Natraj Energy Limited IPO

01At a glance

What the company does: manufactures lead-acid batteries used as inverter, solar and tractor batteries, assembles and sells off-grid, on-grid and hybrid solar power kits, makes batteries for other brands on contract and trades lithium batteries, from one plant at Village Ruheri, Hathras (DRHP p.138, AP p.2).

Who pays it: dealers, distributors, C&F agents and institutional customers, 127 dealers and distributors in FY26 across six states (DRHP p.139, DRHP p.143). No customer is named; the document lists them as Customer 1 to Customer 10 (DRHP p.157). Until July 2025 most sales went to Powerup Energy Private Limited, a promoter group company: 89.41% of FY24 revenue and 73.40% of FY25 (DRHP p.30).

Why it is raising money: ₹1,400.00 lakh for working capital, ₹800.00 lakh to repay borrowings and ₹611.59 lakh for machinery to add to the lead-acid line and set up a lithium-ion line at the same plant, plus general corporate purposes capped at 15% of the gross proceeds or ₹10 crore, whichever is lower (DRHP p.96, DRHP p.97).

How fast it has grown: revenue from ₹10,309.25 lakh in FY24 to ₹11,980.84 lakh in FY26, about 7.8% a year (our arithmetic, DRHP p.62). Profit after tax went from a loss of ₹19.80 lakh to a profit of ₹883.49 lakh, so no profit growth rate can be computed (DRHP p.62).

The one thing to understand: FY26 is the first year the company sold mainly on its own. Sales to Powerup Energy Private Limited, a company owned equally by two promoters, fell from ₹9,217.89 lakh in FY24 to ₹626.96 lakh in FY26, when the arrangement ended in July 2025 (DRHP p.30, DRHP p.205). In the same year profit after tax rose from ₹296.22 lakh to ₹883.49 lakh and operating cash flow turned negative (DRHP p.62, DRHP p.63).

02The business, in plain words

An inverter battery keeps the lights on during a power cut; a solar kit adds panels so the battery charges from the sun. This company makes the battery itself, from lead ingots and lead oxide, and buys in the panels, inverters and boxes that go into a kit. The battery is the same across uses and is only configured differently in voltage, capacity and casing (DRHP p.138, DRHP p.153, DRHP p.154).

A dealer or distributor orders inverter batteries or a solar kit → the company buys lead, lead oxide, acid, separators and containers, and buys panels and inverters for the kits → it casts grids, pastes and cures plates, assembles, fills and charges the batteries at Hathras and packs each kit with the bought-in parts → it is paid per battery or per kit, and separately for batteries made to other brands' specifications and for lead scrap.

The business began in 2011 as M/s Apex Powers, a proprietorship owned by Anupam Varshney, which the company, incorporated in August 2022, took over on January 1, 2023; it became a public company in August 2025 (DRHP p.138, DRHP p.69). It sells under the Apex, Duracharge, Nextra, IONX Energy and Apex IONX brands at home and Quasar and Lucent for export (DRHP p.138). Dealers, not the company, install the solar kits (DRHP p.139). It holds ISO 9001, ISO 14001 and ISO 45001 certificates, and its BIS licence application for storage batteries under IS 16270 is pending (DRHP p.157, DRHP p.276).

In FY26, own-brand manufacturing brought in ₹10,753.55 lakh (89.76%), contract manufacturing for one party ₹872.90 lakh (7.29%) and trading, including lithium batteries, ₹354.39 lakh (2.96%) (DRHP p.142, DRHP p.42). Exports were ₹69.38 lakh, 0.58% (DRHP p.140). At March 31, 2026 the company had 216 employees (DRHP p.161). The plant and registered office are leased from Dinesh Chandra Gupta, father of promoter Durgesh Chandra Gupta, for 15 years from August 1, 2025 (DRHP p.165, DRHP p.182).

