Madhya Pradesh, with more fibre made under job work at its subsidiary's plant next door (DRHP p.151, DRHP p.152).

Who pays it: spinning mills, nonwoven, home furnishing, automotive, geotextile and filtration fabric makers, reached directly and through distributors; textile industry customers were 95.86% of FY26 revenue (DRHP p.152). Customers are not named for want of their consent (DRHP p.25). The largest brought 7.08% of FY26 revenue, the top five 28.56% and the top ten 46.36% (DRHP p.25).

Why it is raising money: ₹75.8 crore of the fresh issue goes to a new plant with two polyolefin recycling lines and ₹18.9 crore to captive solar power; ₹10.7 crore repays company loans and ₹10.0 crore goes into the subsidiary to repay its loans (DRHP p.91). There is no offer for sale (DRHP p.1).

How fast it has grown: revenue from ₹200.4 crore in FY24 to ₹425.0 crore in FY26, about 45.6% a year, and profit after tax from ₹2.9 crore to ₹12.1 crore, about 104.0% a year (our arithmetic, DRHP p.60). Almost all of the growth came in FY25, when revenue rose 88.88%; FY26 revenue rose 12.28% (DRHP p.41).

The one thing to understand: the company runs on borrowed money and on its promoters. Borrowings were ₹120.2 crore against net worth of ₹25.8 crore at March 31, 2026, ₹26.4 crore of the loans came interest free from the promoters, and the company has guaranteed ₹132.7 crore of bank loans taken by two promoter group companies (DRHP p.58, DRHP p.37, DRHP p.26).

02The business, in plain words

What Blueocean Ecotech does

Blueocean Ecotech makes recycled polyester staple fibre from post-consumer PET bottles (DRHP p.151). It has three sources of revenue:

• Recycled polyester staple fibre: in off white, black, super white and vanilla white grades, deniers from 1.2D to 6D, used for spinning yarn, nonwoven needle punching, geotextiles, wadding and filter cloth (DRHP p.154, DRHP p.155). Fibre was ₹407.0 crore of FY26 revenue, 95.76% (DRHP p.155).
• Scrap and incidental sales: processed waste, PET bottles and consumables, ₹11.4 crore in FY26 (DRHP p.253).
• EPR services: the company is registered with the Central Pollution Control Board as a Category I plastic waste processor and generates Extended Producer Responsibility certificates that bottle makers and brand owners need; EPR service sales were ₹6.6 crore in FY26 (DRHP p.155, DRHP p.156).

A spinning mill or nonwoven maker orders fibre of a given denier, colour and cut length → the company buys baled bottles from scrap dealers and aggregators → it sorts, de-labels, washes and shreds them into flakes, melts and extrudes the flakes, spins, draws, crimps, cuts and bales the fibre → it invoices against the purchase order (DRHP p.162, DRHP p.163, DRHP p.26).

The company was incorporated on December 18, 2018 as Badri Cotsyn Private Limited, became a public company on November 28, 2024 and took its present name on November 19, 2025 (DRHP p.188). Its own plant, on about 4,35,000 square feet leased from the Madhya Pradesh Industrial Development Corporation until 2080, had an installed capacity of 28,800 tonnes a year at March 31, 2026 (DRHP p.152, DRHP p.169).

The subsidiary Badri Ecofibres Private Limited, bought from the promoters Amit Gupta and Sumit Gupta in September 2026, runs a 32,400 tonne plant nearby that converts the company's PET flakes into fibre under an exclusive 15-year job work agreement (DRHP p.34, DRHP p.193). It holds ISO 9001, ISO 14001, OEKO-TEX Standard 100 and Global Recycled Standard certificates and has a 712.69 kWp rooftop solar plant (DRHP p.153, DRHP p.152).

It had 362 people on its rolls including six directors, 270 of them in production (DRHP p.167).

Earnings equation: Revenue = tonnes of fibre sold × price per kg + EPR certificates + scrap. The document gives one price: the average sale rate rose from ₹74.45 to ₹75.12 a kg between FY25 and FY26 (DRHP p.290). At that rate, FY26 fibre sales of ₹407.0 crore work out to about 54,200 tonnes, close to the 53,570 tonnes the two plants produced (our arithmetic, DRHP p.155, DRHP p.290, DRHP p.29). Tonnes sold are not given directly.

03Where the money comes from

By fibre grade (₹ crore):

Source: DRHP p.155, converted from ₹ lakh. Black fibre went from 8.92% of revenue in FY24 to 38.07% in FY26 while off white fell from 76.83% to 53.91% (DRHP p.155). No margin by grade is given.

By place: Punjab was 20.06% of FY26 revenue, Maharashtra 15.53%, Haryana 13.31%, Rajasthan 10.71% and Tamil Nadu 10.25%; Madhya Pradesh fell from 17.33% in FY25 to 7.89% (DRHP p.28). Exports, to Bangladesh, Nepal, Saudi Arabia and Spain, were ₹11.9 crore, 2.80% (DRHP p.28). The southern region rose from 5.62% of revenue in FY24 to 17.71% in FY26 (DRHP p.152).

