ENS Enterprises IPO (14-18 August) Analysis

IPO Analysis | BSE SME | 100% Book Building Issue (Pure Fresh Issue) | Regulation 229(2)

Based on Draft Red Herring Prospectus dated November 1, 2025 | Custom Software Product Engineering and IT Services | Noida, Uttar Pradesh

STATUS: DRHP FILED | PRE-SEBI OBSERVATION STAGE | ALL BID DATES AND PRICE BAND TO BE DETERMINED

Pure Fresh Issue of up to 36,02,400 Equity Shares | No Offer for Sale | BSE SME Platform

RoNW Well Above 3 Listed IT Services Peers | PAT Grew Over 7x from FY23 to FY25 | One RoC Filing Delayed 3,447 Days; Another Not Yet Filed as of This DRHP

 ENS Enterprises Limited was incorporated as ENS Enterprises Private Limited on January 7, 2016, and converted to a public limited company on May 8, 2025. Its CIN is U74120UP2016PLC075577, with its registered office in Sector 63, Noida, Uttar Pradesh. The Promoters are Manish Kumar Srivastava, Avinash Kumar Singh and Anupam Kumar Srivastava.

The Company provides end-to-end custom software product engineering and IT services, spanning Product Discovery through Minimum Viable Product (MVP) development and scaling. Its offerings incorporate AI, machine learning, cloud-based solutions and DevOps capabilities, aimed at helping clients build and scale software products and digital platforms.

The Company positions itself in a highly dynamic industry undergoing significant transformation driven by cloud computing, generative AI and automation, and states its success depends on continuously enhancing its technical capabilities to keep pace with evolving customer and industry demands.

Revenue from operations grew from Rs.735.54 Lakhs in Fiscal 2023 to Rs.2,833.33 Lakhs in Fiscal 2025, and reached Rs.2,834.24 Lakhs in the 6 month stub period ended September 30, 2025, already matching the whole of Fiscal 2025 in half the time.

PAT grew from Rs.55.57 Lakhs in Fiscal 2023 to Rs.370.40 Lakhs in Fiscal 2025, more than 6.6 times, with a further Rs.402.30 Lakhs recorded in the 6 month stub period. Investors should note the most recent period presented is a 6 month stub, not a full 12 month fiscal year, which affects direct year over year comparability, particularly for cash flow, discussed in Section 4.

Key Basics

Particulars	Details
Document Type	Draft Red Herring Prospectus (DRHP) dated November 1, 2025. Pre-SEBI observation stage; all [TBD] items including Price Band and Bid dates remain undetermined.
Issue Structure	100% Book Building Issue, entirely a Fresh Issue of up to 36,02,400 Equity Shares (no Offer for Sale). Face value Rs.10 per share.
Face Value	Rs.10 per Equity Share.
Promoters	Manish Kumar Srivastava, Avinash Kumar Singh and Anupam Kumar Srivastava.
Selling Shareholders	Not applicable. This Issue is entirely a Fresh Issue; there is no Offer for Sale.
Eligibility Route	Regulation 229(2) of Chapter IX of the SEBI ICDR Regulations, 2018.
Listing Exchange	SME Platform of BSE Limited (BSE SME); in-principle approval not yet obtained as of this DRHP.
BRLM	Corporate Makers Capital Limited.
Registrar	Abhipra Capital Limited.
Bid or Issue Dates	Not yet determined; this is a DRHP at pre-SEBI observation stage.
Listed Peers, One Line	3 listed IT services peers (ASM Technologies, Infobeans Technologies, Silver Touch Technologies), all substantially larger, with RoNW below the Company's own disclosed figure.

This is a small, fast-growing SME IT services company at the earliest disclosure stage in this report series. The most notable structural feature is its documented history of Registrar of Companies filing delays, including one form delayed by 3,447 days and another form not yet filed as of this DRHP, discussed in Section 6.

How Will the IPO Money Be Used?

Object	Estimated Amount (Rs. Lakhs)	Substantiation
Investment related to enhancement, maintenance and upgrading of existing products through manpower hiring	1,702.00	The largest single Object; based on internal management estimates and not independently appraised by any bank or financial institution.
Investment in upgradation of IT Infrastructure	675.21	A specific rupee figure disclosed; the Company's own Risk Factors disclose that orders for the underlying capital expenditure have not yet been placed as of this DRHP.
Repayment of Borrowings	120.00	A specific, modest rupee figure disclosed.
General corporate purposes	[TBD]	Capped at 15% of Gross Proceeds or Rs.10 Crore, whichever is lower. No further breakdown provided, as is standard.

