Madhur Iron & Steel India IPO

Strengths · 7

• 01Revenue from operations rose from Rs 192.85 crore in FY2023 to Rs 339.56 crore in FY2025, a CAGR of 32.69% as stated in the document.
• 02Profit after tax grew from Rs 6.53 crore in FY2023 to Rs 18.12 crore in FY2025.
• 03EBITDA margin moved from 7.19% in FY2023 to 10.34% in FY2025, as stated in the document.
• 04Installed capacity went up from 44,100 MT in FY2024 to 56,700 MT, and utilisation was 82.87% in the six months to 30 September 2025.
• 05The promoter holds 73.89% before the issue, and the entire issue is fresh capital with no offer for sale.
• 06Return on equity was 26.50% and return on capital employed was 17.76% in FY2025, as stated in the document.
• 07The company sells into several end uses including railway electrification, state electricity boards and telecom towers.

Risks · 9

• 01The top ten customers gave 77.79% of revenue in the six months to 30 September 2025 and 56.34% in FY2025. The top customer alone gave 20.44% in the six-month period.
• 02Operating cash flow was negative Rs 42.90 crore in FY2025 and negative Rs 23.79 crore in FY2024, because working capital grew faster than profit.
• 03Trade receivables rose from Rs 1.80 crore in FY2024 to Rs 41.73 crore in FY2025 as new customers got extended credit terms.
• 04Total borrowings rose from Rs 30.00 crore in FY2023 to Rs 101.32 crore at 30 September 2025, and the debt equity ratio was 0.90 in FY2025.
• 05Rs 75.80 crore of the proceeds is for a new unit at Boria, Bemetara, and the company has not yet received the land conversion approval or placed orders for machinery.
• 06Related parties are large buyers and suppliers. Sales to Shri Ashutosh Structure Private Limited were Rs 15.75 crore, or 8.18% of turnover, in the six months to 30 September 2025.
• 07All operations are at one plant in Bhilai, and a major share of revenue comes from Chhattisgarh.
• 08General corporate purposes are not yet fixed and can be up to 25% of the gross proceeds.
• 09The promoter's average cost of acquisition is Rs 0.43 per share, and the company says it has no long-term contracts with customers.

Madhur Iron & Steel (India) Limited was incorporated on 24 February 2012 in Chhattisgarh. It became a public limited company in 2024. Its registered office and only plant are at Light Industrial Area, Bhilai, Durg, on about 3 acres of land.

The company works on a business-to-business, order-based model. It sells to institutional customers, contractors and fabricators. It runs two verticals: manufacturing of structural steel products and trading of steel products. The manufactured range is angles, channels, MS sections, flats and rods, made by heating steel billets or blooms in a furnace and rolling them to the customer's specification.

The products go into railway electrification, state electricity boards, power and energy infrastructure, telecom towers, automotive and ancillary units, offshore structure fabrication, construction and general engineering. The company has no long-term contracts with customers and works mostly on individual purchase orders.

Installed capacity was 56,700 MT at 30 September 2025, up from 44,100 MT in FY2024. Capacity used was 67.14% in FY2025 and 82.87% in the six months to 30 September 2025. The company has no subsidiary.

The company has signed an agreement to acquire an operating fabrication unit of B.S.L. Railtrack Engineers in Bhilai. Once transferred, it is meant to make transmission line towers, sub-station structures and solar mounting structures. This unit is still waiting for government approvals and transfer formalities.

The promoter and Managing Director is Jayant Agrawal. The issue is a fresh issue only, so all the money goes to the company. Share India Capital Services is the only lead manager.

The industry

As per the CareEdge report quoted in the document, India had installed steel production capacity of 196.6 million tonnes in FY25 (April to December 2024) and consumed 152 MT of finished steel, which makes it the second-largest consumer. Per capita finished steel use in CY24 was 102.6 kg against a global average of 214.7 kg. The National Steel Policy 2017 targets 300 MT of capacity and 160 kg per capita use by CY30. Finished steel output grew at a 7.4% CAGR from FY20 to FY25, from 103 million tonnes to 147 million tonnes.

Customer concentration: Top 10 customers gave 56.34% of FY2025 revenue (57.36% in FY2024) and 77.79% in the six months to 30 September 2025.