Blueocean Ecotech customers: how concentrated the revenue is

Source: DRHP p.25. Revenue does not rest on one buyer: the largest FY26 customer brought ₹30.1 crore, and the top ten ₹197.1 crore of ₹425.0 crore (DRHP p.25). Concentration fell in each year shown. The company served 298 customers in FY26, against 237 in FY25 and 180 in FY24, with 170 new ones in FY26 (DRHP p.159); another page gives the FY26 count as 288 (DRHP p.160). There are no exclusivity agreements and no long-term volume commitments; orders come through purchase orders (DRHP p.25, DRHP p.26).

On the supply side, the top ten suppliers were 40.51% of FY26 raw material purchases and the largest 7.39% (DRHP p.32, DRHP p.33). Imported material went from 0.02% of purchases in FY24 to 8.51% in FY26 (DRHP p.43).

04The growth record

Blueocean Ecotech financials: revenue, profit and margins

Source: DRHP p.58, DRHP p.60, DRHP p.61, DRHP p.108, converted from ₹ lakh. Revenue went from ₹200.4 crore in FY24 to ₹425.0 crore in FY26 and profit after tax from ₹2.9 crore to ₹12.1 crore (DRHP p.60). The company's EBITDA leaves out other income (DRHP p.108). RoE swings because net worth was very small: ₹1.8 crore at March 2024 (DRHP p.58).

Our arithmetic over FY24 to FY26: revenue grew about 45.6% a year and profit after tax about 104.0% a year (our arithmetic, DRHP p.60); EBITDA grew about 34.7% a year (our arithmetic, DRHP p.108). EBITDA margin moved from 8.15% to 6.98%, down 117 basis points, so from 8.2% to 7.0% rounded (DRHP p.108). FY24 profit rests on an insurance claim: before an extraordinary item of ₹4.4 crore received for a fire, the company made a pre-tax loss of ₹1.0 crore that year (DRHP p.60, DRHP p.257). FY26 profit after tax rose 2.39% on FY25 (our arithmetic, DRHP p.60).

The year ends on March 31 throughout. The auditor reports no qualification and no modification in the restated statements (DRHP p.219). A pro forma statement that adds the subsidiary for FY26 shows revenue of ₹427.9 crore and profit after tax of ₹8.5 crore, because the subsidiary lost ₹3.6 crore after tax (DRHP p.281).

What sits around the record:

• Cash: operating cash flow was ₹17.4 crore in FY26 after −₹22.5 crore in FY25, when inventory absorbed ₹38.6 crore and receivables ₹18.8 crore (DRHP p.61).
• Other income was ₹2.0 crore in FY26, including ₹0.72 crore profit on selling fixed assets and ₹0.54 crore of exchange gain, about 11.5% of profit before tax of ₹17.3 crore (our arithmetic, DRHP p.60, DRHP p.253).
• Debt: borrowings were ₹120.2 crore at March 31, 2026 (DRHP p.58), debt to equity 4.66 times, so 4.7× (DRHP p.108), and net of ₹0.76 crore of cash about 4.0× FY26 EBITDA (our arithmetic, DRHP p.58, DRHP p.108). Return on capital employed was 15.64%, so 15.6% rounded (DRHP p.108). Finance cost was ₹7.5 crore in FY26 (DRHP p.60).
• Promoter loans: ₹26.4 crore of the borrowings at March 31, 2026 were unsecured loans from the promoters and promoter group, recallable at any time (DRHP p.37).
• Working capital: net working capital days were 81 in FY26, against 87 in FY25 and 60 in FY24 (DRHP p.27).
• Customers and suppliers: the largest customer was 7.08% of FY26 revenue, so 7.1% rounded, the top five 28.56%, so 28.6%, and the top ten 46.36%, so 46.4% (DRHP p.25); the top ten suppliers were 40.51% of FY26 raw material purchases, so 40.5% (DRHP p.33).
• Contingent liabilities: ₹134.8 crore at March 31, 2026, almost all of it guarantees given for Blueocean Ecopet Private Limited and Blueocean Rpet Private Limited, against ₹2.1 crore a year earlier (DRHP p.63).
• Capacity: combined utilisation of the two plants was 88% in FY26, against 93% in FY25 and FY24 (DRHP p.29).
• The issue: a fresh issue of up to 64,41,000 shares; the rupee size depends on a price not yet set (DRHP p.55). The objects are ₹75.8 crore for the new plant, ₹18.9 crore for solar power, ₹10.7 crore for repaying company loans and ₹10.0 crore for investing in the subsidiary to repay its loans (DRHP p.91).
• Pro forma profit: with the subsidiary added, FY26 profit after tax is ₹8.5 crore (DRHP p.281).

