Core4 Engineers Limited
What they do: Provides end-to-end project design, engineering, procurement, construction, installation, testing and commissioning, alongside operation and maintenance, subcontracting, and in-house manufacture of electrical panels and compact substations.
By IPO Milega Research · Published
Core4 Engineers reported FY2026 revenue of ₹913.383 million and net profit of ₹123.661 million, with strong year-on-year growth.
- GMP (unofficial)
- +0%
- Grey market premium
- Opens
- 23 Oct
- Closes 27 Oct
- Min. investment
- N/A
- One lot
GMP is an unofficial grey market indication. GMP updated 23 Oct, 17:05 IST.
- Price band
- ₹88-93
- Lot size
- N/A
- Min. investment
- N/A
- Issue size
- N/A
- Open23 Oct 2026
- Close27 Oct 2026
- Allotment28 Oct 2026
- Listing30 Oct 2026
Overview
₹₹93 (+0%)
GMP trend
Unofficial grey market quotes, times in IST
Where the money goes
- To the company
- ₹48 Cr
- Fresh issue
- To selling shareholders
- ₹0 Cr
- No offer for sale
- Capital expenditure for new manufacturing facility and corporate office₹4.12 Cr8%
- Funding incremental working capital requirements₹40.48 Cr74%
- General Corporate Purposes₹10.22 Cr19%
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
- Performance6.0
- Flexibility6.0
- Timing5.0
- Risk3.0
FY2026 revenue grew to ₹91.34 crore and net profit to ₹12.37 crore, with a 13.54% net profit margin. Growth and profitability support moderate upside, while ₹31.58 crore of debt, negative operating cash flow and substantial receivables limit confidence. No valuation data is available to support a stronger estimate.
Strengths3
- Built an ongoing project portfolio of approximately ₹285.83 crore across railways, water and wastewater, and power transmission.
- Secured major contracts including a ₹30.86 crore KPTCL substation project and a ₹20.80 crore CESC substation and line project.
- Reported FY2026 revenue of ₹91.34 crore and PAT of ₹12.37 crore.
Concerns5
- Customer and revenue concentration is high: the top five customers generated 85.49% of revenue in the June 2026 period, while Karnataka contributed 95.01%.
- Operating cash flows were negative in each period presented; receivables reached ₹10,154.46 lakhs, with ₹1,526.51 lakhs overdue by more than one year, and short-term borrowings were ₹3,497.36 lakhs.
- Two government contracts were terminated and remain in arbitration. The company’s claims total ₹1,858.43 lakhs, and recovery, timing, and outcomes are uncertain.
- Project delivery, order inflows and margins face delays, cancellations, cost overruns, intense tender competition, customer payment delays, and reliance on government budgets and approvals.
- Water and wastewater treatment rose to 87.07% of service revenue for the June 2026 period, while operations and ongoing projects are concentrated in Karnataka.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum2,23,2002 lots, 2400 shares
- Retail Maximum2,23,2002 lots, 2400 shares
- S-HNI Minimum3,34,8003 lots, 3600 shares
- S-HNI Maximum8,92,8008 lots, 9600 shares
- B-HNI Minimum10,04,4009 lots, 10800 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 2 | 2400 | 2,23,200 |
| Retail Maximum | 2 | 2400 | 2,23,200 |
| S-HNI Minimum | 3 | 3600 | 3,34,800 |
| S-HNI Maximum | 8 | 9600 | 8,92,800 |
| B-HNI Minimum | 9 | 10800 | 10,04,400 |
Timing
5.0/10Core4 Engineers has operated since 2014 and is now using the public market after becoming a public limited company. The issue structure supports execution, although the excerpt offers little basis to judge broader investor appetite or whether current conditions favor an SME offering. Overall timing is neutral.
