Iris Global Services IPO

Strengths · 7

• 01Revenue from operations grew at a CAGR of 24.42% between FY2024 and FY2026, from Rs 2,684.97 crore to Rs 4,156.44 crore.
• 02Profit after tax rose every year in the three-year record, from Rs 52.98 crore in FY2024 to Rs 62.29 crore in FY2025 and Rs 79.50 crore in FY2026.
• 03EBITDA margin widened from 2.94% in FY2024 to 3.15% in FY2026, which is unusual for a distribution business adding volume.
• 04The brand shelf widened from 30 Technology Brands in FY2024 to 70 in FY2026, and SKUs sold reached 12,845 in FY2026.
• 05Operating cash flow turned positive at Rs 62.52 crore in FY2026 after an outflow of Rs 45.24 crore in FY2025.
• 06Net worth reached Rs 298.66 crore in FY2026 from Rs 159.35 crore in FY2024, with return on net worth of 26.62% in FY2026.
• 07Fulfilment runs on 32 warehouse-cum-branch offices across 21 states and union territories, serving an ecosystem of over 10,500 Channel Partners as on 31 July 2026.

Risks · 10

• 01Margins are very thin: EBITDA margin was 3.15% and PAT margin 1.90% in FY2026, so a small change in buying or selling prices moves profit sharply.
• 02Purchases are concentrated in a few brands. The top 10 Technology Brands were 75.40% of total purchases in FY2026, 79.48% in FY2025 and 81.85% in FY2024.
• 03Distribution agreements with the 70 Technology Brands can typically be terminated without cause and some carry restrictive covenants.
• 04There are no long-term arrangements with Channel Partners, and repeat Channel Partners gave 86.12% of revenue from operations in FY2026.
• 05Revenue leans on one region. North India was 45.71% of revenue from operations in FY2026, up from 35.60% in FY2024.
• 06Borrowings were Rs 237.14 crore in FY2026 against net worth of Rs 298.66 crore, a debt to equity ratio of 0.79.
• 07The cash conversion cycle stretched to 39 days in FY2026 from 29 days in FY2024, and Rs 156.00 crore of the fresh money is going into working capital rather than into assets.
• 08Litigation is not small. Against the company there are 19 tax proceedings and 1 statutory or regulatory proceeding involving Rs 23.33 crore, and 15 tax proceedings against the promoters involving Rs 22.32 crore. The company itself has filed 75 criminal proceedings involving Rs 50.01 crore.
• 09The statutory auditors have included a remark under the Companies (Auditor's Report) Order, 2020 in the draft red herring prospectus.
• 10The entire offer for sale of up to 5,00,00,000 shares is the promoters selling, at a weighted average cost of acquisition of Rs 1.27 and Rs 1.57 per share, and that money goes to them and not to the company.

Iris Global Services Limited is a business-to-business distributor of information and communication technology (ICT) products. It sits between original equipment manufacturers, which the company calls Technology Brands, and a network of regional distributors, stockist partners, system integrators and value-added resellers that it calls Channel Partners. The company does not sell to end users directly. It buys from brands, holds stock, and moves it through this channel across India.

The business runs in two verticals. The Enterprise and Infrastructure Solutions vertical covers enterprise ICT infrastructure: servers, storage, networking and connectivity, security and surveillance, and power solutions. The Computing and Mobility Solutions vertical covers personal computing, visual display systems, printing and imaging, and peripherals and accessories. The restated financial statements do not report these as separate segments under Ind AS 108, so the document gives no split of revenue between the two.

The spread of the portfolio has widened over three years. The company offered products of 70 Technology Brands in FY2026, against 62 in FY2025 and 30 in FY2024, and sold 12,845 stock keeping units in FY2026. The number of Channel Partners that actually transacted with the company was 2,692 in FY2026, 2,608 in FY2025 and 2,725 in FY2024, while the wider ecosystem stood at over 10,500 Channel Partners across India as on 31 July 2026.

Delivery runs on its own warehouse network. As on the date of the draft red herring prospectus the company operated through 32 warehouse-cum-branch offices across 21 states and union territories, with the registered and corporate office at Mahipalpur, New Delhi. These premises are held on lease or leave and licence basis, not owned. Sales are concentrated in the north: North India gave 45.71% of revenue from operations in FY2026, up from 35.60% in FY2024.

The promoters are Sanjiv Krishen, Chairman and Managing Director, who has over 55 years in the ICT distribution industry and has been with the company since incorporation, and Kamini Talwar, Whole-Time Director, who has over 41 years in the industry and joined in May 2009. Together they hold 98.24% of the company before the issue. Iris Computers Limited is a group company of the business.

The industry

The company sells into the Indian ICT products market, which the Frost and Sullivan report cited in the document puts at about INR 1.45 trillion in FY2022 and INR 2.24 trillion in FY2026, projected to reach INR 3.71 trillion by FY2031, a CAGR of about 10.6% over FY2026 to FY2031. At the distributor level, covering PCs, tablets, servers, storage systems, UPS, surveillance cameras, displays, projectors and networking equipment, the market is estimated at INR 2,245,211.1 million in FY2026 and is projected at INR 3,709,678.5 million by FY2031. The report attributes the growth to enterprise technology spending, cloud adoption, data centre expansion, cybersecurity demand and government digitisation, and says the rising complexity of deployments such as servers, storage and AI-enabled surveillance strengthens the role of distributors that carry stock, logistics scale and financing support.

Customer concentration: The company reports top five customer concentration as not applicable, because it sells through an ecosystem of over 10,500 Channel Partners, of which 2,692 transacted with it in FY2026. Repeat Channel Partners gave 86.12% of revenue from operations in FY2026.