Susan Electricals IPO Analysis

SME IPO Analysis  |  BSE SME Platform  |  100% Book Built Offer

Based on Red Herring Prospectus dated June 6, 2026  |  Price Band: To Be Announced  |  Issue opens June 11, 2026

STATUS: Issue Dates: 11-15 June 2026|  Fresh Issue (47.42L shares) + OFS (8.00L shares by promoter Vishal Jain, WAC Nil)  |  BSE SME  |  Ghaziabad, UP  |  Cables and Winding Wires

 Susan Electricals India Limited (SEIL) is a Ghaziabad, Uttar Pradesh-based manufacturer of aluminium and copper electrical winding wires, conductors, and cables. Incorporated in December 2007 as Suvish Insulation Private Limited, renamed Susan Electricals India Private Limited in January 2010, and converted to a public limited company in November 2025, the company has 18 years of operating history under promoter Vishal Jain (22+ years of industry experience) and co-promoter Mahak Jain (spouse).

Product portfolio across two broad segments:

• Cables (Unit II and Unit III, Sahibabad, Ghaziabad): Low Tension (LT) cables including LT Aerial Bunched (AB) cables (up to 1.1 kV), High Tension (HT) cables of specified voltage grades, and Medium Voltage Covered Conductor (MVCC) cables. LT AB cables are used for overhead power distribution, including Last Mile Connectivity (LMC) schemes. HT cables are used for underground power distribution networks. MVCC cables are used as a covered overhead alternative to bare conductors in distribution systems. These products are supplied primarily to state electricity DISCOMs through tender-based procurement.

• Winding Wires and Conductors (Unit I, Ghaziabad): Winding aluminium wires and strips, winding copper wires and strips, and aluminium conductors in various specifications, manufactured per IS standards. Winding wires are used in transformer and motor manufacturing. Conductors are used in overhead distribution. These are supplied to DISCOMs, EPC contractors, and traders.

• Trading and Job Work: Aluminium wire and rod trading contributed 33.69% of FY2026 revenue. Job work services (processing winding wires/strips for customers) contributed 0.54% of FY2026 revenue. Trading is an integral part of the business model, providing working capital velocity and customer relationships alongside manufacturing.

Manufacturing footprint: Three units all in Ghaziabad, Uttar Pradesh. Unit I (AO-43, SSGT Road, Ghaziabad-201009): 3,307.50 tonnes per annum winding wire capacity; 57.23% utilised in FY2026. Unit II (Plot 18/27, Site-4, Sahibabad, Ghaziabad-201010): 6,000 km per annum cables capacity (commenced September 2023); 93.65% utilised in FY2026. Unit III (Plot 18/31, Site-IV, Sahibabad, Ghaziabad-201010): 1,500 km per annum cables capacity (commenced April 2025); 64.13% utilised in FY2026. The IPO capex expands Unit III from 1,500 km to 6,000 km (4x capacity expansion).

Customer mix evolution: The company is actively diversifying from government to private sector. DISCOM revenue (government) declined from 90.55% of revenue (FY2024) to 49.40% (FY2025) to 35.78% (FY2026), while private sector grew from 9.45% to 50.60% to 64.22% over the same period. This diversification is strategic but comes with a notable side effect: repeat customer percentage fell sharply from 89.47% (FY2024) to 84.87% (FY2025) to just 45.09% (FY2026). As the company wins new private sector orders (often project-based), the percentage of returning customers from prior years declines.

Key Basics

This is a Red Herring Prospectus (live document  price band not yet set). The issue opens June 11, 2026 and closes June 15, 2026. Anchor investors bid on June 10, 2026. The offer has two components: a Fresh Issue (company receives proceeds) and an OFS by promoter Vishal Jain (8.00 lakh shares, WAC nil  he acquired these at nil cost via the share restructuring, selling at any issue price generates 100% gain). The company received BSE SME in-principle approval on April 15, 2026.

