Solanki Mechanic Works Limited IPO

01At a glance

What the company does: designs and builds computer controlled (CNC) and programmable logic controlled (PLC) machines that facet, cut and shape jewellery such as bangles, rings, chains, balls, beads, strips and pipes, at one plant in Paddhari taluka, Rajkot (DRHP p.183, DRHP p.201).

Who pays it: jewellery manufacturers in India and in more than 15 countries; 132 customers in FY26 (DRHP p.183, DRHP p.186). The largest customer brought 14.30% of FY26 revenue, the top five 41.47% and the top ten 55.57% (DRHP p.186). Two promoter group firms, Soliyo Designs LLP and Sintrizen Technologies Private Limited, bought ₹4.8 crore of machines between January 4 and March 31, 2026 (DRHP p.56, DRHP p.321).

Why it is raising money: ₹13.6 crore for a new factory building on Plot 55 and 56 at Amreli village, ₹8.2 crore for CNC machines to add capacity, ₹4.1 crore for fabrication machines and ₹6.0 crore for working capital; the general corporate purposes amount is blank (DRHP p.112). There is no offer for sale (DRHP p.1).

How fast it has grown: revenue from ₹30.3 crore in FY24 to ₹28.7 crore in FY26, about 2.8% a year lower, and profit after tax from ₹4.6 crore to ₹5.0 crore, about 3.9% a year higher (our arithmetic, DRHP p.36, DRHP p.68).

The one thing to understand: the last quarter of FY26 looks very different from the rest. In the company's first period, January 4 to March 31, 2026, the EBITDA margin was 30.08% against 23.25% in the nine months before (DRHP p.141); employee cost was ₹0.14 crore against ₹1.9 crore, because the partners' pay of ₹1.3 crore stopped (DRHP p.272); a third of that quarter's revenue, ₹4.8 crore, was sales to two promoter group firms (DRHP p.321); and operating cash flow was −₹12.3 crore (DRHP p.70).

02The business, in plain words

What Solanki Mechanic Works does

Solanki Mechanic Works designs, makes, installs and services jewellery making machines (DRHP p.183). Faceting means cutting many small flat faces into metal so that it catches light; the machines do this to bangles, rings, chains, balls, beads, strips, wires and pipes (DRHP p.193). The range (DRHP p.193 to DRHP p.200):

• Faceting machines: diamond faceting machines for bangles and rings, ball chain, single ball, chain, pipe and strip faceting machines, and fancy round cut machines.
• Forming and lathe machines: bangle forming machines and auto lathes for jewellery findings and posts.
• After sales: installation, operator training, maintenance and spare parts (DRHP p.200, DRHP p.201).

A jewellery maker orders a machine for a product it makes → the company designs and machines the parts, assembles, wires and tests the machine at Rajkot → it installs the machine and trains the operators → it is paid for the machine, and later for spares and maintenance (DRHP p.202, DRHP p.203, DRHP p.200).

The business began in 1962 as a partnership firm making chain-making machines, bought its first CNC machine and made its first export sale in Dubai in 2006 (DRHP p.219). Solanki Mechanic Works Private Limited was incorporated on April 1, 2025, took over the firm's business under a business transfer agreement dated January 8, 2026 with effect from January 3, 2026, and became a public company on April 20, 2026 (DRHP p.82).

The plant is at R.K. Industrial Land, Village Nani Amreli, Paddhari, Rajkot, on land owned by three of the promoters and leased to the company (DRHP p.46, DRHP p.288). A sales office in Kandivali East, Mumbai is licensed from July 1, 2026 (DRHP p.46). The company had 95 full-time employees at August 31, 2026, 59 of them in production (DRHP p.209).

Earnings equation: Revenue = machines sold × price per machine + spares and maintenance. The document gives neither the number of machines sold nor prices; it measures capacity in kilograms of machine parts processed on its CNC machines (DRHP p.119, DRHP p.204).

03Where the money comes from

By product (₹ crore):

Source: DRHP p.200, converted from ₹ lakh; the last two rows add the document's lines together (our arithmetic). Autolathe machines went from 0.66% of revenue in FY24 to 21.67% in FY26, and bangle and ring machines from 47.47% in FY25 to 26.50% (DRHP p.200).

By place: domestic sales were 77.45% of FY24 revenue and 84.72% of FY26 revenue; exports fell from 22.67% in FY25 to 15.08% in FY26 (DRHP p.44, DRHP p.45). Gujarat brought 35.85% of FY26 revenue against 10.81% in FY25, and Maharashtra 31.58% against 44.40% (DRHP p.44). The UAE was the largest export market at 6.22% of FY26 revenue (DRHP p.45). In the company's own quarter, January 4 to March 31, 2026, exports were ₹0.60 crore, 4.19% of that quarter's revenue (DRHP p.311).

