Technocraft Ventures IPO (7-11 August) Analysis

IPO Analysis | BSE and NSE Main Board | 100% Book Built Offer (Fresh Issue and Offer for Sale) | Regulation 6(1)

Based on Red Herring Prospectus dated July 30, 2026 | Water and Wastewater EPC and O&M Contractor for Government Authorities | New Delhi / Noida

STATUS: LIVE RHP, ANCHOR BID AUGUST 6, BIDDING OPENS AUGUST 7 AND CLOSES AUGUST 11, 2026

Fresh Issue: up to 95,05,000 Equity Shares | Offer for Sale: up to 23,76,000 Equity Shares by Promoter Entity Kartikey Constructions | Main Board Listing on BSE and NSE

RoNW of 26.51% (FY26) is the Highest Among All 4 Listed Peers | Revenue Concentrated 88.6% in Uttar Pradesh and Rajasthan

 Technocraft Ventures Limited was originally incorporated as Technocraft Construction Private Limited on October 21, 1998, renamed Technocraft Ventures Private Limited in February 2024, and converted to a public limited company on June 11, 2024. Its CIN is U70101DL1998PLC096763, with its registered office in Shakarpur, New Delhi and a corporate office in Noida, Uttar Pradesh. The Promoters are Sanjay Tyagi, Rekha Tyagi, Kartikey Tyagi, Kartikey Constructions (a partnership firm) and Sanjay Tyagi HUF.

The Company is a water and wastewater infrastructure contractor that executes turnkey Engineering, Procurement and Construction (EPC) contracts and provides Operations and Maintenance (O&M) services for Sewage Treatment Plants (STPs), water supply projects and sewerage schemes, almost entirely for government authorities secured through competitive tendering.

As of this RHP, the Company was executing 19 projects, of which 8 were in Uttar Pradesh, with a closing order book of Rs.12,358.97 million as at the end of FY 2026, up from Rs.7,528.80 million a year earlier.

Revenue from Operations grew from Rs.2,261.02 million in Fiscal 2024 to Rs.3,449.96 million in Fiscal 2026, while PAT more than doubled over the same period, from Rs.190.54 million to Rs.433.15 million, with EBITDA margin improving from 15.49% to 20.92% and RoE improving from 20.76% to 26.51%.

Unlike many companies in this report series, Technocraft has been operating cash flow positive in every year of its 3 year track record and has actively reduced its Debt-Equity ratio from 0.87 times to 0.55 times over the same period.

Key Basics

Particulars	Details
Document Type	Red Herring Prospectus (RHP) dated July 30, 2026. This is a live offer: Anchor Investor Bidding Date Thursday, August 6, 2026, Bid or Offer opens Friday, August 7, 2026 and closes Tuesday, August 11, 2026, a somewhat longer runway than several other reports in this series.
Issue Structure	100% Book Built Offer comprising a Fresh Issue of up to 95,05,000 Equity Shares by the Company and an Offer for Sale of up to 23,76,000 Equity Shares by a single Promoter Selling Shareholder, aggregating to up to 1,18,81,000 Equity Shares. Face value Rs.10 per share.
Face Value	Rs.10 per Equity Share.
Promoters	Sanjay Tyagi, Rekha Tyagi, Kartikey Tyagi, Kartikey Constructions (a partnership firm) and Sanjay Tyagi HUF.
Selling Shareholder and WACA	The entire Offer for Sale (up to 23,76,000 shares) is being sold by Kartikey Constructions, a Promoter Group partnership firm, at a Weighted Average Cost of Acquisition of Rs.2.50 per share, a small fraction of the likely Offer Price.
Eligibility Route	Regulation 6(1) of the SEBI ICDR Regulations, 2018, the standard main board profitability-based eligibility route.
Listing Exchange	Main board listing on both BSE Limited and the National Stock Exchange of India (NSE); BSE is the Designated Stock Exchange.
BRLM	Khambatta Securities Limited.
Registrar	Bigshare Services Private Limited.
Bid or Offer Dates	Anchor Bid: Thursday, August 6, 2026. Opens: Friday, August 7, 2026. Closes: Tuesday, August 11, 2026.
Listed Peers, One Line	4 listed peers in the water and environmental infrastructure space (VA Tech Wabag, EMS Limited, Enviro Infra Engineers, Denta Water and Infra Solutions), all larger by revenue, with the Company's RoNW the highest of the 5.

