Atharva Polyplast IPO (30 June - 2 July) Analysis

IPO Analysis  |  BSE SME Platform  |  100% Book Built Fresh Issue

Based on Red Herring Prospectus dated June 20, 2026  |  Precision Plastic Injection Moulded Components  |  Khandala, Satara, Maharashtra

STATUS: RHP FILED  |  Fresh Issue: up to 45,00,000 Equity Shares  |  No OFS  |  Anchor Bidding June 29, Issue Opens June 30, Closes July 2, 2026  |  BSE SME Platform

 Atharva Poly-Plast Limited (APL) is a Khandala, Satara, Maharashtra-based manufacturer of precision plastic components, primarily produced through the injection moulding process. Originally incorporated on January 8, 2014 as Atharva Poly-Plast Private Limited under the Companies Act, 1956, the company converted to a public limited company effective April 15, 2025.

Its manufacturing facility is at Plot No. 1, GAT No. 530/2, Ahire Lonand Road, Near Raj Company, Khandala, Satara, Maharashtra 412802. Its registered office is at W-163A, S Block MIDC Bhosari, Pune 411026, Maharashtra. Its website is https://atharvapolyplast.in. Its CIN is U25209PN2014PLC150099. The four promoters are Anujit Shivaji Darade, Shivaji Kisan Darade, Ashish Shivaji Darade, and Sadhana Shivaji Darade.

Business model: APL operates as a B2B manufacturer of customised precision plastic components for OEMs (Original Equipment Manufacturers) and Tier-1 suppliers. The company uses the injection moulding process with polypropylene (PP), ABS, HDPE, and engineering polymers to produce components to customer specifications.

The model involves full-cycle support from mould design and prototyping through to final production and QA validation. As part of OEM engagements, APL also converts raw materials and bought-out parts such as fasteners, hinges, and foam components into finished plastic assemblies based on customer requirements.

Product portfolio across four segments:

(1) Furniture (approximately 36% of revenue) where APL manufactures critical components for office chairs, including headrests, back frames, star bases, and seat carriers;

(2) Home Appliances (approximately 51% of revenue, the dominant segment) where products include refrigerator door handles, tops, axial fans for air conditioners, and other components;

(3) Automotive (approximately 9% of revenue) where products include tail lamps, seat cowls, and side covers; and

(4) Others and contract manufacturing (approximately 4% of revenue) covering end-to-end customised product development and manufacturing for client-specified requirements.

The home appliances segment is the company's largest revenue contributor.

Quality certifications: APL holds ISO 9001:2015 (Quality Management), ISO 14001:2015 (Environmental Management), and ISO 45001:2018 (Occupational Health and Safety) certifications. The facility has also undergone a SEDEX SMETA 7.0 audit, enabling compliance with the responsible business practice requirements of global OEMs.

Corporate capital structure context: on July 28, 2025, APL completed a significant equity capitalisation restructuring involving a Rights Issue of 64,90,000 shares in the ratio of 649:1 (for conversion of loans to equity), followed by a Bonus Issue of 58,49,998 shares in the ratio of 9:10 out of free reserves. All per-share metrics (EPS and NAV) disclosed in this RHP have been adjusted retrospectively to reflect this expanded share count.

Key Basics

This is a 100% Fresh Issue with no Offer for Sale component, listing on BSE SME. The RHP is dated June 20, 2026. The Issue is made under Regulation 229(2) of SEBI ICDR Regulations, as post-issue paid-up capital will exceed Rs.10 crore. Price Band, Floor Price, Cap Price and issue-related expenses remain to be determined. The Issue allocates not less than 35% to Non-Institutional Investors, not more than 50% to QIBs, and the remainder to other individual investors.

