Sssmehta Industries Limited IPO

01At a glance

What the company does: cuts, bends, forms, welds and profiles steel at three leased units at Adityapur, Jamshedpur, into pre-engineered building parts, roofing and decking sheets, agriculture and construction equipment, mining and engineering fabrication, auto components and solar mounting structures (DRHP p.148, DRHP p.149).

Who pays it: industrial customers with no long-term contracts; the top five were 39.25% of FY26 revenue and the top ten 57.50% (DRHP p.24). The prospectus names none of them.

Why it is raising money: ₹1,340.00 lakh to set up two new manufacturing facilities at Adityapur, ₹400.00 lakh to repay borrowings and ₹420.00 lakh for working capital, with general corporate purposes left blank (DRHP p.74).

How fast it has grown: revenue was ₹5,846.23 lakh in FY24, fell to ₹4,500.05 lakh in FY25 and was ₹5,875.83 lakh in FY26, about level over two years; profit after tax went from ₹219.64 lakh to ₹688.29 lakh, about 77.0% a year (our arithmetic, DRHP p.243).

The one thing to understand: revenue is flat over two years while profit has trebled, and FY26 revenue includes ₹649.49 lakh from Eastern Solaris Energy Private Limited, which the prospectus calls a subsidiary from 6 December 2025 and which is not in the FY24 figure (DRHP p.246, DRHP p.51). Read from the filing: without it, FY26 revenue would be about ₹5,226 lakh, below FY24 (our arithmetic, DRHP p.246, DRHP p.243).

02The business, in plain words

SSSMehta buys hot-rolled and galvanised steel coils and sheets, cuts and forms them to a customer's drawing, and delivers fabricated parts and assemblies (DRHP p.23, DRHP p.149). The work is done at three units at Adityapur, all on long leases from the state industrial area authorities, using laser and plasma cutting, shearing, bending, roll forming and welding (DRHP p.152, DRHP p.149). It also does job work, which added ₹194.21 lakh of revenue in FY26 (DRHP p.246).

An industrial customer needs a fabricated steel part → places a purchase order to its own drawing → SSSMehta cuts, forms and welds steel coil at Adityapur → SSSMehta keeps what is left after steel, power, labour and interest.

The company was incorporated in November 2021, changed its name twice, and became a public limited company with a fresh certificate of incorporation on 13 March 2026 (DRHP p.53). In May 2022 it took over the assets and liabilities of two proprietary firms, M/s Mehta Enterprises and M/s G R Industries, with effect from 1 April 2022, against 16,43,634 shares issued to Suresh Kumar Mehta for consideration other than cash (DRHP p.65). It had 137 on-roll employees at 31 July 2026 (DRHP p.151).

Earnings equation: Profit ≈ tonnes fabricated × (realisation per tonne − steel cost per tonne) − power, labour and plant costs − interest. In FY26 cost of material consumed was ₹4,109.13 lakh, 69.18% of total income, and employee costs ₹337.24 lakh against revenue of ₹5,875.83 lakh (DRHP p.243).

03Where the money comes from

Source: DRHP p.150. The prospectus gives the mix by tonnes produced rather than by revenue.

Source: DRHP p.24. Revenue does depend on a limited group: ten customers were 57.50% of FY26 revenue, and the prospectus states there are no long-term contracts with all of them (DRHP p.23, DRHP p.24). Purchases are described as reliant on the top ten suppliers for hot-rolled and galvanised steel coils and sheets, without a numbered share (DRHP p.23). The whole business is in Jharkhand, which the prospectus lists as its first risk factor (DRHP p.23).

04The growth record

Source: DRHP p.243, DRHP p.244, DRHP p.250; EBITDA and the margins are our arithmetic on profit before exceptional items, adding back finance cost and depreciation and deducting other income.

Net worth was ₹495.52 lakh, ₹931.72 lakh and ₹1,616.61 lakh; total borrowings ₹518.05 lakh, ₹922.44 lakh and ₹1,816.05 lakh; return on net worth 44.32%, 46.82% and 42.49%, and net asset value per share after the bonus ₹6.01, ₹11.30 and ₹19.75 (our arithmetic, DRHP p.47, DRHP p.248, DRHP p.249, DRHP p.92). Our arithmetic: revenue was about level over the two years from FY24 to FY26, while EBITDA grew about 62.3% a year and profit about 77.0%; EBITDA margin rose 1,079 basis points and PAT margin 795 basis points (DRHP p.243).