This is a main board listing (BSE and NSE) using the standard Regulation 6(1) profitability route, distinguishing it from the SME-platform issuers that make up most of this report series. The Offer for Sale is entirely conducted by a Promoter Group partnership firm rather than an individual Promoter, at a WACA of Rs.2.50, a structure worth noting alongside the Company's otherwise strong, steadily improving financial profile.

How Will the IPO Money Be Used?

Object	Estimated Amount (Rs. Million)	Substantiation
Funding working capital requirements	1,500.00	A specific rupee figure disclosed, supported by a chartered accountant's certificate of working capital requirements and the Company's current unexecuted order book; the entire amount is scheduled for deployment within FY 2026-27.
General corporate purposes	[TBD]	Capped at 25% of Gross Proceeds of the Fresh Issue. No further breakdown provided, as is standard.

This Issue has no capital expenditure Object: the entire identified use of Net Proceeds is working capital, consistent with the Company's project-based EPC and O&M contracting model, where funding is required to bridge the gap between project mobilisation costs and milestone-based government billing.

The working capital figure is grounded in a chartered accountant's certification and the Company's current order book, and is scheduled for full deployment within the coming fiscal year, a more precise timeline than seen in some other reports in this series.

As with all RHPs at this stage, the fund requirements have not been appraised by any bank, financial institution or independent agency, and the Gross Proceeds, Net Proceeds and General Corporate Purposes figures remain undetermined until the Offer Price is fixed.

Financial Performance

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

Particulars	FY 2026	FY 2025	FY 2024
Revenue from Operations	3,449.96	2,795.64	2,261.02
Total Income	3,469.98	2,810.04	2,272.98
EBITDA	721.75	496.27	350.25
EBITDA margin (%)	20.92	17.75	15.49
Profit after tax	433.15	282.04	190.54
PAT margin (%)	12.56	10.09	8.43
Return on equity (%)	26.51	23.51	20.76
Return on capital employed (%)	27.72	23.05	19.77
Net worth	1,633.76	1,199.83	917.78
NAV per equity share (Rs., consolidated)	54.28	39.86	N/A

Balance Sheet and Cash Flow Highlights (Rs. Million)

Particulars	FY 2026	FY 2025	FY 2024
Net debt	766.64	869.17	789.89
Debt to equity ratio (times)	0.55	0.73	0.87
Net operating cash flows	286.95	216.84	13.99
Trade receivables and inventories (combined)	1,863.02	1,471.17	1,559.28

This is one of the more consistently improving financial profiles in this report series: independently recomputed, revenue grew approximately 23.7% in FY25 and a further 23.4% in FY26, while PAT grew 48.0% and 53.6% respectively over the same 2 years, with margin expansion in every category (EBITDA margin, PAT margin, RoE and RoCE) across all 3 years without a single reversal.

Unlike a number of other companies in this series, Technocraft has been operating cash flow positive in all 3 disclosed fiscal years, and that operating cash flow has itself grown substantially, from a thin Rs.13.99 million in FY 2024 to Rs.286.95 million in FY 2026, alongside an actively de-levering balance sheet (Debt-Equity ratio down from 0.87 times to 0.55 times).

The main balance sheet item to watch is working capital intensity: trade receivables and inventories together made up 79.50% of the Company's non-cash current assets as of FY 2026 (up from 72.93% in FY25), consistent with the government contracting business model where payment cycles from public authorities can be slower than private sector norms. This is the specific dynamic the Fresh Issue's working capital Object is intended to address.

How Does It Compare to Peers?

Company	Revenue FY26 (Rs. Million)	Diluted EPS (Rs.)	P/E (times)	RoNW (%)	NAV/Share (Rs.)
Technocraft Ventures Limited	3,449.96	14.39	N/A (Price TBD)	26.51	54.28
EMS Limited	7,327.47	16.30	24.30	8.62	190.57
VA Tech Wabag Limited	39,442.00	58.72	31.96	14.37	415.11
Enviro Infra Engineers Limited	11,455.96	10.41	20.76	15.22	7.05
Denta Water and Infra Solutions Limited	2,503.79	22.81	14.81	13.27	171.91

The RHP discloses 4 listed peers in the water and environmental infrastructure sector, ranging from roughly 0.7 times to 11.4 times Technocraft's own revenue. On the ratio most comparable across scale differences, RoNW, Technocraft's 26.51% is the highest of all 5 companies in the set, ahead of the next best, Enviro Infra Engineers at 15.22%, and well ahead of the largest peer, VA Tech Wabag, at 14.37%.

The industry average P/E across the disclosed peer set is 22.96 times, with a range of 14.81 to 31.96 times; Technocraft's own P/E cannot yet be calculated pending Offer Price determination.