05What the growth is made of

Revenue rose ₹224.6 crore from FY24 to FY26 (our arithmetic, DRHP p.60). The company gives three explanations:

• FY25, a change in the group's structure: revenue rose 88.88% because the subsidiary moved from buying and selling on its own account to job work for the company, procuring material from the company and making finished goods for it on a largely exclusive basis (DRHP p.292). The subsidiary's own revenue fell from ₹114.2 crore in FY24 to ₹34.5 crore in FY25 and ₹27.7 crore in FY26 (DRHP p.192). Combined capacity went from 28,800 tonnes in FY24 to 61,200 tonnes in FY25, and production from 26,698 tonnes to 49,178 tonnes (DRHP p.29).
• FY26, volume and price: revenue rose 12.28% on higher quantities, new customers and an average rate up from ₹74.45 to ₹75.12 a kg (DRHP p.290). Production rose from 49,178 tonnes to 53,570 tonnes (DRHP p.29).
• Mix: black fibre rose from ₹17.9 crore in FY24 to ₹161.8 crore in FY26, while vanilla white fell from ₹38.7 crore in FY25 to ₹4.8 crore (DRHP p.155).

Read from the filing: production rose about 9% in FY26 and the average rate about 1%, which together are close to the 12.28% revenue rise (our arithmetic, DRHP p.29, DRHP p.290). The document gives no rate for FY24, so the FY25 jump cannot be split into volume and price; it is described only as a change of model (DRHP p.292).

06Earnings quality

The item that needs explaining is inventory. Stock was ₹93.0 crore at March 2026 against receivables of ₹34.1 crore, so the money tied up in the business sits mostly in bales and fibre, not in customer dues (DRHP p.58). In FY25 inventory rose by ₹38.6 crore and payables by only ₹9.4 crore, which is why operating cash flow was −₹22.5 crore that year (DRHP p.61). The provision for doubtful debts rose from ₹0.01 crore at March 2024 to ₹1.2 crore at March 2026, and ₹2.6 crore of receivables were more than a year old (DRHP p.39).

Two smaller points from the statements. The ₹10.0 crore bonus issue of January 2025 was charged to reserves of about ₹8.6 crore, which left reserves at −₹1.4 crore at March 2025 (DRHP p.236). Director remuneration went from ₹0.32 crore in FY24 to ₹0.13 crore in FY25 and ₹0.65 crore in FY26; the executive directors waived their pay from April to September 2025 (DRHP p.255, DRHP p.199). Subsidies of ₹10.2 crore were received from the Madhya Pradesh government over three years (DRHP p.35).

07The balance sheet

At March 31, 2026 total assets were ₹206.8 crore: inventories ₹93.0 crore, property, plant and equipment ₹42.6 crore, trade receivables ₹34.1 crore, capital work in progress ₹10.5 crore, other current assets ₹9.8 crore, long-term loans and advances ₹7.2 crore and cash ₹0.76 crore (DRHP p.58). Against them: short-term borrowings ₹92.9 crore, long-term borrowings ₹27.3 crore, trade payables ₹49.3 crore and net worth ₹25.8 crore (DRHP p.58).

Borrowings by type (DRHP p.236, DRHP p.237, DRHP p.36):

• HDFC Bank cash credit: ₹72.3 crore drawn of a ₹74.0 crore limit at 9.32%, repayable on demand.
• HDFC Bank term loans: ₹21.6 crore, including current maturities.
• Promoters: ₹26.4 crore, interest free, from Amit Gupta and Sumit Gupta, partly repayable on demand (DRHP p.241).

The bank loans are secured on stock, receivables, plant and the Mandideep plot, and on residential property in Jhansi and Bhopal, and carry personal guarantees of Amit Gupta, Sumit Gupta and Lakhan Lal Gupta (DRHP p.241). Infomerics rates the long-term facilities IVR BBB/Stable (DRHP p.43). Capital commitments were ₹6.5 crore and EPCG export obligations ₹34.5 crore, on ₹8.6 crore of duty saved (DRHP p.63).

Source: DRHP p.58, DRHP p.91, DRHP p.299. The capitalisation statement leaves the post-issue column blank (DRHP p.299). ₹10.7 crore is about 8.9% of March 2026 borrowings (our arithmetic, DRHP p.91, DRHP p.58). With the subsidiary added, pro forma borrowings were ₹169.2 crore (our arithmetic, DRHP p.279).

08What the money is for

Blueocean Ecotech IPO objects: what the money is for

Source: DRHP p.91. The four named objects add to ₹115.3 crore (our arithmetic, DRHP p.91). 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.55).

New plant, ₹75.8 crore: on 5.179 hectares at Pipariya Lorka, bought in February 2025 for ₹6.7 crore, the company plans washing lines for rigid HDPE and PP and for LDPE film and two EREMA pelletising plants, to make recycled HDPE, PP, LDPE and LLDPE pellets and packaging products for non-food uses (DRHP p.93, DRHP p.169).