The basis changed: FY24 is standalone and FY25 and FY26 are consolidated, and the company acquired Eastern Solaris Energy Private Limited during FY26, so the three columns are not on the same footing (DRHP p.243, DRHP p.51).

05What the growth is made of

Margin, not volume. Revenue in FY26 was ₹5,875.83 lakh against ₹5,846.23 lakh in FY24, a rise of ₹29.60 lakh over two years, while profit after tax rose from ₹219.64 lakh to ₹688.29 lakh (our arithmetic, DRHP p.243). Tonnes produced rose from 8,797 to 11,271, about 13.2% a year, with capacity up from 10,540 MT to 12,900 MT (our arithmetic, DRHP p.150).

Read from the filing: tonnes rose about 28% over two years while revenue was flat, so realisation per tonne fell; the gain is in cost, with cost of material consumed falling from 74.62% of total income in FY24 to 69.18% in FY26 and other expenses from 4.26% to 6.19% (our arithmetic, DRHP p.243).

The company attributes the FY26 increase over FY25 to ₹649.49 lakh of sales added by the subsidiary and ₹532.08 lakh at the company itself, of which ₹194.21 lakh was job work (DRHP p.246). Job work bills labour rather than steel, which is consistent with lower material cost as a share of income, but the prospectus does not give job work revenue for FY24 or its margin, so the split cannot be taken further.

06Earnings quality

Two items need explaining. First, cash: FY26 operating cash flow was negative ₹484.20 lakh on profit before tax of ₹921.33 lakh, because trade payables fell ₹662.31 lakh, other current liabilities ₹222.68 lakh and receivables and other assets rose, and ₹234.02 lakh of tax was paid (DRHP p.250). Second, the ₹800.00 lakh: the company gave that much in loans and advances during FY25, which is more than its net worth that year, and took ₹797.00 lakh back in FY26; the prospectus does not say to whom it was lent (DRHP p.251, DRHP p.47).

07The balance sheet

At March 2026 borrowings were ₹1,816.05 lakh: ₹966.62 lakh long-term, up from ₹77.20 lakh a year earlier after a ₹877.50 lakh term loan from SIDBI for the subsidiary's solar panel machinery, and ₹849.43 lakh short-term (our arithmetic, DRHP p.248, DRHP p.249). At March 2024 the total was ₹518.05 lakh (our arithmetic, DRHP p.248, DRHP p.249).

The loans listed for repayment from the proceeds are five facilities from Bank of India and SIDBI, sanctioned at ₹1,048.10 lakh with ₹454.37 lakh outstanding at 31 August 2026, including a ₹800.00 lakh cash credit drawn to ₹410.01 lakh (DRHP p.83, DRHP p.84). The promoters have given personal guarantees for certain facilities of the company and its subsidiary (DRHP p.33).

Trade receivables were ₹470.49 lakh, inventories ₹694.64 lakh and trade payables ₹214.34 lakh across 70 creditors (DRHP p.249, DRHP p.257). Contingent liabilities were nil (DRHP p.50).

After the issue: the prospectus leaves the issue price and amount blank, so the effect on net worth cannot be worked out; ₹400.00 lakh of the proceeds is earmarked to repay borrowings against ₹1,816.05 lakh outstanding at March 2026 (DRHP p.74, our arithmetic, DRHP p.248).

08What the money is for

Source: DRHP p.74. The share of the issue each object takes cannot be worked out, because the price and the issue amount are left blank.

The two facilities are to be built on land the company has not yet acquired: for Facility I, land acquisition is scheduled from April 2027 to December 2027 and commercial operation for July 2028; for Facility II, land acquisition from January 2027 and commercial operation for June 2028 (DRHP p.81).

The machinery listed for Facility II, eight items costing ₹605.84 lakh, is on quotations except for two plasma cutting machines, ordered in June 2026 for ₹156.00 lakh, of which ₹23.40 lakh has been paid (DRHP p.79). The prospectus lists not having acquired the land and not having placed the machinery orders as a risk factor (DRHP p.32). The debt to be repaid is ₹400.00 lakh of ₹454.37 lakh outstanding at 31 August 2026 (DRHP p.84).

