Sceptre Medical (India) Limited IPO

01At a glance

What the company does: makes infection control products (skin antiseptics, surface, instrument and dialysis disinfectants), health and hygiene wipes, and single-use medical devices such as dialysis catheters, AV fistula needles and transducer protectors, and leases hemodialysis machines through a subsidiary (DRHP p.165, DRHP p.169).

Who pays it: distributors and super-stockists brought 63.13% of FY26 revenue, private-label buyers (B2B) 31.49%, government buyers 3.54% and online buyers 1.84% (DRHP p.190). The largest customer brought 10.86% of FY26 revenue and the top ten 34.08% (DRHP p.177). No customer is named.

Why it is raising money: ₹31.5 crore of the fresh issue goes to machinery, 200 hemodialysis machines and clean rooms for a new plant at Liwan, Sonipat, ₹4.0 crore to repaying loans and ₹2.2 crore to product registrations abroad (DRHP p.106). The offer for sale of 13,00,000 shares goes to four promoters and four investor firms (DRHP p.1).

How fast it has grown: revenue from ₹22.2 crore in FY24 to ₹67.9 crore in FY26, about 74.8% a year, and profit after tax from ₹1.6 crore to ₹11.5 crore, about 167.7% a year (our arithmetic, DRHP p.70).

The one thing to understand: most of the FY26 jump came from folding promoter-held businesses into the company. M. S. Medicals Private Limited was bought on April 1, 2025 from the same promoter group in a deal the auditors' note says was not at arm's length, and the medical devices line, nil before, was ₹20.2 crore of FY26 revenue (DRHP p.256, DRHP p.26). Revenue rose 136.79% in FY26 against 29.04% in FY25 (DRHP p.287, DRHP p.289).

02The business, in plain words

What Sceptre Medical does

Sceptre Medical started in 2010 making antiseptics and disinfectants at Plot 230 in the HSIIDC Rai industrial area, Sonipat (DRHP p.212). It added a plant for wipes at Plot 31 in 2020 (DRHP p.212). A third plant, Plot 187, belongs to the subsidiary Sceptre Medical Devices Private Limited and makes catheters, needles, tubing sets and other devices with injection moulding, assembly and ethylene oxide sterilisation (DRHP p.179, DRHP p.184). A fourth plant is being built on owned land at Liwan, Sonipat, bought for ₹5.0 crore in January 2025 (DRHP p.201).

A hospital, dialysis centre or distributor needs antiseptic, disinfectant, wipes or a catheter kit → the company buys chemicals such as chlorhexidine gluconate, hydrogen peroxide and quaternary ammonium compounds, nonwoven fabric and plastic parts → it mixes, fills and packs the liquids, wets and packs the wipes, or moulds, assembles and sterilises the devices → it invoices against orders, mostly through distributors and super-stockists (DRHP p.25, DRHP p.181, DRHP p.190).

Products carry brands such as Scepto Rub, Klor Kleen, Rein, Sceptre Organics and Twittles (DRHP p.188, DRHP p.197). The subsidiary M. S. Medicals Private Limited distributes the devices, maintains dialysis centres and leases hemodialysis machines to hospitals (DRHP p.165). The group had 133 permanent employees on September 20, 2026 and no contract labour (DRHP p.199). Exports were 1.60% of FY26 revenue, mostly to Nepal (DRHP p.167, DRHP p.168).

Earnings equation: Revenue = units sold × price per unit, across bottles, wipe packs and device pieces. The document gives production by product (for example 50,13,354 packs of 10 to 120 wipes and 78,562 short-term dialysis catheters in FY26) but no prices and no units sold, so the equation cannot be filled in from the filing (DRHP p.192).

03Where the money comes from

By product group (₹ crore):

Source: DRHP p.26, DRHP p.189, converted from ₹ lakh. Infection control was 91.63% of FY24 revenue and 39.87% of FY26; medical devices 29.67% of FY26 (DRHP p.26). No profit is given by product group.

