Ph1 Industries Limited IPO

01At a glance

What the company does: designs, makes, supplies, installs and commissions alternative fuel and raw material (AFR) systems, which let cement kilns burn waste such as refuse-derived fuel and liquid industrial waste in place of coal, and bulk material handling (BMH) systems, from one leased fabrication plant near Hyderabad (DRHP p.182, DRHP p.183, DRHP p.184, DRHP p.227).

Who pays it: cement makers, almost entirely: the cement industry was 99.40% of FY26 revenue (DRHP p.28). The largest customer brought 37.41% of FY26 revenue, the top five 92.48% and the top ten 98.68% (DRHP p.221). The order book names ACC Limited, Ambuja Cements Limited, JSW Cement, UltraTech Cement, Shree Cements, Dalmia Cement (Bharat) and Geo Cycle in Morocco (DRHP p.220, DRHP p.221).

Why it is raising money: ₹22.3 crore of the fresh issue is for working capital and ₹10.0 crore for repaying loans; ₹2.0 crore is for machinery and ₹2.8 crore for the facade and interiors of a new corporate office (DRHP p.99). The offer for sale is 7,40,000 shares, 1,85,000 from each promoter, at a price not yet set (DRHP p.63, DRHP p.64).

How fast it has grown: revenue from ₹16.6 crore in FY24 to ₹56.5 crore in FY26, about 84.3% a year, and profit after tax from ₹0.34 crore to ₹7.8 crore, about 377.5% a year (our arithmetic, DRHP p.67).

The one thing to understand: almost all of the growth came in one year and from a handful of cement groups. Revenue rose 151.50% in FY26 alone, five customers brought 92.48% of it, and operating cash flow was −₹1.6 crore in the same year that profit after tax was ₹7.8 crore (DRHP p.119, DRHP p.221, DRHP p.276).

02The business, in plain words

What PH1 Industries does

PH1 Industries is a project engineering company with two lines of business (DRHP p.183):

• AFR systems: equipment to receive, store, pull out, convey, weigh and feed solid alternative fuels such as refuse-derived fuel (RDF, fuel made by shredding and drying household waste), biomass and carbon black, and complete systems for liquid waste fuels such as used oil and solvents, which arrive by tanker, are stored, filtered, pumped and injected into the kiln (DRHP p.187, DRHP p.189). It also supplies shredders and screens bought from outside makers, dryers, fire-fighting systems and DeNOx systems that cut nitrogen oxide emissions (DRHP p.188, DRHP p.193, DRHP p.204).
• BMH systems: wagon and ship unloaders, belt, chain, screw and air-slide conveyors, bucket elevators, pneumatic conveying, valves, gates, dampers and dust filters for limestone, clinker, gypsum and fly ash (DRHP p.195, DRHP p.198, DRHP p.201).

A cement plant needs to burn more waste or move more material → it asks for a system → the company designs it, purchases steel and parts, fabricates and assembles at its Hyderabad workshop, sends out some machining, laser cutting and rolling to job-work vendors, and installs it → it is paid in stages tied to drawings, dispatch, commissioning and performance tests (DRHP p.207, DRHP p.208, DRHP p.218, DRHP p.220).

The company was incorporated on February 03, 2015 in Hyderabad and became a public company with a fresh certificate dated July 18, 2026 (DRHP p.239). It says it has completed over 80 commissioned installations in 16 states and supplied systems in Bangladesh, the United Arab Emirates and Mexico (DRHP p.184).

Its registered office is a leased 1,155 sq. ft. space at Balanagar, Hyderabad, and its only plant is a leased 44,446 sq. ft. facility at Devaryamjal Village, Shamirpet Mandal, rented at ₹7,55,582 a month until May 14, 2031 (DRHP p.227). It had 70 employees on its rolls and 59 on contract at August 31, 2026 (DRHP p.184). Employee attrition was 59.96% in FY26 (DRHP p.226).

It holds no registered trademark; five applications were filed in August 2026 (DRHP p.226).

The company calls itself the leading maker of liquid AFR systems in India with over 75% of that segment, a figure it takes from the industry report it commissioned (DRHP p.182).

Earnings equation: Revenue = number of projects × contract value per project. The company says revenue grows with the number and value of plant projects executed and with prices (DRHP p.334). The document does not give the number of projects billed in each year or an average contract value, so the equation cannot be filled in from the filing.

03Where the money comes from

By vertical (₹ crore):

Source: DRHP p.185, converted from ₹ lakh. AFR was 94.27% of FY24 revenue and 52.86% of FY26; BMH went from 5.73% to 47.14% (DRHP p.185). No margin by vertical is given.

By industry: cement 88.32% of FY24 revenue and 99.40% of FY26; pharma fell from 7.05% to 0.22% and chemicals from 1.15% to 0.14% (DRHP p.186).

By place: in FY26, Rajasthan was 37.74% of revenue, Chhattisgarh 25.50%, Tamil Nadu 13.90% and Telangana 10.12% (DRHP p.185, DRHP p.186). Exports were ₹2.3 crore in FY25, 10.46% of that year's revenue, to the UAE, Bangladesh and Mexico, and nil in FY24 and FY26 (DRHP p.186, DRHP p.213).