Solanki Mechanic Works customers: how concentrated the revenue is

Source: DRHP p.186. Revenue depends on a group of customers more than on any one: the largest brought ₹4.1 crore in FY26, and the top ten ₹15.9 crore (DRHP p.186). The table does not name the customers. Sales are on purchase orders with no commitment to take minimum quantities (DRHP p.34). Of 132 customers in FY26, 76 were repeat customers bringing 44.09% of revenue (DRHP p.186). The document states that the company lost none of its top five customers in FY24 to FY26 (DRHP p.33).

Related parties: sales to Soliyo Designs LLP of ₹3.6 crore and to Sintrizen Technologies Private Limited of ₹1.3 crore were made between January 4 and March 31, 2026 (DRHP p.56); together ₹4.8 crore, about 33.4% of that quarter's revenue (our arithmetic, DRHP p.321, DRHP p.68).

On the supply side, the largest supplier was 15.38% of FY26 purchases and the top ten 55.35% (DRHP p.186).

04The growth record

Solanki Mechanic Works financials: revenue, profit and margins

Source: DRHP p.36, DRHP p.66, DRHP p.68, DRHP p.70, DRHP p.141, converted from ₹ lakh. FY26 adds the firm's period to January 3, 2026 and the company's period from January 4 (our arithmetic). Revenue was ₹30.3 crore in FY24, ₹30.3 crore in FY25 and ₹28.7 crore in FY26 (DRHP p.36). Profit after tax was ₹4.6 crore in FY24 and ₹5.0 crore in FY26 (DRHP p.68, DRHP p.302).

The document gives RoE and RoCE only for each FY26 period: 36.73% and 19.82% to January 3, 2026, 58.94% and 20.75% for January 4 to March 31, not annualised (DRHP p.141). Net worth at March 31, 2026 is the company's; earlier years are partners' capital (DRHP p.66).

Our arithmetic over FY24 to FY26: revenue fell about 2.8% a year (our arithmetic, DRHP p.36), profit after tax grew about 3.9% a year (our arithmetic, DRHP p.68), and EBITDA grew about 1.6% a year (our arithmetic, DRHP p.141). EBITDA margin moved from 24.41% to about 26.7%, up about 226 basis points, so 24.4% → 26.7% (our arithmetic, DRHP p.141). Revenue fell 5.86% in FY26 (DRHP p.313).

The year ends on March 31 throughout. FY24 and FY25 profit is after partners' remuneration and interest to partners (DRHP p.68). Restatement cut profit sharply in the firm's years, mainly because tax the firm had charged to partners' capital was put through the profit and loss: audited profit after tax was ₹6.7 crore for FY24 and ₹5.2 crore for FY25 against restated ₹4.6 crore and ₹3.6 crore (DRHP p.266). The restated profit and loss statement prints FY24 revenue as ₹30.2 crore while every other table prints ₹30.3 crore (DRHP p.68, DRHP p.141).

What sits around the record:

• Cash: operating cash flow was ₹2.2 crore from April 1, 2025 to January 3, 2026 and −₹12.3 crore from January 4 to March 31, 2026, so −₹10.1 crore for FY26 (our arithmetic, DRHP p.70). In the company's quarter, inventory of ₹10.9 crore and receivables of ₹10.5 crore were shown as cash used (DRHP p.70).
• Other income was ₹0.24 crore in FY26 against profit before tax of ₹6.6 crore, so about 3.6% (our arithmetic, DRHP p.276); it is mostly interest on fixed deposits (DRHP p.276).
• Debt: borrowings were ₹12.9 crore at March 31, 2026, debt to equity 1.80, so 1.8× (DRHP p.298). Net of ₹1.6 crore of cash and bank balances, that is about 1.5× FY26 EBITDA (our arithmetic, DRHP p.298, DRHP p.67, DRHP p.141). Of the borrowings, ₹5.1 crore were unsecured loans from directors (DRHP p.269).
• Customers and suppliers: the largest customer was 14.30% of FY26 revenue, so 14.3% rounded, the top five 41.47%, so 41.5%, and the top ten 55.57%, so 55.6% (DRHP p.186); the top ten suppliers were 55.35% of FY26 purchases, so 55.4% (DRHP p.186).
• Related parties: sales to promoter group entities were ₹4.8 crore between January 4 and March 31, 2026 (DRHP p.321).
• Receivables: trade receivables were ₹10.5 crore at March 31, 2026 against ₹0.32 crore at March 31, 2024 (DRHP p.67); receivable days 4 in FY24 and 133 in FY26 (DRHP p.131).
• Contingent liabilities: none (DRHP p.72).
• Capacity: CNC capacity utilisation was 69.73% in FY26, so 69.7% rounded (DRHP p.204).
• Pay: partners' and directors' remuneration was ₹0.55 crore in FY24, ₹1.7 crore in FY25 and ₹1.34 crore in FY26 (DRHP p.272, DRHP p.314).
• Rent: the plant, rent free until now, is leased from three promoters at ₹4,50,000 a month for nine years from September 1, 2026, about ₹0.54 crore a year (our arithmetic, DRHP p.46).
• Cases: none against the promoters (DRHP p.327).
• Use of the issue: ₹13.6 crore for the new factory building, ₹8.2 crore for machinery to expand capacity and ₹6.0 crore for working capital (DRHP p.112).

