Clastek Engineering Limited IPO

01At a glance

What the company does: designs and makes injection moulds, moulded plastic components and fixtures, mainly to customer designs, at one leased plant in the SIPCOT Industrial Park, Sriperumbudur, Tamil Nadu (DRHP p.153, DRHP p.154).

Who pays it: automobile makers and electronics manufacturing services (EMS) companies, which were 55.84% and 43.72% of FY26 revenue (DRHP p.26). The document does not name customers. The top ten were 98.45% of FY26 revenue (DRHP p.25).

Why it is raising money: up to ₹1,997.88 lakh (₹20.0 crore) to expand the existing plant, up to ₹1,092.91 lakh (₹10.9 crore) for working capital and up to ₹713.43 lakh (₹7.1 crore) to repay SIDBI term loans (DRHP p.91).

How fast it has grown: revenue from ₹4,356.66 lakh in FY24 to ₹6,907.12 lakh in FY26, and profit after tax from ₹685.87 lakh to ₹1,038.80 lakh (DRHP p.155); that is 25.9% and 23.1% a year (our arithmetic, DRHP p.155). FY25 profit fell 14.15% before FY26 rose 76.48% (DRHP p.295, DRHP p.297).

The one thing to understand: revenue sits with very few buyers. Ten customers were 98.45% of FY26 revenue and two were 64.08% (DRHP p.25), and the company has a long-term contract with only one customer (DRHP p.32).

02The business, in plain words

A customer, usually a car, truck, tractor or electronics maker, sends a part design. Clastek designs the steel mould that will shape that plastic part, machines it on CNC and EDM machines, assembles and tests it, and ships it; it also runs moulds to make the finished plastic parts, and builds fixtures that hold parts during electronics assembly and testing (DRHP p.164 to DRHP p.169).

Car or electronics maker → orders a mould, parts or a fixture → Clastek designs, machines, tests and ships it from Sriperumbudur → paid per order.

Products shown in the document include truck console moulds, sun visor moulds, blood-testing machine housings and fixtures for salt spray and cleaning machines (DRHP p.158 to DRHP p.163). The fixtures line for the EMS industry began in 2024 (DRHP p.153). The plant is certified to ISO 9001:2015 and IATF 16949 (DRHP p.154). The company had 175 permanent employees at May 2026 (DRHP p.154) and runs three shifts, seven days a week (DRHP p.173).

Earnings equation: the document measures capacity in machine hours, not units. Revenue ≈ machine hours used × revenue earned per hour. In FY26 the mould line used 1,58,760 hours of 2,44,800 available (DRHP p.36).

03Where the money comes from

Source: DRHP p.156.

By industry, automobile was 68.76% of FY24 revenue and 55.84% of FY26; EMS rose from 30.44% to 43.72% (DRHP p.26). By geography, Tamil Nadu was 83.68% of FY26 revenue and exports 15.95%, of which the USA was 9.20% of revenue (DRHP p.26, DRHP p.27).

Source: DRHP p.25. The document does not give the largest single customer's share. The company had 28 customers in FY26, 7 of them new (DRHP p.27). Revenue depends on a few customers: ten buyers account for all but about 1.5% of it.

04The growth record

Source: DRHP p.155, DRHP p.156, DRHP p.32. The document computes both margins on total income, not on revenue (DRHP p.156); the MD&A table prints PAT margin on revenue instead, 15.74%, 12.43% and 15.04% (DRHP p.285).

• Revenue CAGR FY24 to FY26: 25.9% (our arithmetic, DRHP p.155). Revenue went from ₹43.6 crore to ₹69.1 crore (DRHP p.155).
• EBITDA CAGR FY24 to FY26: 24.9% (our arithmetic, DRHP p.155).
• PAT CAGR FY24 to FY26: 23.1% (our arithmetic, DRHP p.155). PAT went from ₹6.9 crore to ₹10.4 crore (DRHP p.155).
• Margin movement: EBITDA margin 24.8% → 24.3% (DRHP p.155), down 53 basis points (our arithmetic, DRHP p.155).

