Kratikal Tech IPO (30 June - 2 July) Analysis

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

Based on Red Herring Prospectus dated June 22, 2026  |  AI-Driven Cybersecurity SaaS via Threatcop Platform  |  Noida, Uttar Pradesh

STATUS: RHP FILED  |  Fresh Issue: up to 29,40,000 Equity Shares  |  No OFS  |  Anchor Bidding June 25, Bid/Issue Opens June 26, Closes June 30, 2026  |  BSE SME Platform  |  Noida, Uttar Pradesh

 Kratikal Tech Limited (KTL) is a Noida, Uttar Pradesh-based provider of AI-driven, Software-as-a-Service (SaaS) cybersecurity solutions and services. Originally incorporated as Kratikal Tech Private Limited, it converted to a public limited company ahead of this IPO. Its registered and corporate office is at 5th Floor A-5 Sector 68, Grovy Optiva, Gautam Buddha Nagar, Noida 201301, Uttar Pradesh, India. Its website is https://kratikal.com. Its CIN is U62099UP2013PLC060625. The three promoters of the company are Mr. Pavan Kumar, Mr. Paratosh Kumar, and Mr. Dip Jung Thapa.

Business model: KTL delivers its cybersecurity solutions across the People, Process, and Technology stack, integrating two primary product and service offerings. First, the Threatcop platform, its proprietary SaaS platform for People Security Management (PSM), focuses on human-centric cyber risk reduction through employee awareness simulation (phishing simulation, ransomware simulation, vishing, smishing), e-learning modules, and threat intelligence, delivered under its subsidiary brand.

Second, cybersecurity services under the Kratikal brand cover technical security domains including Vulnerability Assessment and Penetration Testing (VAPT), Red Teaming, Cybersecurity Audits, Risk and Compliance Management, Cloud Security Assessment, and related regulatory compliance services. Together, these capabilities position KTL as an integrated cybersecurity partner enabling enterprise clients to proactively identify, prioritise, and mitigate cyber risks.

International expansion: a key strategic priority is the company's geographic diversification into international markets, particularly the UAE (through the subsidiary Threatcop FZ LLC) and the United States (through Threatcop AI Inc). Export revenue grew from Rs.169.90 lakhs (FY2024) to Rs.275.11 lakhs (FY2025) to Rs.1,099.21 lakhs (FY2026), with export share of revenue growing from 13.05% to 13.19% to 29.94%, demonstrating the early but accelerating international traction of the Threatcop platform in the Middle East and North American markets.

Client base: KTL served 677 clients in FY2026, growing from 638 in FY2025 and 424 in FY2024. Customer concentration is notably well-diversified: the top 1 customer contributed just 8.93% of revenue in FY2026, and the top 10 contributed 31.60%, remarkably low concentration for a company of this scale and stage. This reflects the platform-based SaaS model, where multiple smaller subscription relationships contribute more uniformly to revenue than a few large project-based contracts.

A 600:1 bonus issue (600 new shares for every 1 existing share) was allotted on November 26, 2025 pursuant to an EGM held on November 24, 2025, significantly expanding the equity share count and adjusting all per-share metrics retrospectively.

Key Basics

This is a 100% Fresh Issue with no Offer for Sale component, listing on BSE SME. The RHP is dated June 22, 2026. The Issue is made under Regulation 229(2) and 253(1) of SEBI ICDR Regulations.

