Maharaja Polyfab Limited IPO

01At a glance

What the company does: makes polypropylene woven packaging, being PP woven bags, printed bags, colour bags, laminated bags and BOPP laminated bags, at two units on one integrated site at Bargarh, Odisha (DRHP p.110).

Who pays it: buyers in seed and crops, fast-moving consumer goods, animal nutrition, mining and minerals, and PP scrap (DRHP p.110). The largest customer was 10.04% of FY26 revenue and the top ten 54.63% (DRHP p.35).

Why it is raising money: ₹2,204.33 lakh for plant and machinery at a new unit on leased land at Bargarh, and ₹650.00 lakh to repay secured borrowings (DRHP p.109).

How fast it has grown: revenue from ₹1,850.41 lakh in FY24 to ₹5,617.00 lakh in FY26, a compound rate of 74.2% a year, and profit from ₹82.03 lakh to ₹1,065.92 lakh, 260.5% a year, by our arithmetic (DRHP p.70).

The one thing to understand: none of that profit has come back as cash. Net cash used in operating activities was ₹19.45 lakh in FY24, ₹183.10 lakh in FY25 and ₹283.43 lakh in FY26, because inventories and receivables absorbed ₹2,222.85 lakh in FY26 alone (DRHP p.71).

02The business, in plain words

Polypropylene granules are extruded into tape, the tape is woven into fabric, the fabric is cut, printed or laminated and stitched into sacks, and the sacks are shipped to whoever needs to move seed, fertiliser, cattle feed, minerals or scrap (DRHP p.110, DRHP p.111). Quality is checked through the run for dimensional accuracy, tensile strength, tape and fabric quality, stitching, lamination, print and weight (DRHP p.111).

A seed company, feed maker or miner needs sacks → places a purchase order → Maharaja Polyfab extrudes tape, weaves fabric and stitches bags at Bargarh → it is paid against the order, on credit.

The company was incorporated on January 20, 2021 (DRHP p.89). It had 171 employees at July 31, 2026, of whom 155 were manufacturing skilled, semi-skilled or unskilled (DRHP p.194). It holds ISO 9001:2015 certification for the manufacture of PP woven bags, BOPP bags, laminated bags and PP woven fabrics (DRHP p.111). Its logo and brand name are not registered with the Registrar of Trademarks (DRHP p.54).

Earnings equation: Profit ≈ tonnes of sacks sold × (price per tonne − polymer cost per tonne) − power and labour − interest and depreciation. In FY26 the cost of materials consumed was ₹3,534.54 lakh against revenue of ₹5,617.00 lakh, with employee cost ₹484.54 lakh, other expenses ₹368.37 lakh, depreciation ₹316.86 lakh and finance cost ₹285.31 lakh (DRHP p.70).

03Where the money comes from

Source: DRHP p.35. No customer is named. Concentration has been steady while revenue tripled.

The document identifies the end industries as seed and crops, fast-moving consumer goods, animal nutrition, mining and minerals and PP scrap, and says revenue comes mainly from PP printed woven bags and PP colour woven bags, but it does not give a revenue split by product or by industry in the pages read (DRHP p.110, DRHP p.32).

Buying is regionally concentrated rather than supplier-concentrated: Odisha was ₹2,376.61 lakh of FY26 purchases (64.17%), West Bengal ₹840.79 lakh (22.70%), Chhattisgarh ₹196.72 lakh (5.31%), Jharkhand ₹117.29 lakh (3.17%) and Assam ₹103.53 lakh (2.80%); a year earlier West Bengal had been the larger source at 49.94% (DRHP p.34). There are no long-term or exclusive supply contracts (DRHP p.33), and no long-term contracts with a majority of customers either; work comes on purchase orders and short-term arrangements (DRHP p.35).

04The growth record

Source: DRHP p.69, DRHP p.70, DRHP p.71. EBITDA, its margin, the PAT margin and borrowings are our arithmetic on those statements: EBITDA is profit before tax plus finance cost and depreciation less other income, and borrowings add the long-term and short-term lines.

Revenue compounded at 74.2% a year from FY24 to FY26 and profit at 260.5%, by our arithmetic (DRHP p.70). Earnings per share, after the bonus issue, were ₹1.20, ₹2.87 and ₹8.10 (DRHP p.70).

