Jerai Fitness IPO

Strengths · 6

• 01Revenue from operations grew from Rs 108.50 crore in FY2024 to Rs 128.05 crore in FY2025, and profit after tax rose from Rs 17.97 crore to Rs 23.40 crore.
• 02EBITDA margin was 24.38% in FY2025 and 26.72% in FY2024, and PAT margin was 18.28% in FY2025.
• 03Debt is very low. Total borrowings were Rs 1.49 crore against a net worth of Rs 104.57 crore at 31 March 2025, a debt to equity ratio of 0.01.
• 04Return on equity was 25.19% and return on capital employed was 33.97% in FY2025.
• 05Capacity utilisation at the Wada plant improved from 58.23% in FY2023 to 69.63% in FY2025, and a second plant of 107,804.33 sq. ft. is under construction.
• 06Receivable days were only 7 in FY2025, so the company collects payment quickly.

Risks · 10

• 01Strength training equipment gave 77.95% of revenue from operations in FY2025, so the business depends on one product category.
• 02Commercial gyms gave 60.77% of revenue from operations in FY2025. Fewer gym openings or lower member enrolment would cut orders.
• 03All manufacturing is at one facility in Wada, Palghar. A shutdown there would hit most of the revenue.
• 04The whole issue is an offer for sale of up to 43,92,500 shares. The company gets no money and all proceeds go to the selling shareholders.
• 05Inventory days were 202 and the cash conversion cycle was 160 days in FY2025, so a large amount of cash is tied up in stock.
• 06Other income rose to Rs 6.70 crore in FY2025 from Rs 2.05 crore in FY2024, which lifted profit before tax.
• 07Revenue from operations fell from Rs 115.43 crore in FY2023 to Rs 108.50 crore in FY2024 before recovering.
• 08Products last long, so repeat business is low and the company must keep finding new customers and projects.
• 09A dispute over franchise fees is listed as a contingent liability of Rs 6.00 crore at 31 March 2025.
• 10Some Promoter Group members are disclosed from public information, and the document says an estranged Promoter Group is not fully disclosed.

Jerai Fitness Limited sells fitness equipment under its own Jerai Fitness brand. It makes strength training equipment in-house and buys cardiovascular equipment from third-party suppliers, which it retails under its brand. The range is split into 11 series, each aimed at a different customer segment and price point. These include the Cardiovascular, Proton, X-Tend, Clubline Plus, Falcon, Benches and Racks, JX Fit and Home gym and Accessories series.

The company was incorporated in Mumbai on 17 March 1994 as Jerai Fitness Private Limited. It became a public limited company in July 2022. Rajesh Ramsukh Rai is the Chairman and Managing Director and Rinku Rajesh Rai is a Whole-time Director. Both are promoters.

All manufacturing happens at one facility in Wada, Palghar, Maharashtra, on a plot of 145,530.76 sq. ft. A second plant of 107,804.33 sq. ft. next to it is under construction and is expected to be operational by Fiscal 2027. The annual capacity is 21,000 units and capacity utilisation was 69.63% in FY2025, up from 58.23% in FY2023. The company sold 13,842 units of strength equipment in FY2025.

Strength training equipment gave Rs 99.82 crore, or 77.95% of revenue from operations, in FY2025. Sales to commercial gyms gave Rs 76.90 crore, or 60.77%. The company sells to government, business and retail customers. Exports were 7.70% of sales in FY2025 and went to 14 countries. As of 31 August 2025 the company had 337 full-time employees on its payroll.

The industry

The global fitness equipment market was estimated at US$ 12.8 billion in 2024, growing at a CAGR of 3%, and is expected to reach US$ 17.2 billion by 2029 at a CAGR of 6%. The Indian fitness equipment market was Rs 2,500 crore in 2024, up from Rs 1,500 crore in 2019, a CAGR of 11%. It is expected to reach Rs 4,600 crore by 2029 at a CAGR of 13%. The report names more gyms, growth of gyms in Tier 2 and Tier 3 cities and a young population with higher incomes as the drivers (Source: Wazir Report).

Customer concentration: Commercial gyms gave 60.77% of revenue from operations in FY2025 (62.28% in FY2024).