APPL Containers IPO

Strengths · 7

• 01Revenue from operations rose from Rs 4.53 crore in FY2023 to Rs 69.03 crore in FY2025, and profit after tax rose from Rs 2.08 crore to Rs 32.83 crore over the same period.
• 02Installed capacity went up from 8,000 containers in FY2023 to 15,000 in FY2025, and the Bhavnagar plant has made 13,101 containers up to 31 March 2025.
• 03The order book stood at 802 containers worth about Rs 28.34 crore on 31 August 2025.
• 04Operating cash flow was Rs 33.73 crore in FY2025 against a profit after tax of Rs 32.83 crore, so profit turned into cash.
• 05Net worth was Rs 54.84 crore at 31 March 2025 against total borrowings of Rs 19.78 crore.
• 06The Indian shipping container market is expected to grow from US$ 361.6 million in FY2025 to US$ 881.5 million by FY2034, a growth of 9.3% a year.
• 07From FY2025 the company bids for tenders on its own, and Transport Corporation of India Limited gave 8.35% of FY2025 revenue.

Risks · 10

• 01One customer, the subsidiary Aawadkrupa Plastomech, gave 88.19% of FY2025 revenue, and the company had only 8 customers that year.
• 02Capacity utilisation was 49.34% in FY2025 and 52.50% in FY2024, so half the 15,000 container capacity was unused.
• 03The company paid its subsidiary liquidated damages of Rs 1,673.29 lakh in FY2025 and Rs 1,490.93 lakh in FY2024 for delays in an order, and similar delays could recur.
• 04The working capital cycle moved from -86 days in FY2024 to 138 days in FY2025, with raw material inventory at 107 days.
• 05Of the 38,10,000 shares in the offer, 25,60,000 are an offer for sale, so most of the offer money goes to the selling promoters and not to the company.
• 06The promoters hold 96.12% before the offer, and the eight promoter sellers have an average cost of acquisition of Rs 11.93 to Rs 43.70 per share.
• 07Of the fresh issue money, Rs 55.00 crore is for working capital and Rs 16.00 crore is for repaying borrowings, while general corporate purposes is not yet fixed and can be up to 25% of the gross fresh issue proceeds.
• 08The promoters are involved in 22 criminal proceedings they have filed, with an aggregate amount of Rs 13518.5 lakh, and the company faces 1 criminal and 1 tax proceeding with Rs 125 lakh involved.
• 09Environmental approvals for the plant came with a delay of 3 years, and for the subsidiary's unit with a delay of 19 years.
• 10The company has not submitted the factory building plan for its two GIDC plots within the time set in the agreements dated 19 September 2024, and GIDC can resume the land.

APPL Containers Limited makes shipping containers at its manufacturing facility in Bhavnagar, Gujarat. The company was incorporated on 21 October 2021 as APPL Containers Private Limited and became a public limited company in June 2025. The facility is spread over 59,115.09 sq. mt. and can make up to 15,000 containers a year. The company has produced 13,101 containers, through job work and direct orders, from incorporation up to 31 March 2025.

For most of its short history the company did not sell containers on its own account. It was too new to meet the eligibility rules of some tenders, so its then group company, Aawadkrupa Plastomech Private Limited, bid for the tenders and gave the manufacturing to APPL on a job work basis. Job work was 100% of revenue in FY2023, 99.45% in FY2024 and 86.26% in FY2025. From FY2025 the company has started bidding for container tenders directly.

Aawadkrupa Plastomech became a wholly owned subsidiary on 14 August 2025. It designs and makes plastic extrusion plants and rope making machinery. The company also began a container leasing business in FY2026, which gives customers containers without a large upfront spend.

As of 31 August 2025 the company had an order book of 802 containers worth about Rs 28.34 crore. The orders include 20 High Cube 3 door access containers, 40 ft High Cube domestic containers and 40 ft coil containers. Customers other than the subsidiary in FY2025 included Transport Corporation of India Limited and JWC Logistics Park Private Limited.

The promoters are eight members of the Viradiya family. Hasmukhbhai Meghjibhai Viradiya is the Chairman and Managing Director. The registered office is at Shampara, Bhavnagar.

The industry

The industry report, prepared by ICRA Analytics and paid for by the company, puts the global shipping container market at US$ 20.1 Billion in CY2024, after growth of 0.6% a year over CY2019 to CY2024. It expects growth of around 6.8% a year over CY2025 to CY2033, to reach US$ 37.4 Billion. The Indian shipping container market was US$ 361.6 million in FY2025 and is expected to grow at 9.3% a year from FY2026 to FY2034, to reach US$ 881.5 million. The Indian container leasing market was US$ 215.8 million in FY2025 and is projected to reach US$ 591.0 million by FY2034, a growth of 10.7% a year.

Customer concentration: The subsidiary Aawadkrupa Plastomech gave 88.19% of FY2025 revenue, 99.50% of FY2024 revenue and 100% of FY2023 revenue.