Renny Strips IPO

Strengths · 7

• 01Revenue from operations rose from Rs 533.38 crore in FY2023 to Rs 856.25 crore in FY2025, a revenue CAGR of 26.70% as stated in the document.
• 02Profit after tax rose from Rs 9.59 crore in FY2023 to Rs 19.66 crore in FY2025, and EBITDA grew at a CAGR of 62.07% over the same years.
• 03Combined melting capacity of 199,200 tonnes per annum compares with an industry average of 65,000-75,000 tonnes per annum for induction furnace steel makers, per CRISIL.
• 04Melting capacity utilisation was 91.32% in FY2025 and 94.18% in FY2024, so the existing furnaces are close to full use.
• 05Return on equity was 24.01% in FY2025 against 18.44% in FY2024.
• 06The product range covers MS billets, wire rods, HR coils, ERW pipes and tubes, and scaffolding and formwork systems, so no single product is the whole business after FY2025.
• 07Domestic finished steel demand grew at 8.70% a year from fiscal 2020 to fiscal 2025, the industry report says, and is expected to reach 200-210 million tonnes per annum by fiscal 2029.

Risks · 10

• 01Top 10 customers gave 54.99% of FY2025 revenue and the top 5 gave 41.34%, with no long-term agreements in place.
• 02HR coils gave 25.64% and wire rods 44.26% of FY2025 revenue, so a demand shift in two products would hit sales.
• 03North India gave 96.59% of FY2025 revenue, so the company depends on one region.
• 04Net cash used in operating activities was Rs 166.85 million in FY2025 and Rs 110.82 million in the six months to 30 September 2025, so profit is not turning into cash.
• 05Total borrowings were Rs 289.73 crore at 31 March 2025 against a net worth of Rs 81.86 crore, and rose to Rs 372.46 crore by 30 September 2025.
• 06EBITDA margin was 5.65% and PAT margin 2.30% in FY2025, which leaves little room for a rise in raw material or power costs.
• 07The two selling shareholders, Dev Raj Gupta and Usha Gupta, are offering up to 6,000,000 shares each, and that money goes to them, not to the company.
• 08The amount for general corporate purposes is not yet fixed and can go up to 25% of the gross proceeds.
• 09The company borrowed Rs 396.20 million from Binny Gupta and Rs 239.95 million from Renny Steel Castings Private Limited in FY2025, both related parties.
• 10Unit II and parts of Unit I and Unit III stand on leasehold land, and there is one criminal and one tax case against the company involving Rs 5.18 million.

Renny Strips Limited is a steel products maker based in Kohara, Ludhiana, Punjab. It was incorporated in 1996 as Renny Strips Private Limited and became a public company in 2025. The company describes itself as a vertically integrated structural products manufacturer.

It melts steel scrap in induction furnaces to make MS billets. The billets are rolled into wire rods and HR coils, and part of the steel goes into ERW pipes and tubes and into scaffolding and formwork systems. For the six months ended 30 September 2025, wire rods gave 35.80% of revenue from operations, HR coils 32.20%, MS billets 13.01%, ERW pipes and tubes 9.37% and scaffolding and formwork systems 8.22%.

The company runs three manufacturing units in Kohara, Ludhiana. It has three induction furnaces (two at Unit I and one at Unit II) with a combined melting capacity of 199,200 tonnes per annum. It also has two continuous casting lines and two rolling mills, one for wire rods and one for coils. Melting capacity utilisation was 91.32% in FY2025.

Sales are concentrated in North India, which gave 96.59% of revenue from operations in FY2025. The company sold to 15 states and union territories and to 21 countries in the latest period. Its top 10 customers gave 54.99% of FY2025 revenue and there are no long-term agreements with them.

As of 30 September 2025 the company had 614 permanent employees and 208 contract labourers. The promoters are Binny Gupta, the Chairman and Managing Director, and Chetna Gupta, a Whole-time Director. All seven shareholders today belong to the promoter and promoter group.

The industry

The domestic steel industry grew at a CAGR of 8.70% between fiscal 2020 and fiscal 2025, when demand reached 152.00 million tonnes per annum, says the CRISIL report quoted in the document. Domestic finished steel demand is expected to grow at 7.5-8.5% a year over fiscal 2025-29, to 200-210 million tonnes per annum. Global scaffolding demand was 14.5-15.5 million tonnes per annum in 2024 and is expected to grow at 3-4% a year to 2029.

Customer concentration: Top 5 customers gave 41.34% of FY2025 revenue (41.82% in FY2024) and the top 10 gave 54.99% (55.79% in FY2024).