Online Instruments (India) IPO

Strengths · 7

• 01Revenue from operations grew from Rs 335.94 crore in FY2023 to Rs 547.43 crore in FY2025, and profit grew from Rs 15.52 crore to Rs 35.33 crore.
• 02Return on equity was 24.43% and return on capital employed was 27.54% in FY2025, against 17.94% and 21.34% in FY2023.
• 03EBITDA margin rose from 6.73% in FY2023 to 10.10% in FY2025.
• 04The company runs India's first CKD facility for IFPDs, per the industry report, with installed capacity of 223,200 IFPDs a year on three shifts.
• 05Net working capital days fell from 93 in FY2023 to 73 in FY2025.
• 06The Level 3 Audio Visual acquisition adds the United States market; proforma revenue from outside India was 44.52% in the nine months ended 31 December 2025.
• 07Promoters have not bought shares in the last three years, and promoters with the promoter group hold 100.00% before the issue.

Risks · 10

• 01AVSI gave 72.76% of revenue in the nine months ended 31 December 2025 and 83.80% on a proforma basis, with no long-term agreements that carry minimum purchase obligations.
• 02The top 10 customers gave 58.30% of revenue in the nine months ended 31 December 2025, against 46.55% in FY2024. The top 5 gave 40.11%.
• 03The top 10 suppliers were 55.18% of purchases in the nine months, and imports were 44.00% of purchases, with 28.17% from China.
• 04Cash flow from operating activities was negative Rs 21.00 crore in the nine months ended 31 December 2025 while the company reported a profit of Rs 14.58 crore.
• 05Total borrowings rose from Rs 41.22 crore at 31 March 2025 to Rs 209.56 crore at 31 December 2025, and net debt to equity rose from 0.25 to 1.18.
• 06The IFPD manufacturing business is new. The CKD facility started in November 2024 and the EMS business started in November 2025.
• 07Rs 330.00 crore of the fresh issue is for working capital and the amount for unidentified acquisitions and general corporate purposes is not yet fixed. Together they can be up to 35% of gross proceeds.
• 08Eight tax proceedings are pending against the company, involving Rs 34.42 crore excluding interest and penalties.
• 09The two promoter sellers are offering 57,10,000 shares at a weighted average cost of Rs 0.01 per share, so the offer for sale money goes to them and not to the company.
• 10The company has related party transactions, and the Level 3 Audio Visual acquisition may not reach its financial and strategic objectives.

Online Instruments (India) Limited is a Bengaluru company that provides audiovisual systems integration (AVSI) solutions. It designs and installs unified communications and collaboration setups, smart conference rooms, large auditoriums, network operating command centres and customer experience centres. These solutions are sold under the Online Instruments and Level 3 Audiovisual brands. Customers include enterprise, healthcare, banking, manufacturing, retail and education clients, and airports.

The company also has an AV Products business under the LOGIC brand. It makes interactive flat panel displays (IFPDs), and sells LED display products and audiovisual accessories. These are sold through distributors, mainly two national distributors in India. Since November 2025 it also makes white-labelled IFPDs for other brand owners, which it calls its EMS business. A commercial lighting business under the Orange Plus brand made Rs 16.55 crore of revenue in FY2025.

In the nine months ended 31 December 2025, AVSI gave 72.76% of revenue from operations, AV Products 21.37%, EMS 3.20% and commercial lighting 2.67%. The company has three manufacturing facilities, all in Bengaluru. One of them is a completely knocked down (CKD) facility for IFPDs that began commercial operations in November 2024. Its installed capacity was 223,200 IFPDs a year on three shifts. The company runs it on one shift a day, so the available capacity was 55,800 IFPDs for the nine months.

On 29 December 2025 the company bought 100% of Level 3 Audio Visual, LLC, based in Arizona, United States. This takes AVSI work into the United States, Mexico and France. On a proforma basis, revenue from customers outside India was 44.52% of the nine months total, against 8.10% on the restated numbers. The promoters have over 20 years of experience in the audio-visual industry.

The industry

The industry report (1Lattice) says the Indian professional audio-visual systems market grew from Rs 424.1 billion in Fiscal 2020 to Rs 581.9 billion in Fiscal 2025, a CAGR of 6.5%. It is projected to reach Rs 968.9 billion by Fiscal 2030, a CAGR of 10.7%. The Indian IFPD market grew from Rs 15.3 billion to Rs 27.1 billion over the same years and is projected to reach Rs 81.8 billion by Fiscal 2030. The global Pro AV market was US$ 279.9 billion in Calendar 2025, and the US market was US$ 77.0 billion.

Customer concentration: Top 5 customers gave 40.11% of revenue in the nine months ended 31 December 2025 (40.05% in FY2025). Top 10 customers gave 58.30% and 53.03%.