Maharaja & Speedex India IPO (10 Sep-15 Sep) Analysis

Maharaja and Speedex India Limited is a Delhi based drinkware manufacturing and distribution company incorporated in February 2006, originally as Maharaja Cookers Private Limited.

The company designs, manufactures, brands, and markets stainless steel bottles and allied drinkware products, catering to both retail consumers and institutional customers across India. Its branded consumer offerings are marketed under the Speedex and Dewdrop labels.

The company operates through an integrated model after acquiring Dewdrop Bottles Private Limited in January 2025, which gave it in house manufacturing capabilities. Prior to this acquisition, the company was entirely dependent on third party outsourcing for its products (100% outsourced trading in FY2024). As of FY2026, approximately 88.85% of revenue is generated from in house manufactured goods, with the remaining 11.15% from outsourced trading.

Product Portfolio

The company offers a diversified range of stainless steel consumer products across multiple price points and customer segments, including:

Product Category	Description
Single Wall and Double Wall SS Bottles	Everyday use bottles for home, office and school; core product line sold under retail and institutional channels
Vacuum Insulated Bottles	Enhanced hot and cold temperature retention; caters to lifestyle and functional use cases
Feeding Bottles	Stainless steel feeding bottles for infants and children
Tumblers, Shakers and Travel Mugs	Fitness, travel and on the go consumption products targeting lifestyle oriented consumers
Customised SS Products (OEM and Private Label)	Corporate bulk orders, branded merchandise, private labelling and gifting solutions based on customer specifications

Manufacturing Infrastructure

Manufacturing operations are conducted through the wholly owned subsidiary Dewdrop Bottles Private Limited at two facilities in Sonipat, Haryana. Unit I at Kundli spans 48,454 sq. ft. and serves as the primary production facility. Unit II at Barota spans 85,000 sq. ft., of which 30,000 sq. ft. is subleased to the parent company.

The current installed capacity stands at 62,82,000 bottles per annum, with actual production of 42,58,630 units in FY2026 (approx. 88.41% utilisation on incremental capacity basis). The IPO proceeds include funding to add two single wall production lines and one double wall production line, which will expand capacity to 90,48,000 bottles per annum.

Customer Segments

The company serves four primary customer segments: retail consumers (mass, premium and lifestyle categories) through offline and online channels; B2B institutional and corporate customers for bulk and gifting orders; OEM clients who outsource manufacturing and packaging operations; and online digital sales customers through e commerce platforms. Revenue from the top 10 customers contributed Rs. 5,973.61 Lakhs (48.70% of revenue) in FY2026, reflecting moderate customer concentration.

IPO BASICS

Parameter	Details
Exchange	BSE SME Platform
Issue Type	100% Book Built Issue
Total Issue Size	Up to 43,08,000 equity shares (face value Rs. 10 each)
Fresh Issue	Up to 34,46,400 equity shares
Offer for Sale (OFS)	Up to 8,61,600 equity shares (4,30,800 by Rakesh Kumar Aggarwal and 4,30,800 by Akash Aggarwal)
Market Maker Reservation	2,16,000 equity shares
Net Issue to Public	40,92,000 equity shares
Price Band	To be announced
Issue Opens	September 10, 2026
Issue Closes	September 15, 2026
Anchor Investor Date	September 09, 2026
Pre-IPO Shares Outstanding	1,28,98,740 shares
Face Value	Rs. 10 per share
BRLM	Choice Capital Advisors Private Limited
Registrar	Maashitla Securities Private Limited
ISIN	INE0SVD01012

USE OF PROCEEDS

The Net Proceeds from the Fresh Issue will be deployed towards three primary objectives. The OFS proceeds will go entirely to the selling shareholders and will not be available to the company.

Purpose	Amount (Rs. Lakhs)
Repayment of borrowings (Company and Dewdrop subsidiary from ICICI Bank)	2,410.43
Capex for plant and machinery at Dewdrop's manufacturing facility (Sonipat)	2,141.58
General Corporate Purposes	Balance (up to 15% of gross proceeds or Rs. 1,000 Lakhs, whichever is lower)

Debt Repayment (Rs. 2,410.43 Lakhs)

The proceeds will be used to repay outstanding cash credit and overdraft facilities with ICICI Bank: Rs. 485.20 Lakhs against Dewdrop Bottles' cash credit facility and Rs. 1,925.23 Lakhs against Maharaja and Speedex India Limited's cash credit and overdraft account. This will reduce total finance costs and strengthen the consolidated balance sheet.

