PES Installations IPO

Strengths · 8

• 01Revenue from operations grew 37.65% to Rs 110.56 crore in FY2026 from Rs 80.32 crore in FY2025.
• 02EBITDA margin widened to 29.91% in FY2026 from 24.49% in FY2025 and 20.57% in FY2024.
• 03Profit after tax rose to Rs 23.12 crore in FY2026 from Rs 13.10 crore in FY2025.
• 04Modular Operation Theatre revenue more than doubled to Rs 72.64 crore in FY2026 from Rs 34.82 crore in FY2025.
• 05Return on capital employed was 36.77% and return on net worth 36.50% in FY2026.
• 06Total borrowings were Rs 15.89 crore against net worth of Rs 74.77 crore as on 31 March 2026, and borrowings have fallen from Rs 17.33 crore a year earlier.
• 07The company has been in the business since its incorporation on 23 November 1995 and now sells across 19 states and 1 union territory.
• 08The statutory auditors have recorded no qualification, reservation, adverse remark or matter of emphasis for the three years in the draft prospectus.

Risks · 10

• 01The largest customer gave Rs 46.72 crore or 42.26% of FY2026 revenue from operations, against 12.97% in FY2025, so one contract decides a large part of the year.
• 02The top 10 customers gave 78.33% of FY2026 revenue from operations, up from 45.33% in FY2025.
• 03Maharashtra gave 55.63% and Delhi 11.56% of FY2026 revenue from operations, which concentrates the business in two regions.
• 04Net cash generated from operating activities was only Rs 2.88 crore in FY2026 against profit after tax of Rs 23.12 crore, so working capital is absorbing almost all the profit.
• 05Revenue from operations fell 17.40% in FY2025 to Rs 80.32 crore from Rs 97.24 crore in FY2024, so the record is not a straight line.
• 06All manufacturing is at one facility of about 1,908 square metres at Rai Sonepat, Haryana, and the draft prospectus lists disruption at this facility as a risk.
• 07The business is tender and contract driven, and the company states that its order book is not necessarily indicative of future revenue.
• 08The entire fresh issue is for working capital of Rs 6,300.00 lakh and general corporate purposes, so no part of it adds manufacturing capacity.
• 09The offer for sale of up to 24,83,360 equity shares is entirely by the three promoters, whose weighted average cost of acquisition is Rs 1.80 to Rs 2.60 per share, and the company receives nothing from this part.
• 10There are 8 tax proceedings and 1 material civil litigation against the company with an aggregate amount of Rs 580.64 lakh.

PES Installations Limited, formerly PES Installations Private Limited, provides hospital infrastructure solutions to healthcare facilities across India. Its four principal business segments are Medical Gas Pipeline Systems, Modular Operation Theatres, Pneumatic Tube Systems and Nurse Call Systems. For each of these the company handles design and engineering, procurement, manufacture, supply, installation, testing and commissioning, and then provides maintenance and support services. It also takes up turnkey hospital projects that add CSSD solutions, building management systems, fire and life safety systems, integrated security systems, hospital furniture and medical equipment to that scope.

Revenue is reported under two heads, Sale of Goods and Sale of Services. Sale of Goods gave Rs 103.72 crore or 93.81% of FY2026 revenue from operations, and maintenance and after sales services gave Rs 6.85 crore or 6.19%. Within goods, Modular Operation Theatres was the largest line at Rs 72.64 crore or 65.70% of FY2026 revenue, ahead of Medical Gas Pipeline Systems at Rs 23.65 crore or 21.39%, Nurse Call Systems at Rs 3.79 crore or 3.42% and Pneumatic Tube Systems at Rs 3.64 crore or 3.29%. In FY2025 the mix was different, with Medical Gas Pipeline Systems at 34.79% and Modular Operation Theatres at 43.35% of revenue from operations.

Customers are hospitals and other healthcare institutions in both the government and the private sector, and the business is largely tender and contract driven. The company says it operates across 19 states and 1 union territory, having grown from its founding base in New Delhi. Maharashtra accounted for 55.63% and Delhi for 11.56% of revenue from operations in FY2026.

Manufacturing is done at a single facility at Plot No. 2025, Sector 38, Phase II, HSIIDC Industrial Estate, Rai Sonepat, Haryana, spread over about 1,908 square metres. The registered and corporate office at Best Business Park, NSP Pitampura, Delhi is on leased premises. The company holds ISO 9001:2015 and ISO 14644-1:2015 certification, CE certification for specified medical and surgical products and a manufacturing licence from the Food and Drugs Administration, Haryana.

The company was incorporated on 23 November 1995 and is run by the Chadha family. Raghunandan Paul Chadha, aged 80, is the Managing Director and has over 30 years of experience in hospital infrastructure and medical engineering. Pankaj Chadha, aged 51, has been a director since incorporation and has 31 years of experience, and Gaurav Chadha, aged 47, has been a director since 29 April 2005 with over 21 years of experience. Both are Whole-time Directors.

The industry

The CARE report in the draft prospectus describes India's hospital infrastructure industry as going through a phase of structural expansion and modernisation, driven by the need to add hospital capacity, strengthen critical care infrastructure and spread healthcare facilities more evenly across the country. It cites NITI Aayog on hospital beds and hospitalisation services being concentrated in urban areas, and on India having historically had lower hospital bed density than global and comparable income group averages. The report says government policy is moving beyond simply adding beds towards more resilient, technology enabled and higher acuity infrastructure, which is the kind of work PES Installations sells. The draft prospectus does not give a market size or growth rate for this industry. The company places itself in this market with four product segments and revenue from operations of Rs 110.56 crore in FY2026.

Customer concentration: The top 5 customers gave 64.46% of FY2026 revenue from operations, against 31.69% in FY2025, and the largest customer alone gave 42.26%.