Acme India Industries
What they do: The business appears diversified across operating revenue, subsidiary/JV income, and related-party transactions, with borrowing used mainly for working capital and some vehicle finance.
By IPO Milega Research · Published · Updated
Analysis score 5.6 +1.5 for 137.93x QIB subscription
The company shows moderate fundamentals with healthy profitability and reasonable leverage improvement, but declining coverage ratios and working-capital efficiency.
- Listing gain
- +12.76%
- Listed at ₹221
- Subscribed
- 124.23x
- Total
- Retail odds
- 1.2%
- 1 in 86
GMP is an unofficial grey market indication. GMP updated 11 Oct, 21:53 IST.
- Price band
- ₹186-196
- Lot size
- 1200 shares
- Min. investment
- ₹2,35,200
- Issue size
- 122 Cr.
- Open30 Sept 2026
- Close6 Oct 2026
- Allotment7 Oct 2026
- Listing9 Oct 2026
Overview
Estimated from the current subscription figures. Tap a category to work it out for your application size.
- QIB
- 137.93x
- NII
- 196.27x
- Retail
- 85.5x
₹236 (+20.41%)
GMP trend
Unofficial grey market quotes, times in IST
Where the money goes
- To the company
- ₹100 Cr
- Fresh issue
- To selling shareholders
- ₹16 Cr
- Offer for sale
- Funding to meet working capital requirements₹38 Cr30%
- Repayment and/or pre-payment, in full or part, of borrowing availed by Company₹41 Cr33%
- Funding Capital Expenditure towards purchase of additional plant & machinery₹6.27 Cr5%
- General Corporate Purposes₹1.46 Cr1%
- Issue Expenses₹22.1 Cr18%
- Offer for sale: goes to selling shareholders₹16 Cr13%
Outer ring: estimated gain
How the score adds up
The overall score is the average of these five, nudged by QIB demand once bidding closes.
- Financials6.0
- Performance7.0
- Flexibility7.0
- Timing4.0
- Risk4.0
GMP संकेतक 15.31% है, इसलिए near-term listing upside मध्यम दिखता है. Business execution is respectable with steady profit growth, improving EBITDA margin, and a healthy order book, which supports sentiment. However, this is offset by heavy Indian Railways dependence, tender-driven revenue, litigation/tax disputes, leverage, and working-capital stress, so upside appears market-led rather than fundamentals-led.
Strengths5
- Completed 28 turnkey furnishing projects and delivered 1,610 coaches since 2017.
- Refurbished and upgraded 1,888 coaches since the first upgradation contract in 2018.
- Completed 10,948 toilet upgrade units.
- Built an order book of ₹73,797.33 lakhs across 40 orders as of June 30, 2026.
- Operates across 16 railway zones, with 3 production units and 2 mid-life rehabilitation units.
Concerns5
- Heavy reliance on Indian Railways for revenue and order book exposes the company to policy, tender, renewal, and counterparty concentration risk.
- Tender-based contracts provide no assurance of award, continuation, or profitability of future railway orders.
- Warranty, inspection, and quality failures can cause rework, replacements, penalties, product liability, and liquidity stress through withheld or recovered amounts.
- Outstanding litigation and tax proceedings create contingent liabilities, potential cash outflows, and adverse reputational impact.
- High debt and rising finance costs may pressure margins and working capital.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum2,35,2002 lots, 1200 shares
- Retail Maximum2,35,2002 lots, 1200 shares
- S-HNI Minimum3,52,8003 lots, 1800 shares
- S-HNI Maximum9,40,8008 lots, 4800 shares
- B-HNI Minimum10,58,4009 lots, 5400 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 2 | 1200 | 2,35,200 |
| Retail Maximum | 2 | 1200 | 2,35,200 |
| S-HNI Minimum | 3 | 1800 | 3,52,800 |
| S-HNI Maximum | 8 | 4800 | 9,40,800 |
| B-HNI Minimum | 9 | 5400 | 10,58,400 |
Timing
4.0/10Overall timing looks moderate to weak. The offer size is manageable, and the presence of a monitoring agency adds some process discipline, but the disclosure shows heavy intra-group dealings, frequent related-party transactions, and multiple director/KMP changes, which can weigh on investor confidence and reduce the attractiveness of launching into uncertain market sentiment. Based only on the provided text, the issue does not appear to be launched from a position of unusually strong strategic timing.
