LEAP India IPO

Strengths · 5

• 01Pallet use in India is still very low. Only about 15% of goods movement here uses pallets, against more than 90% in North America and Europe. So there is a long runway for growth.
• 02It is the largest on-demand asset pooling company in India, with about 90% share of the pallet pooling market. It is not easy for new players to enter this business.
• 03It is a trusted supply chain partner. The company focuses on quality and sustainability, and keeps changing its offering as customer needs change.
• 04The pay-per-use model gives steady income. The company has more than 1,000 blue-chip customers in fast growing sectors like FMCG, food and beverage, 3PL and quick commerce.
• 05It is backed by global investment firm KKR, which is a promoter along with founder Sunu Mathew.

Risks · 8

• 01The issue is priced very high. At the upper band of Rs 159, the post-issue P/E works out to about 112 times the FY2026 earnings of Rs 1.42 per share. There is very little room for any disappointment.
• 02Returns are low for such a high price. ROE was 6.48% and RoNW was 6.19% in FY2026, even though the EBITDA margin was a healthy 50.69%.
• 03The business needs a lot of money. Total borrowings went up from Rs 513.07 crore in FY2024 to Rs 1,017.73 crore in FY2026. Debt to equity is 1.01. Only Rs 360 crore of the fresh issue will be used to repay loans.
• 04Out of the total issue of Rs 2,480 crore, Rs 2,000 crore is offer for sale. The company will get only Rs 480 crore. KKR is the main seller and promoter holding will come down from about 95.73% to 60.61%.
• 05The company depends heavily on one product. Pallets gave 62.17% of the revenue from operations in FY2026. Any problem in the pallet business will hit the company hard.
• 06Supplier concentration is high. The top ten suppliers and service providers made up 63.27% of total purchases in FY2026. Prices of timber and plastic can also go up and down.
• 07Income comes from long-term contracts. If big customers do not renew them, or if payments are delayed, cash flow will be affected.
• 08Growth has been very fast. Revenue went up 54% and profit went up 66% in FY2026. Such high growth may not continue every year.

LEAP India Limited was started in 2013. It is the largest on-demand supply chain asset pooling company in India. The company does not sell its equipment. It rents out reusable assets on a pay-per-use basis. Customers pay only for what they use. They do not have to buy the equipment or spend money on its repair and storage.

The company gives on rent wooden pallets that can carry loads up to 5 tonnes, foldable and stackable plastic containers, and material handling equipment such as forklifts, articulated forklifts and very narrow aisle (VNA) forklifts. Along with this, it also provides returnable packaging, inventory management, transport, and repair and maintenance services.

LEAP India works with companies in FMCG, food and beverage, third-party logistics, e-commerce and quick commerce, automotive, industrial and consumer durable sectors. As on 31 March 2026, it had more than 1,000 customers. Some of the well-known names are Hindustan Coca-Cola Beverages, Marico, Toll (India) Logistics, Daikin Airconditioning India and Panasonic Life Solutions India. On the same date, the company had 419 permanent employees and 2,062 MHE operators.

Pallets are the main business. They gave 62.17% of the revenue from operations in FY2026. The company holds about 90% share of the pallet pooling market in India. Global investment firm KKR bought a majority stake in the company in 2023 through Vertical Holdings II Pte. Ltd. It is now a promoter along with founder Sunu Mathew.

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