By channel in FY26: distributors (B2D) 63.13%, private-label B2B 31.49%, government (B2G) 3.54%, online D2C 1.84% (DRHP p.190). By state in FY26: Delhi 50.97%, Uttar Pradesh 12.13%, Haryana 9.71% (DRHP p.27). The North zone was 84.66% of FY26 domestic revenue (DRHP p.30).

Sceptre Medical customers: how concentrated the revenue is

Source: DRHP p.33, DRHP p.34, DRHP p.177. In FY26 the largest customer brought ₹7.4 crore of ₹67.9 crore of revenue (DRHP p.177). Revenue depended on a few customers in FY24 and FY25 and much less so in FY26, the year the subsidiary M. S. Medicals was first consolidated (DRHP p.256). The document does not say why the share fell, and names no customer. It has no long-term or exclusive arrangement with any customer (DRHP p.34).

Customers of more than five years brought 44.21% of FY26 revenue, against 69.27% in FY25 (DRHP p.189). The distributor count went from 128 in FY24 to 535 in FY26, with written agreements with 20 of them (DRHP p.191, DRHP p.28).

On the supply side, the top five suppliers were 45.96% of FY26 raw material purchases and the top ten 60.56% (DRHP p.25). Imports were 0.34% of FY26 purchases (DRHP p.195).

04The growth record

Sceptre Medical financials: revenue, profit and margins

Source: DRHP p.69, DRHP p.70, DRHP p.71, DRHP p.128, converted from ₹ lakh. Revenue went from ₹22.2 crore in FY24 to ₹67.9 crore in FY26 and profit after tax from ₹1.6 crore to ₹11.5 crore (DRHP p.70).

Our arithmetic over FY24 to FY26:

• Revenue grew about 74.8% a year (our arithmetic, DRHP p.70).
• EBITDA grew about 121.3% a year (our arithmetic, DRHP p.128).
• Profit after tax grew about 167.7% a year (our arithmetic, DRHP p.70).
• EBITDA margin moved from 15.54% to 24.91%, up 937 basis points, so from 15.5% to 24.9% rounded (DRHP p.128).

The year ends on March 31 throughout. FY24 is standalone; FY25 and FY26 are consolidated (DRHP p.245). Of FY26 profit, ₹2.4 crore (20.48%) came from M. S. Medicals and ₹0.39 crore from Sceptre Medical Devices as an associate (DRHP p.277). The auditors' note gives a proforma table as if the group had existed from April 1, 2025, but the table is not legible in the filed text (DRHP p.256). The restatement changed FY26 profit by under ₹0.05 crore, from ₹11.53 crore in the books to ₹11.49 crore restated (DRHP p.274).

What sits around the record:

• Cash: operating cash flow was −₹1.9 crore in FY26, ₹4.2 crore in FY25 and ₹0.27 crore in FY24 (DRHP p.71). In FY26 trade receivables absorbed ₹17.7 crore (DRHP p.71).
• Receivables: ₹30.2 crore at March 31, 2026 against ₹5.2 crore a year earlier (DRHP p.69). Receivable days went from 77 in FY24 to 162 in FY26, so 77 → 162 (our arithmetic, DRHP p.69).
• Other income was ₹0.51 crore, about 3.4% of FY26 profit before tax of ₹14.9 crore, mostly a GST refund and a gain on selling fixed assets (our arithmetic, DRHP p.70, DRHP p.288).
• Debt: borrowings were ₹32.9 crore at March 31, 2026 (DRHP p.69), debt to equity 1.10, so 1.1× (DRHP p.128), and net debt of ₹27.9 crore about 1.6× FY26 EBITDA (our arithmetic, DRHP p.69, DRHP p.128). Return on capital employed was 34.71%, so 34.7% rounded (DRHP p.128). Finance cost was ₹1.4 crore in FY26 against ₹0.65 crore in FY25 (DRHP p.70).
• Customers and suppliers: the largest customer was 10.86% of FY26 revenue, so 10.9% rounded (DRHP p.177), the top five 25.35%, so 25.4% (DRHP p.33), and the top ten 34.08%, so 34.1% (DRHP p.177); the top ten suppliers were 60.56% of FY26 purchases, so 60.6% (DRHP p.25).
• Older receivables: ₹9.5 crore of the March 2026 receivables was more than six months old, ₹6.2 crore of it six months to a year and ₹3.2 crore one to two years (DRHP p.270).
• Related-party sales: sales to related parties were ₹3.6 crore in FY24, mostly to Organics Wipes LLP, and ₹1.2 crore in FY26 (DRHP p.74).
• Contingent liabilities: claims not acknowledged as debt of under ₹0.01 crore, and a capital commitment of ₹0.32 crore for a plot (DRHP p.72).
• Use of the issue: ₹31.5 crore of the fresh issue is for capital expenditure and ₹4.0 crore for debt repayment (DRHP p.106).
• Subsidiary bought: M. S. Medicals cost ₹4.5 crore (DRHP p.214).
• Industry: the company places itself in healthcare consumables, under a report titled "Healthcare Industry w.r.t Medical Devices, Infection Control and Health & Hygiene products" (DRHP p.165, DRHP p.138).