Other figures behind these numbers: ROCE was 38.1% in FY26 and total borrowings ₹8.5 crore (DRHP p.155). Operating cash flow was ₹13.7 crore in FY26 (DRHP p.32). Other income was 5.2% of profit before tax in FY26 (our arithmetic, DRHP p.292), ₹72.46 lakh against ₹1,405.10 lakh, most of it a foreign exchange gain of ₹59.17 lakh (DRHP p.292, DRHP p.295). Contingent liabilities were ₹0.3 crore at March 2026 (DRHP p.58).

The operating cycle was 32 days in FY26 (DRHP p.111). Receivable days went 75 → 48 from FY24 to FY26 (DRHP p.109). Revenue from the top two customers was 64.1% of FY26 revenue, and from the top ten 98.5% (DRHP p.25). Related-party transactions were ₹2.5 crore in FY26 (DRHP p.61). The restated year end is 31 March in all three years; no restatement of a year is disclosed in the pages read.

05What the growth is made of

Revenue rose from ₹4,356.66 lakh in FY24 to ₹6,907.12 lakh in FY26 (DRHP p.156), an increase of ₹2,550.46 lakh (our arithmetic, DRHP p.156). By product, fixtures added ₹1,532.75 lakh and moulded components ₹907.13 lakh, services ₹195.74 lakh, while injection moulds fell ₹81.49 lakh (our arithmetic, DRHP p.156). By industry, EMS revenue rose from ₹1,326.54 lakh to ₹3,019.78 lakh (DRHP p.26).

On volume, the document gives machine hours only. Mould hours used rose from 58,012 in FY24 to 1,58,760 in FY26, component hours from 44,496 to 54,216 and fixture hours from 0 to 27,922.50 (DRHP p.36). The MD&A attributes FY26 growth to new projects from existing and new customers and to added capacity, and names new products such as trim cap holders and inner rack assemblies (DRHP p.294). The offer document does not disclose prices or units sold, so the increase cannot be separated into volume and price.

06Earnings quality

Over FY24 to FY26 operating cash flow of ₹2,453.21 lakh was above profit of ₹2,313.28 lakh (our arithmetic, DRHP p.32, DRHP p.155). FY26 profit is after a non-cash charge of ₹71.63 lakh for sweat equity shares and ₹40.35 lakh of provision for doubtful debts (DRHP p.299, DRHP p.293).

The item that needs explaining is the audit qualification. The previous auditor's FY24 report says 5,80,160 shares allotted in FY2011 were issued by capitalising the revaluation reserve, contrary to Section 63 of the Companies Act; the board's FY25 report says they were issued for consideration other than cash, for leasehold rights in industrial land contributed by two promoters (DRHP p.43).

The capital history lists 5,80,160 shares allotted on January 20, 2010 for consideration other than cash (DRHP p.75), and the land allotments as acquisition of land (DRHP p.76). Risk factor 12 is headed as negative cash flows in the past three years, while the table under it shows operating cash inflows in all three and outflows only from investing, and from financing in FY26 (DRHP p.32).

07The balance sheet

Source: DRHP p.280, DRHP p.281, DRHP p.58.

The capitalisation statement puts all ₹853.08 lakh as long-term borrowings including current maturities, with nil short-term (DRHP p.280), while the MD&A splits the same year into ₹590.55 lakh long-term and ₹262.53 lakh short-term (DRHP p.297). A cash credit limit of ₹490 lakh was undrawn at March 2026 (DRHP p.281). The loans named for repayment from the issue, seven SIDBI term loans, had ₹713.43 lakh outstanding at August 31, 2026 (DRHP p.106, DRHP p.107).

A further SIDBI bridge loan sanctioned July 14, 2026 funded ₹243.88 lakh of expansion spending that the issue is to recoup (DRHP p.94). Cash balances are in the scanned statements and not in the text pages read, so net debt cannot be stated. The post-issue balance sheet cannot be shown until the issue price, and so the issue size, is known.