05What the growth is made of

Revenue fell ₹1.7 crore from FY24 to FY26 (our arithmetic, DRHP p.36). By product (our arithmetic, DRHP p.200):

• Autolathe machines: up ₹6.0 crore, from ₹0.20 crore to ₹6.2 crore.
• Strip faceting machines: up ₹1.7 crore.
• Ball and beads faceting machines: up ₹0.87 crore.
• Bangles and rings faceting machines: down ₹4.4 crore, from ₹12.0 crore to ₹7.6 crore.
• Ball chain faceting machines: down ₹2.9 crore.
• Wire and pipe faceting machines: down ₹2.7 crore.

Volume, read from production: kilograms processed on the CNC machines rose from 91,905 in FY24 to 98,670 in FY25 and 1,04,595 in FY26 (DRHP p.204), while revenue fell. Kilograms processed are parts made, not machines sold, so this does not separate price from mix.

The document gives no quantities sold and no prices, so the change in revenue cannot be split into volume and price. That is the finding. The management discussion says increases in revenue in FY25 and FY26 were due to volume and a wider customer base rather than higher prices (DRHP p.324), although FY26 revenue fell; it adds that 56 new customers were added in FY26 and that autolathe, bangle and ring, and strip machines carry better margins (DRHP p.313, DRHP p.314).

06Earnings quality

The item that needs explaining is the company's first quarter. From January 4 to March 31, 2026 revenue was ₹14.4 crore and EBITDA ₹4.3 crore, a 30.08% margin, against ₹14.3 crore and ₹3.3 crore for the nine months before (DRHP p.141). Employee cost in the quarter was ₹0.14 crore, of which directors' remuneration ₹0.02 crore, against ₹1.9 crore including ₹1.3 crore of partners' remuneration in the nine months (DRHP p.272).

The new pay terms start from June 1, 2026: ₹1,10,000 a month for the Managing Director and ₹1,00,000 a month for the Whole-time Director (DRHP p.227), and plant rent from September 1, 2026 (DRHP p.46). In the same quarter ₹4.8 crore of sales went to Soliyo Designs LLP and Sintrizen Technologies Private Limited (DRHP p.56), and ₹5.4 crore was owed by them at March 31, 2026 (DRHP p.58).

Soliyo Designs LLP was incorporated in December 2024 and shows no revenue for FY25 (DRHP p.249).

On the books against the bank: the stock reported to ICICI Bank was ₹4.8 crore lower than the books for the quarter ended December 2025 and ₹2.8 crore lower for March 2026; the document puts the gap down to provisional data and classification (DRHP p.292).

07The balance sheet

At March 31, 2026 total assets were ₹28.1 crore, the figure the management discussion uses; the balance sheet prints the total as ₹28.6 crore though its lines add to ₹28.1 crore (DRHP p.67, DRHP p.318). They were: inventories ₹10.9 crore, trade receivables ₹10.5 crore, property, plant and equipment ₹3.0 crore, cash and bank ₹1.6 crore, other current assets ₹1.0 crore and other non-current assets ₹0.56 crore (DRHP p.67).

Against them: short-term borrowings ₹7.7 crore, long-term borrowings ₹5.2 crore, trade payables ₹4.7 crore, other current liabilities ₹2.5 crore, provisions ₹0.75 crore and net worth ₹7.2 crore (DRHP p.66, DRHP p.67). Other current liabilities include ₹1.4 crore of statutory dues and ₹1.1 crore of customer advances (DRHP p.270). A ₹1.1 crore fixed deposit is under lien to SIDBI (DRHP p.271).

Borrowings of ₹12.9 crore were: ICICI Bank cash credit ₹6.4 crore at 8.15%, current maturities ₹1.4 crore, and long-term loans ₹5.2 crore, of which ₹5.1 crore unsecured from directors and ₹0.10 crore vehicle loans (DRHP p.269, DRHP p.270, DRHP p.285). The cash credit is guaranteed by eleven promoter and promoter group members and secured on three residential properties (DRHP p.285). At August 31, 2026 borrowings were ₹10.0 crore: ₹5.4 crore secured and ₹4.6 crore unsecured from related parties (DRHP p.299).

Source: DRHP p.112, DRHP p.298. The capitalisation statement leaves the post-issue column blank (DRHP p.298). None of the issue money is for repaying loans (DRHP p.112).

The company owns no land. The plant at Plot Nos. 51 to 56 is owned by Nira Brijesh Solanki, Jaisal Nipulbhai Solanki and Naman Manojbhai Solanki (DRHP p.288). In FY25 the firm sold property to these three for ₹1.2 crore each (DRHP p.57), received ₹6.3 crore from sale of property, plant and equipment, and removed ₹3.6 crore of factory land from its books (DRHP p.70, DRHP p.275). The company owns two GIDC sheds in Rajkot that are leased to Sintrizen Technologies Private Limited and Soliyo Designs LLP (DRHP p.210).

