Weldor CNC Machines Limited IPO

01At a glance

What the company does: makes machines that cut, bend, punch, roll and groove metal sheets and plates, chiefly CNC press brakes, which brought 73.03% of FY26 revenue (DRHP p.134, DRHP p.26).

Who pays it: factories in general engineering, steel fabrication, storage and display systems, automotive, electrical, railways, aerospace and solar (DRHP p.134). The largest customer, Riddhi Display Equipment's Limited, brought 16.95% of FY26 revenue and the top ten 58.32% (DRHP p.27). Government and public sector buyers were 7.75% of FY26 revenue (DRHP p.136). All sales were in India (DRHP p.220).

Why it is raising money: ₹21.6 crore of the fresh issue goes to a new factory building and machinery on a plot next to the present plant, and ₹3.0 crore to working capital; the general corporate purposes amount is blank (DRHP p.90). There is no offer for sale (DRHP p.1).

How fast it has grown: revenue from ₹10.5 crore in FY24 to ₹25.3 crore in FY26, about 55.6% a year, and profit after tax from ₹1.5 crore to ₹5.0 crore, about 80.8% a year (our arithmetic, DRHP p.60).

The one thing to understand: the profit has not yet turned into cash. In FY26 the company reported ₹5.0 crore of profit but operating cash flow was −₹2.1 crore, because stock and money owed by customers rose by ₹9.1 crore between them (DRHP p.61). Borrowings went from ₹2.6 crore at March 2025 to ₹8.2 crore at March 2026 and ₹11.9 crore at August 31, 2026 (DRHP p.58, DRHP p.226, DRHP p.47).

02The business, in plain words

What Weldor CNC Machines does

Weldor CNC Machines builds sheet metal machinery. A press brake bends a metal sheet or plate into a set angle; a shearing machine cuts sheets to size; a punch press punches holes and slots; a plate rolling machine rolls plates into curves and cylinders; and a V-grooving machine cuts grooves along a bend line so the sheet bends cleanly (DRHP p.134). The press brakes come in four series, N, S, MS and HBD, from hybrid to fully hydraulic and servo-driven designs (DRHP p.139, DRHP p.140).

A fabricator needs a bending, cutting or rolling machine of a set size → the company buys steel plates, hydraulic parts, motors, servo drives and CNC controls → it cuts, welds, stress-relieves and machines the frame, assembles the hydraulic and electrical systems and runs trials → it delivers, installs and commissions the machine and invoices the customer (DRHP p.142, DRHP p.143, DRHP p.28).

The business began on December 1, 2015 as the partnership firm Weldor CNC Machines and became Weldor CNC Machines Limited, a public company, on December 13, 2024 (DRHP p.163). Some grinding, blackening, fabrication and assembly is done by outside job workers (DRHP p.36).

The plant at Plot 6/A and 6/B, Veraval (Shapar), Rajkot covers about 2,772.72 square metres, about 91.41% of it built up, and is rented from the promoter Maheshkumar Gordhandas Vaghela (DRHP p.91, DRHP p.32). Over FY24 to FY26 the company supplied 175 machines to 146 customers in 16 states and 3 union territories (DRHP p.135). It had 36 people at August 31, 2026, 24 of them in production and design (DRHP p.148).

Sales come through its website, IndiaMART, Instagram campaigns, trade fairs and government tenders, handled by a team of three (DRHP p.144).

Earnings equation: Revenue = machines sold × average price per machine. The company sold 83 machines in FY26, 55 in FY25 and 37 in FY24 (DRHP p.106). Revenue per machine sold works out to about ₹0.30 crore in FY26, though revenue also includes accessories and services, so this is only a rough average (our arithmetic, DRHP p.60, DRHP p.106). The document gives no count or price by product.

03Where the money comes from

By product (₹ crore):

Source: DRHP p.26, converted from ₹ lakh. Press brakes were 88.97% of FY24 revenue and 73.03% of FY26 (DRHP p.26).

By state, Gujarat brought 42.55% of FY26 revenue and Maharashtra 28.83%; in FY24 Karnataka was the largest at 22.02% (DRHP p.41). Government and public sector customers were 6.26% of FY24 revenue and 7.75% of FY26 (DRHP p.136).