Contingent liabilities are two GST orders of ₹9.63 lakh and ₹19.90 lakh for FY2021-22, under appeal (DRHP p.58).

08What the money is for

Source: DRHP p.91; shares are our arithmetic on the three amounts stated, ₹3,804.22 lakh in all (DRHP p.91).

Expansion: total cost ₹2,257.34 lakh, of which ₹1,997.88 lakh from the issue, on 2.20 unused acres of the 3-acre leased site (DRHP p.93). Plant and machinery is ₹1,467.44 lakh of the cost, building ₹494.09 lakh, a 300 kWp solar plant ₹133.65 lakh (DRHP p.94, DRHP p.96). ₹503.34 lakh had been spent by September 21, 2026 (DRHP p.94). Production is to begin in December 2026, with machinery purchases running to March 2028 (DRHP p.103).

Working capital: ₹400.00 lakh in FY27 and ₹692.91 lakh in FY28, against a requirement the company puts at ₹1,699.78 lakh and ₹2,415.14 lakh (DRHP p.109). These requirement figures are the company's projections.

Debt: ₹713.43 lakh of SIDBI term loans taken between 2023 and 2025 for machinery, a rooftop solar system and a factory building (DRHP p.106, DRHP p.107).

General corporate purposes cannot exceed 15% of the amount raised or ₹10 crore (DRHP p.91). No monitoring agency is appointed, as the document states the issue is below ₹5,000 lakh (DRHP p.46).

Into the business: all of it. The issue is a fresh issue of up to 55,00,000 shares; the amount is not stated until the price is set (DRHP p.1). To selling shareholders: nothing. There is no offer for sale (DRHP p.1).

09Who is selling

Nobody. The issue is a fresh issue of up to 55,00,000 shares of ₹10 each and the offer for sale is nil (DRHP p.1). Fresh issue: 55,00,000 shares, amount not stated (DRHP p.1). Offer for sale: none (DRHP p.1). Promoters and the promoter group will not bid in the issue (DRHP p.89).

10Promoters

The promoters are Ravi Damodaran, Veerareddy Bharat Kumar Reddy, Gyanchander Reddy Gongireddy, Sujatha Yarnagula and Y Madhusudan (DRHP p.1). Together they hold 86.98% before the issue (DRHP p.214).

• Ravi Damodaran, 62, Chairman and Managing Director, 20.58%, with over 30 years in the mould and tooling industry (DRHP p.214, DRHP p.154). A founding subscriber in 2008 (DRHP p.76).
• Veerareddy Bharat Kumar Reddy, 71, non-executive director, 26.41% (DRHP p.214).
• Gyanchander Reddy Gongireddy, 70, non-executive director, 17.61% (DRHP p.215). Disqualified as a director by the RoC Chennai from January 11, 2016 to October 31, 2021, after CREA8 Technologies Private Limited was struck off; not disqualified now (DRHP p.28).
• Sujatha Yarnagula, 40, non-executive director, 11.19% (DRHP p.215).
• Y Madhusudan, 42, 11.19%; the document states this promoter has no qualification or experience in the company's line of business (DRHP p.215, DRHP p.33).

The document lists Sujatha Yarnagula and Y Madhusudan as siblings, and Y Sudarsana Rao as their father (DRHP p.219). Y Sudarsana Rao was an original promoter and is no longer associated with the company (DRHP p.217).

Pay: promoter remuneration and sitting fees were ₹84.00 lakh in FY24 and ₹49.00 lakh in FY26, that is ₹0.8 crore → ₹0.5 crore (our arithmetic, DRHP p.59). Ravi Damodaran's pay was ₹60.00 lakh in FY24 and ₹42.00 lakh in FY26 (DRHP p.59); the whole-time director, Annathurai Madhesan, who is not a promoter, is paid ₹50.50 lakh a year (DRHP p.202).