Document Type	Red Herring Prospectus (RHP) dated June 20, 2026. Price Band to be announced before Anchor Bidding Date.
Issue Type	100% Book Built Fresh Issue of up to 45,00,000 Equity Shares of face value Rs.10 each. No OFS. Company receives all net proceeds.
Face Value	Rs.10 per Equity Share
Promoters	Anujit Shivaji Darade, Shivaji Kisan Darade, Ashish Shivaji Darade, and Sadhana Shivaji Darade. Four-member founding family group.
Recent Capital Events	Rights Issue (649:1, loan-to-equity conversion) and Bonus Issue (9:10) both completed July 28, 2025. All per-share metrics in this RHP adjusted retrospectively.
Eligibility	Regulation 229(2) of SEBI ICDR Regulations 2018 (post-issue paid-up capital exceeds Rs.10 crore).
Listing Exchange	SME Platform of BSE Limited (BSE SME). In-principle approval received January 23, 2026. Designated Stock Exchange: BSE.
BRLM	Horizon Management Private Limited. Contact: Narendra Bajaj. Email: smeipo@horizon.net.com
Registrar	MUFG Intime India Private Limited (formerly Link Intime India Private Limited). Contact: Shanti Gopalkrishnan. Email: atharvapolyplast.smeipo@in.mpms.mufg.com
Anchor Bidding	Monday, June 29, 2026.
Issue Opens	Tuesday, June 30, 2026.
Issue Closes	Friday, July 2, 2026.
Listed Industry Peer	Master Components Limited (standalone, FY2025), the single named listed peer. Revenue Rs.4,240.31 lakhs, EPS Rs.16.23, P/E 39.16x, RoNW 22.01%, PAT margin 15.31%, NAV Rs.73.73.
Industry P/E Range	Highest: 39.16x, Lowest: 39.16x, Average: 39.16x (based on single peer only).

 This is a 100% Fresh Issue. The Net Proceeds are directed across four objects, with working capital as the largest single allocation, followed by debt repayment and capex. The total of quantified objects (before General Corporate Purposes) is Rs.1,900 lakhs from Net Proceeds.

Object	Amount (Rs. Lakhs)	Details
Funding Working Capital Requirements	1,300.00	The dominant use of proceeds, reflecting the working-capital-intensive nature of a precision plastic injection moulding business where large OEM clients typically have extended payment cycles. The total identified working capital requirement is Rs.1,563.96 lakhs, of which Rs.263.96 lakhs is to be funded from internal accruals.
Repayment or Prepayment of Borrowings	300.00	Partial repayment of secured borrowings availed from financial institutions. Total estimated repayment requirement is Rs.350 lakhs; Rs.50 lakhs to be funded from internal accruals. This will reduce finance costs and improve the debt-to-equity ratio.
Capital Expenditure: Purchase of Machinery	300.00	Acquisition of injection moulding machines and related production equipment to expand manufacturing capacity and testing capabilities. Total estimated capex is Rs.310 lakhs; Rs.10 lakhs from internal accruals. Quotations received but purchase orders not yet placed.
General Corporate Purposes	[TBD]	Capped at 15% of Gross Proceeds or Rs.10 crore, whichever is lower, per SEBI ICDR Regulations.
TOTAL FRESH ISSUE (up to 45,00,000 shares)	[TBD]	100% Fresh Issue. No OFS. None of the Objects have been appraised by any bank or financial institution. All quantified Objects proposed to be deployed in FY2026-27.

The working capital allocation dominates at approximately 68% of total identified proceeds, consistent with APL's high-revenue, thin-margin B2B plastics manufacturing model where trade receivables have been historically significant. The debt repayment allocation addresses the company's outstanding secured borrowings, potentially reducing future finance costs and creating capacity for growth-oriented borrowing.

The capex allocation for injection moulding machines, while modest in absolute terms, will expand production capacity in what is already a near-fully-utilised facility, supporting the company's ability to take on additional OEM contracts.

