Groma Global Limited IPO

01At a glance

What the company does: buys pulses, dry fruits, seeds, cereals, grains, animal feed and oils in India and abroad and sells them in bulk, unbranded, to other businesses; it also has toor dal processed by an outside job worker (DRHP p.155, DRHP p.156).

Who pays it: traders, wholesalers, exporters and processors; the document does not name any customer. The largest customer brought 8.61% of FY26 revenue and the top ten 47.48% (DRHP p.41). Gujarat, Maharashtra, West Bengal and Rajasthan brought 82.90% of FY26 standalone revenue (DRHP p.32).

Why it is raising money: ₹20.0 crore of the fresh issue is to repay working capital loans from Canara Bank and Yes Bank; the general corporate purposes amount is blank (DRHP p.117, DRHP p.118). There is no offer for sale (DRHP p.1).

How fast it has grown: revenue from ₹385.4 crore in FY24 to ₹511.9 crore in FY26, about 15.2% a year, and profit after tax from ₹3.4 crore to ₹7.1 crore, about 44.4% a year (our arithmetic, DRHP p.125). FY24 is standalone and FY26 consolidated, so the two ends are not on the same basis.

The one thing to understand: this is a thin-margin trading business with a large book of money lent and advanced. Profit after tax was 1.39% of FY26 revenue (DRHP p.125), while short-term loans and advances stood at ₹62.7 crore at March 31, 2026, including ₹14.2 crore to directors and related parties, of which ₹7.0 crore was lent to Anjayneya Ventures LLP, a real estate LLP in which the company and promoter group members are partners (DRHP p.80, DRHP p.270, DRHP p.207, DRHP p.267).

02The business, in plain words

What Groma Global does

Groma Global supplies, imports and exports pulses, dry fruits, seeds, grains, animal feed and oils, sub-divided into toor dal, yellow peas, desi chickpeas, raw cashew nuts, rice, soyabean seeds, soya crude oil and others (DRHP p.155). It sells in bulk quantity, unbranded, to the business-to-business market (DRHP p.156, DRHP p.163). It has a second, small line in which toor dal is processed for it by a third party on job work, charged by the tonne processed and "not on regular basis" (DRHP p.155).

A trader, dealer, broker or processor sends a requirement → the company issues a sales contract on quantity, price and delivery → it buys the goods from domestic sellers or overseas suppliers, has them checked by an independent surveyor and either ships them straight to the buyer or holds them in a shared warehouse → it invoices and is paid, the document says, "generally against delivery of goods" (DRHP p.175, DRHP p.176, DRHP p.186).

The company was incorporated as a public limited company in Maharashtra on February 24, 2006, and its present promoters, Dhruv D Kabra and Shishir D Kabra, acquired its shares under a share purchase agreement dated May 18, 2009 (DRHP p.155, DRHP p.203). Its registered and corporate office, 850 sq ft in Andheri West, Mumbai, is taken on leave and licence for ₹2.10 lakh a month (DRHP p.55).

It uses shared warehouses at Taloja near Mumbai, Mangalore (1,000 sq ft) and Thoothukudi (10,000 sq ft), paying for space used (DRHP p.156). It has no plant and machinery and states that capacity does not apply to it (DRHP p.186). It had 16 employees at July 31, 2026 (DRHP p.189).

It bought 99.99% of Harshita Pulses Private Limited on March 27, 2025 and 62% of Progressive Agriventures Private Limited under an agreement of April 3, 2025 (DRHP p.156, DRHP p.157, DRHP p.240). It set up DS Global Vietnam Limited Liability Company on September 12, 2025 but has put no capital into it (DRHP p.157).

Earnings equation: Revenue = tonnes traded × price per tonne, plus small processing and service income. The document gives no tonnes and no prices, so the equation cannot be filled in from the filing.

03Where the money comes from

By product, standalone (₹ crore):

Source: DRHP p.162, converted from ₹ lakh; cereals and grains added together. Pulses were 34.04% of standalone revenue in FY24 and 78.83% in FY26 (DRHP p.162). Within pulses in FY26: toor ₹178.8 crore, yellow peas ₹94.7 crore, desi chickpeas ₹83.1 crore and red lentils ₹33.2 crore (DRHP p.170). Processed toor dal brought ₹3.3 crore in FY26 and nothing before (DRHP p.156). On a consolidated basis pulses were ₹403.2 crore, 78.77% of FY26 revenue (DRHP p.163).

