Laxyo IPO

Strengths · 7

• 01Revenue from operations rose from Rs 133.81 crore in FY2023 to Rs 174.31 crore in FY2024 and Rs 211.11 crore in FY2025.
• 02Profit after tax grew from Rs 4.93 crore in FY2023 to Rs 11.65 crore in FY2025.
• 03EBITDA margin was 14.16% in FY2025, against 11.11% in FY2024.
• 04Return on equity was 19.36% in FY2025, up from 13.03% in FY2024.
• 05The company holds a 22% domestic share in raise boring, the 2nd largest position, as per the KEN Research report.
• 06It is one of only about 5 Indian players using PQRS machines for mechanised track renewal, and laid 70 km of track with its own PQRS machine in FY2025.
• 07Promoters and promoter group hold the entire pre-issue equity, with 89.00% held by the five promoters.

Risks · 10

• 01The top five customers gave 95.67% of revenue from operations in FY2025 and 84.72% in the six months ended 30 September 2025.
• 02Government or government-owned customers account for 81.72% of the order book as of 31 January 2026.
• 03Railway projects make up 67.89% of the order book as of 31 January 2026.
• 04Madhya Pradesh gave 47.99% of revenue in FY2025 and 44.20% in the six months ended 30 September 2025.
• 05Cash flow from operations was Rs 3.53 crore in FY2025 against profit after tax of Rs 11.65 crore, and Rs 4.84 crore in the six months to September 2025.
• 06Total borrowings rose to Rs 86.31 crore as of 30 September 2025 from Rs 53.03 crore as of 31 March 2025, and debt to equity was 1.30 times.
• 07The company has not yet placed orders for the equipment it plans to buy with Rs 9.75 crore of the issue money.
• 08The working capital requirement of Rs 23.00 crore has not been appraised by any bank or financial institution.
• 09Litigation against the company has 3 criminal and 4 material civil cases, and Rs 36.11 crore is involved; promoters face 1 criminal and 5 tax proceedings.
• 10The company uses the Regulation 6(2) route because it did not meet Regulation 6(1) eligibility, and general corporate purposes are yet to be fixed at up to 25% of the fresh issue.

Laxyo Limited, earlier called Laxyo Energy Limited, is an integrated Engineering, Procurement and Construction (EPC) and Operation and Maintenance (O&M) service provider with over 15 years of experience. It works in four areas: railway infrastructure, mining and raise boring, dredging and reclamation, and O&M for industrial and thermal plants. The company reports them as a single business segment.

In railways, Laxyo does track linking, gauge conversion, bridging and station redevelopment. The offer document says it is one of only about 5 Indian players using PQRS (Plasser Quick Relaying System) machines for mechanised track renewal. In mining, it offers surface mining and raise boring, a method of drilling vertical shafts without explosives. The KEN Research report puts its domestic raise boring market share at 22%, which makes it the 2nd largest operator.

Dredging covers underwater excavation and desilting for ports, rivers and canals. O&M covers mechanical and electrical maintenance for turbines, boilers and ash handling systems at heavy industries. The company may also rent out equipment on an opportunistic basis, mainly where project contracts are not awarded to it.

Customers are mostly government and public sector bodies, such as Indian Railways zones (Western, North Western and West Central) and state PSUs. Private clients include Wonder Cement and Hindustan Zinc Limited. Most projects are in Gujarat, Rajasthan, Madhya Pradesh and Maharashtra. The company has also entered Zambia through its subsidiary Laxyo Evapeta Zambia Limited for raise boring work.

The registered office is in Indore, and the corporate office and warehouse facilities are leased in Ratlam, Madhya Pradesh. The promoters are Dev Prakash Sharma, Jai Prakash Sharma, Yogesh Sharma, Rajeshwary Sharma and Shreyansh Sharma.

The industry

The KEN Research report says railway infrastructure spending in India grew at a 12.3% CAGR from FY20 to FY25 to reach INR 1.4 lakh crore, helped by the PM Gati Shakti programme. Raise boring is projected to grow at a 6.4% CAGR to about INR 529 crore by FY31, as India targets 100 MT of underground coal production by FY31. Laxyo is placed 2nd in raise boring with a 22% market share.

Customer concentration: Top 5 customers gave 95.67% of revenue from operations in FY2025, 87.64% in FY2024 and 89.60% in FY2023.