Steam Equipments Limited IPO

01At a glance

What the company does: designs, makes, assembles and supplies steam and water analysis systems (SWAS), sample coolers, instrument valves and fittings, gas and water quality analysers, continuous emission monitoring systems and steam traps for power plants, refineries and other process industries, from a leased unit in Kondhwa, Pune (DRHP p.162, DRHP p.163).

Who pays it: industrial companies, engineering consultants, EPC contractors, public sector undertakings and government bodies, in India and abroad (DRHP p.184). Customers are not named. The largest customer brought 8.21% of FY26 revenue and the top ten 49.77% (DRHP p.180). Exports were 33.37% of FY26 revenue, led by Saudi Arabia, the UAE and the USA (DRHP p.166).

Why it is raising money: ₹12.0 crore of the fresh issue is for working capital, ₹7.9 crore for building work at the Kondhwa plots and ₹5.2 crore for works and machinery at the SEZ unit in Satara (DRHP p.95). Up to 7,00,000 shares are sold by the promoter Rasheed Syed, and that money goes to the seller (DRHP p.56, DRHP p.94).

How fast it has grown: revenue from ₹20.3 crore in FY24 to ₹57.3 crore in FY26, about 67.9% a year, and profit after tax from ₹3.8 crore to ₹11.2 crore, about 71.7% a year (our arithmetic, DRHP p.60).

The one thing to understand: profit has not turned into cash. Operating cash flow was ₹0.81 crore in FY24, then minus ₹7.6 crore in FY25 and minus ₹3.5 crore in FY26 (DRHP p.61), because trade receivables rose from ₹18.4 crore to ₹46.7 crore (DRHP p.26). Of the receivables at March 31, 2026, ₹20.5 crore had been owed for more than a year (our arithmetic, DRHP p.268).

02The business, in plain words

What Steam Equipments does

Steam Equipments works through four lines of business (DRHP p.162, DRHP p.163):

• Sampling System Solutions: steam and water analysis systems that take samples of steam, water and condensate from boilers and turbines, cool them and check them for pH, conductivity, silica, sodium and dissolved oxygen; plus sample coolers, instrument valves, manifolds, fittings, instrument racks and fibre panels (DRHP p.163, DRHP p.167).
• Analytical Division: process gas analysers, water quality analysers, dew point meters, conductivity analysers, chillers and analyser shelters (DRHP p.164).
• Environmental Solutions: continuous emission monitoring systems for chimney gases, dust monitors, effluent and ambient air monitoring systems, oxygen analysers and dosing systems (DRHP p.164).
• Steam Engineering: steam traps and condensate recovery systems (DRHP p.164).

A plant owner or EPC contractor sends a specification or a tender → the company designs the system, buys tubing, valves, analysers and other parts, fabricates the frame, assembles, welds, wires and pressure tests it → it paints, inspects, packs and dispatches the system → it is paid against milestones, with part of the price often held back until the warranty is over (DRHP p.26, DRHP p.183, DRHP p.184).

The company was incorporated in Pune on October 6, 2004 as Steam Equipments Private Limited and became a public company on December 18, 2024 (DRHP p.66). It works from Plots 44, 49 and 50 of the Tiny Industrial Co-operative Estate in Kondhwa, Pune, all held on long leases, and from a 6,000 square metre leased plot in the Khandala SEZ near Satara (DRHP p.195, DRHP p.196). It is ISO 9001:2015 certified (DRHP p.185). It had 91 permanent employees at March 31, 2026 (DRHP p.191).

Most of its work is custom made, so the document measures capacity in numbers of units: 3,700 a year installed, 3,321 made in FY26 (DRHP p.189). The equipment list certified by the chartered engineer shows 13 measuring instruments at the Kondhwa unit and one band saw and two welding machines at the SEZ unit (DRHP p.188, DRHP p.189). The risk factors say the SEZ unit has not been used for manufacturing in the recent period (DRHP p.29).

Earnings equation: Revenue = systems and products delivered × price of each order. The document gives units made, not units sold or prices, so revenue cannot be split this way (DRHP p.189).

03Where the money comes from

By line of business (₹ crore):

Source: DRHP p.165, converted from ₹ lakh. SWAS was 74.25% of FY24 revenue, 87.97% in FY25 and 63.12% in FY26 (DRHP p.165). FY24 is the company alone; FY25 and FY26 include the subsidiary (DRHP p.165).

By place: exports were ₹3.4 crore, 16.73% of FY24 sales, ₹14.8 crore, 33.16% in FY25, and ₹19.1 crore, 33.37% in FY26 (DRHP p.166). In FY26 Saudi Arabia brought 9.18%, the UAE 8.22%, the USA 6.28% and Senegal 4.76% (DRHP p.166). In India, Maharashtra brought 24.16%, Uttar Pradesh 8.98% and Karnataka 8.33% of FY26 sales (DRHP p.165, DRHP p.166).