Document Type	RED HERRING PROSPECTUS dated June 6, 2026. Issue opens June 11, 2026. Closes June 15, 2026. Anchor Investor bidding: June 10, 2026. Price band: TBD.
Issue Structure	Fresh Issue of up to 47,42,000 Equity Shares + OFS of 8,00,000 Equity Shares by Vishal Jain (promoter, WAC nil). Total: 55,42,000 shares. Market Maker Reservation: 4,58,000 shares. Net Offer to Public: 50,84,000 shares.
Post-Issue Shareholding	Issue = 27.26% of post-issue paid-up capital. Net Offer = 25.01% of post-issue capital. Promoters retain approximately 72.74% post-issue.
Face Value	Rs.10 per Equity Share
Price Band	To be announced. RHP states price band will be advertised at least 2 working days before bid opening (by June 9, 2026).
Post-Issue Paid-Up Capital	Approximately 2,03,41,800 Equity Shares (pre-IPO 1,47,99,800 + 47,42,000 fresh issue) + 8,00,000 OFS (no change to capital for OFS).
Promoters	Vishal Jain (MD)  22+ years experience in electrical cables and winding wires industry | Mahak Jain (WTD, spouse)  13+ years experience. Vishal Jain is also the sole OFS seller.
OFS detail	Vishal Jain: up to 8,00,000 shares at WAC Rs.nil. At any positive issue price, 100% of OFS proceeds are gain. This is because shares were restructured at nil effective cost during the company's pre-IPO capital reorganisation.
Listing Exchange	BSE SME Platform. In-principle approval dated April 15, 2026.
BRLM	Seren Capital Private Limited, Mumbai (SEBI Reg: INM000014032). Contact: Akun Goyal / Tripti Pathani.
Registrar	Mudra RTA Ventures Private Limited, New Delhi. Contact: Akshay Tanwar. Email: ipo@mudrarta.com.
Monitoring Agency	Brickwork Ratings India Private Limited (appointed, mandatory as fresh issue exceeds Rs.100 crore threshold  though at SME scale this appears to be voluntarily enhanced governance).
Statutory Auditor	To be confirmed in prospectus  joint auditors appear likely per RHP. The RHP notes restatement adjustments were made for gratuity, bonus provisions, and MSME interest.
Eligible Investors	Regulation 229(2) and 253(1) of Chapter IX SEBI ICDR Regulations 2018 (post-issue capital exceeds Rs.10 crore, meets SME Platform criteria).

OFS context: Vishal Jain's sale of 8 lakh shares at nil WAC means every rupee of OFS proceeds is a realised gain. While this is legally permissible and common in SME IPOs where founders restructured share capital pre-listing, it deserves disclosure scrutiny. The OFS proceeds go entirely to Vishal Jain, not the company.

Fresh Issue proceeds go to the company. OFS proceeds go to Vishal Jain. Three primary uses: capex for Unit III expansion, working capital, and GCP. This is a genuine growth-investment IPO: 24.2% goes to capacity expansion and 58.9% to working capital.

Object	Amount (Rs. lakhs)	Deployment	Details
Capex: Expansion of Unit III (Sahibabad, Ghaziabad)	1,029.49 (from IPO) + 51.47 (internal accruals for contingency)	FY2026-27 (100%: civil Rs.141.91L, machinery Rs.887.58L)	Expand Unit III from 1,500 km to 6,000 km per annum capacity. New 6-33 kV Triple Layer CCV (Catenary Continuous Vulcanization) line (Rs.663.38L landed cost, from Chinese supplier Baicheng Miracle Equipment Machinery Co. Ltd., US$6,50,000 equivalent) plus Rigid Stranding Machine (Rs.224.20L from Tomar Machines, Ghaziabad). Factory shed civil construction: Rs.141.91L (from Willus Infrastructure, Ghaziabad). No purchase orders placed; no definitive vendor agreements. All quotations time-limited.
Working Capital Requirements	3,300.00 (Rs.2,500L in FY27 + Rs.800L in FY28)	FY26-27 and FY27-28	Fund the working capital cycle as revenue scales toward projected Rs.32,000L+ (FY2027P). Covers inventory build (raw material aluminium and copper), trade receivables (projected at 70 days for FY2027), and supplier advance requirements for government DISCOM tender execution. Current net working capital: Rs.8,366 lakhs (FY2026). Projected FY2027: Rs.8,835 lakhs (+Rs.468L incremental, of which Rs.2,500L from IPO with balance from bank facilities).
General Corporate Purposes	Residual up to 15% of gross proceeds	As needed	Ordinary business expenses, strategic initiatives.