PH1 Industries customers: how concentrated the revenue is

Source: DRHP p.30, DRHP p.221, DRHP p.222. Revenue does depend on a few customers: in FY26 the first three brought 37.41%, 22.30% and 19.76%, and ten customers brought ₹55.8 crore of ₹56.5 crore (DRHP p.221). The top four are not named; the named FY26 customers are My Home Industries Private Limited at 4.95%, Dalmia Cement (Bharat) Limited at 1.18% and JK Cement Works at 0.32% (DRHP p.221). There are no long-term or exclusive agreements with customers (DRHP p.29). The company served 32 customers in FY26, 22 of them repeat customers (DRHP p.212).

On the supply side, the top ten suppliers were 96.09% of FY26 purchases and the largest, Shiv Shakti Metal, 20.91% (DRHP p.222).

04The growth record

PH1 Industries financials: revenue, profit and margins

Source: DRHP p.119, DRHP p.274, DRHP p.275, DRHP p.276, converted from ₹ lakh. Revenue went from ₹16.6 crore in FY24 to ₹56.5 crore in FY26 and profit after tax from ₹0.34 crore to ₹7.8 crore (DRHP p.67). The company's EBITDA includes other income and its EBITDA margin is worked on total income, not on revenue (DRHP p.120).

Our arithmetic over FY24 to FY26: revenue grew about 84.3% a year and profit after tax about 377.5% a year (our arithmetic, DRHP p.67); EBITDA grew about 207.0% a year (our arithmetic, DRHP p.119). EBITDA margin moved from 7.78% to 21.74%, up 1,396 basis points, so from 7.8% to 21.7% rounded (DRHP p.119). Revenue grew 35.04% in FY25 and 151.50% in FY26 (DRHP p.119).

Gross margin, revenue less materials, direct expenses and the change in stock, went from about 44.1% in FY24 to about 36.3% in FY26 (our arithmetic, DRHP p.275). The FY26 profit rise came mainly from employee cost, finance cost and other costs growing far slower than revenue: employee cost was 31.64% of total income in FY24 and 11.95% in FY26 (DRHP p.323).

The year ends on March 31 throughout. The restatement changed profit: FY24 audited profit after tax was ₹0.73 crore against ₹0.34 crore restated, FY25 ₹1.2 crore against ₹1.0 crore, and FY26 ₹7.6 crore against ₹7.8 crore (DRHP p.281). The restating notes list gratuity, interest to small suppliers, interest income on loans to a related party and work-in-progress that had not been booked, and expenses wrongly recorded as prepaid (DRHP p.281). The auditor, MSPR & Co., reports no audit qualifications needing adjustment (DRHP p.272).

What sits around the record:

• Cash: operating cash flow was −₹1.6 crore in FY26, ₹1.4 crore in FY25 and −₹1.7 crore in FY24 (DRHP p.276). In FY26 receivables absorbed ₹5.8 crore, other assets ₹4.2 crore and inventory ₹2.8 crore (DRHP p.276).
• Other income was ₹0.48 crore in FY26, 4.53% of profit before tax, so 4.5% rounded; it was 35.71% in FY25 and 48.80% in FY24 (DRHP p.297). Most of it is interest on fixed deposits and interest on loans to a related party (DRHP p.297).
• Debt: borrowings were ₹10.6 crore at March 31, 2026 (DRHP p.311), debt to equity 0.80 times, so 0.8× (DRHP p.119). Net of all ₹4.1 crore of cash and bank balances, which include fixed deposits partly given as collateral, they were about 0.5× FY26 EBITDA (our arithmetic, DRHP p.274, DRHP p.288, DRHP p.119). Return on capital employed was 49.72%, so 49.7% rounded (DRHP p.119).
• Customers and suppliers: the largest customer was 37.41% of FY26 revenue, so 37.4% rounded, the top five 92.48%, so 92.5%, and the top ten 98.68%, so 98.7% (DRHP p.221); the top ten suppliers were 96.09% of FY26 purchases, so 96.1% (DRHP p.222); cement was 99.40% of FY26 revenue, so 99.4% (DRHP p.28).
• Loans to a related enterprise: ₹3.3 crore was owed to the company at March 31, 2026 by an enterprise over which its key managers have significant influence (DRHP p.301).
• Retention money: ₹7.2 crore of retention money, the part of a contract price a customer holds back until the job is accepted, was receivable at March 31, 2026 (DRHP p.288).
• Receivable days: 44 days in FY26 against 142 in FY24 (DRHP p.102). The cash conversion cycle was 51 days in FY26 (DRHP p.102).
• Order book: ₹65.0 crore across 25 orders at September 15, 2026, ₹39.9 crore in India and ₹25.1 crore outside India (DRHP p.221).
• Capacity: utilisation of the plant's labour hours was 87.04% in FY26, so 87.0% rounded (DRHP p.184).
• Guarantees: bank guarantees of ₹5.6 crore and letters of credit of ₹2.4 crore were outstanding at March 31, 2026 (DRHP p.312).
• Contingent liabilities: ₹0.01 crore, an income tax demand and a GST penalty (DRHP p.69).
• Use of the issue: ₹22.3 crore of the fresh issue is for working capital, ₹10.0 crore for debt repayment, ₹2.0 crore for machinery and ₹2.8 crore for office works (DRHP p.99).
• Cases: no criminal, regulatory, tax or material civil cases against the promoters (DRHP p.338).