Weldor CNC Machines customers: how concentrated the revenue is

Source: DRHP p.145, DRHP p.146. Revenue leans on a few customers: the top ten brought ₹14.8 crore of FY26 revenue of ₹25.3 crore (DRHP p.27). The largest FY26 customer is named as Riddhi Display Equipment's Limited, a storage and display systems maker, at ₹4.3 crore; it was seventh in FY25 at 3.73% (DRHP p.27). The tenth largest FY26 customer, at ₹0.61 crore, is marked as a related party (DRHP p.27).

The other customers are not named. The independent director Tushar Rai Sharma is a director of Riddhi Display Equipments Limited (DRHP p.168), and the chief financial officer Vandankumar Mahendrabhai Dave worked at Riddhi Display Equipments Limited from 2024 to 2026 (DRHP p.178).

Revenue from customers who also bought the year before was 38.90% in FY26, 18.91% in FY25 and 9.17% in FY24 (DRHP p.38). There are no firm commitments from customers (DRHP p.257).

On the supply side, the top ten suppliers were 72.66% of purchases in FY24 and 64.61% in FY26, and the largest 15.82% in FY26 (DRHP p.29, DRHP p.28). There are no long-term supply agreements (DRHP p.29). In FY26, 67.41% of purchases came from Gujarat and imports were about ₹0.01 crore (DRHP p.146, DRHP p.147).

04The growth record

Weldor CNC Machines financials: revenue, profit and margins

Source: DRHP p.58, DRHP p.60, DRHP p.61, DRHP p.106, converted from ₹ lakh.

Revenue went from ₹10.5 crore in FY24 to ₹25.3 crore in FY26 (DRHP p.60). Profit after tax went from ₹1.5 crore to ₹5.0 crore (DRHP p.60). EBITDA margin went from 22.87% to 31.09%, up 822 basis points, so 22.9% → 31.1% rounded (DRHP p.106).

Our arithmetic over FY24 to FY26:

• Revenue grew about 55.6% a year (our arithmetic, DRHP p.60); 33.8% in FY25 and 80.8% in FY26 (our arithmetic, DRHP p.60).
• EBITDA grew about 81.4% a year (our arithmetic, DRHP p.106).
• Profit after tax grew about 80.8% a year (our arithmetic, DRHP p.60).

The year ends on March 31 throughout. FY24 is the partnership firm. Its net worth of ₹0.02 crore at March 2024 is low because the partners withdrew ₹2.7 crore during FY24, which is also why FY24 RoE reads 271.73% (DRHP p.206, DRHP p.104). The restatement cut FY24 profit from ₹2.1 crore in the books to ₹1.5 crore, mainly through a ₹0.81 crore income tax adjustment; FY26 was unchanged (DRHP p.204). No audit qualifications needed adjusting (DRHP p.204).

What sits around the record:

• Cash: operating cash flow was −₹2.1 crore in FY26, after ₹2.5 crore in FY25 and ₹2.3 crore in FY24 (DRHP p.61). In FY26 inventory absorbed ₹5.1 crore and trade receivables ₹4.0 crore (DRHP p.61).
• Other income was ₹0.01 crore, about 0.1% of FY26 profit before tax of ₹6.7 crore (our arithmetic, DRHP p.60). In FY24 it was ₹0.49 crore, about 21.1% of profit before tax, most of it ₹0.41 crore of creditor balances written back (our arithmetic, DRHP p.60, DRHP p.221).
• Debt: borrowings were ₹8.2 crore at March 31, 2026 (DRHP p.226), against ₹4.7 crore at March 2024 and ₹2.6 crore at March 2025 (our arithmetic, DRHP p.58). Total debt to shareholders' funds was 0.95 times, about 1.0× (DRHP p.226). Net debt of ₹7.8 crore was about 1.0× FY26 EBITDA (our arithmetic, DRHP p.58, DRHP p.106). Return on capital employed was 41.91%, so 41.9% rounded (DRHP p.106). At August 31, 2026 borrowings were ₹11.9 crore (DRHP p.47).
• Receivables: receivable days went from 24 in FY24 to 81 in FY25 and 102 in FY26 (DRHP p.99).
• Customers and suppliers: the largest customer was 16.95% of FY26 revenue, so 17.0% rounded (DRHP p.27); the top five 41.25%, so 41.3% (DRHP p.145); the top ten 58.32%, so 58.3% (DRHP p.27); the top ten suppliers 64.61% of FY26 purchases, so 64.6% (DRHP p.28).
• Related-party sales: sales of goods to the group company Weldor Engineering Private Limited were ₹0.71 crore in FY26 and nil in the two years before (DRHP p.226).
• Capacity: the plant ran at 81.82% of its certified capacity in FY26, so 81.8% rounded (DRHP p.31).
• Employees: attrition was 35.48% in FY26, so 35.5% rounded, after 145.45% in FY25 (DRHP p.45).
• Contingent liabilities: none, and no capital commitments (DRHP p.63).
• Use of the issue: ₹21.6 crore of the fresh issue is for the new factory and its machinery and ₹3.0 crore for working capital (DRHP p.90).
• Industry: the company places itself in machine tools within the engineering and capital goods industry (DRHP p.123).

