Skytech Infinite Platform IPO (14-18 August) Analysis

IPO Analysis | NSE Emerge | 100% Book Built Issue (Pure Fresh Issue) | Regulation 229(1)

Based on Red Herring Prospectus dated August 9, 2026 | Industrial Automation Control Panel Manufacturing (PCC, MCC, VFD, APFC, PLC Panels) | Bengaluru, Karnataka

STATUS: LIVE RHP, BIDDING OPENS FRIDAY AUGUST 14 AND CLOSES TUESDAY AUGUST 18, 2026

Pure Fresh Issue of up to 29,45,600 Equity Shares | No Offer for Sale | No Listed Comparable Peer Exists | NSE Emerge Platform

PAT Nearly Tripled in FY25 Then Grew a Further 13% in FY26 | Company Itself Flags That This Margin Improvement May Not Be Sustainable

 Skytech Infinite Platform Limited was originally incorporated as Skytech Infinite Platform Private Limited on May 28, 2009, and converted to a public limited company in July 2024. Its CIN is U51506KA2009PLC049970, with its registered and corporate office in Lingarajapuram, Bengaluru, Karnataka. The Promoters are Paramashivam Deiveekan and Suma Deiveekan.

The Company manufactures Automation Control Panels, integrating Programmable Logic Controllers (PLCs), drive systems, switchgear and sensors to streamline industrial automation processes, offering PCC Panels, MCC Panels, VFD Panels, APFC Panels, PLC Panels and Control Desk Panels.

The Company serves customers across Power, Water, Energy, Machine Tools, Infrastructure, Motor Management, Food and Beverages, HVAC, Chemicals and Pharmaceuticals, Automotive and Process industries.

It is an ISO-certified company with more than 15 years of operating history, operating from a 10,000 sq. ft. in-house manufacturing facility, and its proprietary Techno Modular Design panel construction is presented as a differentiator from traditional welded panel manufacturers, supporting flexible configuration and reconfiguration.

The Company has a global footprint extending to Bhutan, Thailand, China, Singapore and the USA, though sales remain majority concentrated in Karnataka.

Revenue grew from Rs.4,412.85 Lakhs in Fiscal 2024 to Rs.5,164.50 Lakhs in Fiscal 2026, while PAT grew dramatically in FY25 (from Rs.135.09 Lakhs to Rs.371.41 Lakhs, up 174.95%) before growing more modestly in FY26 (to Rs.420.47 Lakhs, up 13.21%), with EBITDA margin nearly doubling from 7.00% to 12.87% over the period.

Notably, the Company itself explicitly flags in its own Risk Factors that this recent margin improvement may not be sustainable, discussed further in Section 4.

Key Basics

Particulars	Details
Document Type	Red Herring Prospectus (RHP) dated August 9, 2026, noted as subject to update upon filing with the RoC. This is a live offer: Bid or Issue opens Friday, August 14, 2026 and closes Tuesday, August 18, 2026.
Issue Structure	100% Book Built Issue, Pure Fresh Issue of up to 29,45,600 Equity Shares (no Offer for Sale), of which 1,48,800 shares are reserved for the Market Maker. The Public Issue and Net Issue will constitute 29.99% and 28.47% respectively of post-Issue paid-up capital. Face value Rs.10 per share.
Face Value	Rs.10 per Equity Share.
Promoters	Paramashivam Deiveekan and Suma Deiveekan. The average cost of acquisition of Equity Shares held by the Promoters is disclosed as lower than the Issue Price, a standard SME disclosure item.
Selling Shareholders	Not applicable. This Issue is entirely a Fresh Issue with no Offer for Sale.
Eligibility Route	Regulation 229(1) of the SEBI ICDR Regulations, 2018, as the Company's post-Issue paid-up capital would be less than Rs.10.00 Crore.
Listing Exchange	Emerge Platform of the National Stock Exchange of India (NSE Emerge), with in-principle approval dated January 14, 2026.
Lead Manager	Finshore Management Services Limited.
Registrar	Integrated Registry Management Services Private Limited.
Bid or Issue Dates	Opens: Friday, August 14, 2026. Closes: Tuesday, August 18, 2026.
Listed Peers, One Line	None. The Company states there are no publicly listed companies in India with a business model exclusively similar to its own.

