Electromech Infraprojects IPO

Strengths · 8

• 01Revenue from operations grew from Rs 261.95 crore in FY2024 to Rs 408.51 crore in FY2025 and Rs 427.05 crore in FY2026.
• 02EBITDA margin widened from 7.64% in FY2024 to 9.32% in FY2025 and 10.80% in FY2026, and profit after tax rose to Rs 36.19 crore.
• 03The closing order book was Rs 829.72 crore as on 31 March 2026, against Rs 264.65 crore a year earlier and Rs 312.60 crore in FY2024.
• 04Total borrowings were Rs 0.50 crore as on 31 March 2026, down from Rs 17.83 crore in FY2024, and net debt was negative at Rs 79.04 crore, so cash and investments exceed debt.
• 05Data centre work gave 60% of FY2026 revenue from operations against 44% in FY2024, which is the fastest growing part of the company's market.
• 06Return on capital employed was 32.85% and return on net worth 24.34% in FY2026.
• 07The company completed 33 projects in FY2026 and 33 in FY2025, against 16 in FY2024.
• 08The statutory auditors have recorded no reservations, qualifications or adverse remarks in the last three fiscal years.

Risks · 10

• 01The top 3 clients gave 63.38% and the top 5 clients 75.03% of FY2026 revenue from operations, so the loss of one client would hit revenue hard.
• 02Data centre projects gave 60% of FY2026 revenue from operations, tying the business to a single end market.
• 03A single 48 MW data centre project in Telangana accounted for Rs 50,100 lakh, or 68.05% of the value of the top 10 ongoing projects as on 31 March 2026.
• 04Maharashtra gave 74% of FY2026 revenue from operations and 95% in FY2025, so the business is concentrated in one state.
• 05Net cash generated from operating activities was Rs 15.91 crore in FY2026 against profit after tax of Rs 36.19 crore, and operating cash flow was negative at Rs 646.84 lakh in FY2024, which shows how much working capital the business absorbs.
• 06The FY2026 figures are consolidated while FY2025 and FY2024 are standalone, so the three year record is not strictly comparable.
• 07Return on net worth fell from 45.70% in FY2024 to 42.24% in FY2025 and 24.34% in FY2026 as net worth rose to Rs 148.72 crore.
• 08Thirteen tax proceedings are pending against the company with an aggregate amount of Rs 2,477.97 lakh.
• 09Rs 76.48 crore of the net proceeds goes to lifting the stake in Jika EPC Services Limited from 34.78%, and Rs 24.16 crore and Rs 30.00 crore go to two other subsidiaries, so much of the fresh money is deployed outside the parent company.
• 10The offer for sale of 18,91,000 shares by the four promoters and AIG Direct LLC brings no money to the company, and the general corporate purposes amount is still blank and may take up to 25% of gross proceeds.

Electromech Infraprojects Limited is a mission critical mechanical, electrical and plumbing contractor for India's digital infrastructure sector. It handles the technical design, execution, testing and commissioning of data centres, AI data centres, global capability centres and commercial and industrial establishments. Its scope spans high and low voltage electrical works, mechanical works, fire protection and allied civil and interior fit-out works, which lets it take on large, complex and time critical assignments. Clients are largely multinational corporations and global hyperscale and colocation data centre operators. The company runs as a single reportable segment and is based in Chembur, Mumbai.

Data centre work gave Rs 25,655 lakh, or 60% of revenue from operations, in FY2026, against 44% in FY2024, while global capability centres gave 38% and commercial and industrial work 1%. The client list is narrow: the largest client alone gave 31.46% of FY2026 revenue from operations and the top 10 clients gave 90.13%. Maharashtra accounted for 74% of FY2026 revenue from operations, with West Bengal at 9%, Tamil Nadu at 7% and Telangana at 6%. The company completed 33 projects in FY2026 and 33 in FY2025, against 16 in FY2024, and its closing order book grew from Rs 264.65 crore in FY2025 to Rs 829.72 crore as on 31 March 2026.

Revenue from operations was Rs 261.95 crore in FY2024, Rs 408.51 crore in FY2025 and Rs 427.05 crore in FY2026. Profit after tax went from Rs 18.43 crore to Rs 29.48 crore and then Rs 36.19 crore, and the EBITDA margin widened from 7.64% to 9.32% and then 10.80%. Readers should note that the FY2026 figures are consolidated while FY2025 and FY2024 are standalone, so the three years are not strictly comparable. Net worth more than doubled to Rs 148.72 crore as on 31 March 2026 from Rs 69.80 crore a year earlier, helped by Rs 3,269.35 lakh of net cash from financing activities, and total borrowings fell to Rs 0.50 crore from Rs 17.83 crore in FY2024.

The company has three subsidiaries named in the objects of the offer: Jika EPC Services Limited, in which it holds 34.78%, Sinerco Power Systems Private Limited and Electromech Global Holdings Ltd. Part of the fresh issue money is earmarked for raising the Jika stake and for funding working capital and capital expenditure at Sinerco. The company also describes backward integration into the manufacturing of digital infrastructure equipment, and plans to expand into the Gulf Cooperation Council region.

The promoters are Paresh Pratap Maniar, Chairman and Whole Time Director, Varun Paresh Maniar, Managing Director, Mitesh Pratap Maniar, Procurement Director, and Chandrika Paresh Maniar, Non-Executive Director. The four together held 63.47% of the pre-Offer share capital of 3,66,31,581 equity shares, with no promoter group member holding any shares. AIG Direct LLC held 7.04% and Vikasa India EIF I Fund 3.06%. The company had 78 shareholders as on the date of the draft prospectus.

The industry

The CRISIL report cited in the draft prospectus says MEP infrastructure is the largest cost component in data centre construction in India, at roughly 70 to 75% of total project expenditure, while land and building related costs make up 25 to 30%. MEP systems directly shape uptime, energy efficiency, reliability, cooling effectiveness and power usage effectiveness, which is why data centre operators set strict qualification bars for MEP contractors. Electromech Infraprojects works in this MEP layer for data centres, global capability centres and commercial and industrial establishments.

Customer concentration: The largest client gave 31.46% of FY2026 revenue from operations, the top 3 clients 63.38%, the top 5 clients 75.03% and the top 10 clients 90.13%, against 29.47%, 58.35%, 66.22% and 79.25% in FY2024.