05What the growth is made of

Revenue rose ₹14.9 crore from FY24 to FY26 (our arithmetic, DRHP p.60).

Volume: machines sold went from 37 in FY24 to 55 in FY25 and 83 in FY26 (DRHP p.106). Machines produced went from 37 to 57 to 90 (DRHP p.31).

Press brakes: up from ₹9.3 crore to ₹18.5 crore, about ₹9.2 crore of the increase (our arithmetic, DRHP p.26).

New product lines: shearing machines, punch presses and rolling machines, which had no sales in FY24, brought ₹4.6 crore in FY26 (our arithmetic, DRHP p.26).

Customers coming back: revenue from repeat customers went from ₹0.96 crore in FY24 to ₹9.8 crore in FY26 (DRHP p.38).

Margin: material cost, after the change in stock, fell from 58.21% of revenue in FY24 to 50.91% in FY26 (DRHP p.255). The company puts this down to procurement, inventory management and product mix (DRHP p.255).

The document gives machine counts but no prices and no count by product, so the increase cannot be split into volume and price. That is the finding.

06Earnings quality

The item that needs explaining is working capital. Inventory went from ₹3.8 crore at March 2025 to ₹9.0 crore at March 2026, and finished goods within it from ₹1.2 crore to ₹4.1 crore (DRHP p.218). The company produced 90 machines in FY26 and sold 83 (DRHP p.31, DRHP p.106). Trade receivables went from ₹3.1 crore to ₹7.1 crore; ₹1.9 crore of the March 2026 balance was more than six months old, ₹0.82 crore of it one to two years old, with no provision for doubtful debts (DRHP p.218, DRHP p.219). The company says some receivables are from government buyers who pay after inspection and paperwork (DRHP p.39).

The inventory reported to the bank at March 31, 2026 was ₹7.9 crore against ₹9.0 crore in the restated accounts, 11.71% lower; the company says some raw material and work in progress was left out of the stock statement (DRHP p.229). The advance for capital assets of ₹2.8 crore does not say to whom it was paid (DRHP p.217).

07The balance sheet

At March 31, 2026 total assets were ₹27.4 crore: inventories ₹9.0 crore, trade receivables ₹7.1 crore, property, plant and equipment ₹5.3 crore, long-term advances for capital assets ₹2.8 crore, advances to vendors ₹2.4 crore, fixed deposits ₹0.35 crore and cash ₹0.40 crore (DRHP p.58, DRHP p.217). Against them: short-term borrowings ₹7.4 crore, long-term borrowings ₹0.76 crore, trade payables ₹7.2 crore, provisions for income tax ₹1.8 crore and net worth ₹8.7 crore (DRHP p.58, DRHP p.214). The title deeds of the land are not in the company's name; the company owns no immovable property (DRHP p.229, DRHP p.148).

Borrowings at March 31, 2026 were ₹8.2 crore: Union Bank of India and ICICI Bank cash credit of ₹5.1 crore, a Union Bank overdraft against fixed deposits of ₹0.57 crore, an Electronica Finance machine loan of ₹0.65 crore at 14.55%, an ICICI Bank business loan of ₹0.47 crore at 14.50%, and loans from the promoters of ₹1.4 crore repayable on demand (DRHP p.209, DRHP p.210). The bank facility is secured on the plant land owned by Maheshkumar Gordhandas Vaghela and guaranteed by all three promoters (DRHP p.210).

By August 31, 2026 borrowings were ₹11.9 crore (DRHP p.47). They included ₹3.6 crore of unsecured business loans from nine banks and finance companies at 14.50% to 16.00%, most of them not on the March list, a second Electronica Finance machine loan at 16.00%, and ₹1.4 crore from directors (DRHP p.235, DRHP p.234, DRHP p.236). ₹6.8 crore of borrowings, the cash credit and the director loans, was repayable on demand (DRHP p.40).

