Dharani Sugars Q1 FY2026: Challenges Amid Industry Headwinds

Business, Equities, Result Updates - July 21, 2025

Tata Elxsi Q1 FY26 Net Profit Drops 22% Amid Global Headwinds

Tata Elxsi Q1 FY26 Net Profit Drops 22% Amid Global Headwinds

A challenging macroeconomic environment dampened Tata Elxsi’s financial performance in the first quarter of FY26, with notable declines in both profit and revenue.
Tata Elxsi, a leading provider of design and technology services across industries such as automotive, healthcare, and media, reported a steep decline in its earnings for the April–June 2025 quarter. The company’s consolidated profit after tax (PAT) dropped by 22% year-on-year to ₹144 crore from ₹184 crore in the corresponding quarter of the previous fiscal. The fall in earnings reflects the broader slowdown in global demand, particularly in the transportation and media sectors, which form a significant portion of Tata Elxsi’s business portfolio.

Revenue Falls as Client Spending Weakens

Tata Elxsi also saw its operating revenue slip by 3.7% to ₹892 crore compared to ₹926 crore in Q1 FY25. The fall in revenue is attributed to reduced discretionary spending by global clients, especially in the automotive and media & entertainment domains. With inflationary pressures, tight capital allocation, and prolonged decision-making cycles at the client end, new business opportunities have taken longer to convert, thereby slowing the overall topline growth.
Sequentially, however, the company managed to maintain a relatively flat performance, with some recovery seen in its transportation vertical, which registered a 3.7% quarter-on-quarter growth in volume terms.

EBITDA and Margins Under Pressure

Operating performance also took a hit during the quarter. Earnings before interest, taxes, depreciation, and amortization (EBITDA) fell approximately 26% year-on-year to ₹187 crore. EBITDA margins contracted to 20.9% from 27.2% in the year-ago period. The drop in margin was due to higher operational expenses, salary adjustments, and a weaker revenue base.
Profit before tax (PBT) came in at ₹196 crore, marking a 22.2% decline from the ₹252 crore reported in Q1 FY25. The margin pressure suggests that Tata Elxsi is facing difficulty balancing growth with cost optimization in the current environment.

Transportation Segment Shows Resilience

Despite overall weakness, the company’s largest business segment — transportation — displayed signs of recovery. This vertical, which contributes more than 50% of the firm’s revenue, recorded steady growth on a sequential basis. Although it remained flat on a constant currency basis, management expressed optimism that the transportation business would see an uptick in the second half of the year as delayed client projects resume.
On the other hand, segments like media & communications and healthcare remained sluggish due to lower tech investments by clients and ongoing budget constraints. The company continues to diversify its offerings to reduce dependency on any single vertical.

Strategic Deal Wins Highlight Growth Potential

Amid the earnings pressure, Tata Elxsi secured several strategic deals that could boost its performance in the coming quarters. Notably, the company signed a multi-million-dollar agreement with a prominent U.S.-based technology firm to support AI-driven product design and digital engineering. Additionally, it has forged a partnership in the medical devices space focused on cardiovascular testing and regulatory compliance.
These deal wins underline Tata Elxsi’s strength in innovation-led offerings and its ability to adapt to emerging industry needs such as AI, automation, and next-gen product development.

Management’s Outlook: Cautious Optimism

CEO and Managing Director Manoj Raghavan acknowledged the difficult quarter, citing macroeconomic headwinds, delayed client decisions, and weaker R&D spending. However, he emphasized that the company remains committed to long-term growth and is confident about improving performance in the second half of FY26.
He also noted that the current pipeline of opportunities remains strong, with clients increasingly engaging in discussions around digital transformation, autonomous systems, and cloud integration — all of which align with Tata Elxsi’s core strengths.

Stock Market Reaction Reflects Investor Concern

Tata Elxsi’s stock reacted negatively to the Q1 results. The shares dropped nearly 7% intraday following the earnings announcement, reflecting investor concerns about the decline in profit and revenue. The stock touched a low of around ₹5,660 during trading and ended the day among the top losers on the Nifty Midcap index.
Despite short-term volatility, analysts believe that Tata Elxsi remains fundamentally strong but may face continued margin pressure unless macro conditions improve or deal conversions accelerate. Some brokerages have issued a “sell” or “underperform” rating, citing valuation concerns and earnings risks in the near term.

Future Growth Hinges on H2 Recovery

Tata Elxsi’s performance in the first quarter underscores the challenges posed by a volatile global economic climate. However, with new client wins, a growing focus on high-value segments like AI and medical devices, and signs of revival in the transportation domain, the company is laying the groundwork for a rebound.
The second half of FY26 will be crucial in determining whether Tata Elxsi can convert its strong pipeline into tangible revenue growth and margin expansion. If macro conditions stabilize and clients resume their digital investment cycles, the firm may well return to a positive trajectory.

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Business, Editorials, Real Estate, Research, Research Reports - July 18, 2025

Arkade Developers: High-Margin, Debt-Free Growth in Mumbai Realty

Arkade Developers: High-Margin, Debt-Free Growth in Mumbai Realty

Arkade Developers Ltd. is a well-established Mumbai-based real estate developer with a strong legacy of over 39 years. The company has successfully delivered 31 projects, completing more than 5.5 million sq. ft. of development and housing over 5,500 families. Known for its timely project execution and customer-centric approach, Arkade focuses on premium and society redevelopment projects across Mumbai’s western and eastern suburbs. As of March 31, 2025, the promoter and promoter group, led by Mr. Amit Mangilal Jain, hold a 71.09% stake in the company. It is listed on both NSE (Symbol: ARKADE) and BSE (Code: 544261). The company follows an asset-light model and maintains zero net debt, which enhances its financial resilience. In FY25, Arkade reported ₹695 crore in revenue, ₹206 crore EBITDA, and ₹157 crore in net profit, driven by strong pre-sales, robust cash flows, and a well-diversified project pipeline supporting future growth.

Stock Data
NIFTY	: 25,212
52 Week H/L (INR)	: ₹ 210 / 128
Market Cap (INR Cr)	: ₹ 3,818 Cr.
Book Value	: ₹ 47.6
Outstanding Shares (Cr.)	: 18.6
NSE Code	: ARKADE
BSE Code	: 544261
CMP	: ₹ 206

Future Business Outlook
Arkade Developers is positioning itself as a prominent player in Mumbai’s real estate landscape with a strategic focus on luxury and premium redevelopment. The company has adopted an asset-light and zero-net-debt model that supports capital efficiency and faster project execution, making it well-suited for scalable growth. Its presence is expanding across both eastern and western suburbs, targeting high-demand micro-markets through a mix of greenfield and redevelopment projects. Consistent pre-sales performance, coupled with timely project delivery, has ensured robust cash flows, enabling reinvestment into new high-GDV opportunities.
Key Growth Drivers
Demand for premium residential housing in Mumbai continues to be a structural trend, benefiting players like Arkade. The company has acquired land parcels with strong monetization potential in locations such as Goregaon, Andheri, Mulund, and Santacruz. Its execution capability is demonstrated by projects being delivered well before RERA deadlines, reinforcing customer trust and brand value. A healthy mix of ongoing and upcoming projects with visibility across multiple micro-markets positions Arkade to sustain volume and revenue growth in the medium to long term.
Project Pipeline
Arkade currently has 9 ongoing projects (~2 Mn sq. ft.) with an estimated turnover of ₹3,317 Cr, including key developments like Arkade Crown (Borivali), Aspire (Goregaon), and Aura (Santacruz).
The company also has 10 upcoming projects (~2.22 Mn sq. ft.) with a turnover potential of ₹7,579 Cr, including Filmistan (₹2,000 Cr), Anand Nagar (₹1,700 Cr), and Satya Shripal (₹865 Cr), further strengthening growth visibility.
Financial Projections (FY25–FY27)
We project revenue to grow at a CAGR of ~8% from ₹683 Cr in FY25 to ₹795 Cr by FY27, driven by improved project mix and expansion. Operating profit is expected to expand from ₹206 Cr to ₹358 Cr, with operating margin rising from 30% to 33.7%, supported by cost controls and scale benefits. PAT is projected to grow from ₹157 Cr to ₹237 Cr during the same period, implying a CAGR of ~22%, with PAT margin expanding to 30%.
Valuation and Recommendation
We assign a BUY rating on the stock with a projected target price of ₹497.73, based on 39x FY27E EPS of ₹12.76. The stock currently trades at a significant discount to larger listed peers despite delivering superior profitability metrics and maintaining a debt-free balance sheet. Given its strong pipeline, asset-light strategy, and consistent execution, we believe Arkade is well-positioned to emerge as a mid-cap re-rating candidate in the real estate sector.

Absolute Returns (%)
3 Months	: 22.3%
6 Months	: 27.1 %

VALUATION OUTLOOK

Undervalued vs Peers:
Arkade trades at EV/EBITDA of 17.4x and P/E of 24.3x, both below the peer average of 45.6x EV/EBITDA and 82.7x P/E, indicating strong rerating potential. Discounted EV/Sales Multiple:
Arkade’s EV/Sales of 5.6x is modest compared to peers, with some companies trading over 10x, suggesting room for valuation catch-up.

Implied Upside in Market Cap:
Based on peer averages, Arkade’s implied market cap is ₹5,040 Cr, vs current value of ₹3,798 Cr — indicating 33% upside potential.

Implied Share Price Suggests Re-rating:
The implied share price is ₹271.4, compared to the current ₹205.56, suggesting the stock is undervalued at present levels.

Strong Financials Support Valuation:
With ₹683 Cr in revenue, ₹206 Cr EBITDA, and ₹157 Cr PAT, Arkade demonstrates solid earnings power that can support a higher multiple.

Low Debt and Asset-Light Model:
Arkade’s relatively low leverage (Debt/Equity of 0.13) and zero net debt status improve valuation appeal compared to more leveraged peers.