Document Type	Red Herring Prospectus (RHP) dated June 22, 2026. Bidding dates confirmed; Price Band to be announced at least two Working Days prior to the Bid/Issue Opening Date.
Issue Type	100% Book Built Fresh Issue of up to 29,40,000 Equity Shares of face value Rs.10 each. No OFS. Company receives full net proceeds after expenses.
Face Value	Rs.10 per Equity Share
Promoters	Mr. Pavan Kumar, Mr. Paratosh Kumar, and Mr. Dip Jung Thapa.
Eligibility	Regulation 229(2) and 253(1) of SEBI ICDR Regulations.
Listing Exchange	SME Platform of BSE Limited (BSE SME). Designated Stock Exchange: BSE.
BRLM	Beeline Capital Advisors Private Limited. Contact: Mr. Nikhil Shah.
Registrar	KFin Technologies Limited. Contact: M Murali Krishna. Email: kratikal.ipo@kfintech.com
Anchor Bidding	Thursday, June 25, 2026.
Bid/Issue Opens	Friday, June 26, 2026.
Bid/Issue Closes	Monday, June 30, 2026.
Listed Industry Peers	AAA Technologies Limited and Accedere Limited, two named listed peers, explicitly noted as not strictly comparable given scale and service differences.
Industry P/E Range	Highest: 56.30x (AAA Technologies), Lowest: 44.04x (Accedere), Average: 50.17x. P/E computed on March 30, 2026 closing prices vs FY2026 Diluted EPS.

 This is a 100% Fresh Issue. The use of proceeds has a distinct growth and international expansion character: the dominant allocation funds sales, marketing, and workforce development in the UAE and US subsidiaries, reflecting KTL's core strategic bet on international market penetration, with a secondary allocation toward product development.

Object	Amount (Rs. Lakhs)	Details
Investment in Threatcop FZ LLC (UAE) and Threatcop AI Inc (USA) for Sales, Marketing and Workforce Development	2,308.45	Funding sales and marketing activities and hiring of workforce resources in the UAE and US subsidiaries. This is the largest single allocation and directly reflects KTL's core growth strategy of accelerating international revenue, which grew from 13% to 30% of total revenue in FY2026. The international GTM (Go-to-Market) investment is explicitly described as a strategic scale-up, not ongoing operational expenditure.
Investment in Product Development	923.45	Funding enhancement and development of the Threatcop platform including AI capabilities, new module additions, and technology infrastructure. The company's intangible assets under development of Rs.863.08 lakhs as of March 31, 2026 already reflect prior capitalised product development spending.
General Corporate Purposes	[TBD]	Capped at the lower of 15% of Gross Proceeds or Rs.1,000 lakhs. To be finalised at Prospectus stage upon determination of the Issue Price.
TOTAL FRESH ISSUE (up to 29,40,000 shares)	[TBD]	100% Fresh Issue. No OFS. Cost vetting report dated December 25, 2025 was issued by Infomerics Analytics and Research Private Limited.

The use of proceeds profile is unusual relative to most SME issuers reviewed: rather than working capital or debt repayment, this IPO is primarily funding international growth infrastructure, specifically sales, marketing, and people capacity in the UAE and US, two markets where the Threatcop platform is already generating early but accelerating traction. This is a growth-forward capital allocation, appropriate for a company with zero debt and positive operating cash flows, but also one that requires investors to trust management's ability to convert this international marketing and sales spending into sustained, scalable international subscription revenue.

Financial Performance

Note: All figures in Rs. lakhs unless stated. Financial periods: Fiscal 2026 (year ended March 31, 2026), Fiscal 2025 (year ended March 31, 2025), Fiscal 2024 (year ended March 31, 2024). Restated Consolidated Financial Statements. This is a high-growth, highly profitable technology company: rare qualities in the SME IPO space. Revenue has grown 181.9% over two years, EBITDA margins exceed 24%, the company is debt-free, and operating cash flows have been consistently positive.

