Bvishal Oil and Energy IPO

Strengths · 7

• 01The company has an ongoing order book of Rs 660.85 crore as on 28 February 2026, against FY2025 revenue of Rs 173.82 crore.
• 02EBITDA margin stood at 32.64% in FY2025 and 37.54% in the half year ended 30 September 2025.
• 03Profit after tax grew from Rs 20.61 crore in FY2023 to Rs 30.91 crore in FY2025.
• 04Net worth rose from Rs 100.86 crore on 31 March 2023 to Rs 233.45 crore on 31 March 2025.
• 05Bid success ratio was 47.78% in FY2025, with proposals worth Rs 702.35 crore at the high end of the range across the years.
• 06Debt to equity fell from 1.13 times in FY2023 to 0.56 times in FY2025, and interest coverage was 5.66 times in FY2025.
• 07The company serves ONGC and Oil India across six states and has started Production Enhancement Services on 4 oilfields and 47 wells.

Risks · 10

• 01The top five customers gave 99.86% of revenue in FY2025, and the top customer alone gave 60.33%.
• 02Central public sector enterprises gave 90.00% to 98.14% of revenue in the periods covered, and work comes through competitive tenders with a bid success ratio of 32.91% in the half year ended 30 September 2025.
• 03Gujarat gave 67.76% and Assam gave 29.07% of FY2025 revenue, so a problem in either state would hit revenue directly.
• 04Net cash from operating activities was negative at Rs 90.91 crore in FY2025 and Rs 48.45 crore in FY2024, even though profit after tax was positive.
• 05Trade receivable days rose to 159 in the half year ended 30 September 2025 from 90 in FY2025.
• 06The planned capex of about Rs 120.50 crore is entirely unordered and has no alternate funding, so delays in offer proceeds could defer it.
• 07Production Enhancement Services is a new business for the company, on a 15-year revenue-sharing model that needs upfront capital.
• 08Offer for sale of up to 77,09,799 shares gives money to the selling shareholders and nothing to the company.
• 09Investor selling shareholders bought at a weighted average cost of Rs 64 per share, which is higher than the promoters' cost of Rs 4.44 to Rs 6.44, so the price band will decide their gain.
• 10Diesel, materials and wages were 68.92% to 78.50% of the cost of operations, and bid prices may not cover cost overruns.

Bvishal Oil and Energy Limited is a technology-driven onshore oilfield services provider. It helps with the exploration, production and maintenance of oil and gas wells, on both the upstream and midstream side. The company was formed in 2017 when the partnership firm Vishal Enterprises, started by promoter Bharatkumar S Chaudhari in 1999, was converted into a company.

The company earns from four main services. These are Well Intervention and Well Stimulation, Surface Production Testing and Gas Processing, Operations and Maintenance, and Production Enhancement Services. Its subsidiaries add Enhanced Oil Recovery and Operations and Maintenance services. In the half year ended 30 September 2025 it did 88 well intervention and stimulation jobs, 101 surface testing jobs, 67 operations and maintenance jobs and 34 enhanced oil recovery jobs.

The customer base is very narrow. The company mainly serves Oil and Natural Gas Corporation and Oil India Limited, with limited private sector work. Central public sector enterprises gave 90.00% of revenue in FY2025. The top five customers gave 99.86% of revenue in FY2025. It works in six states: Gujarat, Assam, Rajasthan, Andhra Pradesh, Odisha and Maharashtra. In FY2025, Gujarat gave 67.76% of revenue and Assam gave 29.07%.

The company has an ongoing order book of Rs 660.85 crore as on 28 February 2026, out of total contract value of Rs 926.72 crore. It is also entering Production Enhancement Services. That contract covers 4 oilfields and 47 oil wells on a revenue-sharing model over 15 years. Its equipment includes 7 coiled tubing units, 2 workover rigs, 5 nitrogen pumping units, 6 mobile testing units and 11 blender units.

The promoters are Bharatkumar S Chaudhari, Vishalkumar Bharatbhai Chaudhary and Shivani Vishalkumar Chaudhary. Bharatkumar S Chaudhari is the Chairman and Managing Director and has over 20 years of experience in the oilfield industry. The registered office is in Mehsana, Gujarat.

The industry

The industry report is by CRISIL. It says India is the world's third-largest energy consumer and imported about 87% of its crude oil and about 50% of its natural gas needs in FY2025. Domestic production is led by ONGC and Oil India, along with private players such as Reliance Industries and Cairn India. Oil and gas production is expected to reach a mid-decade peak around 2027, driven by the KG-Basin projects. The report says Gujarat, Assam and Rajasthan together account for over 96% of India's onshore oil production, which is why the company's revenue sits in these states.

Customer concentration: Top 5 customers gave 99.85% of revenue in the half year ended 30 September 2025 and 99.86% in FY2025. The top customer gave 69.38% and 60.33% in the same periods.