Steam Equipments customers: how concentrated the revenue is

Source: DRHP p.180. The customers are not named, "to preserve confidentiality" (DRHP p.180). Revenue depended on a few customers in FY25, when two customers brought 41.52% of it (DRHP p.180); in FY26 the largest brought ₹4.7 crore (DRHP p.180).

On the supply side, the largest supplier was 11.72% of FY26 purchases and the top ten 56.09% (DRHP p.181). There are no long-term supply contracts (DRHP p.23).

04The growth record

Steam Equipments financials: revenue, profit and margins

Source: DRHP p.58, DRHP p.60, DRHP p.61, DRHP p.164, DRHP p.295, converted from ₹ lakh. Revenue went from ₹20.3 crore in FY24 to ₹57.3 crore in FY26 and profit after tax from ₹3.8 crore to ₹11.2 crore (DRHP p.60). FY26 profit includes ₹0.48 crore that belongs to the subsidiary's minority shareholders (DRHP p.60). EBITDA here leaves out other income (DRHP p.295).

Our arithmetic over FY24 to FY26: revenue grew about 67.9% a year and profit after tax about 71.7% a year (our arithmetic, DRHP p.60); EBITDA grew about 90.1% a year (our arithmetic, DRHP p.295). EBITDA margin moved from 20.34% to 26.07%, up 573 basis points, so from 20.3% to 26.1% rounded (DRHP p.164). Revenue rose 119.46% in FY25 and 28.43% in FY26 (DRHP p.301, DRHP p.302).

The year ends on March 31 throughout. FY24 is the company alone and FY25 and FY26 are consolidated; the subsidiary is counted from February 25, 2025 (DRHP p.267). The restatement raised profit: FY25 profit after tax was ₹5.1 crore audited and ₹6.8 crore restated, and FY24 ₹3.3 crore audited and ₹3.8 crore restated (DRHP p.289). There are no audit qualifications needing adjustment (DRHP p.247).

What sits around the record:

• Cash: operating cash flow was ₹0.81 crore in FY24, minus ₹7.6 crore in FY25 and minus ₹3.5 crore in FY26, written as −₹3.5 crore (DRHP p.61). In FY26 trade receivables absorbed ₹18.0 crore (DRHP p.61).
• Receivables: ₹46.7 crore at March 31, 2026, up from ₹18.4 crore two years earlier (DRHP p.26). Debtor days were 331 in FY24 and 297 in FY26 (DRHP p.126). Of the gross amount, ₹20.5 crore had been owed for more than a year (our arithmetic, DRHP p.268).
• Working capital: the working capital cycle was 336 days in FY26 (DRHP p.126).
• Other income was ₹1.65 crore in FY26, of which ₹1.15 crore was a foreign exchange gain; it was 10.7% of profit before tax (our arithmetic, DRHP p.60) (DRHP p.270).
• Debt: borrowings were ₹8.4 crore at March 31, 2026, all short term, against cash of ₹0.26 crore (DRHP p.58). Net of cash that is about 0.5× FY26 EBITDA (our arithmetic, DRHP p.58, DRHP p.295). Debt to equity was 0.12, so 0.1× (DRHP p.164). Return on capital employed was 20.04%, so 20.0% rounded (DRHP p.164).
• Goodwill: ₹29.7 crore at March 31, 2026, from buying 51% of Steamlok Engineering (DRHP p.58, DRHP p.267).
• Customers and suppliers: the largest customer was 8.21% of FY26 revenue, so 8.2% rounded, the top five 32.88%, so 32.9%, and the top ten 49.77%, so 49.8% (DRHP p.180); the top ten suppliers were 56.09% of FY26 purchases, so 56.1% (DRHP p.181).
• Exports: 33.37% of FY26 revenue, so 33.4% (DRHP p.166).
• Order book: ₹36.8 crore at the date of the DRHP (DRHP p.124).
• Capacity: utilisation was 89.75% in FY26, so 89.8% rounded (DRHP p.189).
• Statutory dues: ₹2.7 crore payable at March 31, 2026 (DRHP p.267).
• Loans from directors: ₹2.7 crore outstanding at March 31, 2026, interest free and repayable on demand (DRHP p.266).
• Use of the issue: ₹12.0 crore of the fresh issue is for working capital, ₹7.9 crore for the Kondhwa building work and ₹5.2 crore for the SEZ unit (DRHP p.95).
• Cases: the promoters are named in 6 cheque-dishonour cases, as directors of the company and the subsidiary (DRHP p.38).