Metric	FY24 Cr.	FY25 Cr.	YoY Growth (%)
Revenue from Operations	636	695	9.27%
Gross Profit	206	264	28.2%
Gross Profit Margin	32.40%	38.6%	+620 bps
EBITDA	167	206	23.4%
EBITDA Margin	26.3%	29.6%	+330 bps
Profit Before Tax (PBT)	211.4	266.8	26.18%
Profit After Tax (PAT)	123	157	27.6%
PAT Margin	19.3%	22.9%
ROCE%	45%	31%
ROE	38.08%	17.76%
Debt to Equity	0.22	0.13

1. Business Model & Key Differentiators

Arkade Developers Ltd. operates with a unique combination of financial discipline, operational agility, and strategic vision. The company’s asset-light model, emphasis on premium society redevelopment, and debt-free operations have enabled it to outperform many peers despite being a relatively recent entrant to the listed space.

1. Asset-Light Strategy & Zero Net Debt

Arkade follows an asset-light approach by focusing on society redevelopment projects, where upfront land cost is minimal. This enhances return on capital and keeps the balance sheet flexible.

Metric	FY24	FY25
Gross Debt (₹ Cr)	71	115
Cash & Equivalents (₹ Cr)	143	134
Net Debt (₹ Cr)	-72	-19
Net Debt/Equity	0.00	0.13
Model Type	Redevelopment-focused	Redevelopment + Greenfield

Result: The company operates with negative net debt, providing it flexibility to fund growth internally or raise capital on favorable terms when needed.

2. In-House Project Management = Faster Turnaround

Arkade’s execution strategy relies on integrated in-house teams for design, legal, engineering, and approvals. This reduces dependency on external vendors and cuts down project delays.

Execution Efficiency	Benchmark	Arkade
Project Completion Timeline	36–48 months	24–30 months
Approval to Launch Duration	6–9 months	4–6 months
Avg. Cost Overrun	Industry: ~10%	<5%

Result: Higher efficiency, faster cash flow conversion, and better internal rate of return (IRR).

3. Early RERA Completion Record

Arkade consistently completes projects 9–10 months before RERA deadlines, improving delivery trust, freeing up capital faster, and enhancing customer satisfaction.

Project	RERA Deadline	Planned Delivery	Expected Early Completion
Arkade Crown	Jun 2024	Jun 2024	9 months early
Arkade Aspire	Aug 2024	Aug 2024	10 months early
Arkade Pearl	Dec 2026	Feb 2026	10 months early

Result: Improves brand reliability and cash flow turnaround, supports faster pre-sales cycles.

4. High-IRR Development Model

Arkade strategically focuses on high-IRR, premium segment redevelopment, reducing upfront capital needs while achieving high margins.

IRR Benchmarks	Industry Avg.	Arkade Projects
Greenfield IRR	14% – 16%	18%
Redevelopment IRR	20% – 25%	25% – 28%
Cost of Project Financing	11% – 13%	~8% or self-funded

Result: Maximizes return per rupee invested and enhances EPS over time.

5. Strong CSR & ESG Integration

Arkade aligns its brand with responsible urban development, supporting healthcare, education, and environmental sustainability.

Initiative	Impact
Sajjan Jain Trust	Education & healthcare to underprivileged
Care per Sq. Ft. (Tata Hospital)	Cancer treatment donations for every sq. ft. sold
Bal Asha Trust, Apna Ghar	Child care and rehabilitation
In-house Green Compliance	IGBC alignment, energy-efficient buildings

Result: Builds long-term brand trust and aligns with institutional ESG mandates.

2. Detailed Analysis: Ongoing Projects of Arkade Developers Ltd.

Arkade has 9 ongoing projects across key micro-markets in Mumbai’s western and eastern suburbs, focusing on premium and aspirational housing, through a mix of greenfield developments and society redevelopments. These projects reflect a strategic push into high-demand zones with faster sales cycles and better margins.

Project Name	Location	Category	Development Type	Plot Size (Sq. M)	Saleable Area (Sq. Ft.)	Completion (RERA)	Projected Turnover (₹ Cr)
Arkade Crown	Borivali (W)	Aspirational	Society Redevelopment	5,711	113,805	Jun’24 **	₹325 Cr
Arkade Aspire	Goregaon (E)	Aspirational	Greenfield	5,933	168,643	Aug’24 **	₹490 Cr
Arkade Aura	Santacruz (W)	Premium	Society Redevelopment	3,791	59,279	Dec’24 **	₹276 Cr
Arkade Prime	Andheri (E)	Aspirational	Greenfield	2,091	65,566	Jan’25 **	₹165 Cr
Arkade Nest	Mulund (W)	Aspirational	Greenfield	8,327	249,163	Jun’27	₹619 Cr
Arkade Pearl	Vile Parle (E)	Premium	Society Redevelopment	4,153	75,145	Dec’26	₹300 Cr
Arkade Eden	Malad (W)	Premium	Society Redevelopment	3,101	49,981	Dec’26	₹150 Cr
Arkade Views/Vistas	Goregaon (E)	Aspirational	Society Redevelopment	4,487	81,960	Dec’27	₹242 Cr
Arkade Rare	Bhandup (W)	Aspirational	Greenfield	11,967	313,070	Dec’28	₹750 Cr

Strategic Importance

These ongoing projects form the operational backbone of Arkade’s near-term earnings visibility.
The early execution combined with healthy pre-sales will likely translate to strong free cash flows in FY26 and FY27.
These projects also pave the way for leveraging upcoming projects (₹7,579 Cr pipeline) without excessive borrowing.

3. Detailed Analysis: Upcoming Projects of Arkade Developers

Arkade Developers has 10 upcoming projects primarily focused on premium society redevelopment and high-value greenfield development. These projects are located across Mumbai’s most in-demand western suburbs including Santacruz, Andheri, Malad, Goregaon, Borivali, and Dahisar. The combined saleable area exceeds 2.22 million sq. ft., with an impressive projected turnover of ₹7,579 crore, offering a solid pipeline for revenue over the next 3–5 years.

Project Name	Location	Category	Development Type	Plot Size (Sq. M)	Saleable Area (Sq. Ft.)	Projected Turnover (₹ Cr)
Nutan Ayojan	Malad (W)	Premium	Society Redevelopment	6,860	2,33,000	₹740 Cr
Laxmi Ramana	Goregaon (W)	Premium	Society Redevelopment	4,619	59,793	₹213 Cr
Maheshwari Niwas	Santacruz (W)	Premium	Society Redevelopment	2,290	38,700	₹200 Cr
Apna Ghar	Andheri (W)	Premium	Society Redevelopment	7,381	83,212	₹388 Cr
Bussa CHS	Santacruz (W)	Premium	Society Redevelopment	2,902	45,000	₹190 Cr
Rani Sati	Malad (W)	Premium	Society Redevelopment	6,337	2,11,940	₹757 Cr
Satya Shripal	Borivali (W)	Premium	Society Redevelopment	7,084	2,44,000	₹865 Cr
Jumbo Darshan	Andheri (E)	Premium	Society Redevelopment	6,811	1,29,300	₹526 Cr
Filmistan	Goregaon (W)	Premium	Greenfield Development	16,200	5,00,000	₹2,000 Cr
Anand Nagar	Dahisar (E)	Premium	Society Redevelopment	26,286	6,76,000	₹1,700 Cr

4. Quarterly Performance (Q4 FY25)

Metric	Q4 FY24	Q4 FY25	YoY Growth (%)
Revenue from Operations	₹123.0	₹134.0	+8.9%
Gross Profit	₹41	₹60	+46.30%
EBITDA	₹27	₹45.0	+66.7%
EBITDA Margin (%)	22.00%	33.6%
Net Profit (PAT)	₹20	₹33.0	+65%
PAT Margin (%)	16.30%	24.6%
Pre-Sales Value	₹196.0	₹217.0	+10.71%
Collections	₹176.0	₹238.0	+35.23%
Carpet Area Sold (sq. ft. in ’000)	64	70	+9.38%

Q4 FY25 Performance Summary (YoY Comparison)

Revenue from Operations rose 8.9% YoY to ₹134 Cr, reflecting sustained sales momentum across ongoing projects.
Gross Profit increased by 46.3% YoY to ₹60 Cr, driven by improved cost efficiencies and a richer project mix.
EBITDA witnessed robust growth of 66.7% YoY, reaching ₹45 Cr, underscoring strong operational leverage.
EBITDA Margin expanded sharply by 1,160 bps, improving from 22.0% to 33.6%, indicating enhanced project-level profitability.
Net Profit (PAT) grew 65% YoY to ₹33 Cr, with PAT margin improving from 16.3% to 24.6%, aided by higher margins and stable overheads.
Pre-sales Value stood at ₹217 Cr, up 10.71% YoY, backed by healthy booking traction.
Collections rose significantly by 35.23% YoY to ₹238 Cr, reflecting strong customer cash inflows and project execution.
Carpet Area Sold increased 9.38% YoY to 70,000 sq. ft., indicating continued demand and sales conversion strength.

5. Financial Highlights (P&L Statement)

Particulars	2021	2022	2023	2024	2025	YoY Growth (Mar-24 to Mar-25)
Revenue (₹ Cr)	106	225	220	635	683	7.56%
Expenses (₹ Cr)	80	170	160	467	477	2.14%
Operating Profit	26	54	60	168	206	22.61%
OPM %	24%	24%	27%	26%	30%
Other Income	5	15	8	2	12
Interest (₹ Cr)	1	4	1	3	2	-33.33%
Depreciation (₹ Cr)	0	0	0	1	5
Profit Before Tax	29	66	67	165	211	27.88%
Tax %	25%	22%	24%	26%	26%
Net Profit (₹ Cr)	22	51	51	123	157	27.64%

Key Financial Highlights – FY25 (YoY Comparison)

Revenue grew steadily from ₹106 Cr in FY21 to ₹683 Cr in FY25, with a YoY growth of 7.56%, reflecting consistent business expansion.
Operating Expenses remained tightly managed, increasing by just 2.14% YoY in FY25, despite a higher scale of project execution.
Operating Profit rose by 22.61% YoY to ₹206 Cr, supported by improved operating leverage and execution efficiency.
Operating Margin improved from 26% to 30%, highlighting better cost controls and stronger pricing power.
Other Income increased significantly from ₹2 Cr to ₹12 Cr, marking a 500% jump, contributing meaningfully to bottom-line growth.
Interest Expense declined by 33.33% YoY, reinforcing the benefits of the company’s zero-net-debt capital structure.
Depreciation increased from ₹1 Cr to ₹5 Cr, indicating new asset additions or capitalization of completed projects.
Profit Before Tax (PBT) stood at ₹211 Cr, up 27.88% YoY, showcasing strong operational profitability.
Net Profit (PAT) grew by 27.64% YoY to ₹157 Cr, reflecting solid financial execution and bottom-line efficiency.
Tax Rate remained stable at 26%, in line with prior periods.