05What the growth is made of

Revenue rose ₹45.7 crore from FY24 to FY26 (our arithmetic, DRHP p.70).

Consolidation: medical devices, nil in FY24 and FY25, were ₹20.2 crore of FY26 revenue (DRHP p.26). The company says the FY26 increase was primarily due to the group restructuring under which M. S. Medicals became a wholly owned subsidiary from April 1, 2025, along with wider distribution, tenders and new distributors (DRHP p.287, DRHP p.288). That line is about 44% of the two-year increase (our arithmetic, DRHP p.26).

Health and hygiene: up from ₹1.9 crore in FY24 to ₹20.7 crore in FY26 (DRHP p.26). Installed capacity for packs of 10 to 120 wipes went from 50,000 in FY24 to 70,00,000 in FY26, and output from 33,927 to 50,13,354 packs (DRHP p.192).

Infection control: up from ₹20.4 crore to ₹27.1 crore (DRHP p.26). Output of 500 ml sanitiser went from 2,78,364 to 4,40,237 bottles (DRHP p.192).

The company says revenue increases are "by and large linked to increases in volume of business" (DRHP p.292). The document gives production but no prices and no units sold, so the increase cannot be split into volume and price. That is the finding.

06Earnings quality

The item that needs explaining is receivables. They went from ₹5.2 crore at March 2025 to ₹30.2 crore at March 2026 while revenue rose to ₹67.9 crore (DRHP p.69, DRHP p.70). The MD&A puts this down to the rise in revenue (DRHP p.286). At March 2025, ₹5.1 crore of ₹5.2 crore was under six months old; at March 2026, ₹20.7 crore was under six months, ₹6.2 crore six months to a year and ₹3.2 crore one to two years (DRHP p.270). The document says there was no default by customers in the three years (DRHP p.44).

The FY24 and FY25 accounts were audited by a firm without a peer review certificate; the restated statements are examined by Surender Kumar Singhal & Co. (DRHP p.246).

07The balance sheet

At March 31, 2026 total assets were ₹78.7 crore: trade receivables ₹30.2 crore, property, plant and equipment ₹18.4 crore, inventories ₹12.5 crore, cash ₹5.0 crore, capital work in progress ₹4.7 crore, short-term loans and advances ₹4.5 crore and other non-current assets ₹2.3 crore (DRHP p.69). Against them: long-term borrowings ₹14.0 crore, short-term borrowings ₹18.9 crore, trade payables ₹4.9 crore, other current liabilities ₹4.9 crore, provisions ₹3.5 crore and net worth ₹29.9 crore, plus ₹2.0 crore of minority interest (DRHP p.69).

Borrowings at March 31, 2026: secured bank term loans ₹16.1 crore, vehicle loans ₹0.68 crore, cash credit ₹10.1 crore, an unsecured working capital loan ₹2.0 crore, loans from related parties ₹3.4 crore and others ₹0.16 crore (DRHP p.259). By August 31, 2026 the group owed ₹33.0 crore, including a SIDBI term loan with ₹9.9 crore outstanding, a Punjab National Bank cash credit of ₹5.4 crore, unsecured business loans at 14.80% and 15.25%, and ₹1.4 crore of interest-free loans from directors (DRHP p.280, DRHP p.281). Six promoters guarantee the bank facilities (DRHP p.282).