Earnings equation: Revenue ≈ batteries sold × price a battery + solar kits sold × price a kit + scrap. The document gives battery output, 1,00,493 units in FY26, but not units sold, kits sold or prices, so the equation cannot be filled in (DRHP p.156). Cost of materials consumed was 74.21% of revenue in FY26, against 92.00% in FY25 and 87.43% in FY24 (DRHP p.146).

03Where the money comes from

Source: DRHP p.139. The document's own industry split puts 76.03% of FY26 revenue in renewable energy (DRHP p.144). Solar kits went from 55.69% of sales to 73.34%, and inverter batteries from 40.10% to 20.62% (DRHP p.139). By state in FY26, Uttar Pradesh was 76.19% of domestic sales, Delhi 13.98% and Rajasthan 6.69% (DRHP p.140). Scrap sales were ₹326.13 lakh in FY26 (DRHP p.234).

Source: DRHP p.157. The largest customer in FY24 and FY25 was Powerup Energy Private Limited: its sales of ₹9,217.89 lakh and ₹7,996.62 lakh match Customer 1 exactly (DRHP p.30, DRHP p.157). In FY26 revenue no longer depends on one customer, the largest being 7.40%, but the top ten still took 47.92% (DRHP p.157). There are no agreements with customers or distributors, only purchase orders (DRHP p.29). The largest supplier was 70.22% of FY24 purchases and 12.12% of FY26, and the top ten 66.04% of FY26 (DRHP p.158).

04The growth record

Source: DRHP p.61, DRHP p.62, DRHP p.63, DRHP p.115, DRHP p.244.

Our arithmetic over FY24 to FY26: revenue grew about 7.8% a year (our arithmetic, DRHP p.62) and EBITDA about 169.6% a year (our arithmetic, DRHP p.115). Profit after tax went from a loss to a profit, so no growth rate can be computed (DRHP p.62). EBITDA margin rose from 2.1% to 13.4%, 1,123 basis points, and PAT margin from (0.19)% to 7.37%, 756 basis points (DRHP p.115). Year by year, revenue rose 5.68% in FY25 and 9.96% in FY26 (DRHP p.115). In rupees, revenue went from ₹103.1 crore to ₹119.8 crore and profit after tax from −₹0.2 crore to ₹8.8 crore (DRHP p.62).

Return on capital employed in FY26 was 33.5% and debt to equity 2.4 times, against 463.07 times in FY24, when net worth was only ₹4.14 lakh (DRHP p.115). Net debt, borrowings of ₹3,051.77 lakh less cash of ₹233.69 lakh, was about 1.8 times FY26 EBITDA (our arithmetic, DRHP p.61, DRHP p.115). Operating cash flow was −₹457.22 lakh in FY26, an outflow of about −₹4.6 crore (DRHP p.63). Other income of ₹2.61 lakh was 0.2% of profit before tax of ₹1,225.47 lakh (our arithmetic, DRHP p.62). Receivable days were 50 in FY26 (DRHP p.105). Contingent liabilities: none (DRHP p.64).

The company defines return on equity on closing net worth, which is why FY24 shows (477.78)% (DRHP p.142). Net worth at March 2026 includes ₹74.00 lakh raised in the October 2025 rights issue and is after ₹425.00 lakh of profit was turned into bonus shares (DRHP p.63, DRHP p.225). The year end is March 31 throughout and no year was changed (DRHP p.138).

05What the growth is made of

Revenue rose ₹1,671.59 lakh from FY24 to FY26 (our arithmetic, DRHP p.139). Solar kits added ₹3,045.34 lakh and "others" ₹378.82 lakh, while inverter batteries fell ₹1,663.66 lakh and tractor batteries ₹88.91 lakh (our arithmetic, DRHP p.139). So the whole increase, and more, came from solar kits, which contain bought-in panels and inverters (DRHP p.154).