The largest Object by a wide margin is manpower hiring to support enhancement and maintenance of the Company's existing software products, consistent with a people-intensive IT services business rather than a capital expenditure heavy one.

The Company's own Risk Factors disclose that it has not made any alternate arrangements for meeting its capital requirements for the Objects of this Issue, and that orders for the IT Infrastructure upgrade have not yet been placed, leaving both funding certainty and execution timing somewhat open.

As this is still a DRHP, the Gross Proceeds, Net Proceeds and General Corporate Purposes figures all remain undetermined.

Financial Performance

P&L and Key Metrics (Rs. Lakhs unless stated)

Particulars	H1 FY26 (Sep 2025)	FY 2025	FY 2024
Revenue from operations	2,834.24 (H1, not annualized)	2,833.33	1,010.92
EBITDA	578.52 (H1)	548.25	138.02
EBITDA margin (%)	20.41 (H1)	19.35	13.65
Profit after tax	402.30 (H1, not annualized)	370.40	90.32
PAT margin (%)	14.19 (H1)	13.07	8.93
Return on net worth / RoNW (%)	33.38 (not annualized)	62.01	62.17
Return on capital employed (%)	45.77 (not annualized)	84.51	84.15
Net worth	1,406.49	1,004.19	190.43
NAV per equity share (Rs.)	14.08	37.08	634.77 (pre share sub-division)

Cash Flow Highlights (Rs. Lakhs)

Particulars	H1 FY26 (Sep 2025)	FY 2025	FY 2024
Net cash from / (used in) operating activities	(169.47) (H1)	249.98	10.95
Net cash from / (used in) investing activities	2.41 (H1)	(364.63)	(22.76)
Net cash from financing activities	317.87 (H1)	239.34	0.00

This is one of the fastest-growing companies in this report series in percentage terms, though the pace should be read against a small starting base: revenue grew from Rs.735.54 Lakhs in FY23 to Rs.1,010.92 Lakhs in FY24 (37.4%) to Rs.2,833.33 Lakhs in FY25 (180.2%), and PAT grew more than 6.6 times from FY23 to FY25.

RoNW has been extremely high throughout (62.01% to 76.84% across the 3 full fiscal years shown in the RHP's own accounting ratio table), though this partly reflects a very small equity base before the Company's recent bonus or split-driven capital restructuring, evident in the sharp NAV per share change between FY24 (Rs.634.77) and FY25 (Rs.37.08).

The specific caveat investors should note is the 6 month stub period through September 30, 2025, which showed negative operating cash flow (Rs.(169.47) Lakhs) despite record reported profit (Rs.402.30 Lakhs) for the period, a reversal from positive operating cash flow in both full fiscal years shown (Rs.10.95 Lakhs in FY24, Rs.249.98 Lakhs in FY25).

The Company's own disclosure does not isolate a single cause in the excerpt reviewed here, and this divergence between profit and cash generation in the most recent period is worth monitoring, consistent with a business scaling revenue very rapidly and potentially outrunning its working capital and collections cycle.

How Does It Compare to Peers?

Company	Revenue (Rs. Lakhs)	Basic EPS (Rs.)	P/E (times)	RoNW (%)	NAV/Share (Rs.)
ENS Enterprises Limited	2,834.24	4.03	N/A (Price TBD)	33.38	14.08
ASM Technologies Limited	23,977.30	22.33	155.69	15.08	156.38
Infobeans Technologies Limited	27,941.00	19.25	32.10	16.09	128.70
Silver Touch Technologies Limited	26,663.16	17.89	0.76	17.35	103.15

The DRHP discloses 3 listed IT services peers, all dramatically larger than ENS Enterprises by revenue (roughly 8.5 to 9.9 times). The Company's own RoNW figure shown in this comparison (33.38%, the H1 FY26 stub period, not annualized) is nearly double the highest of the 3 peers (17.35% for Silver Touch Technologies), but this is not a like-for-like comparison: the peer figures are full fiscal year results while the Company's own figure is a 6 month, non-annualized number, and the Company's own full-year RoNW figures (62.01% for FY25, 62.17% for FY24) are dramatically higher still.