08What the money is for

Solanki Mechanic Works IPO objects: what the money is for

Source: DRHP p.112. The four named objects add to ₹31.9 crore (our arithmetic, DRHP p.112). The rupee size of the fresh issue depends on a price not yet set (DRHP p.112).

New facility, ₹13.6 crore: a factory building of about 1,837.36 square metres, priced on a single quotation from Lintel Construction dated August 30, 2026 (DRHP p.127); ₹10.0 crore is scheduled for FY27 and ₹3.6 crore for FY28 (DRHP p.113). Non-agricultural use permission was issued on June 7, 2023 and the building plan is applied for at the gram panchayat (DRHP p.120).

The document states that the promoters have no interest in any transaction for acquisition of land or construction of buildings (DRHP p.244), and the plant lease covers Plot Nos. 51 to 56 owned by three promoters (DRHP p.288). Read from the filing: Plots 55 and 56 fall within the land the company leases from those promoters; the document does not say who will own the building.

Capacity machinery, ₹8.2 crore: eleven CNC machining and turning centres from Jyoti CNC Automation Limited, on quotations dated September 2026 valid for 90 days (DRHP p.114 to DRHP p.118). Jyoti CNC Automation Limited is also one of the three listed peers the document names (DRHP p.140).

Backward integration, ₹4.1 crore: press brakes and turret punch presses to bring fabrication and punching in-house; the company estimates this will cut the related processing cost by about 40% to 50% (DRHP p.120). No orders have been placed (DRHP p.126).

Working capital, ₹6.0 crore: ₹3.0 crore in each of FY27 and FY28 (DRHP p.113). The requirement rests on holding periods the board has projected for FY27 and FY28 (DRHP p.131).

The objects have not been appraised by any bank or financial institution, and no monitoring agency will be appointed because the issue is below ₹50 crore (DRHP p.135). ₹0.09 crore of issue expenses had been spent by September 28, 2026 (DRHP p.135).

Into the business the fresh issue of up to 25,92,727 shares, at a price not yet set (DRHP p.1). To selling shareholders nothing: there is no offer for sale (DRHP p.1).

09Who is selling

Solanki Mechanic Works IPO offer for sale: who is selling

Nobody. The whole issue is a fresh issue of up to 25,92,727 shares of ₹10, and the offer for sale column reads "N.A." (DRHP p.1, AP p.1). The promoters and promoter group will not take part in the issue and will receive nothing from it (DRHP p.111).

10Promoters

The promoters are Solanki Nira Brijesh, Solanki Jaisal Nipulbhai, Solanki Nipul Hasmukhbhai and Solanki Naman Manojbhai (DRHP p.242). Solanki Nira Brijesh and Solanki Naman Manojbhai are the original promoters; the board named all four on August 10, 2026 (DRHP p.243). The document states that Solanki Nipul Hasmukhbhai is the father of Solanki Jaisal Nipulbhai, that Solanki Manojbhai Hasmukhbhai is the father of Solanki Naman Manojbhai, that the two fathers are brothers, and that both are brothers of Solanki Nira Brijesh's late spouse (DRHP p.226, DRHP p.246).

• Solanki Naman Manojbhai, 33, Managing Director, B.Tech in electronics and communication, eight years of experience, earlier plant head of the firm (DRHP p.223, DRHP p.225).
• Solanki Jaisal Nipulbhai, 27, Whole-time Director since June 1, 2026, diploma in programmer analyst from Herzing College, Montreal, about one year of experience, earlier the firm's sales and marketing head (DRHP p.223, DRHP p.225, DRHP p.38).
• Solanki Nira Brijesh, 48, Executive Director, secondary education, four years of experience in inventory and procurement (DRHP p.223, DRHP p.225).
• Solanki Nipul Hasmukhbhai, Purchase Head since June 1, 2026, over 18 years of experience (DRHP p.240).

Holdings: the promoters hold 36,03,152 shares, 59.56%, and the promoter group 24,46,544 shares, 40.44% (DRHP p.103).

Pay: FY26 compensation, partners' remuneration plus directors' remuneration, was ₹0.15 crore for Solanki Naman Manojbhai and ₹0.13 crore each for Solanki Jaisal Nipulbhai and Solanki Nira Brijesh (DRHP p.228). Partners' and directors' remuneration in all was ₹0.55 crore in FY24 and ₹1.34 crore in FY26 (DRHP p.272, DRHP p.314).

Loans and property: directors' unsecured loans to the company stood at ₹5.1 crore at March 31, 2026 (DRHP p.269); loans taken in the company's quarter were ₹2.6 crore from Solanki Nira Brijesh, ₹1.5 crore from Solanki Jaisal Nipulbhai and ₹1.4 crore from Solanki Naman Manojbhai (DRHP p.56). The same three own the plant land and lease it to the company at ₹4,50,000 a month for nine years from September 1, 2026 (DRHP p.46). The registered office is provided by Solanki Nipul Hasmukhbhai at no rent (DRHP p.46). Promoters and promoter group members guarantee the ICICI Bank cash credit of ₹11.9 crore (DRHP p.50).