Battery output fell. The plant made 1,17,404 batteries in FY24, 1,23,649 in FY25 and 1,00,493 in FY26 (DRHP p.156). The company attributes the FY26 fall to lower demand from customers who export its batteries to the Middle East (DRHP p.48). The document says growth was mainly volume-driven and not due to higher prices (DRHP p.267), but it gives no number of kits sold and no price a unit, so the increase cannot be separated into volume and price. That is the finding.

For FY26 the company splits the change by customer: existing dealers and distributors added ₹250.83 lakh and new ones ₹834.81 lakh (DRHP p.260). That year was also the switch from selling through Powerup Energy Private Limited to selling directly, so FY26 revenue is not like for like with FY24 and FY25 (DRHP p.30, DRHP p.140).

Profit grew much faster than revenue. The company's gross margin, revenue less materials and inventory change, went from 11.36% in FY24 to 16.19% in FY25 and 29.61% in FY26, which it attributes to the shift in mix towards solar kits (DRHP p.262, DRHP p.263). Against that, other expenses doubled from ₹610.90 lakh to ₹1,306.38 lakh in FY26, led by brokerage and discount up from ₹115.36 lakh to ₹408.21 lakh and advertisement up from ₹20.18 lakh to ₹142.15 lakh (DRHP p.236). A change in inventories credited ₹458.01 lakh to FY26 profit and ₹892.50 lakh to FY25 (DRHP p.62).

06Earnings quality

The item that needs explaining is cash. Over three years profit after tax totalled ₹1,159.91 lakh but operating cash inflow only ₹155.27 lakh, and FY26 alone used ₹457.22 lakh (our arithmetic, DRHP p.62, DRHP p.63). In FY26 inventory rose ₹1,093.27 lakh and receivables ₹1,027.96 lakh (DRHP p.63). Work in progress appeared at ₹1,120.57 lakh, including ₹724.72 lakh of battery plates, where there was none a year earlier (DRHP p.235). The company links the build to seasonal demand and to Middle East conditions (DRHP p.256, DRHP p.261). The FY26 outflow was met by ₹1,175.86 lakh of new borrowing and ₹74.00 lakh of equity (DRHP p.63).

Restatement moved profit. Audited profit after tax was ₹48.67 lakh in FY24, ₹380.81 lakh in FY25 and ₹775.46 lakh in FY26; restated it is (19.80), 296.22 and 883.49, the FY26 increase coming mainly from a ₹108.03 lakh preliminary expenses adjustment and the earlier cuts from bad debts, gratuity and tax (DRHP p.223). Warranty cost was ₹282.20 lakh in FY26 on 6,492 claims, yet no warranty provision is recognised because the company says no reliable estimate can be made (DRHP p.37, DRHP p.226). Receivables of ₹163.08 lakh are provided for as doubtful, and ₹394.76 lakh of receivables at March 2026 were due from Powerup Energy Private Limited (DRHP p.231, DRHP p.68).

07The balance sheet

At March 31, 2026 total assets were ₹6,614.49 lakh: inventories ₹3,080.91 lakh, trade receivables ₹1,648.03 lakh, property plant and equipment ₹892.53 lakh, short-term loans and advances ₹584.92 lakh, cash ₹233.69 lakh, security deposits ₹87.74 lakh, deferred tax assets ₹63.22 lakh and an investment in precious metals of ₹23.45 lakh (DRHP p.61, DRHP p.230). Against that sat short-term borrowings of ₹2,730.26 lakh, long-term borrowings of ₹321.51 lakh, trade payables of ₹1,600.45 lakh, provisions and other liabilities, and net worth of ₹1,257.85 lakh (DRHP p.61).

Of the borrowings, an Axis Bank cash credit line had ₹1,956.85 lakh drawn at March 2026, secured on stock and receivables; the rest were NBFC business loans at 16% to 18%, a ₹241.46 lakh working capital loan from Indresh Financial Service at 26.50% guaranteed by the three promoters, invoice discounting, and ₹140.03 lakh of loans from related parties (DRHP p.225, DRHP p.226). Promoters personally guarantee ₹368.69 lakh of the borrowings (DRHP p.68). By August 31, 2026 total borrowings had risen to ₹3,778.87 lakh, including ₹2,399.06 lakh of cash credit and ₹182.26 lakh from related parties (DRHP p.248). Contingent liabilities are nil (DRHP p.64). There is no credit rating (DRHP p.50).