Critical observation on working capital: The projected working capital requirement for FY2027 is Rs.8,835 lakhs  of which Rs.5,199 lakhs will come from bank facilities and Rs.2,500 lakhs from IPO proceeds. The working capital already has Rs.6,518 lakhs in short-term bank borrowings (FY2026), and operating cash flow has been negative across all three years.

This means the company is highly dependent on rolling working capital credit lines, and the IPO is partly a substitute for more expensive short-term bank debt. After debt service (finance costs of Rs.654.76 lakhs in FY2026), the profitability improvement from the IPO working capital injection may be partially offset by reduced bank debt, not a net addition to production capacity.

Financial Performance

Note: All figures in Rs. lakhs unless stated. Financial year April to March. Three full years: FY2024, FY2025, FY2026. Restated Financial Statements under Indian GAAP. The company has demonstrated exceptional revenue growth but equally exceptional operating cash outflows  a tension that is the central analytical challenge.

Revenue

Revenue grew at exceptional pace: Rs.10,348.21 lakhs (FY2024) to Rs.13,573.97 lakhs (FY2025, +31.2%) to Rs.26,935.66 lakhs (FY2026, +98.4%). FY2026 nearly doubled in revenue  driven by the addition of Unit III in April 2025, the expansion of Unit II capacity in FY2026, and the shift toward private sector customers (including higher-volume EPC and trading orders). The revenue base at Rs.269 crore (FY2026) is substantial for a BSE SME company.

Profitability

Metric	FY2024 (Rs. L)	FY2025 (Rs. L)	FY2026 (Rs. L)
Revenue from Operations	10,348.21	13,573.97	26,935.66
Revenue Growth %		31.17%	98.44%
Other Income	11.17	31.02	60.81
Total Income	10,359.38	13,605.00	26,996.47
Cost of Materials Consumed	9,177.69	11,725.19	23,457.71
Materials as % of Revenue from Ops	88.68%	86.38%	87.09%
Employee Benefits Expense	421.61	469.25	589.27
Finance Costs	195.57	351.14	654.76
Depreciation	70.06	95.70	152.00
Other Expenses	553.86	643.13	934.09
Total Expenses	10,250.21	12,820.53	24,534.20
Profit Before Tax	109.17	784.46	2,462.27
Tax Expense	33.59	219.36	637.63
Profit After Tax (PAT)	75.58	565.10	1,824.64
EBITDA	363.63	1,200.28	3,208.22
EBITDA Margin %	3.51%	8.84%	11.91%
PAT Margin %	0.73%	4.16%	6.77%
Basic and Diluted EPS (Rs.)	1.11	5.71	11.96
Weighted Average EPS (Rs.)			8.07
RoNW %	12.17%	31.43%	47.42%

The FY2026 financials are impressive: EBITDA expanded from 3.51% to 11.91% (840 bps improvement), PAT grew 24x from FY2024 to FY2026, and EPS grew from Rs.1.11 to Rs.11.96 (10.8x in 2 years). The critical driver is operating leverage: with material costs fixed at approximately 87% of revenue, every additional rupee of revenue above breakeven flows nearly entirely to operating profit. As Unit III came onstream and revenues nearly doubled, the fixed cost base (employees, depreciation, rent) was spread over a much larger revenue base.

Finance costs of Rs.654.76 lakhs (2.43% of revenue) are high in absolute terms but declining as a percentage, reflecting the growing loan book supporting rapid working capital. At the industry peer P/E range of 16.77x to 46.35x (average 31.56x) and FY2026 EPS of Rs.11.96, implied offer price range is Rs.200 to Rs.555, with the midpoint at Rs.378.

