Paluck Technologies IPO (28 Aug- 1 Sep) Analysis

Paluck Technologies Limited is a Gurgaon based B2B infrastructure services and equipment leasing company incorporated in 2010. It operates across four interconnected business lines that collectively serve India's infrastructure build out and maintenance ecosystem.

Issue Type Pure Fresh Issue

Platform BSE SME

Issue Open Aug 28  to  Sep 1, 2026

Core Business Lines

Infrastructure equipment leasing and maintenance is the company's largest activity. Paluck owns and leases Diesel Generator (DG) sets and telecom equipment   including Base Transceiver Stations (BTS) and Optical Fibre Cables (OFC)   to infrastructure developers, EPC contractors, and telecom operators. Alongside leasing, it provides scheduled and corrective maintenance services for this equipment. This recurring service model gives the company a predictable revenue base tied to the uptime commitments of its customers.

Commercial vehicle and two wheeler fleet management is the second business segment. Paluck manages large fleets for clients using GPS, IoT sensors, and SAP integrated software to track utilisation, maintenance cycles, and fuel efficiency. This technology enabled service differentiates the company from purely logistics operators and creates switching costs once deeply integrated into a client's operations.

EPC contracting for the telecom sector is the third line of business. Paluck undertakes turnkey civil and electrical contracts for telecom infrastructure rollouts, primarily for large telecom operators and their subcontractors. These projects are typically project based and complement the recurring maintenance revenue stream.

Ready Mix Concrete (RMC) machinery leasing is a newer vertical the company is entering using part of the IPO proceeds. This expansion leverages Paluck's existing expertise in equipment procurement, maintenance, and leasing into the construction sector, diversifying beyond the telecom and infrastructure verticals.

Customer Profile

Paluck's customers are primarily infrastructure developers, EPC contractors, telecom operators (including large private operators), and OEM partners. The company is deeply embedded in India's digital infrastructure rollout, serving clients whose operations depend on continuous uptime of power backup and telecom equipment. The top ten customers account for 44% to 65% of revenue across the periods reviewed, which reflects a concentrated but recurring customer base typical of infrastructure services businesses.

The business is asset intensive   the company owns the equipment it leases   and capital efficient revenue is generated through long term service contracts layered on top of the leasing arrangements. Over the past three years, the company has systematically reduced its debt load while growing revenue, suggesting improving capital discipline.

IPO BASICS

Parameter	Details
Issuer	Paluck Technologies Limited
Issue Type	Book Building   Pure Fresh Issue (no OFS)
Exchange	BSE SME
Face Value	Rs. 10 per share
Issue Size	68,76,000 equity shares
Market Maker Reservation	3,45,000 shares (Giriraj Stock Broking Pvt. Ltd.)
Net Issue to Public	65,31,000 shares
Issue Open / Close	August 28  to  September 1, 2026
Pre Issue Shares	1,39,46,282 shares
Post Issue Shares	2,08,22,282 shares
Promoter Dilution	From 100% to approx. 67% post issue
Price Band	To be determined (disclosed in final prospectus)
BRLM	Horizon Management Private Limited
Registrar	Bigshare Services Pvt. Ltd.
Banker to Company	HDFC Bank Limited
Sponsor Bank (Issue)	Axis Bank Limited

This is a pure fresh issue   there is no Offer for Sale component. Every rupee raised goes directly to the company's balance sheet. Existing promoters are not selling any shares, which is generally viewed positively as it aligns promoter interest with post IPO company performance.

The pre issue promoter shareholding is 100%, dropping to approximately 67% post issue   a dilution of roughly 33 percentage points. Promoters are Navin Katiyar (Managing Director), Praveen Kumar (Executive Director), Sarika Katiyar, and Sumit Kumar Bajaj.

USE OF PROCEEDS

The company intends to deploy the net proceeds across three primary objectives, with any remaining balance allocated to General Corporate Purposes (capped at the lower of 15% of gross proceeds or Rs. 10 crores).

Object	Amount (Rs. Lakhs)	Notes
Purchase of RMC machinery and DG sets	1,000.00	Total project cost Rs. 1,039.67 lakhs; Rs. 39.67 lakhs from internal accruals
Pre payment / repayment of borrowings	310.00	Outstanding loans of Rs. 619 lakhs; balance from internal accruals
Working capital funding	1,000.00	To support expanded operations and growing receivables
General Corporate Purposes	Residual	Max 15% of gross proceeds or Rs. 10 crores, whichever lower

The largest single use   Rs. 1,000 lakhs   is for acquiring Ready Mix Concrete machinery and additional DG sets, which supports the company's new RMC leasing vertical while deepening the existing DG set portfolio. The company plans to fund Rs. 39.67 lakhs of this from internal accruals.