By place: exports were 2.84% of FY26 consolidated revenue, to the UAE, Vietnam, South Africa and Saudi Arabia, and nil in FY24 (DRHP p.34). Gujarat brought 32.85% and Maharashtra 29.18% of FY26 consolidated revenue (DRHP p.34); Maharashtra alone was 52.39% in FY24 (DRHP p.34).

Groma Global customers: how concentrated the revenue is

Source: DRHP p.40, DRHP p.41; FY24 standalone, FY25 and FY26 consolidated. Revenue does not rest on one buyer: the largest brought ₹44.1 crore in FY26 (DRHP p.41). The top ten together brought nearly half. The customers are not named. Customers change a great deal: in FY26, 74 customers were renewed, 158 discontinued and 193 new ones added on the standalone count (DRHP p.39). Sales run on short-term contracts with no long-term commitments (DRHP p.39).

On the supply side, the largest supplier was 10.70% of FY26 consolidated purchases and the top ten 56.50%; in FY24 the largest supplier was 48.24% of standalone purchases (DRHP p.29, DRHP p.30). Imports fell from 66.30% of standalone purchases in FY24 to 24.83% in FY26 (DRHP p.43).

04The growth record

Groma Global financials: revenue, profit and margins

Source: DRHP p.125, AP p.6, converted from ₹ lakh. Revenue went from ₹385.4 crore in FY24 to ₹511.9 crore in FY26 and profit after tax from ₹3.4 crore to ₹7.1 crore (DRHP p.125). The company's EBITDA excludes other income (DRHP p.125).

Our arithmetic over FY24 to FY26: revenue grew about 15.2% a year, EBITDA about 46.0% a year and profit after tax about 44.4% a year (our arithmetic, DRHP p.125). EBITDA margin moved from 1.10% to 1.77%, up 67 basis points, so from 1.1% to 1.8% rounded (DRHP p.125). Revenue rose about 0.6% in FY25 and about 32.0% in FY26 (our arithmetic, DRHP p.125). FY24 is standalone and FY25 and FY26 consolidated (DRHP p.125). The document's own standalone growth rate for FY24 to FY26 is 13.92% a year (DRHP p.155).

The year ends on March 31 throughout. The restatement lowered profit: FY26 profit after tax was ₹9.2 crore audited and ₹7.1 crore restated, and FY25 ₹4.3 crore audited and ₹2.8 crore restated, mainly from unrealised foreign exchange and from depreciation on buildings not charged in the audited accounts (DRHP p.256). Net worth at March 31, 2026 was ₹22.4 crore audited and ₹19.1 crore restated (DRHP p.257). The auditors made no qualification requiring adjustment (DRHP p.356).

What sits around the record:

• Cash: operating cash flow was ₹14.2 crore in FY26 (DRHP p.82). It was an outflow of ₹25.1 crore in FY25 and an inflow of ₹9.3 crore in FY24 (DRHP p.82, DRHP p.86).
• Other income was ₹3.3 crore in FY26, 34.2% of profit before tax (our arithmetic, DRHP p.81). It included a foreign exchange gain of ₹2.1 crore and rent income of ₹0.60 crore (DRHP p.271).
• Debt: borrowings were ₹22.1 crore at March 31, 2026, debt to equity 1.16 times, so 1.2× (DRHP p.332, DRHP p.125), and net of ₹1.3 crore of cash and bank balances about 2.3× FY26 EBITDA (our arithmetic, DRHP p.332, DRHP p.80, DRHP p.125). Return on capital employed was 28.29%, so 28.3% rounded (DRHP p.125).
• Customers and suppliers: the largest customer was 8.61% of FY26 revenue, so 8.6% rounded, the top five 32.92%, so 32.9%, and the top ten 47.48%, so 47.5% (DRHP p.41); the top ten suppliers were 56.50% of FY26 purchases, so 56.5% (DRHP p.30).
• Loans and advances to related parties: ₹14.2 crore at March 31, 2026, of which ₹7.0 crore to Anjayneya Ventures LLP (DRHP p.270).
• Related-party transactions: ₹23.9 crore in FY26, 4.68% of revenue, against ₹77.3 crore, 20.05%, in FY24 (DRHP p.38).
• Receivables: about 21 days of revenue at March 2024 and about 33 days at March 2026 (our arithmetic, DRHP p.84, DRHP p.80).
• Inventory: ₹5.5 crore at March 31, 2026 against ₹51.1 crore a year earlier (DRHP p.80).
• Use of the issue: ₹20.0 crore of the fresh issue is for repaying borrowings (DRHP p.118).
• Cases: six tax matters against the company involving ₹6.1 crore; no criminal cases against the company, promoters or directors (DRHP p.50).
• Staff: attrition was 47.06% in FY26, so 47.1% rounded (DRHP p.64).