05What the growth is made of

Revenue rose ₹39.9 crore from FY24 to FY26 (our arithmetic, DRHP p.67). By vertical, the change was (our arithmetic, DRHP p.185):

• BMH systems: up ₹25.7 crore, from ₹0.95 crore to ₹26.6 crore.
• AFR systems: up ₹14.2 crore, from ₹15.7 crore to ₹29.9 crore, after falling to ₹10.9 crore in FY25.

By state: Rajasthan went from ₹4.5 crore in FY24 to ₹21.3 crore in FY26 and Chhattisgarh from ₹0.64 crore to ₹14.4 crore, together about ₹30.6 crore of the increase (our arithmetic, DRHP p.185, DRHP p.186).

By customer: the largest customer went from ₹4.5 crore in FY24 to ₹21.1 crore in FY26 (DRHP p.221, DRHP p.222). The company says FY25 growth came from BMH orders of ₹12.3 crore and ₹10.3 crore booked in that year, and FY26 growth from higher execution in both verticals led by large cement projects (DRHP p.327, DRHP p.331). Both orders appear in the order book as an Ambuja Cements Limited order in Rajasthan of June 2024 and an ACC Limited order in Tamil Nadu of May 2024 (DRHP p.220).

The document gives revenue by project, not by unit, so the increase cannot be split into the number of systems sold and their price. That is the finding. The company itself says revenue rises with the number and value of projects executed and with prices (DRHP p.334).

06Earnings quality

The item that needs explaining is where the profit went. At March 31, 2026 the company had ₹10.0 crore of inventory, ₹9.7 crore of trade receivables, ₹7.2 crore of retention money held back by customers and ₹3.3 crore of loans to a related enterprise, against net worth of ₹13.2 crore (DRHP p.274, DRHP p.288, DRHP p.301). Of the receivables, ₹2.3 crore were more than six months old (DRHP p.287).

The loans to the related enterprise rose from ₹1.6 crore at March 2024 to ₹3.3 crore at March 2026, with ₹0.57 crore of interest accrued and not yet received (DRHP p.301). The company says that interest is expected by the end of FY27 (DRHP p.104).

Read from the filing: the receivable days in the working capital note (44 for FY26) do not agree with the MD&A, which says about 63 days for FY26 and about 103 for FY24 (DRHP p.102, DRHP p.330).

The statements the company filed with its banks did not match its books. In the second quarter of FY26 the books showed ₹16.1 crore of receivables against ₹11.1 crore reported to IDBI Bank; at the fourth quarter the books showed ₹10.0 crore of stock and ₹9.7 crore of receivables against ₹6.7 crore and ₹16.6 crore reported to Union Bank of India (DRHP p.306).

The notes put this down to netting of advances, missed purchase entries and not reducing retention money and receipts (DRHP p.306). Documents for a few fixed deposits are not available with the company, and for one HDFC Bank loan the agreement, sanction letter and repayment schedule are not available (DRHP p.288, DRHP p.296).

Interest on late payment of taxes was ₹0.16 crore and interest owed to small suppliers for late payment ₹0.18 crore in FY26 (DRHP p.290).

07The balance sheet

At March 31, 2026 total assets were ₹41.6 crore: inventories ₹10.0 crore, trade receivables ₹9.7 crore, other current assets ₹7.8 crore (₹7.2 crore of it retention money), property, plant and equipment ₹4.5 crore (₹2.5 crore of it land), cash and bank balances ₹4.1 crore (₹3.9 crore of fixed deposits), loans to related parties ₹3.3 crore and short-term advances ₹1.6 crore (DRHP p.274, DRHP p.288, DRHP p.292). Against them: short-term borrowings ₹9.7 crore, long-term borrowings ₹0.93 crore, trade payables ₹10.6 crore, other current liabilities ₹3.8 crore, provisions ₹3.4 crore and net worth ₹13.2 crore (DRHP p.274).

Borrowings of ₹10.6 crore were ₹9.6 crore secured and ₹1.0 crore unsecured (DRHP p.312). The secured part is mainly a Union Bank of India cash credit of ₹8.5 crore at EBLR plus 1.55%, about 9.80%, secured on stock and receivables and on three villas at Prestige Park belonging to S Saravanan, B Prabakaran and J Bhaskar, with personal guarantees from all four promoters (DRHP p.294, DRHP p.105). The unsecured part is term loans from banks and finance companies at 16.50% to 18.50% (DRHP p.295, DRHP p.296). Short-term borrowings almost doubled in FY26, from ₹4.9 crore to ₹9.7 crore (DRHP p.274).