Return Ratios

Metric	FY2024	FY2025	FY2026
Return on Net Worth (RoNW) %	12.17%	31.43%	47.42%
Weighted Average RoNW %			36.21%
Return on Equity (RoE) %	15.92%	46.72%	64.64%
Return on Capital Employed (RoCE) %	9.47%	17.46%	29.05%
NAV per Share (Rs.)	6.94	11.94	24.68
Debt-to-Equity (approx.)	3.84x	2.63x	1.74x
Current Ratio (approx.)	0.89x	1.08x	1.21x
Peer P/E Range	Prime Cable: 16.77x	Divine Power: 46.35x	V-Marc: 27.90x
Industry Average P/E			31.56x
At 31.56x on FY26 EPS Rs.11.96			Implied Rs.377
At 16.77x on FY26 EPS Rs.11.96			Implied Rs.201
At 31.56x on WAG EPS Rs.8.07			Implied Rs.255

RoNW at 47.42% in FY2026 is significantly above all three listed peers (Prime Cable 20.14%, Divine Power 20.69%, V-Marc 34.56%). RoE of 64.64% is exceptional  though distorted by the small equity base and high leverage.

The D/E of 1.74x (FY2026, using short-term borrowings) is high but improving. Post-IPO equity injection will reduce D/E significantly. The current ratio of 1.21x (FY2026) indicates working capital just barely comfortable  confirming the need for working capital injection from IPO proceeds.

Balance Sheet

Balance Sheet Item	FY2024 (Rs. L)	FY2025 (Rs. L)	FY2026 (Rs. L)
Total Equity (Net Worth)	621.00	1,798.10	3,847.74
Long-Term Borrowings	179.43	96.91	153.68
Short-Term Borrowings	2,299.75	4,429.95	6,518.02
Total Borrowings	2,479.18	4,526.86	6,671.70
Trade Payables (MSME + Others)	628.31	775.81	1,876.76
Inventories	1,044.38	2,866.30	5,065.72
Trade Receivables	1,302.98	2,505.04	4,630.96
Cash and Bank Balance	35.07	97.63	85.37
Total Current Assets	2,667.25	5,910.09	10,924.97
Total Current Liabilities	2,999.05	5,462.90	8,991.00
Total Assets	3,808.14	7,367.87	13,004.93
PPE (Net)	967.15	1,012.69	1,282.82
Other Non-Current Assets (incl. deposits)	153.55	418.96	753.68

The balance sheet reflects a rapidly growing, heavily leveraged working capital-intensive business. Short-term borrowings grew from Rs.2,300 lakhs (FY2024) to Rs.6,518 lakhs (FY2026)  nearly 3x in 2 years  funding the inventory and receivables explosion. Inventories grew from Rs.1,044 lakhs to Rs.5,066 lakhs (4.8x), and trade receivables from Rs.1,303 lakhs to Rs.4,631 lakhs (3.6x). Cash is minimal (Rs.85 lakhs at FY2026)  the company runs on working capital credit lines.

MSME trade payables at Rs.1,706 lakhs at FY2026 (up from Rs.490 lakhs in FY2024) suggest suppliers are being paid late  though this may be within MSME-specified payment timelines. The RHP discloses that the company has recognised MSME interest provisions, suggesting some MSME payment delays.

Cash Flows

Cash Flow (Rs. lakhs)	FY2024	FY2025	FY2026
Net Cash from Operating Activities	(549.22)	(1,839.33)	(971.42)
Operating Profit before WC Changes	383.24	1,240.30	3,295.01
Working Capital Absorption	(932.46)	(3,079.63)	(4,266.43)
Net Cash from Investing Activities	(456.93)	(406.65)	(755.92)
Net Cash from Financing Activities	1,029.43	2,308.54	1,715.08
Cash at Year End	35.07	97.63	85.37
Finance Costs Paid	(195.57)	(351.14)	(654.76)

This is the defining financial concern. Operating cash flows have been NEGATIVE in all three years: FY2024 (Rs.549 lakhs negative), FY2025 (Rs.1,839 lakhs negative), and FY2026 (Rs.971 lakhs negative). Despite PAT of Rs.1,825 lakhs in FY2026, the company consumed Rs.971 lakhs in operating cash due to the massive working capital build: inventories up Rs.2,199 lakhs and receivables up Rs.2,126 lakhs in FY2026.