05What the growth is made of

Standalone revenue rose ₹114.8 crore from FY24 to FY26 (our arithmetic, DRHP p.162). By product (our arithmetic, DRHP p.162):

• Pulses: up ₹263.0 crore, from ₹131.2 crore to ₹394.2 crore.
• Cereals and grains: up ₹17.2 crore.
• Dry fruits: up ₹4.5 crore.
• Seeds: down ₹91.6 crore, from ₹121.2 crore to ₹29.6 crore.
• Oil: down ₹80.7 crore, from ₹83.2 crore to ₹2.5 crore.

The management discussion puts the FY26 rise in pulses and dry fruits down to "higher volume orders received from 73 renewed customers and orders received from 198 new customers during the year", plus the start of processing and of trading in cereals and timber products (DRHP p.341). Consolidation added ₹12.1 crore to FY26 revenue over the standalone figure (our arithmetic, DRHP p.125, DRHP p.85).

The offer document does not disclose tonnes bought or sold or prices, so the increase cannot be separated into volume and price. That is the finding.

06Earnings quality

The item that needs explaining is where the money in the business sits. At March 31, 2026, short-term loans and advances were ₹62.7 crore, more than three times net worth of ₹19.1 crore: advances to suppliers ₹28.7 crore, GST receivable ₹19.1 crore and loans and advances to related parties ₹14.2 crore (DRHP p.80, DRHP p.269). Trade receivables were ₹46.3 crore, of which ₹18.1 crore had been due for more than six months, with no provision for doubtful debts (DRHP p.268). Advances received from customers were ₹19.1 crore (DRHP p.264).

FY26 operating cash flow of ₹14.2 crore came after inventories released ₹45.7 crore and trade payables absorbed ₹45.3 crore (DRHP p.82). In FY25 the outflow of ₹25.1 crore followed a rise of ₹25.1 crore in short-term loans and advances (DRHP p.51). Other income in FY26 included a foreign exchange gain of ₹2.1 crore, while other expenses included an unrealised foreign exchange loss of ₹2.2 crore (DRHP p.271, DRHP p.274).

07The balance sheet

At March 31, 2026 consolidated total assets were ₹130.8 crore: short-term loans and advances ₹62.7 crore, trade receivables ₹46.3 crore, property, plant and equipment ₹10.6 crore, inventories ₹5.5 crore, other non-current assets ₹2.8 crore (₹2.5 crore of it long bank deposits), goodwill ₹1.3 crore, cash and bank balances ₹1.3 crore and investments ₹0.41 crore (DRHP p.80, DRHP p.267).

Against them: trade payables ₹66.6 crore, other current liabilities ₹22.0 crore (₹19.1 crore of it customer advances and ₹2.1 crore GST payable), short-term borrowings ₹20.7 crore, long-term borrowings ₹1.4 crore and net worth ₹19.1 crore (DRHP p.80, DRHP p.264). Of trade payables, ₹24.2 crore had been outstanding for one to two years (DRHP p.263).

Borrowings at March 31, 2026 included Yes Bank cash credit ₹10.0 crore, Canara Bank overdraft ₹5.1 crore, a Yes Bank overdraft against fixed deposit ₹2.1 crore, Aryadhan Financial Solutions warehouse receipt finance ₹3.3 crore at 12.00% and an unsecured on-demand loan from Dilip Kabra of ₹1.4 crore (DRHP p.262).

The Canara Bank facility is secured on a Vashi plot owned by Anand Agro Food Private Limited, with personal guarantees of both promoters and a corporate guarantee of Anand Agro Food Private Limited; the Yes Bank facility on a shop cum godown at the APMC market, Vashi and two flats at Raheja Classique, Andheri West (DRHP p.262). Contingent liabilities are shown as nil, with pending tax matters listed in notes (DRHP p.88).

Source: DRHP p.332, DRHP p.333, DRHP p.118. The capitalisation statement leaves the post-issue column blank (DRHP p.332). If ₹20.0 crore of the ₹21.9 crore outstanding at September 9, 2026 is repaid, about ₹1.9 crore would remain from that list (our arithmetic, DRHP p.333, DRHP p.118); working capital lines are drawn and repaid through the year, and standalone short-term borrowings drawn in FY26 were ₹567.0 crore (DRHP p.86).

08What the money is for

Groma Global IPO objects: what the money is for

Source: DRHP p.117, DRHP p.118, DRHP p.120. 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.117).