Source: DRHP p.99, DRHP p.311. The capitalisation statement leaves the post-issue column blank (DRHP p.311). ₹10.0 crore is about 94% of March 2026 borrowings (our arithmetic, DRHP p.99, DRHP p.311). Shareholders' funds rose after March 2026 by ₹10.0 crore from a preferential allotment in June 2026 (DRHP p.334).

08What the money is for

PH1 Industries IPO objects: what the money is for

Source: DRHP p.99. 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.99). The named objects add to ₹37.1 crore (our arithmetic, DRHP p.99).

Working capital, ₹22.3 crore: ₹8.0 crore in FY27 and ₹14.3 crore in FY28 (DRHP p.99). The company's own estimate puts working capital at ₹31.6 crore at March 2027 and ₹53.2 crore at March 2028, against ₹11.9 crore at March 2026, assuming no bank borrowing for working capital in those years (DRHP p.102, DRHP p.105). It assumes receivables of 48 and 55 days and inventory of 76 and 87 days (DRHP p.102).

Debt repayment, ₹10.0 crore: the loans named are a Union Bank of India cash credit with ₹9.2 crore outstanding and a working capital term loan of ₹1.7 crore, ₹10.9 crore in all at September 07, 2026, all scheduled for FY27 (DRHP p.113, DRHP p.99). The company says it may repay other loans instead (DRHP p.114).

Office, ₹2.8 crore: glazing, cladding, partitions, furniture and electrical work for a ground plus three storey corporate office on a company-owned 300 sq. yard plot at Pet Basheerabad, whose civil construction the company says it has finished from its own money (DRHP p.110, DRHP p.111, DRHP p.112, DRHP p.227).

Machinery, ₹2.0 crore: a laser cutting machine, a press brake, a plate rolling machine, a heavy lathe, a compressed air system, a 125 kVA diesel generator and a grit blaster, on quotations; no orders placed (DRHP p.107, DRHP p.108).

The objects have not been appraised by any bank or financial institution, and no monitoring agency will be appointed; the company says one is needed only for an issue above ₹50 crore (DRHP p.98, DRHP p.115).

Into the business the fresh issue of up to 30,00,000 shares, at a price not yet set (DRHP p.63). To selling shareholders the offer for sale of up to 7,40,000 shares by the four promoters, at a price not yet set (DRHP p.63).

09Who is selling

PH1 Industries IPO offer for sale: who is selling

Source: DRHP p.88, DRHP p.98; percentages are our arithmetic. The offer is a fresh issue of up to 30,00,000 shares and an offer for sale of up to 7,40,000 shares by four promoters (DRHP p.63). The offer for sale is about 19.8% of the 37,40,000-share offer (our arithmetic, DRHP p.63). The cover puts each seller's weighted average cost of acquisition as "Negligible"; the risk factors put it at ₹0.92 a share (DRHP p.1, DRHP p.48). Offer expenses other than listing fees are shared between the company and the sellers in proportion to the shares each sells (DRHP p.98). No other promoter group member takes part (DRHP p.96).

10Promoters

The promoters are Bhaskar J, S Saravanan, E Surendra Babu and B Prabakaran (DRHP p.261, DRHP p.262), each holding 22,00,000 shares, 20.45% of the company, 88,00,000 shares or 81.80% together (DRHP p.88, DRHP p.89). All four have been directors since incorporation in 2015 (DRHP p.244, DRHP p.245).

• Bhaskar J, 54, Chairman and Whole-time Director, oversees accounts, finance and procurement; a partner in All Flow Pumps & Engineers since 2008 (DRHP p.246, DRHP p.247).
• S Saravanan, 43, Managing Director, leads international business and project execution; a BBA from the University of Madras (DRHP p.247).
• E Surendra Babu, 42, Managing Director, leads sales (DRHP p.247).
• B Prabakaran, 44, Whole-time Director, oversees operations, production, quality and project execution (DRHP p.247).

Pay: directors' remuneration was ₹1.9 crore in FY24 and ₹1.9 crore in FY26 for the four together (DRHP p.290, DRHP p.70); each received ₹0.48 crore in FY26, and each is now appointed for three years from August 06, 2026 at up to ₹0.48 crore a year (DRHP p.250, DRHP p.249). Relatives listed as related parties were paid salaries of ₹0.42 crore in FY26 against ₹0.23 crore in FY25 (DRHP p.70).

Other businesses: all four are partners in All-Flow Pumps & Engineers and directors of Panacea Enviro Private Limited; B Prabakaran is also a director of Atlasrise Infrastructure Private Limited and E Surendra Babu of Aumurgaa Foods and Leisure Experiences Private Limited and Alterna Engineering & Infrastructure Private Limited (DRHP p.262, DRHP p.263). Panacea Enviro Private Limited is the only group company, and the document says it is not in a similar line of business (DRHP p.267, DRHP p.268). The promoter group entities also include Pride Controls & Systems Private Limited, Flowgen Technologies and Sysco Automation (DRHP p.265).

