CTM Technologies Limited IPO

01At a glance

What the company does: designs and builds stranding machines, armouring machines, drum twisters, rewinding lines, taping lines and related machinery that cable and wire makers use to twist, armour, tape and rewind cable, from three rented units in Faridabad and Palwal, Haryana and one owned unit at Satna, Madhya Pradesh (DRHP p.129, DRHP p.137).

Who pays it: cable and wire manufacturers; the company names Universal Cables Limited, Havells India Limited, Polycab India Limited, KEI Industries Limited and R.R. Kabel Limited among its customers (DRHP p.129). The largest customer brought 49.53% of FY26 revenue, the top five 87.30% and the top ten 99.17% (DRHP p.28).

Why it is raising money: ₹31.9 crore of the fresh issue for a new building and machinery at the Satna unit and ₹15.0 crore for working capital; the general corporate purposes amount is blank (DRHP p.96). The promoter Arwind Singh Baghel is selling 8,80,000 shares (DRHP p.81).

How fast it has grown: revenue from ₹18.7 crore in FY24 to ₹99.0 crore in FY26, about 130.1% a year, and profit after tax from ₹1.2 crore to ₹15.5 crore, about 252.9% a year (our arithmetic, DRHP p.63).

The one thing to understand: the company itself is about nineteen months old. It was incorporated on March 1, 2025 and took over Arwind Singh Baghel's proprietorship four weeks later; the three years of figures are mostly the proprietorship's, recast for the offer, and the proprietorship's accounts were tax audited, not audited under the Companies Act (DRHP p.161, DRHP p.187).

02The business, in plain words

What CTM Technologies does

CTM Technologies designs, develops and manufactures rotating machinery for the cable and wire industry (DRHP p.129). The main lines are:

• Stranding machines: twist many wires into one conductor, for power cables and overhead conductors; lead time from order to dispatch is 8 to 18 months (DRHP p.134).
• Armouring machines: wrap steel or aluminium wire or tape around a cable to protect it; lead time 8 to 18 months (DRHP p.135).
• Drum twisters: assemble insulated cores into multi-core cable by rotating the cable drum; lead time 10 to 14 months (DRHP p.135).
• Rewinding lines, taping lines and belt caterpillars: move, wrap and pull cable between production stages; lead times of 5 to 10 months (DRHP p.136).

A cable maker sends its specification → the design team prepares drawings in SolidWorks and decides which parts to source from outside and which to make → the plant fabricates, machines, assembles and inspects → the machine is dispatched, installed and given a final run at the customer's plant → the company is paid in stages against design approval, manufacturing, dispatch and commissioning (DRHP p.138, DRHP p.139, DRHP p.31).

The business began in 2000 as M/s Cable Tech Machines, a proprietorship of the promoter Arwind Singh Baghel that first made components and later complete machines (DRHP p.129). CTM Technologies Private Limited was incorporated on March 1, 2025, took over the proprietorship as a going concern under a Business Succession Agreement dated March 29, 2025, and became a public company with a fresh certificate dated May 15, 2026 (DRHP p.161). It holds ISO 9001:2015 certification (DRHP p.132). It had 83 permanent employees and 62 casual workers at August 31, 2026 (DRHP p.141). It has exported to the U.A.E. and Tanzania (DRHP p.129).

Two of the four units are rented from the promoters, one from an outside party, and the Satna unit was bought from the promoter Prabhanshu Deo Singh Baghel in April 2025 (DRHP p.142). The registered office is shared with the group company Alstom Engineering India Private Limited, with no sub-lease or rent-sharing agreement (DRHP p.41).

Earnings equation: Revenue = machines delivered × price per machine. The document gives revenue by machine type but no number of machines delivered and no average price, and it says installed capacity cannot be measured because every machine is different (DRHP p.134, DRHP p.139). So the equation cannot be filled in from the filing.

03Where the money comes from

By product (₹ crore):

Source: DRHP p.134, converted from ₹ lakh. Stranding, armouring and drum twisters were 92.23% of FY26 revenue (DRHP p.30). No drum twister revenue was booked in FY25 (DRHP p.134). No product margin is given.

By place: Madhya Pradesh brought 52.15% of FY26 revenue, Gujarat 17.72%, Dadra and Nagar Haveli and Daman and Diu 11.16% and Rajasthan 9.28% (DRHP p.131). Exports were 5.54% of FY26 revenue, all to the U.A.E., and 7.26% of FY25, all to Tanzania (DRHP p.132). The states change sharply from year to year: Karnataka, Telangana and Tamil Nadu together were 41.43% of FY24 revenue and almost nothing in FY26 (DRHP p.131, DRHP p.132).