Plant and machinery is ₹62.6 crore, mostly quoted in euros by LINDNER Washtech and EREMA, and buildings and utilities ₹13.2 crore (DRHP p.93, DRHP p.96, DRHP p.97). ₹66.8 crore is scheduled for FY27 and ₹9.0 crore for FY28, with commercial production planned for July 2027 (DRHP p.92, DRHP p.98). The company expects capacity to rise by about 19,008 tonnes (DRHP p.93).

Consent to establish was applied for on September 18, 2026 and is awaited (DRHP p.321). The company says it has limited or no experience of this product line (DRHP p.26).

Solar, ₹18.9 crore: a 3,700 kWp plant for the company and a 2,100 kWp plant for the subsidiary at a Pickrenew solar park, plus ₹2.0 crore of land (DRHP p.98, DRHP p.99).

Debt repayment, ₹10.7 crore: two HDFC Bank term loans of the company, with ₹4.9 crore and ₹12.7 crore outstanding at August 31, 2026 (DRHP p.101). Subsidiary, ₹10.0 crore: towards an HDFC Bank term loan of Badri Ecofibres with ₹30.8 crore outstanding; whether the money goes in as equity or debt is not decided (DRHP p.101).

The objects have not been appraised by any bank or financial institution (DRHP p.103). A monitoring agency is to be appointed (DRHP p.104). A pre-IPO placement of up to 7,80,000 shares may be made before the red herring prospectus, and would reduce the fresh issue (DRHP p.90).

Into the business the fresh issue of up to 64,41,000 shares, at a price not yet set (DRHP p.55). To selling shareholders nothing: there is no offer for sale (DRHP p.1).

09Who is selling

Blueocean Ecotech IPO offer for sale: who is selling

Nobody. The whole issue is a fresh issue of up to 64,41,000 shares of ₹10, and the document marks the offer for sale not applicable (DRHP p.1, AP p.1).

10Promoters

The promoters are Sumit Gupta, Amit Gupta, Deepika Gupta and Nainsi Gupta (DRHP p.212). The document states that Amit Gupta and Sumit Gupta are brothers, that Deepika Gupta is the spouse of Sumit Gupta and that Nainsi Gupta is the spouse of Amit Gupta (DRHP p.198). Amit Gupta holds 74,99,994 shares and Sumit Gupta 74,99,991, 49.99% each; Deepika Gupta and Nainsi Gupta hold 3 shares each (DRHP p.86).

• Amit Gupta, 37, Chairman and Managing Director, a chemical engineering graduate and M.Tech of IIT Delhi with about 13 years of experience, a director since February 28, 2020 (DRHP p.195, DRHP p.196).
• Sumit Gupta, 41, Whole Time Director since incorporation, educated to secondary level, with about 13 years in purchase, sales and business development (DRHP p.195, DRHP p.197).
• Deepika Gupta, 40, Executive Director since October 15, 2024, with about 3 years in finance and administration (DRHP p.195, DRHP p.197).
• Nainsi Gupta, 34, Non-Executive Director since December 12, 2024 (DRHP p.196).

Pay: in FY26 Amit Gupta and Sumit Gupta were each paid ₹0.28 crore, Deepika Gupta ₹0.09 crore and Nainsi Gupta ₹0.06 crore; the executive directors waived pay from April to September 2025 (DRHP p.199). Across the four promoters, pay and sitting fees went from about ₹1.9 crore in FY24, when Deepika Gupta and Nainsi Gupta were paid as relatives, to about ₹0.71 crore in FY26 (our arithmetic, DRHP p.65).

Loans and guarantees: the promoters had lent the company ₹26.4 crore interest free at March 31, 2026 (DRHP p.37). Amit Gupta, Sumit Gupta and Lakhan Lal Gupta guarantee the HDFC Bank facilities (DRHP p.241). No promoter shares are pledged (DRHP p.83).

Other businesses: the promoter group companies include Badri Eco Industries, Badri Infra Developers, Blueocean Ecopet, Blueocean Rpet, A.N. Ecoproducts, and Shri Badri Infratech and Lucknow Edible Oils, both being struck off (DRHP p.216). Blueocean Ecopet and Blueocean Rpet are the group companies (DRHP p.322); the company gave HDFC Bank guarantees of ₹51.9 crore for Blueocean Ecopet and ₹80.8 crore for Blueocean Rpet (DRHP p.63), in July 2026 (DRHP p.298).

Amit Gupta was a director of five companies struck off the register, one of them compulsorily, and Sumit Gupta of four struck off voluntarily; a sixth is being struck off (DRHP p.198). Amit Gupta was disqualified as a director in 2019 in relation to Anirudh Infrahome Private Limited; a court set the disqualification aside on January 23, 2020 (DRHP p.35).

