Ratnadeep Retail IPO

Strengths · 7

• 01Revenue from operations rose from Rs 1,680.04 crore in FY2024 to Rs 1,987.72 crore in FY2025 and Rs 2,223.14 crore in FY2026, which is 11.84% growth in FY2026.
• 02EBITDA was Rs 111.33 crore in FY2026 against Rs 41.89 crore in FY2025, and EBITDA margin moved from 2.11% to 5.01%.
• 03Profit after tax was Rs 36.70 crore in FY2026 after a loss of Rs 26.69 crore in FY2025, with return on equity of 30.80%.
• 04Cash flow from operating activities was Rs 107.44 crore in FY2026, up from Rs 30.56 crore in FY2025 and Rs 26.85 crore in FY2024.
• 05Private label products gave 28.23% of FY2026 revenue from operations, and gross margin was 23.30% against 22.56% in FY2025.
• 06National Mart revenue grew from Rs 170.50 crore in FY2024 to Rs 716.63 crore in FY2026, and its same store sales growth was 12.26% in FY2026.
• 07Net working capital days stood at 16.60 in FY2026 and average bill value rose from Rs 430.61 in FY2024 to Rs 482.18 in FY2026.

Risks · 10

• 01Telangana gave 90.78% of revenue from operations in FY2026, so a local setback would hit most of the business.
• 02FMCG and staples together gave 78.23% of FY2026 revenue, which exposes the company to price and demand swings in these categories.
• 03The company made a loss of Rs 26.69 crore in FY2025, and profits may not keep rising.
• 04Overall same store sales growth was negative at 4.56% in FY2026 and 4.13% in FY2025. For the Ratnadeep format it was negative at 7.92% in FY2026.
• 05Total borrowings were Rs 168.83 crore against net worth of Rs 136.50 crore as of 31 March 2026.
• 06Of the Rs 400 crore fresh issue, Rs 40.00 crore goes to repay loans, Rs 260.03 crore goes to new stores and the rest is unspecified general corporate purposes, capped at 25% of gross proceeds.
• 07Three promoters sell up to 1,48,60,000 shares in the offer for sale. Their weighted average cost of acquisition is Rs 0.01, Negligible and Nil, so the sale money goes to them and not to the company.
• 08Litigation against the company includes 10 criminal proceedings and 14 tax proceedings, with Rs 10.65 crore involved against the company, and 2 criminal proceedings against the promoters.
• 09The company depends on third-party suppliers, with the top 10 suppliers at 23.93% of cost of goods sold in FY2026, and does not manufacture in-house.
• 10The statutory auditors included certain matters in the annexures to the audit reports for FY2026, FY2025 and FY2024, though there is no audit qualification.

Ratnadeep Retail Limited is an organised retailer of food, grocery and fashion, based in Hyderabad. It sells fresh produce, FMCG, staples, general merchandise and apparel. As of 31 March 2026 it ran 190 stores with a retail business area of 1.21 million square feet across 20 cities in Andhra Pradesh, Telangana and Karnataka.

The company has two store formats. Ratnadeep has 173 stores and covers neighbourhood supermarkets called Ratnadeep Mindful Living and premium food stores called Ratnadeep Select. National Mart has 17 stores and is a value-led hypermarket format, which also sells affordable fashion under the Style Mart name. Of the 190 stores, 153 Ratnadeep stores and 15 National Mart stores are in Telangana.

FMCG gave 52.50% of FY2026 revenue from operations and staples gave 25.73%. Fresh produce gave 13.12% and general merchandise and apparel gave 8.65%. Private label products gave Rs 627.58 crore, which is 28.23% of revenue from operations. The company reports only one segment, organised retail.

The company does not manufacture its products. It buys from third-party suppliers, and its top 10 suppliers made up 23.93% of cost of goods sold in FY2026. Operations are supported by two warehouses at Pudur in Telangana and Vijayawada in Andhra Pradesh, with a combined area of 0.40 million square feet. For fresh produce it has two collection centres, at Chikkaballapura near Bengaluru and Vantimamidi in Hyderabad. A processing and packaging hub at Pudur of about 70,000 square feet supports private label grocery.

The promoters are Sandeep Agarwal, Manish Bhartiya, Mitesh Bhartiya, Yash Agarwal and Kavita Agarwal. Sandeep Agarwal is Chairman and Managing Director and has about 25 years of experience in retail. The company files its draft offer document under Regulation 6(2) of the SEBI ICDR Regulations, because it did not have an average operating profit of at least Rs 15 crore over the three years ended 31 March 2026.

The industry

The industry report by 1Lattice says food and grocery is 64.2% of total Indian retail in FY2026 and is mainly sold offline, through general trade and modern trade. South India's food and grocery market is estimated at Rs 18.3 trillion in FY2026, up from Rs 9.9 trillion in FY2020. It grew at a CAGR of 10.9% over FY2020 to FY2026 and is projected to reach Rs 31.8 trillion by FY2031, a growth rate of 11.6% over FY2026 to FY2031P.

Customer concentration: Not applicable, as the company sells to retail customers. Its top 10 suppliers gave 23.93% of cost of goods sold in FY2026 and FY2025 and 27.02% in FY2024.