CTM Technologies customers: how concentrated the revenue is

Source: DRHP p.28, AP p.3. Revenue does depend on a few customers: the largest customer alone brought ₹49.0 crore of FY26 revenue, and ten customers ₹98.2 crore of ₹99.0 crore (DRHP p.28). The table does not name the customers. Five repeat customers brought 78.83% of FY26 revenue (DRHP p.131). Customers listed on Indian stock exchanges brought 88.41% of FY26 revenue and 54.36% of FY24 (DRHP p.131). There are no long-term or exclusive contracts; business is order by order (DRHP p.28).

On the supply side, the largest supplier was 7.93% of FY26 purchases and the top ten 40.61% (DRHP p.45). Imports were 1.52% of FY26 purchases (DRHP p.140).

Order book: ₹82.7 crore of unexecuted orders at September 15, 2026: stranding machines 54.04%, drum twisters 19.70%, a rigid screening line 13.62%, taping lines 12.60% (DRHP p.131). Some orders carry delivery periods of more than two years (DRHP p.101).

04The growth record

CTM Technologies financials: revenue, profit and margins

Source: DRHP p.62, DRHP p.63, DRHP p.64, DRHP p.130, AP p.5, converted from ₹ lakh. Revenue went from ₹18.7 crore in FY24 to ₹99.0 crore in FY26 and profit after tax from ₹1.2 crore to ₹15.5 crore (DRHP p.63). The company's EBITDA leaves out other income (DRHP p.130).

Our arithmetic over FY24 to FY26: revenue grew about 130.1% a year and profit after tax about 252.9% a year (our arithmetic, DRHP p.63); the company itself puts profit growth at about 252.96% (DRHP p.29). EBITDA grew about 178.0% a year (our arithmetic, DRHP p.130). EBITDA margin moved from 16.18% to 23.61%, up 743 basis points, so from 16.2% to 23.6% rounded (DRHP p.130). Revenue rose 211.06% in FY25 and 70.25% in FY26 (DRHP p.34).

The year ends on March 31 throughout. The FY24 and FY25 figures are those of the proprietorship, which pays tax as an individual; the restatement charges tax to it, so FY25 profit fell from ₹5.1 crore as audited to ₹3.8 crore restated, mostly a tax provision of ₹2.0 crore (DRHP p.203). Net worth of ₹0.69 crore at March 2025 reflects the proprietor's capital being moved out on the takeover: ₹3.4 crore was to be paid in shares and ₹1.2 crore became a loan from Arwind Singh Baghel (DRHP p.206).

What sits around the record:

• Cash: operating cash flow was ₹4.7 crore in FY26 after −₹2.9 crore in FY25 and ₹9.2 crore in FY24 (DRHP p.64). In FY26 inventories absorbed ₹13.2 crore and other current liabilities, mostly customer advances, fell by ₹14.0 crore, while supplier credit added ₹13.0 crore (DRHP p.64, DRHP p.219).
• Other income was ₹0.45 crore in FY26, mostly interest, about 2.2% of profit before tax of ₹20.8 crore (our arithmetic, DRHP p.63). In FY24 it was about 14.6% of profit before tax (our arithmetic, DRHP p.63).
• Debt: borrowings were ₹33.9 crore at March 31, 2026 (DRHP p.254), debt to equity 1.38 times, about 1.4× (DRHP p.236), and net of ₹4.3 crore of cash and bank balances about 1.3× FY26 EBITDA (our arithmetic, DRHP p.62, DRHP p.130). Return on capital employed was 38.19%, so 38.2% rounded (DRHP p.130). Finance cost was ₹1.9 crore in FY26 (DRHP p.63).
• Loans from directors: ₹8.2 crore at March 31, 2026, payable on demand, at 9% (DRHP p.216, DRHP p.217).
• Customers and suppliers: the largest customer was 49.53% of FY26 revenue, so 49.5% rounded, the top five 87.30%, so 87.3%, and the top ten 99.17%, so 99.2% (DRHP p.28); the top ten suppliers were 40.61% of FY26 purchases, so 40.6% (DRHP p.45); Madhya Pradesh was 52.15% of FY26 revenue, so 52.2% (DRHP p.131).
• Working capital days: receivables 106 days in FY24, 53 in FY25 and 41 in FY26; inventory 452, 236 and 259 days; payables 112, 42 and 77 days (DRHP p.31).
• Order book: ₹82.7 crore at September 15, 2026 (DRHP p.130).
• Contingent liabilities: ₹3.5 crore at March 31, 2026, almost all bank guarantees, plus ₹0.20 crore of capital commitments for the Satna factory (DRHP p.66).
• Use of the issue: ₹31.9 crore of the fresh issue is for the Satna expansion and ₹15.0 crore for working capital (DRHP p.96).
• Cases: no criminal, regulatory, tax or material civil cases against the company, the promoters or the directors (DRHP p.255, DRHP p.256).