Other businesses: the promoter group includes Samyak Lifestyles Private Limited (gold and studded jewellery, FY25 revenue ₹303.1 crore), Sintrizen Technologies Private Limited (metal parts and additive manufacturing, FY25 revenue ₹2.1 crore), Soliyo Designs LLP (silver jewellery, incorporated December 2024), Zayen PT LLP (gold and platinum jewellery, FY25 revenue ₹16.9 crore), three Weldor entities and four HUFs (DRHP p.247 to DRHP p.250). Solanki Naman Manojbhai left Soliyo Designs LLP on May 15, 2025 and stepped down as whole-time director of Sintrizen Technologies Private Limited on August 31, 2026, staying a director (DRHP p.245). The document calls these businesses complementary and states there is no conflict of interest (DRHP p.250).

Cases: none against the promoters (DRHP p.327). No promoter shares are pledged (DRHP p.104).

Promoter economics: the 1,00,000 subscriber shares were taken at ₹10 in March 2025; 2,78,106 shares were allotted at ₹143.83 on February 19, 2026 as payment for the partnership business, not for cash; a 15 for 1 bonus followed on September 8, 2026 (DRHP p.95, DRHP p.97). The weighted average cost of acquisition is ₹6.74 a share for Solanki Nira Brijesh, ₹8.99 for Solanki Jaisal Nipulbhai, ₹3.68 for Solanki Nipul Hasmukhbhai and ₹6.24 for Solanki Naman Manojbhai (DRHP p.101). On August 25, 2026 Solanki Nira Brijesh gifted 33,315 shares to Solanki Nipul Hasmukhbhai and 8,342 shares to Solanki Manojbhai Hasmukhbhai (DRHP p.105).

11Who already owns it

Solanki Mechanic Works promoter holding before and after the IPO

Source: DRHP p.101, DRHP p.103; the after-issue column is our arithmetic. There are 60,49,696 shares of ₹10 before the issue and ten shareholders (DRHP p.64, DRHP p.110). If all 25,92,727 new shares are issued the total becomes 86,42,423 shares (our arithmetic, DRHP p.64, DRHP p.1), and the promoters' 59.56% becomes about 41.7%, so 59.6% → 41.7% (our arithmetic, DRHP p.103). Promoters and promoter group together go from 100% to about 70.0% (our arithmetic, DRHP p.100). The document leaves the after-issue percentages blank (DRHP p.103).

The promoter group holders are Solanki Nilpa Manojbhai 6,05,600, Manojbhai Hasmukhbhai Solanki 5,69,392, Namrata Maheshkumar Vaghela 4,35,904, Mayuri Nipulbhai Solanki 3,75,552, Vanshi Nipulbhai Solanki 3,69,328 and Yashashvi Brijeshbhai Solanki 90,768 (DRHP p.103). No fund or company holds shares (DRHP p.100). Twenty per cent of the post-issue capital held by the promoters is to be locked in for three years (DRHP p.106).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹30.3 crore in FY24 to ₹28.7 crore in FY26 (DRHP p.36) and profit after tax from ₹4.6 crore to ₹5.0 crore (DRHP p.68, DRHP p.302).
• Receivables: 4 days of revenue in FY24 and 133 days in FY26 (DRHP p.131).
• Incorporation and takeover: the company was incorporated on April 1, 2025 and took over the partnership business with effect from January 3, 2026 for a lump sum of ₹4.0 crore (DRHP p.219); net assets taken over were ₹21.9 crore (DRHP p.288).
• Allotment: 2,78,106 shares at ₹143.83, ₹8.99 after the bonus (our arithmetic, DRHP p.97), on February 19, 2026, as consideration for the business (DRHP p.97).
• Bonus issue: 15 shares for every one held, 56,71,590 shares, allotted September 8, 2026 (DRHP p.97).
• Public company: converted with a fresh certificate dated April 20, 2026 (DRHP p.82).
• Land and lease: property sold to three promoters in FY25 for ₹1.2 crore each (DRHP p.57); the plant, rent free under no-objection letters (DRHP p.81), is leased from them at ₹4,50,000 a month from September 1, 2026 (DRHP p.46).
• Related-party sales: ₹4.8 crore to promoter group entities between January 4 and March 31, 2026 (DRHP p.321).
• Owners' loans: ₹5.5 crore lent by three promoters in the company's quarter (DRHP p.56).
• Pay: partners' and directors' remuneration ₹0.55 crore in FY24 and ₹1.34 crore in FY26 (DRHP p.272, DRHP p.314).
• Board and officers: three independent directors, a Whole-time Director, a CFO and a company secretary were appointed on June 1, 2026; Namrata Maheshkumar Vaghela and Manoj Hasmukhbhai Solanki resigned as executive directors the same day (DRHP p.323).
• Auditor: R K Doshi & Co LLP, appointed on incorporation, with no change since (DRHP p.90); the restated statements are signed by a different peer review auditor, NGST & Associates (DRHP p.37).
• Pre-IPO placement: none; the only issuance in the 18 months before filing, other than the bonus, is the ₹143.83 allotment (DRHP p.144).
• Dividend: none in the three years before filing (DRHP p.252).