Source: DRHP p.226, DRHP p.90. The capitalisation statement leaves the post-issue column blank (DRHP p.226). None of the issue money is for repaying loans (DRHP p.90). The working capital plan still has short-term borrowings funding ₹6.8 crore of a projected ₹26.3 crore requirement at March 2028 (DRHP p.98).

08What the money is for

Weldor CNC Machines IPO objects: what the money is for

Source: DRHP p.90, DRHP p.100. 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.2).

New factory, ₹21.6 crore: ₹2.8 crore of civil construction on a quotation from Lintel Construction, Rajkot, and ₹18.8 crore of plant and machinery; a further ₹1.1 crore contingency comes from internal accruals, for a total project cost of ₹22.6 crore (DRHP p.93, DRHP p.94).

The machinery is a Fermat WF 13 R CNC floor-type boring mill made in the Czech Republic, at a landed cost with accessories of ₹10.6 crore; a Jyoti NX 6240 EY vertical machining centre from Jyoti CNC Automation Limited for ₹4.8 crore; 12 double girder EOT cranes from Heben Technovation for ₹2.7 crore; and a Mazak VC-Ez 510 IP vertical machining centre for ₹0.65 crore, all including GST (DRHP p.95, DRHP p.96).

No orders have been placed (DRHP p.96). The plant is to be built on Plot 3, about 2,336.17 square metres, leased from the promoter Maheshkumar Gordhandas Vaghela for ten years from July 1, 2026 at ₹0.90 lakh a month (DRHP p.94). The schedule runs from land work in January 2027 to commercial operation in November 2027, and ₹4.3 crore is to be spent in FY27 and ₹17.3 crore in FY28 (DRHP p.97, DRHP p.101).

The company says the new plant will also make CNC panel bending machines, a product not in its present range (DRHP p.91).

Working capital, ₹3.0 crore: ₹1.0 crore in FY27 and ₹2.0 crore in FY28, against a projected requirement of ₹26.3 crore at March 2028 that assumes receivable days of 90 (DRHP p.98, DRHP p.99).

The objects have not been appraised by any bank or financial institution, and no monitoring agency is required because the issue is under ₹50 crore (DRHP p.49, DRHP p.51).

Into the business the fresh issue of up to 23,30,000 shares of ₹10, at a price not yet set (DRHP p.2). To selling shareholders nothing: there is no offer for sale (DRHP p.1, AP p.1).

09Who is selling

Weldor CNC Machines IPO offer for sale: who is selling

Nobody. The whole issue is a fresh issue of up to 23,30,000 shares of ₹10, and the document marks the offer for sale details not applicable (DRHP p.1, AP p.1). The promoters and promoter group will not take part in the issue (DRHP p.88).

10Promoters

The promoters are Maheshkumar Gordhandas Vaghela, Nikunj Maheshkumar Vaghela and Minaben Maheshkumar Vaghela, who hold 98.82% of the company before the issue (DRHP p.182). The document states that Maheshkumar Gordhandas Vaghela is the spouse of Minaben Maheshkumar Vaghela and the father of Nikunj Maheshkumar Vaghela (DRHP p.180).

Maheshkumar Gordhandas Vaghela, 57, is Chairman and Managing Director, with a matriculation and 36 years in sheet metal machinery, including Weldor Engineering Private Limited as Technical Director from 1990 to 2007 and head of sales from 2007 to 2015 (DRHP p.166, DRHP p.168). Nikunj Maheshkumar Vaghela, 27, is Whole-time Director, with a diploma in mechatronics engineering from 2019 and 6 years of experience, and oversees production (DRHP p.166, DRHP p.169). Minaben Maheshkumar Vaghela, 53, is a non-executive director with 10 years in HR and administration; the document says no record of the stated Grade IX qualification is available (DRHP p.167, DRHP p.48).

Pay: remuneration to the three promoters was nil in FY24, ₹0.09 crore in FY25 and ₹0.28 crore in FY26 (DRHP p.222). Each executive director may be paid up to ₹2.00 lakh a month (DRHP p.170). Hirva Sandeepbhai Vasoya, stated to be the spouse of Nikunj Maheshkumar Vaghela, was paid ₹0.12 crore in FY26 (DRHP p.225, DRHP p.226).

Property, loans and guarantees: the company rents its plant from Maheshkumar Gordhandas Vaghela for nine years from December 16, 2024 at ₹1.00 lakh a month rising 5% a year, and leases the expansion plot from the same promoter (DRHP p.32). Rent paid to Maheshkumar Gordhandas Vaghela was ₹0.12 crore in FY26 (DRHP p.225). The promoters had lent the company ₹1.4 crore at March 31, 2026, repayable on demand (DRHP p.225). The bank facility is secured on the promoter's land and guaranteed by all three promoters (DRHP p.234). No promoter shares are pledged (DRHP p.83).

