Suntek Axpress India Limited IPO

01At a glance

What the company does: arranges road, air and rail transport of automobile spare parts and components, mostly as part truck loads that combine several customers' consignments in one hired vehicle, and runs leased warehouses for storage and distribution; it owns no trucks and no warehouses (DRHP p.129, DRHP p.130).

Who pays it: 641 customers in FY26, all in the automobile and auto-component sector: vehicle makers, component makers and spare-part distributors (DRHP p.26, DRHP p.138). The document does not name any customer; the largest was 7.13% of FY26 revenue and the top ten 45.72% (DRHP p.26).

Why it is raising money: ₹25.0 crore of the fresh issue goes to working capital, ₹13.0 crore in FY27 and ₹12.0 crore in FY28, with the rest, capped at the lower of 15% of gross proceeds or ₹10 crore, for general corporate purposes (DRHP p.88, DRHP p.95). There is no offer for sale (DRHP p.1).

How fast it has grown: revenue from ₹156.7 crore in FY24 to ₹182.2 crore in FY26, about 7.8% a year, and profit after tax from ₹3.0 crore to ₹8.5 crore, about 69.2% a year (our arithmetic, DRHP p.100). FY25 revenue was flat, up 0.26% (DRHP p.268).

The one thing to understand: profit nearly tripled on revenue that grew 16.3% over two years, because freight, transport and cargo handling costs fell from 78.36% of revenue in FY24 to 73.82% in FY26 (DRHP p.32), and the cash did not follow: operating cash flow was ₹0.73 crore in FY26 against ₹8.5 crore of profit (DRHP p.59).

02The business, in plain words

What Suntek Axpress does

Suntek Axpress is a Gurugram logistics company, incorporated in February 2020, that organises the movement and storage of automobile parts (DRHP p.129). A customer places an indent, the company fixes a rate, hires a vehicle from one of its 536 empanelled transport vendors, picks up the goods, tracks them, delivers them, collects a proof of delivery and then invoices (DRHP p.136, DRHP p.137). It ran 71 branch offices and 67 leased warehouses of 3,85,560 square feet across 14 states at March 31, 2026 (DRHP p.137).

A vehicle maker, component maker or spare-part distributor needs parts moved between plants, warehouses, dealers and service centres → it books road, air or rail movement and, for some, warehouse space → the company consolidates loads, hires trucks from vendors, books air cargo space with airlines and rail wagons, and routes goods through its leased hubs → it is paid freight per assignment after delivery, plus separate warehousing charges where storage is dedicated (DRHP p.134, DRHP p.135, DRHP p.133).

Road part truck load movement is the core: every rupee of road revenue in all three years was part truck load business, 4,95,984 road consignments in FY26 (DRHP p.142). Air is used for urgent consignments, such as a component shortage on a customer's assembly line, and rail for long hauls with road legs at each end (DRHP p.35, DRHP p.134). Dedicated warehousing for 35 customers in FY26 is billed separately; storage inside transport assignments is built into freight (DRHP p.135, DRHP p.133).

The model is asset-light by design: transport vendors are hired trip by trip, warehouses are leased, and vendors pay their drivers and vehicles (DRHP p.27, DRHP p.137). The company had 436 permanent employees at March 31, 2026, of whom 315 in operations (DRHP p.146, DRHP p.147).

Earnings equation: Revenue = consignments handled × revenue per consignment, by mode. In FY26, 4,95,984 road consignments brought ₹153.9 crore, 7,662 air consignments sat inside a ₹22.5 crore line that also includes cargo handling, and 2,373 rail consignments brought ₹1.7 crore (DRHP p.132, DRHP p.133).

03Where the money comes from

Source: DRHP p.133, converted from ₹ lakh. Road fell from 89.07% of revenue in FY24 to 84.46% in FY26, while air and cargo handling rose from 8.16% to 12.34% (DRHP p.133). By industry, 100% of revenue in all three years came from the automobile and ancillary sector (DRHP p.133). By state, Maharashtra brought 32.97% of FY26 revenue, Haryana 23.78%, Tamil Nadu 16.43%, Karnataka 11.28% and Gujarat 5.13%, together 89.59% (DRHP p.133, DRHP p.134, DRHP p.139). The company has no export business (DRHP p.147).

Gross billing was ₹195.3 crore in FY26, reduced by ₹9.7 crore of credit notes to customers and ₹3.4 crore of inter-branch supplies (DRHP p.236).

