Bench Mark Infotech Services IPO (25 Sep-29 Sep) Analysis

IPO Analysis  |  NSE Emerge  |  100% Book Built Offer (Fresh Issue and Offer for Sale)  | Regulation 229(2) and 253(1), 253(2)

Based on Red Herring Prospectus dated September 18, 2026  |  Integrated IT and Digital Infrastructure Solutions  |  Kolkata, West Bengal

STATUS: RHP FILED  |  Fresh Issue and Offer for Sale  |  Regulation 229(2) and 253  |  NSE Emerge  | Price Band: [TBD]  |  Market Maker Reservation Included  |  Bidding: September 25 to 29, 2026  |  All Figures in Rs. Lakhs

Bench Mark Infotech Services Limited was incorporated as Bench Mark Infotech Services Private Limited on January 9, 2007, and converted to a public company in June 2026. The registered and corporate office is at P 118, Swami Swarupananda Sarani, 4th Floor, Kolkata, West Bengal 700054, with a branch office in Patna.

The website is https://www.benchmarkinfo.com/. The promoters are Vineet Kumar Gupta and Juli Gupta. Sucheta Todi is Company Secretary and Compliance Officer. The statutory auditor is Goyal Goyal and Co., Chartered Accountants.

The company is an integrated IT and digital infrastructure solutions provider with over 19 years of experience, serving government departments, public sector undertakings and private clients, mainly across eastern India.

Services span networking (LAN and WAN), wireless communication, structured cabling, smart classrooms, access control and surveillance, and it has recently expanded into data centre and cloud services, AI lab infrastructure, and cybersecurity offerings including next generation firewalls and managed security services.

The company is empanelled with Bharat Sanchar Nigam Limited (BSNL) as a National Level System Integrator and with RailTel Corporation as an ICT Business Partner, and holds ISO 9001:2015 and ISO/IEC 27001:2022 certifications. Its business model is order driven, executing projects won through competitive government and private tenders. The financial year ends March 31.

Key Basics

This is a book built issue on NSE Emerge, made under Regulation 229(2) and 253 of the SEBI ICDR Regulations. The RHP is dated September 18, 2026. The Price Band and lot size remain undetermined at this stage.

Field	Value
Document Type	Red Herring Prospectus dated September 18, 2026. Price Band and lot size are [TBD].
Platform	NSE Emerge. Designated Stock Exchange: NSE.
Issue Structure	Fresh Issue of up to 34,00,000 Equity Shares plus an Offer for Sale of up to 4,58,000 Equity Shares, entirely by promoter Vineet Kumar Gupta. Total Offer up to 38,58,000 shares, 27.03% of post Offer paid up capital.
Face Value	Rs.10 per Equity Share
Selling Shareholder WACA	Rs.0.08 per Equity Share for Vineet Kumar Gupta, as certified by the statutory auditor
Market Maker Reservation	1,93,200 Equity Shares, leaving a Net Offer of 36,64,800 shares, 25.68% of post Offer paid up capital
BRLM	GYR Capital Advisors Private Limited
Registrar	KFin Technologies Limited
Bid Dates	Anchor September 24, 2026. Bidding opens September 25, 2026 and closes September 29, 2026.

What distinguishes this issue is the substantial related party network: the promoters have interests in at least eight named group entities, several of which transact with the company on sales, purchases and loans in the ordinary course of business, disclosed in full in the related party transactions section.

How Will the IPO Money Be Used?

This is a Fresh Issue plus an Offer for Sale. The company receives no proceeds from the Offer for Sale; those proceeds go to promoter Vineet Kumar Gupta.

Object	Amount (Rs. Lakhs)	Details
Working capital	3,000.00	Against a projected FY2028 working capital requirement of Rs.5,158.57 Lakhs, up from Rs.1,308.37 Lakhs in FY2026, driven by trade receivables projected to grow from Rs.5,497.96 Lakhs to Rs.9,452.00 Lakhs as the company takes on more government and PSU project billing.
General corporate purposes	[TBD]	Capped at 15% of Gross Proceeds or Rs.1,000.00 Lakhs, whichever is lower.
Total Net Proceeds	[TBD]	To be finalised once the Offer Price is set.

This is the simplest use of proceeds in this batch: a single quantified object, working capital, with no capital expenditure or debt repayment line. The entire working capital allocation reflects the company's structurally long trade receivable cycle on government and PSU project billing rather than any new capacity or expansion plan.

Financial Performance

Revenue, EBITDA, and Profitability

Rs. Lakhs	FY2026	FY2025	FY2024
Revenue from Operations	6,052.76	5,003.85	3,409.51
EBITDA	1,405.83	828.01	227.89
EBITDA Margin	21.97%	16.30%	6.56%
Profit After Tax	1,021.80	583.04	148.02
PAT Margin	16.88%	11.65%	4.34%
EPS, Basic and Diluted (Rs.)	9.40	5.36	1.36
Return on Equity	47.65%	43.45%	15.16%
Return on Capital Employed	47.74%	48.08%	18.51%

Revenue grew 20.96% in FY2026 to Rs.6,052.76 Lakhs, and PAT grew 75.25% to Rs.1,021.80 Lakhs. EBITDA margin and PAT margin have both risen sharply each year, from 6.56% and 4.34% in FY2024 to 21.97% and 16.88% in FY2026.

Yet the number of successful bids, one of the company's own disclosed KPIs, fell every year, from 23 in FY2024 to 19 in FY2025 to 14 in FY2026, even as revenue and margins rose, meaning growth has come from fewer, larger and more profitable contracts rather than a wider volume of work.