6. Financial Highlights
Balance Sheet Statement

Particulars	2021	2022	2023	2024	2025	YoY Growth (Mar-24 to Mar-25)
Equity Capital (₹ Cr)	2	2	2	152	186	22.37%
Reserves (₹ Cr)	97	148	198	171	698	308.77%
Borrowings (₹ Cr)	14	64	149	71	115	61.97%
Other Liabilities (₹ Cr)	237	156	206	180	252	40.00%
Total Liabilities (₹ Cr)	350	370	555	575	1,251	117.57%
Fixed Assets (₹ Cr)	0	2	2	14	19	35.71%
CWIP (₹ Cr)	0	0	0	0	0	No Change
Investments (₹ Cr)	114	40	17	18	138	666.67%
Other Assets (₹ Cr)	236	329	536	543	1,093	101.22%
Total Assets (₹ Cr)	350	370	555	575	1,251	117.57%

Key Balance Sheet Highlights – FY25

Equity Capitalincreased by 37%, reflecting capital infusion during the year to support growth initiatives.
Reservessurged by 77%, driven by higher retained earnings from strong profitability in FY25.
Borrowingsrose by 97%, though the company continues to operate with low leverage, maintaining a robust balance sheet profile.
Other Liabilitiesgrew by 40%, likely reflecting higher project-related payables and deferred obligations.
Total Liabilitiesmore than doubled, increasing by 57%, indicating scale-up in business operations and project pipeline.
Fixed Assetsincreased by 71%, due to investments in office infrastructure and project-related assets.
Investmentswitnessed a significant rise of 67%, suggesting strategic deployment of surplus capital into financial or operational assets.
Other Assets(inventories, receivables, advances) grew by 22%, in line with an expanding project portfolio.
Total Assetsrose by 57%, mirroring liability growth and signaling the company’s ongoing expansion phase.
Capital Work in Progress (CWIP)remained stable, implying that key projects were either completed or capitalized during the year.

7. Financial Highlights (Cash Flow Summary)

Particulars	Mar-21	Mar-22	Mar-23	Mar-24	Mar-25
Cash from Operating Activity +	144	-125	-99	102	-218
Cash from Investing Activity +	-98	76	29	-12	-229
Cash from Financing Activity +	-49	46	84	-83	445
Net Cash Flow	-3	-2	14	7	-1

Key Cash Flow Highlights (FY21–FY25)

FY21:
Generated a strong operating cash inflow of ₹144 Cr, driven by robust core business performance.
High investing outflow of ₹98 Cr suggests capital allocation toward project development or asset purchases.
Net cash flow stood at ₹-3 Cr, reflecting near cash-neutral operations despite significant investments.
FY22:
Reported negative operating cash flow of ₹-125 Cr, likely due to inventory buildup or working capital blockage.
Investing inflow of ₹76 Cr may have resulted from asset divestment or reduced capex.
Net cash flow of ₹-2 Cr, indicating minor cash burn.
FY23:
Operating cash flow remained negative at ₹-99 Cr, as project investments continued.
Moderate investing inflow of ₹29 Cr combined with positive financing inflow of ₹84 Cr, reflecting successful fundraising.
Net cash flow turned positive at ₹+14 Cr, marking a temporary recovery.
FY24:
Achieved a strong operating inflow of ₹102 Cr, supported by improved collections and profitability.
Financing outflow of ₹83 Cr suggests debt repayment or dividend distribution.
Net cash flow of ₹+7 Cr indicates growing financial stability.
FY25:
Experienced a significant operating outflow of ₹-218 Cr, likely due to aggressive project execution or advance payments.
Investing outflow of ₹229 Cr reflects substantial capital deployment into land or redevelopment rights.
Financing inflow of ₹445 Cr points to major fundraising activity through equity or debt.
Despite large cash movements, net cash flow stood at ₹-1 Cr, showcasing prudent capital management and balance sheet resilience.

8. Ratio Analysis

Leverage Ratios	2021	2022	2023	2024	2025
Debt/Equity	0.14	0.43	0.74	0	0.13
Debt/Assets	0.04	0.17	0.27	0	0
Debt/EBITDA	0.54	1.19	2.48	0	1
Efficiency Ratios
Receivable Days	44	9	6	5	19
Receivable Turnover	8.3	40.56	60.83	73	19.21
Profitability Ratios
EBITDA	26	54	60	168	206
EBITDA Margin	24%	24%	27%	26%	30%
Gross Profit	98.58	319.5	422.4	622.3	266.37
EBIT	0	0	0	169	213
EBIT Margin	0.00%	0.00%	0.00%	27.00%	31.00%
Net Profit Margin	20.75%	22.67%	23.18%	19.37%	22.99%
EPS	105.95	252.35	253.9	8.08	8.45
Capital Allocation Ratios
ROCE		41%	24%	45%	31%
EBIT Margin	0.00%	0.00%	0.00%	27.00%	31.00%
Sales/Cap Employed	94%	105%	63%	161%	68%
NOPAT	0	0	0	125.06	157.62
Capital Employed	101	204	331	369	865
Valuation Ratios
Price/Earnings	–	–	–	–	17.88
Price/Book	–	–	–	–	3.18
EV/EBITDA	–	–	–	–	13.63

Key Ratio Analysis – FY25

1. Leverage Ratios

o Debt-to-Equity dropped from 0.74 in FY23 to 0.13 in FY25, reflecting the company’s transition to a zero net-debt position in FY24, significantly strengthening the balance sheet.

o Debt/EBITDA improved to 1.0x, indicating comfortable leverage relative to earnings.

2. Efficiency Ratios

o Receivable Days increased to 19 (vs. 5 in FY24), suggesting a mild delay in collections cycle.

o Receivable Turnover decreased to 19.2x, though still reflects healthy receivables management.

3. Profitability Ratios

o EBITDA Margin expanded to 30%, supported by better project margins and cost efficiencies.

o Net Profit Margin stood at 22.99%, underlining strong bottom-line performance.

o EPS remained steady at ₹8.45, despite equity dilution following the public listing.

4. Capital Allocation Metrics

o ROCE moderated to 31% (vs. 45% in FY24), due to a higher capital base post fundraising.

o Sales/Capital Employed at 68% reflects efficient use of capital in driving topline growth.

o NOPAT rose to ₹157.6 Cr, in line with higher operating profits and tax-adjusted performance.

5. Valuation Ratios

o P/E Ratio stood at 17.88x, and EV/EBITDA at 13.63x, indicating potential undervaluation compared to peers.

o P/B Ratio at 3.18x remains reasonable, supported by robust ROE and strong growth visibility.

9. Financial Projections

Particulars	FY2025 (Actual)	FY2026 (Projected)	YoY Growth % (25-26)	FY2027 (Projected)	YoY Growth % (26-27)
Revenue (₹ Cr)	683	750	9.81%	795	6.00%
Expenses (₹ Cr)	477	482	1.05%	437	-9.40%
Operating Profit (₹ Cr)	206	268	30.10%	358
Operating Margin (%)	30%	30%		33.70%
Other Income (₹ Cr)	12	10	-16.70%	10
Interest (₹ Cr)	2	2		2
Depreciation (₹ Cr)	5	6	20%	7	16.70%
Profit Before Tax (₹ Cr)	211	242	14.70%	321	32.60%
Tax Rate (%)	26%	26%		26%
Net Profit (₹ Cr)	157	179	14.00%	237	32.40%
PAT Margin (%)	22.99%	23.87%		30%
P/E Ratio (assumed)	24.3	39		39
Outstanding Shares (Cr)	18.57	18.57		18.57
EPS	8.45	9.63		12.76
Share Price (Projected)	205.45			497.73

Summary of Financial Projections (FY2026–FY2027)

· Revenue is projected to grow from ₹683 Cr in FY2025 to ₹750 Cr in FY2026 (+9.81% YoY) and further to ₹795 Cr in FY2027 (+6.00% YoY), indicating a stable and upward revenue trajectory.

· Expenses are expected to increase marginally by 1.05% in FY2026, followed by a 9.40% decline in FY2027, highlighting improved cost controls and operational efficiency.

· Operating Profit is projected to increase sharply by 30.10% in FY2026 to ₹268 Cr, and further by 33.58% in FY2027 to ₹358 Cr, reflecting robust earnings growth and margin expansion.

· Operating Margin is expected to remain stable at 30% in FY2026, before expanding to 33.70% in FY2027, supported by operating leverage and efficiency gains.

· Profit Before Tax (PBT) is forecasted to grow from ₹211 Cr in FY2025 to ₹242 Cr in FY2026 (+14.70%), and further to ₹321 Cr in FY2027 (+32.60%).

· Net Profit (PAT) is expected to rise from ₹157 Cr to ₹179 Cr in FY2026 (+14.00%), and then to ₹237 Cr in FY2027 (+32.40%), driven by strong operational performance and margin improvement.

· PAT Margin is projected to improve from 22.99% in FY2025 to 23.87% in FY2026, and further to 30% in FY2027, highlighting enhanced bottom-line efficiency.

· Earnings Per Share (EPS) is forecasted to grow from ₹8.45 in FY2025 to ₹9.63 in FY2026 and ₹12.76 in FY2027, reflecting improved earnings and shareholder returns.

· Share Price is projected to increase significantly from ₹205.45 to ₹497.73 by FY2027, based on a forward P/E multiple of 39x, implying substantial upside potential for investors.

10. Valuation Analysis

Strategic Interpretations & Investment Rationale

1. Undervalued Across Key Multiples

o Arkade Developers is trading at 5.6x EV/Sales, 17.4x EV/EBITDA, and 24.3x P/E, significantly below peer group averages of 8.6x, 45.6x, and 82.7x, respectively.

o This positions the company as a classic undervalued mid-cap play in the real estate sector, offering substantial rerating potential.

