Kwick Forensic Solutions IPO (27 Aug- 31 Aug) Analysis

BSE SME IPO  |  August 27 to 31, 2026

Issue Type: Fresh Issue + OFS (BSE SME)	Fresh Issue: Up to 45,61,600 shares
Offer for Sale: Up to 10,80,000 shares	Total Issue Size: Up to 56,41,600 shares
Face Value: Rs. 10 per share	Price Band: To be announced
Issue Open: Aug 27, 2026	Issue Close: Aug 31, 2026

 Kwick Forensic Solutions Limited, formerly Kwick Soft Solutions Private Limited, is a Chennai based forensic science solutions company incorporated in 2005. Its tagline, "From Crime Scene to Court", captures its mission: to provide law enforcement agencies with an end to end technology and equipment ecosystem that supports the entire evidence life cycle, from detection and collection at the crime scene through to tamper evident digital documentation suitable for use in court.

The company began as a software development firm focused on 3D rendering for the construction sector. In 2008 it pivoted to forensic science by developing an Interactive Virtual Reality Crime Scene Simulator, receiving funding from the Ministry of Science and Technology, the Directorate of Forensic Science, and TIFAC. By FY2015 it had expanded into fingerprint science, cyber and digital forensics, social media analytics, and big data analytics. It has since evolved into a multi segment forensic products and services business.

Product Segments

Kwick operates across four product segments and one services segment. Forensic Science and Physical Evidence Solutions, its original and largest segment accounting for 37% of FY2026 revenue, covers 14 varieties of forensic kits (fingerprint, DNA, narcotics, explosives, ballistics, scene documentation), handheld field devices it has developed in house, and controlled environment fuming chambers and evidence cabinets. The company is an authorised representative for Sirchie (USA) and a channel partner of Thermo Fisher Scientific for forensic products.

Mobile CSI Vehicles (MCSIV), contributing 10% of FY2026 revenue, involves supplying fully equipped forensic vans, mobile forensic laboratories, and motorcycles fitted with scientific kits to state police forces. From mid FY2025 the company shifted to supplying only the digital and scientific kits while outsourcing vehicle procurement and body fabrication to local dealers, reducing capital intensity.

The Cyber and Digital Forensics segment (33% of FY2026 revenue) covers data retrievers, write blockers, forensic imagers, and social media analysis tools used to extract and preserve digital evidence. The DNA Forensics segment (11% of FY2026 revenue) includes DNA sample collection kits, rapid DNA testing systems such as RapidHIT ID, and the SmallPond DNA database and matching platform, for which Kwick is the authorised non exclusive reseller in India.

On the services side (9% of FY2026 revenue), the company rents forensic scanning equipment, notably handheld liquor detection scanners, to government agencies under a rental cum manpower model. It has deployed 12 contract personnel at client locations for round the clock support.

In House Developed Handheld Devices

A distinguishing feature of Kwick is its in house R&D team, which has developed four commercialised proprietary devices: the Kwick Vision Pro (a forensic evidence search and capture smart device), the Multispectral Tablet for body fluid detection, the Digital Multipurpose Optical Comparator for fingerprint bureau use, and Laboratory Fuming Chambers. Two additional devices, the Kwick Smart Handheld 8D Device and the Kwick Fingerprint 4D, are under development and in demonstration phase, with commercial launches pending.

Customers and Business Model

The company's customers are predominantly government and institutional: police stations, state and central forensic science laboratories, fingerprint bureaus, crime investigation departments, and police training academies. Client acquisition is primarily through the Government e Marketplace (GeM) portal and other electronic procurement portals, making the business inherently tender driven and tied to government budget cycles.

Kwick holds ISO 9001:2015, ISO 14001:2015, ISO/IEC 20000-1:2018, and ISO/IEC 27001:2022 certifications and is registered as an MSME and with DSIR and NSIC. Its domestic sourcing has risen from 65% in FY2024 to 91% in FY2026, significantly reducing import dependency. Key industry drivers include the new Bharatiya Nagarik Suraksha Sanhita (BNSS) 2023 framework, which mandates increased use of forensic science in criminal investigations, and sustained government investment in modernising law enforcement infrastructure.

This is a combined Fresh Issue and Offer for Sale (OFS). Under the Fresh Issue, the company will issue up to 45,61,600 new equity shares and receive the proceeds directly. Under the OFS, three promoter shareholders are selling a total of up to 10,80,000 existing shares; the proceeds from the OFS go entirely to those selling shareholders and not to the company.

