Infrax Renewable SME IPO

Strengths · 8

• 01Sales have grown very fast, from Rs 9.66 crore in FY2024 to Rs 30.48 crore in FY2025 and Rs 93.33 crore in FY2026.
• 02Profit has grown alongside, from Rs 0.96 crore in FY2024 to Rs 2.85 crore in FY2025 and Rs 10.20 crore in FY2026.
• 03Return ratios are the highest in this batch of issues, with RoCE of 63.89% and RoNW of 64.68%.
• 04The issue is priced at about 14.5 times earnings on an EPS of Rs 7.17, which is modest against that growth.
• 05The 25 year power purchase agreement with PGVCL for its own 1.2 MW plant gives a long term contracted income stream.
• 06The business has three legs, EPC work, its own power generation and the sale of solar products, so it is not dependent on one activity.
• 07It is empanelled as a national vendor under the PM Surya Ghar scheme, which is the main government push for rooftop solar.
• 08Borrowing is low at Rs 6.99 crore, and EBITDA improved from Rs 1.76 crore in FY2024 to Rs 14.56 crore in FY2026.

Risks · 10

• 01There is a serious inconsistency in the offer document data. The company is stated to have been incorporated in September 2024, yet financial figures are shown for FY2024 and FY2025, which cover periods ending before or around that date. This must be checked in the RHP before relying on the three year record.
• 02The growth is from a very small base. Income went up nearly ten times in two years, from Rs 9.66 crore to Rs 93.33 crore, and that pace cannot be assumed to continue.
• 03The company is small relative to what it is raising. Net worth was Rs 15.77 crore as on 31 March 2026 against an issue of Rs 40.88 crore, which is more than twice its own funds.
• 04Rooftop solar demand depends heavily on the PM Surya Ghar scheme and on state subsidies. Any change in scheme terms or delay in subsidy payment would directly affect orders.
• 05Solar module prices are volatile and a large part of supply is imported, so cost and availability are outside the company's control.
• 06Its own generation is small at 1.2 MW, so the steady IPP income is a minor part of the business at present.
• 07A part of the money goes into a proposed manufacturing facility, which is a new activity compared with its current EPC and trading work and brings execution risk.
• 08This is a fresh issue combined with an offer for sale, so a part of the money goes to the selling shareholders and not to the company.
• 09Promoter holding falls from 70.64% to 49.73% after the issue, leaving the promoters at roughly a half share.
• 10This is a fixed price SME issue at Rs 104 per share, so there is no price discovery through bidding. One lot is 1,200 shares, about Rs 1.25 lakh, and SME shares usually trade in low volume after listing.

Infrax Renewable Limited is a solar energy company. It works in three ways.

First, it provides engineering, procurement and construction services, known as EPC, for solar power projects. This covers the complete job of design, engineering, buying the equipment, installation, testing, commissioning, running and maintaining the plant, and helping with regulatory work. It does rooftop projects for homes and ground mounted projects for commercial customers.

Second, it works as an Independent Power Producer, which means it owns a solar plant and sells the electricity. In 2026 it commissioned a 1.2 MW solar power plant at Bhadla, Jasdan, in Rajkot district of Gujarat, and sells the power to Paschim Gujarat Vij Company Limited under a 25 year power purchase agreement.

Third, it sells solar products including solar PV modules, both polycrystalline and monocrystalline, solar inverters and other related equipment, sourced from India and abroad. It sells through a dealer network to residential, commercial and industrial customers, and has been empanelled as a national vendor under the Government of India PM Surya Ghar: Muft Bijli Yojana scheme.

Interested in this IPO? Check the live subscription status or browse all upcoming SME IPOs.