In FY2025, the situation was even worse: operating cash outflow of Rs.1,839 lakhs against PAT of Rs.565 lakhs. The entire business expansion has been funded by short-term bank borrowings, not operating cash flows. The IPO working capital injection of Rs.3,300 lakhs is intended to reduce dependence on bank working capital lines and potentially convert the operating cash flow profile  but this depends critically on the working capital cycle tightening (receivable days at 63 in FY2026, projected at 70 in FY2027  which is actually getting worse, not better).

Revenue Composition and Business Mix

Category	FY2024 (Rs. L)	FY2024 %	FY2025 (Rs. L)	FY2025 %	FY2026 (Rs. L)	FY2026 %
Manufacturing: Cables	N/A	N/A	N/A	N/A	N/A	N/A
Manufacturing: Winding Wires and Conductors	N/A	N/A	N/A	N/A	N/A	N/A
Trading (Aluminium wire and rod)	2,709.27	26.18%	1,787.26	13.17%	9,077.86	33.69%
Job Work Services	277.37	2.68%	257.83	1.90%	145.44	0.54%
Total Revenue from Operations	10,348.21	100%	13,573.97	100%	26,935.66	100%
DISCOM (Government) Revenue %	90.55%		49.40%		35.78%
Private Sector Revenue %	9.45%		50.60%		64.22%
Repeat Customer Revenue %	89.47%		84.87%		45.09%
Revenue per State: Sold in FY26	14 states + 1 UT		Broader		Broader

Three important composition trends:

(1) Trading (aluminium wire/rod) jumped to 33.69% of FY2026 revenue from 13.17% in FY2025  this is a lower-margin activity compared to manufacturing and its surge reflects both opportunistic trading and the working capital intensity of the aluminium procurement cycle.

(2) Government (DISCOM) revenue declined from 90.55% to 35.78%, with private sector becoming the majority  this diversification reduces government tender dependency but introduces private sector credit risk (63-day receivables instead of potentially longer DISCOM payment cycles).

(3) The repeat customer percentage of 45.09% in FY2026 vs 89.47% in FY2024 is a concern: almost half of FY2026 revenue came from customers who did not buy in FY2025. While this reflects healthy new customer acquisition, it also means only 45% of revenue is genuinely recurring from year to year.

How Does It Compare to Peers?

The RHP cites three listed peers: Prime Cable Industries Limited (BSE-listed, CMP Rs.112, P/E 16.77x), Divine Power Energy Limited (BSE-listed, CMP Rs.502, P/E 46.35x), and V-Marc India Limited (BSE-listed, CMP Rs.1,143, P/E 27.90x). Industry P/E range: 16.77x to 46.35x, average 31.56x.

Metric	Susan Electricals (FY26)	Prime Cable Industries (FY26)	Divine Power Energy (FY26)	V-Marc India (FY26)
Revenue from Ops (Rs. lakhs)	26,935.66	23,487.68	62,596.02	1,79,730.97
EBITDA (Rs. lakhs)	3,208.22	2,348.10	5,090.96	20,083.08
EBITDA Margin %	11.91%	10.00%	8.13%	11.17%
PAT (Rs. lakhs)	1,824.64	1,223.86	2,670.69	10,005.18
PAT Margin %	6.77%	5.21%	4.27%	5.57%
EPS Basic (Rs.)	11.96	6.68	10.83	40.97
RoNW %	47.42%	20.14%	20.69%	34.56%
P/E Ratio	TBD	16.77x (lowest)	46.35x (highest)	27.90x
NAV per Share (Rs.)	24.68	33.17	51.71	118.55
Implied Price at 31.56x on EPS Rs.11.96	Rs.377
Implied Price at 16.77x on EPS Rs.11.96	Rs.201

Susan Electricals' EBITDA margin (11.91%) and PAT margin (6.77%) are both above all three peers. The RoNW of 47.42% dramatically exceeds the peer set (20-35% range). Revenue scale at Rs.270 crore is broadly comparable to Prime Cable and meaningfully below Divine Power and V-Marc.

At the industry average P/E of 31.56x on FY2026 EPS of Rs.11.96, the implied price is approximately Rs.377. At the lowest peer P/E of 16.77x, it implies Rs.201. The price band will be the key decision metric when announced. The BSE SME listing typically implies a discount to main board peers of 15-25%, so a pricing below the average peer multiple is expected.