OFS Selling Shareholders

Selling Shareholder	Shares Offered	Avg. Acquisition Cost
Mr. Shammer Saralal Shah (CMD)	2,16,000	Rs. 1.14 per share
Mrs. Sejal Shammer Shah (Director)	6,48,000	Rs. 2.29 per share
Mr. Tulsidas Hinduja Ashok Kumar (COO)	2,16,000	Nil (received as gift)
Total OFS	10,80,000	N/A

Pre offer, promoters and promoter group hold 88.53% of the company. Post offer, their stake will dilute. The three OFS sellers are also promoters, and their cost of acquisition is extremely low (Rs. 1.14 to Nil), which means they stand to realise substantial gains at any reasonable offer price. This is a consideration for prospective investors.

Key Issue Details

Parameter	Details
Total Issue Size	Up to 56,41,600 equity shares
Net Public Offer	Up to 53,58,400 shares (after market maker)
Market Maker	R.K. Stockholding Pvt. Ltd. (2,83,200 shares reserved)
Pre-Offer Shares	1,68,74,840
Post-Offer Shares	2,14,36,440
Face Value	Rs. 10 per share
Exchange	BSE SME
BRLM	Corporate CapitalVentures Private Limited
Registrar	Bigshare Services Private Limited

Only the Fresh Issue proceeds accrue to the company. The OFS proceeds go entirely to the three promoter sellers and will not be used for the company's operations or growth. All figures are in Rs. Lakhs.

Object of Fresh Issue	Amount (Rs. Lakhs)
Funding Working Capital Requirements	3,142.00
General Corporate Purposes	Balance (max 15% of gross proceeds or Rs. 1,000 lakhs)
Total Net Proceeds	[To be finalised at offer price]

The entire identified deployment of Rs. 3,142 lakhs is earmarked for working capital. The rationale, as set out in the RHP, is that the company's tender driven government business requires stocking forensic kits and inventory ahead of order execution, maintaining extended receivable cycles (trade receivables stood at Rs. 2,288 lakhs as at March 31, 2026), and funding fabrication and integration costs for CSI vehicle and kit orders prior to payment receipt. The Board has approved this working capital estimate, which has been independently certified by the statutory auditor.

The projected working capital gap for FY2026 to 27 is Rs. 4,442 lakhs, of which Rs. 3,142 lakhs is proposed to be funded from IPO proceeds and Rs. 1,300 lakhs from internal accruals. No IPO funds will be used for repaying outstanding loans (the company is already debt free).

FINANCIAL PERFORMANCE

 All figures are in Rs. Lakhs (standalone, restated). Kwick follows the April to March fiscal year. The company has delivered exceptional revenue and profit growth over the three-year period. The Adjusted Basic EPS figures below restate historical earnings on the post-bonus share base, making them directly comparable. (The unadjusted Basic EPS fell sharply from Rs. 68.59 in FY2024 to Rs. 8.00 in FY2026 purely because of the 7:1 bonus issue in September 2025, which expanded the share count approximately eightfold; this does not reflect any deterioration in earnings power.)

Profit & Loss Summary

Particulars (Rs. Lakhs)	FY2024	FY2025	FY2026
Revenue from Operations	3,018.33	6,502.69	10,571.28
EBITDA (approx.)	544.51	1,224.90	1,906.50
EBITDA Margin	18.0%	18.8%	18.0%
Profit Before Tax	378.64	1,121.12	1,821.45
PAT	283.47	855.94	1,350.77
PAT Margin	9.39%	13.16%	12.78%
Adjusted Basic EPS (Rs.)	8.57	5.41	8.00

Revenue grew 3.5x in two years, from Rs. 3,018 lakhs in FY2024 to Rs. 10,571 lakhs in FY2026. PAT grew 4.8x over the same period. The EBITDA margin has remained stable at approximately 18%, demonstrating that profitability has scaled proportionally with revenues. The PAT margin improved from 9.4% in FY2024 to 12.8 to 13.2% in FY2025 and FY2026, partly reflecting the elimination of borrowing costs as the company became debt free.

Balance Sheet Highlights

Particulars (Rs. Lakhs)	FY2024	FY2025	FY2026
Total Equity	985.99	2,789.90	4,140.67
Total Borrowings	323.71	325.61	0
Trade Receivables	1,193.58	1,979.05	2,288.07
Inventories	328.73	756.63	1,043.71
Cash & Equivalents	3.50	1,206.79	1,316.32
Total Assets	1,918.77	4,678.96	6,053.09

The company became completely debt free in FY2026, eliminating both long term and short term borrowings. Equity has grown more than fourfold in two years, driven by retained profits. The large trade receivables balance of Rs. 2,288 lakhs, equivalent to 78 days of revenue, reflects the nature of government contracts, where payment timelines are extended. Cash holdings of Rs. 1,316 lakhs as at March 2026 are healthy.