After the issue, as far as the arithmetic goes: repaying ₹800.00 lakh from the proceeds would take borrowings from ₹3,051.77 lakh to about ₹2,251.77 lakh on March 2026 figures, and the share count would rise from 1,00,00,000 to 1,43,00,800 (our arithmetic, DRHP p.61, DRHP p.81). The rupee size of the issue is not set, so post-issue net worth cannot be stated.

08What the money is for

Source: DRHP p.96, DRHP p.101, DRHP p.105, DRHP p.109. The lead-acid machinery is curing ovens, a casting machine, charging tanks and formation chargers, which the company says would take installed capacity from 1,71,423 to 1,92,623 units, 12.37% more (DRHP p.100, DRHP p.101). The lithium-ion line, for cell sorting, testing, laser welding and assembly, would have 25,000 units a year of capacity; the company now only trades lithium batteries (DRHP p.100, DRHP p.102). Quotations are dated June to September 2026 and no order has been placed (DRHP p.101, DRHP p.103).

The loan list names nine facilities with ₹3,232.04 lakh outstanding at August 31, 2026, but does not say which of them the ₹800.00 lakh will repay (DRHP p.99). The company states the repayment does not benefit promoters or related parties (DRHP p.100). None of the objects has been appraised by a bank, and whether a monitoring agency is needed depends on the final issue size (DRHP p.110).

Into the business the fresh issue: up to 43,00,800 new shares, not priced at draft stage (DRHP p.57). To selling shareholders nothing: there is no offer for sale (DRHP p.1).

09Who is selling

No one. The whole issue is a fresh issue of up to 43,00,800 shares of ₹5 each, not priced at draft stage (DRHP p.57). It includes 2,16,000 shares reserved for the market maker (DRHP p.57). Offer for sale: none (DRHP p.1). No promoter or other shareholder sells any shares (DRHP p.282, AP p.1). The company may place up to 20% of the issue before filing the red herring prospectus, and that amount would reduce the fresh issue (DRHP p.81). Promoters and the promoter group will not bid in the issue (DRHP p.95).

10Promoters

There are three promoters (DRHP p.179). Durgesh Chandra Gupta, aged 52, Managing Director for five years from March 11, 2026, has 19 years in battery manufacturing and a B.Sc. and a postgraduate diploma in business management (DRHP p.179, DRHP p.186). Anupam Varshney, aged 51, Whole Time Director from the same date, has 15 years in the battery business, holds an M.A. in Sanskrit and owned M/s Apex Powers, the business the company took over (DRHP p.180, DRHP p.187). Divya Gupta, aged 21, a non-executive director since March 19, 2025 with a BBA from IIM Bodh Gaya, has about one year of experience (DRHP p.180, DRHP p.181).

The document states the relationships: Durgesh Chandra Gupta and Anupam Varshney are husband and wife, and Divya Gupta is their son (DRHP p.184). Priya Gupta, a promoter group shareholder, is listed as their daughter, and Dinesh Chandra Gupta, the plant's lessor, as father of Durgesh Chandra Gupta (DRHP p.184, DRHP p.182).

Durgesh Chandra Gupta and Anupam Varshney are directors of Powerup Energy Private Limited and Hathras Batteries Private Limited; the group company Powerup Energy Private Limited is owned 50:50 by the two (DRHP p.179, DRHP p.205). SEBI refused, on September 23, 2026, an exemption from treating Praveen Gupta, brother of Durgesh Chandra Gupta, as promoter group; disclosure about Praveen Gupta rests on public information only (DRHP p.34, DRHP p.185).