Key Risks

• Negative operating cash flows in ALL three reported years  total outflow of Rs.3,360 lakhs vs Rs.2,465 lakhs cumulative PAT: The company generated PAT of Rs.75 lakhs (FY2024), Rs.565 lakhs (FY2025), and Rs.1,825 lakhs (FY2026)  totalling Rs.2,465 lakhs  but consumed Rs.549 lakhs, Rs.1,839 lakhs, and Rs.971 lakhs respectively in operating cash outflows, totalling Rs.3,360 lakhs. This means on a cash basis, the company has consumed more cash from operations than it has earned in profit. The entire business has been funded by short-term borrowings. Unless operating cash flows turn positive post-IPO (dependent on tighter working capital management and slower inventory build), the company will continue to require external funding for growth.

• Short-term borrowings of Rs.6,518 lakhs at FY2026  highly leveraged working capital: The company has Rs.6,518 lakhs in short-term, demand-repayable bank working capital borrowings (cash credit, OD) at FY2026. At finance costs of Rs.654.76 lakhs (FY2026) on total borrowings of Rs.6,672 lakhs, the effective borrowing rate is approximately 9.8%. Any tightening of bank credit lines, covenant breach, or banking sector stress could result in demand repayment that the company cannot meet from its Rs.85 lakh cash balance. The entire business operations would be disrupted.

• Repeat customer percentage collapsed from 89.47% to 45.09% in two years  revenue quality concern: In FY2024, 89.47% of revenue came from customers who also bought in FY2023  highly recurring, stable revenue. By FY2026, only 45.09% of revenue came from customers who also bought in FY2025. This means approximately 55% of FY2026 revenue came from new customers who had not purchased in FY2025. While this reflects successful new customer acquisition, it also raises questions about the sustainability and predictability of the revenue base. If new customer acquisition slows, revenue growth will decelerate significantly.

• Trading at 33.69% of FY2026 revenue  lowers effective margin and increases working capital intensity: Aluminium wire and rod trading surged to Rs.9,077.86 lakhs in FY2026 (33.69% of revenue) from Rs.1,787.26 lakhs in FY2025 (13.17%). Trading carries materially lower margins than manufacturing (typically 1-3% vs 6-8% for manufacturing). If the trading proportion continues to grow, it will mechanically dilute the overall EBITDA margin. Trading also requires proportionally more working capital (inventory and receivables) than manufacturing, adding to the cash flow challenge.

• OFS by Vishal Jain at nil WAC  promoter selling at 100% gain on any positive price: Promoter Vishal Jain is selling 8,00,000 shares at a WAC of Rs.nil. Every rupee received is a realised gain. While this represents only 8 lakh of the 55.42 lakh total shares offered, it signals partial promoter liquidity realisation at the time of IPO  before the company has fully demonstrated its ability to sustain its FY2026 profit trajectory.

• Working capital projections assume 70-day receivable days in FY2027 vs 63 days in FY2026  worsening, not improving: The company's own working capital projections (in the Objects section) assume trade receivable days of 70 days in FY2027 and FY2028, compared to 63 days in FY2026. This means the company expects receivables to grow even faster than revenue, requiring more working capital than a receivables-improvement scenario. If actual receivables stay at 63 days or better, the IPO working capital requirement would be lower; if they worsen toward 70 days, it confirms the trend.

• Chinese machinery supplier for CCV line expansion  no prior relationship, no definitive agreement: The key machinery for Unit III expansion (Rs.663 lakhs of the Rs.887 lakh machinery budget) is to be procured from Baicheng Miracle Equipment Machinery Co. Ltd., China. No purchase order placed, no definitive agreement signed, quotation valid 90 days from May 20, 2026 (expired by late August 2026). By the time IPO proceeds are available, quotation may need renegotiation. Foreign exchange risk: the machinery is USD-denominated (US$6,50,000 at Rs.95.44/USD); any INR depreciation increases cost.