The subsidiary deal: on September 23, 2026 the company bought 29,99,996 shares of Badri Ecofibres Private Limited from Sumit Gupta and Amit Gupta for ₹13.5 crore, at ₹45 a share as valued by a registered valuer at March 31, 2026 (DRHP p.193). Badri Ecofibres had net worth of ₹14.1 crore, borrowings of ₹48.9 crore and an FY26 loss after tax of ₹3.6 crore (DRHP p.192).

Cases: two criminal complaints under the Factories Act against Sumit Gupta as occupier of the factory, one over a forklift accident in January 2023 and one over a fatal accident at a screw conveyor in September 2023, both pending (DRHP p.301, DRHP p.302).

Promoter economics: Sumit Gupta and Deepika Gupta subscribed 5,000 shares each at ₹10 on incorporation; after transfers within the family and to Badri Ecofibres, Sumit Gupta and Amit Gupta each took 24,95,000 rights shares at ₹10 on February 29, 2024, and each received about 50,00,000 bonus shares on January 18, 2025 (DRHP p.84, DRHP p.85). The average cost of the promoters' shares is ₹3.33 (DRHP p.85). The rights issue brought in ₹5.0 crore in cash (DRHP p.110).

11Who already owns it

Blueocean Ecotech promoter holding before and after the IPO

Source: DRHP p.86, DRHP p.82. There are 1,50,00,000 shares of ₹10 before the issue and seven shareholders (DRHP p.56, DRHP p.88). If all 64,41,000 new shares are issued the total becomes 2,14,41,000 shares, a post-issue capital of ₹21.4 crore (DRHP p.327), and the promoters' 99.99% becomes about 70.0%, so 99.99% → 70.0% (our arithmetic, DRHP p.86). The document leaves the after-issue percentages blank (DRHP p.86).

No fund, company or other investor outside the promoter group holds shares. The one public shareholder holds 3 shares; the bonus list shows Nitin Agrawal, who was chief financial officer until September 16, 2026, receiving bonus shares (DRHP p.82, DRHP p.81, DRHP p.210). 44,00,000 bonus shares of Amit Gupta and Sumit Gupta, 20.52% of the post-issue capital, are to be locked in for three years as the minimum promoters' contribution (DRHP p.86).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹200.4 crore in FY24 to ₹425.0 crore in FY26 and profit after tax from ₹2.9 crore to ₹12.1 crore (DRHP p.60).
• Receivables: receivable days went from 31 in FY24 to 29 in FY26 (DRHP p.27).
• Promoter pay: from about ₹1.9 crore in FY24 to about ₹0.71 crore in FY26 across the four promoters (our arithmetic, DRHP p.65).
• Model change: from FY25 the subsidiary made fibre on job work for the company instead of selling on its own (DRHP p.292).
• Rights issue: 49,90,000 shares at ₹10 to Sumit Gupta and Amit Gupta on February 29, 2024 (DRHP p.80).
• Bonus issue: 2:1, allotted January 18, 2025, 1,00,00,000 shares (DRHP p.80).
• Last allotment: the bonus of January 2025; the last priced allotment was the rights issue at ₹10 a share in February 2024 (DRHP p.80). No other shares were issued in the two years before filing (DRHP p.81).
• Pre-IPO placement: none yet; up to 7,80,000 shares may be placed before the red herring prospectus, price not set (DRHP p.79).
• Conversion and name: a public company from November 28, 2024 and renamed Blueocean Ecotech Limited on November 19, 2025 (DRHP p.188).
• Auditor: no change in the last three years; S.L. Chhajed & Co. LLP was re-appointed on September 30, 2025 (DRHP p.73).
• Land: 5.179 hectares bought for ₹6.7 crore in February 2025 and 2.112 hectares for ₹2.2 crore in April 2025; plot E-41 bought from Badri Ecofibres for ₹0.35 crore on September 8, 2026 (DRHP p.169).
• Subsidiary bought from the promoters: Badri Ecofibres, for ₹13.5 crore, on September 23, 2026 (DRHP p.193).
• Guarantees: ₹132.7 crore given in July 2026 for Blueocean Ecopet and Blueocean Rpet, the second incorporated on May 16, 2026 (DRHP p.26, DRHP p.298, DRHP p.322).
• Board and officers: three independent directors joined and left between December 2024 and July 2026; Nitin Agrawal resigned as chief financial officer and Prem Narayan Verma took over on September 16, 2026 (DRHP p.64, DRHP p.210, DRHP p.297).
• New object: polyolefin chips added to the main objects on August 28, 2026 (DRHP p.191).
• Dividend: none declared in FY24 to FY26 (DRHP p.217).

13Capacity and expansion

Source: DRHP p.29, DRHP p.93. Utilisation was 93% in FY24 on the own plant alone, 93% in FY25 and 88% in FY26 on both, as certified by a chartered engineer (DRHP p.29). The capacities are combined because the subsidiary works only for the company (DRHP p.29). Production by plant is not given.