Other businesses: the group company Weldor Engineering Private Limited, incorporated in 1990, of which Maheshkumar Gordhandas Vaghela is a director, makes mechanical and hydraulic press brakes, shearing machines, power presses and CNC machines (DRHP p.268, DRHP p.166). Promoter group firms Weldor Appliances Private Limited, Weldor Enterprise and Kiran Engineers are also in sheet metal or similar machinery (DRHP p.31). There is no non-compete agreement with any of them (DRHP p.31). In FY26 the company sold ₹0.71 crore of goods to Weldor Engineering Private Limited and bought ₹0.18 crore from it; in FY24 a balance of ₹0.31 crore with it was written off (DRHP p.226).

Cases: no criminal, regulatory or tax proceedings against the promoters or directors (DRHP p.260).

Promoter economics: on conversion of the firm on December 13, 2024 the partners received 15,00,623 shares at ₹10 against their capital, and on September 17, 2026 a 3:1 bonus issue added 45,01,869 shares (DRHP p.78). The average cost of the promoters' shares is ₹2.50 each (DRHP p.84). There was no other allotment and no transfer by the promoters in the eighteen months before filing (DRHP p.108).

11Who already owns it

Weldor CNC Machines promoter holding before and after the IPO

Source: DRHP p.84, DRHP p.81. There are 60,02,492 shares of ₹10 before the issue and seven shareholders (DRHP p.56, DRHP p.88). If all 23,30,000 new shares are issued, the total becomes 83,32,492 and the public issue is 27.96% of it (DRHP p.2). The promoters' 98.82% then becomes about 71.2%, so 98.8% → 71.2% (our arithmetic, DRHP p.84). Promoters and promoter group together go from 99.93% to about 72.0%, so 99.9% → 72.0% (our arithmetic, DRHP p.84). The document leaves the after-issue holding blank (DRHP p.84).

No fund or company outside the promoter group holds shares. The one public holder, Naman Manojbhai Solanki, came in as a partner when the firm was reconstituted on October 1, 2024 (DRHP p.163).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹10.5 crore in FY24 to ₹25.3 crore in FY26 and profit after tax from ₹1.5 crore to ₹5.0 crore (DRHP p.60).
• Receivables: receivable days went from 24 in FY24 to 102 in FY26 (DRHP p.99).
• Promoter pay went from nil in FY24 to ₹0.28 crore in FY26 (DRHP p.222).
• Borrowings went from ₹2.6 crore at March 2025 to ₹8.2 crore at March 2026 and ₹11.9 crore at August 31, 2026 (DRHP p.58, DRHP p.226, DRHP p.47).
• Conversion: new partners joined the firm on October 1, 2024, and the firm became a public company on December 13, 2024 (DRHP p.2).
• Bonus issue: 3:1, 45,01,869 shares, allotted September 17, 2026 (DRHP p.78).
• Pre-IPO placement: none; the only allotments are the shares issued on conversion and the bonus (DRHP p.78).
• Last allotment before the IPO: the bonus shares, at nil, September 17, 2026 (DRHP p.78).
• Auditor: Sunit M Chhatbar & Co. was appointed first auditor of the company on December 30, 2024 and re-appointed for five years on December 31, 2025; no other change is listed (DRHP p.74).
• Board and officers: three independent directors joined on January 22, 2026; a company secretary and a chief financial officer were appointed on February 17, 2026; an accounts and finance head joined on May 21, 2026 (DRHP p.172, DRHP p.180).
• Expansion land: Plot 3 was leased from the promoter from July 1, 2026, and the deed amended on September 14, 2026 (DRHP p.94).
• Bank facility: Union Bank of India sanctioned working capital limits rising to ₹8.5 crore, taking over an ICICI Bank cash credit (DRHP p.209).
• Dividend: none declared since incorporation (DRHP p.187).

13Capacity and expansion

Source: DRHP p.31, DRHP p.93, DRHP p.97. Installed capacity was 74, 77 and 110 machines over FY24 to FY26, with production of 37, 57 and 90, so utilisation of 50%, 74.02% and 81.82% (DRHP p.31). The chartered engineer's project report puts capacity at about 233 machines in FY28 on a part-year basis and about 311 machines in FY29 (DRHP p.93). The document says capacity is a technical estimate based on bottleneck operations and average machine weight, not a guarantee of output (DRHP p.50). Plant and machinery additions were ₹4.2 crore in FY26 (DRHP p.215).