• Winding wire capacity utilisation at only 57.23% (Unit I)  declining from 84.41% in FY2024: Unit I (winding wire manufacturing) utilisation fell from 84.41% in FY2024 to 55.00% in FY2025 and 57.23% in FY2026. This underutilisation reflects the shift in business mix toward cables and trading. Fixed costs of Unit I are being absorbed over declining volumes, pressuring per-unit margins in the winding wire segment.

• Material cost at 87% of revenue  minimal margin for error on commodity pricing: Aluminium and copper are the dominant raw materials, and their prices are linked to global commodity markets. Material costs at Rs.23,458 lakhs on revenue of Rs.26,936 lakhs (87.09%) leave minimal headroom. A 2% increase in raw material prices (without corresponding price increases to customers) would reduce PAT by approximately Rs.469 lakhs  26% of FY2026 PAT.

• MSME interest provisions and late payment disclosures: The company recognised provisions for interest under MSMED Act (Rs.0.75 lakhs in FY2026, down from Rs.4.07 lakhs in FY2025), suggesting some MSME supplier payments were delayed. MSME-registered vendors (comprising Rs.1,706 lakhs of payables at FY2026) have statutory rights to seek interest on late payments; any escalation could result in additional interest charges.

• Government DISCOM customer concentration risk  still 36% of revenue: Despite diversification, DISCOMs remain 35.78% of FY2026 revenue. DISCOM payments are often delayed in India (6-18 months), contributing to the elevated trade receivable days. Any budget constraints, tender delays, or policy changes affecting DISCOM procurement would directly impact revenue.

Positives

• Revenue doubled in FY2026: Rs.13,574 lakhs to Rs.26,936 lakhs (+98.4%)  genuine capacity and market expansion: The near-doubling of revenue in one year reflects Unit III coming onstream, growing private sector penetration, and effective execution of DISCOM tenders. The cable segment (Unit II at 93.65% utilisation) is operating at near-full capacity, validating genuine demand.

• EBITDA margin improving consistently: 3.51% (FY2024) to 8.84% (FY2025) to 11.91% (FY2026)  840 bps improvement in 2 years: The operating leverage is real. As revenue scales, fixed costs dilute and EBITDA margins expand. At Rs.270 crore revenue, EBITDA of Rs.32 crore is meaningful and compares well with all three listed peers.

• PAT grew 24x: Rs.75.58 lakhs (FY2024) to Rs.1,824.64 lakhs (FY2026) with EPS from Rs.1.11 to Rs.11.96: This earnings trajectory is exceptional. The FY2026 EPS of Rs.11.96 on a base of 1.47 crore shares represents strong earnings per unit of capital.

• RoNW of 47.42% and RoE of 64.64%  significantly above all three listed peers: Return metrics substantially outperform the peer set (best peer: V-Marc at 34.56%). This reflects the combination of high leverage (magnifying equity returns) and genuine operational improvement.

• Unit II at 93.65% capacity utilisation  near full, proving demand and execution: The cable manufacturing unit (Unit II) being at 93.65% utilisation validates both the market demand and SEIL's execution capability. The IPO expansion of Unit III to 6,000 km (4x) is backed by demonstrated ability to fill capacity.

• Geographic diversification: 14 states + 1 UT in FY2026  growing national footprint: Supplying across UP, MP, Haryana, Rajasthan, Telangana, Karnataka and more demonstrates the ability to execute supply contracts beyond the home market. Government tender participation across multiple states reduces revenue concentration.

• ISO 9001:2015, ISO 45001:2018, ISO 14001:2015  prerequisite certifications for government tenders: These three certifications are prerequisites for DISCOM tender participation and provide quality credentials for industrial customers. Combined with BIS certification (IS 694, IS 1554, IS 7098), these create genuine barriers to entry for new competitors.

• Brickwork Ratings as monitoring agency  enhanced governance for an SME IPO: The voluntary appointment of Brickwork Ratings as monitoring agency adds external oversight of fund deployment. Combined with the RHP's disclosure of restatement adjustments (showing accounting normalisation pre-IPO), governance appears to be improving.

Analysis based on RHP dated June 6, 2026  |  Restated Financial Statements (Indian GAAP)  |  Issue opens June 11, 2026  |  All figures in Rs. lakhs unless stated