Suntek Axpress customers: how concentrated the revenue is

Source: DRHP p.26, DRHP p.273, DRHP p.274. No single customer is large: the largest brought 7.13% of FY26 revenue, ₹13.0 crore (DRHP p.142). The top ten together brought 45.72%, so a little under half of revenue sits with ten unnamed accounts (DRHP p.26). The concentration that is total is the sector: every customer is in automobiles (DRHP p.26).

The customer count fell from 812 in FY24 to 715 in FY25 and 641 in FY26, while average revenue per customer rose from ₹0.19 crore to ₹0.28 crore; the company attributes this to more business from existing customers and dropping smaller, non-recurring accounts (DRHP p.139). Repeat customers were 68.17% of the FY26 customer count (DRHP p.139). On the supply side, the top ten vendors were 28.07% of FY26 cost of services and the largest 5.73% (DRHP p.32).

04The growth record

Suntek Axpress financials: revenue, profit and margins

Source: DRHP p.100, DRHP p.59, DRHP p.57, converted from ₹ lakh; the same summary is in the abridged prospectus (AP p.6). Revenue went from ₹156.7 crore in FY24 to ₹182.2 crore in FY26, and profit after tax from ₹3.0 crore to ₹8.5 crore (DRHP p.100).

Our arithmetic over FY24 to FY26: revenue grew about 7.8% a year (our arithmetic, DRHP p.100), EBITDA about 72.5% a year (our arithmetic, DRHP p.100) and profit after tax about 69.2% a year (our arithmetic, DRHP p.100). EBITDA margin moved from 2.70% to 6.91%, up 421 basis points, so from 2.7% to 6.9% rounded (DRHP p.100).

The year ends on March 31 throughout, and the restatement reduced profit only for a gratuity liability the audited accounts had not booked: FY24 profit from ₹3.08 crore to ₹2.97 crore and FY25 from ₹5.05 crore to ₹5.01 crore (DRHP p.223). Gratuity is provided on a management estimate, not an actuarial valuation (DRHP p.43). EBITDA here excludes other income (DRHP p.100).

Operating cash flow was ₹0.73 crore in FY26 because trade receivables rose ₹5.5 crore and payables and other liabilities fell ₹5.8 crore as older vendor dues were settled (DRHP p.59, DRHP p.272). Other income, almost all interest on deposits and tax refunds, was ₹0.62 crore, 5.4% of FY26 profit before tax of ₹11.4 crore (our arithmetic, DRHP p.58). Debt to equity was 0.55 times in FY26, about 0.6× (DRHP p.100).

Borrowings less fixed deposits were ₹2.3 crore at March 31, 2026, about 0.2× FY26 EBITDA (our arithmetic, DRHP p.263); the deposits are held under lien for an overdraft (DRHP p.263). Contingent liabilities at March 31, 2026 were ₹0.48 crore, a disputed GST demand (DRHP p.60). Receivable days were 75, 79 and 75, and payable days 81, 80 and 56 (DRHP p.91).

Receivables more than six months old were ₹3.6 crore at March 31, 2026, with no provision for doubtful debts (DRHP p.31). Sales to the group company Suntek Logistics India Private Limited were ₹9.0 crore in FY26, 4.93% of revenue (DRHP p.29). The summary counts 3 tax matters against the promoters, about ₹0.01 crore in all (DRHP p.33).

Customer concentration is moderate and sector concentration total: the largest FY26 customer was 7.13% of revenue and the top ten 45.72% (DRHP p.26), while all revenue came from the automobile sector (DRHP p.26). The top ten vendors were 28.07% of FY26 cost of services (DRHP p.32).

05What the growth is made of

Revenue rose ₹25.5 crore from FY24 to FY26 (our arithmetic, DRHP p.133). Road added ₹14.3 crore, air and cargo handling ₹9.7 crore and dedicated warehousing ₹2.1 crore, while rail fell ₹0.60 crore (our arithmetic, DRHP p.133).

Road consignments rose from 4,22,487 in FY24 to 4,95,984 in FY26, 17.4% more (DRHP p.132). At FY24 road revenue per consignment, that volume is worth roughly ₹24.3 crore of extra revenue (our arithmetic, DRHP p.142); actual road revenue rose ₹14.3 crore, so revenue per road consignment fell about 6% (our arithmetic, DRHP p.142). The document does not give weight or distance, so the fall cannot be split into price and the size or length of consignments.