05What the growth is made of

Revenue rose ₹80.3 crore from FY24 to FY26 (our arithmetic, DRHP p.63). By product, the change was (our arithmetic, DRHP p.134):

• Stranding machines: up ₹44.3 crore, from ₹3.0 crore to ₹47.3 crore.
• Drum twisters: up ₹16.0 crore, from ₹5.4 crore to ₹21.5 crore.
• Armouring machines: up ₹14.0 crore, from ₹8.5 crore to ₹22.6 crore.
• Everything else: up ₹6.0 crore.

By customer: the largest customer's revenue went from ₹6.0 crore in FY24 to ₹49.0 crore in FY26, an increase of ₹43.1 crore, more than half of the total increase (our arithmetic, DRHP p.28).

By place: Madhya Pradesh went from ₹9.7 crore to ₹51.6 crore, Gujarat from ₹0.79 crore to ₹17.5 crore, and Dadra and Nagar Haveli and Daman and Diu from nil to ₹11.1 crore (DRHP p.131).

Volume: the document gives no count of machines made or delivered in any year, and says capacity is not measured in standard units (DRHP p.139). Work in progress rose from ₹13.2 crore at March 2024 to ₹43.1 crore at March 2026 (DRHP p.101).

The offer document does not disclose machines delivered or prices, so the increase cannot be separated into volume and price. That is the finding. The company puts FY26 growth down to "the execution of orders and growth in business volumes" (DRHP p.249).

06Earnings quality

The item that needs explaining is inventory. At March 2026 it was ₹44.0 crore, of which ₹43.1 crore was work in progress and ₹0.93 crore raw material (DRHP p.223). Work in progress is valued by percentage of completion, based on costs incurred against estimated total cost (DRHP p.197). Finished goods were nil in all three years (DRHP p.101). The company explains the high inventory days by orders with delivery periods of more than two years (DRHP p.101).

Customer advances funded much of this: ₹20.6 crore at March 2024, ₹28.4 crore at March 2025 and ₹13.1 crore at March 2026, with deferred revenue of ₹2.3 crore at March 2026 (DRHP p.219). Of ₹11.9 crore of receivables at March 2026, ₹3.8 crore was more than six months old and ₹2.2 crore more than a year (DRHP p.223, DRHP p.224).

Gross margin, revenue less materials and the change in stock, was about 46.7% in FY24, 39.7% in FY25 and 46.7% in FY26 (our arithmetic, DRHP p.63). Job work charges were ₹8.4 crore in FY26 (DRHP p.229). The restatement added tax, gratuity and depreciation adjustments to the proprietorship years (DRHP p.203).

07The balance sheet

At March 31, 2026 total assets were ₹98.4 crore: inventories ₹44.0 crore, property, plant and equipment and intangibles ₹29.7 crore, trade receivables ₹11.9 crore, short-term loans and advances ₹6.0 crore, cash and bank balances ₹4.3 crore and other non-current assets ₹2.5 crore (DRHP p.62). Against them: short-term borrowings ₹26.7 crore, long-term borrowings ₹7.3 crore, trade payables ₹20.5 crore, other current liabilities ₹16.2 crore, provisions and deferred tax ₹3.3 crore and net worth ₹24.6 crore (DRHP p.62).

Borrowings of ₹33.9 crore were: a Canara Bank overdraft of ₹16.0 crore at 8.75% against a ₹20.0 crore limit; machinery term loans from Axis Bank and SIDBI and a vehicle loan, ₹9.4 crore together; ₹8.2 crore from Arwind Singh Baghel, Prabhanshu Deo Singh Baghel and Srishabh Deo Singh; and ₹0.29 crore from Siemens Financial Services (DRHP p.210, DRHP p.211, DRHP p.212, DRHP p.215, DRHP p.216). The overdraft is secured on stock and receivables, with collateral of Plot 744, IMT Faridabad, which is registered in the name of Arwind Singh Baghel, and guaranteed by all three promoters (DRHP p.212, DRHP p.213).

Source: DRHP p.62, DRHP p.96, DRHP p.254. The capitalisation statement leaves the post-issue column blank (DRHP p.254). No object of the issue is debt repayment (DRHP p.96). The company's working capital plan still funds ₹29.6 crore and ₹44.1 crore of the gap at March 2027 and March 2028 from short-term borrowings (DRHP p.100).

08What the money is for

CTM Technologies IPO objects: what the money is for

Source: DRHP p.96, DRHP p.102. 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.95).

Satna expansion, ₹31.9 crore: the company owns about 10,350 sq. m. of land at Satna, uses about 4,047 sq. m. now and plans to build on another 4,047 sq. m. (DRHP p.98). The cost is ₹7.4 crore for a pre-engineered steel structure and civil works and ₹24.5 crore for plant and machinery (DRHP p.98, DRHP p.99).