Into the business the whole issue: up to 31,00,000 new shares, with the price and the amount left blank (DRHP p.63). To selling shareholders nothing: there is no offer for sale (DRHP p.63).

09Who is selling

No one. The issue is entirely new shares, up to 31,00,000 of face value ₹10 each; the prospectus records no offer for sale, and the number reserved for the market maker is left blank (DRHP p.63).

10Promoters

The promoters are Suresh Kumar Mehta, chairman and managing director, Shilpa Mehta, a non-executive non-independent director, and Sumit Kumar Mehta, whole time director; all three changed designation on 20 July 2026 (DRHP p.51). Suresh Kumar Mehta alone holds 82,28,670 shares, 99.81% of the capital before the issue, and the promoters and promoter group together hold all 82,43,170 shares (DRHP p.68, DRHP p.67).

Promoter economics: the three subscribed to the memorandum for 5,000 shares at ₹10 in November 2021; in May 2022 Suresh Kumar Mehta received 16,43,634 shares for consideration other than cash against the takeover of two proprietary firms; and on 10 September 2026, eleven days before this draft, the company issued 65,94,536 bonus shares, four for every one held, of which 65,82,936 went to Suresh Kumar Mehta (DRHP p.64).

On 21 February 2026 Suresh Kumar Mehta gifted 100 shares each to four relatives and family entities (DRHP p.64). No promoter shares are pledged (DRHP p.66). Promoter remuneration was ₹70.00 lakh in FY24 and ₹101.00 lakh in FY26 across the three (our arithmetic, DRHP p.51, DRHP p.52).

The promoters have also lent to the company: ₹100.00 lakh from Suresh Kumar Mehta in FY26 and ₹169.75 lakh from Shilpa Mehta in FY25, with interest (DRHP p.51, DRHP p.52).

Litigation touching the promoters is set out in section 23. The prospectus also records that the death certificates of certain deceased members of the promoter group are not traceable (DRHP p.34), and that none of the directors has experience of being a director of a listed company (DRHP p.34).

11Who already owns it

Before the issue there are 82,43,170 shares held by 7 shareholders, all in the promoter and promoter group category; the public holds none (DRHP p.67). Suresh Kumar Mehta holds 99.81%, and held 16,46,134 shares, 99.85%, both one year and two years before the filing (DRHP p.68).

The securities premium account is nil: every share has been issued at face value, for consideration other than cash, or as a bonus (DRHP p.63, DRHP p.64). Because the issue price and size are left blank, the shareholding after the issue is not stated (DRHP p.63).

12What changed just before the IPO

• The company was renamed twice and became a public limited company, with a fresh certificate of incorporation on 13 March 2026 (DRHP p.53).
• A bonus issue of 65,94,536 shares, four for one, was allotted on 10 September 2026, taking the capital from 16,48,634 shares to 82,43,170 (DRHP p.64).
• On 21 February 2026 Suresh Kumar Mehta gifted 100 shares each to Akshita Subhash Mehta, Tarun Kumar Mehta, Sumit Kumar Mehta (HUF) and Suresh Kumar Mehta (HUF) (DRHP p.64).
• Eastern Solaris Energy Private Limited became a subsidiary from 6 December 2025; the company invested ₹400.00 lakh in it during FY26, taking the total to ₹405.00 lakh (DRHP p.51, DRHP p.52).
• Long-term borrowings rose from ₹77.20 lakh to ₹966.62 lakh in FY26, including ₹877.50 lakh from SIDBI for the subsidiary's solar panel machinery (DRHP p.248).
• ₹800.00 lakh of loans and advances was given in FY25 and ₹797.00 lakh received back in FY26 (DRHP p.251).
• Three of the directors changed designation on 20 July 2026, two independent directors were appointed on 24 July 2026, and a chief financial officer, chief executive officer and company secretary were appointed in July 2026 (DRHP p.51).
• Other income went from ₹0.09 lakh in FY24 to ₹63.55 lakh in FY26, mostly interest on loans and advances (DRHP p.243, DRHP p.246).
• Installed capacity rose from 10,540 MT to 12,900 MT between FY24 and FY25, with a third unit taken on lease from October 2023 (DRHP p.150, DRHP p.152).

13Capacity and expansion

Source: DRHP p.150, as certified by a practising chartered engineer on 12 September 2026. Capacity was 10,540 MT in FY24, with Unit 3 at 4,840 MT, and utilisation across the three was 82.95% in FY24 and 75.37% in FY25 (DRHP p.150).