Financial Performance

Note: All figures in Rs. lakhs unless stated. All per-share metrics adjusted for July 28, 2025 bonus issue (9:10 ratio). Financial periods: Ten months ended January 31, 2026 (10M FY2026, stub); Fiscal 2025 (year ended March 31, 2025); Fiscal 2024 (year ended March 31, 2024); Fiscal 2023 (year ended March 31, 2023).

Restated Standalone Financial Statements under Indian GAAP, certified by M/s. PRASS and Associates LLP, Chartered Accountants. This is a company that has delivered genuinely impressive profitability recovery and growth over the reported period, with some important context required around the capital structure events.

Revenue, EBITDA, and Profitability

Metric	10M FY26 (Rs. L)	FY2025 (Rs. L)	FY2024 (Rs. L)	FY2023 (Rs. L)
Revenue from Operations	4,242.16	4,753.56	4,148.72	4,530.16
Revenue Growth % YoY	N/A (10M stub)	+14.58%	-8.42%	N/A
Other Income	147.97	152.67	160.67	152.24
Total Income	4,390.13	4,906.23	4,309.39	4,682.40
Cost of Materials Consumed	3,004.52	3,332.65	3,160.30	3,430.86
Changes in Inventories	(31.58)	(58.57)	(37.67)	148.93
Employee Benefits Expense	142.27	145.09	106.42	94.61
Finance Costs	116.58	104.35	158.56	214.24
Depreciation and Amortisation	132.49	161.42	187.50	192.12
Other Expenses	431.97	565.95	472.73	521.03
Total Expenses	3,796.25	4,250.89	4,047.84	4,601.79
Profit Before Tax	593.88	655.34	261.55	80.61
Tax Expenses (Net)	121.32	126.79	61.45	9.23
Profit After Tax	472.56	528.54	200.11	71.38
PAT Growth % YoY	N/A (stub)	+164.13%	+180.37%	N/A
EBITDA	836.27	918.61	605.11	476.94
EBITDA Margin % (of Total Income)	19.71%	19.32%	14.59%	10.53%
PAT Margin % (of Revenue from Ops.)	11.14%	11.12%	4.82%	1.58%
Return on Equity (RoE) %	30.74%	50.99%	29.77%	13.23%
Return on Capital Employed (ROCE) %	24.92%	35.31%	18.94%	12.58%
Return on Net Worth (RoNW) %	N/A (stub)	40.63%	25.91%	12.48%
Net Debt / EBITDA (times)	0.92x	0.53x	2.14x	3.18x
Basic and Diluted EPS (Rs., bonus-adjusted)	3.83	4.28	1.62	0.58
Weighted Average EPS (Rs.)	2.78 (3-yr weighted)	N/A	N/A	N/A
NAV per Share (Rs., bonus-adjusted)	N/A (stub)	10.53	N/A	N/A

The financial transformation between FY2023 and FY2025 is the central narrative of this RHP. PAT grew from Rs.71.38 lakhs (FY2023) to Rs.528.54 lakhs (FY2025), a 640% increase in two years, driven by two simultaneous improvements: revenue growth of 4.9% and a dramatic expansion in operating margins. EBITDA margins nearly doubled from 10.53% (FY2023) to 19.32% (FY2025).

Finance costs declined sharply from Rs.214.24 lakhs (FY2023) to Rs.104.35 lakhs (FY2025), a 51% reduction reflecting deliberate deleveraging, and depreciation fell from Rs.192.12 lakhs to Rs.161.42 lakhs as older equipment reached the end of its depreciable life. The combined effect of margin expansion and reduced fixed charges produced the exceptional PAT growth. The 10M FY2026 stub period continues this trajectory with PAT of Rs.472.56 lakhs on 10 months of revenue, suggesting a full-year annualised run rate of approximately Rs.567 lakhs.

Revenue declined in FY2024 (-8.42%) relative to FY2023, reflecting lower demand from certain OEM customers. The recovery in FY2025 (+14.58%) has therefore brought revenue back above the FY2023 base. The 10M FY2026 revenue of Rs.4,242.16 lakhs, annualised to approximately Rs.5,090 lakhs, implies continued year-on-year growth if the last two months of FY2026 perform in line with the stub.