2. Implied Valuation Indicates 30%+ Upside

o Based on Arkade’s current fundamentals, the implied share price stands at ₹271.41 versus the current market price of ₹205.56, reflecting a 32% valuation gap.

o This provides a strong near-to-medium-term upside opportunity for investors.

3. Strong Earnings Yet to Reflect in Valuation

o Despite reporting ₹683 Cr in revenue and ₹157 Cr in PAT in FY25, the market has not factored in the earnings momentum.

o This valuation disconnect creates a compelling entry point before broader price discovery takes place.

4. Debt-Free Balance Sheet Enhances Investment Comfort

o Arkade operates with zero net debt (₹-19.42 Cr), a rare trait in the sector, offering a robust margin of safety.

o This balance sheet strength justifies a valuation premium, though the stock currently trades at a discount.

5. Institutional Discovery as a Key Rerating Catalyst

o Upcoming project deliveries such as Filmistan and Santacruz, along with increased institutional coverage, are expected to serve as strong rerating triggers.

o These milestones could significantly narrow the valuation gap.

6. Exceptional ROCE & Execution History Merit Premium

o With a ROCE range of 31% to 45%, Arkade stands out for its capital efficiency.

o Its consistent record of on-time project completion supports a case for higher valuation multiples, in line with peers such as Marathon or Ajmera Realty.

7. Disciplined Capital Allocation Drives Sustainable Growth

o The company follows a high-IRR redevelopment strategy, ensuring efficient capital deployment.

With controlled operational leverage and focused expansion, Arkade is well-positioned for sustainable earnings growth

11. Why the Stock is Undervalued

Despite its strong operational momentum and a robust development pipeline, Arkade Developers Ltd. remains materially undervalued relative to peers in the real estate sector. The following factors contribute to the current market mispricing:

1.Recent Listing with Limited Institutional Coverage

Arkade was listed in October 2023, making it a recent entrant in the public markets. Due to this short listing history, the stock lacks adequate institutional coverageand analyst attention, resulting in low visibility among large-cap and mutual fund investors. This has led to valuation multiples remaining suppressed despite strong business fundamentals.

2.Mid-Cap Real Estate Yet to Fully Re-rate

While large-cap names such as DLFand Godrej Propertieshave already benefited from premium valuations and broad institutional participation, the mid-cap segment is still in the early stages of discovery. Arkade, with its lean balance sheet, consistent execution, and scalable redevelopment model, is well-positioned to benefit as institutional capital begins to flow into undervalued, fundamentally sound mid-cap players.

3. High-Impact Rerating Triggers Ahead

The company’s upcoming pipeline includes high-value redevelopment projectssuch as Filmistan (₹1,400 Cr revenue potential), Santacruz, and Andheri, which are expected to launch over the next 12–18 months. These are anticipated to act as inflection points, driving higher pre-sales, improved operating leverage, and institutional recognition — all of which can trigger multiple expansionand rerating of the stock.

4.Strong Financials Yet to be Valued Appropriately

In FY25, Arkade reported ₹683 Cr in revenueand ₹157 Cr in PAT, outpacing many older peers on a profitability basis. However, its current valuation — 24.3x P/E and 17.4x EV/EBITDA— remains well below sector averages of 82.7x P/E and 45.6x EV/EBITDA. This suggests the stock’s earnings power is not yet fully reflected in its market price.

Conclusion
Arkade’s current valuation does not align with its high return metrics, debt-free status, and strong visibility on future cash flows. As institutional investors begin to recognize the company’s execution track record and scalable business model, the stock is well-positioned for material re-rating. This creates an attractive early-mover opportunity for value-conscious investors seeking long-term compounding in the mid-cap real estate space.

12. What Investors Stand to Gain

Arkade Developers Ltd. presents a high-conviction investment case for investors seeking a blend of value, visibility, and velocity. With robust fundamentals, margin visibility, and an efficient capital deployment model, the company offers a differentiated opportunity in the premium Mumbai redevelopment space. Key benefits for investors include:

1. Valuation Rerating Potential

Arkade is currently trading at a deep discount to sector peersacross valuation metrics like P/E, EV/EBITDA, and EV/Sales. As the market begins to price in its profitability, growth pipeline, and brand strength, investors could benefit from multiple expansion. A 30–35% implied upsideexists from current levels, driven by both earnings’ growth and valuation normalization — a classic early-mover arbitrage opportunity.

2. Sustained High Margins

The company operates on a low-cost, high-margin modeldue to its focus on society redevelopment, which involves negligible land acquisition costs. This strategy supports industry-leading EBITDA margins of 28–30%, well above the sector average. As new projects like Filmistan, Santacruz, and Andheriprogress, these margins are expected to remain strong or improve, offering better operating leverage and earnings visibility.

3. Strong Risk-Adjusted Returns

Arkade follows an asset-light development modeland maintains a net-debt-free balance sheet, significantly reducing financial risk. Additionally, its projects are backed by in-house execution capabilitiesand a consistent track record of early RERA completions, mitigating project delivery risk — a key concern in the real estate sector.

4. Superior Capital Efficiency

The company’s fast project turnaround, early monetization, and efficient working capital cycle enable superior Internal Rate of Return (IRR)on capital employed. Flagship projects such as Filmistanare expected to deliver 25%+ IRRs, supporting high RoE and long-term wealth creation for shareholders.

Bottom Line

Arkade Developers offers a rare combination of premium real estate exposure, capital safety, and valuation upside. With strong earnings momentum, scalable operations, and upcoming project launches acting as catalysts, the company is well-positioned for multi-year compounding. For investors willing to enter ahead of broad institutional discovery, this represents a compelling opportunity to participate in a high-growth, low-risk real estate play.

13. What Investors May Miss If They Ignore Arkade

As the Indian real estate sector continues to see renewed investor interest, overlooking Arkade Developers Ltd. could result in missing one of the most compelling mid-cap re-rating opportunities in the space. Despite superior execution, clean balance sheet, and scalable growth visibility, the stock remains under-discovered — a scenario unlikely to persist. Here’s what’s at risk:

1.Missed Opportunity for 100%+ Returns in 2–3 Years

Arkade is trading at a steep valuation discountrelative to peers, despite industry-beating marginsand a robust pipeline. As key projects like Filmistan and Santacruz monetize and earnings scale up, the stock has the potential to double over the next 24–36 months. Delaying entry now may mean missing the full re-rating cycle.

2.Ignoring a Rare Debt-Free, High-Margin Developer

In a sector known for financial leverage and execution delays, Arkade’s zero-net-debt profile, strong cash flow discipline, and in-house execution capabilities are exceptional. Investors seeking risk-adjusted alphawould be overlooking a rare opportunity to own a safe compounderin an otherwise volatile space.

3.Suboptimal Capital Allocation vs Overvalued Peers

Capital parked in stretched valuations — such as Sunteck Realty (P/E ~43x)or Marathon Nextgen (EV/EBITDA ~29.5x)— may underperform relative to Arkade, which trades at just P/E ~24.3x and EV/EBITDA ~17.4x. The valuation gap offers a margin of safety along with stronger earnings visibility.

4.Missing the Early Stages of a Future Market Leader

Arkade is positioning itself as a leading player in Mumbai’s society redevelopment— a structurally growing niche with limited organized players. Early-stage entry offers investors a front-row seat to a multi-year compounding story, ahead of broader institutional participation.

Bottom Line

Arkade Developers represents a unique convergence of value, visibility, and velocity. Ignoring this opport unity may result in missing a rare, clean, high-margin, high-growth real estate company — available today at deep-value valuations. The current market inefficiency around Arkade is temporary; when recognition arrives, so will rapid price discovery — and those late to enter may find the outsized returns already priced in.

14. Investment Thesis: Arkade Developers Ltd. — A Rare Mid-Cap Compounder in Premium Real Estate

Arkade Developers Ltd. presents a compelling blend of growth, financial discipline, and value in India’s high-potential urban redevelopment segment. With strong fundamentals and a focused strategy, it stands out as a high-conviction BUY for long-term investors seeking asymmetric returns with limited downside risk.

1. High Growth with Financial Safety

Consistent topline and bottom-line growth, supported by EBITDA margins of 28–30%.

Operates with a net debt-free balance sheet, ensuring financial stability.
Adopts an asset-light, society redevelopment model, enabling high ROCE with minimal capital intensity.

2. Premium Market Exposure at Mid-Cap Valuations

Focused on premium Mumbai micro-markets like Andheri, Goregaon, and Santacruz.
Yet trades at only 3x P/E and 17.4x EV/EBITDA, significantly lower than listed peers.
With an implied fair value of ₹271, the stock offers 30%+ near-term upside.
Based on FY27 estimates and a conservative 39x P/E, the target price projects to ₹497.73, representing 100%+ upside

3. Proven Execution & Operational Strength

Delivered 31 projects over 39 years, with early RERA completions averaging 9–10 months ahead of schedule.
In-house execution, legal, and compliance teams ensure faster turnaround and project control.

4. Clean Financials and Robust Pipeline

FY25 performance: Revenue ₹683 Cr, PAT ₹157 Cr, ROCE 31%, and zero net debt.
Project pipeline of ₹10,800+ Crfrom ongoing and upcoming projects ensures sustained growth over 3–5 years.

5. Promoter Integrity & Institutional Governance

Led by Amit Jain, a visionary second-generation entrepreneur.
Practices zero promoter pledging, transparent disclosures, and community-driven CSR, reinforcing investor trust.
Governance practices are institution-ready, paving the way for broader institutional coverage and participation.

Conclusion: A Mispriced Premium Real Estate Opportunity

Arkade Developers Ltd. is currently underfollowed and undervalued, despite possessing the hallmarks of a long-term compounder: high margins, clean financials, and a scalable, risk-mitigated business model. With a clear growth runway, favorable market positioning, and robust internal execution, the stock is well-positioned to unlock significant value as market recognition improves. For discerning investors, this represents a rare opportunity to enter early into a multi-year re-rating story in India’s most lucrative real estate market.

15. Conclusion

Arkade Developers Ltd. stands out as a high-conviction investment opportunity within India’s mid-cap real estate space, offering a unique convergence of growth, scalability, and financial resilience. With a proven track record, strong fundamentals, and forward-looking strategy, the company is well-positioned to create long-term value for both institutional and high-net-worth investors.