The new campus is for recycled HDPE, PP and LDPE pellets and packaging, with commissioning planned for July 2027 (DRHP p.93, DRHP p.98). The company also says final trials are under way at Unit 2 to turn caps, labels and wrappers into recycled PP and HDPE granules (DRHP p.161). The D&B profile describes the Mandideep plant as 190 tonnes a day (DRHP p.149), which does not match the 28,800 tonnes a year stated elsewhere. Capacity is not turned into revenue here: the document gives no price or customer base for the new products.

14Market size and industry structure

Blueocean Ecotech industry: market size and growth

As claimed: the chapter is taken from the "Industry Report on Recycled Polyester Staple Fibre (rPSF)" prepared by Dun & Bradstreet for September 2026, commissioned and paid for by the company (DRHP p.116). It does not give a market size in rupees for recycled polyester staple fibre.

It sizes the wider polyester staple fibre (PSF) market in tonnes: installed capacity of 1,340.71 thousand tonnes in both FY24 and FY25, production of 1,025.3 thousand tonnes in FY24, about 76.5% utilisation, and 1,063.21 thousand tonnes in FY25 (DRHP p.130, DRHP p.131). India has PET resin capacity of about 2.2 million tonnes, PET bottle demand of about 1.7 million tonnes a year, and about 75% of PET produced is recycled (DRHP p.128).

The part that is addressable: the company sells rPSF, made from recycled PET. The report says about 0.80 million tonnes of recycled PET a year goes into staple fibre in India (DRHP p.129). Domestic recycled PET production was 1,615 thousand tonnes a year in FY25 and is estimated at 1,731 thousand tonnes in FY26 (DRHP p.132, DRHP p.133).

What the company is today: the two plants produced 53,570 tonnes in FY26 (DRHP p.29), about 6.7% of the 0.80 million tonnes of recycled PET the report says goes into staple fibre; the report does not say for which year, so this is a rough comparison (our arithmetic, DRHP p.129, DRHP p.29). FY26 revenue was ₹425.0 crore (DRHP p.60).

Size over time: PSF production grew at 4.0% a year from FY21 to FY25, while PSF consumption moved from 860.5 thousand tonnes in FY20 to 872.9 thousand tonnes in FY24 (DRHP p.130). Recycled PET production grew from about 1,150 thousand tonnes in FY21 to 1,615 thousand tonnes in FY25, about 8.9% a year (DRHP p.132).

The D&B report projects recycled PET production reaching 3,132 thousand tonnes by FY31, 12.59% a year, and consumption 2,990 thousand tonnes (DRHP p.145, DRHP p.146). Exports of recycled PET products and rPSF fell from ₹3,286.9 crore in FY22 to ₹1,844.7 crore in FY24, rose to ₹2,439.8 crore in FY25 and fell to ₹1,761.9 crore in FY26 (DRHP p.139).

Segments: the report splits demand by end use: textile and apparel yarns, home furnishing fibre fill, nonwoven and technical textiles, and automotive interiors (DRHP p.130, DRHP p.135, DRHP p.136). The company sells mostly to the textile trade, 95.86% of FY26 revenue (DRHP p.152). Under BIS standard IS 17263:2022, PSF is graded from coarse fibre above 2.0 denier to super microfibre; finer grades go to apparel and coarser ones to fibre fill and nonwovens (DRHP p.147). The technical textiles market grew from about USD 19 billion in FY21 to over USD 26 billion in FY25, per the Ministry of Textiles (DRHP p.136).

What drives demand: India's downstream textile economy grew from ₹4.89 lakh crore to ₹14.95 lakh crore between 2010 and 2024, with man-made and blended fibres at 52.2% of the product basket (DRHP p.135). The National Fibre Mission targets non-cellulosic man-made fibre production of 115.35 lakh tonnes by 2030-31 (DRHP p.139). Rules requiring 30% recycled content in PET bottles by 2025, rising to 60% by 2029, are cited as a demand floor (DRHP p.146). Sustainable textile demand was estimated at ₹37,000 crore in 2024 (DRHP p.137). Brand sourcing targets are cited, for example Arvind's aim of 100% recycled polyester (DRHP p.137).

Structure: the report describes three tiers: large integrated recyclers, mid-scale pure recyclers and textile groups with captive recycling lines (DRHP p.146). It names J.B. Ecotex, described as the largest single-unit rPSF producer with 60,550 tonnes of authorised capacity, and mid-scale producers Saheb Fibre, Alliance Fibres and Safar Polyfibre in Gujarat, and Birla Textile Mills Unit-II (DRHP p.131, DRHP p.132). Usha Yarns and Vardhman are named for their recycling capacity (DRHP p.142). The listed peer profiled is Ganesha Ecosphere Limited (DRHP p.148). The company says it also competes with virgin PSF makers (DRHP p.165).

Inputs and trade: bottles come through a fragmented chain of waste pickers, scrap dealers and aggregators (DRHP p.134). Prices fell after PET flake imports were allowed: waste bottles from ₹18 to ₹23 a kg to ₹12 to ₹16 a kg, and flakes from ₹71 to ₹82 to ₹60 to ₹70 a kg (DRHP p.134).