Capacity Expansion (Rs. 2,141.58 Lakhs)

The capex will fund procurement of machinery from Shantou Jackson Intelligent Machinery Co. Ltd. (China) for two additional single wall production lines and one double wall production line at Dewdrop's Sonipat facility. Post expansion, installed capacity will increase to 90,48,000 bottles per annum from the current 62,82,000 bottles, representing an increase of approximately 44%.

Key equipment includes double stations servo straight circular welding machines, getter welding machines, vacuum machines, servo screwing machines, semi auto powder coating lines and electrolysis machines.

FINANCIAL PERFORMANCE

The financial data below is based on Restated Consolidated Financial Statements as certified by M/s APV and Associates, Chartered Accountants.

Profit and Loss Summary (Rs. Lakhs)

Particulars	FY2024	FY2025	FY2026
Revenue from Operations	6,132.33	9,350.81	12,265.38
Total Income	6,140.85	9,360.35	12,274.20
EBITDA	290.04	1,060.97	2,252.33
EBITDA Margin (%)	4.73%	11.35%	18.36%
Finance Costs	106.55	203.69	156.02
Depreciation	42.59	119.91	193.03
Profit Before Tax	144.58	748.97	1,919.25
PAT	107.85	556.55	1,534.19
PAT Margin (%)	1.76%	5.95%	12.51%
EPS Basic (Rs.)	0.89	4.49	11.89

Balance Sheet Highlights (Rs. Lakhs)

Particulars	FY2024	FY2025	FY2026
Share Capital	1.03	1.07	1,289.87
Net Worth (Restated)	496.79	1,352.05	2,866.24
Long Term Borrowings	469.08	712.37	396.81
Short Term Borrowings	1,141.77	1,091.29	2,269.52
Total Assets	2,693.53	4,767.37	8,197.57
Inventories	1,244.25	2,035.93	3,617.49
Trade Receivables	691.39	1,253.56	1,934.96
Cash and Cash Equivalents	38.20	117.99	46.42

Key Financial Ratios

Ratio	FY2024	FY2025	FY2026
Return on Net Worth (%)	31.57%	68.03%	80.47%
Return on Capital Employed (%)	18.88%	42.22%	54.60%
Net Working Capital Days	98	92	116
NAV per Share (Rs.)	4.11	9.19	20.73

Financial Analysis

Maharaja and Speedex India has demonstrated strong revenue growth over the three year period, with consolidated revenue rising from Rs. 6,132.33 Lakhs in FY2024 to Rs. 12,265.38 Lakhs in FY2026, representing a two year CAGR of approximately 41.5%. A key inflection point was the acquisition of Dewdrop Bottles in January 2025, which shifted the business from a pure trading model to an integrated manufacturing platform. This structural change is clearly visible in the margin trajectory: EBITDA margin expanded from 4.73% in FY2024 to 18.36% in FY2026, and PAT margin improved from 1.76% to 12.51% over the same period.

The share capital increase from Rs. 1.07 Lakhs in FY2025 to Rs. 1,289.87 Lakhs in FY2026 reflects pre IPO equity restructuring. Net worth grew sharply to Rs. 2,866.24 Lakhs in FY2026. Short term borrowings increased to Rs. 2,269.52 Lakhs in FY2026, primarily driven by working capital requirements tied to higher inventory levels (Net Working Capital Days increased from 92 to 116 days). The debt repayment objective of the IPO should help moderate this working capital burden.

PEER COMPARISON

The company has identified Borosil Limited and Cello World Limited as listed industry peers. These are larger, diversified consumer ware companies and are not directly comparable, as Maharaja and Speedex is primarily a stainless steel drinkware manufacturer. The peer data below is based on FY2026 financials (consolidated basis, sourced as of August 14, 2026).

Company	Revenue (Rs. Lakhs)	EPS (Rs.)	P/E (x)	RoNW (%)	NAV (Rs.)
Maharaja and Speedex India Limited	12,265.38	11.89	To be announced	80.47%	20.73
Borosil Limited	1,19,591.63	6.24	38.23	9.30%	74.12
Cello World Limited	2,32,370.79	14.70	25.69	14.35%	101.62
Industry P/E Average			31.96

While the listed peers are substantially larger in revenue scale, Maharaja and Speedex India's FY2026 RoNW of 80.47% significantly exceeds both Borosil (9.30%) and Cello World (14.35%), reflecting the high asset turnover and improving profitability of its growing integrated model.

The EBITDA margin of 18.36% is also superior to Borosil's 16.59% and compares with Cello World's 22.65%. The price to earnings ratio for the IPO will be determined based on the final price band; the industry average P/E of 31.96x (range: 25.69x to 38.23x) provides context for valuations at listing.

