Acme India Industries SME IPO

Strengths · 7

• 01Revenue grew 26% in FY2026, from Rs 213.45 crore to Rs 267.89 crore, and profit grew 48%, from Rs 16.46 crore to Rs 24.36 crore.
• 02EBITDA rose from Rs 28.76 crore in FY2025 to Rs 39.82 crore in FY2026, an EBITDA margin of 15.10%.
• 03Return on net worth is 23.52% and return on capital employed is 23.20%.
• 04Net worth has nearly tripled in two years, from Rs 35.63 crore in FY2024 to Rs 103.55 crore in FY2026.
• 05There is a long record of delivery, with 1,610 coaches furnished, 1,888 coaches refurbished and 10,948 toilet upgrades completed as on 30 June 2026.
• 06It works across 16 railway zones from five units, including the Sonipat plant of over 92,000 square feet with in-house testing, and is ISO 9001:2015 and ISO 15085 certified.
• 07Rs 41 crore of the issue repays borrowings and Rs 38 crore funds working capital, which should bring down interest cost on borrowing of Rs 85.18 crore.

Risks · 10

• 01The two return figures do not agree. Return on equity is shown as 30.65% while return on net worth is shown as 23.52% for the same year.
• 02Profit is not on a steady path. Profit after tax was Rs 19.21 crore in FY2024, fell to Rs 16.46 crore in FY2025 and then rose to Rs 24.36 crore in FY2026, on revenue that was flat across the first two of those years.
• 03Rs 41 crore of the Rs 121.69 crore issue repays borrowings, a third of the issue that does not add to the business.
• 04Borrowing is Rs 85.18 crore against a net worth of Rs 103.55 crore, a debt to equity ratio of 0.82, and it has risen every year.
• 05Almost all the work comes from Indian Railways through tenders on the IREPS portal, where rates are set by the buyer and a lost tender takes the order with it.
• 06The profit margin is 9.24%, which leaves little room on a fixed-price tender if material costs rise mid-contract.
• 07The company has only 43 employees on its payroll against revenue of Rs 267.89 crore, so delivery depends heavily on contract labour and outside vendors.
• 08The company itself was incorporated only in December 2021, so the listed entity has a short financial record even though the business dates back further.
• 09This is a fresh issue combined with an offer for sale, so a part of the money goes to the selling shareholders, and promoter holding falls from 88.19% to 64.46%.
• 10This is an SME issue. One lot is 600 shares, which is about Rs 1.18 lakh at the upper band of Rs 196, and SME shares usually trade in low volume after listing.

Acme India Industries Limited was incorporated in December 2021 and works in the Indian railway rolling stock sector, fitting out the inside of railway coaches.

It provides turnkey furnishing for new coaches, refurbishment, upgradation and conversion of old coaches, and modernisation of toilets. Its products include Braille signage, FRP products, sanitary ware, epoxy flooring, decorative glass FRP, toilet and compartment doors, seats and berths, fire barrier coatings and hygiene products. Since 2017 it has completed 28 turnkey furnishing projects covering 1,610 coaches, refurbished and upgraded 1,888 coaches and completed 10,948 toilet upgrades, as on 30 June 2026.

It works across 16 railway zones and has three production units and two mid-life rehabilitation units. The main plant at Sonipat in Haryana is spread over more than 92,000 square feet and has its own laboratory and testing facilities. Work is executed at the Modern Coach Factory in Raebareli, the Integral Coach Factory in Chennai and the Rail Coach Factory in Kapurthala, on coach types including LHB coaches and Vande Bharat. The company is ISO 9001:2015 and ISO 15085 certified, is empanelled as a business associate under a Navratna public sector undertaking, and bids for work through the Indian Railways e-Procurement System. As on 30 June 2026 it had 43 employees on its payroll.

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