This is a genuinely favourable comparison for the Company on profitability grounds, though as with any peer set spanning a wide range of company sizes, investors should weigh scale and diversification differences alongside the ratio comparison.

Key Risks

l Revenue is heavily concentrated in Uttar Pradesh and Rajasthan, which together contributed 88.58% of FY 2026 revenue, and 16 of the Company's 18 completed projects, and 8 of 19 currently executing projects, are located in Uttar Pradesh alone; any regional slowdown or policy shift in these 2 states could disproportionately affect the Company.

l The Company is unable to trace certain historical corporate records dating to 1999-2000 and 2000-2001 (including Form 2 return of allotment filings and certain annual returns), and has disclosed erroneous or incomplete statutory filings, including a Form 2 filed erroneously in 2007 and an incorrect DIR-12 filing relating to Mr. Sanjay Tyagi's brief, since-reversed appointment as Chairman in 2025; while no penalties or proceedings have been initiated to date, the Company cannot assure none will arise in future.

l The Company is presently unable to trace the original educational certificates of one Director and Promoter (Rekha Tyagi) and 2 Senior Management Personnel; applications for duplicates have been filed with the relevant universities, but responses remain pending as of this RHP.

l There is a potential and perceivable conflict of interest given Promoter Sanjay Tyagi's prior employment (1990 to 2007) as an Engineer with the Ghaziabad Development Authority (GDA), a period that overlaps with the Company's early road construction contracts secured from GDA in 2003-2004 through open tender; the Company states Mr. Tyagi had no role in awarding or overseeing these contracts and no complaint or inquiry has been raised, but perception risk remains.

l The business is entirely dependent on government contracts secured through competitive tendering, and government contract terms are typically more favourable to the government counterparty than to the Company, with institutional capacity constraints at government and municipal authorities representing an ongoing execution risk outside the Company's control.

l Trade receivables and inventories together represent a very large share of non-cash current assets (79.50% in FY 2026, up from 72.93% in FY25), and the business is working capital intensive with government payment cycles that can be slow, a dynamic the Fresh Issue's sole Object is intended to address.

l There have been multiple instances of delayed statutory filings (MGT-14, CHG-1, DIR-12) with the Registrar of Companies, some dating back to 2011 and 2016 but only filed in July 2026, along with additional filing fees paid as a result.

l The Company has experienced multiple instances of minor delays in filing GST returns (GSTR-3B) across several states and fiscal years from 2017-18 through 2026-27, attributed variously to compliance framework changes and reconciliation processes.

l Certain unspent CSR amounts for past fiscal years have not yet been fully addressed, per the Company's own disclosure.

l The Company's Order Book, while substantial (Rs.12,358.97 million as at FY 2026), may not be a reliable indicator of future revenue or profitability given the potential for delays, modifications or cancellations of individual projects.

l The Company depends on external suppliers for critical inputs and on its in-house engineering and construction teams and Key Managerial Personnel, and carries contingent liabilities that, if they materialise, could affect its financial condition.

l As an infrastructure contractor, the Company is required to furnish bank guarantees as part of its business, and any inability to arrange such guarantees on acceptable terms could constrain its ability to bid for or execute projects.

Positives to Note

l Financial performance has improved consistently across every single metric in every single year of the 3 year track record: revenue, EBITDA margin, PAT margin, RoE, RoCE and operating cash flow all rose from FY 2024 through FY 2026 without a single reversal, an unusually clean growth profile within this report series.

l RoNW of 26.51% in FY 2026 is the highest among all 4 disclosed listed peers, including the much larger VA Tech Wabag Limited (14.37%), suggesting efficient capital use relative to comparable water and environmental infrastructure companies.

l The Company has been operating cash flow positive in every year of its disclosed track record, and that cash flow has grown substantially (from Rs.13.99 million in FY 2024 to Rs.286.95 million in FY 2026), while simultaneously reducing its Debt-Equity ratio from 0.87 times to 0.55 times.

l The Company holds a substantial and growing closing order book (Rs.12,358.97 million as at FY 2026, up from Rs.7,528.80 million a year earlier), providing forward revenue visibility.

l The Company has not faced any instance of contractual termination, invocation of indemnity, project disqualification, cancellation or blacklisting in any state to date, per its own disclosure, despite its concentrated government contracting exposure.

l The working capital Object of this Issue is grounded in a chartered accountant's certification and a specific, near-term (single fiscal year) deployment schedule, rather than an open-ended allocation.

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