All three units are leased: Unit 1 for 99 years from 1991 and Units 2 and 3 for 30 years from 2010 and 2023, from the Adityapur and Jharkhand industrial area development authorities (DRHP p.152). The prospectus lists having only leasehold rights as a risk factor (DRHP p.27). The two new facilities the issue would fund are not expected to reach commercial operation until June and July 2028, and the land for them has not been acquired (DRHP p.81, DRHP p.32). The prospectus does not state the capacity the new facilities would add.

14Market size and industry structure

As claimed: the industry chapter is not built on an industry report commissioned for this draft, and the prospectus does not state a size for the steel fabrication market or for any of the five product groups it serves. It notes that market conditions in its industry are influenced by the prices of hot-rolled and galvanised steel coils and sheets and by demand from construction, infrastructure and automotive end users, and that its own projections and estimates may prove inaccurate (DRHP p.27).

The part that is addressable: fabricated steel for pre-engineered buildings, mining and engineering equipment, auto components and solar mounting structures, supplied from Adityapur, Jamshedpur (DRHP p.148, DRHP p.149).

What the company is today: 12,900 MT of capacity, 11,271 MT produced and ₹5,875.83 lakh of FY26 revenue (DRHP p.150, DRHP p.243). Because the filing sizes no market, the company's share cannot be worked out.

On structure, the prospectus says it operates in a highly competitive industry and that increased competition may affect its business and market share, and it describes its margins as thin (DRHP p.35, DRHP p.31). Its business is geographically concentrated in Jharkhand and specifically in the Adityapur area of Jamshedpur (DRHP p.23).

15Competitive position

The prospectus names no competitor outside the peer table. The reasons it gives for customers placing orders with it are a spread of fabrication processes under one roof, including laser and plasma cutting, shearing, bending, roll forming and welding, three units close to the Adityapur industrial and transport network, and ISO 9001:2015 and ZED Bronze certification (DRHP p.149, DRHP p.150).

Against that, there are no long-term contracts with all customers (DRHP p.23), all three plants are on leased land (DRHP p.27), and the company holds one registered trademark, UltraStrong, with a device mark still at application stage (DRHP p.152). The prospectus also records that failure to maintain the confidentiality of its technical knowledge could undermine its position (DRHP p.33).

16Peers the company named

Peers named in the offer document: Pennar Industries Limited, Automotive Stampings and Assemblies Limited and Bansal Roofing Products Limited (DRHP p.93).

Source: DRHP p.93; peer prices are BSE closes of 17 September 2026 and peer financials are from annual reports for the year to 31 March 2026, consolidated for Pennar Industries and standalone for the other two. Pennar Industries' income is about 62 times SSSMehta's, Automotive Stampings' about 15 times and Bansal Roofing's about 2.6 times (our arithmetic, DRHP p.93). The prospectus gives the industry P/E as a high of 25.61, a low of 16.55 and an average of 20.44, but no price band exists yet, so this study works out no valuation (DRHP p.92).

17Risks, in plain words

Flat revenue, rising profit: revenue was ₹5,846.23 lakh in FY24 and ₹5,875.83 lakh in FY26, while profit trebled to ₹688.29 lakh (our arithmetic, DRHP p.243) → the profit comes from cost and mix rather than from selling more → FY26 also includes ₹649.49 lakh of sales from a subsidiary that is not in the FY24 figure (DRHP p.246).

Cash: FY26 operating cash flow was negative ₹484.20 lakh on profit before tax of ₹921.33 lakh, after a ₹662.31 lakh fall in trade payables (DRHP p.250) → the year's profit did not convert into cash → over three years operating cash flow was ₹331.58 lakh against ₹1,344.13 lakh of profit (our arithmetic, DRHP p.250, DRHP p.244).

Customers: the top ten were 57.50% of FY26 revenue and there are no long-term contracts with all of them (DRHP p.23, DRHP p.24) → orders can be varied, delayed or moved to another supplier → the top five alone were 39.25% (DRHP p.24).

One place: the business is concentrated in Jharkhand and all three plants are in the Adityapur area of Jamshedpur (DRHP p.23) → a single local event affects every unit at once → all three are on leasehold land from state authorities (DRHP p.152).