Balance Sheet and Cash Flow

Rs. Lakhs	FY2026	FY2025	FY2024
Total Assets	7,405.48	6,039.15	3,932.96
Total Equity	2,655.11	1,633.31	1,050.27
Debt to Equity	0.10x	0.05x	0.13x
Trade Receivables	5,497.96	3,795.82	2,559.47
Trade Receivable Days	280	232	239
Net Cash from Operating Activities	(676.52)	653.91	486.62
NAV per Share (Rs.)	24.42	15.02	9.66

Operating cash flow turned sharply negative in FY2026, Rs.676.52 Lakhs used, reversing positive generation of Rs.653.91 Lakhs and Rs.486.62 Lakhs in FY2025 and FY2024 respectively, entirely because trade receivables grew by Rs.1,743.52 Lakhs in a single year as receivable days stretched from 232 to 280.

Of the Rs.5,497.96 Lakhs in trade receivables outstanding as of March 31, 2026, Rs.1,017.21 Lakhs, 18.50% of the total and 38.31% of net worth, has been outstanding for more than a year, with a provision of only Rs.41.38 Lakhs against it. Debt to Equity remains very low throughout, never exceeding 0.13x.

How Does It Compare to Peers?

The RHP names three listed peers: Dynacons Systems and Solutions, Xtranet Technologies and Esconet Technologies, based on closing prices on NSE and BSE as of September 15, 2026. Bench Mark Infotech's own P/E cannot be shown until the Price Band is set.

Company	EPS (Rs.)	P/E (x)	NAV (Rs.)	RoNW (%)
Bench Mark Infotech Services	9.40	[TBD]	24.42	38.48%
Dynacons Systems and Solutions	66.64	26.55	247.54	26.90%
Xtranet Technologies Limited	10.40	50.87	34.66	30.01%
Esconet Technologies Limited	4.66	15.66	60.77	7.68%

Bench Mark Infotech's RoNW of 38.48% is the highest of the group, ahead of Xtranet's 30.01% and Dynacons' 26.90%, and well ahead of Esconet's 7.68%. Dynacons, the largest peer by far at Rs.1,43,000.86 Lakhs total income, carries the highest NAV per share by a wide margin, while Xtranet, the closest peer by NAV per share, trades at the highest P/E of the group despite a lower RoNW than Bench Mark Infotech.

Key Risks

• Operating cash flow turned sharply negative in FY2026, Rs.676.52 Lakhs used, reversing two years of positive generation, entirely because trade receivables grew Rs.1,743.52 Lakhs in a single year on a stretching collection cycle now averaging 280 days.

• Top 10 customers were 94.19% of FY2026 revenue, up from 89.08% in FY2025, and the single largest customer was 25.21% of FY2026 revenue after being 60.93% the year before, showing dependence has shifted between a small number of large accounts rather than genuinely broadened.

• Rs.1,017.21 Lakhs of trade receivables, 18.50% of the total and 38.31% of net worth, has been outstanding for more than a year as of March 31, 2026, against a provision of only Rs.41.38 Lakhs.

• Government and PSU customers were 73.10% of FY2026 revenue and as high as 95.01% in FY2025; contracts are tender based and typically awarded to the lowest bidder, and the company's own bid to win ratio fell from 41.07% in FY2024 to 30.43% in FY2026.

• Revenue is concentrated in three states, Bihar, Odisha and West Bengal, together 80.04% of FY2026 revenue, with Bihar alone at 43.30%.

• The company transacts extensively with at least eight group entities in which the promoters or their relatives hold interests, covering sales, purchases, loans and expense reimbursements; while individually modest, these related party dealings add a layer of scrutiny an investor should apply to reported margins.

• The number of successful bids fell every year shown, from 23 in FY2024 to 14 in FY2026, even as revenue and profit grew, meaning the business increasingly depends on a smaller number of larger contracts.

• Top 10 suppliers were 59.60% of FY2026 purchases and direct expenses, and the company has no long term contracts with any OEM vendor, relying instead on purchase orders.

• The company only converted from a private to a public company in June 2026, just three months before this RHP, giving investors a limited track record of it operating under public company governance standards.

• The projected working capital requirement for FY2028, Rs.5,158.57 Lakhs, is nearly four times the FY2026 level of Rs.1,308.37 Lakhs, a rapid scale up that assumes continued growth in government project billing.

• The company has only recently entered several of its newer service lines, data centre and cloud services, AI lab infrastructure and expanded cybersecurity offerings, so these have limited operating history within the company relative to its core networking business.

Positives to Note

• PAT grew from Rs.148.02 Lakhs in FY2024 to Rs.1,021.80 Lakhs in FY2026, and EBITDA margin more than tripled from 6.56% to 21.97% over the same period.

• Debt to Equity has stayed below 0.13x in every year shown, reflecting a balance sheet funded overwhelmingly by equity and internal accruals rather than borrowed money.

• The company holds empanelment as a National Level System Integrator with BSNL and as an ICT Business Partner with RailTel, both of which open procurement access beyond individual individual tender basis bidding.

• RoNW of 38.48% in FY2026 is the highest among all three named listed peers.

• The company reports no material loss of any key customer over the three years shown, and no material instances of supply disruption from key vendors.

• The company has diversified its service offerings during the current year into data centre and cloud services, AI lab infrastructure and expanded cybersecurity solutions, broadening its addressable market beyond traditional networking and structured cabling.

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