Pay: director remuneration was ₹36.00 lakh each to Durgesh Chandra Gupta and Anupam Varshney in FY24 and FY25 and ₹22.50 lakh each in FY26; Divya Gupta was paid consultancy fees of ₹12.00 lakh in FY25 and ₹9.00 lakh in FY26 (DRHP p.66). Together that is ₹72.00 lakh in FY24 and ₹54.00 lakh in FY26, about ₹0.7 crore and ₹0.5 crore (our arithmetic, DRHP p.66). Priya Gupta received consultancy fees of ₹12.00 lakh a year (DRHP p.66).

Pledges and cases: no promoter share is pledged (DRHP p.86). There is no case against any promoter; Anupam Varshney has filed six cheque-bounce complaints on behalf of M/s Apex Powers for ₹32.93 lakh (DRHP p.270). The group company has no securities listed on any exchange (DRHP p.206). Durgesh Chandra Gupta resigned from Truepower AI Private Limited on April 20, 2026 (DRHP p.184).

Promoter economics: Durgesh Chandra Gupta and Anupam Varshney each subscribed 3,500 shares at ₹10 on incorporation in August 2022, and Durgesh Chandra Gupta bought 3,000 shares from Manmohan Singh Saini at ₹10 in April 2025 (DRHP p.85). On September 30, 2025 a bonus of 425 shares for every one share created 42,50,000 shares for nil consideration (DRHP p.84).

On October 24, 2025 a rights issue of 7,40,000 shares at ₹10 raised ₹74.00 lakh, and on April 27, 2026 each ₹10 share was split into two of ₹5 (DRHP p.84, DRHP p.118). The certified average cost is ₹0.75 a share for Durgesh Chandra Gupta and Anupam Varshney and ₹0.74 for Divya Gupta (DRHP p.88). The last allotment before the IPO was at ₹10 a share, October 2025, before the split (DRHP p.84).

11Who already owns it

Source: DRHP p.88; the after columns are our arithmetic on 1,43,00,800 shares (DRHP p.81). The company has seven shareholders, all individuals: no fund, no company, no institution and no employee stock option scheme (DRHP p.91, DRHP p.94). Promoter holding goes from 91.0% to 63.6% on full allotment, and promoters with promoter group from 95.98% to about 67.1% (our arithmetic, DRHP p.88, DRHP p.81). Two years before filing the holders were Durgesh Chandra Gupta and Anupam Varshney with 35% each and Manmohan Singh Saini with 30% (DRHP p.89).

Sweta Agrawal came in on June 3, 2025 buying 400 shares from Durgesh Chandra Gupta at ₹10, and Swetank Gupta and Sanjana Gupta one share each at ₹10 that month; the document does not state any relationship between these three and the promoters (DRHP p.85, DRHP p.88). There is no pre-IPO investor holding 1% or more that is a fund or a company.