Guarantees and security: all four promoters guarantee the bank loans, and three villas owned by S Saravanan, B Prabakaran and J Bhaskar secure the Union Bank of India facility (DRHP p.294). No promoter shares are pledged (DRHP p.92).

Cases: no criminal, regulatory, tax or material civil cases against the promoters (DRHP p.338).

Promoter economics: each promoter subscribed 2,500 shares at ₹10 on incorporation in 2015 and 1,97,500 rights shares at ₹10 on April 09, 2015, and received 20,00,000 bonus shares on September 24, 2026 (DRHP p.90, DRHP p.91). The minimum promoters' contribution is to be up to 6,87,937 bonus shares from each promoter, locked in for three years (DRHP p.92, DRHP p.93). No promoter or promoter group member bought or sold shares in the six months before filing (DRHP p.84).

11Who already owns it

PH1 Industries promoter holding before and after the IPO

Source: DRHP p.87, DRHP p.89, DRHP p.83, DRHP p.84; Superb Real Estate LLP's holding and share are our arithmetic. There are 1,07,58,737 shares of ₹10 before the issue and eleven shareholders (DRHP p.82, DRHP p.88). If all 30,00,000 new shares are issued and 7,40,000 are sold, the total becomes 1,37,58,737 shares and the promoters' 81.80% becomes about 58.6%, so 81.8% → 58.6% (our arithmetic, DRHP p.88). Promoters and promoter group together go from 92.02% to about 66.6% (our arithmetic, DRHP p.89). The document leaves the after-issue percentages blank (DRHP p.89).

The promoter group holders are Adhilakshmi Bhaskar, Prabakaran Jothi Lakshmi, Vijaya Shanthi Saravanan and Revati Surendra Babu, who took 25,000 rights shares each at ₹10 in April 2015 (DRHP p.83). The promoter group table lists them as the spouses of Bhaskar J, B Prabakaran, S Saravanan and E Surendra Babu (DRHP p.264, DRHP p.265).

The three outside holders came in through a preferential allotment of 78,067 shares at ₹1,281.10 on June 24, 2026, ₹10.0 crore in all, and received bonus shares in September 2026; adjusted for the bonus, their price is ₹116.46 a share (DRHP p.83, DRHP p.334, DRHP p.121). Motilal Oswal Finvest Limited and Frangipani Capital Advisors LLP signed share subscription agreements whose special rights end five business days before the red herring prospectus is filed (DRHP p.242). All pre-issue shares held by others than the promoters are locked in for one year after allotment (DRHP p.94).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹16.6 crore in FY24 to ₹56.5 crore in FY26 and profit after tax from ₹0.34 crore to ₹7.8 crore (DRHP p.67).
• Receivable days: 142 in FY24 and 44 in FY26 (DRHP p.102).
• Promoter pay: directors' remuneration went from ₹1.9 crore in FY24 to ₹1.9 crore in FY26 (DRHP p.290).
• Borrowings: from ₹6.4 crore at March 2025 to ₹10.6 crore at March 2026 (DRHP p.274, DRHP p.311).
• Pre-IPO placement: 78,067 shares at ₹1,281.10 a share on June 24, 2026 to Motilal Oswal Finvest Limited, Frangipani Capital Advisors LLP and Superb Real Estate LLP (DRHP p.83). The MD&A dates it June 18, 2026 (DRHP p.333).
• Bonus issue: 10:1, allotted September 24, 2026, 97,80,670 shares (DRHP p.83, DRHP p.84).
• Last priced allotment: the June 2026 placement at ₹1,281.10 a share, ₹116.46 after the bonus (DRHP p.83, DRHP p.121).
• Conversion: the private company became a public company with a fresh certificate dated July 18, 2026 (DRHP p.3). The restated notes and the approvals chapter give July 17, 2026 (DRHP p.277, DRHP p.340).
• Charter: on June 18, 2026 the main objects were amended to cover AFR systems, waste processing and engineering services; the first two objects still speak of rubber compounds and lining work (DRHP p.239, DRHP p.240).
• Registered office: moved back to Balanagar on July 10, 2026 (DRHP p.239).
• Board and officers: three independent directors joined on August 06, 2026, and a company secretary and a chief financial officer were appointed the same day (DRHP p.252, DRHP p.260).
• Authorised capital: raised from ₹1 crore to ₹15 crore on August 06, 2026 (DRHP p.82).
• Bankers: the IDBI Bank cash credit of ₹3.7 crore at March 2025 was gone at March 2026 and a Union Bank of India cash credit of ₹8.5 crore appeared (DRHP p.294).
• Auditor: no change in the last three years; MSPR & Co. is statutory and peer review auditor (DRHP p.77, DRHP p.74).
• Late filings: annual accounts and the annual return for 2014-15 were filed on July 15, 2026, and the auditor appointment form for 2014-15 on June 23, 2026 (DRHP p.37, DRHP p.38).
• Dividend: none declared in the last three years or the current year (DRHP p.269).