13Capacity and expansion

Source: DRHP p.204, DRHP p.119, DRHP p.127. Utilisation was 61.27% in FY24 and 65.78% in FY25, as certified by a chartered engineer (DRHP p.204). Capacity is measured as the weight of machine parts that the CNC machines can process in a year (DRHP p.119).

The issue-funded CNC machines are to take capacity to 3,00,000 kg (DRHP p.119). Orders are to be placed within 30 days of receiving issue money, delivery to take 90 to 120 days, installation 30 days after the building is ready, and production to start 15 days after that (DRHP p.126, DRHP p.127). The document does not say how many machines the added kilograms would make. The step from capacity to revenue cannot be made from the filing.

14Market size and industry structure

Solanki Mechanic Works industry: market size and growth

As claimed: the chapter comes from the "Report on jewellery making machine industry" dated September 28, 2026 by Dun & Bradstreet Information Services India Private Limited, commissioned and paid for by the company for the issue (DRHP p.147, DRHP p.52). The commissioned report does not give a size for the jewellery making machinery market in India.

It sizes the Indian jewellery market, which it calls the main source of demand, at about US$67 billion in CY2023 and nearly US$84 billion in CY2025, about 12% a year (DRHP p.164). It also gives India's trade in jewellery manufacturing machinery: imports of ₹10,239.8 crore in FY 2021-22 rising to ₹25,051.8 crore in FY 2025-26, and exports of ₹4,676.7 crore rising to ₹6,963.5 crore (DRHP p.170).

Those trade figures are drawn from HS codes 84798999 and 84799090 (DRHP p.174), which the chapter does not limit to jewellery machines.

The part that is addressable: the company sells faceting, forming and lathe machines, which fall within what the commissioned report calls finishing and precision manufacturing equipment and forming equipment (DRHP p.163). Its buyers are jewellery makers in clusters such as Rajkot, Mumbai, Surat, Jaipur and Coimbatore (DRHP p.176). The report does not size this part.

What the company is today: FY26 revenue of ₹28.7 crore, of which exports ₹4.3 crore (DRHP p.36, DRHP p.45). With no market size for its products, this study does not work out a market share.

Size over time: by the commissioned report's figures, India's imports of jewellery manufacturing machinery grew about 144.7% over five years while exports grew about 48.9%, and imports were about 3.6 times exports in FY 2025-26 against 2.2 times in FY 2021-22 (DRHP p.170, DRHP p.171). The report projects the Indian jewellery market at about US$118.1 billion by CY2028 from US$84.1 billion in CY2025 (DRHP p.173), and quotes an industry report projecting India's gems and jewellery exports at about US$75 billion by 2030 (DRHP p.173). India's gems and jewellery exports fell 3.3% to US$27.72 billion in FY2025-26, with shipments to the United States down 45% after US tariffs (DRHP p.156).

Segments: the report splits jewellery machines into metal processing, casting and forming, stone processing, and finishing and precision manufacturing equipment (DRHP p.163), and buyers into artisanal workshops, cluster-based small firms, organised manufacturers and lab-grown diamond makers, with organised manufacturers the largest buyers of advanced machines (DRHP p.163, DRHP p.164). It states that CNC and PLC adoption remains at an early stage among smaller makers (DRHP p.165).

What drives demand: the report names income growth and wedding demand, with bridal jewellery an estimated 50% to 55% of gold jewellery demand (DRHP p.166); lighter and more intricate designs as gold prices rise (DRHP p.166); mandatory hallmarking, which covered 380 districts by March 2026 (DRHP p.166); labour shortages and automation (DRHP p.167); and lab-grown diamonds (DRHP p.167). Export rules allow 0.9% wastage for mechanised plain jewellery against 2.25% to 3.0% for handcrafted (DRHP p.165, DRHP p.169).

Structure: the report describes a fragmented market of domestic makers, foreign brands, distributors and regional suppliers, competing on price, accuracy, metal recovery, automation, customisation and service (DRHP p.175). It names three listed CNC machine tool makers, Lokesh Machines Limited, Jyoti CNC Automation Limited and Macpower CNC Machines Limited, whose machines it says are relevant to making jewellery tools and moulds (DRHP p.177 to DRHP p.179). It lists capital cost, engineering know-how, customer switching costs, service networks and imported components as barriers to entry (DRHP p.177).

