Peshwa Wheat IPO (24 Sep-28 Sep) Analysis

Sep 28

7 min read

Updated: Oct 4

SME IPO Analysis | BSE SME Platform | 100% Book Built Issue (Fresh Issue Only) | Regulation 229(2) and 253

Based on Red Herring Prospectus dated September 18, 2026 | Wheat Flour and Grain Processing | Indore, Madhya Pradesh

Peshwa Wheat Limited began as a partnership firm, M/s. Peshwa Wheat, formed on September 13, 2017, and was converted into a public limited company on December 26, 2023. The registered office is at 308 The One, A Block RNT Marg, Near Silver Mall, Tukoganj, Indore 452001, Madhya Pradesh.

The website is www.peshwawheat.com. The promoters are Rahat Ali Saiyed, Sadaf Saiyed, Shehnaj, Mo. Jed and Riyazuddin Qureshi. Ritu Jain is Company Secretary and Compliance Officer. The statutory and peer review auditor is Bakliwal and Co., Chartered Accountants.

The company processes wheat based products, Atta wheat flour, Sortex Wheat and Broken Wheat, along with Gram Flour (Besan) and Maize Flour, and sells wheat bran by product as cattle feed. Manufacturing runs from one integrated facility in Bijepur, Indore, Madhya Pradesh, with an installed capacity of 56,100 MTPA, holding both State and Centre FSSAI licenses and ISO 22000:2018 food safety certification.

Products are sold B2B, mainly in Madhya Pradesh, Maharashtra, Karnataka and Gujarat, through super stockists who distribute to wholesalers and retailers. All raw material, wheat, chana dal and maize kernel, is sourced entirely from within Madhya Pradesh. The financial year ends March 31.

Key Basics

This is an SME book built issue on the BSE SME platform, made under Regulation 229(2) and 253 of the SEBI ICDR Regulations because post issue paid up capital exceeds Rs.1,000.00 Lakhs but does not exceed Rs.2,500.00 Lakhs. The RHP is dated September 18, 2026. The Price Band and lot size remain undetermined at this stage, though bidding is scheduled to open in a few days.

Field	Value
Document Type	Red Herring Prospectus dated September 18, 2026. Price Band and lot size are [TBD].
Platform	BSE SME. Designated Stock Exchange: BSE.
Issue Structure	Fresh Issue only, up to 52,99,200 Equity Shares. No Offer for Sale.
Face Value	Rs.10 per Equity Share
Market Maker Reservation	2,95,200 Equity Shares, leaving a Net Issue of 50,04,000 shares. The Issue and Net Issue are 27.85% and 26.30% respectively of post issue paid up capital.
Recent Share Issuance	6,64,498 Equity Shares issued in FY2024 at Rs.44 per share, including a Rs.34 premium, for Rs.292.37 Lakhs; a bonus issue of 68,64,498 shares was also approved in July 2024
BRLM	Finaax Capital Advisors Private Limited
Registrar	Maashitla Securities Private Limited
Bid Dates	Bidding opens September 24, 2026 and closes September 28, 2026.

What distinguishes this issue is the company's short history as a corporate entity: it operated as a partnership until December 2023, so two of the four years of financial history shown are for the partnership period. A recent share issuance in FY2024 at Rs.44 per share, well below what any book built Price Band is likely to be, gives one data point on the company's own recent valuation.

How Will the IPO Money Be Used?

This is a Fresh Issue only, with no Offer for Sale.

Object	Amount (Rs. Lakhs)	Details
Capital expenditure: plant and machinery for capacity expansion	669.09	Raises installed capacity at the Bijepur facility from 56,100 to 1,02,600 MTPA. Quotation from Haarish Equipments Private Limited; no order placed yet as of the RHP date.
Capital expenditure: civil construction	501.20	Supports the same capacity expansion at the existing site.
Working capital	2,650.00	Against a total estimated FY2028 working capital requirement of Rs.14,323.00 Lakhs, the balance funded by internal accruals and borrowings.
General corporate purposes	[TBD]	Capped at 15% of Gross Proceeds or Rs.1,000.00 Lakhs, whichever is lower.
Total Net Proceeds	[TBD]	To be finalised once the Issue Price is set.

The two capex objects total Rs.1,170.29 Lakhs and expand installed capacity by roughly 83%, from 56,100 to 1,02,600 MTPA, at the company's existing Bijepur site rather than a new location. None of the objects have been appraised by a bank or financial institution, though the company states it has arranged firm finance for at least 75% of project cost as required under SEBI ICDR Regulation 230(1)(e).

Financial Performance

The company converted from a partnership to Peshwa Wheat Limited on December 25, 2023. Figures for the period ended December 25, 2023 and the year ended March 31, 2024 both appear in the RHP; this analysis uses the FY2024 figures, which the RHP itself says should be read as the full year for comparison purposes.

Revenue, EBITDA, and Profitability

Rs. Lakhs	FY2026	FY2025	FY2024
Revenue from Operations	21,593.52	17,153.50	4,379.30
EBITDA	2,273.34	1,804.59	690.52
EBITDA Margin	10.53%	10.52%	15.77%
Profit After Tax	1,580.82	1,183.61	521.06
PAT Margin	7.32%	6.90%	11.90%
EPS, Basic and Diluted (Rs.)	11.51	8.62	4.54
Return on Equity	44.96%	55.47%	45.90%
Return on Capital Employed	33.44%	34.44%	29.24%

Revenue rose from Rs.4,379.30 Lakhs in FY2024 to Rs.17,153.50 Lakhs in FY2025 and Rs.21,593.52 Lakhs in FY2026, growth the RHP attributes to scaling up production and customer additions rather than a specific one time event.