The debt repayment allocation of Rs. 310 lakhs, combined with internal accruals, targets the outstanding borrowings of Rs. 619 lakhs. Paluck's Debt to Equity ratio has already fallen sharply   from 2.66x in FY2023 to just 0.29x as of February 2026   and this allocation will reduce it further toward near zero levels, significantly reducing interest burden going forward.

The working capital allocation of Rs. 1,000 lakhs addresses the receivable cycle, which the company projects will increase from 88 debtor days (February 2026) to approximately 107 days in FY2027 as the business scales. No definitive purchase agreements have been executed for the capital expenditure objects as of the date of the RHP.

FINANCIAL PERFORMANCE

All figures are standalone and in Rs. Lakhs unless noted otherwise. The restated financial statements cover three full fiscal years (FY2023, FY2024, FY2025) and an 11-month stub period ending February 28, 2026. The stub period figures are not annualised and are not directly comparable to full year figures.

An important note on per share metrics: Between FY2025 (year end March 31, 2025) and the stub period (February 28, 2026), the company issued bonus shares that expanded the equity share count approximately 4.5 times   from roughly 30.99 lakh shares to 1,39.46 lakh shares.

As a result, the EPS for FY2025 (Rs. 31.51) and the stub period (Rs. 9.92) are not directly comparable. The EPS decline does not indicate lower profitability; it is purely a denominator effect from bonus shares.

Income Statement Highlights

Particulars (Rs. Lakhs)	FY2023	FY2024	FY2025
Revenue from Operations	9,225.57	10,073.54	10,281.00
EBITDA	1,481.55	1,326.59	1,899.48
EBITDA Margin (%)	16.06%	13.17%	18.48%
Profit After Tax (PAT)	217.83	343.33	963.38
PAT Margin (%)	2.36%	3.41%	9.37%
Basic EPS (Rs.)	7.44	11.73	31.51

Revenue has grown steadily from Rs. 9,225 lakhs in FY2023 to Rs. 10,281 lakhs in FY2025   an aggregate increase of approximately 11.4% over two years, indicating stable, organic growth rather than a high growth trajectory. The character of the business   long term maintenance and leasing contracts   naturally produces this steady state revenue pattern.

What is more notable is the sharp improvement in profitability. PAT grew from Rs. 217.83 lakhs (FY2023) to Rs. 963.38 lakhs (FY2025)   a 342% increase   driven by margin expansion. PAT margin improved from 2.36% to 9.37% over the same period. The EBITDA margin dipped in FY2024 (to 13.17%) due to higher operating costs, before recovering strongly in FY2025 to 18.48%.

Stub Period (11 Months to February 28, 2026)   Not Annualised

In the 11-month stub period, the company recorded revenue of Rs. 10,501.58 lakhs, EBITDA of Rs. 2,392.98 lakhs (margin: 22.79%), and PAT of Rs. 1,383.70 lakhs (margin: 13.18%). These figures, while not directly comparable to a full fiscal year, confirm that the profitability trend visible in FY2025 has continued and strengthened. The stub period Basic EPS is Rs. 9.92, reflecting the post bonus share count of 1,39,46,282 shares.

Balance Sheet Highlights

Particulars (Rs. Lakhs)	FY2024	FY2025	Feb 2026*
Total Equity	1,847.85	3,181.87	4,565.58
Long Term Borrowings	1,372.70	619.28	386.84
Short Term Borrowings	1,632.32	1,129.47	930.22
Trade Receivables	1,579.71	2,248.80	2,752.90
Inventories	1,731.31	2,879.75	2,999.03
Total Assets	5,353.16	6,697.52	6,961.64
NAV per Share (Rs.)		104.07	32.74

(*) Feb 2026 NAV per share of Rs. 32.74 reflects the post bonus share base of 1,39,46,282 shares. FY2025 NAV per share of Rs. 104.07 reflects the pre bonus base of approximately 30.59 lakh shares. These are not directly comparable.

The balance sheet tells a story of rapid deleveraging. Long term borrowings fell from Rs. 1,372.70 lakhs (FY2024) to Rs. 386.84 lakhs (February 2026), while equity grew from Rs. 1,847.85 lakhs to Rs. 4,565.58 lakhs over the same period   reflecting both retained earnings and the bonus share capitalisation. The company has progressively shifted its capital structure away from debt.