Inputs and trade: China supplied about 33.0% of India's jewellery machinery imports in FY 2025-26 (DRHP p.172). Imported machines carry an effective duty of about 28.5% (DRHP p.172). Advanced machines may depend on imported lasers, sensors, control units and motors (DRHP p.177). The company buys its raw materials and components from Indian suppliers (DRHP p.208).

Rules: the chapter covers BIS hallmarking, the Export Promotion Capital Goods scheme, Advance Authorisation norms, GST of 18% on machinery and a machinery safety order that was withdrawn for review in January 2026 (DRHP p.167 to DRHP p.169).

What the chapter says can go wrong: average gold prices in India rose from ₹48,723.2 per 10 grams in FY2021 to ₹1,18,420.9 in FY2026, and high prices can make jewellery makers defer machinery purchases (DRHP p.174); rising imports bring price pressure from new and refurbished foreign machines (DRHP p.174); and a shortage of skilled technicians strains after-sales service (DRHP p.174, DRHP p.175).

15Competitive position

Solanki Mechanic Works competitors

Source: DRHP p.36, DRHP p.141, DRHP p.181, DRHP p.182, converted from ₹ lakh; the issuer's PAT margin is our arithmetic. Lokesh Machines' revenue is about 7.3 times the company's, Macpower's about 11.6 times and Jyoti CNC's about 73 times (our arithmetic, DRHP p.140). The document states that no listed Indian company makes jewellery machines, so these peers were picked for CNC machinery (DRHP p.138).

What the company puts forward: six decades in jewellery machinery, in-house design with CAD/CAM software, a broad faceting range, installation and after-sales support, and exports to more than 15 countries (DRHP p.185 to DRHP p.188, DRHP p.201). Against that: one plant on land leased from its promoters, purchase orders with no volume commitments, a quarter of FY26 revenue from one product line, and a business only months old as a company (DRHP p.41, DRHP p.46, DRHP p.34, DRHP p.200, DRHP p.32).

16Peers the company named

Peers named in the offer document: Lokesh Machines Limited, Jyoti CNC Automation Limited and Macpower CNC Machines Limited (DRHP p.140).

All three make CNC machine tools for automotive and general engineering buyers; none makes jewellery machines (DRHP p.177 to DRHP p.179, DRHP p.138). Each is many times the company's size (DRHP p.140). The document gives their P/E as 175.85, 72.57 and 60.87, an average of 103.10, on prices of September 25, 2026 (DRHP p.138, DRHP p.140). Jyoti CNC Automation Limited is also the supplier quoted for all the capacity machinery in the objects (DRHP p.114). The company's FY26 EPS is ₹8.26 on ₹10 shares after the bonus (DRHP p.140). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Solanki Mechanic Works IPO risks

Customers: related parties: ₹4.8 crore of sales went to two promoter group firms in January to March 2026 (DRHP p.321) → this is about a third of that quarter's revenue and these firms owed ₹5.4 crore at March 31, 2026 (DRHP p.58) → total receivables rose from ₹0.32 crore to ₹10.5 crore in two years (DRHP p.67).

Customers: concentration: the top ten customers brought 55.57% of FY26 revenue (DRHP p.186) → there are no long-term purchase commitments (DRHP p.34) → the top five brought 41.47% (DRHP p.186).

Business: demand: demand depends on jewellery makers' spending, which high gold prices can delay (DRHP p.34, DRHP p.35) → revenue fell 5.86% in FY26 (DRHP p.313) → bangle and ring machine sales fell from ₹14.4 crore in FY25 to ₹7.6 crore in FY26 (DRHP p.200).

Financial: cash and working capital: operating cash flow was −₹10.1 crore in FY26 (our arithmetic, DRHP p.70) → inventory days were 260 and receivable days 133 (DRHP p.131) → the stock reported to the bank differed from the books by ₹4.8 crore in the December 2025 quarter (DRHP p.292).

Financial: profit base: the company's first quarter had a 30.08% EBITDA margin with employee cost of ₹0.14 crore (DRHP p.141, DRHP p.68) → directors' pay of ₹1,10,000 and ₹1,00,000 a month starts from June 2026 and plant rent from September 2026 (DRHP p.227, DRHP p.46) → partners' remuneration was ₹1.7 crore in FY25 (DRHP p.272).

Promoters: property and loans: the plant land belongs to three promoters and the new building is planned on Plots 55 and 56 (DRHP p.288, DRHP p.127) → the company depends on a nine-year lease from them (DRHP p.46) → directors' loans were ₹5.1 crore at March 31, 2026 (DRHP p.269).

Regulation and compliance: provident fund, ESIC and professional tax payments were made late, up to 76 days (DRHP p.41, DRHP p.42) → several licences still stand in the partnership's name with name changes pending (DRHP p.51, DRHP p.331) → statutory dues payable were ₹1.4 crore at March 31, 2026 (DRHP p.270).