Air and cargo handling went the other way: revenue rose 75.9% while air consignments fell from 9,280 to 7,662 (our arithmetic, DRHP p.133, DRHP p.132). The line also contains cargo handling and other taxable services, which the document does not split out, so growth in air revenue cannot be tied to air volume (DRHP p.133).

The profit growth came mostly from cost, not revenue. In FY25, revenue rose 0.26% while freight, transport and cargo handling costs fell 5.51%, which the company describes as a focus on more profitable business (DRHP p.268, DRHP p.271). Gross margin, revenue less cost of services, went from 14.24% in FY24 to 17.21% in FY26 (DRHP p.268, DRHP p.271). The document does not disclose freight rates paid or charged, so the source of the cost fall cannot be separated further. That is the finding.

06Earnings quality

The item that needs explaining is cash. Over three years the company reported ₹16.5 crore of profit and generated ₹3.2 crore from operations (our arithmetic, DRHP p.59). Two things absorbed the difference. Receivables grew from ₹32.8 crore to ₹40.2 crore (DRHP p.57). And trade payables fell from ₹31.7 crore to ₹19.9 crore as the company paid down old vendor dues; payables outstanding one to two years dropped from ₹8.0 crore to ₹0.50 crore in FY26 (DRHP p.57, DRHP p.263). The gap was funded by an overdraft that rose from ₹1.5 crore to ₹11.2 crore (DRHP p.262).

No provision for doubtful debts was made in any year, though ₹0.07 crore of receivables were more than three years old at March 2026 (DRHP p.233). The company states that receivables include unbilled revenue (DRHP p.32).

07The balance sheet

At March 31, 2026 total assets were ₹57.5 crore: trade receivables ₹40.2 crore, cash and bank balances ₹3.3 crore, other non-current assets ₹8.8 crore (mostly fixed deposits of ₹6.2 crore and lease security deposits of ₹2.4 crore), short-term loans and advances ₹3.0 crore and property, plant and equipment ₹1.9 crore (DRHP p.57, DRHP p.232). Against that: short-term borrowings ₹11.4 crore, long-term borrowings ₹0.19 crore, trade payables ₹19.9 crore, other current liabilities ₹4.2 crore and equity ₹21.2 crore (DRHP p.57).

Borrowings were an overdraft against fixed deposits from ICICI Bank of ₹5.7 crore within a ₹6.2 crore limit, an overdraft against directors' property and their personal guarantee of ₹5.5 crore within a ₹15.0 crore limit, and equipment and vehicle loans of ₹0.42 crore (DRHP p.255). Fixed deposits totalled ₹9.4 crore and are held under lien for the overdraft (DRHP p.263). Contingent liabilities were ₹0.48 crore and there were no bank guarantees or capital commitments (DRHP p.60). Debt service coverage was 9.19 times in FY26 (DRHP p.242).

Source: DRHP p.259, DRHP p.88. No issue money is earmarked for repaying debt; the company says funding working capital from the proceeds is expected to reduce its reliance on short-term borrowings (DRHP p.90). Its own estimate for March 31, 2027 shows no short-term borrowings in the working capital funding (DRHP p.91). Net worth after the issue cannot be stated because the price is blank (DRHP p.259).

08What the money is for

Suntek Axpress IPO objects: what the money is for

Source: DRHP p.88, DRHP p.93. The share of the gross issue is blank because the price is not set (DRHP p.88). The ₹25.0 crore is scheduled as ₹13.0 crore up to FY27 and ₹12.0 crore up to FY28 (DRHP p.95). The company's own estimate puts its working capital requirement at ₹25.3 crore at March 31, 2027 and ₹30.9 crore at March 31, 2028, assuming receivable days of 77 and payable days cut to 40 (DRHP p.91). Those are the company's estimates, certified by its auditor, not figures from its accounts (DRHP p.91).

General corporate purposes may include acquiring or hiring land for warehouses, alliances, repayment of borrowings and capital expenditure (DRHP p.92). The objects have not been appraised by any bank or financial institution, and no monitoring agency has been appointed yet; one is required only if the issue exceeds ₹50 crore (DRHP p.95, DRHP p.96). A pre-IPO placement of up to 20% of the issue may be made before the red herring prospectus, which would reduce the fresh issue (DRHP p.74).