The document gives machines, not prices by product, so the step from capacity to revenue cannot be made here.

14Market size and industry structure

Weldor CNC Machines industry: market size and growth

As claimed: the industry chapter is drawn from the "Industry Report for Engineering and Capital Goods Industry" by Infomerics Analytics and Research Private Limited, dated August 27, 2026, which the company commissioned and paid for in connection with the issue (DRHP p.113, DRHP p.25). The commissioned report sizes the Indian machine tools segment, which it says includes CNC machines, presses, press brakes and rolling and bending machines, at ₹74,095.1 crore in FY2024-25 (DRHP p.123). It also gives total Indian capital goods production of ₹2,05,194 crore in FY2024-25 (DRHP p.125). At the global level it says only that machinery and equipment is about 8.0% of world manufacturing value added (DRHP p.122).

The part that is addressable: the company sells sheet metal forming and cutting machines within India (DRHP p.134). The chapter does not size the Indian market for press brakes, shearing, punching or rolling machines. The only figure it gives for the company's main product is exports of Indian CNC press brakes: USD 8.26 million in 2023, USD 6.83 million in 2024 and USD 9.09 million in 2025 (DRHP p.126). The company has no exports (DRHP p.220).

What the company is today: FY26 revenue of ₹25.3 crore is about 0.03% of the claimed FY2024-25 machine tools market, a comparison across different years and against a much wider segment (our arithmetic, DRHP p.60, DRHP p.123).

Size over time: the commissioned report puts the machine tools market at ₹37,675.2 crore in FY2020-21, ₹51,208.7 crore in FY2021-22, ₹58,358.2 crore in FY2022-23, ₹65,269.1 crore in FY2023-24 and ₹74,095.1 crore in FY2024-25, about 18.4% a year (our arithmetic, DRHP p.123). The report projects ₹1,72,566.6 crore by FY2029-30 and calls this a CAGR of about 18.42% (DRHP p.124); that is the same rate as the FY2020-21 to FY2024-25 history.

Machine tool production rose from ₹6,602 crore in FY2020-21 to ₹13,571 crore in FY2023-24, and the report projects ₹37,493 crore in FY2029-30 (DRHP p.126). Capital goods production went from ₹98,966 crore in FY2020-21 to ₹2,05,194 crore in FY2024-25, and the report projects about 20% a year to ₹5,10,520 crore in FY2029-30 (DRHP p.125). It projects press brake exports of USD 19.82 million in 2030 (DRHP p.126).

These are the report's projections, not figures from the company's accounts.

Segments: the report divides the industry by product (machine tools, industrial machinery, process plant, earthmoving and mining, dies and moulds, plastic, food and printing machinery), by technology (conventional, CNC and precision, smart and automated) and by end user (large manufacturers, MSMEs, government and PSUs) (DRHP p.119, DRHP p.120, DRHP p.121). The company sits in machine tools, CNC technology, selling directly to fabricators and some government buyers (DRHP p.119, DRHP p.136). Machine tools were about 7% of capital goods production in FY2024-25, against 39% for earthmoving and mining machinery (DRHP p.125).

What drives demand: the chapter names infrastructure spending, Make in India and Atmanirbhar Bharat, private capital expenditure, the shift to automation and CNC, demand from automotive, aerospace, defence, railways and renewable energy, and industrial parks (DRHP p.127, DRHP p.128). It cites Union Budget capital expenditure of ₹12.21 lakh crore for FY2026-27 against ₹11.21 lakh crore the year before (DRHP p.118), and real GDP growth estimated at 7.7% in FY2025-26 (DRHP p.116).

Structure: the report names no competitors and gives no market shares. It describes competition on technology, quality, customisation, after-sales support and installed base, and lists barriers to entry such as global competition, skilled labour, capital needs, certification and customers' cost of switching (DRHP p.132, DRHP p.133). The company's own business chapter names Energy Mission Machineries (India) Limited as a listed competitor and Hindustan Hydraulics Private Limited, Proteck Machinery Private Limited and HACO Machinery Private Limited as unlisted ones (DRHP p.146).

Inputs and trade: the main inputs are steel, hydraulic parts, CNC controllers, servo motors and drives, some of them imported (DRHP p.121, DRHP p.129). India's capital goods imports rose from ₹34,890 crore in FY2021 to ₹84,304 crore in FY2025, while exports rose from ₹19,799 crore to ₹33,356 crore (DRHP p.127).