12What changed just before the IPO

• The main customer went away. Sales through Powerup Energy Private Limited stopped in July 2025, and a non-compete agreement with it and Hathras Batteries Private Limited was signed on April 20, 2026 (DRHP p.30, DRHP p.31). Sales to Powerup were 89.41% of FY24 revenue and 5.23% of FY26 (DRHP p.30).
• A bonus issue of 425:1 on September 30, 2025 turned 10,000 shares into 42,60,000 (DRHP p.84).
• A rights issue at ₹10 on October 24, 2025 added 7,40,000 shares for ₹74.00 lakh (DRHP p.84, DRHP p.118).
• A share split from ₹10 to ₹5 on April 27, 2026 doubled the count to 1,00,00,000 (DRHP p.84).
• The company became a public company in August 2025, with a fresh certificate dated August 18, 2025 (DRHP p.69).
• The statutory auditor changed. Agrawal Abhay & Associates resigned on April 14, 2026 for want of a peer review certificate, and ANH & Co. was appointed on April 27, 2026 and reappointed on September 10, 2026 (DRHP p.72).
• A new board and management layer: two independent directors from March 11, 2026, a CFO from December 1, 2025 and a company secretary from December 17, 2025; Manmohan Singh Saini left the board on December 2, 2024 (DRHP p.193, DRHP p.203).
• Revenue and profit: revenue rose from ₹103.1 crore in FY24 to ₹119.8 crore in FY26 and profit after tax from −₹0.2 crore to ₹8.8 crore (DRHP p.62).
• Promoter pay fell from ₹72.00 lakh in FY24 to ₹54.00 lakh in FY26, about ₹0.7 crore to ₹0.5 crore (our arithmetic, DRHP p.66).
• Working capital lengthened. Inventory days went from 42 to 133 and receivable days from 47 to 50 over FY24 to FY26 (DRHP p.105).
• Borrowing rose. Total borrowings went from ₹1,875.91 lakh to ₹3,051.77 lakh in FY26 and ₹3,778.87 lakh by August 2026 (DRHP p.244, DRHP p.248).
• New leases from promoters: three land leases from Anupam Varshney and Durgesh Gupta for ten years from April 1, 2026, and the plant lease from Dinesh Chandra Gupta from August 1, 2025 (DRHP p.182, DRHP p.165).
• Trademarks moved in. Four registered trademarks held by Durgesh Chandra Gupta were assigned to the company on April 20, 2026 (DRHP p.164).
• Utilisation fell from 72.58% in FY25 to 58.62% in FY26 (DRHP p.156).
• Customer concentration fell as direct selling began: the largest customer went from 89.41% of FY24 revenue to 7.40% of FY26, and the top ten from 97.92% to 47.92% (DRHP p.157). Supplier concentration fell too: the top five were 81.66% of FY24 purchases and 45.36% of FY26 (DRHP p.158).
• Attrition rose from 27.19% in FY24 to 37.87% in FY26 (DRHP p.46).

13Capacity and expansion

Source: DRHP p.100, DRHP p.156; utilisation is certified by a chartered engineer. If both are built, lead-acid capacity would be 1,92,623 units and lithium-ion 25,000 units at the same site, without new land or buildings (DRHP p.100, DRHP p.101). The deployment table puts all the machinery spending in FY27 but gives no month for commercial production (DRHP p.109).

The chain from capacity to revenue is not drawn in the document. At FY26's 1,00,493 units the plant already had about 41% of its lead-acid capacity idle (our arithmetic, DRHP p.156). The document gives no expected utilisation, output or price for the lithium-ion line. Solar kits, 73.34% of FY26 sales, are packed from bought-in parts and do not use plant capacity beyond the battery (DRHP p.139, DRHP p.154).

14Market size and industry structure

As claimed: the industry chapter is compiled from websites and public documents; no industry report was commissioned (DRHP p.123). It states that the lead-acid battery market in India is projected to reach US$ 9,594.2 million by 2030, 8.3% a year from 2024, without naming the source alongside that figure (DRHP p.129, AP p.4). It records India's installed solar capacity at 162.15 GW as of June 30, 2026 (DRHP p.134).

The part that is addressable: inverter and solar batteries and solar kits sold through dealers in Uttar Pradesh, Delhi, Rajasthan, Bihar, Jharkhand, Haryana and Madhya Pradesh. The document does not size that part.

What the company is today: ₹11,980.84 lakh of FY26 revenue from one plant of 1,71,423 units (DRHP p.62, DRHP p.156). The document gives no market share.

On structure, the company describes a highly competitive industry of large organised makers, regional players and many unorganised participants (DRHP p.163). Lead is the main raw material and its price moves with global markets (DRHP p.28). Lithium-ion batteries are named as the main substitute, and the company does not yet make them (DRHP p.30). The company holds producer registration under the Battery Waste Management Rules, 2022 (DRHP p.275).

15Competitive position

Source: DRHP p.117, DRHP p.163. The document computes peer PAT margin on total income and peer RoCE on average capital employed, and its own on revenue and closing capital employed, so the columns are not on one basis (DRHP p.115, DRHP p.118).