Debt repayment, ₹20.0 crore: the loans named for repayment, outstanding at September 9, 2026, are a Canara Bank working capital loan of ₹5.2 crore at 10.35%, a Yes Bank working capital loan of ₹13.5 crore at 8.25% and a Yes Bank loan of ₹2.2 crore at 7.80%, ₹20.8 crore together, each with a prepayment charge of 2% of the outstanding amount (DRHP p.119).

The board took note of the amount on September 17, 2026 (DRHP p.119). The whole amount is scheduled for FY27 (DRHP p.118). The objects have not been appraised by any bank, and no monitoring agency will be appointed (DRHP p.121). The company had spent ₹0.13 crore on issue expenses from internal accruals up to September 29, 2026 (DRHP p.120).

Into the business the fresh issue of up to 60,00,000 shares, at a price not yet set (DRHP p.78). To selling shareholders nothing: there is no offer for sale (DRHP p.1).

09Who is selling

Groma Global IPO offer for sale: who is selling

Nobody. The issue is a fresh issue of up to 60,00,000 shares of ₹10 (DRHP p.78), and the document marks the offer for sale "NOT APPLICABLE AS THE ENTIRE ISSUE CONSTITUTES FRESH ISSUE OF EQUITY SHARES" (DRHP p.1, AP p.1). None of the promoters or promoter group members is offering shares (DRHP p.115).

10Promoters

The promoters are Dhruv D Kabra and Shishir D Kabra, who hold 79,11,000 shares each, 49.44% each and 98.88% together (DRHP p.225, DRHP p.109). The document states that they are brothers and lists Dilip Premnarayan Kabra and Savita Kabra as the father and mother of each (DRHP p.213, DRHP p.230).

Dhruv D Kabra, 39, is Chairman and Whole-time Director, holds a bachelor's degree in production engineering from the University of Mumbai and has about 14 years in this line of business (DRHP p.210, DRHP p.212). Shishir D Kabra, 38, is Managing Director, has an Executive Post Graduate Diploma in International Business from the Indian Institute of Foreign Trade and about 16 years in this line of business (DRHP p.210, DRHP p.213).

Pay: each is paid a basic salary of ₹2.75 lakh a month (DRHP p.214, DRHP p.215). Dhruv D Kabra received ₹0.40 crore and Shishir D Kabra ₹0.40 crore in FY26, against ₹0.30 crore each in FY24 (DRHP p.90, DRHP p.91).

Loans from the company: loans and advances to Shishir D Kabra stood at ₹0.98 crore and to Dhruv D Kabra at ₹1.0 crore at March 31, 2026 (DRHP p.270). The company did not comply with Section 185 of the Companies Act when giving loans to directors and relatives; it applied for compounding on June 28, 2026, and the document says the loans have since been repaid (DRHP p.269).

Other businesses: Dhruv D Kabra is a director of Anand Agro Food Private Limited and Progressive Agriventures Private Limited, a designated partner of Anjayneya Ventures LLP, and connected with Grow Commodities FZCO and Helios Commodities Inc.; Shishir D Kabra is a director of Anand Agro Food Private Limited and Cargocube Shipping Private Limited, a designated partner of Anjayneya Ventures LLP and proprietor of Harshita Ice and Cold Storage (DRHP p.225).

Anand Agro Food Private Limited runs a dairy business and a dal mill; Shree Laxmi Trading Corporation, Sarita Commodities, Maruti Dal Mill and Taso International Private Limited trade in similar farm products; the company signed ten-year non-compete agreements with all five in June 2026 (DRHP p.58, DRHP p.59, DRHP p.61).

Defaults in the wider group: Shree LTC Export India Private Limited, a group company, defaulted to Bank of India; Dilip Premnarayan Kabra and Savita Kabra, both promoter group members, and others were declared wilful defaulters by Bank of India by public notice of May 31, 2019, and a one-time settlement followed with a no dues certificate of May 4, 2021 (DRHP p.31, DRHP p.32).

Shree LTC Export India Private Limited, its directors and promoters and Shree LTC Agro Sales Limited appeared in the State Bank of India list of wilful defaulters dated September 30, 2025 for an outstanding due of ₹27.16 crore, though the document also says SBI issued a no dues certificate on October 24, 2024 after a compromise settlement (DRHP p.32).

Harshita Pulses Private Limited, now a subsidiary, settled with JM Financial Asset Reconstruction Company in 2017 (DRHP p.32).

Disqualification: Dhruv D Kabra was disqualified as a director from January 11, 2016 to October 31, 2021, and Shishir D Kabra from November 1, 2016 to December 1, 2019, for other companies not filing accounts; both continued to act and signed the company's accounts for FY14 to FY18, and a compounding application was filed on June 28, 2026 (DRHP p.36, DRHP p.37).