Rules: the chapter lists the Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector (Phase II), Centres of Excellence, Common Engineering Facility Centres and a machine tool park at Tumakuru, Karnataka (DRHP p.129, DRHP p.130). It says manufacturers must meet BIS standards, factory safety and environmental rules (DRHP p.131). The company holds an ISO 9001:2015 certificate and a certificate under the EU Machinery Directive 2006/42/EC (DRHP p.265, DRHP p.266).

What the chapter says can go wrong: swings in steel and metal prices, the cyclical nature of capital spending, competition and pricing pressure from domestic and global makers, reliance on imported precision parts and controls, and long order cycles on large projects (DRHP p.128, DRHP p.129). The company says its business is not seasonal (DRHP p.257).

15Competitive position

Weldor CNC Machines competitors

Source: DRHP p.105, DRHP p.106, DRHP p.107, converted from ₹ lakh. The document says these peers differ in product range and scale and their ratios may not be directly comparable (DRHP p.105). Jyoti CNC Automation Limited is also the supplier quoted for the ₹4.8 crore machining centre in the objects (DRHP p.95).

What the company puts forward: in-house fabrication and machining with a design function, a five-product range, supply to government and public sector buyers such as an Ordnance Factory in FY2021-22, customers across industries and states, and promoters with long experience (DRHP p.103, DRHP p.164). Against that: one product line brings most of revenue, the plant and land belong to a promoter, a family company sells similar machines with no non-compete, trademarks are not yet registered, and the team is small (DRHP p.26, DRHP p.32, DRHP p.31, DRHP p.42, DRHP p.148).

16Peers the company named

Peers named in the offer document: Jyoti CNC Automation Limited, Macpower CNC Machines Limited, Energy Mission Machineries (India) Limited (DRHP p.104).

All three are listed and several times the company's size: Jyoti CNC Automation about 83 times its FY26 revenue, Macpower about 13 times and Energy Mission about 6 times (our arithmetic, DRHP p.105). Their PAT margins range from 7.42% to 16.05% against the company's 19.73% (DRHP p.107, DRHP p.106). Jyoti CNC Automation makes metal-cutting machining centres rather than sheet metal forming machines, as the document's note on product differences implies (DRHP p.105). The company's FY26 EPS is ₹8.32 on ₹10 shares after the bonus (DRHP p.103). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Weldor CNC Machines IPO risks

Financial: cash and working capital: operating cash flow was −₹2.1 crore in FY26 while profit was ₹5.0 crore (DRHP p.61) → growth is being paid for with loans → receivable days went from 24 to 102 and inventory from ₹3.8 crore to ₹9.0 crore in a year (DRHP p.99, DRHP p.218).

Financial: debt after the year end: borrowings rose from ₹8.2 crore at March 2026 to ₹11.9 crore at August 31, 2026 (DRHP p.226, DRHP p.47) → several of the new loans carry 14.50% to 16.00% interest and ₹6.8 crore is repayable on demand (DRHP p.235, DRHP p.40) → none of the issue money is for repaying loans (DRHP p.90).

Business: one product: CNC press brakes were 73.03% of FY26 revenue (DRHP p.26) → a fall in demand for one machine type would hit most of the sales → the product was ₹18.5 crore of ₹25.3 crore (DRHP p.26).

Customers: the largest customer was 16.95% of FY26 revenue and the top ten 58.32% (DRHP p.27) → machines are capital purchases that customers do not repeat every year → repeat customers were 38.90% of FY26 revenue (DRHP p.38).

Promoters: premises and conflict: the plant and the expansion plot belong to Maheshkumar Gordhandas Vaghela, and the group company Weldor Engineering Private Limited makes press brakes and shearing machines with no non-compete (DRHP p.32, DRHP p.31) → the company depends on the promoter's leases and competes with a family business → the new factory is to cost ₹22.6 crore on leased land (DRHP p.93).

Regulation: approvals and dues: applications for a fire NOC and a groundwater NOC are pending, and there were delays in paying GST, provident fund and professional tax, with professional tax up to 291 days late in FY26 (DRHP p.267, DRHP p.34) → penalties or action for past periods are possible (DRHP p.30) → interest on income tax was ₹0.13 crore in FY26 (DRHP p.223).