- Time to market
- The company has completed key preparation steps, including appointing a lead manager and securing underwriting. This suggests readiness to access the market, without establishing that the timing coincides with especially favorable demand.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Neutral
- Time to market
- 5.0
- Listing on
- BSE, NSE
Key milestones
- 23 Oct 2026IPO Opens
- 27 Oct 2026IPO Closes
- 28 Oct 2026Basis of Allotment
- 30 Oct 2026Listing Date
Financials
6.0/10- Revenue
- ₹91.79 Cr
- +165.3%
- Profit after tax
- ₹12.37 Cr
- +224.7%
- Net margin
- 13.5%
- +2.5 pts
- Assets
- ₹116 Cr
- +73.3%
- Return on equity
- 39.81%
- Debt to equity
- 1.02
- Revenue CAGR
- 65.2%
- ROCE
- 13.23%
- Return on net worth
- 16.56%
- NAV per share (₹)
- 25.18
- Price to book
- 3.69
Financial performance trend
Amount ₹ in croresCore4 Engineers reported FY2026 revenue of ₹913.383 million and net profit of ₹123.661 million, with strong year-on-year growth. Profitability is positive, while high borrowings, negative operating cash flows and a large receivables balance weigh on the financial profile.
FY2026 borrowings were ₹31.58 Cr, equal to 1.02 times equity and largely short-term. IPO proceeds are not allocated to debt repayment; they are intended for property acquisition, working capital and general corporate purposes. Borrowings and working-capital needs warrant attention.
Fresh issue goes to the company. OFS goes to the selling shareholders.
None; no offer for sale is indicated.
The issue is a fresh issue raising capital for a manufacturing facility and corporate office property (₹4.12 Cr), incremental working capital (₹40.48 Cr) and general corporate purposes. No existing shareholders are identified as selling.
Risk
3.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks4
- Market risks2
- Operational risks3
- Regulatory risks3
Risk is elevated by weak operating cash flows, heavy working-capital needs, customer and geographic concentration, execution and supply exposures, pending arbitration, and compliance and reporting issues.
How the company offsets these
The company evaluates customer credit, engages multiple vendors, monitors project execution, has sought adjudication to regularise the private-placement issue, and reports strengthened accounting and compliance processes.
Financial risks4
- Negative operating cash flows, high working-capital requirements, overdue receivables, short-term borrowing and debt-servicing exposure.
- Performance guarantees may constrain credit and liquidity or be invoked; contingent liabilities and costs of delays may further strain cash flows.
- Revenue concentration among a few customers increases exposure to payment defaults and loss of business.
- Unaudited joint-venture financial information and bank-reconciliation differences may affect reporting reliability.
Market risks2
- High customer, Karnataka, and water and wastewater sector concentration.
- Order inflows depend on government spending, tender awards, customer capital expenditure, and competitive bidding; pricing pressure may reduce margins.
Operational risks3
- Project delays, cancellations, cost overruns, and contract terminations may affect revenue, margins, reputation, and future bidding.
- Supplier concentration, material-price volatility, subcontractor dependence, and joint-venture partner performance may disrupt execution.
- Pending arbitration over two terminated railway contracts creates uncertainty around the company’s compensation and guarantee-refund claims.
Regulatory risks3
- Private-placement funds were not held in a separate bank account; an adjudication application is pending.
- FY2024 consolidated statements were not filed correctly, and re-filing remains incomplete due to portal issues.
- Past audit qualification, bank-statement differences, and delays in GST, EPF, ESIC and TDS filings may lead to regulatory action or penalties.
Performance
6.0/10Core4 combines EPCC project execution and panel manufacturing across water and wastewater, railways, power transmission and distribution, and automation. Revenue grew sharply in FY2026 and the order book was ₹285.83 crore, while negative operating cash flow, receivables concentration, working-capital demands and geographic concentration temper the performance assessment.
- Historical growth
- Revenue from operations rose from ₹34.16 crore in FY2025 to ₹91.34 crore in FY2026, an increase of approximately 167%. FY2026 PAT was ₹12.37 crore. June 2026 quarter revenue was ₹45.65 crore and PAT was ₹6.17 crore; this period is not directly comparable with a full year., Approximately 167% revenue growth from FY2025 to FY2026.
