Ravita Engineering Services SME IPO

Strengths · 8

• 01Total income rose from Rs 13.53 crore in FY2024 to Rs 109.30 crore in FY2025, and was Rs 208.32 crore in the nine months to 31 December 2025.
• 02Profit after tax rose from Rs 1.51 crore in FY2024 to Rs 11.83 crore in FY2025, and was Rs 20.99 crore in the nine months to 31 December 2025.
• 03EBITDA was Rs 15.65 crore in FY2025, an EBITDA margin of 14.41%, and the PAT margin was 10.82%.
• 04Return on net worth was 128.31% and return on capital employed was 71.71% for FY2025.
• 05The data centre operation and maintenance order book was Rs 74.04 crore as of 31 December 2025, which gives multi-year work.
• 06The company works onshore, offshore and in data centres, so its income comes from short to medium term projects as well as long operation and maintenance contracts.
• 07The issue is priced at 15.07 times post issue earnings on an EPS of Rs 7.43 at the upper band of Rs 112, against 25.87 times on a pre issue EPS of Rs 4.33.
• 08The whole Rs 116.05 crore issue is fresh capital. Rs 66.00 crore is for long-term working capital and Rs 25.09 crore is for buying heavy equipment.

Risks · 10

• 01The latest financials cover only nine months to 31 December 2025, so the full year FY2026 figures are not yet available to compare.
• 02Return on net worth of 128.31% is for FY2025, when net worth was only Rs 15.13 crore. Net worth rose to Rs 92.51 crore by 31 December 2025, so this ratio will fall on the larger base.
• 03Net worth jumped from Rs 15.13 crore at 31 March 2025 to Rs 92.51 crore at 31 December 2025, while profit for the period was Rs 20.99 crore, so a large part of the rise did not come from earnings.
• 04Total income grew from Rs 13.53 crore in FY2024 to Rs 109.30 crore in FY2025. Such a sharp jump in a short time depends on a few large contracts that may not repeat.
• 05Debt to equity was 1.53 for FY2025, which is high borrowing against net worth.
• 06Rs 66.00 crore of the Rs 116.05 crore issue goes to working capital. That money funds contract costs and customer credit rather than new capacity.
• 07Post issue promoter holding is not yet stated. Promoters hold 73.74% before the issue, and the promoter group includes a company, Starwings Realtors Pvt.Ltd.
• 08The data centre operation and maintenance work is for one large Indian conglomerate at one site, so the loss of that client would hit income.
• 09Contract work in HVAC and offshore sites depends on winning new tenders and on timely client payments, and a delay can lock up cash.
• 10This is an SME issue. One lot is 1,200 shares, which is about Rs 1.34 lakh at the upper band of Rs 112, and SME shares usually trade in low volume after listing.

Ravita Engineering Services Limited was founded in December 2007. It takes up turnkey contracts for HVAC, central air-conditioning, air flow systems, chillers, compressors and cooling equipment for commercial and industrial sites, offshore rigs and platforms. It also runs operation and maintenance for its own projects and for systems built by others. The company has done a special sub-sea discharge pipeline job for an effluent treatment plant at Paradeep, Odisha. Its work falls in three areas: onshore (Gujarat, Maharashtra, Odisha and Karnataka), offshore (rigs, platforms and marine installations in Indian waters) and data centres. In data centres it looks after cooling systems, chiller plants, HVAC and utilities for a large Indian conglomerate at its Navi Mumbai data centre. As of 31 December 2025, the data centre operation and maintenance order book was Rs 74.04 crore.

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