Of the machinery, four machining and boring centres quoted by Suzhou Neway Import and Export Co., Ltd come to about ₹19.5 crore, a laser cutting machine from HSG Laser Co., Ltd ₹2.4 crore and an EOT crane from Electromech Material Handling Systems (India) Pvt. Ltd. ₹2.6 crore (our arithmetic, DRHP p.99). No orders have been placed (DRHP p.99). The costs are certified by R.K. Aggarwal, Chartered Engineer (DRHP p.99).

₹7.7 crore is scheduled for FY27 and ₹24.2 crore for FY28 (DRHP p.97). Civil works are to run from January 2027 to August 2027 and commercial operation is scheduled for December 2027 (DRHP p.100). The document does not say what extra output the new unit will give.

Working capital, ₹15.0 crore: ₹10.0 crore in FY27 and ₹5.0 crore in FY28 (DRHP p.97). The company's estimate puts the working capital gap at ₹39.6 crore at March 2027 and ₹49.1 crore at March 2028, on 42 and 46 receivable days and 267 and 249 inventory days (DRHP p.100, DRHP p.101). The working capital figures are certified by the statutory auditor H K G & Associates (DRHP p.100).

The objects have not been appraised by any bank or financial institution (DRHP p.104). The company says the offer size exceeds ₹50 crore and a monitoring agency is to be appointed, though the name is blank (DRHP p.73).

Into the business the fresh issue of 35,60,000 shares, at a price not yet set (DRHP p.95). To selling shareholders the proceeds of 8,80,000 shares sold by Arwind Singh Baghel, at a price not yet set (DRHP p.95).

09Who is selling

CTM Technologies IPO offer for sale: who is selling

Source: DRHP p.60, DRHP p.81. The 8,80,000 shares are 6.63% of the pre-offer capital (DRHP p.81) and about 19.8% of the 44,40,000-share offer (our arithmetic, DRHP p.59). The weighted average cost of acquisition of Arwind Singh Baghel's shares is ₹2.94 a share (DRHP p.1, DRHP p.90). Offer expenses other than listing fees are to be shared between the company and the seller in proportion to the shares each offers (DRHP p.95). The promoters and promoter group will not take part in the offer other than through the shares offered for sale (DRHP p.94). Beside the sale, the offer has a fresh issue of 35,60,000 shares, amount not set (DRHP p.95).

10Promoters

The promoters are Arwind Singh Baghel, Prabhanshu Deo Singh Baghel and Srishabh Deo Singh (DRHP p.180). The document states that Arwind Singh Baghel is the father of Prabhanshu Deo Singh Baghel and Srishabh Deo Singh and the spouse of the non-executive director Bandna Singh (DRHP p.167).

Arwind Singh Baghel, 56, is Chairman and Managing Director, holds a diploma in mechanical engineering and has run the business since 2000 as proprietor of Cable Tech Machines (DRHP p.165, DRHP p.166). Prabhanshu Deo Singh Baghel, 28, is Whole Time Director, a mechanical engineering graduate with 7 years in the business, and a director of Alstom Engineering India Private Limited (DRHP p.165, DRHP p.166). Srishabh Deo Singh, 23, was a whole-time director from May 23, 2026, resigned on September 3, 2026 and was appointed Chief Financial Officer the same day (DRHP p.178, DRHP p.181).

Pay: in FY26 Arwind Singh Baghel received ₹0.60 crore, Prabhanshu Deo Singh Baghel ₹0.08 crore and Srishabh Deo Singh ₹0.04 crore as directors' remuneration (DRHP p.168). The approved ceilings are up to ₹15,00,000 a month for Arwind Singh Baghel and up to ₹10,04,166.67 a month for Prabhanshu Deo Singh Baghel (DRHP p.168). Pay to the three promoters, as salary, commission and directors' remuneration, went from ₹0.64 crore in FY24 to ₹0.72 crore in FY26 (our arithmetic, DRHP p.67, DRHP p.68).

Property: Plot 744, IMT Faridabad, the registered office and Unit I, is rented from Arwind Singh Baghel at ₹7,15,000 a month; part of Unit II is rented from Arwind Singh Baghel at ₹1,98,000 a month and part from Bandna Singh at ₹3,52,000 a month, all under 11-month agreements dated May 26, 2026 with a 10% annual increase (DRHP p.142).

At the starting rents that is about ₹1.5 crore a year to related parties (our arithmetic, DRHP p.142). The land, building and some machinery of the proprietorship were transferred to Arwind Singh Baghel on April 1, 2024 as a capital withdrawal, before the takeover (DRHP p.222). The Satna land was bought from Prabhanshu Deo Singh Baghel by a transfer deed dated April 25, 2025 for ₹0.37 crore (DRHP p.142, DRHP p.68).

