Polite Powertech IPO

Strengths · 7

• 01Revenue from operations grew from Rs 24.65 crore in FY2024 to Rs 155.63 crore in FY2025, and was Rs 97.32 crore in the six months to 30 September 2025.
• 02Order book stood at Rs 313.56 crore on 31 December 2025, against Rs 200.58 crore at the end of FY2025.
• 03EBITDA margin rose from 6.30% in FY2024 to 13.91% in FY2025 and 17.64% in the six months to September 2025.
• 04Total borrowings fell from Rs 7.30 crore on 31 March 2025 to Rs 2.00 crore on 30 September 2025, and debt to equity was 0.04 times.
• 05Promoters and the promoter group hold 89.10% before the issue, so the founders keep a large stake.
• 06The business covers transmission lines, underground cabling, substations and solar EPC, which spreads the order book over several project types.
• 07The industry report expects installed power capacity to grow at about 10% a year between FY25 and FY32.

Risks · 10

• 01Customer concentration is very high. The top 5 customers gave 87.85% of revenue in the six months to September 2025 and 83.67% in FY2025.
• 02Public sector undertakings account for 82.41% of the order book on 31 December 2025, so a slowdown in PSU tenders would hit order inflow.
• 03Operating cash flow was negative at Rs -8.17 crore in the six months to September 2025 and Rs -0.46 crore in FY2025, even though profit after tax was positive.
• 04Trade receivables rose from Rs 12.02 crore on 31 March 2024 to Rs 70.48 crore on 30 September 2025, so the business is working capital heavy.
• 05The company is young. It was incorporated in March 2023 and much of its FY2024 order book came from the legacy firm Patel Electricals.
• 06Operations are concentrated mostly in Gujarat, and the top 5 suppliers gave 62.88% of purchases in the six months to September 2025.
• 07Return on equity of 156.55% in FY2025 is computed on a very small equity base, as net worth was only Rs 15.68 crore on 31 March 2025.
• 08Of the fresh issue, Rs 100.00 crore is for working capital and the rest goes to general corporate purposes, which can be up to 25% of gross proceeds.
• 09Promoter Yogeshkumar Narottambhai Patel sells up to 25,00,000 shares in the offer for sale at a weighted average cost of Rs 0.59 per share.
• 10Two tax proceedings against the promoters involve Rs 14.73 lakh, and two promoters are engaged in other power sector businesses, which may cause conflicts of interest.

Polite Powertech Limited is an engineering, procurement and construction (EPC) company in power infrastructure. It designs, supplies, installs, tests and commissions power transmission, distribution and renewable energy projects across India. Its core work is high-voltage and extra-high-voltage transmission lines, underground and overhead cabling, solar EPC projects, and air-insulated and gas-insulated substations.

The roots of the business go back to M/s Patel Electricals, a proprietary firm set up in 2006 by promoter Yogeshkumar Narottambhai Patel. That firm did wiring work for commercial, housing and industrial buildings. The company was incorporated on 4 March 2023 and took over the electrical trading and EPC contracting business of Patel Electricals through a Business Transfer Agreement dated 6 January 2024, for Rs 1,69,09,949.79. It became a public limited company on 30 September 2025.

The order book was Rs 313.56 crore on 31 December 2025, against Rs 200.58 crore at the end of FY2025 and Rs 175.76 crore at the end of FY2024. Distribution and transmission line projects are 66.37% of the December 2025 order book. Underground cabling is 19.15% and solar EPC is 13.11%. Public sector undertakings, directly or through other private contractors, account for 82.41% of the order book.

The company completed 47 projects in FY2025 and 33 in the six months to 30 September 2025. It had 37 ongoing projects and 13 customers in that six-month period. Its operations are mostly in Gujarat. It had 80 employees on 30 September 2025, up from 35 on 31 March 2024.

The registered and corporate office is at Pragati Tower, Bhedwad, Pandesara, Surat. The company is led by Yogeshkumar Narottambhai Patel as Chairman and Managing Director.

The industry

India is the world's third largest producer and consumer of energy, with installed power generation capacity of about 513 GW as of December 2025, growing 11.2% year on year. Renewable capacity grew at a CAGR of 14.2% over FY19 to FY25. The industry report expects total installed capacity to grow at about 10% a year between FY25 and FY32, renewables at about 17% and solar at about 19%. Electricity distribution is mainly handled by state-owned DISCOMs, and reforms are aimed at improving their efficiency and finances.

Customer concentration: Top 5 customers gave 87.85% of revenue in the six months to 30 September 2025 and 83.67% in FY2025. The top customer alone gave 35.00% and 36.24%.