Balance Sheet and Cash Flow

Item	Jan 2026 (Rs. L)	FY2025 (Rs. L)	FY2024 (Rs. L)	FY2023 (Rs. L)
Equity Share Capital	1,235.00	650.00	650.00	650.00
Reserves and Surplus	538.43	650.86	122.28	(77.82)
Total Shareholders Funds / Net Worth	1,773.43	1,300.86	772.28	572.18
Long-Term Borrowings	360.88	219.20	335.52	545.86
Short-Term Borrowings	643.03	571.90	1,023.42	1,070.62
Trade Payables	1,161.48	652.22	724.35	745.88
Total Assets	4,253.61	3,087.75	3,265.70	3,292.01
Property, Plant and Equipment (Net)	1,737.78	1,549.20	1,684.51	1,814.95
Inventories	662.99	603.53	524.29	457.16
Trade Receivables	1,242.49	430.09	705.36	763.21
Cash and Cash Equivalents	231.43	302.90	85.96	109.70
Net Cash from/(used in) Operating Activities	43.28	697.23	296.55	777.26

The balance sheet shows two critical observations. First, equity share capital jumped from Rs.650 lakhs (FY2025) to Rs.1,235 lakhs (January 2026), reflecting the July 2025 Rights Issue of 64,90,000 shares (primarily for conversion of loans to equity) and the Bonus Issue of 58,49,998 shares.

This restructuring materially altered the company's per-share metrics: the EPS values disclosed are therefore adjusted for a post-restructuring share count that is approximately 19 times larger than the pre-restructuring base (total current paid-up shares: 1,23,50,000 equity shares). The NAV per share of Rs.10.53 (as of March 31, 2025, post-adjustment) reflects this expanded equity base.

Second, Trade Receivables surged from Rs.430.09 lakhs (FY2025) to Rs.1,242.49 lakhs (January 2026), a 189% increase in just 10 months, against revenue growth of approximately 20% over a comparable period. This dramatic receivables build-up is the primary driver of the near-zero operating cash flow in the 10M FY2026 stub (Rs.43.28 lakhs positive, versus Rs.697.23 lakhs in FY2025).

The working capital allocation of Rs.1,300 lakhs from IPO proceeds directly addresses this receivables-driven cash constraint, but the pace of receivables growth warrants careful attention from prospective investors.

How Does It Compare to Peers?

The RHP names only one listed industry peer: Master Components Limited, described as comparable on the basis of operating in the plastic moulding and components segment, though the company explicitly acknowledges the peer may not be exactly comparable in size or business portfolio.

Metric (FY2025)	Atharva Poly-Plast	Master Components Ltd	Notes
Revenue from Operations (Rs. L)	4,753.56	4,240.31	Broadly comparable scale
EPS Basic (Rs., bonus-adjusted)	4.28	16.23	Master significantly higher EPS
P/E Ratio (Sep 25, 2025 CMP)	(TBD)	39.16x	Industry avg: 39.16x (single peer)
RoNW %	40.63%	22.01%	Atharva leads significantly
PAT Margin %	11.12%	15.31%	Master higher PAT margin
NAV per Share (Rs.)	10.53	73.73	Master higher absolute NAV
Face Value (Rs.)	10	10

APL compares favourably to Master Components on RoNW (40.63% vs 22.01%), suggesting superior capital efficiency, though this metric must be read in the context of APL's very low pre-restructuring equity base inflating the return ratio. Master Components carries a meaningfully higher PAT margin (15.31% vs 11.12%) and a much higher NAV per share (Rs.73.73 vs Rs.10.53), reflecting either a different capital structure or longer accumulated earnings history.