Loans and guarantees: the three promoters had lent the company ₹8.2 crore at March 31, 2026, payable on demand at 9% (DRHP p.216). All three guarantee the Canara Bank overdraft and some SIDBI loans (DRHP p.244). No promoter shares are pledged (DRHP p.87).

Other businesses: the promoter group includes Cable Tech Machines India Private Limited, Alstom Engineering India Private Limited, Cable And Wire Machinery Manufacturer Association Of India, Kcat Auto Xpert Private Limited, Desfo Technologies Private Limited and Fabtech Metalics Private Limited (DRHP p.184). Alstom Engineering makes industrial and cable drums and reels and is the only group company (DRHP p.264).

Cases: no criminal, regulatory or tax cases and no material civil cases against the promoters or directors (DRHP p.256).

Promoter economics: Arwind Singh Baghel subscribed 9,800 shares at ₹10 on March 1, 2025, received 34,00,000 shares at ₹10 on June 11, 2025 as part payment for the proprietorship, gifted 99,900 shares to Bandna Singh, Prabhanshu Deo Singh Baghel and Srishabh Deo Singh in August and September 2026, received 350 back from Bandna Singh, and received 82,74,750 bonus shares on September 7, 2026 (DRHP p.88).

Prabhanshu Deo Singh Baghel and Srishabh Deo Singh each subscribed 100 shares at ₹10, received 49,900 shares as a gift from Arwind Singh Baghel on September 2, 2026 and 1,25,000 bonus shares (DRHP p.88, DRHP p.89). Average costs are ₹2.94, ₹0.01 and ₹0.01 a share (DRHP p.90). The whole business was taken over for ₹4.6 crore: ₹3.4 crore in shares and ₹1.2 crore credited to Arwind Singh Baghel's loan account (DRHP p.206).

11Who already owns it

CTM Technologies promoter holding before and after the IPO

Source: DRHP p.87, DRHP p.90, DRHP p.270; after-issue columns are our arithmetic. There are 1,32,68,479 shares before the issue and nine shareholders (DRHP p.60, DRHP p.93). If all 35,60,000 new shares are issued the total becomes 1,68,28,479 shares, paid-up capital of ₹16.8 crore (DRHP p.270), and the promoters' 89.95% becomes about 65.7% after the 8,80,000-share sale, so 90.0% → 65.7% (our arithmetic, DRHP p.90, DRHP p.270). The document leaves the after-issue percentages blank (DRHP p.90).

The outside holders came in through a private placement on July 14, 2025 of 3,80,994 shares at ₹131.89, ₹5.0 crore in all: M/s DS Holdings through its partner Divya Aggarwal 2,67,262, Prateek Lodha 56,866, Kavita Bansal 37,909 and Shefali Yadav 18,957 (DRHP p.83, DRHP p.109). After the 25:10 bonus the placement price is about ₹37.68 a share (our arithmetic, DRHP p.83). Moniya and Harish Chander Sharma hold 26,250 and 13,125 shares (DRHP p.90). Prateek Lodha had lent the business ₹0.51 crore at March 2024 (DRHP p.216). Before the issue M/s DS Holdings through its partner Divya Aggarwal holds 7.05% (DRHP p.87).

34,80,000 of Arwind Singh Baghel's bonus shares are to be locked in for three years as the minimum promoters' contribution; 37,87,500 more for two years and 37,87,500 for one year; all other pre-offer shares for one year (DRHP p.91, DRHP p.92).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹18.7 crore in FY24 to ₹99.0 crore in FY26 and profit after tax from ₹1.2 crore to ₹15.5 crore (DRHP p.63).
• Receivables: receivable days went from 106 in FY24 to 41 in FY26 (DRHP p.31).
• Promoter pay went from ₹0.64 crore in FY24 to ₹0.72 crore in FY26 (our arithmetic, DRHP p.67, DRHP p.68).
• Assets withdrawn: land, building and some machinery of the proprietorship moved to Arwind Singh Baghel on April 1, 2024 (DRHP p.222); the company now rents those premises from the promoters (DRHP p.142).
• Incorporation and takeover: the company was incorporated on March 1, 2025 and took over Cable Tech Machines under a Business Succession Agreement dated March 29, 2025 (DRHP p.161). The company says that agreement may not have been adequately stamped (DRHP p.40).
• Proprietorship taken over: March 2025 (DRHP p.161).
• Land bought from a promoter: the Satna land, from Prabhanshu Deo Singh Baghel, on April 25, 2025 (DRHP p.163, DRHP p.142).
• Pre-IPO placement: 3,80,994 shares at ₹131.89 a share on July 14, 2025 (DRHP p.83).
• Bonus issue: 25:10, 94,77,485 shares allotted on September 7, 2026 (DRHP p.83).
• Last allotment before the IPO: the bonus shares of September 2026; the last priced allotment was the July 2025 placement at ₹131.89 (DRHP p.83).
• Conversion: the private company became a public company with a fresh certificate dated May 15, 2026 (DRHP p.2).
• Auditor: no change in auditors in the last three years; H K G & Associates is statutory auditor and A D V & Associates examined the restated figures as peer review auditor (DRHP p.78, DRHP p.71).
• Board and officers: two independent directors and Bandna Singh joined the board on May 23, 2026; Deepika Singh was a director from April 1 to April 6, 2026; one company secretary served from July 23 to September 1, 2026 and Lipi was appointed on September 3, 2026 (DRHP p.170, DRHP p.178).
• Promoter loans: loans from directors went from nil at March 2024 to ₹1.2 crore at March 2025 and ₹8.2 crore at March 2026 (DRHP p.217).
• Gifts of shares: Arwind Singh Baghel gifted 49,900 shares each to Prabhanshu Deo Singh Baghel and Srishabh Deo Singh on September 2, 2026 (DRHP p.91).
• Dividend: none declared since incorporation (DRHP p.185).