Source: DRHP p.69, DRHP p.106, DRHP p.279. The capitalisation statement leaves the post-issue column blank (DRHP p.279). ₹4.0 crore is about 12% of March 2026 borrowings (our arithmetic, DRHP p.106, DRHP p.69).

08What the money is for

Sceptre Medical IPO objects: what the money is for

Source: DRHP p.106. 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.1).

Liwan plant, ₹31.5 crore: ₹27.0 crore of machinery and ₹4.5 crore of clean rooms (DRHP p.114, DRHP p.115). The largest item is 200 hemodialysis machines at ₹7.5 lakh each, ₹15.0 crore, from Lifecare Surgimed (DRHP p.110). The company says it now wants to place these machines itself rather than through its subsidiaries, to earn from the consumables used with them (DRHP p.108).

Other items include seven electric injection moulding machines for ₹4.8 crore from Shibaura Machine India and a wet wipes flow pack line for ₹2.0 crore from Henan Droid Group Co., Limited (DRHP p.109, DRHP p.111). No orders have been placed (DRHP p.114). Construction of the building began in May 2025 and is due to finish in December 2026, with commercial production planned for June 2027 (DRHP p.116, DRHP p.117).

The deployment table puts all of this object in FY28 (DRHP p.106). The Consent to Establish was received on September 30, 2026, after construction had started (DRHP p.117, DRHP p.41).

Product registrations, ₹2.2 crore: CE certification fees and regulatory support for six product categories, ₹2.1 crore, and biocompatibility tests for a hemodialysis catheter kit, ₹0.11 crore (DRHP p.118, DRHP p.119).

Debt repayment, ₹4.0 crore: from Punjab National Bank term loans and cash credit with ₹9.1 crore outstanding at August 31, 2026 (DRHP p.120, DRHP p.121).

The objects have not been appraised by any bank or financial institution (DRHP p.107). The document says a monitoring agency will be appointed before the RHP (DRHP p.123).

Into the business the fresh issue of up to 56,00,000 shares, at a price not yet set (DRHP p.1). To selling shareholders up to 13,00,000 shares, at a price not yet set (DRHP p.1).

09Who is selling

Sceptre Medical IPO offer for sale: who is selling

Source: DRHP p.67, DRHP p.105; percentages are our arithmetic. The cover lists the same eight sellers and share counts (DRHP p.1). The offer for sale is 13,00,000 of the 69,00,000 shares offered, about 18.8% (our arithmetic, DRHP p.1). The weighted average cost of the sellers' shares is nil for Archna Manocha and Manas Gupta (KRadhe Enterprises), ₹6.15 for the three other promoters, ₹18.11 for Amit Kumar Saraogi (Murli Janki Legacy Ventures) and ₹12.62 for the other two investor firms (DRHP p.1).

10Promoters

The promoters are Sanjay Manocha, Yogesh Sachdeva, Kartik Palta, Sukesh Arora, Archna Manocha, Mona Sachdeva, Charu Palta and Siddharth Manocha, who hold 87.00% before the issue (DRHP p.235). The document states that Sanjay Manocha and Archna Manocha are spouses (DRHP p.222). Its promoter group table lists Mona Sachdeva as the spouse of Yogesh Sachdeva, Charu Palta as the spouse of Kartik Palta, and Siddharth Manocha as the son of Sanjay Manocha and Archna Manocha (DRHP p.239).

Sanjay Manocha, 57, is Managing Director and has led the company since 2010 (DRHP p.221). Archna Manocha, 56, is Executive Director and Chief Financial Officer (DRHP p.221). Kartik Palta, 62, and Yogesh Sachdeva, 51, joined the board on January 1, 2025 and are Whole-Time Directors (DRHP p.221). Sukesh Arora, 50, left the board on June 25, 2025 and is Chief Operating Officer (DRHP p.236). Siddharth Manocha, 31, is Chief Business Officer and a designated partner of Organics Wipes LLP (DRHP p.237).

