Sai Urja Indo Ventures IPO (25 Sep-29 Sep) Analysis

Sep 28

7 min read

Updated: Oct 4

SME IPO Analysis | BSE SME Platform | 100% Book Built Offer (Fresh Issue and Offer for Sale) | Regulation 229(1) and 253(1)

Based on Red Herring Prospectus dated September 16, 2026 | Power Plant Operation and Maintenance, Manpower Services | Chandrapur, Maharashtra

Sai Urja Indo Ventures Limited was incorporated as Sai Urja Indo Ventures Private Limited on May 17, 2012 and converted to a public company in February 2025. The registered office is at UG 2 Office Floor, J.K. Complex, Nanaji Nagar Nagpur Road, Chandrapur, Maharashtra 442401, with a corporate office in Nagpur. The website is https://suiv.co.in/. The promoters are Harsh Ajaykumar Mittal and Santosh Ajay Kumar Mittal. Nikesh Subhash Zade is Company Secretary and Compliance Officer.

The company is an ISO 9001:2015 and ISO 45001:2018 certified provider of operation and maintenance (O and M) services for industrial plants, primarily coal based power generation, and also iron and steel and agrochemical plants.

Services span electrical, mechanical and instrumentation maintenance, operation of coal handling and merry go round systems, industrial housekeeping, equipment overhauls, and skilled and unskilled manpower supply.

The company holds electrical work licenses in five states, Maharashtra, Uttar Pradesh, Bihar, Jharkhand and Madhya Pradesh, and has serviced plants in nine states over the last three years, including a 4,760 MW thermal power plant in Central India.

Major clients include Adani Infrastructure Management Services, GMR Warora Energy and Maharashtra State Power Generation Company (MAHAGENCO). As of June 15, 2026, the company had 17 ongoing projects worth Rs.7,165.10 Lakhs pending execution and a further four projects worth Rs.2,536.74 Lakhs yet to commence. The financial year ends March 31.

Key Basics

This is an SME book built issue on the BSE SME platform, made under Regulation 229(1) and 253 of the SEBI ICDR Regulations. The RHP is dated September 16, 2026. The Price Band and lot size remain undetermined at this stage.

Field	Value
Document Type	Red Herring Prospectus dated September 16, 2026. Price Band and lot size are [TBD].
Platform	BSE SME. Designated Stock Exchange: BSE.
Issue Structure	Fresh Issue of up to 18,28,800 Equity Shares plus an Offer for Sale of up to 3,79,200 Equity Shares by the two promoters (1,89,600 shares each). Total Offer up to 22,08,000 shares, 28.91% of post Offer paid up capital.
Face Value	Rs.10 per Equity Share
Promoter WACA	Rs.0.02 per Equity Share for both promoter selling shareholders, as certified by the statutory auditor
Market Maker Reservation	2,16,000 Equity Shares, leaving a Net Offer of 19,92,000 shares, 26.08% of post Offer paid up capital
BRLM	Shannon Advisors Private Limited
Registrar	Maashitla Securities Private Limited
Bid Dates	Anchor September 22, 2026. Bidding opens September 23, 2026 and closes September 25, 2026.

What distinguishes this issue is the promoters' extremely low disclosed cost of acquisition, Rs.0.02 per share, effectively founder shares from incorporation, against whatever Price Band is eventually set; this is a large multiple regardless of price, so the gap itself carries limited information about fair value and mainly reflects long standing ownership rather than a recent purchase.

How Will the IPO Money Be Used?

This is a Fresh Issue plus an Offer for Sale. The company receives no proceeds from the Offer for Sale; those proceeds go to the two promoter selling shareholders.

Object	Amount (Rs. Lakhs)	Details
Working capital	800.00	Against a projected FY2027 net working capital requirement of Rs.1,787.76 Lakhs, up from Rs.1,165.97 Lakhs in FY2026, driven by trade receivables projected to rise to Rs.2,600.00 Lakhs on a 50 to 60 day billing and collection cycle.
Debt repayment	660.00	Repayment or prepayment of certain existing loans.
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 Offer Price is set.

Both quantified objects together total Rs.1,460.00 Lakhs and are working capital and balance sheet related rather than capacity building; there is no capital expenditure object in this Issue, consistent with a labour intensive services business rather than a manufacturer. Neither object has been appraised by a bank or financial institution.

Financial Performance

Revenue, EBITDA, and Profitability

Consolidated (Rs. Lakhs)	FY2026	FY2025	FY2024
Revenue from Operations	8,510.97	6,552.42	4,561.64
EBITDA	651.38	513.93	292.62
EBITDA Margin	7.65%	7.84%	6.41%
Profit After Tax	423.57	313.74	137.19
PAT Margin	4.98%	4.79%	3.01%
EPS, Basic and Diluted (Rs.)	7.29	5.40	2.36
Return on Net Worth	42.44%	50.27%	34.37%
Return on Capital Employed	50.66%	65.43%	52.51%

Revenue grew at a 36.59% CAGR over the three years shown, reaching Rs.8,510.97 Lakhs in FY2026, and PAT more than tripled from Rs.137.19 Lakhs in FY2024 to Rs.423.57 Lakhs in FY2026.