The company is four and a half years old, and the prospectus states that its historical performance is not indicative of future growth or financial results (DRHP p.51). It also states that the restated financial statements were provided by peer-reviewed chartered accountants who are not the statutory auditor of the company (DRHP p.41).

05What the growth is made of

Revenue rose from ₹1,850.41 lakh in FY24 to ₹5,617.00 lakh in FY26, an increase of ₹3,766.59 lakh (DRHP p.70). What the document supports:

Capacity put to work. Property, plant and equipment went from ₹1,062.99 lakh at March 2024 to ₹1,877.88 lakh at March 2025 as the company spent ₹863.73 lakh on fixed assets that year, and depreciation rose from ₹195.96 lakh to ₹316.86 lakh over the two years (DRHP p.69, DRHP p.71, DRHP p.70). By March 2026 the existing units were running at an average capacity utilisation of 95.59% (DRHP p.110).

Production ahead of sales. Finished goods and work in progress rose in every year, adding ₹572.77 lakh, ₹916.58 lakh and ₹779.29 lakh to closing stock, which is credited against the year's cost of goods (DRHP p.70). Inventories went from ₹720.92 lakh at March 2024 to ₹2,723.15 lakh at March 2026 (DRHP p.69).

Margin, not only volume. The EBITDA margin moved from 25.48% to 35.76%, by our arithmetic, so revenue grew 203.6% while EBITDA grew 326.1% (DRHP p.70).

The prospectus does not disclose tonnes produced, tonnes sold or realisation per tonne, so the increase cannot be separated into volume and price. That sentence is the finding. It also warns that the historical installed capacity figures it does give rest on assumptions and estimates (DRHP p.49).

06Earnings quality

The line that needs explaining is the gap between profit and cash. Over three years the company reported ₹1,435.39 lakh of profit after tax, by our arithmetic, and used ₹485.98 lakh of cash in operations (DRHP p.70, DRHP p.71). In FY26 working capital absorbed ₹2,222.85 lakh: receivables ₹1,402.37 lakh, inventories ₹948.20 lakh and trade payables ₹166.84 lakh, offset by ₹260.09 lakh released from short-term loans and advances (DRHP p.71). Receivables went from ₹122.63 lakh to ₹1,525.00 lakh in one year (DRHP p.69).

The gap has been funded by borrowing and by shareholders. Short-term borrowings rose ₹849.13 lakh in FY26, and ₹149.50 lakh came in from issuing shares (DRHP p.71). Over the three years ₹350.00 lakh of shareholder loans were converted into equity, in May 2023 and November 2024 (DRHP p.89).

The document also discloses inadvertent errors, defaults, delays and non-compliances in corporate records, and discrepancies and non-compliances in financial reporting or records (DRHP p.40, DRHP p.45).

07The balance sheet

At March 31, 2026 borrowings were ₹3,322.31 lakh, of which ₹1,168.70 lakh were long term and ₹2,153.61 lakh short term, by our arithmetic, against ₹2,729.31 lakh a year earlier (DRHP p.69). Cash was ₹36.53 lakh, all of it cash in hand, so net debt was ₹3,285.78 lakh, by our arithmetic (DRHP p.69, DRHP p.72). Net worth was ₹2,105.75 lakh, so the debt to equity ratio was 1.58, by our arithmetic (DRHP p.69).

Inventories were ₹2,723.15 lakh and trade receivables ₹1,525.00 lakh, together ₹4,248.15 lakh, or 75.6% of FY26 revenue, by our arithmetic (DRHP p.69, DRHP p.70). Property, plant and equipment was ₹1,659.00 lakh and capital work in progress ₹103.61 lakh (DRHP p.69). Trade payables were ₹167.34 lakh, by our arithmetic (DRHP p.69).

Contingent liabilities were ₹28.98 lakh, being income tax demands the company says it is rectifying or evaluating, and capital commitments were ₹20.28 lakh for a 250 KVA uninterruptible power supply and batteries costing ₹24.27 lakh, of which ₹4.00 lakh has been advanced (DRHP p.73).