Pay: remuneration to the promoters was ₹0.71 crore in FY24 and ₹1.74 crore in FY26 (our arithmetic, DRHP p.73). Six relatives of directors were also paid ₹0.46 crore in FY26 (our arithmetic, DRHP p.73). Sanjay Manocha's current salary is ₹4.00 lakh a month (DRHP p.223).

Loans: the promoters lent the company ₹14.4 crore and were repaid ₹12.6 crore in FY26 (our arithmetic, DRHP p.73, DRHP p.74). Related-party loans of ₹3.4 crore were outstanding at March 31, 2026 (DRHP p.259). Archna Manocha and Mona Sachdeva rent the registered office to the company (DRHP p.202).

Other businesses: Organics Wipes LLP, where Siddharth Manocha is a designated partner, sold the company ₹3.4 crore of goods in FY24 and bought ₹3.6 crore from it (DRHP p.74). Sceptre Hygiene Private Limited, incorporated March 17, 2026 and in a similar line of business, is the group company; a non-compete was signed with it on July 27, 2026 (DRHP p.242, DRHP p.243). Two trademarks, Twittles and Babycozy, were assigned to the company from Organic Wipes LLP (DRHP p.311).

Cases: none against the promoters (DRHP p.294).

Promoter economics: Sanjay Manocha and Archna Manocha's shares cost nil on average; the other promoters bought at ₹80 a share in July 2024, and the document puts their average cost at ₹6.15 a share after the 12:1 bonus, and Siddharth Manocha's at ₹2.46 (DRHP p.91, DRHP p.103). A 16:1 bonus came in January 2019 and a 12:1 bonus in April 2026 (DRHP p.87, DRHP p.88).

11Who already owns it

Sceptre Medical promoter holding before and after the IPO

Source: DRHP p.95, DRHP p.100. There are 1,75,11,806 shares of ₹10 before the issue and 62 shareholders (DRHP p.86, DRHP p.93). If all 56,00,000 new shares are issued and 9,52,000 promoter shares are sold, the total becomes 2,31,11,806 shares and the promoters' 87.00% becomes about 61.8%, so 87.0% → 61.8% (our arithmetic, DRHP p.100). Promoters and promoter group together go from 87.12% to about 61.9%, so 87.1% → 61.9% (our arithmetic, DRHP p.100). The document leaves the after-issue holding blank (DRHP p.100).

Outside the promoter group, four partnership firms hold 1% or more: Murli Janki Legacy Ventures 2.23%, KRadhe Enterprises 2.16%, Radhesh Enterprises 2.00% and Wealth Creators 2.00% (DRHP p.95). They came in at ₹164 a share on August 18, 2025, before the 12:1 bonus (DRHP p.88). Shreem Advisors took 53,883 shares at ₹742 on December 2, 2025 (DRHP p.88). Public shareholders hold 12.88% in all (DRHP p.94).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹22.2 crore in FY24 to ₹67.9 crore in FY26 and profit after tax from ₹1.6 crore to ₹11.5 crore (DRHP p.70).
• Receivables: receivable days went from 77 in FY24 to 162 in FY26 (our arithmetic, DRHP p.69).
• Promoter pay went from ₹0.71 crore in FY24 to ₹1.74 crore in FY26 (our arithmetic, DRHP p.73).
• Borrowings went from ₹8.7 crore at March 2025 to ₹32.9 crore at March 2026 (DRHP p.69).
• Group restructuring: M. S. Medicals Private Limited bought for ₹4.5 crore with effect from April 1, 2025 (DRHP p.214); control of Sceptre Medical Devices Private Limited, 40% owned since July 2024, taken by board rights from March 30, 2026, with the other 60% held by four promoters who undertake to transfer it after a lock-in (DRHP p.256, DRHP p.213).
• Promoter share transfers: Sanjay Manocha and Archna Manocha transferred shares to the five other promoters at ₹80 on July 31, 2024 (DRHP p.91).
• Pre-IPO placements: 1,21,235 shares at ₹164 in August 2025 and 53,883 shares at ₹742 in December 2025, on ₹10 shares before the bonus (DRHP p.87).
• Bonus issue: 12:1, allotted April 8, 2026, 1,61,64,744 shares; the last allotment before the IPO (DRHP p.87).
• Auditor: RGMG & Co. resigned on November 20, 2025, citing shortage of staff, and Surender Kumar Singhal & Co. was appointed on December 22, 2025 (DRHP p.77).
• Conversion: the company became a public company with a fresh certificate dated January 21, 2026 (DRHP p.75).
• Board: three independent directors and a non-executive director joined in March 2026 (DRHP p.225).
• Land: the Liwan plot bought for ₹5.0 crore in January 2025 (DRHP p.201).
• Dividends: none in the last three years (DRHP p.244).