Revenue, EBITDA, and Profitability

Metric	FY2026 (Rs. L)	FY2025 (Rs. L)	FY2024 (Rs. L)
Revenue from Operations	3,671.59	2,085.09	1,301.58
Revenue Growth % YoY	+76.09%	+60.20%	N/A
Export Revenue (Rs. Lakhs)	1,099.21	275.11	169.90
Export as % of Revenue	29.94%	13.19%	13.05%
Other Income	14.06	29.46	26.91
Total Income	3,685.65	2,114.55	1,328.49
Employee Benefits Expense	1,505.04	981.16	575.05
Other Expenses (incl. marketing)	1,144.30	513.93	328.04
Finance Costs	1.80	1.25	21.16
Depreciation and Amortisation	82.77	30.25	12.68
Total Expenses	2,848.08	1,565.35	935.70
Profit Before Tax	837.57	549.20	392.79
Tax Expenses (Net)	223.32	167.76	72.47
Profit After Tax	614.25	381.44	320.32
PAT Growth % YoY	+61.01%	+19.08%	N/A
EBITDA	908.08	551.25	387.04
EBITDA Margin %	24.73%	26.44%	29.74%
PAT Margin %	16.73%	18.29%	24.61%
Return on Equity %	34.95%	43.13%	66.29%
Return on Capital Employed %	34.35%	47.48%	56.30%
Debt to Equity Ratio (times)	0.00x	0.00x	0.00x
Basic EPS (Rs., post-bonus adj.)	7.86	6.17	5.18
Diluted EPS (Rs.)	7.85	5.08	4.35
Weighted Average EPS (Rs.)	6.85 (basic), 6.34 (diluted)	N/A	N/A
RoNW %	25.57%	34.28%	48.83%
NAV per Share (Rs.)	29.43	17.99	10.61
Clients Served (number)	677	638	424
Workforce Strength (number)	200	165	124

KTL's financial trajectory is exceptional by any benchmark, and particularly so in the SME IPO context. Revenue grew 60.20% (FY2025) and 76.09% (FY2026), compounding to a 181.9% increase over just two years. More importantly, absolute PAT grew from Rs.320.32 lakhs to Rs.614.25 lakhs over the same two years while margins remained robust, demonstrating that the company is not sacrificing profitability for growth.

EBITDA margins of 24.73% to 29.74% across the three years are exceptionally high for a technology services company at this scale, reflecting the favourable economics of SaaS subscriptions (the Threatcop platform) combined with cybersecurity services revenue. The company is completely debt-free (debt-to-equity of 0.00x in all three years), and positive operating cash flows have been generated every year (Rs.422.12 lakhs, Rs.457.85 lakhs, Rs.209.85 lakhs).

The decline in RoNW from 48.83% to 25.57% reflects the growing equity base rather than any decline in profitability, and is the natural mathematical outcome of accumulating retained earnings.

Balance Sheet

Balance Sheet Item	FY2026 (Rs. L)	FY2025 (Rs. L)	FY2024 (Rs. L)
Equity Share Capital	816.05	2.88	2.88
Reserves and Surplus	1,585.93	1,109.73	653.15
Total Shareholders Funds	2,401.98	1,112.61	656.04
Total Borrowings (Current and Non-Current)	Nil	Nil	Nil
Trade Receivables	891.97	406.40	242.33
Cash and Bank Balance	154.56	160.97	106.54
Total Assets	3,011.51	1,557.67	905.23
Current Ratio (times)	2.40x	1.77x	1.94x
Operating Cash Flow (Rs. Lakhs)	209.85	457.85	422.12

The balance sheet is a standout: total shareholders' funds grew from Rs.656.04 lakhs (FY2024) to Rs.2,401.98 lakhs (FY2026), a 266% increase purely through retained earnings and the Rs.813.17 lakh equity expansion from the 600:1 bonus share allotment (reflected in share capital jumping from Rs.2.88 lakhs to Rs.816.05 lakhs).

Zero borrowings in all three years confirm that every rupee of asset growth has been self-funded through profitability. The current ratio of 2.40x reflects strong short-term liquidity, and while operating cash flow declined from Rs.457.85 lakhs (FY2025) to Rs.209.85 lakhs (FY2026) due to higher working capital absorption (trade receivables growing from Rs.406.40 lakhs to Rs.891.97 lakhs as revenue scaled), this remains solidly positive.