- Time to market
- The company appears to be accessing the market relatively early, with limited operating history and a complex related-party structure. That suggests a need for capital and liquidity, but not a clearly optimal market window.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Neutral
- Time to market
- 4.0
- Listing on
- BSE SME
Key milestones
- 30 Sept 2026IPO Opens
- 6 Oct 2026IPO Closes
- 7 Oct 2026Basis of Allotment
- 8 Oct 2026Refunds Initiated
- 8 Oct 2026Credit to Demat Account
- 9 Oct 2026Listing Date
Financials
6.0/10- Revenue
- ₹268 Cr
- +25.5%
- Profit after tax
- ₹24.36 Cr
- +48.0%
- Net margin
- 9.1%
- +1.4 pts
- Assets
- ₹383 Cr
- +40.5%
- Return on equity
- 23.52%
- Debt to equity
- 0.82
- Current ratio
- 1.26x
- ROCE
- 23.20%
- Return on net worth
- 23.52%
- NAV per share (₹)
- 59.94
- Price to book
- 3.27
Financial performance trend
Amount ₹ in croresThe company shows moderate fundamentals with healthy profitability and reasonable leverage improvement, but declining coverage ratios and working-capital efficiency. Revenue and profits grew from the available metrics, while debt remains meaningful and liquidity is only modest.
Borrowings are material but not excessive. The latest disclosed secured loans total about ₹65.87 Cr and are mainly working-capital facilities. No specific IPO debt-repayment use is stated in the provided text, so debt reduction is not confirmed as an object of the issue.
Fresh issue goes to the company. OFS goes to the selling shareholders.
Promoter Suraj Pandey is selling 8,01,600 shares in the OFS.
The company is raising fresh capital through the fresh issue, while the promoter is partially exiting/cashing out through the OFS. The stated use of net proceeds is referenced but not detailed in the provided text.
Risk
4.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks3
- Market risks3
- Operational risks3
- Regulatory risks3
High dependence on Indian Railways, significant litigation and warranty/tax disputes, and rising costs create meaningful earnings, cash-flow, and contract-renewal risk.
How the company offsets these
Diversify customers, strengthen quality and warranty controls, provision for disputes, improve documentation/compliance, and reduce leverage through disciplined working-capital management.
Financial risks3
- Outstanding tax disputes and contingent liabilities may result in material cash outflows.
- High borrowings and rising finance costs increase leverage and interest burden.
- Sharp increases in materials, employee, finance, and other expenses may reduce margins.
Market risks3
- Revenue concentration in Indian Railways creates dependence on a single customer segment.
- Tender-based business faces uncertainty in bid acceptance and contract renewal.
- Policy or procurement changes by the Ministry of Railways/GoI could materially affect business.
Operational risks3
- Quality, inspection, warranty, and product defect issues can lead to rework, recalls, penalties, and withheld payments.
- Delays, execution issues, and termination risk exist in project-based railway contracts.
- Seasonality and dependence on single or few customers can affect operational stability.
Regulatory risks3
- Tax assessments, appeals, and direct/indirect tax disputes may lead to adverse orders and penalties.
- Pending criminal complaints under Section 138 of the Negotiable Instruments Act may create legal and reputational exposure.
- Copyright and trademark objections/disputes may affect intellectual property rights and usage.
Performance
7.0/10ACME India Industries Limited shows solid execution in a niche railway coach interiors business, with revenue rising 25.6% in FY26, EBITDA margin improving to 15.1% and an order book of ₹73,797.33 lakhs. Performance is supported by repeat railway contracts, diversified work streams and operating leverage, but growth is uneven across years and the business remains tender-driven and heavily linked to Indian Railways spending.