Investors should treat this comparison cautiously given both the scale gap and the period mismatch, and should focus on the Company's own multi-year trend as a more reliable reference point.

Key Risks

l The Company has an extensive history of Registrar of Companies filing delays spanning nearly a decade, including one ADT-1 form delayed by 3,447 days (filed July 2025 for a Fiscal 2016-17 obligation) and a second ADT-1 delayed by 102 days, alongside multiple further delayed AOC-4, MGT-7, MGT-7A and ADT-3 filings from Fiscal 2017-18 through Fiscal 2024-25; separately, an MGT-14 filing for Fiscal 2025-26 had not yet been filed at all as of this DRHP (58 days overdue at the time of disclosure).

l The Company experienced negative operating cash flow in the 6 month stub period through September 30, 2025 (Rs.(169.47) Lakhs) despite record reported profit for the same period, a reversal from positive operating cash flow in both full fiscal years shown; the specific driver of this divergence is not detailed in the excerpt reviewed here and should be confirmed in the full DRHP.

l Revenue remains dependent on a small number of customers without long-term or exclusive agreements: the top 10 customers contributed 87.06% and 87.09% of revenue in FY23 and FY24 respectively, moderating to 60.12% (FY25) and 67.30% (H1 FY26), a genuine improving trend but still a meaningful concentration.

l The Company has not made any alternate arrangements for meeting its capital requirements for the Objects of this Issue, and has not yet placed orders for the IT Infrastructure upgrade capital expenditure, leaving both funding certainty and timing execution risk open.

l The Company does not hold any registered Intellectual Property Rights in its own name, which could affect its ability to protect and enforce its proprietary technology and product assets.

l The Company's Promoters and Directors have extended personal guarantees for various loan facilities availed by the Company, and its lenders hold charges over the Company's movable properties.

l There have been certain instances of delays in payment of statutory dues, and the Company has outstanding litigation proceedings involving the Company and its Promoters.

l Relevant copies of experience certificates for the Company's Non-Executive Independent Directors are not traceable, a specific, disclosed documentation gap.

l The Company's Registered Office is located on rental premises, and the Company has entered into related party transactions in the past that may continue.

l The Company's global operations expose it to legal, regulatory and market risks specific to operating across multiple jurisdictions.

l The Company may have issued Equity Shares at a price below the proposed Issue Price during the 12 months prior to this DRHP.

l The Company's success is highly dependent on its ability to attract, train and retain skilled IT professionals in a competitive talent market, and its business is exposed to cybersecurity and IT system failure risk typical of a technology services provider.

Positives to Note

l Revenue and profit have both grown very substantially: revenue rose from Rs.735.54 Lakhs (FY23) to Rs.2,833.33 Lakhs (FY25), and PAT grew more than 6.6 times over the same period, with EBITDA margin improving from 11.80% to 19.35%.

l Customer concentration has genuinely improved over time: the top 10 customers' share of revenue fell from 87.06% to 87.09% in FY23 and FY24 to 60.12% in FY25 and 67.30% in the H1 FY26 stub period, evidencing real diversification rather than a static risk.

l The Company's RoNW, on both a full fiscal year basis (62.01% to 76.84%) and the stub period basis shown in the peer comparison (33.38%), exceeds all 3 disclosed listed IT services peers on a same-period basis, despite those peers being substantially larger and more established.

l The Company has moved decisively into a technology-forward strategic direction, incorporating AI, machine learning and cloud-based DevOps capabilities into its product offerings, positioning it within the higher-growth segments of the IT services industry.

l Full fiscal year operating cash flow was positive in both FY 2024 and FY 2025 (Rs.10.95 Lakhs and Rs.249.98 Lakhs respectively), suggesting the H1 FY26 stub period's negative figure may reflect a specific, period-limited working capital dynamic rather than an established multi-year pattern.

l The Company's largest capital Object, manpower investment, is directly aligned with its people-intensive IT services business model, and the Fresh Issue carries no capital expenditure execution risk of the scale seen in manufacturing-sector reports elsewhere in this series.

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