13Capacity and expansion

Source: DRHP p.192, DRHP p.117. Capacity is certified by Prateek Virmani, chartered engineer, on two shifts of eight hours and 300 days (DRHP p.193). The Liwan plant is to add eight injection moulding machines, clean rooms, sterilisation and bottling lines (DRHP p.108). The document gives no capacity for the new plant in units, so the step from capacity to revenue cannot be made here. The existing plants are on 625, 450 and 312.50 sq. mtrs. (DRHP p.178, DRHP p.179).

14Market size and industry structure

Sceptre Medical industry: market size and growth

As claimed: the industry chapter is drawn from "Healthcare Industry w.r.t Medical Devices, Infection Control and Health & Hygiene products" by Infomerics Analytics and Research Private Limited, issued August 24, 2026, which the company commissioned for the offer (DRHP p.138). The commissioned report does not give a rupee size for the Indian medical devices market. It quotes the Department of Pharmaceuticals Report 2025-26 for an expected growth rate of about 15% a year, and says India is the fourth-largest medical devices market in Asia (DRHP p.153).

The part that is addressable: the company sells antiseptics, disinfectants, wipes and single-use devices for dialysis and intensive care (DRHP p.165). The closest figure in the chapter is production of antiseptics and disinfectants in India, from CMIE: ₹130.1 crore in FY2020, ₹174.7 crore in FY2024 and ₹182.5 crore in FY2025, with FY2026 estimated at ₹68.7 crore (DRHP p.155). That is about 7.0% a year from FY2020 to FY2025 (our arithmetic, DRHP p.155). The chapter does not size wipes, dialysis catheters or hemodialysis machine leasing in India.

What the company is today: FY26 infection control revenue of ₹27.1 crore is about 14.8% of the FY2025 national production figure (our arithmetic, DRHP p.26, DRHP p.155). This compares company sales with national production in a different year, and is not a market share.

Size over time: India's medical device exports rose from USD 2,532 million in FY2021 to USD 4,014 million in FY2025, and imports from USD 6,242 million to USD 8,822 million, a trade deficit of USD 4,808 million (DRHP p.154). FDI into medical devices rose from ₹1,545 crore in FY2022 to ₹5,253 crore in FY2025 (DRHP p.153). Completed healthcare projects were worth ₹3,367.3 crore in FY2022 and ₹7,381.2 crore in FY2025, and hospital beds added were 14,187 and 23,012 (DRHP p.152). The report projects that project completions and bed additions will moderate over FY2026 to FY2028 (DRHP p.152).

Segments: consumables and disposables were 46.42% of India's medical device exports but only 19.49% of imports, where electro-medical equipment was 59.90% (DRHP p.154, DRHP p.155). Globally, the report puts personal wipes at 57.95% of the wipes market, disinfectant wipes at 23.19% and industrial wipes at 18.85% (DRHP p.151). Within disinfectant wipes, healthcare was 34.2% of use in 2025, homes 26.5% and commercial users 19.8% (DRHP p.157). The company sits in consumables, disinfectant wipes and dialysis devices.

What drives demand: the report names hygiene awareness, single-use products, home and outpatient care, an ageing population, chronic disease, infection control after COVID-19, more surgery and diagnostics, hospital building and regulatory support, rated over one to seven years (DRHP p.157, DRHP p.158). Government support includes a PLI scheme of ₹3,420 crore, up to ₹100 crore per medical device park, a ₹500 crore scheme to strengthen the industry and ₹5,000 crore for research under PRIP (DRHP p.160, DRHP p.161).