13Capacity and expansion

Source: DRHP p.184, DRHP p.216, certified by Axium Valuation Services LLP. The printed table runs the BMH figures into one line; the split above is read from the filing, and the AFR and BMH hours together give the utilisation the document states (our arithmetic, DRHP p.216). Capacity is measured in hours, not in systems or tonnes, and the company warns that capacity figures rest on management and chartered engineer estimates (DRHP p.45).

The commissioned industry report names an in-house fabrication limit of about 2,400 tonnes a year as a weakness (DRHP p.180). Machining above 85 mm spindle diameter or 2 metres length, laser cutting, blasting and rolling are sent to job-work vendors (DRHP p.208). The ₹2.0 crore of machinery from the issue includes a laser cutting machine, a press brake and a plate rolling machine, which the company says will reduce sub-contracting (DRHP p.107). The document does not say how many hours the new machines add. Capacity is in hours, so the step from capacity to revenue cannot be made here.

14Market size and industry structure

PH1 Industries industry: market size and growth

As claimed: the chapter comes from "Custom Report India Alternate Fuel and Raw Materials (AFR) Firing Systems Market" by Mordor Intelligence Private Limited, which the company commissioned and paid for; it covers 2026 to 2031 with 2025 as the base year, and the risk factor leaves its date blank (DRHP p.27, DRHP p.128).

The chapter opens with IMF and IBEF material on the world and Indian economy, which does not bear on this segment (DRHP p.128, DRHP p.135). The commissioned report puts the India AFR firing systems market at USD 40.32 million in 2026 and projects USD 67.19 million in 2031, 10.75% a year; it gives 9.11% a year for 2021 to 2026 (DRHP p.142).

The same report sizes two wider markets the company also sells into: bulk material handling systems at USD 835.43 million in 2026, projected at USD 1,109.58 million in 2031, 5.84% a year, and waste processing systems at USD 622.42 million in 2026, projected at USD 866.47 million in 2031, 6.84% a year (DRHP p.180, DRHP p.178).

The part that is addressable: the company sells AFR systems, almost all to cement plants, and BMH systems (DRHP p.185, DRHP p.186). The report puts cement at USD 35.82 million of the 2026 AFR market, 88.85% (DRHP p.164). It says the company holds over 75% of liquid AFR systems, a segment it sizes at USD 2.20 million in 2026 (DRHP p.182, DRHP p.156).

What the company is today: FY26 revenue of ₹56.5 crore, ₹29.9 crore from AFR and ₹26.6 crore from BMH (DRHP p.185). The report sizes markets in US dollars and the company reports in rupees, and the document gives no exchange rate, so no market share for the company as a whole is worked out here.

Size over time: the report puts the AFR market at USD 26.07 million in 2021, USD 33.62 million in 2024 and USD 36.77 million in 2025, rising to USD 40.32 million in 2026; the report projects USD 49.09 million in 2028 and USD 67.19 million in 2031 (DRHP p.164). The cement part is projected to grow 11.25% a year from 2026 to 2031 and the waste-to-energy part 6.40% (DRHP p.164).

Segments: by system type, solid AFR co-processing is USD 38.12 million in 2026, 94.54%, and liquid AFR USD 2.20 million (DRHP p.156, DRHP p.142). By fuel stream, municipal solid waste is 57.24% of 2026 revenue, biomass and agricultural waste USD 13.65 million, industrial waste USD 0.99 million and others USD 2.60 million (DRHP p.142, DRHP p.159).

By deployment, greenfield installations are USD 21.52 million, brownfield retrofits USD 16.29 million and turnkey projects USD 2.52 million; the report projects retrofits to grow fastest, 11.95% a year (DRHP p.166, DRHP p.142). By region, the south is 35.51% of 2026 revenue, the north 27.45%, the east 21.85% and the west 15.19% (DRHP p.171). The company's FY26 revenue came mostly from Rajasthan, Chhattisgarh and Tamil Nadu (DRHP p.186).

What drives demand: the Solid Waste Management Rules, 2026, effective April 2026, require cement plants and other industrial solid-fuel users near RDF plants to replace 5% of fuel with RDF in FY2026-27, 10% after three years and 15% within six years (DRHP p.143). Greenhouse gas emission intensity targets under the Carbon Credit Trading Scheme cover 186 cement plants (DRHP p.143).

India generates about 62.4 million tonnes of municipal solid waste a year, which the report projects at 165 million tonnes by 2031, and 50 new RDF plants were commissioned in 2024 (DRHP p.144). The cement industry is expected to add 160 to 170 million tonnes a year of capacity between FY2026 and FY2028 on top of 668 million tonnes installed in 2025 (DRHP p.145, DRHP p.141).

NITI Aayog's roadmap targets 15% to 20% thermal substitution by 2030, against a current national average the chapter gives as 3% to 5% in one place, 4% to 5% in another and 6% to 7% in a third (DRHP p.141, DRHP p.153, DRHP p.146).