Other businesses: promoters hold interests in CMD Precision Products Private Limited, Ability Engineering Private Limited and Classic mould & dies, which the document says are in a similar line of business; non-compete agreements are in place (DRHP p.28, DRHP p.216). CMD Precision Products supplied goods worth ₹58.47 lakh in FY26 (DRHP p.60).

Pledges, guarantees, cases: no promoter shares are pledged (DRHP p.89). Three promoters have given personal guarantees for SIDBI loans (DRHP p.217). Cases against promoters: none (DRHP p.304).

Promoter economics: Ravi Damodaran, Veerareddy Bharat Kumar Reddy and Gyanchander Reddy Gongireddy acquired their shares at ₹10 each between 2008 and 2015, some for land rather than cash (DRHP p.82 to DRHP p.84). Sujatha Yarnagula and Y Madhusudan each received 5,44,933 shares by gift from Y Sudarsana Rao on December 23, 2025 (DRHP p.85). The company bought back 1,25,523 shares at ₹239 each on September 30, 2024, including from three promoters (DRHP p.75, DRHP p.76). A 2:1 bonus issue on June 3, 2026 tripled every holding (DRHP p.75).

11Who already owns it

Source: DRHP p.214, DRHP p.86, DRHP p.79; the after column is our arithmetic on 1,46,09,901 shares before and 2,01,09,901 after (DRHP p.74). Promoter holding before → after: 87.0% → 63.2% (our arithmetic, DRHP p.74, DRHP p.214).

The company has ten shareholders (DRHP p.85). The promoter group holders are Sunitha Ravi, 1.79%, and Synergetic Engineering Solutions Private Limited, 0.74% (DRHP p.85, DRHP p.86). The public holders are three individuals: Lalit Dua, 6.39%; Sameer Arvind Thakker, 2.13%; and the whole-time director Annathurai Madhesan, 1.96% (DRHP p.81).

Lalit Dua and Samir Arvind Thakker came in through secondary purchases at ₹72 a share on April 21, 2025, ₹24 after the bonus (DRHP p.122); the capital structure records a transfer to Lalit Dua on March 15, 2025 at ₹72.29 (DRHP p.85). Annathurai Madhesan received 95,500 sweat equity shares at ₹75 on March 12, 2026 (DRHP p.77). No fund or company outside the promoter group holds shares.

12What changed just before the IPO

• Buyback: 1,25,523 shares bought back at ₹239 each on September 30, 2024 (DRHP p.75). The FY25 cash flow shows ₹371.68 lakh paid for it (DRHP p.300).
• Secondary sales: shares sold to Lalit Dua and Samir Arvind Thakker at ₹72 in April 2025 (DRHP p.122).
• Public company: converted from private to public company, fresh certificate dated September 1, 2025 (DRHP p.2). Converted to a public company: September 2025 (DRHP p.2).
• Auditor change: Manohar Chowdhry & Associates resigned with effect from September 26, 2025 over audit fees; Padmanabhan Ramani and Ramanujam is now the auditor (DRHP p.29, DRHP p.5). Auditor change: Manohar Chowdhry & Associates to Padmanabhan Ramani and Ramanujam, 2025 (DRHP p.29).
• Gifts inside the promoter family: Y Sudarsana Rao gifted 5,44,933 shares each to Sujatha Yarnagula and Y Madhusudan on December 23, 2025 (DRHP p.85).
• Sweat equity: 95,500 shares to Annathurai Madhesan at ₹75 on March 12, 2026 (DRHP p.77). Last allotment before the IPO for a price: ₹75 a share, March 2026 (DRHP p.77).
• Bonus: 2:1 bonus issue, 97,39,934 shares, June 3, 2026 (DRHP p.75). Bonus issue: 2:1, June 2026 (DRHP p.75).
• Revenue and profit: revenue ₹43.6 crore → ₹69.1 crore and PAT ₹6.9 crore → ₹10.4 crore from FY24 to FY26 (DRHP p.155). Receivable days fell 75 → 48 (DRHP p.109).
• Management pay: a CFO and company secretary appointed in FY26 and a general manager promoted to whole-time director (DRHP p.295). Promoter remuneration ₹0.8 crore → ₹0.5 crore (our arithmetic, DRHP p.59).
• Tax: GST show cause notices dated July 8 and July 24, 2026 propose demands of ₹18.07 lakh and ₹248.72 lakh; the company's four indirect tax cases total ₹2.9 crore (DRHP p.303).
• Compounding: applications filed September 22, 2026 over lapses in a 2015 allotment and in the 2024 buyback (DRHP p.30).
• Related parties: related-party transactions of ₹2.5 crore in FY26, 3.68% of revenue, against 9.11% in FY24 (DRHP p.61).