The single peer trading at 39.16x P/E provides the only available public market benchmark. If the Issue Price implies a meaningful discount to 39.16x on FY2025 EPS of Rs.4.28, the implied pricing would be under Rs.168 per share (based on 39.16x peer multiple applied to APL EPS). Investors should note that the Price Band has not been disclosed in this RHP, and the final valuation will only be apparent once the Price Band is announced before Anchor Bidding.

Key Risks

l  Trade receivables surged 189% in 10 months to Rs.1,242.49 lakhs, collapsing operating cash flow to near-zero: receivables grew from Rs.430.09 lakhs (FY2025) to Rs.1,242.49 lakhs (January 2026), absorbing more than two-thirds of the company's Rs.1,173.16 lakh revenue increase and contributing to a collapse in operating cash generation from Rs.697.23 lakhs (FY2025) to Rs.43.28 lakhs (10M FY2026).

This is the single most important financial signal in the stub period, suggesting either extended credit terms to OEM clients, slower collections, or aggressive new order fulfilment with lagging invoicing cycles. The Rs.1,300 lakh working capital allocation from IPO proceeds directly targets this constraint, but investors should assess whether the receivables build-up reflects a structural change in the payment behaviour of OEM clients.

l  Extreme customer concentration: top 10 clients contribute 97 to 98 percent of revenue in every period, with top 5 at 75 to 89 percent: the revenue base is extraordinarily concentrated. Top 10 customers generated 97.43% (10M FY2026), 97.9% (FY2025), 97.8% (FY2024), and 97.78% (FY2023) of revenue in all four periods. Top 5 customers contributed 75.39% to 89.11%.

The top single customer alone contributed between 24.42% and 51.76% of revenue across the reported periods. While the absolute percentage from the top 1 customer has declined from 51.76% to 24.42%, the concentration in the top 5 and top 10 remains structurally very high, and there are no long-term contracts guaranteeing continued order volumes from these clients.

l  Capital structure complexity from July 2025 restructuring requires careful per-share metric interpretation: the simultaneous Rights Issue (649:1 for loan-to-equity conversion) and Bonus Issue (9:10) in July 2025 expanded the outstanding equity share count from approximately 64,90,000 shares to 1,23,39,998 shares (before the IPO), nearly doubling the base.

The EPS and NAV per share figures disclosed in this RHP are retrospectively adjusted for this expanded base. Investors who extrapolate historical EPS trends should understand that the dramatic EPS improvement from Rs.0.58 (FY2023) to Rs.4.28 (FY2025) reflects both genuine PAT growth and the restructured share count. The RHP does not provide pro-forma EPS on the pre-restructuring share count for direct comparison.

l  Revenue declined in FY2024 (-8.42%) before recovering in FY2025, and the revenue base (Rs.4,148 to Rs.4,753 lakhs) has remained in a narrow range for three years: despite the dramatic profitability improvement, APL's revenue from operations has not grown materially in absolute terms, ranging between Rs.4,149 and Rs.4,754 lakhs across FY2023 to FY2025.

The improvement in PAT has been almost entirely driven by margin expansion (finance cost reduction, operating leverage) rather than top-line scale. Sustainable earnings growth will require either new OEM client wins, expanded volumes from existing clients, or entry into new segments, all of which carry execution uncertainty.

l  Single manufacturing facility at Khandala, Satara, Maharashtra, with all production concentrated at one location: any disruption at the Khandala facility, whether from equipment breakdown, natural calamity, regulatory action, labour dispute, or utility failure, would impair the entire company's production capability simultaneously.