Import of waste PET bottles is prohibited; washed flakes may be imported only by units that have used domestic waste to at least 70% of consented capacity, capped at 15% of capacity used (DRHP p.135, DRHP p.138). China supplied 48.4% of related imports, and Nepal took 23.1% of exports (DRHP p.141, DRHP p.140). Cost of materials was 73.21% of the company's FY26 revenue (DRHP p.32).

Rules: the Plastic Waste Management Rules, 2016 and the EPR framework of 2022, under which about 2,986 recyclers were registered at March 2026; the Solid Waste Management Rules, 2026; the Hazardous and Other Wastes Rules; and BIS labelling standards (DRHP p.137, DRHP p.138). The company is a registered Category I plastic waste processor and holds GRS and OEKO-TEX certificates (DRHP p.155, DRHP p.153).

What the chapter says can go wrong: shortages of usable feedstock despite high collection; rPSF competing with virgin PSF whose cost moves with crude oil, PTA and MEG prices; a crowded field of certified recyclers that limits any EPR premium; contamination and polymer degradation; competition for recycled PET from bottle and packaging makers; and hazardous waste transport rates of five to six times normal freight (DRHP p.144, DRHP p.145).

15Competitive position

Blueocean Ecotech competitors

Source: DRHP p.109, converted from ₹ lakh. Ganesha Ecosphere's revenue is about 3.5 times the company's (our arithmetic, DRHP p.109). The report names J.B. Ecotex, with authorised capacity of 60,550 tonnes, close to the company's combined 61,200 tonnes, but gives no financials for it (DRHP p.131, DRHP p.29).

What the company puts forward: bottle-to-fibre processing at its own site, a range of deniers and colours, customers in many states, GRS, OEKO-TEX and ISO certificates, and promoters with about 13 years in the trade (DRHP p.106, DRHP p.157, DRHP p.158). Against that: debt of 4.66 times equity, dependence on its subsidiary for more than half its capacity, no long-term customer or supplier contracts, and a new product line it has not made before (DRHP p.108, DRHP p.29, DRHP p.26).

16Peers the company named

Peers named in the offer document: Ganesha Ecosphere Limited (DRHP p.107).

Ganesha Ecosphere makes rPSF, recycled yarn and bottle-grade recycled PET from plants in three states and is about 3.5 times the company's revenue (DRHP p.148, DRHP p.109). The document gives its P/E as 69.10 on September 18, 2026, which it also uses as the industry average (DRHP p.107). The company's FY26 EPS is ₹8.06 and its weighted average EPS ₹10.37 (DRHP p.106). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Blueocean Ecotech IPO risks

Financial: debt and guarantees: borrowings were ₹120.2 crore against net worth of ₹25.8 crore at March 2026, and guarantees for two promoter group companies came to ₹132.7 crore (DRHP p.58, DRHP p.26) → if those companies default, the company may have to pay their banks → the guarantees are about 5.1 times the company's net worth (our arithmetic, DRHP p.26, DRHP p.58).

Financial: recallable loans: ₹72.3 crore of HDFC Bank cash credit and ₹26.4 crore of promoter loans are repayable on demand or recallable (DRHP p.36, DRHP p.37) → a recall would need new money at short notice → only ₹10.7 crore of the issue repays company debt (DRHP p.91).

Business: the subsidiary: more than half the combined capacity, 32,400 of 61,200 tonnes, sits at Badri Ecofibres, which lost money in each of the three years (DRHP p.29, DRHP p.192) → a stoppage there cuts output → its FY26 loss after tax was ₹3.6 crore and its borrowings ₹48.9 crore (DRHP p.192).

Business: a new product line: ₹75.8 crore goes into polyolefin recycling, in which the company says it has limited or no experience (DRHP p.91, DRHP p.26) → costs, demand and pricing are untested → commercial production is planned for July 2027 and consent to establish is pending (DRHP p.98, DRHP p.321).

Suppliers: bottle prices: materials were 73.21% of FY26 revenue, bought on purchase orders without long-term contracts (DRHP p.32) → a rise in bottle prices that cannot be passed on narrows a thin margin → FY26 PAT margin was 2.85% (DRHP p.108).

Legal: factory accidents: two Factories Act prosecutions of Sumit Gupta and a criminal trial over a worker's death are pending (DRHP p.301, DRHP p.302, DRHP p.29) → penalties or stoppages may follow → a fire in FY22 led to a ₹5.4 crore claim of which ₹4.4 crore was paid (DRHP p.29).

Regulation: EPCG and approvals: export obligations of ₹34.5 crore were open at March 2026, and the EPR registration and some EPCG authorisations are still in the old company name (DRHP p.63, DRHP p.320) → duty of ₹8.6 crore saved under the scheme may have to be repaid with interest if exports fall short (DRHP p.63).