Guarantees and pledges: both promoters and Anand Agro Food Private Limited guarantee the company's bank loans (DRHP p.227). No promoter shares are pledged (DRHP p.111).

Cases: none against the promoters or directors (DRHP p.360).

Promoter economics: each promoter bought shares from the original subscribers at ₹10 on May 18, 2009, took 7,50,000 rights shares at ₹20 on December 1, 2012, bought further shares at ₹10 from Savita Kabra and other holders in March 2015, and received 70,32,000 bonus shares on June 20, 2026 (DRHP p.110, DRHP p.111). The average cost is ₹2.06 a share for each promoter (DRHP p.114, DRHP p.115). The bonus issue was 8 shares for every 1 held, 1,42,24,000 shares in all (DRHP p.106).

11Who already owns it

Groma Global promoter holding before and after the IPO

Source: DRHP p.109, DRHP p.111, DRHP p.108; the after-issue column is our arithmetic. There are 1,60,02,000 shares of ₹10 before the issue and seven shareholders (DRHP p.105, DRHP p.115). If all 60,00,000 new shares are issued the total becomes 2,20,02,000 shares (our arithmetic, DRHP p.105), and the promoters' 98.88% becomes about 71.9%, so 98.9% → 71.9% (our arithmetic, DRHP p.110). Promoters and promoter group together go from about 100% to about 72.7% (our arithmetic, DRHP p.111). The document leaves the after-issue percentages blank (DRHP p.111).

The three public holders, Harshita Pawan Kabra, Janhavi Pawan Kabra and Akshar Pawan Kabra, hold 90 shares each; the document says they are cousins of the promoters but are not promoter group members under the regulations (DRHP p.108). No fund or outside company holds shares. Up to 46,00,000 promoter shares are to be locked in for three years as the minimum promoters' contribution (DRHP p.112).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹385.4 crore in FY24 to ₹511.9 crore in FY26 and profit after tax from ₹3.4 crore to ₹7.1 crore (DRHP p.125).
• Receivables: about 21 days of revenue in FY24 and about 33 days in FY26 (our arithmetic, DRHP p.84, DRHP p.80).
• Promoters' pay: ₹0.60 crore in FY24 and ₹0.80 crore in FY26 for the two together (our arithmetic, DRHP p.90, DRHP p.91).
• Bonus issue: 8:1 on June 20, 2026, 1,42,24,000 shares (DRHP p.106).
• Share split: none; the capital history shows only the subscription, a rights issue and the bonus issue (DRHP p.106).
• Pre-IPO placement: none; the document marks it not applicable (DRHP p.115).
• Last allotment: the bonus shares of June 2026, issued for no payment; the last allotment for cash was the rights issue at ₹20 a share in December 2012 (DRHP p.106).
• Acquisitions: 1,49,999 shares of Harshita Pulses Private Limited at ₹100 each, ₹1.5 crore in all, from Premnarayan Bishamberdayal Kabra and Dilip Premnarayan Kabra on March 27, 2025, when its net worth was negative at ₹0.35 crore after a loss of ₹1.97 crore in FY25 (DRHP p.63, DRHP p.52); 62% of Progressive Agriventures Private Limited under an agreement of April 3, 2025, whose net worth was negative at ₹0.84 crore at March 2026 (DRHP p.157, DRHP p.52). Goodwill of ₹1.3 crore arose (DRHP p.80).
• Sourcing shift: imports went from 66.30% of standalone purchases in FY24 to 24.83% in FY26 (DRHP p.43).
• Board and officers: the brothers were re-designated Whole-time Director and Managing Director on May 6, 2025; independent directors joined on January 24, 2026 and March 7, 2026, after the requirement had applied since FY22; a CFO joined on November 1, 2025 and a company secretary on May 1, 2026; the audit committee was formed on May 1, 2026 (DRHP p.217, DRHP p.224, DRHP p.37).
• Company law matters: adjudication and compounding applications were filed on June 28, 2026 for physical share transfers, the late independent and women directors and committees, and directors acting while disqualified (DRHP p.36, DRHP p.37).
• Restatement: FY26 profit after tax cut from ₹9.2 crore audited to ₹7.1 crore restated (DRHP p.256).
• Overseas entity: DS Global Vietnam Limited Liability Company set up on September 12, 2025 with no capital put in, under a second extension of twelve months from June 16, 2026 (DRHP p.52).
• Auditor: D.P. Sarkar & Co., re-appointed for five years from April 1, 2024; no change in the last three years (DRHP p.100, DRHP p.101).
• Public company: the company was incorporated as a public limited company in February 2006 (DRHP p.203).
• Dividend: none in the last three financial years (DRHP p.242).