With a legacy of 39+ years, Arkade has successfully delivered 31 projects, encompassing over 5.5 million sq. ft. and impacting more than 5,500 families across Mumbai. The firm’s focus on premium society redevelopment in strategic suburban markets—such as Andheri, Goregaon, and Santacruz—ensures superior IRR, low execution risk, and capital efficiency.

In FY25, Arkade posted revenue of ₹683 Cr, EBITDA of ₹206 Cr, and PAT of ₹157 Cr, translating into an EBITDA margin of ~30% and ROCE of 31%. Despite these strong metrics, the stock remains undervalued at 24.3x P/E and 17.4x EV/EBITDA, compared to industry averages of 45x and 30x, respectively. This valuation gap provides a highly attractive entry point, with a near-term target price of ₹271 and a projected FY27 price of ₹497.73 (based on 39x P/E), indicating significant upside potential.

The company’s zero net debt, robust project pipeline worth ₹10,800+ Cr, and marquee developments like Filmistan, Andheri, and Santacruz, provide earnings visibility for the next 3–5 years, along with scope for rerating as execution unfolds.

On the governance front, Arkade exhibits institution-ready transparency—with no promoter pledging, sound disclosures, and strong ESG orientation—under the experienced leadership of Mr. Amit Jain. This enhances its appeal for long-only funds and professional investors seeking consistency and credibility.

In summary, Arkade Developers Ltd. offers a rare blend of premium real estate exposure, robust financials, and deep value. For HNIs, family offices, and institutional investors, this represents a strategic opportunity to participate early in a multi-year value creation journey, driven by urban consolidation, disciplined growth, and operational excellence.

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Aurionpro Shares Climb After ₹30 Crore Digital Infrastructure Contract Win

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business update, Result Updates - July 11, 2025

TCS Q1 FY26: Profit Up 4.4%, Declares ₹11 Dividend

TCS Q1 FY26: Profit Up 4.4%, Declares ₹11 Dividend

Tata Consultancy Services posts a resilient Q1FY26 with higher profitability, even as revenue dips 1.6% QoQ due to currency fluctuations and macro uncertainties; shareholders rewarded with ₹11 per share interim dividend.

Summary:
Tata Consultancy Services (TCS) reported a 4.4% sequential rise in net profit at ₹12,760 crore for the first quarter of FY26, even as revenue fell 1.6% to ₹63,437 crore. Revenue in dollar terms also slipped marginally to $7.42 billion. Despite macroeconomic headwinds, the IT giant managed to protect margins and declared an interim dividend of ₹11 per share, signaling strong fundamentals and shareholder commitment.

TCS Q1 FY26 Results: Profit Up, Revenue Down — A Mixed Start to the Fiscal Year
India’s largest IT services company, Tata Consultancy Services (TCS), kicked off the new fiscal year with a mixed performance. For the quarter ended June 30, 2025 (Q1FY26), the company reported a net profit of ₹12,760 crore, marking a 4.4% quarter-on-quarter (QoQ) increase from ₹12,434 crore reported in Q4FY25.
However, consolidated revenue from operations fell 1.6% sequentially to ₹63,437 crore, down from ₹64,479 crore in the previous quarter. On a year-on-year (YoY) basis, revenue grew marginally, reflecting the overall resilience of the IT sector amid global macroeconomic turbulence.

Revenue in Dollar Terms Shows Marginal Contraction
TCS reported revenues of $7.421 billion, reflecting a 0.6% decrease quarter-over-quarter from the previous $7.465 billion. This drop was largely attributed to currency headwinds and slower decision-making cycles in key markets like the US and Europe.
TCS CFO Samir Seksaria noted that the revenue decline was partly seasonal, coupled with some softness in discretionary spending across sectors like retail, BFSI (Banking, Financial Services & Insurance), and manufacturing. Despite these challenges, the company managed to maintain its operational efficiency, which contributed to margin stability and profit growth.

Dividend Declaration: ₹11 Interim Dividend for Shareholders
TCS has announced an interim dividend of ₹11 per share, reaffirming its dedication to benefiting shareholders. The record date for the dividend payout is set for July 20, 2025, and the payment will be made on or before August 5, 2025.
This dividend announcement aligns with TCS’s track record of consistent shareholder returns and strong cash generation, further underscoring the financial stability of the company despite revenue headwinds.

Key Financial Metrics – Q1 FY26 vs Q4 FY25
Particulars Q1 FY26 Q4 FY25 Change (QoQ)
Revenue (₹ crore) 63,437 64,479 -1.6%
Net Profit (₹ crore) 12,760 12,434 +4.4%
Revenue ($ million) 7,421 7,465 -0.6%
Operating Margin ~24.2% (Est.) ~23.9% (Est.) +30 bps approx.
Dividend per Share ₹11 ₹28 (Final FY25) –

Operational Performance & Segment Highlights
Despite the revenue contraction, TCS reported strong deal wins across key geographies, particularly in North America and the UK. The total contract value (TCV) for Q1FY26 stood at $10.2 billion, signaling robust client demand for cost-optimization and digital transformation initiatives.
Geographical Insights:
North America: Saw marginal weakness in discretionary spending.
UK & Continental Europe: Demonstrated relatively better demand resilience.
India: Continued momentum in government and public sector projects.
Vertical Performance:
The BFSI sector continues to face challenges due to postponed approvals for IT budgets.
Retail & CPG: Softness due to reduced discretionary tech spending.
Healthcare & Life Sciences: A standout performer with double-digit growth.
Manufacturing: Slight decrease due to temporary softness in demand.

Commentary from Management
K Krithivasan, the Chief Executive Officer and Managing Director of TCS, commented:
“We’ve started FY26 on a solid note with strong profitability and healthy deal wins. While the revenue softness is concerning, especially in BFSI and retail, we remain optimistic about the second half of the fiscal year as client confidence improves.”
He further emphasized the company’s commitment to AI investments, including GenAI labs and partnerships, as critical growth drivers in the upcoming quarters.

Hiring & Attrition Trends
In a positive sign for the IT workforce, TCS reported:
Net headcount addition of 2,200 employees.
LTM (Last Twelve Months) attrition rate declined to 13.4%, down from 14.7% in Q4FY25.
The management stated that fresher onboarding and lateral hiring would continue in a calibrated manner based on project pipelines and client requirements.

Analyst & Market Reaction
Market analysts had a muted to slightly positive outlook on the Q1 results. While the revenue decline was anticipated due to seasonality, the profit beat and margin improvement came as a positive surprise.
Brokerages like Motilal Oswal, ICICI Securities, and Axis Capital maintained a ‘Buy’ to ‘Hold’ rating, with a 12-month target price in the range of ₹4,200–₹4,500, depending on future deal conversion and margin sustainability.

Outlook for FY26
With macro pressures expected to persist in the short term, TCS aims to:
Strengthen its AI and cloud offerings.
Focus on operational efficiencies to protect margins.
Invest in upskilling its workforce and enhancing automation across delivery centers.
The company’s robust order book and expanding GenAI services portfolio could help offset the ongoing demand challenges and currency fluctuations in global markets.

Conclusion
TCS’s Q1FY26 results reflect financial resilience and operational strength, despite headwinds in revenue. By sustaining profit growth and maintaining its dividend policy, the company reinforces its status as a bellwether of India’s IT industry. The next few quarters will be critical as TCS banks on its innovation pipeline and deal momentum to navigate a cautious global environment.

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Orient Cables Targets ₹700 Crore IPO for Growth

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LG Electronics’ India unit IPO: valuation, strategy and sector implications

Equities, IPO research, Market News - July 10, 2025

Investor Frenzy: Chemkart, Smarten IPOs 5x Oversubscribed!

Investor Frenzy: Chemkart, Smarten IPOs 5x Oversubscribed!

High demand in the SME sector drives the Chemkart and Smarten Power IPOs, with allotments anticipated by July 10 and listings scheduled for July 14.

Summary:
The initial public offerings (IPOs) of Chemkart India and Smarten Power Systems have seen robust investor participation, each getting subscribed over five times their offer size. Allotment for both issues will be finalised by July 10, with shares set to debut on the BSE SME and NSE Emerge platforms on July 14.

IPO Boom in SME Space: Chemkart India and Smarten Power Systems Shine
The small and medium enterprise (SME) IPO space in India continues to witness strong traction as two recent public issues—Chemkart India and Smarten Power Systems—have both recorded over 5x subscription, signalling elevated investor enthusiasm for promising growth stories in niche sectors.
The subscription window for both IPOs closed recently, and investors are now eagerly awaiting the allotment status, which will be finalised by July 10, 2025. Chemkart India Ltd’s shares are set to be listed on the BSE SME platform, while Smarten Power Systems Ltd will make its debut on the NSE Emerge platform on July 14, 2025.

Chemkart India IPO: Interest Generated by Speciality Chemicals and API Focus
Company Overview:
Chemkart India is a rapidly growing chemical distribution company catering to the Active Pharmaceutical Ingredients (API) and speciality chemicals segment. With a wide customer base and strong supplier partnerships, the company provides critical raw materials for industries ranging from pharmaceuticals to agrochemicals and paints.
IPO Details:
Issue Size: ₹27.04 crore
Price Band: ₹99–₹105 per share
Lot Size: 1,200 shares
Use of Proceeds: Working capital requirements, general corporate purposes, and expansion of warehousing infrastructure.
Investor Response:
The Chemkart IPO was subscribed more than 5.3 times, driven largely by retail investors and HNIs, who accounted for the lion’s share of the bids. The company’s scalable business model, strong financials, and projected revenue growth made it attractive for investors betting on India’s booming chemical and pharmaceutical sectors.

Smarten Power Systems IPO: Riding the Clean Energy Wave
Company Overview:
Smarten Power Systems is a manufacturer of renewable energy products such as solar inverters, batteries, and power backup solutions. The company has witnessed rapid growth amid rising demand for energy-efficient and eco-friendly power solutions, particularly in rural and semi-urban India.
IPO Details:
Issue Size: ₹38.5 crore
Price Band: ₹96–₹102 per share
Lot Size: 1,200 shares
Use of Proceeds: Capital expenditure, R&D, marketing initiatives, and working capital.
Investor Response:
Smarten Power’s IPO was subscribed over 5.7 times, with significant traction from institutional investors betting on the green energy transition. The company’s strong product portfolio, growing distribution network, and alignment with government solar initiatives contributed to the robust response.