Issue-specific: compliance record: the company lists errors in filings with the Registrar of Companies and late GST, ESI, PF and TDS filings, including nine late GST returns in FY24 (DRHP p.31, DRHP p.37) → penalties may follow → no action had been started at the date of the DRHP (DRHP p.31).

18Litigation and regulatory matters

Cases against Blueocean Ecotech and its promoters

Criminal: none against the company (DRHP p.301).

A criminal trial under Sections 287 and 304A of the Indian Penal Code over the conveyor death is pending at Goharganj; the company says neither it nor its directors are named in that trial (DRHP p.29). Regulatory: no actions against the company, promoters, directors or group companies (DRHP p.301, DRHP p.302, DRHP p.306). Tax: the contingent liabilities include an income tax demand of ₹0.47 crore for AY 2023-24 under appeal and a GST assessment of ₹0.14 crore (DRHP p.63), while the litigation chapter lists the company's direct tax matters as nil (DRHP p.301). Creditors: three material creditors were owed ₹9.2 crore at March 31, 2026 (DRHP p.306, DRHP p.307).

19Related-party transactions

Source: DRHP p.65, DRHP p.66, DRHP p.67, converted from ₹ lakh; the promoter totals are our arithmetic (DRHP p.65). Badri Ecofibres was repaid ₹35.8 crore of loans in FY24 (DRHP p.67). Sumit Gupta was repaid ₹9.7 crore and Amit Gupta ₹4.2 crore in FY26; at March 31, 2026 the company owed Sumit Gupta ₹13.9 crore and Amit Gupta ₹12.5 crore (DRHP p.67). Nainsi Gupta lent and was repaid ₹3.7 crore within FY26 (DRHP p.67). Advances for capital goods of ₹2.8 crore in FY26, ₹11.8 crore in FY25 and ₹7.1 crore in FY24 appear in the column for relatives of key managers, with no counterparty named (DRHP p.66).

What appeared or changed in the two years before filing: the job work arrangement with Badri Ecofibres from FY25 and a 15-year exclusive agreement with it (DRHP p.292, DRHP p.34); the purchase of plot E-41 from it on September 8, 2026 and of the company itself from the promoters on September 23, 2026 (DRHP p.169, DRHP p.193); and guarantees for Blueocean Ecopet and Blueocean Rpet in July 2026 (DRHP p.298). The company says its related-party transactions were at arm's length (DRHP p.68).

20What the offer document does not say

Customers are not named. Tonnes sold and prices for FY24 are not given, so the FY25 jump cannot be split into volume and price. Margins by fibre grade are not given. Production by plant is not given. The industry report sizes no market in rupees. The issue size in rupees, the price band, general corporate purposes and issue expenses are blank (DRHP p.91, DRHP p.102). The after-issue shareholding is blank (DRHP p.86). Financial details of the two group companies whose loans the company guarantees are left to the company website (DRHP p.323). How the new polyolefin products will be sold, and to whom, is not described.

Some inconsistencies are recorded as document matters, not business ones: the guarantee amounts for Blueocean Ecopet and Blueocean Rpet are swapped between pages (DRHP p.63, DRHP p.298) and the guarantees are dated July 2026 but appear in contingent liabilities at March 31, 2026 (DRHP p.298, DRHP p.63); capital expenditure is ₹7.2 crore for FY26 in the risk factors and ₹3.4 crore for FY26 in the business chapter, with the years reversed (DRHP p.27, DRHP p.163);

RoCE for FY26 is 15.64% in one table and 15.70% in another (DRHP p.108, DRHP p.153); the FY26 customer count is 298 and 288 (DRHP p.159, DRHP p.160); the group companies are said not to share the company's line of business, though Blueocean Rpet's objects include polyester staple fibre (DRHP p.323, DRHP p.322); the fourth EREMA machine is described both as a pelletising plant and as a fibre production system (DRHP p.97);

the subsidiary's losses are given before tax in the risk factors and after tax elsewhere (DRHP p.26, DRHP p.192); and the pro forma statement nets the ₹13.5 crore purchase price against inventory while its note says it was paid from a loan and cash (DRHP p.279, DRHP p.283).

21Five questions for management

1. What tonnes of fibre were sold, at what average price, in FY24, and how much of the FY25 revenue rise came from moving the subsidiary to job work rather than from new customers?
2. What are the loans of Blueocean Ecopet and Blueocean Rpet that the company has guaranteed, what are those companies building, and what do they pay the company for the guarantees?
3. What did Badri Ecofibres charge per kg of fibre under job work in FY25 and FY26, and how were those rates set?
4. Who will the recycled HDPE, PP and LDPE pellets be sold to, at what expected utilisation, and what share of the ₹62.6 crore machinery cost depends on the EPCG duty benefit?
5. What is the timetable for repaying the ₹26.4 crore of interest-free promoter loans, and will any of the issue money be used for it?

1Sources and cited facts

This study was read from 1 document the company filed. The 194 figures it cites are listed under the document each came from, with the page and the sentence as printed.