13Capacity and expansion

Source: DRHP p.156, DRHP p.186. The document states that capacity and capacity utilisation do not apply because the business is not a manufacturing concern, and that it has no plant and machinery (DRHP p.186). Toor dal processing is done by a third-party job worker (DRHP p.155). The issue funds no capital expenditure (DRHP p.117). The document gives no tonnes stored, traded or processed, so the step from capacity to revenue cannot be made.

14Market size and industry structure

Groma Global industry: market size and growth

As claimed: the company did not commission an industry report. The chapter says its information "has been extracted from various websites and publicly available documents" and that neither the company nor anyone connected with the issue has verified it (DRHP p.135). A risk factor adds that no consent was sought from the quoted sources (DRHP p.71). The chapter quotes the IMF's April 2026 World Economic Outlook and India Brand Equity Foundation pages on the Indian economy, Indian agriculture and agricultural exports (DRHP p.141, DRHP p.144, DRHP p.151, DRHP p.154).

The part that is addressable: the company trades pulses, raw cashew nuts, soyabean seeds, cereals, grains, animal feed and oils, mostly inside India, with pulses at 78.77% of FY26 consolidated revenue (DRHP p.163). The chapter gives no size for the pulses trade, for imported pulses, for raw cashew nuts or for soyabean seed and meal. It says India is the world's top producer of pulses but gives no pulses tonnage or value (DRHP p.145).

What the company is today: FY26 revenue of ₹511.9 crore, of which pulses ₹403.2 crore (DRHP p.125, DRHP p.163). With no market figure for these goods, this study does not work out a market share.

Size over time: the chapter puts India's real GDP at ₹3,22,58,000 crore in FY 2025-26, up 7.6% from ₹2,99,89,000 crore (DRHP p.141). Agriculture provides a livelihood to nearly 55% of the population and agriculture and allied sectors were 18% of GDP in 2024-25 (DRHP p.145). Foodgrain production for 2024-25 is put at a record 3,577.32 lakh tonnes, up 7.65% (DRHP p.145).

Agricultural and processed food exports were ₹4,50,839.85 crore (US$53.24 billion) in FY25, up from ₹4,11,772.66 crore (US$49.69 billion) in FY24 (DRHP p.145), and rose from ₹2,49,264 crore in FY20 to FY25 at 12.58% a year (DRHP p.150). Another page gives agricultural exports of US$51.2 billion in FY25 and US$48.1 billion in FY24 (DRHP p.152). The gross value added of agriculture and allied sectors at current prices is put at US$610.51 billion in FY25 (DRHP p.151).

The chapter gives two different growth rates for agriculture in FY25: 5.4% on one page and 4.4% on another (DRHP p.145, DRHP p.151). The chapter quotes NITI Aayog members as expecting about 4% growth in agriculture over the next decade (DRHP p.147).

Segments: the chapter lists principal export commodities, with rice at US$12.47 billion and oil meal at US$1.34 billion in FY25 (DRHP p.145, DRHP p.146), and says rice is more than 30% of agricultural exports (DRHP p.152). It does not split the market by trader, by product traded in bulk or by domestic against imported supply. The company sells into the domestic business-to-business trade in pulses and other commodities (DRHP p.156).

What drives demand: the chapter names government spending on agriculture, including a budget for the Department of Agriculture and Farmers' Welfare of ₹1,27,290.16 crore in 2025-26 (DRHP p.149) and the Mission for Aatmanirbharta in Pulses, approved on March 17, 2026 with an outlay of ₹11,440 crore, to make India self-sufficient in pulses by 2030-31 (DRHP p.144).

It says the minimum support price for arhar was raised to 59% over the weighted average cost of production for FY25 (DRHP p.149). The chapter states, as its own claim, that India is expected to become self-sufficient in pulses in the coming years (DRHP p.151). For a company that has bought pulses abroad, this is a statement about supply, and the chapter does not discuss what it means for importers.

Structure: the chapter itself does not describe traders or name competitors. The risk factors describe the Indian agricultural market as largely fragmented between organised and unorganised players, with rates set by demand and supply and by geography (DRHP p.68). The business chapter says the company competes with local players and larger organised players on price, quality, supply chain and sourcing, and names none of them (DRHP p.187).