How Does It Compare to Peers?

The RHP discloses two listed industry peers on BSE SME: AAA Technologies Limited and Accedere Limited, both explicitly noted as not strictly comparable given the specific nature of KTL's AI-driven cybersecurity SaaS platform.

Metric (FY2026)	Kratikal Tech	AAA Technologies	Accedere Limited	Notes
Revenue from Ops (Rs. L)	3,671.59	2,037.86	415.34	Kratikal is largest
EBITDA Margin %	24.73%	N/A	N/A
PAT (Rs. L)	614.25	N/A	N/A
EPS Basic (Rs.)	7.86	1.61	1.37	Kratikal highest EPS
P/E Ratio (Mar 30, 2026 CMP)	N/A (pre-listing)	55.38x	44.04x	Avg: 50.17x
RoNW %	25.57%	6.66%	12.51%	Kratikal leads significantly
NAV per Share (Rs.)	29.43	24.14	10.98
Debt to Equity	0.00x	N/A	N/A

KTL's RoNW of 25.57% substantially exceeds both named peers (AAA Technologies: 6.66%, Accedere: 12.51%), and its revenue of Rs.3,671.59 lakhs is nearly 10 times Accedere's. KTL's EPS of Rs.7.86 is also the highest in the peer group. The peer group trades at P/E multiples of 44.04x to 55.38x (average 50.17x).

Applying the 50.17x average to KTL's FY2026 diluted EPS of Rs.7.85 implies an indicative price of approximately Rs.394 per share, though the company and BRLM retain full discretion in setting the Price Band, and SME issuers with technology profiles often command premiums or discounts to peers depending on growth trajectory and scalability narrative.

Key Risks

l  International market execution is the central strategic bet, funded by this IPO, but unproven at scale: Rs.2,308.45 lakhs (approximately 71% of the specifically identified use of proceeds) is allocated to sales, marketing, and workforce development in the UAE and US subsidiaries. While export revenue has grown impressively (from Rs.169.90 lakhs to Rs.1,099.21 lakhs in two years), the company remains primarily domestic (70% of revenue) and has not yet demonstrated sustained profitability or independent viability in its international subsidiaries.

The success of this capital allocation depends on converting this international GTM investment into recurring international subscription revenue at a pace that justifies the expenditure, an outcome that management can influence but cannot guarantee in markets as competitive as the US cybersecurity space.

l  EBITDA and PAT margins have been declining as the company scales, despite strong revenue growth: EBITDA margin declined from 29.74% (FY2024) to 26.44% (FY2025) to 24.73% (FY2026), and PAT margin from 24.61% to 18.29% to 16.73%, as employee benefit costs (growing from Rs.575.05 lakhs to Rs.1,505.04 lakhs, a 162% increase over two years) and marketing expenses grow faster than revenue. This is a natural and expected pattern for a scaling SaaS business investing aggressively in growth, but investors should understand that the IPO proceeds will further accelerate this spending, potentially compressing near-term margins further before the international revenue scale-up delivers offsetting top-line benefits.

l  Customer acquisition in cybersecurity is relationship-dependent, specialised, and subject to budget cycles: cybersecurity services and SaaS platforms are typically sold to Chief Information Security Officers and IT procurement teams in larger enterprises, requiring significant technical credibility, relationship building, and sales cycle management. The RHP discloses that a meaningful portion of enterprise cybersecurity budgets is deployed towards the end of financial years, creating seasonal patterns that can cause quarter-to-quarter revenue unevenness and cash flow volatility. Loss of key sales personnel in the international subsidiaries would be particularly damaging given the relationship-intensive nature of the selling process.

l  Rapidly evolving cybersecurity threat landscape and technology means product requires continuous investment to remain relevant: KTL's competitive position depends on maintaining technological leadership in AI-driven threat simulation and employee security awareness, a segment where both established players (KnowBe4, Proofpoint) and new AI-native entrants are active internationally. Any failure to keep the Threatcop platform current with evolving threat vectors, attack methodologies, or AI capabilities could erode the product's value proposition relative to better-capitalised competitors.

