SRIT India IPO (28 Sep-30 Sep) Analysis
Updated: Oct 4
IPO Analysis | Mainboard (BSE and NSE) | Book Built Issue (Fresh Issue Only) | Regulation 6(1)
Based on Red Herring Prospectus dated September 22, 2026 | Government IT Systems Integration: Healthcare, e Governance and Telecom | Bengaluru, Karnataka
STATUS: RHP FILED | Fresh Issue Only, No OFS | Regulation 6(1), SEBI ICDR | Mainboard, BSE and NSE | Price Band: [TBD] | Bidding: September 28 to 30, 2026 | All Figures in Rs. Lakhs
SRIT India Limited is incorporated under CIN U72200KA1999PLC025692, with its registered and corporate office at SRIT House, No. 113/1B, ITPL Main Road, Kundalahalli, Bengaluru 560037, Karnataka. The website is www.sritindia.com. The promoters are Dr. Nambiar Raghavan Madhusoodan, Prasaktha Vakkiyl Nambiar and Martin Poovakkulam Chacko. Nidhi Hitesh Vaswani is Company Secretary and Compliance Officer.
The company is a 26 year old IT and IT enabled services provider designing, implementing and operating digital platforms for governments and enterprises across three verticals: healthcare (hospital information systems, revenue cycle management, digital health platforms under its RHES suite), electronic governance (e governance platforms, cybersecurity, automated traffic enforcement, billing systems) and telecommunications and broadband (statewide networks, fibre optic infrastructure, last mile connectivity).
It has executed over 103 projects worth Rs.1,23,471.60 Lakhs over the last decade across India and countries including Qatar, UAE, Nigeria, Zambia, Bahrain, Oman and Myanmar, and its delivery processes are CMMI Level 5 appraised. It has recently entered the power utility sector through a transformer monitoring solutions project. The financial year ends March 31.
Key Basics
This is a mainboard book built issue on the BSE and NSE, with NSE as the designated exchange, made under Regulation 6(1) of the SEBI ICDR Regulations, meaning the company meets the standard profitability and net worth track record test. The RHP is dated September 22, 2026. The Price Band and lot size remain undetermined at this stage.
Field | Value |
Document Type | Red Herring Prospectus dated September 22, 2026. Price Band and lot size are [TBD]. |
Platform | Mainboard, BSE and NSE. Designated Stock Exchange: NSE. |
Issue Structure | Fresh Issue only, up to 1,68,00,000 Equity Shares. No Offer for Sale. |
Face Value | Rs.5 per Equity Share |
BRLM | Choice Capital Advisors Private Limited |
Registrar | KFin Technologies Limited |
Bid Dates | Anchor September 25, 2026. Bidding opens September 28, 2026 and closes September 30, 2026. |
What distinguishes this issue is how tender dependent the underlying business is: 89.41% of FY2026 revenue came from government tenders, and the company's own disclosed bid to win ratio was only 13.95% that year. This is a Fresh Issue only, with no promoter or investor exit.
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: modernisation of existing products | 1,285.70 | Redevelopment of software products R Converge, RHES and healthcare insurance offerings, including new AI enabled features. |
Working capital | 12,400.00 | To fund the company's growing order book and receivables cycle in Fiscal 2027 and Fiscal 2028. |
Inorganic growth and general corporate purposes | [TBD] | Combined cap of 35% of Gross Proceeds; unidentified acquisitions capped separately at 25% and general corporate purposes capped separately at 25% of Gross Proceeds. |
Total Net Proceeds | [TBD] | To be finalised once the Issue Price is set. |
The two quantified objects total Rs.13,685.70 Lakhs. The inorganic growth component is entirely unidentified as of the RHP date, meaning a meaningful share of proceeds could go toward acquisitions not yet selected, subject to the disclosed caps. 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 | 44,999.90 | 38,934.70 | 27,108.80 |
Revenue Growth | 15.58% | 43.62% | 78.53% |
EBITDA | 6,477.40 | 4,980.90 | 4,098.50 |
EBITDA Margin | 14.39% | 12.79% | 15.12% |
Profit After Tax | 4,328.90 | 3,360.40 | 2,907.60 |
PAT Margin | 9.62% | 8.63% | 10.73% |
EPS, Basic and Diluted (Rs.) | 9.47 | 7.20 | 5.39 |
Return on Equity | 30.23% | 38.76% | 44.11% |
Return on Capital Employed | 28.79% | 37.42% | 47.52% |
Revenue grew 15.58% in FY2026 to Rs.44,999.90 Lakhs, a slower pace than the exceptional 78.53% jump in FY2024, and revenue has grown at a 28.84% CAGR over the three years. PAT grew 28.84% in FY2026 to Rs.4,328.90 Lakhs.
Both RoE and RoCE have fallen every year even as absolute profit grew, from 44.11% and 47.52% in FY2024 to 30.23% and 28.79% in FY2026, as the equity base has grown faster than earnings. Government tenders were 89.41% of FY2026 revenue, and the top 10 customers were 89.36% of the same year's revenue.