EBITDA margin and PAT margin both fell from their FY2024 levels, 15.77% and 11.90% respectively, to 10.53% and 7.32% in FY2026, even as absolute profit kept growing, consistent with a business adding lower margin volume as it scales. RoE peaked in FY2025 at 55.47% and eased to 44.96% in FY2026.

Customer concentration rose sharply alongside this growth: the top 10 customers were 25.72% of revenue in FY2024 but 70.98% in FY2025 and 71.14% in FY2026, and the single largest customer alone was 18.89% of FY2026 revenue.

Balance Sheet and Cash Flow

Rs. Lakhs	FY2026	FY2025	FY2024
Total Assets	8,059.79	6,594.98	3,117.06
Total Equity	4,306.44	2,725.62	1,542.01
Total Borrowings	2,373.60	2,260.14	792.67
Debt to Equity	0.55x	0.83x	0.51x
Net Cash from Operating Activities	1,564.45	(1,310.47)	(202.41)
NAV per Share (Rs.)	31.37	19.85	12.20

Operating cash flow was negative in FY2024 and FY2025, Rs.202.41 Lakhs and Rs.1,310.47 Lakhs used respectively, as inventories and trade receivables grew faster than payables during the ramp up in scale; it turned strongly positive in FY2026 at Rs.1,564.45 Lakhs. Debt to Equity rose to 0.83x in FY2025 before easing to 0.55x in FY2026. NAV per share nearly tripled over the period, from Rs.12.20 to Rs.31.37.

How Does It Compare to Peers?

The RHP names two listed peers, Megastar Foods Limited and Baba Foods Processing India Limited, based on stock exchange data as of July 31, 2026, and itself notes they may not be exactly comparable in product portfolio or size. Peshwa Wheat's own P/E cannot be shown until the Price Band is set.

Company	EPS (Rs.)	P/E (x)	NAV (Rs.)	RoNW (%)
Peshwa Wheat Limited	11.51	[TBD]	31.37	36.71%
Megastar Foods Limited	8.11	40.93	90.42	8.97%
Baba Foods Processing India	1.89	13.10	40.64	4.63%

Peshwa Wheat's RoNW of 36.71% is far higher than either named peer, both under 9%, though Megastar Foods is roughly two and a half times larger by revenue and both peers carry a materially higher NAV per share. The RHP's industry P/E range of 13.10 to 40.93, an average of 27.02, spans only these two names, so it offers a directional rather than a precise benchmark for the eventual Price Band.

Key Risks

• Top 10 customer concentration jumped from 25.72% of revenue in FY2024 to 70.98% in FY2025 and 71.14% in FY2026, with the single largest customer alone at 18.89% of FY2026 revenue; none of these customer names are disclosed.

• The company sources 100% of its raw material, wheat, chana dal and maize kernel, from within Madhya Pradesh alone, with no established alternative sourcing arrangement in another state as of the RHP date.

• Operating cash flow was negative in both FY2024 and FY2025, Rs.202.41 Lakhs and Rs.1,310.47 Lakhs used respectively, before turning positive in FY2026, as growth outpaced the company's working capital cycle.

• Supplier concentration is also high and has been volatile: the single largest supplier was 54.54% of purchases in FY2025 before falling to 38.48% in FY2026.

• Both EBITDA margin and PAT margin declined from their FY2024 levels even as revenue and absolute profit grew, from 15.77% and 11.90% to 10.53% and 7.32% respectively in FY2026, suggesting the incremental scale carries lower margins.

• The company has less than three full years of operating history as a corporate entity, having converted from a partnership on December 25, 2023, so its track record as Peshwa Wheat Limited itself is short.

• Only two listed peers are named for comparison, and the RHP itself flags that neither is closely comparable in product portfolio or scale.

• Products are agricultural commodity dependent and require controlled storage conditions; the RHP itself flags spoilage, infestation and mycotoxin risk from storage lapses as a named risk factor.

• A recent Rs.44 per share issuance in FY2024, including a Rs.34 premium, is disclosed in the RHP; investors should judge the eventual book built Price Band against this recent internal reference point.

• Revenue is concentrated in four states, Madhya Pradesh, Maharashtra, Karnataka and Gujarat, so a regional demand shock in any of these could disproportionately affect the business.

• Changing consumer preference toward multigrain, high fibre or alternative grain products is named by the RHP itself as a risk to demand for the company's traditional wheat based product line.

Positives to Note

• Revenue grew from Rs.4,379.30 Lakhs in FY2024 to Rs.21,593.52 Lakhs in FY2026, roughly a fivefold increase in two years, alongside PAT growing from Rs.521.06 Lakhs to Rs.1,580.82 Lakhs over the same period.

• Operating cash flow turned strongly positive in FY2026 at Rs.1,564.45 Lakhs, reversing two years of cash outflow as the business scaled.

• Debt to Equity improved from 0.83x in FY2025 to 0.55x in FY2026, even as the balance sheet grew substantially.

• The company holds both State and Centre FSSAI licenses and ISO 22000:2018 food safety certification, and the RHP describes its processing as zero waste and zero discharge through use of by products such as wheat bran for cattle feed.

• RoNW of 36.71% and RoE of 44.96% in FY2026 are both well ahead of either named listed peer.

• The planned capacity expansion, from 56,100 to 1,02,600 MTPA, is being carried out at the company's existing site rather than a new location, reducing execution complexity relative to a greenfield project.

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