05What the growth is made of

Revenue rose ₹37.0 crore from FY24 to FY26 (our arithmetic, DRHP p.60). By line (our arithmetic, DRHP p.165):

• Sampling System Solutions: up ₹21.0 crore, from ₹15.1 crore to ₹36.1 crore; it rose to ₹39.2 crore in FY25 and then fell ₹3.1 crore in FY26.
• Steam Engineering: up ₹6.5 crore, from ₹0.08 crore to ₹6.6 crore.
• Environmental Solutions: up ₹5.2 crore, from ₹1.5 crore to ₹6.6 crore.
• Analytical Division: up ₹4.2 crore, from ₹3.7 crore to ₹7.9 crore.

Exports: up ₹15.7 crore, from ₹3.4 crore to ₹19.1 crore (our arithmetic, DRHP p.166). FY26 exports went to Saudi Arabia, the UAE, the USA, Senegal and Kuwait among others (DRHP p.166).

The subsidiary: Steamlok Engineering is counted from February 25, 2025 (DRHP p.267). It earned ₹0.99 crore, 8.79% of FY26 consolidated profit (DRHP p.275). Steam traps and condensate recovery pumps, the Steam Engineering line, are products for which Steamlok holds registered designs (DRHP p.164, DRHP p.330).

Volume: units made rose from 2,934 in FY24 to 3,321 in FY26 against installed capacity of 3,700 (DRHP p.189). The document does not give units sold or prices, and calls its capacity measure a poor guide for custom work (DRHP p.29). So the increase cannot be split into volume and price. That is the finding. The management discussion puts the growth down to more domestic and international business (DRHP p.301).

06Earnings quality

The item that needs explaining is the receivables. Gross trade receivables were ₹47.3 crore at March 31, 2026: ₹23.0 crore under six months old, ₹3.9 crore six months to a year, ₹10.2 crore one to two years, ₹2.5 crore two to three years and ₹7.8 crore more than three years (DRHP p.268). The provision for bad debts was ₹0.65 crore, and ₹0.78 crore was written off in FY26 (DRHP p.268, DRHP p.271). The company says that customers take long credit, that part of each contract value is held back as a warranty retention, and that export customers take more time (DRHP p.26, DRHP p.127).

On the other side, trade payables were ₹13.7 crore, of which ₹4.3 crore was more than three years old (DRHP p.266). Dues to small suppliers were ₹4.5 crore at March 31, 2026 and ₹2.3 crore at the date of the DRHP (DRHP p.24), and interest on late payment to them was ₹0.17 crore in FY26 (DRHP p.271). GST, TDS, professional tax and labour welfare returns were filed late many times between FY24 and FY26, some by more than a year (DRHP p.31 to DRHP p.33).

The restatement raised profit for FY24 and FY25. The FY25 adjustments include ₹0.37 crore of bad debts recovered and ₹0.85 crore of bad debts and inventory moved to an earlier year (DRHP p.289).

07The balance sheet

At March 31, 2026 total assets were ₹107.3 crore: trade receivables ₹46.7 crore, goodwill ₹29.7 crore, inventories ₹18.6 crore, property, plant and equipment ₹5.8 crore, other current assets ₹4.1 crore and cash ₹0.26 crore (DRHP p.58, DRHP p.59). Goodwill was 41.7% of net worth (our arithmetic, DRHP p.58).

Against them: trade payables ₹13.7 crore, short-term borrowings ₹8.4 crore, short-term provisions ₹6.7 crore, other current liabilities ₹5.2 crore, minority interest ₹1.4 crore and net worth ₹71.3 crore (DRHP p.58). Other current liabilities include statutory dues of ₹2.7 crore and customer advances of ₹1.8 crore (DRHP p.267).

Borrowings of ₹8.4 crore at March 31, 2026 were: a Bank of India cash credit of ₹5.0 crore, a YES Bank working capital line of ₹0.13 crore, interest-free loans from Nayab Syed of ₹1.7 crore and from Rasheed Syed of ₹1.0 crore, and five unsecured business loans of ₹0.76 crore together (DRHP p.296). The bank lines are backed by fixed deposits and by personal guarantees of Rasheed Syed and Nayab Rasheed Syed (DRHP p.266, DRHP p.296).

Contingent liabilities: the summary table shows none, then lists disputed direct tax of ₹14.9 crore and indirect tax of ₹1.3 crore, ₹16.3 crore in all (DRHP p.62). There are no capital commitments (DRHP p.62).

Source: DRHP p.95, DRHP p.307. The capitalisation statement leaves the post-issue column blank (DRHP p.307). None of the fresh issue is set aside to repay loans (DRHP p.95).

08What the money is for

Steam Equipments IPO objects: what the money is for

Source: DRHP p.95. 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.95). The three named objects add to ₹25.1 crore (our arithmetic, DRHP p.95).

Working capital, ₹12.0 crore: ₹10.0 crore in FY27 and ₹2.0 crore in FY28 (DRHP p.96). The company projects its working capital need at ₹58.3 crore for FY27 and ₹76.1 crore for FY28, and projects debtor days falling to 177 and creditor days to 58 in FY27 (DRHP p.125, DRHP p.126). These are the company's own projections.