KEY RISKS

Manufacturing Concentration and Short Track Record

The company's entire manufacturing capability resides in its subsidiary Dewdrop Bottles Private Limited, which was acquired only in January 2025. Prior to this, the company operated as a pure trading entity with no manufacturing facilities. This relatively short integrated manufacturing track record (barely one full fiscal year as a manufacturing entity) introduces execution and operational risks, including dependence on the subsidiary's management, machinery performance, and regulatory compliances at its Sonipat facilities.

Customer and Revenue Concentration

The top 10 customers contributed 48.70% of revenues in FY2026 (Rs. 5,973.61 Lakhs), with a gradual improvement from 46.12% in FY2024. However, the OEM segment accounts for 54.87% of revenue, making the company reliant on third party brand relationships that may not be sustained at the same scale.

Raw Material and Commodity Price Volatility

Stainless steel coil and nickel prices are the primary raw material inputs for the company's products. Prices of these commodities are subject to global supply conditions, import duties, and foreign exchange movements. Cost of raw materials consumed stood at Rs. 5,341.14 Lakhs in FY2026, representing the largest single cost component, and any adverse movement in input prices could compress margins significantly.

Working Capital Intensity

Net Working Capital Days increased from 92 days in FY2025 to 116 days in FY2026, and inventories grew to Rs. 3,617.49 Lakhs in FY2026. The significant increase in short term borrowings to Rs. 2,269.52 Lakhs reflects working capital financing needs. While the IPO debt repayment will partially address this, sustaining efficient working capital management as revenues scale will remain critical.

Competitive Intensity

The stainless steel drinkware market is fragmented, with competition from large organised brands such as Milton and Cello, as well as a substantial unorganised sector that competes aggressively on price. The company's entry into premium branded segments through Speedex and Dewdrop labels faces competition from established consumer brands with deeper distribution and higher brand recall.

Promoter Shareholding and OFS

The OFS component (8,61,600 shares) involves selling by two promoters, Rakesh Kumar Aggarwal and Akash Aggarwal. Post IPO, promoter shareholding will reduce from 87.68%, which while reducing lock in risk, also reflects promoter monetisation at the IPO stage.

KEY POSITIVES

Rapid Revenue Scaling and Margin Expansion

Revenue has grown from Rs. 6,132.33 Lakhs in FY2024 to Rs. 12,265.38 Lakhs in FY2026, a near doubling in two years. More significantly, EBITDA margin has expanded from 4.73% to 18.36% and PAT margin from 1.76% to 12.51% over the same period, demonstrating the strong operating leverage from the transition to integrated manufacturing.

Integrated Manufacturing Platform Post Acquisition

The acquisition of Dewdrop Bottles has transformed the company from a trading entity into a vertically integrated manufacturer. In house manufacturing (88.85% of FY2026 revenue) enables better cost control, quality assurance, production scheduling and customisation capability. The planned capacity expansion to 90,48,000 bottles per annum will further enhance scale advantages and OEM servicing ability.

Strong Return Ratios

Return on Net Worth stood at 80.47% in FY2026, reflecting highly efficient use of shareholder equity. Return on Capital Employed was 54.60%, indicating strong operational profitability. These ratios compare favourably against listed peers (Borosil: RoNW 9.30%, Cello World: RoNW 14.35%), though the base effect of a smaller equity base should be considered.

Diversified Revenue Channels and Product Mix

The company serves both B2B (OEM and corporate) and B2C (branded retail) segments, reducing dependence on any single channel. Online sales have grown from a negligible 0.07% in FY2024 to 9.91% in FY2026, reflecting successful e commerce channel development. The branded business (Speedex and Dewdrop) represents 41.81% of revenue in FY2026, up from 43.65% in FY2024, providing a foundation for brand equity building alongside OEM revenues.

IPO Proceeds Towards Strategic Priorities

The use of IPO proceeds is clearly aligned with business priorities: debt repayment (Rs. 2,410.43 Lakhs) will strengthen the balance sheet by reducing finance costs and improving net worth, while the manufacturing capex (Rs. 2,141.58 Lakhs) will directly expand production capacity to support the next phase of revenue growth. Both objectives address identifiable constraints in the current business model.

Experienced Promoter Group

The founding promoter Rakesh Kumar Aggarwal (Chairman and Managing Director) has been associated with the business since its incorporation in 2006, spanning over two decades in the drinkware and stainless steel consumer products trade. The management team includes Akash Aggarwal as CEO and Director, and Ankit Bansal as CFO, providing continuity of leadership across the transition to a manufacturing led model.