Structure: the report calls the market increasingly competitive, with global players in advanced devices and volume-driven competition in wipes (DRHP p.163). Barriers it lists are regulation, capital, technical skill, brand trust and price pressure from hospitals (DRHP p.164). The chapter names no competitor. The business chapter names Hemant Surgical Industries Ltd, Ginni Filaments Limited and Shree Pacetronix Limited, and says much of the market is unorganised (DRHP p.199).

Inputs and trade: the report lists import dependence for advanced devices, electronic parts and specialty chemicals, and volatile prices for polymers, nonwovens and chemicals (DRHP p.159, DRHP p.160). The company imported 0.34% of its FY26 purchases (DRHP p.195).

Rules: medical devices are regulated by CDSCO under the Medical Device Rules, 2017, in risk classes A to D (DRHP p.204). The company holds drug manufacturing licences in Form 25 and a licence for Class A and B devices, and Sceptre Medical Devices holds a licence for Class C and D devices (DRHP p.300, DRHP p.304). Certificates under the Legal Metrology Act for two plants are applied for (DRHP p.306, DRHP p.307).

What the chapter says can go wrong: price pressure, import dependence, regulatory complexity, supply chain and raw material costs, and waste rules for disposable products (DRHP p.159). The risk factors add possible price controls on medical devices (DRHP p.43). The company says its business is not seasonal (DRHP p.292).

15Competitive position

Sceptre Medical competitors

Source: DRHP p.128, DRHP p.129, converted from ₹ lakh. The document does not say what each peer makes or where it competes with the company.

What the company puts forward: experienced promoters, a customer base of hospitals, distributors and government buyers, a wide product range and a distribution network of 535 distributors with a sales team of 15 (DRHP p.188, DRHP p.191, DRHP p.189). It holds ISO 9001, ISO 13485 and ISO 22716 certificates (DRHP p.190). Against that: no long-term customer contracts, written agreements with 20 of its distributors, 84.66% of domestic sales from the North zone and all plants in one district (DRHP p.34, DRHP p.28, DRHP p.30, DRHP p.33).

16Peers the company named

Peers named in the offer document: Ginni Filaments Limited, Hemant Surgical Industries Limited, Shree Pacetronix Limited (DRHP p.127).

The document gives their P/E at September 18, 2026 closing prices as 9.80 for Ginni Filaments, 27.78 for Hemant Surgical Industries and 18.82 for Shree Pacetronix, an average of 18.80 (DRHP p.126, DRHP p.127). Ginni Filaments is about five times the company's FY26 revenue and Hemant Surgical about three times; Shree Pacetronix is about a third of it (our arithmetic, DRHP p.128, DRHP p.129). The company's FY26 EPS is ₹6.99 on ₹10 shares after the bonus (DRHP p.125). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Sceptre Medical IPO risks

Financial: cash and receivables: operating cash flow of −₹1.9 crore in FY26 while profit was ₹11.5 crore (DRHP p.71, DRHP p.70) → profit not yet collected cannot fund growth → receivables rose to ₹30.2 crore, ₹9.5 crore of it more than six months old (DRHP p.69, DRHP p.270).

Promoters: group restructuring: M. S. Medicals was bought from the promoter group in a deal not at arm's length, and the devices maker is only 40% owned (DRHP p.256, DRHP p.214) → part of the FY26 growth is consolidation, and 60% of Sceptre Medical Devices still belongs to four promoters → M. S. Medicals alone was 20.48% of FY26 profit (DRHP p.277).

Financial: debt: borrowings rose from ₹8.7 crore to ₹32.9 crore in FY26 (DRHP p.69) → more interest and loans repayable on demand → the issue repays only ₹4.0 crore (DRHP p.106), and some unsecured loans carry 14.80% and 15.25% (DRHP p.281).

Customers and regions: the North zone was 84.66% of FY26 domestic revenue and Delhi alone 50.97% (DRHP p.30, DRHP p.27) → a regional setback would hit most of the revenue → no customer has a long-term contract (DRHP p.34).

Regulation: filings and approvals: 36 late filings with the Registrar of Companies, two of them over 1,600 days late, and delayed GST, ESIC and EPF payments (DRHP p.39, DRHP p.40, DRHP p.44) → penalties are possible → the Liwan building was started before its Consent to Establish (DRHP p.41).