If the offer proceeds, ₹650.00 lakh of secured borrowings would be repaid, which on the March 2026 balance would leave about ₹2,672.31 lakh, by our arithmetic, before any new drawing (DRHP p.109, DRHP p.69). Unsecured loans can be recalled by lenders at any time, the loan agreements carry restrictive covenants and unconditional rights in favour of lenders, and the promoters have given personal guarantees (DRHP p.53).

08What the money is for

Source: DRHP p.109, and our arithmetic on the ₹2,854.33 lakh of stated objects. General corporate purposes cannot exceed 15% of the amount raised or ₹10 crore, whichever is less, and both objects are scheduled for the year to March 2027 (DRHP p.109).

The new unit is on 98,445.6 square feet at Jhankarpali, Chakarkend Chowk, Bargarh, taken on lease from Mamta Sharma, a relative of a director and one of the selling shareholders, under a lease deed dated May 28, 2026 for eleven months (DRHP p.110, DRHP p.74, DRHP p.68).

The board took note of the ₹2,204.33 lakh estimate on August 20, 2026, and the cost is certified by a chartered engineer, Manish Kumar Padhee, in a project report dated August 25, 2026 (DRHP p.110). The company states that the existing units ran at an average capacity utilisation of 95.59% at March 31, 2026, leaving limited surplus (DRHP p.110). It has not yet placed orders for the machinery (DRHP p.39).

Debt repayment of ₹650.00 lakh would reduce a finance cost of ₹285.31 lakh in FY26, which was 20.0% of profit before tax, by our arithmetic (DRHP p.70).

Into the business the fresh offer of up to 45,31,200 equity shares, before offer expenses (DRHP p.108). To selling shareholders the proceeds of up to 11,20,000 shares offered by six shareholders; at draft stage that is a share count, not an amount (DRHP p.68).

The fund requirements have not been appraised by any bank, financial institution or other external agency, and the company records that it has made no alternate arrangement for meeting the capital requirements of the objects (DRHP p.109, DRHP p.54).

09Who is selling

Source: DRHP p.68, DRHP p.98, DRHP p.331, and our arithmetic on the percentages where both figures are given. All six gave consent letters dated July 3, 2026, and the board took their participation on record on July 18, 2026 (DRHP p.68, DRHP p.331). The offer for sale is 11,20,000 shares in all (DRHP p.108).

10Promoters

The promoters are Rohit Sharma, Ganesh Sharma, Deepak Sharma and Puran Mal Sharma (DRHP p.1). Rohit Sharma is chairman and managing director and Ganesh Sharma a whole-time director; Deepak Sharma has been a director since January 20, 2021 and was chief financial officer from September 25, 2025 to June 15, 2026; Puran Mal Sharma is a promoter and a relative of a director (DRHP p.74). Together the four hold 1,09,49,040 shares, 76.57% of the capital before the offer, by our arithmetic (DRHP p.98).

Promoter economics. Every share the promoters hold was issued at ₹10, the face value, or came from the bonus.

The capital history runs: 10,000 shares on incorporation in January 2021; rights issues of 1,40,000 shares in April 2021 and 2,00,000 in October 2021; a preferential allotment of 10,05,000 shares in January 2022; a rights issue of 6,45,000 shares in November 2022; 10,00,000 shares in May 2023 on conversion of loans; a preferential allotment of 10,00,000 shares in September 2023; 25,00,000 shares in November 2024 on conversion of loans; a private placement of 6,50,000 shares at ₹23 in February 2026; and a bonus issue of 71,50,000 shares in June 2026 (DRHP p.89).

The two loan conversions, ₹100.00 lakh and ₹250.00 lakh, were priced at ₹10 on valuation reports by registered valuers dated May 1, 2023 and September 30, 2024 (DRHP p.91, DRHP p.92).

Two years before the filing the four promoters held 27,65,430 shares of a 40,00,000 share capital, 69.14%, by our arithmetic; the loan conversion of November 2024 and the bonus of June 2026 took them to 76.57% (DRHP p.99, DRHP p.98).

The promoters have given personal guarantees for loan facilities (DRHP p.53). The new unit's land is leased from Mamta Sharma, a relative of a director (DRHP p.110, DRHP p.74). The company states that it has entered into related party transactions in the past and may continue to do so (DRHP p.48).

