Ravita Engineering Services Limited
What they do: The company executes electro-mechanical projects and provides services, with revenue recognized from customer contracts as work is performed or on transfer of control.
By IPO Milega Research · Published
Revenue rose sharply from ₹1,349.25 million in FY2024 to ₹27,763.29 million in FY2026, with profit after tax rising to ₹2,803.60 million.
- GMP (unofficial)
- +3.57%
- ₹4 a share
- Opens
- 13 Oct
- Closes 15 Oct
- Min. investment
- N/A
- One lot
GMP is an unofficial grey market indication. GMP updated 13 Oct, 12:07 IST.
- Price band
- ₹105-112
- Lot size
- N/A
- Min. investment
- N/A
- Issue size
- Approx 116.05 Crores
- Open13 Oct 2026
- Close15 Oct 2026
- Allotment16 Oct 2026
- Listing21 Oct 2026
Overview
₹116 (+3.57%)
GMP trend
Unofficial grey market quotes, times in IST
Where the money goes
- To the company
- ₹110 Cr
- Fresh issue
- To selling shareholders
- ₹0 Cr
- No offer for sale
- To meet long-term working capital requirements₹70 Cr60%
- Capital expenditure for purchase of heavy equipment₹25.53 Cr22%
- General Corporate Purposes₹20.52 Cr18%
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.
- Financials7.0
- Performance7.0
- Flexibility7.0
- Timing5.0
- Risk4.0
Revenue and profit have scaled sharply over FY24 to FY26, margins are around 10%, return on equity is strong at 25.6%, and the order book of ₹49,112.12 lakhs supports near-term execution visibility. The business also has a mixed model of EPC and O&M across onshore, offshore, and data centre work, which supports growth potential. Gains are capped by customer concentration, working-capital strain, debt-linked liquidity pressure, and legal and tax disputes, so upside looks positive but not aggressive.
Strengths5
- Order book increased to ₹49,112.12 lakhs as of 30 June 2026.
- Secured fresh work orders aggregating ₹55,889.66 lakhs in FY26.
- Expanded execution across onshore, offshore and data centre segments.
- Improved revenue mix into higher-value data centre and offshore work.
- Delivered FY26 EBITDA of ₹4,004.92 lakhs and PAT of ₹2,804.16 lakhs.
Concerns5
- Top five customers contributed 82.85% of revenue for the three months ended June 30, 2026, creating high dependence on a few counterparties.
- Western India and offshore work drove most revenue, so adverse regional conditions or project delays can materially affect earnings.
- Competitive bidding carries weak offshore success rates and project execution delays may lead to penalties, cost overruns, termination, or blacklisting.
- Issue price may not support post-listing market value, and no assured active trading market may develop on the EMERGE platform.
- Market price may remain volatile and circuit breakers or GSM and ASM actions can restrict trading and liquidity.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum2,68,8002 lots, 2400 shares
- Retail Maximum2,68,8002 lots, 2400 shares
- S-HNI Minimum4,03,2003 lots, 3600 shares
- S-HNI Maximum9,40,8007 lots, 8400 shares
- B-HNI Minimum10,75,2008 lots, 9600 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 2 | 2400 | 2,68,800 |
| Retail Maximum | 2 | 2400 | 2,68,800 |
| S-HNI Minimum | 3 | 3600 | 4,03,200 |
| S-HNI Maximum | 7 | 8400 | 9,40,800 |
| B-HNI Minimum | 8 | 9600 | 10,75,200 |
Timing
5.0/10The timing is balanced rather than clearly favorable. The company is tapping the market while its end markets can benefit from capital spending, yet the same sectors are vulnerable to macro volatility and budget caution. For an SME issue, investor appetite is likely to depend heavily on execution, order conversion, and working capital discipline rather than broad market sentiment alone.