Business: people: attrition was 145.45% in FY25 and 35.48% in FY26, and the workforce was 36 at August 31, 2026 (DRHP p.45, DRHP p.148) → building larger machines and a new product depends on skilled staff → the sales team is three people (DRHP p.144).

Issue-specific: the capex quotations are valid for 90 to 180 days and no orders are placed; the largest item is imported and priced at an exchange rate of ₹109.90 to the euro (DRHP p.95, DRHP p.96) → cost increases are to be met from accruals or loans → the machinery budget is ₹18.8 crore (DRHP p.93).

18Litigation and regulatory matters

Cases against Weldor CNC Machines and its promoters

Criminal: none by or against the company, promoters, directors, key managerial personnel or senior management (DRHP p.259, DRHP p.260, DRHP p.261). Regulatory: no actions by statutory or regulatory authorities against the company, promoters or directors (DRHP p.259, DRHP p.260). Tax: apart from the TDS matter, nil for the company and the promoters; the PAN and TAN of the old firm are yet to be cancelled (DRHP p.260, DRHP p.38). Group company:

no litigation with a material impact (DRHP p.261). Corporate law: Forms PAS-6 and MGT-14 were filed late with the Registrar of Companies (DRHP p.35). Creditors: six material creditors were owed ₹4.9 crore at March 31, 2026; nothing was owed to MSMEs (DRHP p.261).

19Related-party transactions

Source: DRHP p.225, DRHP p.226, converted from ₹ lakh. Maheshkumar Gordhandas Vaghela lent ₹0.58 crore and was repaid ₹0.35 crore in FY26 (DRHP p.225). A balance of ₹0.31 crore with Weldor Engineering Private Limited was written off in FY24 (DRHP p.226). The company says all related-party transactions are at arm's length (DRHP p.226).

What appeared or changed in the two years before filing: the firm became a company in December 2024; promoter remuneration started in FY25; rent to the promoter started in FY26 under the December 2024 rent agreement, and the Plot 3 lease followed in July 2026; sales to Weldor Engineering Private Limited began in FY26 (DRHP p.2, DRHP p.225, DRHP p.32, DRHP p.226).

20What the offer document does not say

Most customers are not named. Prices and machine counts by product are not given, so growth cannot be split into volume and price. Product margins are not given; the company reports one segment (DRHP p.243). There is no order book. The Indian market for press brakes and the company's market share are not sized, and the industry chapter names no competitors.

To whom the ₹2.8 crore advance for capital assets was paid is not stated (DRHP p.217). The issue size in rupees, the price band, general corporate purposes and issue expenses are blank (DRHP p.90, DRHP p.100). The after-issue shareholding is blank (DRHP p.84). Financial details of the group company Weldor Engineering Private Limited are only on the company's website (DRHP p.269).

Some inconsistencies are recorded as document matters, not business ones: Nikunj Maheshkumar Vaghela is said to have joined the business in 2015 in one place and 2020 in another (DRHP p.168, DRHP p.137); the management discussion says other expenses fell while the accounts show them rising from ₹1.1 crore to ₹2.5 crore (DRHP p.254, DRHP p.60); it also says material cost as a share of revenue "increased" from 66.93% to 63.70% (DRHP p.253);

the largest customer is spelt Riddhi Display Equipment's Limited and Riddhi Display Equipments Limited (DRHP p.27, DRHP p.168); the FY26 related-party customer is ₹0.61 crore in the customer list while sales to Weldor Engineering Private Limited are ₹0.71 crore in the related-party note (DRHP p.27, DRHP p.226); and one risk factor gives August 2026 borrowings as ₹6.8 crore, another as ₹11.9 crore (DRHP p.40, DRHP p.47).

21Five questions for management

1. How many press brakes, shearing machines, punch presses and rolling machines were sold in FY24, FY25 and FY26, and at what average price, so that growth can be split into volume and price?
2. Of the ₹4.1 crore of finished goods at March 31, 2026, how many machines were already ordered by customers, and how much of the ₹1.9 crore of receivables older than six months has since been collected?
3. Why did the company take ₹3.6 crore of new unsecured loans at 14.50% to 16.00% between April and August 2026, and what are they paying for?
4. To whom was the ₹2.8 crore advance for capital assets paid, and is any of it for machinery in the issue's objects?
5. What share of Weldor Engineering Private Limited's sales are press brakes and shearing machines, and how are customers divided between it and the company?

1Sources and cited facts

This study was read from 1 document the company filed. The 177 figures it cites are listed under the document each came from, with the page and the sentence as printed.