As a single-site manufacturer serving OEM clients with specific quality and delivery standards, unplanned downtime could trigger client penalties, order cancellations, or reputational damage that persists beyond the physical disruption period.

l  Working capital requirement of Rs.1,563.96 lakhs against FY2025 PAT of Rs.528.54 lakhs indicates persistent cash absorption relative to earnings: the gross working capital requirement is approximately three times the last full-year PAT, indicating that the business's cash generation is consistently insufficient to self-fund its working capital needs at the current scale of operations. This structural gap is being bridged through IPO proceeds, but will recur as revenues grow unless receivable collection cycles improve or credit terms with OEM clients are renegotiated.

l  Home appliances segment (approximately 51% of revenue) is subject to seasonal demand volatility: the company itself discloses that the home appliances business is subject to seasonal concentration of revenues, with demand patterns aligned with consumer purchase cycles for refrigerators and air conditioners. This creates intra-year revenue lumpiness and inventory/working capital volatility.

l  OEM outsourcing dependency risk: APL's entire business model depends on OEMs and Tier-1 suppliers continuing to outsource plastic component manufacturing rather than in-sourcing. Any reversal of the outsourcing trend, particularly at large OEM clients, could directly reduce APL's order book.

l  Raw material price volatility in polypropylene (PP), ABS, and HDPE: all of APL's primary materials are petrochemical derivatives, meaning crude oil price movements, supply-demand dynamics at polymer producers, and currency fluctuations (for imported polymers) can cause significant input cost variability. APL's ability to pass through material cost increases to OEM clients on short notice may be limited under existing commercial arrangements.

l  Single named peer at 39.16x P/E provides a limited and potentially misleading valuation anchor: with only one comparable disclosed, and that peer having substantially different NAV and EPS characteristics than APL, the P/E benchmark does not provide robust or diversified valuation guidance. The Price Band, once disclosed, will be the critical data point for investors to assess valuation independently.

Positives to Note

l  Dramatic and sustained profitability recovery over three years: PAT grew from Rs.71.38 lakhs (FY2023) to Rs.528.54 lakhs (FY2025), a 640% improvement in two years, driven by genuine operating leverage and deliberate financial restructuring. This is among the largest absolute profitability improvements of any SME issuer reviewed in this series, and the trajectory has continued into the 10M FY2026 stub period.

l  EBITDA margin nearly doubled from 10.53% to 19.71% over four reporting periods: the margin expansion from 10.53% (FY2023) to 14.59% (FY2024) to 19.32% (FY2025) to 19.71% (10M FY2026) reflects genuine structural improvement in profitability, driven by declining finance costs, operating leverage on fixed costs, and pricing improvement as the company has moved toward more complex precision components.

l  Finance costs more than halved from Rs.214.24 lakhs (FY2023) to Rs.104.35 lakhs (FY2025), with further reduction anticipated post-IPO debt repayment: the company has been actively deleveraging, with Net Debt/EBITDA improving dramatically from 3.18x (FY2023) to 0.53x (FY2025). The planned Rs.300 lakh debt repayment from IPO proceeds will further reduce the finance cost burden, contributing to higher future PAT.

l  RoNW of 40.63% (FY2025) significantly exceeds the single named peer Master Components (22.01%): despite carrying a lower absolute PAT margin than Master Components, APL generates superior returns on shareholder equity, indicating more efficient capital utilisation per rupee of equity employed.

l  ISO triple certification and SEDEX SMETA 7.0 audit compliance demonstrates commitment to quality and responsible manufacturing standards that are prerequisites for supply relationships with global OEMs: these certifications are not trivially obtained and represent genuine institutional credibility that reduces the risk of losing existing OEM contracts due to quality or compliance deficiencies.

l  Customer concentration is actively improving: the top single customer's revenue share declined from 51.76% (FY2023) to 36.76% (FY2025) to 24.42% (10M FY2026), a clear structural diversification trend over the reporting period. While top-5 and top-10 concentration remains high, the directional improvement in top-1 concentration indicates the company is successfully adding new OEM relationships.

l  Positive operating cash flow in FY2025 (Rs.697.23 lakhs) and FY2023 (Rs.777.26 lakhs) confirms underlying earnings quality: despite the near-zero cash generation in the 10M FY2026 stub, the company demonstrated strong cash conversion in the two full-year periods, confirming that the business model does generate real cash flows when receivable cycles normalise.

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