Into the business: up to 36,24,000 new shares; the rupee amount depends on the price, which is not set (DRHP p.74). To selling shareholders: nothing; there is no offer for sale (DRHP p.1).

09Who is selling

Suntek Axpress IPO offer for sale: who is selling

Nobody. The issue is entirely a fresh issue of up to 36,24,000 equity shares of ₹10 each, and the offer for sale is nil (DRHP p.1, AP p.1). The promoters and promoter group will not take part in the issue (DRHP p.87).

10Promoters

The document names three promoters: Khushi Ram Sharma, Renu K Sharma and Sunil Khushiram Sharma, who together hold 99.80% before the issue (DRHP p.178). The document states that Khushi Ram Sharma is the husband of Renu K Sharma and the father of Sunil Khushiram Sharma, and Renu K Sharma the mother of Sunil Khushiram Sharma (DRHP p.182).

Khushi Ram Sharma, aged 57, is Managing Director with over 24 years in logistics and transport; Sunil Khushiram Sharma, aged 30, is Whole Time Director with over 8 years; both have been directors since incorporation and were reappointed for five years from August 8, 2026 (DRHP p.178, DRHP p.179, DRHP p.184, DRHP p.185). Renu K Sharma, aged 50, has over 8 years in the sector and has been a non-executive director since June 8, 2026, after serving as an additional director from March 27, 2025 and an executive director from September 30, 2025 (DRHP p.191).

Before this company, Khushi Ram Sharma ran logistics through Axpress Logistics India Private Limited, jointly promoted with Vinod Sharma, described as a brother; after differences in 2019 that company stopped active business and is kept alive only to recover receivables (DRHP p.40, DRHP p.43). SEBI refused an exemption from naming Vinod Sharma and the entities connected to Vinod Sharma, including Vinsum Axpress India Private Limited, a logistics business with no non-compete, as promoter group, so disclosures about them rest on public information only (DRHP p.40).

Pay: director remuneration to Khushi Ram Sharma was ₹0.17 crore in each year; Renu K Sharma was paid ₹0.12 crore in FY24 and FY25 and ₹0.09 crore in FY26; Sunil Khushiram Sharma was paid nothing in FY26 (DRHP p.61, DRHP p.188). Pay to the promoters went from about ₹0.29 crore in FY24 to about ₹0.26 crore in FY26 (our arithmetic, DRHP p.61).

Rent: the promoters lease premises, including the registered office, to the company; rent to them was ₹0.43 crore in FY24 and ₹0.62 crore in FY26 (DRHP p.41). A new registered office lease from Khushi Ram Sharma and Renu K Sharma, from August 1, 2026, is ₹2,75,000 a month for 500 square feet, about ₹0.33 crore a year (our arithmetic, DRHP p.149).

Guarantees and pledges: the ₹15.0 crore overdraft is secured on directors' property and their personal guarantee (DRHP p.226); no promoter shares are pledged (DRHP p.78).

Group interests: the group company Suntek Logistics India Private Limited, owned 50% by Khushi Ram Sharma and 25% each by Sunil Khushiram Sharma and Sonia Khushiram Sharma, runs a fleet and both buys from and sells to the company under a non-compete agreement of August 19, 2026 (DRHP p.205, DRHP p.28). Other promoter ventures include Suntek Cargo, S R Innovative Packaging, Suntek Trans Cargo LLP and K.R.Sharma & Sons (HUF) (DRHP p.178, DRHP p.179).

Cases: 3 tax matters against the promoters, about ₹0.01 crore in all, and none criminal or regulatory (DRHP p.33). The promoters have not been declared wilful defaulters (DRHP p.181).

Promoter economics: Khushi Ram Sharma and Sunil Khushiram Sharma subscribed 50,000 shares each at ₹10 on incorporation in February 2020 (DRHP p.76). On March 25, 2021 Khushi Ram Sharma gifted 35,000 shares to Renu K Sharma, and on March 29, 2025 Sunil Khushiram Sharma transferred 50 shares each to Sakshi Sharma, Satish Kumar, Phool Chand Sharma and Sonia Khushi Ram Sharma, with no price shown (DRHP p.77, DRHP p.78). A 99:1 bonus followed on August 12, 2026 (DRHP p.77). Average cost per share is ₹0.33 for Khushi Ram Sharma, ₹0.10 for Sunil Khushiram Sharma and nil for Renu K Sharma (DRHP p.80).