Issue-specific: the new plant: no orders placed, ₹15.0 crore of the capex is for hemodialysis machines, and production is planned for June 2027 (DRHP p.114, DRHP p.110, DRHP p.117) → cost overruns are to be met from accruals or loans (DRHP p.114) → the capex object is ₹31.5 crore (DRHP p.106).

Promoters: related firms: Organics Wipes LLP and Sceptre Hygiene Private Limited are in similar business (DRHP p.74, DRHP p.243) → business could move between them → a non-compete with Sceptre Hygiene was signed only in July 2026 (DRHP p.243).

18Litigation and regulatory matters

Cases against Sceptre Medical and its promoters

Criminal: none by or against the company, promoters, directors, key managerial personnel or subsidiaries (DRHP p.294, DRHP p.295, DRHP p.296). Regulatory: no actions by statutory or regulatory authorities (DRHP p.294). Tax: no outstanding tax proceedings listed for the company (DRHP p.294). Corporate law: 36 delayed or incorrect ROC filings, the longest a deposit return filed 2,046 days late, with no ROC action so far (DRHP p.38, DRHP p.39). Material creditors: one, owed ₹0.59 crore (DRHP p.296).

19Related-party transactions

Source: DRHP p.73, DRHP p.74, converted from ₹ lakh; totals are our arithmetic. Rent paid to Archna Manocha and Mona Sachdeva was ₹0.08 crore in FY26 (DRHP p.74). Sceptre Hygiene Private Limited owed the company ₹0.18 crore at March 31, 2026 (DRHP p.74). The company says its related-party transactions are at arm's length (DRHP p.273).

What appeared or changed in the two years before filing: the July 2024 share transfers among promoters, the 40% stake in Sceptre Medical Devices from July 2024, the purchase of M. S. Medicals from April 2025, salaries for six relatives of directors from FY26, and much larger promoter loans in FY26 (DRHP p.91, DRHP p.256, DRHP p.73).

20What the offer document does not say

Customers are not named. Prices and units sold are not given, so growth cannot be split into volume and price. Profit by product group is not given. M. S. Medicals' revenue and the proforma combined figures for FY26 cannot be read from the filed text (DRHP p.256). The Indian market for the company's own products is not sized. What the three named peers make is not described. The capacity of the new Liwan plant is not given in units. No order book is disclosed. The issue size, price band, general corporate purposes and offer expenses are blank (DRHP p.106). The after-issue shareholding is blank (DRHP p.100).

Some inconsistencies are recorded as document matters, not business ones: the history table says both subsidiaries were acquired in 2026, while the notes date M. S. Medicals from April 1, 2025 (DRHP p.212, DRHP p.256); risk factor 38 says 15.96% of FY26 revenue was in US dollars while exports were 1.60% (DRHP p.49, DRHP p.167);

return on equity is 35.95% in the KPI table, 38.40% in the ratio note and 50.94% as RoNW (DRHP p.128, DRHP p.276, DRHP p.126); the FY25 third and fourth customers are in a different order on two pages (DRHP p.34, DRHP p.177); the promoter chapter says promoters are not in similar businesses while the group company chapter says Sceptre Hygiene has common pursuits (DRHP p.238, DRHP p.243);

and one page says no monitoring agency is needed because the fresh issue is under ₹50 crore while another says one will be appointed (DRHP p.79, DRHP p.123).

21Five questions for management

1. What were M. S. Medicals' revenue and profit in FY25, before it was bought, and how much of FY26 revenue of ₹67.9 crore came from it?
2. Why did the top ten customers fall from 76.93% of revenue in FY25 to 34.08% in FY26, and were any FY25 customers group companies?
3. Of the ₹30.2 crore of receivables at March 31, 2026, how much has been collected since, and from which channel are the ₹3.2 crore older than a year?
4. At what price, and on what terms, will the four promoters transfer their 60% of Sceptre Medical Devices to the company?
5. What utilisation do the 200 hemodialysis machines need to cover their own depreciation and interest, and what consumables revenue does each machine bring?

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.