Kondhwa building, ₹7.9 crore: extra floors, renovation and civil works on a steel frame, from a quotation by Omtec Engineering and Constructions Private Limited dated September 5, 2026, valid for 180 days: ₹6.2 crore of work, ₹1.1 crore of GST and ₹0.62 crore of contingency (DRHP p.97, DRHP p.98). The plots are leased (DRHP p.195). Approval of the factory layout plan for the expansion is listed among the approvals the objects need (DRHP p.325).

SEZ unit, ₹5.2 crore: internal roads and epoxy flooring for ₹1.3 crore with contingency, two 10 tonne overhead cranes for ₹0.70 crore, a CNC machine from Jyoti CNC Automation Limited for ₹2.9 crore and ₹0.36 crore of contingency on the machinery (DRHP p.113). All of the building and SEZ money is scheduled for FY27 (DRHP p.95, DRHP p.96). The objects have not been appraised by any bank (DRHP p.96).

Into the business the fresh issue of up to 32,00,000 shares, at a price not yet set (DRHP p.94). To selling shareholders the proceeds of up to 7,00,000 shares sold by Rasheed Syed, at a price not yet set (DRHP p.94).

09Who is selling

Steam Equipments IPO offer for sale: who is selling

Source: DRHP p.56, DRHP p.86; the last column is our arithmetic. Alongside the sale, the company issues up to 32,00,000 new shares, the fresh issue (DRHP p.56). The offer for sale is up to 7,00,000 shares of ₹10 by Rasheed Syed (promoter), with consent dated September 1, 2026 (DRHP p.56, DRHP p.57). The objects chapter prints Rasheed Syed's pre-offer holding as "10" shares (DRHP p.94). The weighted average cost of the offered shares is left blank (DRHP p.1); the average cost of all of Rasheed Syed's shares is ₹20.75 (DRHP p.89).

10Promoters

The promoters are Rasheed Syed, Nayab Rasheed Syed and Nida Rasheed Syed (DRHP p.233). The document states that Rasheed Syed and Nayab Rasheed Syed are spouses and that Nida Rasheed Syed is their daughter (DRHP p.218). Rasheed Syed holds 40,25,932 shares, 36.75%, Nayab Rasheed Syed 50,39,136 shares, 45.99%, and Nida Rasheed Syed none (DRHP p.86, AP p.8).

Rasheed Syed, 54, is Chairman and Managing Director, a director since October 6, 2004, with a diploma in mechanical engineering and more than 21 years in the industry (DRHP p.214, DRHP p.233). Nayab Rasheed Syed, 53, is Whole-Time Director, with a Bachelor of Arts and more than 20 years in the industry (DRHP p.234). Nida Rasheed Syed, 25, is a Non-Executive Director with a Bachelor of Technology in instrumentation and control engineering (DRHP p.234, DRHP p.235). The risk factors say much of the client business is kept up through Rasheed Syed directly, and that there is no succession plan or key-man insurance (DRHP p.41).

Pay: Rasheed Syed was paid ₹0.48 crore and Nayab Rasheed Syed ₹0.24 crore in FY26 (DRHP p.219, DRHP p.220). Remuneration to the three promoters went from ₹0.46 crore in FY24 to ₹0.75 crore in FY26 (our arithmetic, DRHP p.64). The company also paid ₹0.30 crore of rent to Nayab Rasheed Syed in FY26 (DRHP p.64).

Loans: loans from Nayab Rasheed Syed of ₹1.65 crore and from Rasheed Syed of ₹1.01 crore were outstanding at March 31, 2026 (DRHP p.64). The management chapter says the company has not taken loans from directors (DRHP p.220).

Other businesses: the promoter group includes Tektrol Instruments Private Limited, Khaga Energy Private Limited, Nclosure & Controls Private Limited, Zycor Systems Private Limited and Tritech Defence Systems LLP (DRHP p.237, DRHP p.238). Three of them are registered at the company's own address, and two have objects covering steam and thermal equipment (DRHP p.239, DRHP p.240). There is no non-compete agreement (DRHP p.43). The company had lent ₹0.32 crore to Khaga Energy and ₹0.14 crore to Nclosure & Controls (DRHP p.65).

The Steamlok purchase: on February 25, 2025 the company bought 5,100 shares, 51%, of Steamlok Engineering Private Limited at ₹60,200 a share, ₹30.7 crore in all, based on a valuer's report dated June 28, 2024 (DRHP p.267). It paid by issuing 44,33,504 new shares at ₹69.25 to Rasheed Syed (12,17,040) and Nayab Rasheed Syed (32,16,464) (DRHP p.83, DRHP p.84). Steamlok's paid-up capital is ₹1,00,000, and Rasheed Syed and Nayab Rasheed Syed still hold 27% of it (DRHP p.211). Its net assets in the consolidated accounts were ₹2.6 crore at March 31, 2026 (DRHP p.275).