This is a niche industrial automation panel manufacturer with no comparable listed peer, placing it alongside a small number of other companies in this report series where no meaningful benchmark exists.

The most important feature to weigh alongside the Company's recent growth is its own explicit, standalone Risk Factor acknowledging that its improved profit margins may not be sustainable going forward, discussed in detail in Section 4.

How Will the IPO Money Be Used?

Object	Estimated Amount (Rs. Lakhs)	Substantiation
Working capital requirements	1,681.30	A specific rupee figure disclosed with a 2 year deployment schedule: up to Rs.881.30 Lakhs in FY 2026-27 and up to Rs.800.00 Lakhs in FY 2027-28; based on internal management estimates and not independently appraised by any bank or financial institution.
General corporate purposes	[TBD]	Capped at 15% of Gross Proceeds or Rs.10 Crore, whichever is lower. No further breakdown provided, as is standard.

This Issue has no capital expenditure Object: the entire specifically itemised Net Proceeds allocation is working capital, scheduled across 2 fiscal years, consistent with the Company's own disclosed working capital intensity (inventory and trade receivables growth was the specific driver of FY 2026's negative operating cash flow, discussed in Section 4). As with all RHPs at this stage, the fund requirements have not been independently appraised, and the Gross Proceeds, Net Proceeds and General Corporate Purposes figures remain undetermined until the Issue Price is fixed.

Financial Performance

P&L and Key Metrics (Rs. Lakhs unless stated)

Particulars	FY 2026	FY 2025	FY 2024
Revenue from operations	5,164.50	4,514.01	4,412.85
Revenue growth (%)	14.42	2.29	N/A
EBITDA	664.66	612.68	308.72
EBITDA margin (%)	12.87	13.57	7.00
Profit after tax	420.47	371.41	135.09
PAT growth (%)	13.21	174.95	N/A
PAT margin (%)	8.14	8.23	3.06
Return on net worth / RoNW (%)	22.11	25.07	12.17
Return on capital employed (%)	25.45	33.10	17.48
Total net worth	1,901.94	1,481.46	1,110.05
EPS, post-bonus (Rs.)	6.12	5.40	1.96
Debt to equity ratio (times)	0.49	0.36	0.35

Cash Flow Highlights (Rs. Lakhs)

Particulars	FY 2026	FY 2025	FY 2024
Net cash from / (used in) operating activities	(165.61)	80.69	302.38
Net cash used in / (from) investing activities	(6.94)	(42.87)	7.44
Net cash from / (used in) financing activities	318.18	81.56	(247.68)

Independently recomputed, revenue growth accelerated from 2.29% in FY25 to 14.42% in FY26, both reconciling with the RHP's own disclosure. Profitability tells a 2-phase story: PAT jumped 174.95% in FY25 (Rs.135.09 Lakhs to Rs.371.41 Lakhs) as EBITDA margin nearly doubled (7.00% to 13.57%), before growing at a much more modest 13.21% in FY26 as EBITDA margin actually dipped slightly (13.57% to 12.87%). RoNW followed the same pattern, rising sharply to 25.07% in FY25 before easing to 22.11% in FY26.

The Company's own Risk Factor #40 explicitly states that this margin improvement was supported by a combination of factors specific to the period, including favourable changes in business mix and improved cost management, and that the Company cannot assure the same level of margin will be sustained going forward; this is a rare instance in this report series of a company proactively flagging its own recent improvement as potentially non-recurring, and should be weighed seriously given it is a first-party admission rather than an external observation.

Cash flow also deserves attention: operating cash flow was strongly positive in FY 2024 (Rs.302.38 Lakhs) and FY 2025 (Rs.80.69 Lakhs) before turning negative in FY 2026 (Rs.(165.61) Lakhs), driven by a significant increase in inventories and trade receivables as the business scaled.

This is a genuine reversal in cash generation direction in the most recent year, coinciding with the same year the Company's Debt-Equity ratio rose most sharply (0.36 to 0.49 times), and is a different, more cautionary pattern than the 'benign capex-driven' cash flow stories seen in some other reports in this series.

How Does It Compare to Peers?