- Market comparison
- The company operates in sectors with reported market growth forecasts, including 11.2% CAGR for water and wastewater treatment and 10.7% for railway EPC from FY2025 to FY2030. No peer-company financial or operating benchmarks are supplied, so relative performance against listed peers cannot be assessed. Core4’s 87.07% water and wastewater share of service revenue and 95.01% Karnataka revenue concentration indicate limited diversification across services and geography.
- Future potential
- Infrastructure spending and forecast growth in water, wastewater and railway EPC markets provide demand opportunities. Core4’s order book supports near-term execution visibility, though conversion depends on project delivery, collections and working-capital availability.
- Operational consistency
- FY2026 operating cash flow was negative ₹10.81 crore and June 2026 quarter operating cash flow was negative ₹8.32 crore. Receivables were ₹101.54 crore at June 30, 2026, with a 174-day receivables period and 165-day working-capital cycle. Operations were concentrated in Karnataka, which generated 95.01% of June 2026-period revenue. Outsourced specialist testing and powder coating, on-demand material purchases without long-term supply contracts, and reliance on third-party logistics add execution and supply risks.
- Experience
- The information supplied identifies promoter shareholdings but does not detail management members’ professional experience or sector track records. Promoters held 82.09% as at June 30, 2026.
- Track record
- FY2026 reported profitability and revenue growth indicate execution progress. However, operating cash flow was negative ₹10.81 crore in FY2026 and negative ₹8.32 crore in the June 2026 quarter. Directors also guaranteed borrowings.
Key achievements
- 01Built an ongoing project portfolio of approximately ₹285.83 crore across railways, water and wastewater, and power transmission.
- 02Secured major contracts including a ₹30.86 crore KPTCL substation project and a ₹20.80 crore CESC substation and line project.
- 03Reported FY2026 revenue of ₹91.34 crore and PAT of ₹12.37 crore.
Flexibility
6.0/10The company serves several infrastructure markets and both public and private clients. Private-sector revenue rose to 67.66% in FY2026 from 30.34% in FY2024, while its order book spans multiple states. Revenue remains geographically concentrated, with Karnataka contributing 85.65% in FY2026.
Revenue and margins increased over FY2024–FY2026, and the debt-equity ratio improved from 2.60 to 1.02. However, the working-capital cycle was 240 days in FY2026, trade receivables were ₹73.25 crore, and the company plans to use ₹40.48 crore of IPO proceeds for incremental working capital.
Integrated EPCC capabilities, in-house panel manufacturing and testing, and a vendor and subcontractor network allow project-specific execution across disciplines. Project volumes and scopes vary, while average project duration rose to 13 months from 8 months in FY2024 as the company took on larger contracts.
Core4 Engineers has moderate adaptability, supported by work across railways, power, water, automation and panel manufacturing. In-house production and a ₹285.83 crore order book support execution flexibility. High receivables, working-capital needs and Karnataka revenue concentration constrain agility.
- Product diversification
- The company provides railway electrification and infrastructure, EHT transmission and distribution, water and wastewater EPCC, SCADA and automation, and HT/LT panels and compact substations. Revenue remains service-led, with product revenue at 3.17% in FY2026 and 1.16% in the period ended June 30, 2026.
- Future adaptability
- The proposed facility acquisition and working-capital funding may support expanded manufacturing, SCADA and IoT assembly, and larger project execution. Plans to pursue PPP and asset-based projects could broaden revenue sources, though that vertical currently generates no revenue. Execution will depend on managing receivables, funding needs and expansion risks.
The data on this page has been reviewed manually by the IPO Milega research team. It is not investment advice, and IPO Milega accepts no responsibility for losses arising from any investment decision. Investments in the securities market are subject to market risks. Read all the related documents, including the full prospectus, carefully before investing.