Cash Flow Summary

Cash Flow (Rs. Lakhs)	FY2024	FY2025	FY2026
Operating Cash Flow (OCF)	(260.57)	465.09	762.30
Investing Cash Flow	(40.21)	(97.40)	(273.17)

Operating cash flow turned negative in FY2024 at Rs. (260.57) lakhs, primarily because the rapid ramp up in business required a large build up in working capital (trade receivables and inventories) that outpaced collections. OCF recovered strongly in FY2025 to Rs. 465.09 lakhs and improved further to Rs. 762.30 lakhs in FY2026, indicating that the business model, while working capital intensive, is capable of generating meaningful cash at scale. Investing outflows are rising (Rs. 273.17 lakhs in FY2026) reflecting capital spending on business expansion.

Key Financial Ratios

Ratio	FY2024	FY2025	FY2026
Return on Net Worth (RoNW)	28.75%	45.34%	38.99%
Debt to Equity Ratio	0.33x	0.12x	0.00x
Current Ratio	2.36x	2.41x	2.90x

Return on net worth is high, reflecting strong profitability relative to the equity base. The sharp decline from 45% in FY2025 to 39% in FY2026 is primarily a base effect: the equity base grew rapidly due to retained earnings, while absolute profit growth, though strong, did not keep pace. The current ratio of 2.9x in FY2026 indicates a comfortable liquidity position. The debt to equity ratio has fallen to zero, making the company fully equity financed.

PEER COMPARISON

 Kwick Forensic Solutions Limited operates in the specialised forensic science equipment and solutions space for law enforcement. The RHP does not identify any directly comparable listed company in India operating in the same niche. Forensic science as a distinct listed sector does not exist on Indian exchanges. As a result, a like for like peer comparison is not possible, and the company has been valued on its own financial merits. Key metrics are summarised below for reference.

Metric	FY2024	FY2025	FY2026
Revenue (Rs. Lakhs)	3,018.33	6,502.69	10,571.28
PAT Margin	9.39%	13.16%	12.78%
EBITDA Margin	18.0%	18.8%	18.0%
RoNW	28.75%	45.34%	38.99%
D/E Ratio	0.33x	0.12x	0.00x
Adjusted EPS (Rs.)	8.57	5.41	8.00

The company's growth profile of 3.5x revenue and 4.8x PAT in two years is notable. Its EBITDA margins are stable and its balance sheet is debt free. The absence of listed peers makes relative valuation difficult; investors will need to assess the offer price relative to these absolute metrics and the growth trajectory when the price band is announced.

KEY RISKS

Government / Tender Dependency

Virtually all of Kwick's revenue comes from government departments and forensic agencies, acquired through GeM and other electronic procurement portals. This makes the business highly dependent on government budget allocations, tender timelines, and procurement policy. Any reduction in government spend on forensic science, delays in tender awards, or adverse changes in procurement rules could materially impact revenue and margins.

Extended Receivable Cycles and Working Capital Stress

Government customers typically have long payment cycles, and the company's trade receivables stood at Rs. 2,288 lakhs as at March 31, 2026, representing nearly 79 days of revenue. Any further elongation of payment timelines could strain working capital. Operating cash flow was negative in FY2024 (Rs. -260.57 lakhs), reflecting how rapidly a revenue ramp can consume working capital in this business model. While the situation improved in FY2025 and FY2026, this risk remains structural.

Auditor Change

The company's previous statutory auditor, Ghewarchand Rathan Kumar, resigned in April 2025 because the firm was not a peer reviewed auditor as required by SEBI ICDR Regulations for IPO filing companies. A new auditor, M/s A B C D and Co LLP, was appointed in May 2025 and reappointed at the AGM in September 2025. While this was a procedural compliance matter rather than an audit quality issue, the change is recent and investors should note the limited track record of the new auditor with this company.

OFS: Promoters Partially Exiting

Three promoters, the CMD, his wife (Non-Executive Director), and the COO, are selling a combined 10,80,000 shares through the OFS. Their average cost of acquisition is Rs. 1.14, Rs. 2.29, and nil respectively. At any reasonable offer price, the selling shareholders will realise very large gains. While the quantum of OFS is modest relative to the total offer size, investors should note that the company itself receives no benefit from the OFS component of the issue.