13Capacity and expansion

Source: DRHP p.36, DRHP p.37, DRHP p.103, DRHP p.104. Capacity figures are certified by a chartered engineer (DRHP p.37).

The expansion adds most of its hours to fixtures, where hours available would rise about four times (our arithmetic, DRHP p.104). Fixture hours available fell from 28,800 in FY24 to 14,400 in FY25 before rising to 32,850 (DRHP p.36). The company also outsources some machining in peak periods (DRHP p.173). Capex on plant and machinery was ₹1,118.56 lakh over FY24 to FY26 (DRHP p.104).

14Market size and industry structure

As claimed: the industry chapter cites public websites, not a report commissioned by the company. It quotes an IMARC figure of USD 20.1 billion for the India tooling market in 2025 (DRHP p.148) and an FMI figure of USD 344.6 million for the India injection moulders market in 2025 (DRHP p.142). Both come with growth projections that are the publishers', not tested here. The part that is addressable: the document does not define the part of either market the company sells into. What the company is today: FY26 revenue of ₹69.07 crore (DRHP p.155), against the injection moulders figure of about ₹3,262 crore at the document's March 2026 rate of ₹94.65 to the dollar, roughly 2% (our arithmetic, DRHP p.142, DRHP p.21). Read from the filing: the company's revenue includes fixtures and moulds, so the comparison is loose.

On structure, the chapter says automotive took 52.5% of the global tooling market in 2025 and dies and moulds 40.8% (DRHP p.147, DRHP p.148). The Indian auto component industry turned over ₹6,73,000 crore in FY25 (DRHP p.149). The document does not give the company's market share or the number of competitors.

15Competitive position

Source: DRHP p.155, DRHP p.120, DRHP p.121. Peer revenue is revenue from operations, converted to crore.

What the document says customers choose it for: a plant in an industrial park with some customers within 20 km; ISO 9001:2015 and IATF 16949 certification; 142 engineers and technicians; CNC and EDM machining in-house (DRHP p.170, DRHP p.171). Against that, it names competitors with greater resources and gives no market share (DRHP p.176). The trademark for its name is still an application (DRHP p.37).

16Peers the company named

Peers named in the offer document: Sunita Tools Ltd., Shaily Engineering Plastics Ltd., PPAP Automotive Ltd. (DRHP p.117).

• Sunita Tools: the closest in size, total income ₹4,794.95 lakh against the company's ₹6,979.58 lakh; the document prints its P/E as 100.64 (DRHP p.117).
• Shaily Engineering Plastics: about 14 times the company's total income, at ₹99,844.94 lakh, with a P/E of 88.97 (DRHP p.117; our arithmetic on size).
• PPAP Automotive: about 8 times the company's total income, at ₹56,860.39 lakh, with a P/E of 8.53 and profit that swung from a loss in FY24 (DRHP p.117, DRHP p.120).

The peers' P/E ranges from 8.53 to 100.64, average 66.05, on prices of September 4, 2026 (DRHP p.116). The company's FY26 EPS is ₹7.15 after the bonus (DRHP p.115). No P/E for the company is possible until a price band is set.

