Punjab Carbonic IPO

Strengths · 7

• 01Revenue from operations grew from Rs 110.38 crore in FY2023 to Rs 136.53 crore in FY2024 and Rs 488.17 crore in FY2025, helped by the start of ethanol sales.
• 02Profit after tax was Rs 26.21 crore in FY2025 against Rs 6.35 crore in FY2024, and Rs 26.19 crore in the six months to 30 September 2025.
• 03Operating cash flow was positive at Rs 31.94 crore in FY2025 and Rs 35.71 crore in the six months to 30 September 2025, after a negative Rs 5.67 crore in FY2023.
• 04Net worth rose from Rs 12.15 crore in FY2023 to Rs 30.49 crore in FY2025 and Rs 49.14 crore on 30 September 2025.
• 05Operational CO2 recovery units grew from 12 in FY2023 to 17 by 30 September 2025, spread over 23 or more states and union territories.
• 06Ethanol capacity went from 4,500 kilo litres in FY2024 to 54,000 kilo litres in FY2025, adding a second revenue line next to CO2.
• 07The statutory auditors have given no qualification or adverse remark on the financial statements in the period covered.

Risks · 10

• 01The top 10 customers gave 78.31% of revenue in the six months to 30 September 2025 and 71.20% in FY2025, up from 44.00% in FY2024.
• 02The single largest customer gave 39.97% of revenue in the six months to 30 September 2025 and 31.46% in FY2025.
• 03The company relies on third-party distilleries for CO2 and runs its CRUs on leased premises, and some arrangements carry minimum guaranteed offtake obligations that may end or not be renewed.
• 04Total borrowings were Rs 156.59 crore on 30 September 2025 against a net worth of Rs 49.14 crore, and Rs 168.98 crore on 31 March 2025.
• 05North India gave 77.09% of sales in the six months to 30 September 2025 and 80.87% in FY2025.
• 06The two proposed CRUs in Andhra Pradesh rest on non-binding letters of intent, so the timeline for using the fresh issue money may slip.
• 07Of the 95,00,000 shares in the offer, 35,00,000 are an offer for sale by four promoters, and the company gets none of that money.
• 08The promoter selling shareholders acquired their shares at weighted average costs between Rs 0.91 and Rs 1.22 per share.
• 09Litigation includes 7 tax proceedings against the company worth Rs 49.29 lakh and 5 against subsidiaries worth Rs 49.66 lakh.
• 10The company has sought exemption from naming one individual as part of the promoter group, and SEBI may not grant it in time.

Punjab Carbonic Limited is based in Bathinda, Punjab. It describes itself as an integrated carbon capture and utilisation and industrial gas company. It makes, recovers, supplies and distributes liquid carbon dioxide (CO2) and dry ice. It also designs and sets up CO2 recovery and refining units inside distilleries.

The company gets its CO2 from third-party distilleries and industrial units. It does not own dedicated CO2 plants. Instead it runs CO2 recovery units (CRUs) on leased premises. It has leased 13 other CRUs from distillery owners. Operational CRUs grew from 12 in FY2023 to 15 in FY2025 and 17 as on 30 September 2025. Installed CO2 capacity was 2,59,520 MT in FY2025, of which 1,58,746 MT was used.

The company works through two subsidiaries. Punjab Fusion Private Limited is wholly owned and is part of the CO2 and dry ice business. Pancarbo Greenfuels Private Limited runs an ethanol distillery at Village Lehri, Punjab. It sells fuel-grade ethanol to oil marketing companies. Ethanol capacity was 54,000 kilo litres in FY2025, with 43,500 kilo litres produced.

CO2 customers come from food and beverages, automobiles, chemicals and fertilisers, healthcare and pharma, and aviation. Varun Beverages Limited and Hindustan Coca Cola Beverages Private Limited are among the named top customers. The company has a presence in more than 23 states and union territories of India. It has also supplied to Sri Lanka, Nepal, Zambia and Morocco. Sales are concentrated in North India, which gave 80.87% of total sales in FY2025.

The company reports three segments: supply of carbon dioxide, supply of ethanol and DDGS, and project engineering for CO2 plants. The four promoters are Davinder Singh Kohli, Amrit Paul Singh Kohli, Jatinder Kaur Kohli and Inder Pal Kaur Kohli. Davinder Singh Kohli has over 33 years of experience in the CO2 and dry ice industry.

The industry

The industry report is by Dun & Bradstreet. It says the Indian commercial and industrial grade CO2 market grew from INR 29.9 billion in FY2021 to INR 37.3 billion in FY2025, with demand from food and beverages, chemicals, healthcare and manufacturing. On ethanol, the report says India advanced its E20 blending target from 2030 to Ethanol Supply Year 2025-26, and that policy focus has now moved to higher blending levels.

Customer concentration: Top 5 customers gave 73.35% of revenue in the six months to 30 September 2025 and 66.00% in FY2025 (31.64% in FY2024).