Inputs and trade: the chapter, quoting the IMF, says the war in the Middle East from February 28, 2026 and the closure of the Strait of Hormuz raised energy prices, and that food prices were expected to rise on higher energy and fertiliser costs and disrupted shipping (DRHP p.137, DRHP p.139). It says commodity-importing emerging economies face currency depreciation that adds to higher food prices (DRHP p.135). The company's own imports came from Tanzania, Singapore, Australia, Canada, Switzerland and others in FY26 (DRHP p.44).

Rules: the chapter describes APEDA, set up in 1986 to register exporters and set standards for scheduled products (DRHP p.154). The company holds a central FSSAI licence, an APEDA registration and an FSSAI licence for the Thoothukudi warehouse, and has applied for one for the Mangalore warehouse (DRHP p.53).

What the chapter says can go wrong: under the IMF's adverse scenario global growth falls to 2.5% with inflation at 5.4%, against a reference forecast of 3.1% growth for 2026 (DRHP p.140). The risk factors add weather, crop failure, spoilage and contamination as risks to farm commodities (DRHP p.54). The chapter does not discuss pulse prices, import duties on pulses, seasonality in the trade or margins earned by commodity traders.

15Competitive position

Groma Global competitors

Source: DRHP p.125, DRHP p.332. The document states that there are no listed companies in India engaged in a business similar to the company's, so no comparison is given (DRHP p.124). It names no unlisted competitor (DRHP p.187).

What the company puts forward: experienced promoters, a broad product range, sourcing from countries such as Tanzania and Singapore, and long relationships with suppliers that let it obtain goods on credit (DRHP p.123, DRHP p.165, DRHP p.187). Against that: no long-term contracts with customers or suppliers, high customer churn, shared and rented premises, promoter group firms in the same trade, and margins it describes itself as comparatively low (DRHP p.39, DRHP p.56, DRHP p.42, DRHP p.165).

16Peers the company named

Peers named in the offer document: none (DRHP p.124).

The document states that no listed company in India is engaged in a business similar to the company's, and leaves the industry P/E as not applicable (DRHP p.124). Its own FY26 figures are EPS of ₹4.45 after the bonus issue, return on net worth of 37.25% and net asset value of ₹11.96 a share (DRHP p.124). With no issue price, no P/E for the company can be stated.

17Risks, in plain words

Groma Global IPO risks

Financial: money lent out: short-term loans and advances were ₹62.7 crore at March 31, 2026, including ₹14.2 crore to directors and related parties (DRHP p.80, DRHP p.270) → money with related parties and suppliers is not available for trading and depends on repayment → ₹7.0 crore was lent to Anjayneya Ventures LLP, a real estate business (DRHP p.270, DRHP p.207).

Business: thin margin: the EBITDA margin was 1.77% in FY26 (DRHP p.125) → a small move in commodity prices, currency or freight can wipe out the year's profit → other income was 34.2% of FY26 profit before tax (our arithmetic, DRHP p.81).

Promoters: group defaults: promoter group entities and members were declared wilful defaulters by Bank of India in 2019, and a group company appeared in an SBI wilful defaulter list of September 30, 2025 for ₹27.16 crore (DRHP p.32) → this may affect future borrowing and reputation → the company's own bank loans rest on promoter and group guarantees and a group company's property (DRHP p.262).

Customers: 158 customers were discontinued and 193 added in FY26 (DRHP p.39) → sales depend on winning new buyers each year on short-term contracts → the top ten customers were 47.48% of FY26 revenue (DRHP p.41).

Suppliers and imports: the largest supplier was 48.24% of FY24 purchases, and imports were 66.30% of FY24 purchases (DRHP p.29, DRHP p.43) → sourcing has shifted fast before and can shift again → imports were 24.83% of FY26 purchases (DRHP p.43).

Regulation: filings and registrations: the company was late with GST and TDS returns, is still registering with EPFO and ESIC, has not registered its logo, and filed adjudication and compounding applications for several Companies Act breaches (DRHP p.48, DRHP p.49, DRHP p.55, DRHP p.36) → penalties may follow → one TDS payment in FY26 was 152 days late (DRHP p.49).

Legal: tax: six tax matters against the company involve ₹6.1 crore, the largest a GST notice of ₹5.06 crore for FY24 on input tax credit differences (DRHP p.50, DRHP p.88) → an adverse order would mean a payment → the company says it has enough unused input tax credit to meet any demand (DRHP p.89).

Issue-specific: the objects have not been appraised and no monitoring agency will be appointed (DRHP p.121) → the board has wide room on general corporate purposes → the general corporate purposes amount is blank (DRHP p.118).