11Who already owns it

Source: DRHP p.98. There are 1,43,00,000 shares before the offer, and the company has one class of shares with no outstanding convertible instruments (DRHP p.89).

The only outside money that has come in at above face value is the private placement of February 13, 2026: 6,50,000 shares at ₹23, of which Yash Hitesh Patel took 5,20,000 and Sumita Mishra 1,30,000 (DRHP p.92). After the bonus issue of June 6, 2026, one for one, those holdings doubled to 10,40,000 and 2,60,000 shares (DRHP p.89, DRHP p.98). Every other holder is a member of the Sharma family named in the allotment tables (DRHP p.90, DRHP p.91, DRHP p.92).

The shareholding after the offer is blank ([●]), because the offer price is not set (DRHP p.89).

12What changed just before the IPO

• January 20, 2021: the company was incorporated (DRHP p.89).
• January 2022 and November 2022: a preferential allotment of 10,05,000 shares and a rights issue of 6,45,000 shares, both at ₹10, spread the capital across the Sharma family (DRHP p.90, DRHP p.91).
• May 23, 2023: 10,00,000 shares issued at ₹10 on conversion of ₹100.00 lakh of loans (DRHP p.89, DRHP p.91).
• September 6, 2023: preferential allotment of 10,00,000 shares at ₹10 (DRHP p.89).
• FY25: ₹863.73 lakh spent on property, plant and equipment, taking the net block from ₹1,062.99 lakh to ₹1,877.88 lakh; long-term borrowings rose from ₹696.63 lakh to ₹1,424.83 lakh (DRHP p.71, DRHP p.69).
• November 5, 2024: 25,00,000 shares issued at ₹10 on conversion of ₹250.00 lakh of loans (DRHP p.89, DRHP p.92).
• April 15, 2025 to August 4, 2025: two directors, Nitesh Sharma and Anand Sharma, were appointed and ceased within four months (DRHP p.74).
• September 25, 2025: Deepak Sharma took the chief financial officer's office, held until June 15, 2026 (DRHP p.74).
• February 13, 2026: private placement of 6,50,000 shares at ₹23 to two outside investors (DRHP p.92).
• FY26: revenue rose 139.2% and profit 270.8%, by our arithmetic, while operating cash flow stayed negative; receivables rose from ₹122.63 lakh to ₹1,525.00 lakh (DRHP p.70, DRHP p.71, DRHP p.69).
• May 28, 2026: an eleven-month lease taken from Mamta Sharma for the land for the new unit (DRHP p.110).
• June 6, 2026: bonus issue of 71,50,000 shares, one for one (DRHP p.89).
• June 16, 2026: a new company secretary and a new chief financial officer took office (DRHP p.74).
• July 1 and July 18, 2026: the shareholders approved the offer and the board took the offer for sale on record (DRHP p.331).

13Capacity and expansion

Source: DRHP p.110. The capacity utilisation certificate is by a chartered engineer, Manish Kumar Padhee, dated July 9, 2026, and the project report by the same engineer is dated August 25, 2026 (DRHP p.83, DRHP p.110).

The prospectus does not state installed capacity in tonnes for either the existing units or the proposed one, and it carries a risk factor saying that the historical installed capacity information it does give is based on assumptions and estimates and that future utilisation may vary (DRHP p.49). So the chain from the new machinery to added output cannot be traced in units.

Two features of the expansion are worth stating plainly. The land is leased from a relative of a director for eleven months, against machinery costing ₹2,204.33 lakh that would sit on it (DRHP p.110, DRHP p.74). And no orders for that machinery had been placed at the date of the document (DRHP p.39).

14Market size and industry structure

As claimed: the prospectus states that certain sections disclose information from the Informerics Report, and carries a risk factor about relying on it (DRHP p.55). It does not set out, in the pages read, a market size for polypropylene woven packaging that this study can attribute to that report with a date, so none is repeated here.

The part that is addressable: bulk packaging for seed and crops, fast-moving consumer goods, animal nutrition, mining and minerals and PP scrap, served from Bargarh in western Odisha (DRHP p.110).

What the company is today: revenue of ₹5,617.00 lakh from two units running at 95.59% average utilisation (DRHP p.70, DRHP p.110).

