Jagatjit Agri Engineering IPO

Strengths · 8

• 01The CARE industry report ranks the company third among homegrown agricultural implement manufacturers in India on FY2026 revenue, with 21 products as of 31 July 2026 made at two integrated plants.
• 02Restated revenue from operations was Rs 413.97 crore in FY2026, and on the proforma basis that includes the acquired Saron Mechanical Works businesses revenue was Rs 253.76 crore in FY2025 and Rs 207.45 crore in FY2024.
• 03Gross profit margin rose to 39.06% in FY2026 from 20.98% in FY2025 and 20.06% in FY2024 on a restated basis.
• 04Profit after tax was Rs 31.39 crore in FY2026 with a PAT margin of 7.58%, against Rs 6.55 crore and 6.82% in FY2025 on a restated basis.
• 05Return on capital employed was 31.10% in FY2026 and the interest coverage ratio 5.03 times.
• 06Units sold went from 3,803 in FY2025 to 19,111 in FY2026 and SKUs from 95 to 192 on a restated basis, with presence in 20 states against 15.
• 07Rs 71.66 crore of the fresh issue is earmarked for expanding the Dehlon manufacturing facility, so part of the money goes to capacity rather than only to the balance sheet.
• 08The three promoters held 99.97% of the 5,56,50,984 shares before the offer, and only 31,00,000 shares are being sold in the offer for sale.

Risks · 10

• 01The restated FY2026 figures are not comparable with restated FY2025 and FY2024, because business transfer agreements brought in the Saron Mechanical Works businesses. Restated revenue from operations was Rs 95.93 crore in FY2025 while the proforma figure for the same year was Rs 253.76 crore.
• 02The top three products gave 64.40% of restated revenue from operations in FY2026, and 75.24% of proforma revenue in FY2025.
• 03Seth Agro Industries alone gave 25.21% of restated FY2026 revenue from operations, the top five customers 40.84% and the top ten 50.04%, and the company has no definitive long-term agreements with customers.
• 04Northern states gave 68.04% and central states 25.95% of restated FY2026 revenue from operations, so the business rests on a narrow set of states.
• 05Cash flow from operating activities fell to Rs 2.69 crore in FY2026 from Rs 13.02 crore in FY2025 and Rs 12.49 crore in FY2024, while profit after tax was Rs 31.39 crore in FY2026, so working capital absorbed the earnings.
• 06Total borrowings were Rs 134.41 crore in FY2026 against a tangible net worth of Rs 70.47 crore, a debt equity ratio of 1.89 times, and the current ratio was 1.10 times.
• 07Rs 110.00 crore of the Rs 300.00 crore fresh issue goes to working capital and Rs 18.50 crore to repaying borrowings, and the general corporate purposes amount is still blank.
• 08The statutory auditors recorded the same qualification for FY2026, FY2025 and FY2024, that the accounting software had no audit trail at the database level until the feature was enabled in January 2026, and the company has had past non-filings and delays with the Registrar of Companies.
• 09Certain promoters and executive directors were disqualified as directors in the past over Jaggatjit Agro Private Limited, the group company Goodfield Technology Private Limited has common pursuits, and the land for both plants is leased from the promoters.
• 10The top ten suppliers accounted for 40.53% of raw material cost in FY2026 and 76.68% in FY2025 on a restated basis, with no definitive long-term supply agreements, and the business is seasonal with lower revenue in the fourth quarter.

Jagatjit Agri Engineering Limited, earlier Jagatjit Agri Engineering Private Limited and before that Jagatjit Agri India Private Limited, makes agricultural implements that are towed or mounted on tractors. The products are used across the crop cycle, from land preparation to sowing, and the company describes itself as an end-to-end crop solutions provider. The CARE industry report commissioned for the draft prospectus places it third among homegrown agricultural implement manufacturing and engineering companies in India on FY2026 revenue. The Jagatjit brand has been in agricultural machinery since the 1980s. The registered office is on Ludhiana Malerkotla Road at Village Dehlon, Ludhiana, Punjab.

As of 31 July 2026 the company had 21 products. The key performance indicators show 192 SKUs in FY2026 against 95 in FY2025 and 88 in FY2024, and 19,111 units sold in FY2026 against 3,803 in FY2025 on a restated basis. The company also makes pellet and briquette manufacturing machinery, which it plans to sell to buyers located near sources of agricultural biomass.

End customers are farmers, reached mainly through a dealer and distributor network, with some direct sales. In FY2026 the company sold to more than 2,500 direct customers, not counting those served through dealers and distributors. It supplied products in 20 states in FY2026 against 15 in FY2025 and 10 in FY2024. Northern states gave 68.04% of restated revenue from operations in FY2026 and central states another 25.95%. Exports were 1.36% of revenue from operations in FY2026, going mainly to Nepal, the Dominican Republic, Vietnam, Tanzania and Albania.

There are two integrated manufacturing facilities, one at Cheema in Sangrur district and one at Dehlon in Ludhiana district, both in Punjab. The land for the Cheema facilities is leased from the promoters Jagatjit Singh and Dharam Singh, and the land for the Dehlon facility from Jagatjit Singh. Expanding the Dehlon facility is one of the objects of the fresh issue.

The FY2026 restated numbers are not comparable with the earlier years. Until business transfer agreements consolidated the businesses of Saron Mechanical Works I, Saron Mechanical Works II and the company, the company sold finished products to those two firms, and Saron Mechanical Works II was its largest customer in FY2025 and FY2024. The draft prospectus therefore also gives proforma figures, under which revenue from operations was Rs 253.76 crore in FY2025 and Rs 207.45 crore in FY2024 against restated figures of Rs 95.93 crore and Rs 48.86 crore. Share capital was also reworked in 2026: a 22-for-1 bonus issue of 2,66,15,688 shares was allotted and the paid-up capital was sub-divided from 2,78,25,492 shares of Rs 10 each to 5,56,50,984 shares of Rs 5 each.

The industry

The CARE industry report values the global farm equipment market at USD 113 billion in CY20, rising to around USD 148 billion in CY25, and projects about USD 200 billion by CY30 at a CAGR of 6%, driven by mechanisation in emerging economies, GPS-based tractors and precision farming systems. India's domestic farm equipment market grew from Rs 769 billion in FY20 to Rs 1,397 billion in FY26, a CAGR of about 10.5%, helped by tractor demand, subsidies, credit access, custom-hire and FPO promotion. The report expects the Indian market to reach Rs 1,876 billion by FY30, a CAGR of 7.7% from FY26 to FY30, as growth shifts from first-time adoption to replacement demand and precision agriculture.

Customer concentration: On a restated basis the top five customers gave 40.84% of revenue from operations in FY2026, 47.70% in FY2025 and 51.98% in FY2024, and the single largest customer gave 25.21%, 21.86% and 19.36%. Seth Agro Industries was the largest customer in FY2026 with Rs 104.35 crore of revenue.