Jai Parvati Forge IPO

Strengths · 7

• 01Revenue from operations grew from Rs 321.09 crore in FY2024 to Rs 420.48 crore in FY2026, with growth of 21.42% in FY2026.
• 02EBITDA margin rose from 15.24% in FY2024 to 18.14% in FY2026, and PAT margin from 7.42% to 9.80%.
• 03Operating cash flow was Rs 56.22 crore in FY2026 against Rs 34.81 crore in FY2025.
• 04Total debt to equity improved from 0.75 in FY2024 to 0.60 in FY2026.
• 05Machining capacity utilisation rose to 88.95% in FY2026 from 72.67% in FY2024.
• 06The company has over 800 active products and four owned manufacturing units, with design, die making, forging and machining under one roof.
• 07RoE was 22.29% and RoCE was 20.18% in FY2026.

Risks · 10

• 01The top 10 customers gave 79.19% of revenue from operations in FY2026, and the top 5 gave 55.58%.
• 02The top 10 suppliers made up 88.01% of net raw material purchases in FY2026, and there are usually no long-term contracts with them.
• 03The tractors and agriculture equipment industry gave 63.17% of product sales in FY2026, and the automotive sector gave 99.80%.
• 04Punjab and Maharashtra together gave 48.82% of product sales in FY2026, and most manufacturing is in Punjab.
• 05The Consent to Establish for the Unit III expansion, which the fresh issue partly funds, has not been received.
• 06The promoter selling shareholder offers up to 90,00,000 shares in the OFS, and the company gets no money from it.
• 07General corporate purposes is one of the three objects of the fresh issue and its amount is not yet stated.
• 08Net working capital was 102 days of revenue in FY2026, and total borrowings were Rs 123.53 crore.
• 09Tax proceedings against the company involve show cause notices where the demand is not yet ascertained.
• 10Capacity utilisation in forging was 78.72% in FY2026 against 82.92% in FY2024.

Jai Parvati Forge Limited is an integrated maker of forged and machined components with over 22 years of operating history. It is based at Village Bhagwanpur, Barwala Road, Dera Bassi, Mohali in Punjab.

The company supplies transmission, driveline, axle and hydraulic components in the 1 kg to 70 kg range to OEMs in the tractor, commercial vehicle, off-highway and industrial segments. It has over 800 active products. Its range falls into bull gears, gears and shafts, and precision machined parts.

The company handles the steps in-house: product design support, die development, forging, heat treatment, gear cutting, gear tooth grinding, induction hardening, precision machining and sub-assembly. It owns three manufacturing units in Mohali, Punjab and one in Solan, Himachal Pradesh. It also owns two land parcels in Mohali and holds no leasehold property.

Most sales are in India. Between April 2024 and March 2026 the company also exported to the United States, Turkey, Belgium and Italy. The tractors and agriculture equipment industry gave 63.17% of its product sales in FY2026, and the automotive sector gave 99.80%.

In FY2026 the forging plants had an installed capacity of 32,100 MT, used at 78.72%. Machining capacity was 21,98,172 units, used at 88.95%. The company had 1,082 employees on payroll. It acquired the proprietorship D.S. Engineers, owned by promoter Suman Chauhan, with effect from 1 April 2026. The pro forma numbers in the document include that business, and the restated numbers do not.

The industry

The document cites a CRISIL report. India is described as one of the world's largest tractor markets, helped by small landholdings, rising farm mechanisation and government schemes. India is the third-largest commercial vehicle market, with production of 1.17 million units in fiscal 2026 and a five-year CAGR of 13.4%. Automotive forging output rose from 1.05 million metric tons in fiscal 2021 to 1.66 million tons in fiscal 2026, a CAGR of 9.6%.

Customer concentration: Top 5 customers gave 55.58% of FY2026 revenue from operations (60.97% in FY2025), and the top 10 gave 79.19%.