What Happens Next: Allotment & Listing Timeline
For both Chemkart and Smarten Power IPOs, the share allotment status is scheduled to be finalised by July 10, 2025. Refunds for shares that were not allotted will be processed by July 11, and the credit for allotted shares in the demat account is anticipated by July 13.
Listing Date for Both IPOs: July 14, 2025
Chemkart India: To be listed on BSE SME
Smarten Power Systems: To be listed on NSE Emerge
Investors should verify the allotment status on the official registrar websites or stock exchange portals.

Market Outlook: Why SME IPOs Are Gaining Traction
The SME IPO sector in India has experienced a revival in investor interest over the last two years. This is fueled by:
Improved financial disclosure norms
High-growth potential of niche companies
Reduced entry barriers for retail investors
Attractive valuations compared to mainboard IPOs
Chemkart and Smarten Power’s oversubscription reaffirms the sentiment that quality SMEs with solid fundamentals and strong growth narratives are capable of delivering multibagger returns post-listing.

Analyst Take:
Market analysts are optimistic about the listing performance of both companies. Given the high demand and investor interest, a robust opening is expected.
“Both companies operate in sectors aligned with structural growth trends—pharma for Chemkart and clean energy for Smarten Power. Post-listing performance will depend on their earnings trajectory and execution capabilities,” said Radhika Seth, a senior equity strategist at an investment firm.

Risks to Watch:
While investor interest is high, experts caution that SME stocks are generally less liquid and more volatile than mainboard stocks. Hence, long-term fundamentals and governance should remain the key drivers of investment decisions.

Conclusion:
The enthusiastic response to Chemkart India and Smarten Power Systems’ IPOs marks yet another successful chapter in India’s growing SME capital market story. With strong fundamentals, favourable sector outlooks, and investor optimism, these companies are poised to attract attention post-listing. However, investors should temper short-term listing expectations with long-term business performance and scalability.

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Rupee Plummets Amid FII Outflows, Trade Concerns

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Equities, Market News, Result Updates - July 9, 2025

Kalyan Jewellers’ Q1 Revenue Shines, but Share Price Dips

Kalyan Jewellers’ Q1 Revenue Shines, but Share Price Dips

Strong Revenue Growth Fails to Lift Sentiment as Gold Price Volatility and Market Caution Weigh on Kalyan Jewellers’ Stock

Introduction
Kalyan Jewellers, one of India’s leading jewellery retailers, delivered an impressive financial performance in the first quarter of FY26. The company’s consolidated revenue surged by 31% year-on-year, reflecting strong consumer demand and continued expansion across India and international markets. However, this positive momentum in business was not mirrored by the stock market, as the share price fell by 2.5% following the Q1 business update. This article explores the key drivers behind the company’s growth, the reasons for the market’s cautious reaction, and what lies ahead for Kalyan Jewellers.

Revenue Growth Defies Market Headwinds
Impressive Top-Line Performance
Kalyan Jewellers reported a consolidated net revenue of ₹5,557.63 crore for Q1 FY26, up 31% from the same period last year. This growth was achieved despite facing intermittent demand disruptions caused by gold price fluctuations and persistent geopolitical tensions, both of which have been influencing consumer sentiment in the jewellery sector.
India and International Operations
• India: The domestic market remained a key growth engine, with revenues rising 31% year-on-year. Festive occasions such as Akshaya Tritiya and the ongoing wedding season played a pivotal role in boosting sales.
• International: Overseas operations mirrored the domestic trend, also posting 31% revenue growth. Notably, the Middle East market saw a 26% increase, primarily driven by strong same-store sales.
Digital Platform Acceleration
Kalyan’s digital-first brand, Candere, stood out with a remarkable 67% revenue growth in Q1 FY26. The success was attributed to a new brand campaign launched in May 2025, which significantly increased both physical showroom footfalls and online engagement.

Aggressive Expansion Strategy
Showroom Network Growth
During the quarter, Kalyan Jewellers expanded its footprint by opening 10 new showrooms under its flagship brand and eight Candere showrooms in India, along with one new outlet in the United States. As of June 30, 2025, the company operated 406 showrooms across its various brands.
Ambitious Plans for FY26
Looking ahead, Kalyan Jewellers has outlined plans to launch 170 new showrooms under both the Kalyan and Candere formats in India and abroad during the current fiscal year. This includes a focus on expanding in non-south Indian markets and strengthening its international presence.

Share Price Reaction: Market Caution Prevails
Stock Movement Post-Q1 Update
Despite the stellar revenue growth, Kalyan Jewellers’ share price fell by 2.5% immediately after the Q1 business update, with the stock hitting an intraday low of ₹563.05 on the BSE. The decline extended to nearly 4% at one point as investors appeared to book profits and react to broader market volatility.
Factors Behind the Decline
• Gold Price Volatility: Persistent fluctuations in gold prices have created uncertainty for both consumers and investors, impacting demand patterns and sentiment.
• Geopolitical Uncertainties: Ongoing global tensions have added another layer of unpredictability to the luxury retail sector.
• Profit Booking: After a period of strong performance, some investors may have chosen to lock in gains, leading to short-term selling pressure.
Digital and Brand Investments Paying Off
Candere’s robust performance highlights the growing importance of digital channels in the jewellery business. The brand’s 67% revenue jump, following a targeted campaign, signals that Kalyan Jewellers’ investments in omnichannel retail and digital marketing are resonating with younger, tech-savvy consumers.

Conclusion
Kalyan Jewellers’ Q1 FY26 results underscore the company’s resilience and adaptability in a challenging market environment. While the 31% revenue growth across both domestic and international operations demonstrates strong underlying demand, the recent share price dip reflects broader market caution and the impact of external uncertainties. As the company continues its aggressive expansion and digital transformation, its ability to navigate volatility and sustain growth will be closely watched by both investors and industry peers.

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Z47 Launches $400M Fund for India’s Tech Boom

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IPO research, Markets - July 7, 2025

Safex Chemicals Plans ₹450 Cr IPO to Strengthen Financial Health and Growth

Safex Chemicals Plans ₹450 Cr IPO to Strengthen Financial Health and Growth

Agrochemical specialist Safex Chemicals prepares for ₹450 crore public issue to strengthen balance sheet, reduce borrowings, and support business expansion.

Safex Chemicals Eyes Capital Markets with ₹450 Crore IPO Plan

Safex Chemicals, a producer in the specialty chemicals space, is preparing to roll out its maiden public share sale, aiming to generate approximately ₹450 crore in capital. The company has formally submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI), signaling its intention to go public in the near term.

The IPO consists of a fresh issue of shares worth ₹450 crore alongside an Offer for Sale (OFS) of up to 3,57,34,818 equity shares, allowing existing shareholders to partially offload their holdings. A reserved portion of the offering has also been allocated for eligible employees, ensuring broader participation within the organization.

Offer Structure and Allotment Criteria

The public issue will follow a book-building process, a common approach in IPOs where demand determines the final price. According to the DRHP, the distribution of the offer will follow these norms:

• A maximum of half the offering is earmarked for allocation to qualified institutional investors (QIBs).
• At least 15% will go to non-institutional investors (NIIs)
• At least 35% of the total issue is designated for individual retail participants.

This allocation ensures that a healthy balance of institutional, high-net-worth, and retail investors can take part in the offering, promoting market diversity and liquidity.

Utilization of IPO Proceeds

Safex Chemicals plans to utilize the capital raised from the fresh issue primarily for debt reduction and operational needs. Below is a detailed division of the primary fund utilization segments:

• ₹255.59 crore is earmarked for repayment or prepayment of outstanding borrowings
• An amount of ₹110 crore is planned to be directed toward clearing outstanding borrowings incurred by its subsidiary, Shogun Organics.
• The remaining funds will go toward general corporate expenses, providing financial flexibility for future strategic initiatives

This reallocation of capital is expected to improve the company’s debt-to-equity ratio and free up internal resources for core business growth.

Company Background: Legacy in Agrochemical Innovation

Established in 1991, Safex Chemicals has grown into a well-recognized player within India’s agrochemical and specialty chemicals landscape. The company focuses on delivering solutions in three major verticals:

• Branded formulations
• Specialty chemical products
• Contract development and manufacturing (CDMO)

Its diverse offerings are tailored to the needs of Indian farmers and international agrochemical firms. Safex has steadily built its reputation for delivering innovative and effective chemical solutions that support modern agriculture and crop protection.

Financial Performance: Revenue Growth Amid Bottom-Line Pressure

Despite experiencing net losses in recent years, Safex Chemicals has recorded robust revenue growth, highlighting the strength of its operational model. A quick overview of the company’s latest financial metrics is outlined below:

Revenue Growth (Consolidated):
• FY23: ₹1,161.02 crore
• FY24: ₹1,404.59 crore
• FY25: ₹1,584.78 crore

Net Profit/Loss (Consolidated):
• FY23: ₹(1.02) crore
• FY24: ₹(22.79) crore
• FY25: ₹(14.29) crore

EBITDA and Margins:
• FY23: ₹149.06 crore (EBITDA margin: 12.84%)
• FY24: ₹118.65 crore (EBITDA margin: 8.45%)
• FY25: ₹233.03 crore (EBITDA margin: 14.70%)

These figures suggest that although profitability has faced headwinds, particularly in FY24, the company has rebounded significantly in FY25 in terms of operational efficiency, as reflected by the improved EBITDA margin.

Growth Strategy and Market Outlook

Safex Chemicals’ IPO move comes at a time when India’s agrochemical and specialty chemical industries are poised for long-term expansion, driven by increasing agricultural needs, global export demand, and regulatory tailwinds for domestic manufacturing.

The company’s decision to clear a substantial portion of its debt signals a strategic shift toward financial consolidation and operational scalability. Additionally, Safex’s involvement in contract development and manufacturing (CDMO) opens avenues for B2B partnerships with global players, potentially enhancing revenue diversity and margin resilience.

With IPO proceeds providing a stronger financial foundation, Safex is expected to channel investments into R&D, production enhancements, and market outreach—further solidifying its competitive edge.