18Litigation and regulatory matters

Cases against Groma Global and its promoters

Criminal: none against the company, promoters, directors or key managers (DRHP p.50, DRHP p.360, DRHP p.361). Regulatory: no actions by statutory or regulatory authorities against the company, promoters or directors (DRHP p.50). By group companies: three criminal complaints over dishonoured cheques involving ₹0.74 crore and three civil recovery suits involving ₹1.28 crore (DRHP p.50, DRHP p.364, DRHP p.365). Creditors: five material creditors were owed ₹46.0 crore at March 31, 2026 (DRHP p.367).

19Related-party transactions

Source: DRHP p.90 to DRHP p.94, converted from ₹ lakh. Balances at March 31, 2026: loans and advances given to Anjayneya Ventures LLP ₹7.0 crore, Anand Agro Food Private Limited ₹2.9 crore, Taso International Private Limited ₹1.1 crore, Dhruv D Kabra ₹1.0 crore, Shishir D Kabra ₹0.98 crore and Sarita Commodities ₹0.83 crore; loan taken from Dilip Premnarayan Kabra ₹1.4 crore; sundry creditor balance with Shree Laxmi Trading Corporation ₹7.8 crore (DRHP p.94, DRHP p.95). Anjayneya Ventures LLP's capital is held by Savita Kabra, the company and Anand Agro Food Private Limited (DRHP p.267).

What appeared or changed in the two years before filing: advances to Anjayneya Ventures LLP began in FY25; an advance of ₹2.8 crore was made to Progressive Agriventures Private Limited in FY25 before it became a subsidiary; loans to Shree LTC Export India Private Limited and Shree LTC Agro Sales Limited were repaid in FY25 and FY26; new advances went to Taso International Private Limited and Sarita Commodities in FY26; and ten-year non-compete agreements were signed with five promoter group entities in June 2026 (DRHP p.93, DRHP p.94, DRHP p.61).

Total related-party transactions were 20.05% of revenue in FY24 and 4.68% in FY26 (DRHP p.38). The company says the transactions were at arm's length (DRHP p.38).

20What the offer document does not say

Tonnes traded, bought or processed are not disclosed, so growth cannot be split into volume and price. Prices and margins by product are not given. Customers and suppliers are not named. The use of the ₹7.0 crore lent to Anjayneya Ventures LLP and its repayment terms are not described beyond "repayable on demand or without specifying any terms" (DRHP p.269).

Who pays the company ₹0.60 crore of rent income, and for what, is not stated (DRHP p.271). Who owns the shop cum godown and the two flats mortgaged to Yes Bank is not stated (DRHP p.262). Why the company holds 62% of Progressive Agriventures Private Limited when the purchase table shows 51% bought is not explained (DRHP p.63, DRHP p.240). Financial details of the group companies are left to the company website (DRHP p.233).

The issue size in rupees, the issue price, general corporate purposes, issue expenses, the market maker and the after-issue shareholding are blank (DRHP p.117, DRHP p.102, DRHP p.111).

Some inconsistencies are recorded as document matters, not business ones: the litigation chapter says neither the promoters nor group companies have been identified as wilful defaulters while the risk factors describe group company and promoter group wilful defaulter listings (DRHP p.367, DRHP p.32); Shishir D Kabra's disqualification is said to run to December 1, 2019 in the risk factors and to October 2021 in the management chapter (DRHP p.36, DRHP p.214);

the industry chapter gives agriculture's FY25 growth as 5.4% and as 4.4% (DRHP p.145, DRHP p.151); FY24 revenue is ₹38,542.40 lakh in the restated accounts and ₹38,532.47 lakh in the product tables (DRHP p.85, DRHP p.162); and the risk factors note a missing charge on a Kotak Mahindra Prime car loan dated February 28, 2025 (DRHP p.37).

21Five questions for management

1. How many tonnes of pulses, cashew nuts and soyabean products were sold in FY24, FY25 and FY26, and at what average price per tonne?
2. What is Anjayneya Ventures LLP doing with the ₹7.0 crore lent to it, what interest does it pay, and when will it repay?
3. Why did inventories fall from ₹51.1 crore to ₹5.5 crore and trade payables from ₹111.9 crore to ₹66.6 crore in FY26, and what level is normal for the business?
4. What made up the ₹28.7 crore of advances to suppliers at March 31, 2026, and how much of it has since turned into goods?
5. How was the price of ₹100 a share for Harshita Pulses Private Limited set when its net worth was negative, and what does that subsidiary now do for the group?

1Sources and cited facts

This study was read from 1 document the company filed. The 168 figures it cites are listed under the document each came from, with the page and the sentence as printed.