Balance Sheet and Cash Flow
Consolidated (Rs. Lakhs) | FY2026 | FY2025 | FY2024 |
Total Assets | 61,415.50 | 49,663.90 | 42,895.80 |
Total Equity | 19,384.40 | 9,374.20 | 8,109.30 |
Debt to Equity | 0.23x | 0.66x | 0.31x |
Net Cash from Operating Activities | (1,210.10) | 1,796.60 | 3,416.10 |
NAV per Share (Rs.) | 40.71 | - | - |
Order Book | 1,18,282.40 | 1,21,605.50 | 1,47,695.60 |
Operating cash flow turned negative in FY2026, Rs.1,210.10 Lakhs used, reversing positive generation of Rs.1,796.60 Lakhs and Rs.3,416.10 Lakhs in FY2025 and FY2024 respectively, driven by growth in other assets and a swing in trade payables even as reported profit kept growing.
Debt to Equity improved sharply in FY2026 to 0.23x from 0.66x in FY2025, aided by an equity infusion during the year. The Order Book has declined each year shown, from Rs.1,47,695.60 Lakhs in FY2024 to Rs.1,18,282.40 Lakhs in FY2026, even as revenue and profit grew, meaning the pipeline backing future revenue has been shrinking.
How Does It Compare to Peers?
The RHP names five listed peers: Mastek, Railtel Corporation of India, Protean eGov Technologies, Allied Digital Services and Aurionpro Solutions, based on closing prices on NSE as of September 17, 2026. SRIT India's own P/E cannot be shown until the Price Band is set.
Company | EPS (Rs.) | P/E (x) | NAV (Rs.) | RoNW (%) |
SRIT India Limited | 9.47 | [TBD] | 40.71 | 30.23% |
Mastek Limited | 129.50 | 12.59 | 965.11 | 14.81% |
Railtel Corporation of India | 10.79 | 24.03 | 70.47 | 16.25% |
Protean eGov Technologies | 24.70 | 19.80 | 265.23 | 9.69% |
Allied Digital Services | 6.25 | 15.52 | 21.71 | 5.85% |
Aurionpro Solutions Limited | 37.87 | 18.62 | 322.90 | 13.06% |
SRIT India's RoNW of 30.23% is far higher than all five named peers, none of which exceed 17%. The RHP's own industry P/E average of 18.31 spans a range from Mastek's 12.59x to Railtel's 24.03x, both companies with substantially higher NAV per share and larger scale; Allied Digital Services is the closest peer by NAV per share, at Rs.21.71 against SRIT India's Rs.40.71, but carries a far lower RoNW of 5.85%.
Key Risks
• Government tenders accounted for 89.41% of FY2026 revenue, up from 81.84% in FY2024, and the company's own disclosed bid to win ratio was only 13.95% in FY2026, down from 20.00% in FY2025.
• The Order Book has declined every year shown, from Rs.1,47,695.60 Lakhs in FY2024 to Rs.1,18,282.40 Lakhs in FY2026, even as revenue and profit both grew, raising the question of what sustains growth once the existing pipeline is worked through.
• Top 10 customers were 89.36% of FY2026 revenue, and the RHP names only three of them, RailTel Corporation of India, Telecommunications Consultants India and SEEPZ SEZ Authority, withholding the rest for confidentiality.
• Operating cash flow turned negative in FY2026, Rs.1,210.10 Lakhs used, reversing two years of positive generation, even as reported revenue and profit both grew.
• Both RoE and RoCE have fallen every year shown, from 44.11% and 47.52% in FY2024 to 30.23% and 28.79% in FY2026, even as absolute profit kept growing, as the equity base expanded faster than earnings.
• The company is impleaded, as the successful tender bidder rather than a direct party, in ongoing litigation including a writ petition before the Andhra Pradesh High Court challenging a cinema ticketing tender and a since dismissed public interest litigation over a Kerala traffic enforcement project; such third party litigation can still delay or disrupt project execution.
• A substantial share of the Net Proceeds, capped at 35% of Gross Proceeds combined, is earmarked for unidentified inorganic acquisitions and general corporate purposes, meaning investors cannot yet evaluate what will actually be acquired.
• Industry and market data in this RHP comes from a report commissioned and paid for by the company itself from Dun and Bradstreet.
• The company operates internationally in Qatar, UAE, Nigeria, Zambia, Bahrain, Oman and Myanmar, exposing it to foreign exchange, political and cross border execution risk beyond its core Indian government tender business.
• PAT margin has been volatile across the three years shown, from 10.73% in FY2024 to 8.63% in FY2025 back up to 9.62% in FY2026, without a clear consistent trend.
• Government and government owned customers can unilaterally expand project scope, and while the company has been compensated for such changes in the past, recovery of additional costs is not always assured or timely.
Positives to Note
• Revenue grew from Rs.27,108.80 Lakhs in FY2024 to Rs.44,999.90 Lakhs in FY2026, a 28.84% CAGR, and PAT grew from Rs.2,907.60 Lakhs to Rs.4,328.90 Lakhs over the same period, a 22.02% CAGR.
• Debt to Equity improved sharply in FY2026 to 0.23x from 0.66x in FY2025, supported by an equity infusion during the year.
• The company holds CMMI Level 5 process appraisal and ISO 27034 Part 1 (2011), ISO/IEC 27001:2022 and ISO 45001:2018 certifications, credentials that matter directly in government tender pre qualification.
• RoNW of 30.23% in FY2026 is far ahead of all five named listed peers, none of which exceed 17%.
• The company has diversified beyond its three core verticals into artificial intelligence enabled solutions and the power utility sector, including an AI based video analytics project for a national highways authority and a transformer monitoring project for a Karnataka state power generation company.
• The company has an international project track record spanning seven countries, evidence of capability beyond the Indian government tender market that concentrates most of its current revenue.
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