Key Performance Ratios

Ratio	FY2023	FY2024	FY2025
Return on Equity (RoNW)	14.48%	18.58%	30.28%
Return on Capital Employed (ROCE)	13.24%	21.97%	37.09%
Debt to Equity Ratio (x)	2.66	1.63	0.55
Interest Coverage Ratio (x)	3.74	4.67	10.15
Current Ratio (x)	1.80	1.80	1.94
Operating Cash Flow (Rs. Lakhs)	718.03	1,189.79	1,085.05

The operating cash flow has been consistently positive across all reported periods   Rs. 718 lakhs (FY2023), Rs. 1,189 lakhs (FY2024), Rs. 1,085 lakhs (FY2025), and Rs. 689 lakhs (stub period to February 2026). This positive OCF track record indicates that the business generates real cash from operations, not just accounting profits. The slight OCF decline in FY2025 relative to FY2024 reflects higher working capital absorption as receivables grew, partially offset by strong PAT improvement.

As of February 2026, the D/E ratio stood at 0.29x   the company is nearly debt free on a combined basis. The interest coverage ratio of 10.15x as of FY2025 indicates that the company can comfortably service its remaining debt obligations.

PEER COMPARISON

The Red Herring Prospectus explicitly states: "There are no listed companies in India that engage in a business similar to that of our Company." Paluck Technologies operates at the intersection of equipment leasing, infrastructure maintenance, fleet management, and EPC contracting   a combination that does not map onto any single listed peer category. No peer comparison table is therefore presented.

In the absence of listed comparables, the table below summarises Paluck's own key metrics as of the most recent available data (February 28, 2026) to enable investors to assess the company on an absolute basis.

Key Metrics (February 28, 2026   Stub Period, Not Annualised)

Metric	Value	Context
Revenue (11 months)	Rs. 10,501.58 lakhs	Stable organic growth over three years
PAT (11 months)	Rs. 1,383.70 lakhs	Margin expanded to 13.18%
EBITDA Margin	22.79%	Improved from 16.06% in FY2023
Return on Equity	30.31%	Strong improvement from 14.48% in FY2023
ROCE	27.43%	High capital efficiency on reduced debt base
Debt to Equity	0.29x	Near debt free; significantly deleveraged
Interest Coverage	8.90x	Comfortable debt servicing capacity
Operating Cash Flow	Rs. 689.75 lakhs (11 months)	Consistently positive across all periods
Order Book	Rs. 20.89 crores	As of RHP date; provides near term revenue visibility

Without a disclosed price band, a P/E or P/BV based valuation is not possible at this stage. Investors would need to assess valuation once the price band is announced and apply multiples from the broader infrastructure services or equipment leasing sector as proxies.

KEY RISKS

Customer Concentration

The top ten customers account for 44% to 65% of revenue across the periods reviewed. The top five customers alone account for 26% to 53% of revenue. This is a material concentration risk: the loss of even one or two major customers   due to contract non renewal, internal restructuring at the client, or competitive pressures   could have a disproportionate impact on revenue and profitability. Infrastructure services clients often renew contracts, but there is no guarantee, particularly as the sector sees consolidation.

Frequent Auditor Changes

Two statutory auditors resigned in quick succession   one in August 2023 and another in December 2025. The current auditor, D Chawla & Associates, was appointed as recently as January 2026, just months before the IPO filing. Frequent auditor changes, particularly when they are resignations rather than planned rotations, can raise questions about the quality of financial reporting and internal controls. Investors should note this pattern carefully. Resignation letters and auditor responses are typically included in the RHP, but the proximity of the appointment to the IPO is a concern.

Bonus Share Expansion and Comparability of Per Share Metrics

Between FY2025 and the February 2026 stub period, the company issued bonus shares that expanded the share count approximately 4.5 times. This makes per share metrics   EPS, NAV per share, and post IPO P/E   non comparable across periods. Investors should base their assessment on absolute financial performance rather than per share trends, and should ensure the price band (when announced) is evaluated against the post bonus share count.

Stub Period Financial Reporting

The most recent financial statements cover an 11-month period ending February 28, 2026, rather than a full fiscal year. This non standard reporting period limits comparability and makes trend analysis more complex. A rising EBITDA margin in the stub period (22.79%) looks positive, but it is not annualised and may reflect seasonal or timing factors.

