TNA Solutions IPO (30 Sep-06 Oct) Analysis

SME IPO Analysis  |  BSE SME Platform  |  100% Book Building Offer (Fresh Issue Only)  | Regulation 229(2) and 253(1)

Based on Red Herring Prospectus dated September 24, 2026  |  Home Textile Manufacturing: Sheets, Towels and Top of Bed Products  |  Indore, Madhya Pradesh

STATUS: RHP FILED  |  Fresh Issue Only, No OFS  |  Regulation 229(2) and 253(1)  |  BSE SME Platform  |  Price Band: [TBD]  |  Market Maker Reservation Included  |  Bidding: September 30 to October 6, 2026  |  All Figures in Rs. Lakhs

TNA Solutions Limited traces back to TNA Solutions LLP, formed on September 17, 2021, and converted to a public company in June 2024. The registered office and manufacturing facility are at Survey No. 403/5, Sonvay, Tehsil Mhow, Rao, Indore, Madhya Pradesh 453331. The website is https://tnasolutions.co.in/. The promoters are Ambuj Jain, Ayush Jain and Tanu Jain. Hansa Maloo is Company Secretary and Compliance Officer.

The company manufactures value added home textile products, including bed sheets, duvet sets, pillow shells and covers, towels and top of bed products such as comforters, mattress protectors and quilts, using greige and finished fabric sourced from weavers, mills and processing houses.

Manufacturing is carried out at its Indore facility, covering cutting, stitching, embroidery, finishing, quality assurance, packaging and dispatch. The business is overwhelmingly business to business, 99.60% of FY2026 revenue, supplying global retailers, importers and domestic brands under their own labels, with a small and recently launched direct to consumer channel under its own brand, Ambra Linens, introduced in 2022 with a dedicated website launched in July 2026. The sheeting segment alone was 50.95% of FY2026 revenue. The financial year ends March 31.

Key Basics

This is an SME book built issue on the BSE SME platform, made under Regulation 229(2) and 253(1) of the SEBI ICDR Regulations. The RHP is dated September 24, 2026. The Price Band and lot size remain undetermined at this stage, though the RHP discloses that the Floor Price and Cap Price will be 6.6 and 7 times the face value respectively.

Field	Value
Document Type	Red Herring Prospectus dated September 24, 2026. Price Band and lot size are [TBD].
Platform	BSE SME. Designated Stock Exchange: BSE.
Issue Structure	Fresh Issue only, up to 54,08,000 Equity Shares. No Offer for Sale. The Issue and Net Issue are 26.50% and 25.17% respectively of post Issue paid up capital.
Face Value	Rs.10 per Equity Share
Price Band Formula	Floor Price 6.6 times face value; Cap Price 7 times face value
Market Maker Reservation	2,72,000 Equity Shares, leaving a Net Issue of 51,36,000 shares
BRLM	Credora Partners Private Limited
Registrar	Maashitla Securities Private Limited
Bid Dates	Anchor September 29, 2026. Bidding opens September 30, 2026 and closes October 6, 2026.

What distinguishes this issue is the scale of growth against the cash the business is consuming to fund it: revenue nearly tripled in FY2025 and grew a further 28.35% in FY2026, yet operating cash flow has been negative in all three years shown, and increasingly so in absolute terms. 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: civil construction of new manufacturing unit and machinery	675.56	To be deployed Rs.506.00 Lakhs in FY2027 and Rs.169.56 Lakhs in FY2028.
Working capital	2,000.00	To be deployed Rs.400.00 Lakhs in FY2027 and Rs.1,600.00 Lakhs in FY2028, utilised by December 31, 2027.
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 Issue Price is set.

The two quantified objects total Rs.2,675.56 Lakhs, with 75% of the total earmarked for working capital rather than new capacity. Neither object has been appraised by a bank or financial institution. The company separately discloses a Rs.39.83 Lakhs Madhya Pradesh MSME Promotion Scheme grant for its existing unit, of which Rs.19.91 Lakhs, two of four instalments, had been received as of March 31, 2026.

Financial Performance

Revenue, EBITDA, and Profitability

Rs. Lakhs	FY2026	FY2025	FY2024
Revenue from Operations	10,458.72	8,148.60	3,585.08
Revenue Growth	28.35%	127.29%	NA
EBITDA	1,267.96	1,026.39	513.05
EBITDA Margin	12.12%	12.60%	14.31%
Profit After Tax	958.35	665.80	268.74
PAT Margin	9.16%	8.17%	7.50%
EPS, Basic and Diluted (Rs.)	6.41	4.73	NA
Return on Net Worth	32.60%	47.83%	84.38%
Return on Capital Employed	42.84%	51.65%	89.40%

Revenue grew 28.35% in FY2026 to Rs.10,458.72 Lakhs, following exceptional growth of 127.29% in FY2025, and PAT grew 43.95% in FY2026 to Rs.958.35 Lakhs. EBITDA margin has eased slightly every year, from 14.31% in FY2024 to 12.12% in FY2026, even as PAT margin improved, from 7.50% to 9.16%.

Both RoNW and RoCE have fallen sharply every year despite growing absolute profit, from 84.38% and 89.40% in FY2024 to 32.60% and 42.84% in FY2026, as the equity base expanded rapidly following fresh share issuance.

Customer concentration eased from 95.84% of revenue in FY2024 to 83.82% in FY2026, though it remains high, and the sheeting segment fell from 90.13% to 50.95% of revenue over the same period as pillow pair, towel and top of bed products grew.