Guarantees and pledges: Rasheed Syed and Nayab Rasheed Syed guarantee the bank loans (DRHP p.266). No promoter shares are pledged (DRHP p.89).

Cases: the promoters are named in 6 cheque-dishonour cases, as directors of the company and the subsidiary (DRHP p.38). The credit report of Nayab Rashid Syed shows an overdue of ₹2.63 lakh on a housing loan (DRHP p.319).

Promoter economics: by 2016 the two parent promoters held 13,00,000 shares between them, built from allotments at ₹10 and, for Nayab Rasheed Syed, a gift of 1,00,000 shares in November 2013 (DRHP p.88, DRHP p.89). On May 2, 2024 Rasheed Syed sold shares at ₹176.35, ₹176.45 and ₹111, and Nayab Rasheed Syed sold 83,332 shares at ₹200 (DRHP p.88, DRHP p.89). Both received bonus shares in January 2025 and the Steamlok shares at ₹69.25 in February 2025 (DRHP p.88, DRHP p.89). The average cost works out to ₹20.75 a share for Rasheed Syed and ₹41.77 for Nayab Rasheed Syed (DRHP p.89).

11Who already owns it

Steam Equipments promoter holding before and after the IPO

Source: DRHP p.86; the after-issue column is our arithmetic, assuming all 32,00,000 new shares are issued and Rasheed Syed sells all 7,00,000 shares offered. There are 1,09,56,064 shares of ₹10 before the issue and 62 shareholders (DRHP p.56, DRHP p.89). After the issue the total would be 1,41,56,064 shares (our arithmetic, DRHP p.56), and the promoters' 82.74% would become about 59.1%, so 82.7% → 59.1% (our arithmetic, DRHP p.86). The document leaves the after-issue percentages blank (DRHP p.86).

The largest public holders are Shruti Agrawal with 2.63%, Amit R Agarwal with 1.94% and Shashikant Rajkumar Banka with 1.37% (DRHP p.86). No fund or company outside the promoter group holds 1% or more (DRHP p.86). Most public holders came in through a preferential issue at ₹277 a share on August 1, 2024, before the bonus, or through issues at ₹85 a share between June and August 2025 (DRHP p.80, DRHP p.81, DRHP p.83). Minimum promoters' contribution of 20% of the post-issue capital is to be locked in for three years; the shares are not yet named (DRHP p.90).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹20.3 crore in FY24 to ₹57.3 crore in FY26 and profit after tax from ₹3.8 crore to ₹11.2 crore (DRHP p.60).
• Receivables: debtor days were 331 in FY24 and 297 in FY26 (DRHP p.126).
• Promoter pay: from ₹0.46 crore in FY24 to ₹0.75 crore in FY26 (our arithmetic, DRHP p.64).
• Share sales by promoters: on May 2, 2024 at ₹111 to ₹200 a share (DRHP p.88, DRHP p.89).
• Preferential issue: 2,57,860 shares at ₹277 to 29 investors on August 1, 2024, before the bonus (DRHP p.80, DRHP p.81).
• Converted to a public company: December 18, 2024 (DRHP p.66).
• Bonus issue: 3 shares for every 1 held, 46,73,580 shares, in January 2025 (DRHP p.80, DRHP p.82).
• Steamlok bought from the promoters: 44,33,504 shares issued at ₹69.25 a share on February 25, 2025 for 51% of Steamlok Engineering (DRHP p.80, DRHP p.84).
• Last allotments: 92,000 shares on June 24, 2025, 25,000 on July 4, 2025 and 1,74,120 on August 14, 2025, all at ₹85 a share (DRHP p.80).
• Share split: the capital history shows none; all shares have been ₹10 since 2004 (DRHP p.79, DRHP p.80).
• Auditor: A N A M & Associates resigned on April 26, 2025 for "personal and unavoidable circumstances", and Maheshwari & Co. was appointed on May 15, 2025 to fill the vacancy (DRHP p.70).
• Board and officers: two independent directors joined from February 25, 2025 and a third on September 2, 2025, after another resigned (DRHP p.221, DRHP p.222). The CFO changed on July 1, 2026 and the company secretary on June 15, 2026 (DRHP p.63).
• Licences: the Kondhwa unit ran without a factory licence or a valid shop registration from April 2020 to January 2025 and got a factory licence on September 10, 2025; the SEZ unit got its factory licence in June 2025 (DRHP p.25).
• Overseas entities: the company holds 51% on paper of Steam Equipment USA Inc and Alfa Steam Equipments Pty Ltd but has paid nothing in and does not consolidate them (DRHP p.267).
• Dividend: none in the last three years (DRHP p.244).