Structure: the report describes buyers as a few large cement groups, UltraTech, Ambuja and ACC (Adani Group), Shree Cement, Dalmia Bharat and J.K. Cement, against a fragmented field of suppliers (DRHP p.149). It names international competitors KHD Humboldt Wedag, FLSmidth (now Fuller Technologies), BEUMER Group and Fives, and domestic ones such as Alfa Therm, with ATS Group and Tripcon also active in handling and dosing (DRHP p.149, DRHP p.152, DRHP p.181, DRHP p.179). It says installed systems tie a plant to its supplier because pollution board approvals are linked to the system, so competition centres on new plants and expansions (DRHP p.152).

Inputs and trade: the company's raw materials are mild steel plates, sections and pipes, stainless steel, motors, gearboxes, bearings, valves and drives; some specialised equipment comes from foreign makers (DRHP p.224, DRHP p.30). The report says specialised instruments such as Coriolis meters and emission analysers come from a few global brands and no Indian integrator makes them (DRHP p.149).

Rules: co-processing of hazardous waste in kilns needs state pollution control board authorisation under CPCB guidelines (DRHP p.153). The company works under the Factories Act, labour codes and environment laws, holds a factory licence and a white category intimation to the Telangana State Pollution Control Board, and its ISO 9001:2015 certificates ran to October 02, 2026 (DRHP p.232, DRHP p.341).

What the chapter says can go wrong: most of India's 270-plus kilns are below 5% substitution, and smaller producers lack the technical skills and money (DRHP p.146). A basic solid AFR upgrade costs ₹5 crore to ₹15 crore and an integrated system ₹50 crore to ₹80 crore, which delays decisions at mid-sized producers (DRHP p.147). Demand depends on cement capital spending, which construction slowdowns, interest rates and clearance delays can hold back (DRHP p.181). Read from the filing: the report's competitive section was written with this company's own references in it, and says the company commissioned liquid systems from 2009, before its 2015 incorporation (DRHP p.156, DRHP p.239).

15Competitive position

PH1 Industries competitors

Source: DRHP p.119, DRHP p.149, DRHP p.181. The document gives no figures for the competitors and says the company has no directly comparable listed peers (DRHP p.118).

What the company puts forward: liquid and solid AFR systems from one engineering platform, a 400 cubic metre storage installation the report calls India's largest, over 80 commissioned installations, single-contract execution from design to commissioning, ISO certification and repeat business, 22 of 32 FY26 customers (DRHP p.180, DRHP p.211, DRHP p.212). Against that: one leased plant, ten customers bringing 98.68% of revenue, no long-term contracts, an in-house fabrication limit, a smaller capital base than foreign makers and directors without listed-company board experience (DRHP p.42, DRHP p.221, DRHP p.29, DRHP p.180, DRHP p.48).

16Peers the company named

Peers named in the offer document: none. The company says there are no listed companies that closely match its business model, products and operations (DRHP p.118, DRHP p.119).

So no peer P/E is given. The company's FY26 earnings per share is ₹7.91 after the bonus and its weighted average EPS ₹4.35 (DRHP p.117). With no price band, no P/E for the company can be stated.

17Risks, in plain words

PH1 Industries IPO risks

Customers: the cement industry was 99.40% of FY26 revenue and the top five customers 92.48% (DRHP p.28, DRHP p.30) → a pause in cement capital spending or the loss of one group would cut revenue sharply, and there are no long-term contracts → the largest customer alone was 37.41% (DRHP p.221).

Financial: cash: operating cash flow was negative in FY24 and FY26 (DRHP p.33) → profit is booked before cash comes in, and contracts hold back retention money and need bank guarantees → retention money receivable was ₹7.2 crore and bank guarantees outstanding ₹5.6 crore at March 2026 (DRHP p.288, DRHP p.312).

Related parties: the company lent money to an enterprise over which its key managers have significant influence and also took and returned customer advances from it (DRHP p.300, DRHP p.301) → these are funds of the company outside its business → ₹3.3 crore was owed at March 2026, about 25% of net worth (our arithmetic, DRHP p.301, DRHP p.274).

Business: export order: the order book includes two Geo Cycle orders in Morocco worth ₹24.8 crore, due by February and March 2027, while past exports were five invoices to four customers (DRHP p.221, DRHP p.31) → larger overseas work brings currency, logistics and execution risk the company says it has not met at this scale (DRHP p.31) → outside India was ₹25.1 crore of the ₹65.0 crore order book (DRHP p.221).

Financial: debt: borrowings include unsecured loans at 16.50% to 18.50% (DRHP p.295, DRHP p.296) → finance cost rose to ₹1.5 crore in FY26 (DRHP p.290) → total borrowings were ₹10.6 crore at March 2026 (DRHP p.311).

Regulation and records: the company filed many company law forms late, some by over ten years, and EPF and ESIC returns late, one ESIC return by 321 days (DRHP p.37, DRHP p.42) → penalties may follow → stock and receivable statements to banks differed from the books by up to ₹6.9 crore (DRHP p.306).

