Deon Energy IPO

Strengths · 7

• 01Revenue from operations grew from Rs 68.43 crore in FY2024 to Rs 298.54 crore in FY2025 and Rs 456.28 crore in FY2026.
• 02Restated profit after tax was Rs 46.06 crore in FY2026, against Rs 26.41 crore in FY2025 and Rs 2.79 crore in FY2024.
• 03EBITDA margin improved from 6.99% in FY2024 to 11.85% in FY2025 and 13.90% in FY2026.
• 04The company had an order book of Rs 256.89 crore across 20 EPC projects at the end of FY2026.
• 05Customer concentration is falling: the top 10 customers gave 48.36% of revenue in FY2026, against 89.10% in FY2024.
• 06Borrowings are small at Rs 11.62 crore against a net worth of Rs 71.45 crore in FY2026, with a debt to equity ratio of 0.16.
• 07Return on equity was 94.95% and ROCE was 74.98% in FY2026.

Risks · 10

• 01The top 10 customers gave 48.36% of revenue in FY2026 and the top customer alone gave 9.52%, so a delay or cancellation hurts.
• 02Ground-mounted solar EPC gave 96.67% of revenue in FY2026, so the company depends on one project type.
• 03Almost all ongoing projects are in Gujarat, and weather events such as cyclones can disrupt work in the state.
• 04Operating cash flow was Rs 4.66 crore in FY2026 against a profit of Rs 46.06 crore, and the company says its business needs a lot of working capital.
• 05Rs 75.00 crore of the proceeds is for working capital and Rs 95.80 crore is for a new IPP plant, a business where the company has only just started, with Rs 0.58 crore of revenue in FY2026.
• 06Part of the offer is an offer for sale of 20,00,000 shares, and that money goes to the promoter sellers, not to the company.
• 07The order book may not turn into revenue, as projects can be delayed, changed or cancelled.
• 08The company has a short history as a company, since it converted from a partnership firm on 11 April 2024.
• 09The auditor noted in its CARO report that some properties are still in the name of the old partnership firm, though it reports no material impact.
• 10General corporate purposes can take up to 25% of the gross proceeds and the amount is not yet fixed.

Deon Energy Limited provides solar energy solutions. Its main work is engineering, procurement and construction (EPC) of solar power projects, which includes installation and commissioning. It also offers operation and maintenance (O&M) services and has started an independent power producer (IPP) business. The company began as a partnership firm in 2020 and became a company on 11 April 2024.

From 2020 till 31 August 2026, the company executed 126 solar power projects with an installed capacity of 321.53 MWDC. Ground-mounted projects gave Rs 441.07 crore of revenue in FY2026, which is 96.67% of revenue from operations. Rooftop projects gave Rs 9.77 crore, O&M gave Rs 4.85 crore and IPP gave Rs 0.58 crore.

The customers are mainly industrial users who want renewable power. Business comes through direct relationships, referrals and business development. The company built 44 solar projects with 214.79 MWDC capacity in FY2026, against 34 projects with 99.52 MWDC in FY2025 and 15 projects with 19.62 MWDC in FY2024.

On 31 August 2026 the company had 34 ongoing EPC projects with a combined capacity of 198.97 MWDC and an order value of Rs 607.38 crore. Most of these projects are in Gujarat. Others are in Nashik, Bangalore, Siliguri, Leh in Ladakh and Ajmer, plus one multi-state project. The company has no manufacturing facility. It works from its Ahmedabad office, commercial premises and its own solar plants.

The promoters are Dharmesh Ashokbhai Makadiya, Kalariya Chiragbhai Dineshbhai, Kalariya Archanaben and Bhargav Chaturbhai Kavar. Dharmesh Makadiya is Chairman and Managing Director. The IPO is managed by Valmiki Leela Capital Private Limited.

The industry

The industry report by D&B describes solar EPC as the execution arm of India's solar build-out. EPC firms turn project plans into working plants by handling design, equipment sourcing, construction and commissioning. The report links demand to government programmes such as the National Solar Mission and PM-KUSUM. The summary in the abridged prospectus does not give a market size or growth rate in figures.

Customer concentration: Top 5 customers gave 30.71% of FY2026 revenue (35.24% in FY2025 and 60.19% in FY2024). Top 10 customers gave 48.36% in FY2026.