13Capacity and expansion

Source: DRHP p.29, DRHP p.95, DRHP p.189. Utilisation went from 79.30% in FY24 to 82.56% in FY25 and 89.75% in FY26, as certified by a chartered engineer (DRHP p.189). The company says the measure may not reflect real capacity because each order differs in size and complexity (DRHP p.29).

The document does not state what capacity, in units, the new building or machines add. A capacity enhancement in the factory licence is listed among the approvals the objects need (DRHP p.325). The step from capacity to revenue cannot be made from the filing.

14Market size and industry structure

Steam Equipments industry: market size and growth

As claimed: the company did not commission an industry report. The chapter says its information "has been extracted from the websites of publicly available documents from various sources" and that neither the company nor anyone connected with the offer has verified it (DRHP p.144). It quotes the IMF's July 2026 World Economic Outlook update, India Brand Equity Foundation (IBEF), Mordor Intelligence and Transparency Market Research (DRHP p.151, DRHP p.155, DRHP p.157, DRHP p.159). Most of the chapter, from page 144 to page 151, is about the world economy: the IMF projects global growth of 3.0% in 2026 and 3.4% in 2027, and India's growth at 6.4% (DRHP p.144, DRHP p.148).

The part that is addressable: the company sells steam and water analysis systems, analysers, emission monitors and steam traps to power, refinery, chemical and other process plants (DRHP p.163, DRHP p.164). The chapter gives no size for any of these. It describes the water quality analyser, steam valve and steam trap markets in words only, with no figures (DRHP p.158 to DRHP p.161).

The nearest figures it gives are for wider markets: IBEF says India's steam boiler systems market is "expected to reach nearly US$ 22.56 billion by 2027" growing 4.63% a year (DRHP p.155), and that India's boiler market was ₹131.40 billion in 2024 and is projected at ₹321.30 billion by 2033, 10.40% a year (DRHP p.156). The company does not make boilers in its product list (DRHP p.163, DRHP p.164).

What the company is today: FY26 revenue of ₹57.3 crore, of which SWAS ₹36.1 crore and exports ₹19.1 crore (DRHP p.60, DRHP p.165, DRHP p.166). With no size for its own segment, no market share can be worked out.

Size over time: IBEF reports engineering goods exports of ₹10,82,729 crore in FY26 against ₹9,86,328 crore in FY25 (DRHP p.155). Capital goods production rose from ₹2,66,672 crore in FY21 to ₹5,69,900 crore in FY25, with heavy electrical equipment at ₹3,72,200 crore (DRHP p.155). Mordor Intelligence puts the global industrial machinery market at US$0.81 trillion in 2025 and US$0.87 trillion in 2026, and the report projects US$1.31 trillion by 2031, 8.34% a year (DRHP p.157). India's real GDP is estimated at ₹3,23,12,034 crore for FY2025-26, up 7.7% (DRHP p.152).

Segments: the chapter lists engineering sub-sectors, among them steam boiler systems, capital goods, power transformers, fasteners and boilers (DRHP p.155, DRHP p.156). It names no segment for sampling or analysis systems. The company's own business chapter splits its sales into four lines and between domestic and export customers (DRHP p.165, DRHP p.166).

What drives demand: the chapter names stricter government rules on water safety and industrial discharge, more wastewater treatment, and the move to sensors and remote monitoring for water analysers (DRHP p.158, DRHP p.159). For steam valves it names growth of oil, gas and power, with the Middle East and Asia Pacific as main markets (DRHP p.159). For steam traps it names energy saving and smart monitoring, with Asia Pacific the largest region (DRHP p.160, DRHP p.161). For engineering in general it names infrastructure spending, the PLI schemes, 100% FDI and a Union Budget capex of ₹15.48 lakh crore for FY 2027 (DRHP p.156).

Structure: the chapter does not name any competitor. The business chapter says the market has organised and unorganised Indian makers, multinational companies and regional firms, competing on quality, engineering, price, delivery, standards and service, with intense competition in government and PSU tenders (DRHP p.193). The only listed peer named is Axis Solutions Limited (DRHP p.135).

Inputs and trade: the chapter does not discuss raw materials. The risk factors name carbon, stainless and alloy steel plates, pipes, tubes, fittings, valves and instrument parts, mostly bought on the spot market without long-term contracts (DRHP p.36). The IMF section says energy prices were about 25% above pre-war levels in 2026 (DRHP p.145).

Rules: the products are built to standards such as ASME PTC 19.11 and ASME Section VIII, and emission and effluent monitors must meet CPCB norms (DRHP p.175, DRHP p.176, DRHP p.200). The company still has to update its ASME boiler certificate and professional tax enrolment to its new name (DRHP p.25).