13Capacity and expansion

Source: DRHP p.98, DRHP p.100, DRHP p.139. The company states that installed and production capacity are "not applicable to our business" because machines are made to order (DRHP p.139). In FY26 it added ₹12.2 crore of plant and machinery and a ₹6.5 crore factory building at Satna, with machinery term loans from Axis Bank (DRHP p.220, DRHP p.212). The document gives square metres and machine quotations but no output figure, so the step from capacity to revenue cannot be made here.

14Market size and industry structure

CTM Technologies industry: market size and growth

As claimed: the company did not commission an industry report. The chapter says its information was taken from websites and publicly available documents that neither the company nor anyone connected with the offer has verified (DRHP p.118). Its sources are the IMF's World Economic Outlook update of July 2026 and pages of the India Brand Equity Foundation (IBEF) website (DRHP p.119, DRHP p.123, DRHP p.126).

At the broadest level it gives India's real GDP for FY26 at ₹3,22,58,000 crore, up 7.6% (DRHP p.120). For manufacturing it says the sector is about 17% of GDP (DRHP p.123). For capital goods it says the sector is 1.9% of GDP and that production rose from ₹2,29,533 crore in CY15 to ₹4,29,001 crore in CY24 (DRHP p.125).

The part that is addressable: the company sells machinery to cable and wire makers (DRHP p.129). The chapter gives no size for cable and wire machinery, or for the cable industry itself. The closest figures are for electrical equipment, which IBEF says could grow from US$52.98 billion in 2022 to US$125 billion by 2027, and for machine tools, put at US$2.5 billion by 2028 (DRHP p.125, DRHP p.126). These are wider markets, not the company's.

What the company is today: FY26 revenue of ₹99.0 crore (DRHP p.63). Because the chapter sizes none of the company's segment, no market share can be worked out from the filing.

Size over time: the chapter's time series are for the wider economy. Capital goods production nearly doubled from CY15 to CY24 on the IBEF figures (DRHP p.125). India's engineering goods exports were ₹10,82,729 crore in FY26 (DRHP p.126). IBEF projects the automated material handling market from ₹16,525.19 crore in 2026 to ₹29,692.32 crore by 2031, 12.43% a year, and the construction equipment market from ₹69,046 crore in 2025 to ₹1,02,827 crore by 2030 (DRHP p.126). The IMF text projects world growth of 3.0% in 2026 and India's growth at 6.4% (DRHP p.118, DRHP p.119). These are the sources' own projections.

Segments: the chapter treats capital goods as a whole and names electrical equipment as the largest sub-sector, followed by plant equipment and earth moving machinery (DRHP p.125). It describes machine tools as made mostly by small firms, with a few mid-sized makers turning over ₹300 to ₹500 crore a year (DRHP p.126). The company sits in machinery for one customer industry, cable and wire, inside capital goods.

What drives demand: the company links its demand to cable makers' capital spending, which follows power transmission and distribution, renewable energy, rural electrification and building wiring (DRHP p.29). The chapter's power section supports this: installed capacity of 542.36 GW as of May 2026, renewable capacity of 225.61 GW, and a target of 500 GW of non-fossil capacity by 2030 (DRHP p.127). It cites plans to spend Rs. 25,66,800 crore on power and transmission by 2030 and a possible incentive scheme for transmission equipment with 190,000 circuit km of lines planned by 2035 (DRHP p.128). The Central Electricity Authority projects power requirement at 817 GW by 2030 (DRHP p.128).

Structure: the chapter names no competitor. The business chapter says the segment is niche, made of large and small makers and distributors, and that the company has no direct competition from any listed company (DRHP p.139). The risk factors describe the market as fragmented, with many small unorganised fabricators, a few larger domestic makers and international suppliers, some with lower prices or shorter lead times (DRHP p.37). The company names no listed peer (DRHP p.107).