11Who already owns it

Suntek Axpress promoter holding before and after the IPO

Source: DRHP p.80. The promoters hold 99.80% and the promoter group the remaining 0.20% of 1,00,00,000 shares; there is no public shareholder and there are seven shareholders in all (DRHP p.80, DRHP p.82). The post-issue holding is left blank (DRHP p.80). If all 36,24,000 shares are issued, the share count becomes 1,36,24,000 and the promoters' 99.80% becomes about 73.3%, or 73.4% with the promoter group (our arithmetic, DRHP p.80).

There is no investor outside the family: no fund, company or other holder owns any share (DRHP p.80). The promoter group's shares came from transfers by Sunil Khushiram Sharma in March 2025, a transfer from Phool Chand Sharma to Prince Sharma in July 2026, and the 2026 bonus (DRHP p.78, DRHP p.83, DRHP p.77).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹156.7 crore in FY24 to ₹182.2 crore in FY26 and profit after tax from ₹3.0 crore to ₹8.5 crore (DRHP p.100).
• Receivable days were 75 in FY24 and 75 in FY26, with 79 in between (DRHP p.91).
• Vendor dues paid down: payable days fell from 81 to 56 and trade payables from ₹31.7 crore to ₹19.9 crore (DRHP p.91, DRHP p.57).
• Borrowings up: from ₹1.8 crore at March 2024 to ₹11.6 crore at March 2026, mainly the overdraft (DRHP p.262).
• Fewer customers, larger accounts: 812 customers in FY24, 641 in FY26 (DRHP p.139).
• Promoter pay: from about ₹0.29 crore in FY24 to about ₹0.26 crore in FY26 (our arithmetic, DRHP p.61).
• Group company dealings grew: sales to Suntek Logistics India Private Limited went from ₹0.11 crore in FY24 to ₹9.0 crore in FY26, and purchases from it from ₹1.2 crore to ₹5.5 crore (DRHP p.29). A non-compete agreement with it was signed on August 19, 2026 (DRHP p.28).
• Bonus issue: 99:1, 99,00,000 shares allotted on August 12, 2026, the last allotment before the IPO, with no price paid (DRHP p.77).
• Pre-IPO placement: none in the 18 months before the DRHP (DRHP p.103).
• The company became public: shareholders resolved on April 19, 2025 and the fresh certificate is dated May 1, 2025 (DRHP p.174).
• Auditor: no change in the last three years (DRHP p.65).
• Board and officers: Phoolchand Sharma joined as an independent director in January 2026, Sudam Maitra joined in February 2026 and left in August 2026, Kanwar Nitin Singh joined in September 2026, a CFO was appointed in February 2026 and a company secretary in March 2026 (DRHP p.191, DRHP p.202).
• A share transfer involving a director: Phool Chand Sharma received 50 shares from Sunil Khushiram Sharma in March 2025 and passed them to Prince Sharma on July 30, 2026 at no price (DRHP p.78, DRHP p.103).
• Late filings caught up: several MSME, MGT-14 and PAS-6 forms were filed in August and September 2026, up to 1,026 days late (DRHP p.36, DRHP p.37).

13Capacity and expansion

Source: DRHP p.28, DRHP p.141. The company owns no vehicles or warehouses and says installed capacity and utilisation, as asset-owning companies report them, do not apply to it (DRHP p.149). Transport capacity is hired: empanelled vendors numbered 738, 516 and 536 at the three year ends (DRHP p.27).

Capital expenditure was ₹0.85 crore, ₹1.1 crore and ₹0.52 crore in the three years (DRHP p.59). None of the issue money is earmarked for capacity; the company says it intends to add warehouses through further leases where customers need them (DRHP p.141). The document does not give warehouse occupancy, so space cannot be tied to revenue.

14Market size and industry structure

Suntek Axpress industry: market size and growth

As claimed: the Industry Overview chapter was not commissioned from a research firm; it is compiled from public sources, the IMF World Economic Outlook, the finance ministry's monthly economic reviews, the RBI annual report, IBEF, Invest India, PIB, NITI Aayog and an NCAER logistics study, and the company says it has not verified them (DRHP p.107, DRHP p.111, DRHP p.113, DRHP p.115, DRHP p.125).