Balance Sheet and Cash Flow

Rs. Lakhs	FY2026	FY2025	FY2024
Total Assets	9,421.16	5,747.36	2,433.23
Total Equity	3,593.98	2,285.64	498.35
Debt to Equity	1.29x	1.13x	2.29x
Debt Service Coverage Ratio	0.69x	2.47x	0.22x
Trade Receivables Turnover	3.88x	7.65x	14.81x
Net Cash from Operating Activities	(1,847.27)	(1,725.80)	(856.98)
NAV per Share (Rs.)	119.80	80.20	NA

Operating cash flow has been negative in every year shown and grew more negative in absolute terms, from Rs.856.98 Lakhs used in FY2024 to Rs.1,847.27 Lakhs used in FY2026, as trade receivables and inventory both built up faster than revenue: trade receivables turnover fell from 14.81 times to 3.88 times over the same period.

The Debt Service Coverage Ratio fell to a thin 0.69x in FY2026 from 2.47x in FY2025, meaning earnings available for debt service did not fully cover the company's debt obligations that year. Debt to Equity stood at 1.29x in FY2026, and growth has been funded largely by short term borrowings, which rose from Rs.1,039.06 Lakhs in FY2024 to Rs.4,089.18 Lakhs in FY2026.

How Does It Compare to Peers?

The RHP names two listed peers, VTM Limited and Faze Three Limited, based on closing market prices as of September 22, 2026. TNA Solutions' own P/E cannot be shown until the Price Band is set.

Company	EPS (Rs.)	P/E (x)	NAV (Rs.)	RoNW (%)
TNA Solutions Limited	6.41	[TBD]	119.80	32.60%
VTM Limited	1.11	41.84	31.32	5.18%
Faze Three Limited	11.53	37.35	182.33	6.00%

TNA Solutions' RoNW of 32.60% is far higher than both named peers, neither of which exceeds 6.00%, though both peers are considerably larger by revenue, at Rs.37,198.13 Lakhs and Rs.86,011.00 Lakhs against TNA Solutions' Rs.10,458.72 Lakhs. Faze Three Limited, the closer peer by NAV per share, carries a materially larger and steadier revenue base built over a longer operating history.

Key Risks

• Operating cash flow has been negative in all three years shown and has grown more negative each year, from Rs.856.98 Lakhs used in FY2024 to Rs.1,847.27 Lakhs used in FY2026, as trade receivables and inventory build up faster than revenue growth; trade receivables turnover fell from 14.81 times to 3.88 times over the same period.

• The Debt Service Coverage Ratio fell to 0.69x in FY2026 from 2.47x in FY2025, meaning earnings available for debt service did not fully cover the company's debt obligations in the most recent fiscal year, even as the business continued to grow.

• Growth has been funded largely by short term borrowings, which rose from Rs.1,039.06 Lakhs in FY2024 to Rs.4,089.18 Lakhs in FY2026, and Debt to Equity stood at 1.29x in FY2026.

• Both RoNW and RoCE have fallen sharply every year despite growing absolute profit, from 84.38% and 89.40% in FY2024 to 32.60% and 42.84% in FY2026, as the equity base has expanded rapidly.

• Top 10 customers were 83.82% of FY2026 revenue, and the sheeting segment alone was 50.95%; the company has a very short operating history as a public limited company, converted from an LLP only in June 2024.

• The business is 99.60% business to business, dependent on continued demand from global retailers, importers and domestic brands that sell the company's output under their own labels, with the company's own direct to consumer brand still at an early stage, only 0.40% of FY2026 revenue.

• The two quantified Net Proceeds objects have not been appraised by any bank or financial institution, and 75% of the quantified total is working capital rather than new capacity.

• The company has received only two of four instalments of a Rs.39.83 Lakhs Madhya Pradesh government grant for its existing manufacturing unit as of March 31, 2026, with the remaining instalments still pending.

• Consumer preferences in home textiles change with design trends, fabric choices and pricing, and the company's own risk disclosure notes it must keep pace with these shifts or risk slower sales and higher inventory holding costs.

• The company depends on a single manufacturing facility in Indore, Madhya Pradesh, so any disruption there directly affects the entire business.

• The peer comparison spans companies considerably larger by revenue and with longer operating histories, so investors should weigh TNA Solutions' higher RoNW against its much shorter track record and thinner cash generation.

Positives to Note

• Revenue grew from Rs.3,585.08 Lakhs in FY2024 to Rs.10,458.72 Lakhs in FY2026, and PAT grew from Rs.268.74 Lakhs to Rs.958.35 Lakhs over the same period.

• PAT margin improved every year shown, from 7.50% in FY2024 to 9.16% in FY2026, even as EBITDA margin eased slightly.

• Customer concentration eased from 95.84% of revenue in FY2024 to 83.82% in FY2026, a genuine broadening of the customer base.

• Product diversification is real and measurable: the sheeting segment fell from 90.13% of revenue in FY2024 to 50.95% in FY2026 as pillow pair, towel and top of bed products scaled up.

• RoNW of 32.60% in FY2026 is far ahead of both named listed peers, neither of which exceeds 6.00%.

• The company has launched its own direct to consumer brand, Ambra Linens, with a dedicated website, giving it a channel to improve margin mix over time beyond its core B2B manufacturing model.

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