- Historical growth
- Revenue grew from ₹21,343.46 lakhs in FY24 to ₹26,370.77 lakhs in FY26; FY25 was a small dip before a strong FY26 rebound. EBITDA increased from ₹2,957.07 lakhs to ₹3,981.59 lakhs, while PAT rose from ₹1,920.73 lakhs to ₹2,435.77 lakhs over the same period., Revenue CAGR ~11.1% and PAT CAGR ~12.6% over FY24-FY26, with a FY25 softness followed by FY26 recovery.
- Market comparison
- Versus established peers such as CREW and Hindustan Fibre Glass, ACME appears smaller and younger, but it has built a credible niche in premium coach furnishing, refurbishment and toilet modernization. Its differentiators are a diversified service mix, in-house manufacturing, certifications, and newer technology tie-ups; however, its operating history is shorter and scale is still modest relative to long-established peers.
- Future potential
- Positive, driven by a large order book, low plant utilization, railway modernization spending, and expansion into repair, VSS, CVVRS and PAPIS-related opportunities.
- Operational consistency
- The business traces back to 2012 as a proprietorship and has been operating in railway coach solutions since 2017 in its current form. Revenue and profits are positive and growing overall, but FY25 showed a revenue and PAT dip before recovery in FY26, indicating decent but not fully stable execution.
- Experience
- Promoter-Managing Director Suraj Pandey has over 15 years of industry experience; Promoter and Whole-Time Director Sadhvi Pandey has about 10 years. The board includes members with 42, 42 and 38 years of railway/engineering-related experience.
- Track record
- Management has demonstrated contract execution across Indian Railways, including turnkey furnishing, refurbishment and toilet upgrades, with repeat business and an expanding order book.
Key achievements
- 01Completed 28 turnkey furnishing projects and delivered 1,610 coaches since 2017.
- 02Refurbished and upgraded 1,888 coaches since the first upgradation contract in 2018.
- 03Completed 10,948 toilet upgrade units.
- 04Built an order book of ₹73,797.33 lakhs across 40 orders as of June 30, 2026.
- 05Operates across 16 railway zones, with 3 production units and 2 mid-life rehabilitation units.
- 06Holds ISO 9001:2015 and ISO 15085 certifications and is empanelled as a Business Associate under a Navratna PSU.
Flexibility
7.0/10The company operates across turnkey furnishing, refurbishment, toilet upgrades, and supply of railway interior components, with footprints across 16 railway zones and exposure to new tech-led opportunities such as VSS and PAPIS. However, customer concentration in Indian Railways and tender-based procurement reduce external market flexibility.
Revenue grew to ₹26,370.77 lakhs in FY26 from ₹20,999.52 lakhs in FY25, while net worth rose to ₹10,354.71 lakhs from ₹5,536.82 lakhs. EBITDA margin improved to 15.10%, indicating better operating resilience, though the business remains contract-dependent.
Operational agility appears strong due to multi-location execution, in-house testing and manufacturing, low capacity utilization across several product lines, and the ability to execute varied coach variants and retrofit work. The company has also completed 28 turnkey projects, 1,888 refurbishment/upgradation coaches, and 10,948 toilet upgrades.
ACME India shows moderate-to-strong flexibility, supported by a broadened railway portfolio, multiple service lines, in-house manufacturing, and active expansion into technology-led offerings. Its tender-based model and deep dependence on Indian Railways limit complete autonomy, but low plant utilization and a healthy order book provide room to scale and adapt.
- Product diversification
- The company has diversified within the railway coach ecosystem across turnkey furnishing, refurbishment/upgradation/conversion, toilet modernization, and manufacturing/supply of FRP products, sanitary ware, epoxy flooring, DGFRP, toilet doors, intercommunication doors, fire barrier coatings, Braille signage, and VCBs. It also has tie-ups for specialized doors, coatings, and PAPIS-related opportunities.
- Future adaptability
- Future adaptability looks positive because the company has room to scale existing manufacturing capacity, a diversified order book, and exposure to railway modernization themes. Its ability to absorb new technologies and partner with global players should support further expansion, provided it manages execution, certification, and client concentration risks.
Latest on Acme India Industries IPO
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