Issue-specific: no orders have been placed for the ₹12.2 crore of machinery and the building rests on one contractor's quotation (DRHP p.40, DRHP p.127) → costs may rise and the building plan is not yet approved (DRHP p.120) → ₹31.9 crore of named objects with no monitoring agency (our arithmetic, DRHP p.112, DRHP p.135).

18Litigation and regulatory matters

Cases against Solanki Mechanic Works and its promoters

Criminal: none involving the company, promoters, directors, key managers or senior management (DRHP p.326 to DRHP p.328). Regulatory: no actions by statutory or regulatory authorities (DRHP p.327). Group entities: no litigation with a material impact on the company (DRHP p.328). Creditors: three material creditors were owed ₹2.8 crore at March 31, 2026, and 38 small enterprises ₹0.78 crore (DRHP p.329).

19Related-party transactions

Source: DRHP p.56, DRHP p.57, DRHP p.75 to DRHP p.78, converted from ₹ lakh. In FY25 the firm sold property to Solanki Nira Brijesh, Solanki Jaisal Nipulbhai and Solanki Naman Manojbhai for ₹1.2 crore each (DRHP p.57). Partners withdrew capital of ₹12.7 crore in FY25 and ₹11.3 crore in the nine months to January 3, 2026 (DRHP p.269). Balances at March 31, 2026: Soliyo Designs LLP owed ₹4.1 crore and Sintrizen Technologies Private Limited ₹1.2 crore (DRHP p.58).

What appeared or changed in the two years before filing: the sales to Soliyo Designs LLP, a firm incorporated in December 2024 (DRHP p.249), and to Sintrizen; the loans from promoters to the company in January to March 2026; the property sale in FY25; and the plant lease at ₹4,50,000 a month from September 1, 2026 in place of rent-free use (DRHP p.56, DRHP p.57, DRHP p.46, DRHP p.81). The document states the transactions were on arm's length terms (DRHP p.81). The firm's accounts for the period to January 3, 2026 had no related-party note, so some figures for that period are blank (DRHP p.80).

20What the offer document does not say

The customers are not named. Machines sold, prices and order book are not given, so growth cannot be split into volume and price. Margins by product are not given. The jewellery making machinery market in India is not sized. Who will own the new building on Plots 55 and 56 is not stated. What the added 1,50,000 kg of capacity means in machines is not stated.

Which group entity faces the ₹1.1 crore tax matter is not stated (DRHP p.329). Why FY25 sale proceeds of ₹6.3 crore exceed the ₹3.5 crore of property sold to promoters is not explained (DRHP p.70, DRHP p.57). The issue size, price band, general corporate purposes and issue expenses are blank (DRHP p.112).

Some inconsistencies are recorded as document matters, not business ones: FY24 revenue is ₹30.2 crore in the restated profit and loss and ₹30.3 crore elsewhere (DRHP p.68, DRHP p.141); the business started in 1962 in most chapters and 1961 in the industry chapter (DRHP p.183, DRHP p.179); the business transfer agreement is dated January 8, 2026 in most places and January 3, 2026 in others

and the allotment is February 19, 2026 in the capital structure and January 3, 2026 in the basis for issue price (DRHP p.82, DRHP p.66, DRHP p.97, DRHP p.144); the cash flow statement shows ₹4.1 crore of proceeds from issue of shares although the allotment was for the business, not for cash (DRHP p.70, DRHP p.97);

the receivables ageing note says nothing is receivable from related parties while ₹5.4 crore is shown owed by two related firms (DRHP p.278, DRHP p.58); the plant is Plot Nos. 51 to 54 in the business chapter and 51 to 56 in the lease (DRHP p.201, DRHP p.46); trademarks are shown registered in the business chapter and pending in the approvals chapter (DRHP p.207, DRHP p.332);

the management chapter says no senior manager holds shares while Purchase Head Solanki Nipul Hasmukhbhai holds 9,02,368 (DRHP p.240, DRHP p.101); the footnote says no pay went to the Whole-time Director in FY26 while the table shows ₹0.13 crore (DRHP p.228); the promoters' share is 59.56% in the capital structure and 59.54% in the promoter chapter (DRHP p.103, DRHP p.242);

and the abridged prospectus labels its financial table "₹ in million" while the figures are in lakh and lists Pragnesh Radheshyam Sharma twice in place of Jagdish Ghanshyambhai Sonagra (AP p.5, AP p.8).

21Five questions for management

1. Who are the end customers of the ₹4.8 crore of machines sold to Soliyo Designs LLP and Sintrizen Technologies Private Limited in January to March 2026, and how much of the ₹5.4 crore they owed has been collected?
2. How many machines were sold in FY24, FY25 and FY26, and at what average price, given that kilograms processed rose while revenue fell?
3. Who will own the factory building on Plots 55 and 56, which stand on land leased from three promoters, and what happens to it if the lease ends?
4. What would FY26 EBITDA have been with directors' pay and plant rent on the terms that now apply?
5. What were the FY25 sale proceeds of ₹6.3 crore for, beyond the ₹3.5 crore of property sold to three promoters?

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.