What the company puts forward as reasons customers come to it: in-house manufacturing, a dealer network in six states with 93 repeat dealer and distributor customers out of 127 in FY26, several brands, quality certifications and experienced promoters (DRHP p.112, DRHP p.143). Against that: one leased plant, no agreements with dealers or suppliers, 76.19% of domestic sales in one state and a direct-selling record of one year (DRHP p.27, DRHP p.28, DRHP p.140, DRHP p.30).

16Peers the company named

Peers named in the offer document: Maxvolt Energy Industries Limited and Sungarner Energies Limited (DRHP p.114).

The document says both differ from the company in products, scale, capacity, network and customers and should not be treated as directly comparable (DRHP p.163). Maxvolt is about 2.5 times the company's FY26 revenue and Sungarner about 0.6 times (our arithmetic, DRHP p.117). Both peers grew revenue far faster in FY26, 176.15% and 157.91%, against 9.96% for the company (DRHP p.117).

The document prints an industry price to earnings range of 16.86 to 17.30 for the two peers on September 18, 2026 prices (DRHP p.113); with no price band, no comparison with this issue can be made. The peer's name is also printed as "Maxvolt Energy Limited" and "Maxvolt Energies Limited" elsewhere (DRHP p.48, DRHP p.163).

17Risks, in plain words

Customers: until FY25 one promoter group company took most sales, 73.40% of FY25 revenue (DRHP p.30) → FY26 is the only year of direct selling on record → the top ten customers were still 47.92% of FY26 revenue with no agreements behind them (DRHP p.157, DRHP p.29).

One product line: solar kits were 73.34% of FY26 sales (DRHP p.139) → demand depends on rooftop solar schemes, net metering and bought-in panels and inverters (DRHP p.32) → inverter batteries fell from ₹4,133.63 lakh to ₹2,469.97 lakh over the same years (DRHP p.139).

Region: Uttar Pradesh was 76.19% of FY26 domestic sales (DRHP p.140) → local demand, weather and policy reach revenue directly.

Cash and working capital: operating cash flow was −₹457.22 lakh in FY26 (DRHP p.63) → inventory days rose from 42 to 133 (DRHP p.105) → the gap was funded by ₹1,175.86 lakh of new borrowing (DRHP p.63).

Debt: borrowings of ₹3,051.77 lakh against net worth of ₹1,257.85 lakh, 2.43 times (DRHP p.244) → a risk factor says ₹2,340.98 lakh of unsecured loans are repayable on demand (DRHP p.36) → one working capital loan costs 26.50% (DRHP p.226).

Plant and technology: one leased plant makes every battery (DRHP p.27) → utilisation fell to 58.62% in FY26 (DRHP p.156) → the lithium-ion line, the stated answer to substitution, has not been ordered (DRHP p.103).

Warranty: 6,492 warranty claims in FY26 cost ₹282.20 lakh, 2.36% of revenue (DRHP p.37) → no warranty provision is carried on the balance sheet (DRHP p.226).

People: attrition of 37.87% in FY26 (DRHP p.46) → 81 of about 214 permanent staff left in the year.

Compliance record: MGT-14 filings with the Registrar of Companies were made 149 to 291 days late, an adjudication on a commencement-of-business filing is pending, and GST, ESI and TDS dues were paid late in each of the last three years (DRHP p.40, DRHP p.41).

Issue-specific: no machinery order has been placed, the general corporate purposes amount is blank, the objects are not appraised, there is no price band, the promoters' average cost is ₹0.74 to ₹0.75 a share, and the promoter group disclosure is incomplete for one member (DRHP p.88, DRHP p.96, DRHP p.103, DRHP p.34).

18Litigation and regulatory matters

Criminal matters: none against the company, promoters, directors or key managerial personnel; the only criminal complaints are the six the promoter filed as complainant (DRHP p.269, DRHP p.270). Civil: no material civil litigation by or against any of them (DRHP p.269). The group company is not party to litigation with a material impact (DRHP p.205). Trade payables at March 2026 were ₹1,600.45 lakh; the creditor table shows 24 material creditors at ₹547.68 lakh (DRHP p.271).