Working Capital Intensity and Rising Receivables

Trade receivables stand at Rs. 2,752.90 lakhs as of February 2026, representing approximately 88 debtor days. The company projects this will increase to approximately 107 debtor days in FY2027 as business scales. A rising receivable cycle ties up working capital and increases the risk of bad debts if customers delay payments. The Rs. 1,000 lakh working capital allocation from the IPO proceeds is intended to address this, but it does not reduce the underlying receivable risk.

Capital Objects Not Yet Contracted

The RHP notes that the company has not entered into definitive purchase agreements or binding contracts for the equipment it intends to procure with IPO proceeds. The cost estimates are based on quotations and management judgement. There is therefore a risk that actual procurement costs differ from projections, or that intended equipment is unavailable at the expected price or timeline.

No Listed Peer Comparables

Because no directly comparable listed company exists, there is no market anchored benchmark for valuation. This makes it difficult for investors to assess whether the IPO price (once announced) is fair relative to industry peers. Valuation will rely entirely on the company's own absolute metrics and any proxy sector multiples.

KEY POSITIVES

Sharp Profit Growth on Stable Revenue Base

Revenue has grown modestly but steadily from Rs. 9,225 lakhs (FY2023) to Rs. 10,281 lakhs (FY2025)   a CAGR of approximately 5.6%. However, profitability has grown far faster. PAT increased from Rs. 217.83 lakhs to Rs. 963.38 lakhs over the same period   a 342% increase. The PAT margin has expanded from 2.36% to 9.37% (FY2025) and further to 13.18% in the stub period. This divergence between modest revenue growth and sharp profit growth signals genuine operational leverage and improving cost discipline, rather than growth funded by aggressive pricing or capacity additions.

Significant Balance Sheet Deleveraging

The Debt to Equity ratio has fallen from 2.66x in FY2023 to just 0.29x as of February 2026   a near complete elimination of financial leverage. Long term borrowings have been reduced from Rs. 2,358.21 lakhs (FY2023) to Rs. 386.84 lakhs (February 2026). This transformation materially reduces financial risk, lowers the fixed cost of debt service, and creates headroom for future capital allocation. The interest coverage ratio has risen from 3.74x to 10.15x over the same period, confirming improved debt servicing capacity.

Consistently Positive Operating Cash Flow

Paluck has generated positive operating cash flows in every period reviewed: Rs. 718 lakhs (FY2023), Rs. 1,189 lakhs (FY2024), Rs. 1,085 lakhs (FY2025), and Rs. 689 lakhs in the 11-month stub period. For a capital intensive leasing business, consistent positive OCF is a meaningful indicator of genuine cash generation rather than reliance on external financing. It also partially validates the quality of reported earnings.

Improving Return Metrics

Return on Equity (RoNW) has risen from 14.48% (FY2023) to 30.28% (FY2025), and Return on Capital Employed (ROCE) has risen from 13.24% to 37.09% over the same period. These are high returns for an equipment leasing business and reflect the benefit of a largely debt free, efficiently deployed asset base. As of February 2026, ROCE and RoNW remained strong at 27.43% and 30.31% respectively even on the expanded equity base following the bonus share issuance.

Pure Fresh Issue   Proceeds Entirely for Company Growth

There is no Offer for Sale in this IPO. Every share sold is newly issued, and every rupee raised goes to the company for capital expenditure, debt repayment, and working capital. This structure ensures promoter alignment   existing shareholders are not cashing out   and that IPO proceeds directly fund the company's stated growth objectives.

Visible Order Book

The company has an outstanding order book of Rs. 20.89 crores (approximately Rs. 2,089 lakhs) as of the RHP date. While relatively small as a fraction of annual revenue, an active order book provides near term revenue visibility and supports continuity of operations post IPO.

Expansion into New Vertical (RMC Leasing)

The planned entry into Ready Mix Concrete machinery leasing diversifies revenue beyond the telecom and infrastructure verticals. India's construction and infrastructure build out continues at scale, and RMC machinery leasing is a capital light way (once the equipment is procured) to participate in this growth. If executed well, this vertical could add a new recurring revenue stream to the existing maintenance and leasing base.

This report is based on information contained in the Red Herring Prospectus (RHP) filed by Paluck Technologies Limited. It is prepared for informational purposes only and does not constitute investment advice. Investors should read the complete RHP and consult their financial advisors before making investment decisions.

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