Inputs and trade: the main inputs are steel, castings and forgings, mechanical components and electrical and electronic components, which made up ₹60.5 crore of the ₹67.3 crore of materials consumed in FY26 (our arithmetic, DRHP p.227). Imports were 1.52% of FY26 purchases, mostly from Italy and China (DRHP p.140). Prices of materials can move between order and delivery on fixed-price contracts (DRHP p.36).

Rules: the business works under the Factories Act and state factory rules, pollution consent rules, the Legal Metrology Act, the BIS Act and the labour codes, and the National Capital Goods Policy, 2016 covers its sector (DRHP p.143, DRHP p.144, DRHP p.145, DRHP p.151). It holds factory licences for all four units and consents to operate for Units I and IV; Units II and III are in the white category and exempt (DRHP p.261, DRHP p.262). Fire NOCs for Units II, III and IV are pending (DRHP p.263).

What the chapter says can go wrong: the IMF text says risks to world growth are tilted to the downside, with renewed conflict in the Middle East, trade fragmentation and a correction in technology expectations (DRHP p.118). The company adds that its demand is not recurring, since a customer may not need another machine for years, and that any slowdown in cable makers' or power sector spending would cut orders (DRHP p.29). Sales are also bunched in January to March: 44.25% of FY26 revenue came in that quarter (DRHP p.34). The chapter does not discuss pricing, competition or imports in cable machinery.

15Competitive position

CTM Technologies competitors

Source: DRHP p.63, DRHP p.130, DRHP p.254. There are no listed companies in India in a similar business, so the document gives no peer comparison (DRHP p.107). It names no unlisted competitor either (DRHP p.139).

What the company puts forward: an order book of ₹82.7 crore, repeat orders from five customers, customers that are mostly listed companies, sales across several states, in-house design, and promoters with long experience (DRHP p.130, DRHP p.131, DRHP p.132). It competes on design, quality, price, delivery time, customisation and after-sales service (DRHP p.139). Against that: ten customers bring almost all revenue, three of four units are rented, annual attrition was 32.86% in FY26, and none of the directors except one independent director has sat on a listed company's board (DRHP p.28, DRHP p.38, DRHP p.41).

16Peers the company named

Peers named in the offer document: none (DRHP p.107).

The company states that no listed company in India is engaged in a business similar to its own, so it gives no peer comparison of ratios or KPIs (DRHP p.107, DRHP p.109). With no price band, no P/E for the company can be stated; its FY26 EPS is ₹12.43 on ₹10 shares (DRHP p.106).

17Risks, in plain words

CTM Technologies IPO risks

Customers: one customer: the largest customer brought 49.53% of FY26 revenue and the top ten 99.17% (DRHP p.28) → the company sells capital machinery, so a customer may not order again for years (DRHP p.29) → the largest customer's revenue rose ₹43.1 crore over two years, more than half of the company's growth (our arithmetic, DRHP p.28).

Financial: work in progress: inventory was 259 days of revenue at March 2026, almost all of it half-built machines valued on percentage of completion (DRHP p.31, DRHP p.197) → profit and stock depend on cost estimates for unfinished orders → work in progress was ₹43.1 crore against net worth of ₹24.6 crore (DRHP p.223, DRHP p.62).

Financial: loans on demand: ₹8.2 crore of the ₹33.9 crore of borrowings is from the promoters and repayable on demand (DRHP p.42, DRHP p.216) → those loans can be called at short notice, and the issue repays no debt (DRHP p.96) → about 24.3% of borrowings at March 2026 (our arithmetic, DRHP p.216, DRHP p.254).

Business: place and season: Madhya Pradesh brought 52.15% of FY26 revenue, and January to March brought 44.25% (DRHP p.31, DRHP p.34) → one region and one quarter carry much of the year → the state mix changed sharply between FY24 and FY26 (DRHP p.131).

Business: expansion not ordered: the ₹31.9 crore Satna expansion rests on quotations, with no machinery ordered and commercial operation scheduled for December 2027 (DRHP p.99, DRHP p.100) → delays or cost increases would be met from internal accruals (DRHP p.99) → the plan is about a third of FY26 revenue (our arithmetic, DRHP p.96, DRHP p.63).

Regulation: filings and approvals: the company filed several company law forms late, prepared one-month accounts for FY25 and began business before filing its commencement form, and has applied to compound these (DRHP p.39, DRHP p.40) → penalties may follow → 12 late GST payments of ₹1.5 crore in FY26 and Fire NOCs pending for three units (DRHP p.38, DRHP p.263).

Promoters: related dealings: the company rents two units from the promoters, bought land from one and borrows from all three (DRHP p.142, DRHP p.216) → terms are set between related parties → about ₹1.5 crore a year of rent at the starting rates (our arithmetic, DRHP p.142).