- Time to market
- The business is aligned with sectors that can attract capital allocation, but the issue is exposed to cyclical demand and external risk factors. That makes the timing acceptable, though not especially strong for a premium window.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Neutral
- Time to market
- 5.0
- Listing on
- NSE SME
Key milestones
- 13 Oct 2026IPO Opens
- 15 Oct 2026IPO Closes
- 16 Oct 2026Basis of Allotment
- 19 Oct 2026Refunds Initiated
- 19 Oct 2026Credit to Demat Account
- 21 Oct 2026Listing Date
Financials
7.0/10- Revenue
- ₹278 Cr
- +154.2%
- Profit after tax
- ₹28.04 Cr
- +137.0%
- Net margin
- 10.1%
- -0.7 pts
- Assets
- ₹163 Cr
- +179.8%
- Return on equity
- 25.6%
- Debt to equity
- 0.28
- Current ratio
- 2.05x
- Revenue CAGR
- 348.8%
- ROCE
- 10.60%
- Return on net worth
- 9.68%
- NAV per share (₹)
- 40.15
- Price to book
- 2.79
Financial performance trend
Amount ₹ in croresRevenue rose sharply from ₹1,349.25 million in FY2024 to ₹27,763.29 million in FY2026, with profit after tax rising to ₹2,803.60 million. Margins improved to 10.1%. Balance sheet size expanded, working capital remains heavy, and borrowings are moderate relative to equity.
Borrowings are moderate and mainly short term. No debt repayment use of IPO proceeds is stated here, so the offer does not appear to be structured for deleveraging.
Fresh issue goes to the company. OFS goes to the selling shareholders.
None stated
Fresh issue purpose is not stated here. No offer for sale details are stated, so existing holder exits are not identifiable from the available information.
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 risks4
- Market risks4
- Operational risks4
- Regulatory risks4
Customer and geographic concentration, bidding and execution dependence, trading liquidity risk, and pending GST and civil disputes create meaningful downside and cash flow uncertainty.
How the company offsets these
Maintain strong contract execution, broaden customers and regions, resolve GST and civil matters promptly, manage working capital tightly, and reduce reliance on unsecured funding.
Financial risks4
- Top five customers contributed 82.85% of revenue for the three months ended June 30, 2026.
- Debt and borrowings total ₹3,432.49 lakhs as at June 30, 2026, including secured and unsecured obligations.
- Unsecured loans and inter-corporate deposits create repayment and liquidity pressure.
- GST demand of ₹214.62 lakhs and civil claim of ₹110.68 lakhs may require cash outflow if adverse.
Market risks4
- Issue Price may not reflect post-listing trading value.
- No assurance of active trading market on the Stock Exchange.
- Daily circuit breakers, GSM, and ASM actions may restrict trading and liquidity.
- Share price and volume may remain volatile due to quarterly performance, economic conditions, and limited market depth.
Operational risks4
- Revenue is heavily concentrated in western India and offshore projects.
- Competitive bidding and low offshore award success increase dependence on future contract wins.
- Project delays can trigger penalties, cost overruns, termination, or blacklisting.
- Dependence on a few suppliers may disrupt service delivery and cost structure.
Regulatory risks4
- GST show cause notice alleges short payment, incorrect classification, ineligible ITC, RCM issues, and other tax non-compliances.
- Commercial suit from SKS Infrastructure is active and may have adverse financial consequences.
- Regulatory surveillance measures such as GSM and ASM can affect trading.
- Future compliance or adverse findings may affect operations, liabilities, and reputation.
Performance
7.0/10Ravita Engineering Services has shown sharp revenue and profit growth, supported by a rising order book, execution across onshore, offshore and data centre projects, and strong FY26 margins for an EPC and O&M business. The model benefits from recurring maintenance work and energy-efficiency demand. Risks remain from working-capital intensity, high current liabilities, concentration in Maharashtra, and delays in statutory dues.
- Historical growth
- Revenue from operations rose from ₹1,349.25 lakhs in FY24 to ₹10,861.27 lakhs in FY25 and ₹27,763.29 lakhs in FY26, then ₹9,731.36 lakhs in the first quarter of FY27. PAT rose from ₹150.80 lakhs in FY24 to ₹1,182.70 lakhs in FY25 and ₹2,804.16 lakhs in FY26, with ₹1,013.05 lakhs in the first quarter of FY27., Very high growth, with revenue up 7.0x in FY25 and 2.6x in FY26; PAT up 7.8x in FY25 and 2.4x in FY26.