The chapter, citing IBEF, says the Indian logistics sector was valued at US$250 billion in 2021 and was predicted to reach US$380 billion by 2025, at 10% to 12% a year (DRHP p.114). It also says logistics is predicted to account for 14.4% of GDP and employs 22 million people (DRHP p.114).

The part that is addressable: the company sells part truck load road movement, air and rail freight and warehousing to the automobile sector (DRHP p.130). The chapter does not size automotive logistics, part truck load road freight or third-party logistics on their own, and gives no rupee figure for any of them.

What the company is today: with FY26 revenue of ₹182.2 crore against a market stated only in US dollars and only for the whole sector, the company's share cannot be worked out from the document (DRHP p.100, DRHP p.114).

Size over time: the chapter quotes several overlapping figures from different years: ICRA's estimate of 10.5% annual growth through 2025 after 7.8% over the previous five years, and a market of about US$215 billion "in the next two years" against US$160 billion, both as Invest India puts them (DRHP p.116, DRHP p.117). NCAER puts India's total logistics cost at ₹2,401,000 crore in 2023-24, 7.97% of GDP, and says it is growing more slowly than non-services output (DRHP p.121). These are the sources' estimates and projections, not the company's accounts.

Segments: by mode, roads carried 73% of the logistics sector in FY21, rail 18%, water 5% and air 5% (DRHP p.115). A NITI Aayog report quoted later puts freight movement at 59% road, 35% rail, 6% waterways and under 1% air (DRHP p.126). The chapter classifies providers from first-party to fourth-party and integrated logistics; the company is a third-party provider (DRHP p.116, DRHP p.129). For warehousing, the chapter says the Indian market is predicted to reach US$34.99 billion, growing 15.64% a year from 2022 to 2027, and that 3PL and logistics firms were the largest users of warehouse space for five years (DRHP p.120).

What drives demand: the chapter names e-commerce, manufacturing growth under Make in India, the National Logistics Policy of September 2022, PM GatiShakti, dedicated freight corridors of 1,724 km and multi-modal logistics parks (DRHP p.114, DRHP p.116, DRHP p.119). For the company's own customers, it notes that passenger vehicle sales reached an all-time high in the first quarter of FY27 and that two-wheelers, commercial vehicles and tractors grew at double digits (DRHP p.114). It quotes India's growth at 7.7% in 2025-26 and the IMF's projection of 6.4% in 2026-27 (DRHP p.111, DRHP p.114).

Structure: the chapter calls logistics highly fragmented, with over 1,000 active participants (DRHP p.114). The company's business chapter names two listed logistics companies, Neptune Logitek Limited and Sampark India Logistics Limited, and adds national logistics firms, specialised automotive providers, regional part truck load operators, freight aggregators and manufacturers' in-house logistics as competitors (DRHP p.145, DRHP p.46). Customers award business through quotations and periodic rate negotiations (DRHP p.46). The chapter names no market shares.

Inputs and trade: NCAER's survey puts road costs at ₹11.03 per tonne-km for light trucks and ₹1.51 for 55-tonne trailers, with fuel 42.1% of road transport cost and tolls 6.9% (DRHP p.121, DRHP p.122). Rail averages ₹1.96 per tonne-km, air ₹72, and warehousing about ₹30 per square foot a month (DRHP p.122, DRHP p.123, DRHP p.124). Logistics cost is highest in transport equipment, at 21.4% of output (DRHP p.121). For the company, freight, transport and cargo handling were 73.82% of FY26 revenue (DRHP p.32). It does no export business (DRHP p.147).

Rules: the regulations chapter lists the Carriage by Road Act, 2007, the Motor Vehicles Act, 1988, the Carriage by Air Act, 1972, the Warehousing (Development and Regulation) Act, 2007 and state shops and establishments laws (DRHP p.159, DRHP p.160, DRHP p.161). The company has applied for registration under the Carriage by Road Act and several shops and establishments registrations are pending (DRHP p.285).

What the chapter says can go wrong: congested and inadequate roads, ports and railways, fragmentation, multiple layers of tax and compliance, last-mile difficulties, skill shortages and theft (DRHP p.125, DRHP p.126). Rail line capacity utilisation on the Howrah to Delhi and Delhi to Mumbai corridors runs at 115% to 150% (DRHP p.127). It notes energy prices about 25% above prewar levels after the Middle East conflict (DRHP p.108). It does not discuss the automobile cycle, which the risk factors treat as the company's main exposure (DRHP p.26).