Rising Bank Guarantees

Contingent liabilities in the form of bank guarantees rose sharply from Rs. 119.82 lakhs in FY2024 to Rs. 592.85 lakhs in FY2026. Bank guarantees are typically required for government tenders, and this increase reflects the company's growing participation in large government contracts. While this indicates business expansion, it also represents a contingent financial obligation that could crystallise if contracts are not fulfilled.

Products Not Yet Commercialised

Two of the company's six in house developed handheld devices, the Kwick Smart Handheld 8D Device and the Kwick Fingerprint 4D, are not yet commercialised. Both are at demonstration stage and have no revenue history. Commercial launches depend on further R&D completion, customer acceptance, and regulatory approvals. There is no guarantee these products will generate revenue or that their timeline and specifications will not change.

Bonus Share Expansion: EPS Non-Comparability

In September 2025, the company issued bonus shares in the ratio of 7:1, expanding the share count approximately eightfold. The resulting unadjusted Basic EPS dropped from Rs. 68.59 in FY2024 to Rs. 8.00 in FY2026. The RHP provides Adjusted Basic EPS (restating historical EPS on the post-bonus base), which shows a decline from Rs. 8.57 in FY2024 to Rs. 5.41 in FY2025 before recovering to Rs. 8.00 in FY2026. Investors should use the Adjusted EPS series for comparability and not be misled by the apparent EPS collapse in the unadjusted figures.

KEY POSITIVES

 Exceptional Revenue and Profit Growth

Revenue grew from Rs. 3,018 lakhs in FY2024 to Rs. 10,571 lakhs in FY2026, a 3.5x increase in two years. PAT grew from Rs. 283 lakhs to Rs. 1,351 lakhs over the same period, a 4.8x increase. This is among the strongest growth profiles seen in SME IPO candidates. The consistent EBITDA margin of approximately 18% across all three years demonstrates that this growth has been operationally efficient.

Completely Debt Free

As at March 31, 2026, the company carries zero borrowings; both long term and short term debt have been fully repaid. This is a materially strong balance sheet position for an SME stage company. The elimination of debt has also contributed to margin improvement; finance costs fell from Rs. 133 lakhs in FY2024 to Rs. 37 lakhs in FY2026. Going forward, post IPO the company will fund its working capital gap primarily from IPO proceeds and internal accruals, without needing to take on debt.

Government Backed Demand: BNSS and Forensic Science Mandate

The Bharatiya Nagarik Suraksha Sanhita (BNSS) 2023, which replaces the Code of Criminal Procedure, mandates forensic investigation for crimes punishable by seven or more years of imprisonment. This legislative change creates a structural, recurring demand driver for forensic science equipment and services from law enforcement agencies across India. Kwick, as a specialist provider with established government relationships, is well positioned to benefit from this policy tailwind.

In House R&D and Proprietary Devices

The company has developed four commercially deployed proprietary handheld forensic devices through its in house R&D team. This capability differentiates Kwick from pure play distributors and builds intellectual property. Proprietary devices typically command better margins and create stickier customer relationships. Two additional devices under development could expand the addressable product portfolio further.

Multiple International Partnerships and Awards

Kwick is an authorised representative for Sirchie (USA) for fingerprint laboratories in India, an authorised non exclusive reseller for SmallPond DNA database systems, and a multiple year channel partner of Thermo Fisher Scientific, from whom it has received Best Emerging Channel Partner awards in 2023 and 2024.

It has also won the Forensic Technology Challenge organised by the Ministry of Home Affairs, was recognised at the All India Forensic Science Summit 2025, and received the Top Performing Partner Award from MH Service in 2025 to 26. These recognitions validate the company's technical standing and relationships within the forensic science ecosystem.

Improving Operating Cash Flow

After negative operating cash flow in FY2024 (Rs. -260.57 lakhs), caused by the working capital demands of rapid revenue growth, OCF turned strongly positive at Rs. 465.09 lakhs in FY2025 and improved further to Rs. 762.30 lakhs in FY2026. This recovery demonstrates that the business model, though working capital intensive, converts profits into cash as the receivable and inventory cycles normalise. The trend is encouraging.

Domestic Sourcing Now Dominant

The share of domestically procured raw materials rose from 65% in FY2024 to 91% in FY2026. This shift reduces foreign exchange risk, shortens supply chains, and supports cost control. It also makes the company more resilient to global supply disruptions and import duty changes, which have historically been a risk factor for India based technology equipment companies.

DISCLAIMER: This report is prepared for informational purposes only, based on the Red Herring Prospectus filed by the company. It does not constitute investment advice or a recommendation to buy or sell securities. Investors should read the full RHP and consult their financial advisor before making investment decisions.