What the chapter says can go wrong: the IMF section names renewed Middle East conflict, trade tensions and higher energy prices (DRHP p.149). The steam valve section names swings in raw material prices (DRHP p.159). The chapter does not discuss pricing, seasonality or competition in the company's own segments. The company says its business is not materially seasonal (DRHP p.306).

15Competitive position

Steam Equipments competitors

Source: DRHP p.137, converted from ₹ lakh. In the peer table the company's RoCE is shown as 22.38%, against 20.04% in its own KPI table (DRHP p.137, DRHP p.164). Axis Solutions' revenue is about 4.2 times the company's (our arithmetic, DRHP p.137). The overlap column is this study's reading; the document does not describe Axis Solutions' business. The document itself says there are no directly comparable listed companies (DRHP p.47).

What the company puts forward: experienced promoters, sales to both private and government buyers, in-house design and manufacture, a wide product range, custom engineering, ISO 9001 quality checks and export reach (DRHP p.184, DRHP p.185). Against that: all premises are leased; one site's equipment list is short and the SEZ unit has not been used for manufacturing recently; customers pay slowly; and promoter group companies have similar objects with no non-compete agreement (DRHP p.34, DRHP p.29, DRHP p.188, DRHP p.43).

16Peers the company named

Peers named in the offer document: Axis Solutions Limited (DRHP p.135).

Axis Solutions is the only peer named, about 4.2 times the company's FY26 revenue, with a lower PAT margin and a higher RoCE (DRHP p.137). The document gives its P/E as 92.93 at a closing price of ₹568.75 on September 21, 2026, and the industry P/E as the same 92.93 (DRHP p.134, DRHP p.135). The company's FY26 EPS is ₹9.90 on ₹10 shares (DRHP p.133). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Steam Equipments IPO risks

Financial: cash and receivables: operating cash flow was negative in FY25 and FY26 (DRHP p.61) → profit that is not collected cannot fund growth, which is why ₹12.0 crore of the issue goes to working capital → ₹20.5 crore of receivables were more than a year old at March 31, 2026 (our arithmetic, DRHP p.268).

Financial: goodwill: ₹29.7 crore of goodwill came from buying 51% of Steamlok Engineering from the promoters for shares (DRHP p.267) → its value rests on a valuer's report from June 2024 → Steamlok contributed ₹0.99 crore of FY26 profit (DRHP p.275).

Customers: the top ten customers brought 49.77% of FY26 revenue and the top five 56.94% in FY25 (DRHP p.180) → there are no long-term contracts and the customers are not named → the largest customer's share moved from 22.89% to 8.21% in one year (DRHP p.180).

Business: exports: 33.37% of FY26 revenue came from abroad, much of it from the Middle East (DRHP p.166) → currency, transit damage and regional demand can swing → Saudi Arabia alone was 25.33% of FY25 revenue and 9.18% of FY26 (DRHP p.166).

Business: premises: the registered office, plant and SEZ unit are all leased (DRHP p.34) → the building work in the objects is on leased plots → ₹7.9 crore of the issue goes to construction there (DRHP p.95).

Regulation: licences and filings: the Kondhwa unit ran without a factory licence or shop registration from April 2020 to January 2025 (DRHP p.25) → authorities may still act on past lapses → some TDS returns were filed up to 427 days late and labour welfare returns up to 1,169 days late (DRHP p.32, DRHP p.33).

Legal: cheque dishonour: 5 criminal cheque-dishonour complaints are pending against the company, involving ₹0.32 crore (DRHP p.38) → adverse orders bring payments and damage to reputation → the most recent was filed in 2026 over cheques of ₹0.15 crore returned for insufficient funds (DRHP p.310).

Legal: tax: 10 tax matters involve ₹4.4 crore against the company (DRHP p.38) → demands may have to be paid → an income tax demand of ₹0.93 crore for AY 2024-25 is pending (DRHP p.312).

Promoters: group companies have objects in the same line and there is no non-compete (DRHP p.43) → business may be shared between them → the promoters would still hold about 59.1% after the issue (our arithmetic, DRHP p.86).

Issue-specific: the objects rely on quotations and approvals not yet obtained (DRHP p.98, DRHP p.325) → delays may shift the schedule → ₹13.1 crore of building and machinery is scheduled for FY27 (DRHP p.95).

18Litigation and regulatory matters

Cases against Steam Equipments and its promoters

Criminal: the company complaints are under Section 138 of the Negotiable Instruments Act, filed between 2020 and 2026 by suppliers including Sick India Private Limited, Maharashtra Switchgears and Cables Corporation and Wika Instruments India Pvt. Ltd. (DRHP p.309, DRHP p.310). Tax: the company's income tax demands run from AY 2011-12 to AY 2024-25, and the company says most arise from self-assessment tax not being counted, with corrections filed (DRHP p.311, DRHP p.312).