The RHP states plainly that there are no publicly listed companies in India with a business model exclusively similar to Skytech Infinite Platform's industrial automation control panel manufacturing, and the Company has therefore not included an industry comparison.

This places the Company alongside a small number of others in this report series, such as Aegeus Technologies and Credent Connect N Care, where no meaningful peer benchmark exists. In the absence of a peer table, the Company's own 3 year trend set out in Section 4, including its own explicit caution about margin sustainability, is the primary available reference point for assessing this business.

Key Risks

l The Company itself explicitly flags, as a standalone Risk Factor, that its recent improvement in profit after tax margin (from 3.06% in FY24 to 8.23% in FY25 to 8.14% in FY26) was supported by factors specific to those periods, including favourable business mix changes and improved cost management, and states that the same level of performance may not continue; margins could be affected by raw material price movements, customer demand shifts, competitive pricing pressure and freight cost fluctuations going forward.

l The Company experienced negative operating cash flow in FY 2026 (Rs.(165.61) Lakhs), reversing from positive figures in the 2 prior years, driven by a significant increase in inventories and trade receivables as the business scaled; the Company's Debt-Equity ratio also rose in the same year (0.36 to 0.49 times), and the Company cannot assure investors that net cash flows will be positive in the future.

l The Company depends on a single manufacturing unit and majority sells its products in Karnataka, concentrating both operational and geographic risk; any local disruption or regional economic downturn could disproportionately affect the business.

l The Company's raw material procurement is also geographically concentrated, and the business is substantially dependent on a limited number of key customers and certain key suppliers, without necessarily long-term contractual commitments in either direction.

l There are certain discrepancies noticed in some of the Company's corporate records relating to forms filed with the Registrar of Companies, and there have been instances of delayed filing of returns and depositing of statutory dues with regulatory authorities.

l The Company's Registered Office and factory are located on leased premises, and its business requires high working capital, with no alternate arrangements in place for meeting regular working capital requirements beyond this Offer's proceeds and existing facilities.

l None of the Company's Directors have prior experience serving as directors of a listed entity, and the Company does not have a credit rating, which may restrict access to certain financing options or increase borrowing costs.

l The Company's logo is not registered under the Trade Marks Act, 1999, leaving brand protection incomplete at the time of listing, and industry information in this RHP is derived from third-party sources including IBEF, subject to inherent limitations.

l The Company's lenders hold charges over its movable and immovable properties and book debts in respect of finance availed, and the Company may require further loans during the ordinary course of business.

l The Company, its Directors, Promoters and Group Companies are parties to certain legal proceedings, and the Company carries contingent liabilities that could affect its financial condition if they materialise.

l The Company's operations are manpower intensive and dependent on skilled engineers; competition for skilled employees and rising manpower costs could affect profitability.

l The Company has entered into related party transactions in the past and may continue to do so, and depends significantly on its Promoters and Key Managerial Personnel for continued success.

Positives to Note

l The Company has more than 15 years of operating history in a specialised, technical manufacturing niche, holding ISO certification and a proprietary Techno Modular Design panel construction the Company presents as a genuine differentiator from traditional welded panel manufacturers.

l Despite the moderation in margin growth rate, absolute profitability has grown consistently across all 3 disclosed years, with PAT rising from Rs.135.09 Lakhs to Rs.420.47 Lakhs and EBITDA margin remaining well above the FY24 starting point (12.87% versus 7.00%) even after its FY26 dip.

l The Company has a genuine, if modest, global footprint extending to Bhutan, Thailand, China, Singapore and the USA, indicating some export market validation beyond its core Karnataka base.

l The Company transparently and proactively disclosed the risk that its own recent margin improvement may not be sustainable, a first-party admission that gives investors a clearer, more candid basis for setting expectations than a purely favourable self-presentation would.

l The working capital Object of this Issue is directly aligned with the Company's own disclosed operational need (the same inventory and receivables growth that drove FY26's negative operating cash flow), rather than an unrelated or opportunistic use of proceeds.

l The Company serves a genuinely diversified set of end-use industries (Power, Water, Energy, Machine Tools, Infrastructure, Food and Beverages, HVAC, Chemicals and Pharmaceuticals, Automotive and Process Industries), reducing dependence on any single sector's demand cycle.

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