Final Thoughts

Safex Chemicals’ planned ₹450 crore IPO marks a pivotal step in its journey from a long-standing private enterprise to a publicly listed player in India’s high-potential chemical industry. The funds raised will primarily help reduce debt burdens and support operational scaling, especially for its subsidiary Shogun Organics.

Despite recent net losses, the company’s revenue momentum and rebound in EBITDA margins demonstrate underlying business strength and operational resilience. With a 30+ year legacy in agrochemical solutions and a growing role in global supply chains, Safex Chemicals is positioning itself for the next phase of growth with greater agility, transparency, and investor participation.

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Adani Enterprises to Roll Out ₹1,000 Crore NCD Issue with Up to 9.30% Returns

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India’s year-end IPO blitz: risks, rewards and what to watchIndia’s year-end IPO blitz: risks, rewards and what to watch

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Omnitech Engineering Set to Raise ₹850 Crore Through IPO for Expansion Drive

Omnitech Engineering Set to Raise ₹850 Crore Through IPO for Expansion Drive

Engineering firm eyes capital boost through IPO to fuel capacity expansion, reduce debt load, and meet surging global demand for precision solutions.

Firm moves ahead with ₹850 crore IPO roadmap.

Gujarat-based Omnitech Engineering has taken a significant step toward going public by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company plans to raise approximately ₹850 crore through an initial public offering (IPO), as confirmed in its official statement dated June 24, 2025.

This strategic move is aimed at strengthening its financial foundation and scaling up operations to meet growing domestic and international demand. The offering will include both fresh equity shares and a stake sale by one of the promoters.

About Omnitech Engineering: A Precision-Driven Manufacturer

Omnitech Engineering operates as a technology-driven manufacturer, specializing in tailor-made mechanical systems, precision-engineered parts, and end-to-end industrial automation solutions. The firm caters to diverse sectors, including oil & gas, aerospace, automotive, and heavy industrial machinery.

With a strong global footprint, the company currently serves around 220 clients across 22 countries. Among its prominent customers are globally recognized names such as Halliburton Energy Services, Suzlon, Weatherford, Oilgear, Donaldson Company, PUSH Industries, Oshkosh Aerotech, and Bharat Aerospace Metals.

IPO Breakdown: Fresh Issue and Offer-for-Sale

According to the draft filing, the IPO will consist of two parts:

• New Equity Offering: Shares valued at ₹520 crore to be issued
• Offer-for-Sale (OFS): Existing shares valued at ₹330 crore, offloaded by promoter Udaykumar Arunkumar Parekh

Additionally, the company may explore a pre-IPO placement option of ₹104 crore. If this portion is successfully raised ahead of the IPO, the size of the fresh issue will be reduced accordingly.

Fund Utilization Strategy

Omnitech Engineering has laid out a clear plan for the proceeds from the IPO. The newly raised funds are intended to support the following purposes:

• Debt Reduction: A portion of the funds will go toward repaying existing borrowings to strengthen the balance sheet.
• New Manufacturing Units: Investments will be directed toward setting up two new state-of-the-art manufacturing facilities aimed at increasing capacity and product diversification.
• Capital Expenditure and Corporate Needs: Remaining funds will support general corporate purposes and other capital expenditures to drive operational efficiency.

Robust Financial Growth Backing the IPO

The company’s decision to go public is backed by its impressive financial performance in the recent fiscal year. As per data filed with SEBI:

• Net Profit: Soared 132% year-on-year to ₹43 crore in FY 2024–25, up from ₹19 crore in the previous year.
• Revenue: Witnessed a sharp 92% jump, reaching ₹349.71 crore compared to ₹181.95 crore in FY 2023–24.

This rapid growth signals a strong demand for its engineering solutions and validates its expansion ambitions.

Key Stakeholders and IPO Managers

The public issue is being managed by two prominent investment banks — Equirus Capital and ICICI Securities, who are serving as the book-running lead managers. Tasked with overseeing the offer’s registration, MUFG Intime India Pvt. Ltd.—earlier recognized as Link Intime India Pvt. Ltd.—has been officially designated for the role.
This team will be instrumental in facilitating a smooth public offering process and ensuring compliance with SEBI regulations.

Market Position and Strategic Outlook

With a rapidly expanding customer base and global clientele, Omnitech Engineering has positioned itself as a critical player in the precision manufacturing ecosystem. Its products and automation systems serve high-demand sectors that rely heavily on quality, precision, and reliability.

The planned IPO aligns with its broader strategy of leveraging capital markets to fuel innovation, scale operations, and strengthen international presence. The two new upcoming manufacturing units are expected to significantly boost production capacity and allow for a broader product range tailored to evolving industry needs.

Final Thoughts

Omnitech Engineering’s ₹850 crore IPO marks a pivotal chapter in its journey from a regional manufacturer to a global engineering solutions provider. With strong financials, an expanding global customer base, and clear capital deployment plans, the company is set to bolster its market footprint.

By focusing on debt reduction, production expansion, and strategic investments, Omnitech is charting a path toward long-term sustainable growth. As India’s industrial automation and manufacturing sectors gather momentum, the timing of this IPO positions the firm advantageously in a growing market landscape.

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Swiggy’s Financial Turnaround: Losses Narrow, Quick Commerce Surges in 2024

Swiggy’s Financial Turnaround: Losses Narrow, Quick Commerce Surges in 2024

India’s food delivery giant Swiggy slashes annual losses by 30% as quick commerce arm Instamart drives record growth, but competition and expansion keep profitability elusive.

Swiggy’s Financial Performance in 2024
Swiggy’s financial results for calendar year 2024 mark a pivotal moment for the company. According to a recent update from key investor Prosus, Swiggy’s adjusted EBITDA loss shrank by 30%, dropping to $182 million from $261 million the previous year. This turnaround is particularly noteworthy given the company’s continued heavy spending on its quick commerce arm, Instamart.
The company’s Gross Order Value (GOV) rose by 29% year-on-year, propelled by robust growth in both food delivery and the rapid expansion of quick commerce services. In Q1 FY 2025, Swiggy’s gross order value (GOV) jumped by almost 40% y-o-y, driven by an 18% rise in food delivery and a remarkable 101% growth in its quick commerce segment.

Quick Commerce: The Growth Engine
Instamart, Swiggy’s quick commerce vertical, has emerged as the primary driver behind the company’s improved financials. Instamart posted a 101% year-on-year increase in GOV during Q4 FY25, touching ₹4,670 crore. This growth was supported by the addition of 316 new dark stores—more than the total added in the previous eight quarters combined—and expansion into 124 cities.
The average order value on Instamart also increased by 13% to ₹527 in the fourth quarter, indicating higher consumer engagement and larger basket sizes. Swiggy’s management attributes this rapid expansion to strategic investments in market reach, store network, and differentiated offerings such as Maxxsaver and Megapods, which are designed to enhance customer experience and operational efficiency.

Expansion and Innovation
Swiggy’s rapid expansion in quick commerce goes beyond just opening new stores. The company has introduced several new initiatives to attract and retain customers:
• Bolt: Since its October debut, Bolt has contributed close to 9% of Swiggy’s total food delivery volume, helping attract new users and increase average order values.
• Snacc: A 10-minute food delivery service, catering to the growing demand for ultra-fast deliveries.
• Swiggy Scenes: A new feature focusing on restaurant event reservations, similar to Zomato’s dine-out offerings.
• Premium Subscription (One BLCK): Targeting high-value customers with exclusive benefits.
These innovations, along with a focus on segmented offerings and new categories within quick commerce, have helped Swiggy capture more consumption occasions and diversify its revenue streams.

Financial Headwinds: Losses Remain High
Despite narrowing its adjusted EBITDA loss, Swiggy’s overall net losses remain substantial. In Q4 FY 2025, the company posted a net loss of ₹1,081 Cr—almost twice the ₹554 Cr loss recorded in the year-ago quarter. For the full fiscal year, Swiggy’s loss widened by 33% to ₹3,117 crore, even as consolidated operational revenue grew 35% to ₹15,227 crore.
The primary reason for these persistent losses is the company’s aggressive investment in expanding its quick commerce footprint. Swiggy’s expenses have surged, driven by infrastructure development, logistics enhancements, and marketing costs necessary to compete in a market characterized by intense rivalry and rapid innovation.

IPO and Shareholder Movements
Swiggy’s financial journey in 2024 was also marked by a successful public market debut. The company completed a ₹11,400 crore ($1.37 billion) IPO in November, with Prosus reducing its stake to 24.8% and realizing $2.8 billion in value from its original holding. This influx of capital has enabled Swiggy to accelerate its growth initiatives, particularly in quick commerce.

Competitive Landscape and Future Outlook
Swiggy’s rapid expansion comes amid heightened competition from rivals such as Zomato, Blinkit, and Zepto, all vying for dominance in the quick commerce space. The sector is witnessing a phase of rapid innovation, with companies racing to offer faster deliveries, broader product assortments, and deeper market penetration.
Swiggy’s CEO Sriharsha Majety remains optimistic, emphasizing the company’s focus on balancing food delivery margin expansion with growth investments in quick commerce. The company aims to double its quick commerce business space in the second half of FY25, signaling continued momentum in store additions and market coverage.

Conclusion
The company’s 2024 performance reflects the significant role quick commerce is playing in transforming India’s digital landscape. By narrowing its losses and doubling down on Instamart, Swiggy has positioned itself as a formidable player in both food delivery and grocery segments. However, the path to sustained profitability remains challenging, with high operational costs, ongoing investments, and fierce competition shaping the road ahead.
As Swiggy continues to innovate and expand, its ability to balance growth with financial discipline will determine its long-term success in the evolving Indian market.

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Kalpataru Secures ₹708 Crore from Anchor Investors!

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IPO research, Market News, Real Estate - June 24, 2025

Kalpataru Secures ₹708 Crore from Anchor Investors!

Kalpataru Secures ₹708 Crore from Anchor Investors!

GIC Singapore and Bain Capital are leading the anchor book, backed by nine key investors who are supporting Kalpataru’s growth journey.

Summary:
Real estate powerhouse Kalpataru has raised ₹708 crores from nine anchor investors ahead of its public offering, demonstrating strong confidence from institutional investors in its fundamental strengths and growth potential. Key participants in the anchor book include GIC of Singapore, Bain Capital’s GSS Opportunities Investment, and leading domestic mutual funds such as SBI MF and ICICI Prudential MF. This anchor round not only strengthens Kalpataru’s capital base but also sets a robust tone for its upcoming equity issuance.