Steel prices: the key inputs are hot-rolled and galvanised steel coils and sheets, and the prospectus states that fluctuations in their prices may affect cost of production and margins (DRHP p.23, DRHP p.24) → material cost was 69.18% of FY26 total income (DRHP p.243) → the prospectus describes its margins as already thin (DRHP p.31).

Debt: borrowings rose from ₹518.05 lakh at March 2024 to ₹1,816.05 lakh at March 2026, including ₹877.50 lakh borrowed for the subsidiary's machinery (our arithmetic, DRHP p.248, DRHP p.249) → finance cost was ₹106.35 lakh in FY26 → ₹400.00 lakh of the proceeds would repay part of it (DRHP p.243, DRHP p.74).

The new plants are far off: the land for both proposed facilities has not been acquired, and commercial operation is scheduled for June and July 2028 (DRHP p.32, DRHP p.81) → ₹1,340.00 lakh of the proceeds would sit against a project two years out → most of the machinery is on quotations, not orders (DRHP p.79).

Compliance: the prospectus lists fourteen instances of delayed filing of tax deducted at source returns between March 2023 and March 2026, with late fees, and records delays, discrepancies and errors in statutory filings (DRHP p.29, DRHP p.30).

Issue-specific: the issue price, the issue amount and the sum for general corporate purposes are left blank (DRHP p.74), the fund requirement has not been appraised by a bank or financial institution (DRHP p.34), and none of the directors has experience of being a director of a listed company (DRHP p.34).

18Litigation and regulatory matters

There is no criminal proceeding, regulatory action or tax proceeding against the company itself, against its subsidiary or against its directors other than the promoters, and no disciplinary action by SEBI or the exchanges against the promoters in the last five financial years (DRHP p.254, DRHP p.255, DRHP p.253). At March 2026 trade payables were ₹214.34 lakh across 70 creditors, of which 53 other creditors accounted for ₹36.86 lakh (DRHP p.257).

19Related-party transactions

Source: DRHP p.51, DRHP p.52.

Loans from directors run in both directions: Suresh Kumar Mehta advanced ₹100.00 lakh in FY26 with ₹102.70 lakh outstanding at the year end, and Shilpa Mehta advanced ₹169.75 lakh in FY25 and was repaid ₹207.72 lakh including interest in FY26 (DRHP p.51, DRHP p.52). Interest paid to the three directors on those loans was ₹20.22 lakh in FY26 against ₹9.13 lakh in FY24 (our arithmetic, DRHP p.51, DRHP p.52).

What appeared in the two years before the filing: the investment in Eastern Solaris Energy Private Limited, ₹5.00 lakh in FY25 and ₹400.00 lakh in FY26, and remuneration of ₹8.40 lakh in FY26 to Akshita Subhash Mehta, a relative of a key managerial person (DRHP p.52).

Mehta Skin Science & Aesthetics LLP, a firm in which a key managerial person is interested, was incorporated on 1 June 2026 and is listed as a related party (DRHP p.51).

20What the offer document does not say

Customers are not named and revenue is not split by product, only production in tonnes, so realisation per tonne by product cannot be worked out. Job work revenue is given only for the increase in FY26, not as a series, so its share of revenue and its margin are not disclosed. To whom the ₹800.00 lakh of loans and advances was given in FY25 is not stated.

The capacity the two proposed facilities would add is not stated. The prospectus gives 137 on-roll employees at 31 July 2026 in one table and 17 employees at the end of FY26 in the attrition table on the same page, without reconciling the two. The issue price, the issue amount, the market maker reservation and the sum for general corporate purposes are all left blank in this draft.

21Five questions for management

1. What was revenue per tonne in FY24, FY25 and FY26, and how much of the rise in margin came from job work rather than from fabrication sold outright?
2. To whom were the ₹800.00 lakh of loans and advances given in FY25, on what terms, and why were they given in a year when net worth was ₹931.72 lakh?
3. Why did trade payables fall ₹662.31 lakh in FY26, and what does that say about supplier terms going into FY27?
4. What capacity in tonnes will the two proposed facilities add, and what utilisation do they need to cover the ₹1,340.00 lakh of capital expenditure?
5. On what basis are the two employee tables on page 151 prepared, and what is the actual headcount of the company and of its subsidiary?

1Sources and cited facts

This study was read from 1 document the company filed. The 88 figures it cites are listed under the document each came from, with the page and the sentence as printed.