Structure, as far as the document supports it: raw material is polypropylene, whose price moves with polymer markets, bought without long-term or exclusive contracts from suppliers concentrated in Odisha and West Bengal (DRHP p.33, DRHP p.34). Customers order on purchase orders with no minimum quantities, and their demand is cyclical and tied to their own production schedules (DRHP p.35). The prospectus names substitution as a risk: the development and adoption of alternative packaging products could reduce demand for PP woven sacks (DRHP p.39). It describes the industry as highly competitive (DRHP p.55). Manufacturing is labour intensive and depends on labour availability (DRHP p.48).

15Competitive position

The prospectus does not print a comparison of accounting ratios against named listed peers in the pages read, so this study sets none out; going outside the offer document for one is not what this format does.

What the document offers as the basis on which the company competes: two units on one integrated site, so tape extrusion, weaving, printing, lamination and stitching happen in one place; ISO 9001:2015 certification for the product range; in-process quality checks on tape and fabric quality, tensile strength, stitching, lamination, print and weight; and raw material sourced close by, 64.17% of FY26 purchases from within Odisha (DRHP p.110, DRHP p.111, DRHP p.34).

What it does not show: tonnage capacity, share of any market, customer retention or repeat-order rates. The company's logo and brand name are not registered as trademarks (DRHP p.54). The registered office and manufacturing units are on partly owned and partly leased property (DRHP p.52).

16Peers the company named

Peers named in the offer document: none appear in the pages of the basis for the offer price read for this study (DRHP p.119).

Because no peer set is set out at this stage, there is no peer price to earnings ratio and no peer return on net worth to set against the company's own. Its own figures are earnings per share of ₹8.10 for FY26 after the bonus issue, against ₹2.87 in FY25 and ₹1.20 in FY24 (DRHP p.70).

A reader should weigh that FY26 figure against the record it sits on: the company is four and a half years old, its own prospectus states that historical performance is not indicative of future results, and the restated accounts were prepared by chartered accountants who are not its statutory auditor (DRHP p.89, DRHP p.51, DRHP p.41). This is a fixed-price offer, so the price will be stated in the prospectus rather than discovered in a book (DRHP p.1).

17Risks, in plain words

Cash: operating cash flow was negative in all three years, at ₹19.45 lakh, ₹183.10 lakh and ₹283.43 lakh (DRHP p.71) → the profit is in stock and receivables, not in the bank → working capital absorbed ₹2,222.85 lakh in FY26, and cash at the year end was ₹36.53 lakh (DRHP p.71, DRHP p.69).

Receivables and inventory: inventories were ₹2,723.15 lakh and receivables ₹1,525.00 lakh at March 2026, together 75.6% of the year's revenue, by our arithmetic (DRHP p.69, DRHP p.70) → a slow-moving sack or an unpaid invoice ties up cash for months → receivable days went from 21 to 99 in two years, by our arithmetic, and the prospectus carries a risk factor on managing inventory and receivables (DRHP p.69, DRHP p.43).

Debt: borrowings were ₹3,322.31 lakh against net worth of ₹2,105.75 lakh, by our arithmetic (DRHP p.69) → interest of ₹285.31 lakh a year must be paid whatever the order book does → unsecured loans can be recalled at any time, covenants are restrictive, and the promoters have given personal guarantees (DRHP p.53).

One site, one product family: both existing units are on one integrated site at Bargarh and revenue comes mainly from PP printed and colour woven bags (DRHP p.110, DRHP p.32) → a stoppage or a shift in packaging preference affects the whole company → the prospectus names substitute packaging products as a risk (DRHP p.39).

Polymer prices and suppliers: polypropylene is bought without long-term or exclusive contracts, 64.17% of FY26 purchases from Odisha and 22.70% from West Bengal (DRHP p.33, DRHP p.34) → a price rise or a regional disruption hits cost and supply together → the company also relies on third-party transporters at both ends (DRHP p.42).

The expansion: ₹2,204.33 lakh of machinery is to go on land leased for eleven months from a relative of a director, and no orders had been placed at the date of the document (DRHP p.110, DRHP p.74, DRHP p.39) → the tenure of the site is short against the life of the asset → the fund requirement has not been appraised by any bank or financial institution, and no alternate arrangement exists for the capital requirement (DRHP p.109, DRHP p.54).

