Gujarat Victory Forgings IPO

Strengths · 7

• 01Revenue from operations was Rs 607.65 crore in FY2025, up from Rs 511.15 crore in FY2024.
• 02Profit after tax rose from Rs 6.09 crore in FY2023 to Rs 20.38 crore in FY2025.
• 03EBITDA margin improved from 2.20% in FY2023 to 4.67% in FY2025 and 5.98% in the six months to 30 September 2025.
• 04Return on equity was 25.97% in FY2025 and return on capital employed was 27.01%.
• 05Debt to equity was 0.32 times in FY2025, with net worth of Rs 87.01 crore.
• 06The product mix is spread across three segments: copper cathodes 49.34%, master alloys 22.14% and copper related products 22.05% of FY2025 revenue.
• 07The statutory auditors made no qualification or adverse remark on the financials in the document.

Risks · 10

• 01Copper cathodes gave 49.34% of FY2025 revenue and 56.30% in FY2024, so the business leans on one product.
• 02The top 5 customers gave 60.26% of FY2025 revenue and 51.50% in the six months to 30 September 2025. The company works on purchase orders without long-term agreements.
• 03Western India gave 86.47% of FY2025 revenue, mainly Gujarat and Dadra and Nagar Haveli.
• 04Operating cash flow was negative Rs 30.88 crore in the six months to 30 September 2025, against Rs 18.50 crore positive in FY2025.
• 05Total borrowings rose from Rs 11.27 crore in FY2023 to Rs 37.41 crore on 30 September 2025.
• 06Raw material depends on imported copper scrap, which is subject to environmental and hazardous waste rules, and suppliers have no long-term contracts.
• 07The company reports delayed filings under the Companies Act, 2013 and has filed compounding applications.
• 08The offer includes up to 1,32,00,000 shares sold by promoter Vijendrakumar Bishamber Gupta, and that money goes to him, not the company.
• 09The promoter selling shareholder's weighted average cost of acquisition is Rs 0.01 per share, largely from bonus shares at 390 for every 1 held.
• 10Proceeds also cover repayment of borrowings and general corporate purposes, with no amount split disclosed yet.

Gujarat Victory Forgings Limited processes and recycles non-ferrous metal scrap into finished metal products. Its plants are in Manjusar village, Savli, near Vadodara in Gujarat. The company runs two units there, called Unit II and Unit III.

The product range has three segments. Copper cathodes, with copper purity between 99.96% and 99.99%, gave 49.34% of FY2025 revenue. Master alloys of copper, such as copper arsenic, copper phosphorus, copper nickel, chromium zirconium and copper silicon alloys, gave 22.14%. Copper related products, such as tubes, pipes, ingots, busbar, rods, coil and brass tubes, gave 22.05%.

The products go to power infrastructure, EV and automotive, construction and real estate, and renewable energy and storage customers. The company served 176 customers in 15 states and union territories in India and in 5 countries abroad across the periods covered. Western India gave 86.47% of FY2025 revenue. Exports were 5.76% of FY2025 revenue, to Oman, Zambia, South Korea and Indonesia in the periods covered.

The promoters are Vijendrakumar Bishamber Gupta, Manjuben Vijendrakumar Gupta and Rahul Vijendra Agrawal. Rahul Vijendra Agrawal joined as General Manager (Operations) in 2021 and became Chairman and Managing Director in December 2025. The company says it plans to raise utilisation of its copper cathode capacity, add recycling of copper wire and PVC cable scrap, and expand in domestic and export markets.

The industry

The company quotes a CareEdge report on India's non-ferrous metals industry, which covers aluminium, copper, zinc, lead and nickel. The report links demand to power, construction, transportation, renewables and electronics. It points to infrastructure spending, electric mobility, renewable energy and grid modernisation as demand drivers. The summary in the abridged prospectus does not give a market size in rupees or a growth rate.

Customer concentration: Top 5 customers gave 60.26% of FY2025 revenue (52.35% in FY2024 and 59.83% in FY2023).