Ekkaa Electronics IPO

Strengths · 8

• 01Revenue from operations grew 146.07%, from Rs 496.51 crore in FY2025 to Rs 1,221.76 crore in FY2026.
• 02Profit after tax rose from Rs 23.55 crore in FY2025 to Rs 65.38 crore in FY2026, after a loss of Rs 4.05 crore in FY2024.
• 03Installed capacity rose from 18,56,800 units in FY2024 to 36,26,800 units in FY2025 and 51,99,300 units as on 31 March 2026, across three plants.
• 04The company reported over 450 customers across 20 states and union territories as on 31 March 2026.
• 05Return on equity was 45.13% and return on net worth was 25.99% in FY2026.
• 06Net worth rose from Rs 38.22 crore in FY2025 to Rs 251.53 crore in FY2026.
• 07Net working capital days improved to 23 days in FY2026 from negative 89 days in FY2025, and gross fixed asset turnover rose to 5.72 times from 3.39 times.
• 08On the unaudited proforma consolidated basis, which includes the Ekkaa Electronics Industries acquisition for all periods, revenue grew from Rs 433.68 crore in FY2024 to Rs 1,263.14 crore in FY2026 and profit after tax from Rs 2.05 crore to Rs 70.69 crore.

Risks · 10

• 01The restated three-year record is not comparable. Revenue from operations was Rs 0.07 crore in FY2024, Rs 496.51 crore in FY2025 and Rs 1,221.76 crore in FY2026, so the company had almost no operations in FY2024 and the 146.07% FY2026 growth sits on a very short history.
• 02The company acquired Ekkaa Electronics Industries Private Limited during FY2026, and the draft document itself warns that the unaudited proforma consolidated information prepared to show that acquisition is not a guide to future results or a substitute for past results.
• 03One product carries the business. LED televisions gave 71.78% of revenue from operations in FY2026, 72.71% in FY2025 and nil in FY2024.
• 04Cash flow used in operating activities was Rs 28.66 crore in FY2026, Rs 64.11 crore in FY2025 and Rs 15.28 crore in FY2024, so the company has not yet generated cash from operations even with profit after tax of Rs 65.38 crore in FY2026.
• 05Total borrowings were Rs 308.75 crore in FY2026 against net worth of Rs 251.53 crore, and Rs 225.00 crore of the net proceeds is earmarked for repaying borrowings rather than for growth.
• 06Customer concentration is high. The top 10 customers gave 65.77% of revenue from operations in FY2026 and 80.35% in FY2025, and the top five gave 52.43% in FY2026.
• 07Supplier concentration is higher still. The single largest supplier gave 46.94%, the top five gave 69.74% and the top 10 gave 79.11% of raw material and component purchases in FY2026, and some raw materials come from outside India.
• 08Margins are thin and slipping. Gross profit margin was 16.98% in FY2026 against 17.40% in FY2025, EBITDA margin fell from 11.16% to 9.37%, and return on capital employed was 18.00%.
• 09Two tax proceedings against the promoters involve Rs 40.77 crore, which is more than half of the FY2026 profit after tax of Rs 65.38 crore.
• 10The offer is made under Regulation 6(2) of the SEBI ICDR Regulations because the company does not meet the profitability test in Regulation 6(1)(b). The general corporate purposes amount is left blank and can be up to 25% of gross proceeds.

Ekkaa Electronics (India) Limited is an original design manufacturer and original equipment manufacturer of consumer electronics and appliances. It does not sell under its own brand to shoppers. It designs and builds products that other companies sell under their names, which is why the draft document calls it a business to business focused manufacturer. The work it takes on covers product design, sourcing, manufacturing, packaging and assembly, and it keeps electrical and mechanical design in house.

The product list covers LED televisions, semi-automatic washing machines and washers, personal and commercial air coolers, multimedia speakers, induction and infrared cooktops and other consumer electronics. LED televisions are by far the biggest line. In FY2026 LED televisions gave 71.78% of revenue from operations, semi-automatic washing machines gave 9.80% and the rest of the products gave 15.12%, on total revenue from operations of Rs 1,221.76 crore.

The customers are retail facing brands, institutional buyers, online platforms and other businesses. As on 31 March 2026 the company reported over 450 customers across 20 states and union territories, with its deeper reach in Tier II and Tier III cities. All of its revenue comes from the domestic Indian market, so there is no export cushion and no export risk. The top five customers gave Rs 640.64 crore, or 52.43% of revenue from operations, in FY2026.

The company runs three manufacturing facilities. The Noida facility covers 14,760 sq m and has capacity of 36,86,800 units. The Ganaur facility covers 39,254.50 sq m with capacity of 5,47,500 units. The Sonipat facility covers 1,800 sq m with capacity of 9,65,000 units. Together they had installed capacity of 51,99,300 units a year as on 31 March 2026, against 36,26,800 units in FY2025 and 18,56,800 units in FY2024.

The registered office is in Pitampura, Delhi and the corporate office is in Noida, Uttar Pradesh. The promoters are Sagar Gupta, Chandra Prakash Gupta and Madhuri Gupta. Chandra Prakash Gupta is Chairman and Executive Director and has more than 13 years in OEM and ODM consumer electronics manufacturing. Sagar Gupta is Managing Director, holds a bachelor's degree in commerce from Shri Ram College of Commerce and has more than 7 years in the industry. Madhuri Gupta is an Executive Director, holds a bachelor's degree in arts from Agra University and has more than 8 years in the industry. All three have been with the company since incorporation. During FY2026 the company acquired Ekkaa Electronics Industries Private Limited, and the draft document carries unaudited proforma consolidated numbers to show what the combined business would have looked like.

The industry

The draft document cites a Frost and Sullivan report. India's consumer durables market grew from about Rs 1,20,400 crore in FY2021 to about Rs 2,05,500 crore in FY2026, a compound annual growth rate of about 11.3%, and the report expects about Rs 3,43,300 crore by FY2030 at about 13.7% a year. The outsourced design manufacturing slice of this market, which is where Ekkaa sits, grew from about Rs 11,390 crore in FY2021 to about Rs 24,900 crore in FY2026 at about 16.9% a year, and the report expects about Rs 51,380 crore by FY2030 at about 19.9% a year. LED televisions are the largest outsourced opportunity, put at about Rs 16,670 crore in FY2025 and about Rs 32,180 crore by FY2030. The total outsourced manufacturing opportunity across the selected consumer durable categories was about Rs 36,550 crore in FY2025 and is expected to reach about Rs 64,170 crore by FY2030. The report names Dixon Technologies, PG Electroplast, Amber Enterprises and Epack Durables as comparable outsourced manufacturers in India.

Customer concentration: The top five customers gave Rs 640.64 crore, or 52.43% of revenue from operations, in FY2026. The top 10 customers gave 65.77% in FY2026 and 80.35% in FY2025.