15Competitive position

Suntek Axpress competitors

Source: DRHP p.101, converted from ₹ lakh. The document gives peers' debt to equity, not borrowings (DRHP p.101). It says the two may differ in business model, scale, services, customers and asset ownership and are not directly comparable in all respects (DRHP p.145).

What the company puts forward: an asset-light model, relationships in the automobile and auto-component segment, a network of 71 branches across 14 states, repeat business, technology for tracking and billing, and promoters with over 40 years of combined experience (DRHP p.137, DRHP p.140). Against that: no long-term contracts with customers or vendors, all revenue from one sector, 89.59% of revenue from five states, a group company and an estranged relative's company in the same trade, and competition decided on quotations (DRHP p.37, DRHP p.32, DRHP p.139, DRHP p.40, DRHP p.46). Its RoCE is the highest of the three, on the smallest capital base (DRHP p.101).

16Peers the company named

Peers named in the offer document: Neptune Logitek Limited and Sampark India Logistics Limited (DRHP p.99).

Both are listed logistics companies with face value ₹10, reporting standalone FY26 figures (DRHP p.99). Neptune Logitek is about 1.3 times the company's revenue and Sampark India Logistics about 1.2 times (our arithmetic, DRHP p.101). Neptune Logitek's revenue fell in FY26 from ₹257.3 crore to ₹233.7 crore and its debt to equity has come down from 4.70 in FY24 (DRHP p.101). The document prints their P/E on September 28, 2026 closing prices as 8.19 and 9.68, an average of 8.94 (DRHP p.98, DRHP p.99). The company's FY26 EPS after the bonus is ₹8.50 (DRHP p.97). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Suntek Axpress IPO risks

One sector: all FY26 revenue of ₹182.2 crore came from automobile and auto-component customers (DRHP p.26). A slowdown in vehicle production or a shift in how parts are distributed would cut volumes, and the company says its branches and vendors are configured for this sector and hard to redeploy quickly (DRHP p.26).

Customers: the top ten customers brought 45.72% of FY26 revenue and none is under a long-term or exclusive contract (DRHP p.26, DRHP p.37). The customer count fell from 812 to 641 in two years (DRHP p.26).

Suppliers: the company owns no vehicles; 536 transport vendors carry its freight trip by trip, and the top ten took 28.07% of FY26 cost of services (DRHP p.27, DRHP p.32). Freight, transport and cargo handling were 73.82% of FY26 revenue, so a rise in diesel, tolls or vendor rates that cannot be passed on moves profit sharply (DRHP p.32).

Cash and receivables: operating cash flow was −₹2.7 crore in FY25 and ₹0.73 crore in FY26 (DRHP p.29). Receivables were ₹40.2 crore at March 2026, 22.05% of revenue, of which ₹3.6 crore was more than six months old with no provision (DRHP p.31).

Financial: the overdraft rose to ₹11.2 crore by March 2026 and ₹15.0 crore of the limits rest on directors' property and personal guarantee (DRHP p.262, DRHP p.226). Finance costs doubled to ₹1.2 crore in FY26 (DRHP p.265).

Geography: Maharashtra, Haryana, Tamil Nadu, Karnataka and Gujarat brought 89.59% of FY26 revenue (DRHP p.139).

Promoters and related parties: the group company Suntek Logistics India Private Limited bought ₹9.0 crore of services from the company and sold it ₹5.5 crore in FY26, under a non-compete signed in August 2026 (DRHP p.29, DRHP p.28). Vinsum Axpress India Private Limited, run by a relative SEBI required to be named as promoter group, has no non-compete and uses the word Axpress (DRHP p.40).

Compliance: 25 delayed filings with the Registrar of Companies, the longest 1,026 days, and delays in provident fund, ESI and professional tax payments in each of the three years (DRHP p.36, DRHP p.37). Registration under the Carriage by Road Act is pending (DRHP p.34).

Issue-specific: promoters' average cost is ₹0.10 to ₹0.33 a share or nil, and the 99:1 bonus was allotted seven weeks before filing (DRHP p.80, DRHP p.77). The price, the general corporate purposes amount and expenses are blank (DRHP p.88).