Records and accounts: the prospectus discloses inadvertent errors, defaults, delays and non-compliances in corporate records, discrepancies and non-compliances in financial reporting or records, and that the restated accounts were prepared by chartered accountants who are not the statutory auditor (DRHP p.40, DRHP p.45, DRHP p.41).

Intellectual property: the company's logo and brand name are not registered with the Registrar of Trademarks (DRHP p.54).

18Litigation and regulatory matters

Source: DRHP p.73. The total of claims against the company not acknowledged as debt was ₹28.98 lakh at March 2026 and nil in the two earlier years (DRHP p.73). The company gives no guarantees and has no other money for which it is contingently liable (DRHP p.73).

The prospectus states that there is certain outstanding litigation against the company, an adverse outcome of which may affect the business, and that it has certain contingent liabilities whose materialisation could affect it (DRHP p.38, DRHP p.44). Capital commitments were ₹20.28 lakh, the balance due on a 250 KVA uninterruptible power supply and batteries costing ₹24.27 lakh (DRHP p.73).

19Related-party transactions

The document lists the related parties: the managing director Rohit Sharma, the whole-time director Ganesh Sharma, the director and former chief financial officer Deepak Sharma, the present company secretary and chief financial officer appointed in June 2026, two directors who served from April to August 2025, the promoter and relative of a director Puran Mal Sharma, and ten further relatives of directors, among them Mamta Sharma, Radha Sharma, Saroj Sharma and Shivam Sharma (DRHP p.74).

Three dealings stand out from the rest of the document. Loans from these parties were converted into equity twice, ₹100.00 lakh into 10,00,000 shares in May 2023 and ₹250.00 lakh into 25,00,000 shares in November 2024, in each case at ₹10 a share on a registered valuer's report (DRHP p.89, DRHP p.91, DRHP p.92). The land for the proposed new unit is leased from Mamta Sharma, a relative of a director, for eleven months from May 28, 2026 (DRHP p.110, DRHP p.74). And two of the six selling shareholders, Shivam Sharma and Mamta Sharma, are relatives of directors rather than promoters (DRHP p.68, DRHP p.74).

The prospectus states that the company has entered into related party transactions in the past and may continue to do so, and that there can be no assurance about their terms (DRHP p.48). The year-by-year amounts are set out in the financial information chapter rather than in the summary pages read for this study (DRHP p.74).

20What the offer document does not say

• Tonnes produced, tonnes sold and realisation per tonne are not disclosed, so growth cannot be split into volume and price (DRHP p.49).
• Installed capacity in tonnes is not stated for the existing units or the proposed one, and the company warns that its historical capacity information rests on assumptions (DRHP p.49).
• A revenue split by product or by end industry is not given in the pages read (DRHP p.110).
• No customer and no supplier is named (DRHP p.35, DRHP p.34).
• Customer retention and repeat-order rates are not disclosed (DRHP p.35).
• No comparison with named listed peers is set out at this stage (DRHP p.119).
• No market size attributable to the Informerics Report with a date is set out in the pages read (DRHP p.55).
• What happens to the ₹2,204.33 lakh of machinery if the eleven-month lease on the new site is not renewed is not stated (DRHP p.110).
• The offer price is blank at this stage (DRHP p.108).

21Five questions for management

1. How many tonnes of sacks were produced and sold in FY24, FY25 and FY26, and what was the realisation per tonne in each year (DRHP p.49)?
2. Why did receivables rise from ₹122.63 lakh to ₹1,525.00 lakh in one year, and how much of the March 2026 balance has since been collected (DRHP p.69)?
3. Inventories are about 281 days of materials consumed, by our arithmetic; what is that stock, and how much of it is finished goods against orders in hand (DRHP p.69)?
4. On what terms is the eleven-month lease from Mamta Sharma, what rent is paid, and what security of tenure exists for machinery costing ₹2,204.33 lakh (DRHP p.110)?
5. What installed capacity, in tonnes a year, do the existing units have, and what will the new unit add (DRHP p.110)?

1Sources and cited facts

This study was read from 1 document the company filed. The 137 figures it cites are listed under the document each came from, with the page and the sentence as printed.