Eswari Global Metal Industries IPO

Strengths · 8

• 01Revenue from operations grew from Rs 968.01 crore in FY2023 to Rs 1,407.56 crore in FY2025, and was Rs 1,401.54 crore in the nine months to 31 December 2025.
• 02Profit after tax was Rs 83.92 crore in the nine months to 31 December 2025, against Rs 30.16 crore in all of FY2025.
• 03EBITDA margin rose to 8.37% in the nine months to 31 December 2025 from 1.72% in FY2025.
• 04Exports were 75.70% of product revenue in the nine months to 31 December 2025, with customers in 15 countries including India.
• 05Net worth grew from Rs 38.13 crore in FY2023 to Rs 102.25 crore in FY2025, and was Rs 266.34 crore on 31 December 2025.
• 06Net debt to equity fell from 4.15 times in FY2023 to 1.38 times on 31 December 2025.
• 07Nine manufacturing facilities in Karnataka and Tamil Nadu serve more than 168 customers, so output is spread over several plants.
• 08Promoters hold 85.00% and promoter group members hold another 10.00% before the issue.

Risks · 10

• 01Lead and lead-based products gave 90.08% of product revenue in the nine months to 31 December 2025, so any fall in lead demand hits the whole business.
• 02The top five customers gave 49.66% of product revenue in the nine months to 31 December 2025 and 50.70% in FY2025. The top customer alone gave 20.89%.
• 03Exports were 75.70% of product revenue in the nine months to 31 December 2025, so anti-dumping duties or trade agreements in export markets can affect sales.
• 04Battery makers gave 56.31% of product revenue in the nine months to 31 December 2025 and 69.47% in FY2025, so a downturn in lead-acid batteries would hurt demand.
• 05Cash flow from operating activities was negative in three of the four periods shown: Rs -5.11 crore in the nine months to 31 December 2025, Rs -8.53 crore in FY2025 and Rs -59.55 crore in FY2024.
• 06Total borrowings rose from Rs 148.61 crore in FY2023 to Rs 360.75 crore on 31 December 2025, and net working capital days rose to 105.54 from 76.16 in FY2025.
• 07EBITDA was Rs 24.20 crore in FY2025 against Rs 43.27 crore in FY2023, even though revenue grew over the same period. FY2025 EBITDA margin was 1.72%.
• 08Lead is a hazardous material and the business is under strict environmental and safety rules. The company says an accident or a plant shutdown could hurt operations.
• 09Of the Rs 500 crore fresh issue, Rs 250 crore goes to repaying borrowings and the general corporate purposes amount is not yet fixed. The offer for sale of 1,32,09,451 shares brings money only to the selling shareholders.
• 10The statutory auditors' examination report on the restated financials carries an emphasis of matter for the nine months to 31 December 2025 and for FY2024.

Eswari Global Metal Industries Limited is based in Coimbatore, Tamil Nadu. It makes value-added non-ferrous metal products by recycling scrap of lead, tin, aluminium, copper, plastic and e-waste. Its products are pure lead and lead alloys, aluminium alloys, copper ingots, tin products and plastic granules.

Lead is the core of the business. Lead and lead-based products were 90.08% of revenue from sale of products in the nine months ended 31 December 2025 and 89.53% in FY2025. Copper, tin, plastic, aluminium and e-waste together made up the rest. The company also reports a small cashew trading segment, which was 1.55% of FY2025 product revenue.

Customers are in battery making, automotive and industrial sectors. Battery manufacturers contributed 56.31% of product revenue in the nine months to 31 December 2025 and 69.47% in FY2025. The company served 168 customers in the nine months, and 226 in FY2025. It sells to buyers in 15 countries including India, with South Korea, Thailand, Singapore, Vietnam, Indonesia and Malaysia among the markets. Export revenue was 75.70% of product revenue in the nine months and 66.78% in FY2025. The document names Sebang Global Battery, Glencore International, Tata Autocomp GY Batteries and Thyssenkrupp Materials Trading Asia among its major customers.

As of 31 December 2025, the company and its subsidiaries run nine manufacturing facilities across Karnataka and Tamil Nadu. The document describes the company as the largest exporter of lead alloy products by value, citing the CRISIL report. It plans to expand its recycling and manufacturing facility at Mundra in Gujarat, and to move into lithium battery recycling.

The company was incorporated on 22 May 2013. It has six promoters: C Bharanikumar, Pradeep Chandrasekaran, Prasath Chandrasekaran, Sabarinathan Anbalagan, Hari Sudhan A and Nithin Arumugam.

The industry

The industry section is sourced to a CRISIL report. India's lead demand rose from 1.1 million tonnes in Fiscal 2021 to 1.5 million tonnes in Fiscal 2025, and is expected to reach 1.8-1.9 million tonnes by Fiscal 2030. Primary aluminium demand grew about 21.9% in Fiscal 2025 and is projected to grow at a CAGR of about 6.5-8% until Fiscal 2030. India's copper demand rose from 978 kilotonnes in Fiscal 2021 to 1,878 kilotonnes in Fiscal 2025, a CAGR of about 18%. Tin demand is projected to grow at 4.6-5.5% a year between Fiscal 2025 and Fiscal 2030. Recycled plastic could reach 35.2 million tonnes by 2035 in the optimistic scenario of the National Circular Economy Roadmap.

Customer concentration: Top 5 customers gave 49.66% of product revenue in the nine months to 31 December 2025 (50.70% in FY2025 and 54.15% in FY2024).