The AY 2021-22 notice to Steamlok alleges ₹12.9 crore of income escaped assessment because no return was filed (DRHP p.318). Regulatory: no actions by statutory or regulatory authorities against the company, promoters or directors (DRHP p.310, DRHP p.313). Directors and officers: none (DRHP p.314, DRHP p.319). Credit: Nayab Rashid Syed's credit report shows an overdue of ₹2.63 lakh on a housing loan, and the company's credit report shows past cheque dishonours, since cleared (DRHP p.319, DRHP p.320). Creditors: 56 small enterprises were owed ₹4.5 crore and 259 other creditors ₹9.1 crore at March 31, 2026 (DRHP p.320).

19Related-party transactions

Source: DRHP p.64, converted from ₹ lakh. Relatives Ayesha Pasha and Jaffer Sayed were paid ₹0.14 crore in FY26, and Nida Rasheed Syed ₹0.03 crore (DRHP p.64). Balances at March 31, 2026: loans payable to Nayab Rasheed Syed ₹1.65 crore and to Rasheed Syed ₹1.01 crore; loans receivable from Khaga Energy ₹0.32 crore and Nclosure & Controls ₹0.14 crore (DRHP p.64, DRHP p.65). Steamlok Engineering sold ₹0.26 crore of materials to the company in FY24, before it became a subsidiary (DRHP p.64).

What appeared or changed in the two years before filing: the rent to Nayab Rasheed Syed starts in FY26; the loan from Nayab Rasheed Syed starts in FY25; the company bought 51% of Steamlok Engineering from the promoters for shares in February 2025; and the loan to Nclosure & Controls appears in FY25 (DRHP p.64, DRHP p.65, DRHP p.84). The company says its related-party transactions were at arm's length (DRHP p.26).

20What the offer document does not say

Customers and suppliers are not named. Units sold and prices are not given, so growth cannot be split into volume and price. Margins by line of business are not given. The size of the market for steam and water analysis systems is not given. What Steamlok Engineering earned before it was bought, and how ₹60,200 a share was reached, are not explained beyond a valuer's report (DRHP p.267).

How much extra output the new building and machines give is not stated. The financial details of the group companies are left to the company website (DRHP p.239). The issue size in rupees, the price band, the lot size, general corporate purposes and issue expenses are blank (DRHP p.95, DRHP p.129). The after-issue shareholding is blank (DRHP p.86).

Some inconsistencies are recorded as document matters, not business ones: the contingent liabilities summary shows none and then lists ₹16.3 crore of disputed tax (DRHP p.62); the risk factors say the promoters will "collectively own 82.74%" after the offer which is the pre-issue figure (DRHP p.45); the KPI notes say EBITDA adds back finance cost and depreciation to profit before tax while the reported EBITDA also subtracts other income (DRHP p.164, DRHP p.295);

RoCE is 20.04% in one table and 22.38% in another (DRHP p.164, DRHP p.137); the objects chapter prints Rasheed Syed's holding as 10 shares (DRHP p.94); the risk factor table labels FY25 customer figures standalone while the business chapter labels them consolidated (DRHP p.23, DRHP p.180); the risk factors give 6 cheque cases against the company and 4 against the subsidiary while the litigation chapter lists 5 and 3 (DRHP p.42, DRHP p.38);

the risk factors name Rasheed Syed's credit report as showing overdues while the litigation chapter names Nayab Rashid Syed's (DRHP p.42, DRHP p.319); the management chapter says no loans were taken from directors while the accounts show ₹2.7 crore of them (DRHP p.220, DRHP p.266); the promoters chapter says the promoter is not related to any director while the management chapter lists the promoters as spouses and parents of a director (DRHP p.237, DRHP p.218);

the risk factors say the SEZ unit has not been used for manufacturing while the objects chapter says it is used for manufacturing and exports (DRHP p.29, DRHP p.112); the capital structure says the offer was approved in January 2025 while the offer chapter says September 2026 (DRHP p.78, DRHP p.57); and the business strengths list steam boilers, pressure reducing stations and control valves

which do not appear in the product list (DRHP p.184, DRHP p.163).

21Five questions for management

1. Who are the customers behind the ₹20.5 crore of receivables older than a year, and how much of it is warranty retention rather than overdue payment?
2. What did Steamlok Engineering earn in the years before February 2025, and what assumptions supported a price of ₹60,200 a share for a company with ₹1,00,000 of paid-up capital?
3. What volumes and average prices lie behind the move from ₹20.3 crore to ₹57.3 crore of revenue, by line of business?
4. Which products are made at the SEZ unit today, and what extra output, in units, will the crane and CNC machine add?
5. How will receivable days fall from 297 to the projected 177 in FY27, and what happens to the working capital plan if they do not?

1Sources and cited facts

This study was read from 1 document the company filed. The 195 figures it cites are listed under the document each came from, with the page and the sentence as printed.