Issue-specific: short record as a company: the company was incorporated in March 2025 and the earlier figures are the proprietorship's, tax audited and recast for the offer (DRHP p.27, DRHP p.187) → the record before FY26 was not audited under the Companies Act → FY25 profit changed from ₹5.1 crore audited to ₹3.8 crore restated (DRHP p.203).

18Litigation and regulatory matters

Cases against CTM Technologies and its promoters

Material civil cases: none, on a threshold of ₹0.34 crore (DRHP p.255, DRHP p.256). Group company: no litigation with a material impact (DRHP p.257). Contingent: TDS matters of ₹0.01 crore and bank guarantees of ₹3.5 crore at March 2026 (DRHP p.66). Creditors: eight material creditors were owed ₹8.7 crore at March 31, 2026 (DRHP p.258). Stamp duty: the Business Succession Agreement may be found under-stamped; the amount is not ascertainable (DRHP p.40). Statutory dues: delays in PF, ESIC, TDS and GST payments in all three years, including 12 GST instances of ₹1.5 crore in FY26 (DRHP p.38).

19Related-party transactions

Source: DRHP p.67, DRHP p.68, converted from ₹ lakh. Arwind Singh Baghel was also paid ₹0.60 crore as remuneration in FY26 and owed ₹7.1 crore at March 2026 (DRHP p.67). Prabhanshu Deo Singh Baghel's ₹1.4 crore is ₹1.0 crore of loans and ₹0.37 crore for the Satna land (DRHP p.68). Deepika Singh, a relative of a director, lent ₹0.15 crore in FY26 and was repaid ₹0.91 crore (DRHP p.68). Alstom Engineering bought goods worth ₹0.54 crore in FY25 and ₹0.48 crore in FY24 and owed ₹0.34 crore of loans at March 2026 (DRHP p.68).

What appeared or changed in the two years before filing: rent to Arwind Singh Baghel began in FY26 after the premises left the business in April 2024; loans from the promoters went from nil to ₹8.2 crore; interest at 9% began on those loans from April 2025; the Satna land was bought from Prabhanshu Deo Singh Baghel; and sales to Alstom Engineering stopped in FY26 (DRHP p.222, DRHP p.216, DRHP p.68). The company says its related-party sales and purchases are at arm's length (DRHP p.68).

20What the offer document does not say

The customers in the concentration table are not named, and nothing says which of the five named cable makers is the largest. The number of machines delivered and their prices are not given, so growth cannot be split into volume and price. Product margins are not given. Installed capacity and utilisation are not measured (DRHP p.139). What extra output the Satna expansion will give is not stated.

The industry chapter sizes neither the cable machinery market nor the cable industry. The issue size in rupees, the price band, general corporate purposes, offer expenses and the market maker are blank (DRHP p.96, DRHP p.102). The after-issue shareholding is blank (DRHP p.90). Financial details of the group company are left to the company website (DRHP p.264).

The headcount of the design and quality teams is left out of the risk factors, which say only that they "comprised permanent full-time employees" (DRHP p.35, DRHP p.37).

Some inconsistencies are recorded as document matters, not business ones: the risk factors send the reader to the Industry Overview for "key industry participants" but that chapter names none (DRHP p.37, DRHP p.118); the general information section says the offer size exceeds ₹50 crore while the offer size is blank (DRHP p.73); the abridged prospectus gives a range of acquisition prices of up to ₹250 in the last three years

while the highest price in the capital history is ₹131.89 (AP p.6, DRHP p.83); the weighted average cost of primary issues is ₹6.37 in one place and ₹6.42 in another, on different bases (DRHP p.109, AP p.6); the company says it has a track record of more than three years although it was incorporated in March 2025, relying on the proprietorship (DRHP p.270, DRHP p.161);

and the company's EBITDA adds back ₹1.6 crore of interest, not the full ₹1.9 crore finance cost which also carries processing fees and interest on statutory and MSME dues (DRHP p.130, DRHP p.228).

21Five questions for management

1. Who is the customer that brought ₹49.0 crore, 49.53% of FY26 revenue, how many machines did it take, and how much of the ₹82.7 crore order book is from the same customer?
2. How many machines of each type were delivered in FY24, FY25 and FY26, and at what average price, so that growth can be split into volume and price?
3. Of the ₹43.1 crore of work in progress at March 31, 2026, how much relates to orders more than a year old, and how much profit had already been recognised on it?
4. What output, in machines or machine hours, will the ₹31.9 crore Satna expansion add, and what share of the work now done by outside job workers, ₹8.4 crore in FY26, will it bring in-house?
5. On what terms, and when, will the ₹8.2 crore of promoter loans payable on demand be repaid, and will the rented Faridabad premises be bought back by the company?

1Sources and cited facts

This study was read from 1 document the company filed. The 201 figures it cites are listed under the document each came from, with the page and the sentence as printed.