19Related-party transactions

Source: DRHP p.66, DRHP p.67. Powerup was also the largest supplier: Supplier 1's purchases of ₹5,833.50 lakh in FY24 and ₹4,185.65 lakh in FY25 are within a lakh of the purchases from Powerup (DRHP p.158, DRHP p.67). Read from the filing: in those two years the company both sold to and bought from the same promoter company on a large scale. Sales of ₹230.71 lakh to Anzac Exporters in FY24 are also listed (DRHP p.67). Promoters lent and were repaid large sums each year; loans from the two promoters and the HUF stood at ₹625.86 lakh at March 2024 and ₹4.83 lakh at March 2026 (DRHP p.66, DRHP p.67).

What appeared or changed in the two years before filing: sales and purchases with Powerup ended from July 2025, with ₹394.76 lakh still receivable from it at March 2026; salaries to a new CFO and company secretary; consultancy fees to Divya Gupta from FY25; land leases from two promoters from April 2026; and loans from Statcon Electronics India Ltd., ₹25.21 lakh outstanding, whose related-party status ended on March 31, 2026 (DRHP p.66, DRHP p.68, DRHP p.182, DRHP p.65). A loan from Oxyzo Financial Services Limited is secured by cheques on Powerup Energy's bank accounts (DRHP p.225).

20What the offer document does not say

No customer or supplier is named. The number of solar kits and batteries sold, and prices a unit, are not given, so price and mix cannot be separated from volume. Which loans the ₹800.00 lakh will repay is not stated. The expected output, utilisation and price for the lithium-ion line are not stated, nor its commissioning month. The source of the lead-acid market figure is not named next to it.

The relationship, if any, of Sweta Agrawal, Swetank Gupta and Sanjana Gupta to the promoters is not stated. The rent periods (monthly or yearly) in the lease table are not stated. The issue price, general corporate purposes amount, issue expenses and market maker are left blank.

Some document inconsistencies are worth recording as document matters, not business ones: the risk factors call the financial information "draft, unaudited" while the auditor's report says FY26 was audited on September 2, 2026 (DRHP p.26, DRHP p.211); top five customers in FY24 are 96.38% on one page and 95.87% on another (DRHP p.28, DRHP p.157);

the product table shows solar at ₹8,786.67 lakh while the industry table shows renewable energy at ₹9,108.82 lakh for the same year (DRHP p.139, DRHP p.144); inventory days are 133 on one page and 134 on another (DRHP p.105, DRHP p.159); one page says the company owns its plant while others say it is leased (DRHP p.142, AP p.3);

a risk factor puts unsecured loans repayable on demand at ₹2,340.98 lakh while the borrowing notes total ₹923.93 lakh unsecured (DRHP p.36, DRHP p.226); Powerup is described both as having "discontinued their operations fully" and as having transacted until July 2025 (DRHP p.181, DRHP p.206); the objects chapter mentions "large-scale events" and the MD&A gives borrowing as the reason for lower material cost (DRHP p.98, DRHP p.260);

the abridged prospectus prints ₹0.74 as every promoter's average cost where the DRHP prints ₹0.75 for two of them (AP p.7, DRHP p.88).

21Five questions for management

1. How many solar kits and batteries were sold in each of FY24 to FY26, and at what average price, so that the revenue change can be split into volume and price?
2. What made up the ₹1,120.57 lakh of work in progress at March 2026, and how much of it had been sold by September 2026?
3. What does it cost the company each year to honour its 36-month battery warranty, and why is no provision carried against 6,492 claims a year?
4. On what terms did Powerup Energy Private Limited purchase from and supply to the company, and when will the ₹394.76 lakh owed by it be collected?
5. What utilisation and price does the 25,000-unit lithium-ion line need to cover its own depreciation and interest?

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.