17Risks, in plain words

• Customers: ten customers were 98.45% of FY26 revenue and two were 64.08% (DRHP p.25); only one has a long-term contract (DRHP p.32). Losing one of the two would remove close to a third of revenue on average, and the other 18 customers were 1.55% together (our arithmetic, DRHP p.25).
• Industries: automobile and EMS were 99.56% of FY26 revenue (DRHP p.26), so a slowdown in either reaches almost all sales.
• Geography and tariffs: Tamil Nadu was 83.68% of FY26 revenue and the USA 9.20%; the document cites US tariffs on Indian auto components from August 2025 (DRHP p.26, DRHP p.27).
• Suppliers: ten suppliers were 65.15% of FY26 raw material purchases, and imports, all from China in FY26, 11.53% (DRHP p.32, DRHP p.42, DRHP p.43).
• People: employee cost was 15.57% of FY26 revenue and attrition 28.30% in FY26, up from 16.39% in FY24 (DRHP p.32, DRHP p.177).
• Promoters: one promoter has no experience in the business, one was a disqualified director from 2016 to 2021, and group companies work in a similar line (DRHP p.33, DRHP p.28).
• Compliance: historic gaps in share allotment and transfer records from 2008 to 2010, charge filings and the 2024 buyback; two compounding applications pending (DRHP p.29, DRHP p.30).
• Issue-specific: no monitoring agency for the proceeds (DRHP p.46); the promoters keep control after the issue, at 63.2% on our arithmetic (DRHP p.74, DRHP p.214).

18Litigation and regulatory matters

The four tax matters are two GST demand orders of December 2025 (₹9.09 lakh and ₹18.79 lakh outstanding) and two GST show cause notices of July 2026 for FY2022-23 and FY2023-24 (₹18.07 lakh and ₹248.72 lakh proposed), to which the company has replied (DRHP p.303). Group companies: none with material pending litigation except as disclosed (DRHP p.220). Outstanding dues to trade creditors were ₹565.75 lakh at March 2026, ₹159.19 lakh of it to micro and small enterprises (DRHP p.305).

19Related-party transactions

Source: DRHP p.59, DRHP p.60, DRHP p.61; rows other than the total are our arithmetic from the line items. Professional charges of ₹60.00 lakh paid to Synergetic Engineering Solutions Private Limited appear in FY24 only, and loans from it were repaid that year (DRHP p.60). Items that appeared in FY26: pay to the new whole-time director, CFO and company secretary, the sweat equity, and small reimbursements (DRHP p.59, DRHP p.60). Directors give personal guarantees for SIDBI loans (DRHP p.61).

20What the offer document does not say

• Names of customers, or the largest single customer's share.
• Prices and units sold, so growth cannot be split into volume and price.
• Cash and bank balances, and the full restated statements, in readable text: the F-pages are scanned images (DRHP p.228 to DRHP p.277).
• How fixtures earned ₹1,325.79 lakh in FY24 when fixture capacity used that year is shown as 0 hours (DRHP p.156, DRHP p.36).
• Why the FY25 buyback cost ₹371.68 lakh in the cash flow when 1,25,523 shares at ₹239 come to about ₹300 lakh (DRHP p.300, DRHP p.75; our arithmetic).
• The market share of the company in any market.
• The price band, lot size, issue size in rupees, market maker and issue dates, which is normal at DRHP stage (DRHP p.2).

21Five questions for management

1. How much of FY26 revenue came from the single largest customer, and what are the terms of the one long-term contract?
2. What revenue did fixtures earn per machine hour in FY26, and how were FY24 fixture sales made with no fixture capacity used?
3. What was paid in total for the September 2024 buyback, and what explains the gap between ₹371.68 lakh and 1,25,523 shares at ₹239?
4. What utilisation do the new fixture lines need, from December 2026, to cover their own depreciation and interest?
5. What is the company's view of the ₹248.72 lakh GST notice for FY2023-24, against FY26 profit of ₹1,038.80 lakh?

1Sources and cited facts

This study was read from 1 document the company filed. The 142 figures it cites are listed under the document each came from, with the page and the sentence as printed.