18Litigation and regulatory matters

Cases against Suntek Axpress and its promoters

The summary puts the company's matters at about ₹0.66 crore across one criminal and five tax matters (DRHP p.33). Criminal: one traffic case against the company, none against promoters, directors or key personnel (DRHP p.276, DRHP p.278).

Tax: TDS defaults of ₹53,440 for the company (DRHP p.276); against Khushi Ram Sharma an adjustment notice of ₹10,052 and a 2012 demand of ₹26,620 with interest of ₹61,643; against Sunil Khushiram Sharma a defective-return notice, not quantified (DRHP p.277, DRHP p.278). Against director Phool Chand Sharma, a proposed adjustment of ₹60,420 (DRHP p.279). Group company: a TDS default of ₹730 (DRHP p.280).

Regulatory: no action against the company or promoters, and no SEBI or exchange action against promoters in five years (DRHP p.276, DRHP p.278). Civil: none material (DRHP p.277). Dues to one material creditor were ₹1.5 crore at March 31, 2026 (DRHP p.280).

19Related-party transactions

Source: DRHP p.61, DRHP p.244, converted from ₹ lakh. Suntek Logistics India Private Limited lent the company ₹1.2 crore in FY25, repaid in FY26 (DRHP p.245). Loans and advances outstanding to related parties were ₹1.6 crore at March 2026, ₹0.77 crore to S R Innovative Packaging and ₹0.80 crore to Suntek Logistics India Private Limited (DRHP p.235). Relatives of key personnel were paid salaries of ₹0.21 crore in FY26 and Satish Rampat Sharma was paid ₹0.22 crore for transport (DRHP p.244).

What appeared or changed in the two years before filing: sales to Suntek Logistics India Private Limited grew from ₹0.11 crore to ₹9.0 crore (DRHP p.29); the ₹1.2 crore loan from it appeared in FY25 and was repaid (DRHP p.245); rent to Sunil Khushiram Sharma began in FY25 (DRHP p.244); a salary to Satish Rampat Sharma began in FY26 (DRHP p.244); the non-compete agreement was signed on August 19, 2026 (DRHP p.28); and the new registered office lease from the promoters began on August 1, 2026 (DRHP p.149). The company says the transactions were at arm's length (DRHP p.38).

20What the offer document does not say

No customer or vendor is named. Freight rates, weight or distance per consignment, and margins by mode are not given, so price and volume cannot be separated. Warehouse occupancy and the revenue each warehouse supports are not given. The industry chapter does not size automotive or part truck load logistics. The price band, the post-issue share count, the general corporate purposes amount and offer expenses are blank (DRHP p.88). The financials of Suntek Logistics India Private Limited are left to the company website (DRHP p.205). Information on Vinod Sharma's entities is incomplete by the company's own account (DRHP p.40). No interim period after March 31, 2026 is reported.

Some inconsistencies are recorded as document matters: the basis for issue price states a face value of ₹5 while every other page states ₹10 (DRHP p.97); the general information page leaves the conversion certificate date blank (DRHP p.63); two warehouse entries say the complete address is "to be provided" (DRHP p.149, DRHP p.156); the KPI section carries a broken cross-reference (DRHP p.99); the insurance table repeats March 31, 2025 as a column heading (DRHP p.39); and a tax matter of a director is labelled as one of "our Promoter" with an amount that does not match its description (DRHP p.279).

The litigation chapter lists the GST notices at ₹0.21 crore and ₹0.44 crore while the contingent liability note gives a ₹0.48 crore SGST Pune notice not separately listed there (DRHP p.277, DRHP p.41).

21Five questions for management

1. What were average revenue and vendor cost per road consignment, and per tonne-km, in FY24 and FY26, and how much of the margin gain came from rates rather than mix?
2. Within the ₹22.5 crore air, cargo handling and other taxable services line, how much is air freight and how much cargo handling, given air consignments fell?
3. What services does Suntek Logistics India Private Limited procure from the company for ₹9.0 crore a year, and on what terms compared with unrelated customers?
4. How much of the FY26 receivables of ₹40.2 crore is unbilled revenue, and what has been collected since March 31, 2026 from the ₹3.6 crore older than six months?
5. What share of FY26 revenue came from the five largest automobile groups, counting all their plants and distributors together?

2Sources and cited facts

This study was read from 2 documents the company filed. The 172 figures it cites are listed under the document each came from, with the page and the sentence as printed.