In a significant boost to its capital-raising plans, Kalpataru Projects International Limited (KPIL) has secured a ₹708 crore investment from a cohort of nine high-profile anchor investors days before its proposed equity public issuance. The funding round was led by Singapore’s GIC, one of the most significant sovereign wealth funds globally, along with Bain Capital’s GSS Opportunities Investment. This demonstrates a significant level of confidence from institutions in Kalpataru’s core business strengths and anticipated growth.
The anchor book received more subscriptions than available shares, indicating strong interest from prominent investors, both from within the country and abroad. Other participants include SBI Mutual Fund, ICICI Prudential Mutual Fund, SBI General Insurance, Aditya Birla Sun Life Insurance, and 360 ONE WAM, showcasing a diverse mix of global and domestic investment institutions. The overwhelming response comes at a time when India’s real estate and infrastructure sectors are undergoing a structural transformation led by policy reforms, urbanization, and rising private and public investments.

Who Is Kalpataru Projects?
Kalpataru Projects International Ltd. is a part of the Kalpataru Group, a prominent name in India’s infrastructure, EPC (Engineering, Procurement & Construction), and real estate sectors. With a multi-decade presence, Kalpataru has executed large-scale infrastructure projects across power transmission, railways, oil & gas pipelines, and buildings in over 70 countries.
The company is known for its technical expertise, timely project delivery, and a diversified business model that spans core infrastructure and real estate development. In recent years, KPIL has pivoted towards expanding its international EPC footprint while maintaining strong performance in domestic real estate, primarily in metros and Tier-1 cities.

The Anchor Round: Strategic Importance
The ₹708 crore obtained through the anchor route is an essential step prior to Kalpataru’s forthcoming public offering, assisting in:
Set a benchmark valuation for the IPO
Establish early credibility and demand
Infuse fresh capital to deleverage the balance sheet and fund growth projects
Attract more retail and HNI participation when the public tranche opens
By engaging well-known anchor investors, Kalpataru not only boosts its brand image but also increases the likelihood of a successful listing with effective price discovery.

Why Investors Are Bullish
There are several reasons why both foreign and domestic institutional investors are lining up behind Kalpataru:
1. Robust Project Pipeline
Kalpataru has a diversified order book exceeding ₹35,000 crore, with significant visibility in power transmission and distribution, railways, and water infrastructure segments. This ensures revenue predictability and scalability.
2. Pan-India and Global Presence
Its operations span across 70+ countries, with an expanding footprint in Africa, the Middle East, and Southeast Asia, de-risking the company from over-reliance on the Indian market alone.
3. Sectoral Tailwinds
India’s infrastructure and housing sectors are witnessing a renaissance, supported by:
Government initiatives like PM Gati Shakti, Housing for All, and Smart Cities Mission
Increased budgetary allocations for capex-led growth
FDI inflows in construction and infrastructure
4. Strong Corporate Governance
Backed by a reputed promoter group, Kalpataru has maintained high governance standards, timely disclosures, and efficient capital allocation—attributes highly valued by institutional investors.
5. Deleveraging Strategy
A portion of the IPO and anchor fundraise proceeds will go toward reducing debt, thereby improving return ratios and lowering interest burden, making the stock more attractive in the long term.

Statements from Market Experts
Rohit Agrawal, Head of Institutional Research at a Mumbai-based brokerage firm, stated:
“Kalpataru is well-positioned to benefit from India’s infrastructure boom and increasing global EPC demand. The anchor investor participation validates its growth roadmap and financial stability.”
Shweta Mehta, Fund Manager at a large domestic mutual fund, added:
“The company’s diversified order book, global execution track record, and focus on clean energy transmission make it a compelling infrastructure play over the next decade.”

Implications for the IPO
With such strong backing from heavyweight institutions, Kalpataru’s IPO is expected to receive robust demand across investor categories. Anchor investment often sets the tone for the remainder of the subscription period, especially for Qualified Institutional Buyers (QIBs), High Net-Worth Individuals (HNIs), and retail investors looking for confidence signals in turbulent markets.
Additionally, it could lead to better pricing for the IPO, narrower discounting, and healthy listing gains post debut.

The Bigger Picture
Kalpataru’s successful anchor fundraise is not an isolated event but part of a broader trend of rising investor appetite in Indian infrastructure and real estate. As capital markets become more confident about India’s long-term policy continuity and capex-led growth, companies with solid fundamentals, like Kalpataru, are poised to benefit.
Moreover, this also reflects a maturing of India’s capital markets, where global investors are not just betting on startups but also backing real-sector players with tangible assets and predictable cash flows.

Conclusion
Kalpataru has successfully secured ₹708 crore from leading institutional investors in India and around the globe, positioning the company to embark on its next growth phase with enhanced strength. As its IPO nears, the backing from GIC, Bain Capital, SBI Mutual Fund, and others sends a strong message of confidence—not just in the company but also in the broader India growth story.

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Sambhv Launches IPO, Sets ₹2,400 Crore Valuation

Sambhv Launches IPO, Sets ₹2,400 Crore Valuation

IPO Overview: Price Band and Fundraising Target

Sambhv Steel Tubes, a leading Indian manufacturer of electric resistance welded (ERW) pipes, has opened its initial public offering (IPO) with a price range between ₹77 and ₹83 per equity share. At the higher end of the band, the company’s post-issue valuation reaches around ₹2,400 crore.

The IPO aims to raise up to ₹540 crore, which includes a fresh share issue worth ₹440 crore and an offer-for-sale (OFS) component of ₹100 crore, where existing promoters and shareholders will divest part of their stakes.

Purpose of the Issue: Strengthening Finances and Operations

The majority of the funds raised through the fresh issue—around ₹390 crore—will be used to repay outstanding borrowings. This move is intended to ease the company’s debt burden and improve financial stability.

The remaining proceeds will support general business activities, such as improving working capital, pursuing expansion opportunities, and upgrading operational efficiency across its existing value chain.

Company Profile: Vertically Integrated Manufacturing Advantage

It operates a backward-integrated production facility in Raipur, Chhattisgarh, allowing it to control the full production lifecycle—from sponge iron to hot-rolled coils to finished pipes.

This integration gives Sambhv a competitive edge by reducing dependence on external suppliers and ensuring better cost control and product quality throughout its manufacturing operations.

Distribution Network and Market Presence

As of the end of FY24, Sambhv had an annual production capacity of approximately 600,000 tonnes. The company services customers through 33 distributors spread across 15 Indian states and one union territory, backed by a retail network of over 600 dealers.

Its product range caters to multiple sectors, including infrastructure, telecom, oil and gas, automotive, agriculture, firefighting, and solar—positioning it as a well-diversified steel tube supplier.

Promoters and Shareholding Details

Founded in 2017 under the name Sambhv Sponge Power, the company rebranded in 2024 to better align with its core business in steel pipes.

The promoter group includes members of the Goyal family—namely Brijlal, Suresh Kumar, Vikas, Sheetal, Shashank, and Rohit Goyal—who will collectively divest ₹100 crore worth of shares through the OFS component of the IPO.

Financial Highlights: Consistent Revenue and Profit Growth

Sambhv reported strong financial results in FY24, with revenue rising to ₹1,286 crore, up from ₹937 crore in FY23—representing a growth of 37%.

This performance reflects the company’s increasing operational efficiency and growing demand for domestically manufactured ERW pipes.

According to CRISIL, the Indian market for steel pipes and tubes is expected to grow at a compound annual growth rate (CAGR) of 8–9%

IPO Allocation and Structure

The IPO will follow a book-building process. 50% of the shares are reserved for Qualified Institutional Buyers (QIBs), 15% for High Net-Worth Individuals (HNIs), and the remaining 35% for retail individual investors.

This allocation model is designed to ensure balanced participation from large institutions and retail investors alike, potentially increasing the stability and attractiveness of the IPO.

Use of Proceeds:

A major portion of the capital raised will go toward repaying loans, which is expected to reduce interest burdens and enhance the company’s credit profile.

The remaining funds will be used for operational improvements and scaling business operations to meet rising demand across sectors. This includes investments in working capital and modernization of production facilities.

Investment Perspective: Opportunities and Risks

Its backward-integrated operations and expanding market presence make it a strong contender in the ERW pipe space.

However, prospective investors should be aware of potential challenges such as fluctuations in global steel prices, supply chain constraints, and risks tied to aggressive capacity expansion. Managing these effectively will be key to sustaining margins and returns.

Conclusion: A Strong Step Toward Public Growth

Sambhv Steel Tubes’ IPO is a strategic move to capitalize on its growth trajectory, improve its balance sheet, and strengthen market positioning. With a valuation of ₹2,400 crore and a well-structured offering, the company aims to build investor confidence while driving its long-term expansion in India’s infrastructure-driven economy.

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4. Quarterly Performance (Q4 FY25)

5. Financial Highlights (P&L Statement)

6. Financial Highlights
Balance Sheet Statement

7. Financial Highlights (Cash Flow Summary)

Key Cash Flow Highlights (FY21–FY25)

8. Ratio Analysis

Key Ratio Analysis – FY25

9. Financial Projections

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2. Premium Market Exposure at Mid-Cap Valuations

3. Proven Execution & Operational Strength

4. Clean Financials and Robust Pipeline

5. Promoter Integrity & Institutional Governance

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4. Quarterly Performance (Q4 FY25)

5. Financial Highlights (P&L Statement)

6. Financial Highlights Balance Sheet Statement

7. Financial Highlights (Cash Flow Summary)

Key Cash Flow Highlights (FY21–FY25)

8. Ratio Analysis

Key Ratio Analysis – FY25

9. Financial Projections

14. Investment Thesis: Arkade Developers Ltd. — A Rare Mid-Cap Compounder in Premium Real Estate

2. Premium Market Exposure at Mid-Cap Valuations

3. Proven Execution & Operational Strength

4. Clean Financials and Robust Pipeline

5. Promoter Integrity & Institutional Governance

Conclusion: A Mispriced Premium Real Estate Opportunity

15. Conclusion

6. Financial Highlights
Balance Sheet Statement