Employee Benefit Expenses, consistent with a manpower intensive services business, were Rs.7,430.51 Lakhs in FY2026, 87.31% of revenue from operations, by far the largest cost line; cost of material consumed was only Rs.228.25 Lakhs the same year.

EBITDA margin dipped slightly in FY2026 to 7.65% from 7.84% in FY2025, and both RoNW and RoCE eased from their FY2025 peaks even as absolute profit grew.

Balance Sheet and Cash Flow

Consolidated (Rs. Lakhs)	FY2026	FY2025	FY2024
Total Assets	2,425.03	2,110.55	1,395.07
Total Equity	1,219.74	776.44	471.75
Debt to Equity	0.59x	0.69x	0.45x
Net Cash from Operating Activities	(94.86)	(210.03)	335.09
NAV per Share (Rs.)	20.99	-	-
Total Clients	7	6 (7 disclosed)	9

Operating cash flow was negative in both FY2025 and FY2026, Rs.210.03 Lakhs and Rs.94.86 Lakhs used respectively, reversing the positive Rs.335.09 Lakhs generated in FY2024, as trade receivables grew from Rs.664.03 Lakhs to Rs.1,137.95 Lakhs before easing slightly to Rs.1,051.50 Lakhs in FY2026.

Debt to Equity rose to 0.69x in FY2025 before easing to 0.59x in FY2026. The company served only 7 total clients in FY2026, down from 9 in FY2024, even as revenue grew substantially, meaning growth has come from deeper penetration of fewer clients rather than a broader base.

How Does It Compare to Peers?

The RHP names only one comparable listed peer, Lakshya Powertech Limited, based on the closing price on NSE as of June 24, 2026, and states plainly that the peer, given the nature and size of the business, is not strictly comparable. Sai Urja's own P/E cannot be shown until the Price Band is set.

Company	EPS (Rs.)	P/E (x)	NAV (Rs.)	RoNW (%)
Sai Urja Indo Ventures Limited	7.29	[TBD]	20.99	42.44%
Lakshya Powertech Limited	9.94	11.27	101.17	9.82%

Sai Urja's RoNW of 42.44% is far higher than Lakshya Powertech's 9.82%, but Lakshya Powertech's revenue of Rs.17,992.95 Lakhs is roughly twice Sai Urja's, and its NAV per share of Rs.101.17 is nearly five times Sai Urja's Rs.20.99. With only one, self acknowledged imperfect peer, this comparison offers a directional read at best.

Key Risks

• The single largest client accounted for 74.77% of FY2026 revenue from operations, up from 49.99% in FY2024, and the top 10 clients (all 7 clients the company had that year) together were 99.97% of FY2026 revenue.

• Public sector undertakings accounted for 92.27% of FY2026 revenue, up from 81.28% in FY2024, exposing the company to PSU tendering, pre qualification and payment timeline risk rather than private sector commercial terms.

• Employee attrition reached 45.01% in FY2026, sharply up from 4.80% in FY2025, as project completions ended employment for staff assigned to those sites; the company itself attributes this to project timing rather than a structural retention problem, but it illustrates how tightly workforce levels track project cycles.

• Operating cash flow was negative in both FY2025 and FY2026, Rs.210.03 Lakhs and Rs.94.86 Lakhs used respectively, as trade receivables grew faster than the business could collect them.

• Employee Benefit Expenses were 87.31% of FY2026 revenue from operations, so the business has very limited room to absorb wage inflation or unionised labour action without compressing already modest margins; the RHP itself notes past instances of employee strikes extending beyond 30 days.

• Only one, self acknowledged imperfect listed peer is available for comparison, of roughly twice Sai Urja's scale, limiting the precision of any valuation benchmark.

• Total clients fell from 9 in FY2024 to 7 in FY2026 even as revenue grew, meaning the customer base has narrowed rather than broadened during the growth period.

• Industry sizing and demand data in this RHP come from a Power Operation and Maintenance Industry report commissioned and paid for by the company itself.

• Debt to Equity, while below 1x, rose to 0.69x in FY2025 before easing to 0.59x in FY2026, alongside the working capital build up this Issue partly funds.

• The company's revenue is concentrated in coal based power plant operations and maintenance; any structural shift away from coal fired generation in India could reduce the addressable market over the long term.

• The Offer for Sale is entirely a promoter exit, at a WACA of Rs.0.02 per share, though the amount involved, 3,79,200 shares, is a modest fraction of the total Offer.

Positives to Note

• Revenue grew at a 36.59% CAGR over the three years shown, and PAT more than tripled from Rs.137.19 Lakhs in FY2024 to Rs.423.57 Lakhs in FY2026.

• The company reports repeat orders equal to 99.65% of revenue from operations and a gross project pipeline of Rs.15,967.04 Lakhs as of June 15, 2026, supporting continued growth without a corresponding need to constantly win new clients from scratch.

• The company holds electrical work licenses in five states and has serviced plants in nine states over the last three years, evidence of genuine geographic reach despite the narrow client count.

• Trade receivable days have stayed broadly stable at 47 to 51 days across the three years shown, despite rapid revenue growth, suggesting collection discipline has kept pace with scale.

• RoNW of 42.44% and RoCE of 50.66% in FY2026 are both well ahead of the one named listed peer.

• The company was recognised in Industry Outlook Magazine's January 2024 list of top 10 Power Plant O and M Services providers, external validation of its position in a niche services segment.

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