Business: one plant: all manufacturing is at one leased Hyderabad facility with no permanent backup power (DRHP p.42, DRHP p.44) → any stoppage halts fabrication → the lease runs to May 14, 2031 (DRHP p.227).

Issue-specific: no monitoring agency, and the objects are not appraised (DRHP p.50, DRHP p.98) → use of the money rests with the board and audit committee → the general corporate purposes amount is blank (DRHP p.99).

18Litigation and regulatory matters

Cases against PH1 Industries and its promoters

Criminal: none by or against the company or the promoters (DRHP p.336, DRHP p.338). The two criminal matters naming an independent director are complaints against Shriram City Union Finance Limited and others, the director among them (DRHP p.336, DRHP p.337). Regulatory: no actions against the company, promoters or directors (DRHP p.336, DRHP p.338). Tax: eight cases against the company totalling ₹0.02 crore; none against promoters or directors (DRHP p.336, DRHP p.338). Creditors: three material creditors were owed ₹2.6 crore at March 31, 2026 (DRHP p.339). Corporate law: eleven company law filings were late; late fees were paid and no notice has been received (DRHP p.37, DRHP p.38).

19Related-party transactions

Source: DRHP p.70, DRHP p.71, DRHP p.300, DRHP p.301, converted from ₹ lakh. The related enterprises listed are Panacea Enviro Private Limited, with common directors, and All Flow Pumps & Engineers, the directors' partnership firm; the tables do not say which of the two each line belongs to (DRHP p.70). Advances of ₹2.7 crore were returned in FY26 (DRHP p.71).

Sales to the enterprises fell from ₹0.37 crore in FY24 to ₹0.03 crore in FY26 (DRHP p.70). Loans outstanding were ₹1.6 crore at March 2024 and ₹3.3 crore at March 2026 (DRHP p.301). The company took ₹0.15 crore of loans from key managers in FY24 and repaid them the same year (DRHP p.71). The company says the transactions are at arm's length (DRHP p.48).

What appeared or changed in the two years before filing: the loans to the related enterprise grew, interest on them was first booked in the restated accounts, and relatives' salaries rose (DRHP p.301, DRHP p.281, DRHP p.70).

20What the offer document does not say

The four largest customers are not named, and their revenue cannot be matched to the order book. Revenue by number of projects and average contract value is not given, so growth cannot be split into volume and price. Margins by vertical, AFR or BMH, are not given. Which related enterprise received the loans, on what interest and repayment terms, is not stated (DRHP p.301). The industry report's date is left blank (DRHP p.27).

The issue size in rupees, the price band, general corporate purposes and issue expenses are blank (DRHP p.99, DRHP p.115). The after-issue shareholding is blank (DRHP p.89). Financial details of the group company are left to a website (DRHP p.267).

Some inconsistencies are recorded as document matters, not business ones: exports began in FY24 in the risk factors and in FY25 in the business chapter, with ₹2.34 crore and ₹2.35 crore of invoices (DRHP p.31, DRHP p.212); receivable days for FY26 are 44 in the objects and about 63 in the MD&A (DRHP p.102, DRHP p.330);

the order book is ₹73.3 crore at August 31, 2026 in the MD&A and ₹65.0 crore at September 15, 2026 in the business chapter (DRHP p.330, DRHP p.221); the preferential allotment is dated June 24 and June 18, 2026 (DRHP p.83, DRHP p.333); the public company certificate is dated July 18 and July 17, 2026 (DRHP p.3, DRHP p.340);

the company is said to have no corporate office and a registered and corporate office at Balanagar (DRHP p.72, DRHP p.183); the new office is said to be built and under construction (DRHP p.110, DRHP p.228); the industry chapter calls the company's figures Ind AS while the accounts are Indian GAAP (DRHP p.128, DRHP p.277); the contingent liabilities are called consolidated though there are no subsidiaries (DRHP p.43, DRHP p.242);

the report credits the company with work from 2009 though it was incorporated in 2015 (DRHP p.156, DRHP p.239); waste handled is 17 million tonnes in one chapter and 2 million tonnes in another (DRHP p.184, DRHP p.180); and the eligibility section gives the website as ph1.sqsenterprises.com while the cover gives ph1.in (DRHP p.346, DRHP p.1).

21Five questions for management

1. Who are the four largest FY26 customers, what share of the ₹65.0 crore order book do they hold, and how much of each FY26 contract was BMH and how much AFR?
2. Which related enterprise received the ₹3.3 crore of loans, at what rate and on what repayment terms, and what was it used for?
3. What gross margin did AFR and BMH projects each earn in FY24, FY25 and FY26?
4. How much of the ₹7.2 crore retention money at March 31, 2026 has been collected since, and how much is tied to projects not yet accepted?
5. Why did the stock and receivable statements given to IDBI Bank and Union Bank of India differ from the books by up to ₹6.9 crore, and have the banks been given corrected statements?

1Sources and cited facts

This study was read from 1 document the company filed. The 185 figures it cites are listed under the document each came from, with the page and the sentence as printed.