l  Intangible assets under development of Rs.863.08 lakhs as of March 31, 2026 represent a significant off-balance-sheet value but also capitalised development cost risk: if any specific development project does not result in a commercialisable product or feature, the capitalised cost may require write-off, affecting reported profitability in the period of recognition.

l  Cybersecurity regulatory compliance requirements across multiple jurisdictions: KTL is subject to, and must continuously comply with, evolving data protection, cybersecurity, and AI governance regulations in India, UAE, and the US, including requirements specific to its clients in regulated sectors such as government, banking, and healthcare. Non-compliance or failure to obtain required approvals could restrict the company's ability to serve certain customer categories.

l  Workforce dependency risk in a talent-scarce market: with 200 employees across cybersecurity, technology, and sales functions, KTL's ability to execute is highly people-dependent. The cybersecurity talent market is globally competitive, and the company faces ongoing risk of attrition among key technical and sales personnel, particularly in the international subsidiaries where market compensation benchmarks may differ substantially from Indian norms.

l  Trade receivables grew 119.5% in one year (from Rs.406.40 lakhs to Rs.891.97 lakhs), materially faster than the 76% revenue growth: while this could reflect growing enterprise contracts with standard 30-90 day payment terms, it also represents a working capital absorption trend that investors should monitor for potential collection risk or delayed payment patterns from enterprise clients.

Positives to Note

l  Exceptional revenue growth of 76.09% (FY2026) on top of 60.20% (FY2025), compounding to 181.9% in two years: this is among the strongest revenue growth trajectories of any issuer reviewed in this series, driven by both domestic client base expansion (424 to 677 clients over two years) and rapidly accelerating international revenue (export share rising from 13% to 30%). In the context of the Indian SaaS and cybersecurity markets, this is a genuinely outstanding growth record.

l  Zero debt across all three years with positive operating cash flows in every year: the combination of no borrowings and consistently positive operating cash generation (Rs.422.12 lakhs, Rs.457.85 lakhs, Rs.209.85 lakhs across FY2024, FY2025, FY2026) confirms this is a self-funding, capital-efficient technology business that has scaled through retained earnings alone, with the IPO representing a growth-capital raise rather than a financial rescue.

l  EBITDA margins of 24.73% to 29.74% are exceptional for a technology services company at this stage: most technology services companies at this scale carry EBITDA margins in the 10% to 18% range. KTL's 25%+ margins reflect the favourable economics of the SaaS subscription model (particularly for the Threatcop platform) where marginal cost of serving additional subscribers is low once the platform is built.

l  Well-diversified customer concentration: top 1 customer at just 8.93%, top 10 at 31.60% of revenue in FY2026: this is among the most diversified customer bases of any SME issuer reviewed, reducing the revenue concentration risk that is a recurring concern in this segment. The SaaS subscription model inherently promotes diversification by generating recurring smaller-ticket relationships rather than large one-off project contracts.

l  Growing international revenue representing a genuine structural diversification: export revenue grew from Rs.169.90 lakhs to Rs.1,099.21 lakhs (a 547% increase over two years), with the UAE emerging as an early stronghold for the Threatcop platform. This international diversification reduces the company's exposure to purely domestic Indian cybersecurity budget cycles and provides access to global markets where per-seat SaaS pricing for cybersecurity awareness platforms is meaningfully higher than in India.

l  RoNW of 25.57% (FY2026) leads both named listed peers by a wide margin, despite being a larger business by revenue: this confirms KTL generates superior returns on shareholder equity compared to the peer group, and the declining trend from 48.83% (FY2024) to 25.57% (FY2026) reflects natural equity base dilution from strong retained earnings accumulation rather than any operational deterioration.

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