- Market comparison
- The company operates in a competitive HVAC and electro-mechanical services market where larger domestic players may have stronger capital, technical and geographic reach. Its position is differentiated by work in industrial, offshore and data centre environments, along with O&M capability and energy-efficiency related services. Its scale remains smaller than established peers, but its niche exposure and recent growth rate are stronger than what is typical for a young mid-sized contractor.
- Future potential
- Future growth appears positive, supported by energy-efficiency regulation, data centre expansion, industrial capex, and a ₹49,112.12 lakhs order book. Revenue visibility is good, though execution pace and working-capital discipline will matter.
- Operational consistency
- The company has a short but improving operating record, with growing order inflow, repeat business and multi-segment execution. Consistency is supported by recurring O&M work, yet the model remains exposed to project delays, working-capital strain and statutory payment issues.
- Experience
- The business is led by Vibhoar Agrawal as Chairman and Executive Director, and Sunildutt Narayan Goswami as Managing Director and CEO. Sunildutt Narayan Goswami has over 20 years of experience and has been with the company since 2010. Vibhoar Agrawal has experience in engineering and EPC.
- Track record
- Management has overseen a sharp scale-up in orders, revenue and profit since the change in control in February 2025. Execution across multiple project types appears strong, supported by repeat orders and growth in the workforce.
Key achievements
- 01Order book increased to ₹49,112.12 lakhs as of 30 June 2026.
- 02Secured fresh work orders aggregating ₹55,889.66 lakhs in FY26.
- 03Expanded execution across onshore, offshore and data centre segments.
- 04Improved revenue mix into higher-value data centre and offshore work.
- 05Delivered FY26 EBITDA of ₹4,004.92 lakhs and PAT of ₹2,804.16 lakhs.
Flexibility
7.0/10The company operates in segments tied to energy efficiency compliance, critical cooling, and infrastructure demand. It is positioned across industrial plants, offshore assets, data centres, commercial buildings, and allied sectors such as mining and defence. The strategy to enter healthcare, hospitality, shipyards, pharma, and advanced manufacturing supports market adaptability.
Revenue, EBITDA, and PAT improved sharply from Fiscal 2024 to Fiscal 2026, and net worth rose to ₹9,955.84 lakhs in Fiscal 2026 and ₹10,968.89 lakhs by June 30, 2026. Debt to equity improved to 0.19 in Fiscal 2026 and stood at 0.28 by June 30, 2026. Working capital needs remain high, with net working capital gap at ₹12,610.12 lakhs as of June 30, 2026, so liquidity remains a constraint.
The company has a large workforce of 399 employees as of June 30, 2026, with 368 engineering and technical staff. It executes across onshore, offshore, and data centre sites, and the order book includes EPIC, O&M, and hybrid projects. The ability to mobilise manpower quickly, handle mission-critical environments, and expand owned equipment should support operational agility.
Ravita Engineering Services shows good flexibility through a mix of EPIC projects, O&M contracts, and hybrid work across onshore, offshore, and data centre segments. The business serves multiple industries and geographies, has a growing order book, and can shift toward recurring maintenance income when project cycles are uneven. Flexibility is moderated by working-capital intensity, reliance on project execution, and repeat-client concentration.
- Product diversification
- The portfolio spans turnkey electro-mechanical EPC, HVAC services, automation and controls, O&M, and integrated facility management. It also works across onshore, offshore, and data centre projects, with exposure to industrial plants, commercial buildings, utilities, defence, mining, marine, and select niche engineering work such as sub-sea discharge pipelines.
- Future adaptability
- Future adaptability appears strong because the company already works in compliance-led and mission-critical cooling segments where recurring maintenance is valued. Growth opportunities exist in data centres, energy-efficient HVAC, smart building systems, and regulated industrial sectors. The planned expansion in equipment ownership, selective bidding, and new end-use verticals should improve responsiveness and reduce dependence on hired assets, though scaling will still depend on working capital discipline and execution quality.
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