RKB Global IPO

Strengths · 7

• 01Revenue from operations grew from Rs 360.00 crore in FY2023 to Rs 411.12 crore in FY2025, and was Rs 290.09 crore in the six months to 30 September 2025.
• 02Profit after tax rose from Rs 5.37 crore in FY2023 to Rs 11.09 crore in FY2025.
• 03EBITDA margin improved from 4.50% in FY2023 to 7.79% in FY2025.
• 04Debt to equity fell from 1.89 times in FY2023 to 0.31 times in FY2025, as net worth rose from Rs 45.78 crore to Rs 202.40 crore.
• 05Manufacturing, which carries more value than trading, grew from 17.40% of revenue in FY2023 to 49.82% in FY2025.
• 06Installed capacity is 53,430 MTPA for the six months to September 2025, against 36,000 MTPA in FY2025.
• 07Promoters and promoter group hold 68.24% before the issue.

Risks · 10

• 01Customer concentration rose sharply. The top 10 customers gave 74.57% of revenue in the six months to September 2025, against 24.87% in FY2023, and the top customer alone gave 35.04%.
• 02Maharashtra gave 77.88% of revenue from operations in the six months to September 2025.
• 03Raw materials were 95.59% of total expenses in the six months to September 2025, and supply is on purchase order basis.
• 04Cash flow from operations was negative Rs 32.01 crore in FY2025 and negative Rs 27.24 crore in FY2024, while profit was positive.
• 05Total borrowings were Rs 63.70 crore at the end of FY2025, up from Rs 37.56 crore a year earlier.
• 06Debt to EBITDA was 3.20 times in the six months to September 2025, against 1.99 times in FY2025.
• 07Return on equity was 5.48% in FY2025 and ROCE fell from 15.83% in FY2024 to 10.21% in FY2025.
• 08Most capital expenditure in the last three fiscals went to buying properties from the promoters and promoter group.
• 09General corporate purposes are still unspecified and can go up to 25% of gross proceeds, and Rs 50.00 crore each goes to debt repayment and working capital.
• 10The statutory auditors have included emphasis of matters in earlier audit reports, and the company discloses contingent liabilities.

RKB Global Limited is in the iron and steel business. It makes, trades and distributes a wide range of steel products, and it also extracts, processes and exports iron ore.

The company makes mild steel wires, bright bars, welding electrodes and pre-engineered building components. Its two manufacturing facilities are at Wada in Palghar district and Taloja in Navi Mumbai, both in Maharashtra. Installed capacity was 36,000 MTPA for FY2025 and 53,430 MTPA for the six months ended 30 September 2025. Annual production was 16,695 MTPA in FY2025 and 33,420 MTPA in the six months to September 2025.

Besides manufacturing, RKB trades steel products such as coils, pipes and structural steel. Manufacturing gave 60.33% of revenue from operations in the six months ended 30 September 2025, against 49.82% in FY2025, 22.94% in FY2024 and 17.40% in FY2023. Trading gave 24.50% of revenue in the six months to September 2025.

The company serves construction, automobile and engineering customers in India and abroad. Maharashtra gave 77.88% of revenue from operations in the six months to September 2025 and 66.51% in FY2025. For storage, it runs 29 facilities in Maharashtra, 3 in Kerala, 3 in Madhya Pradesh and 1 in Telangana.

The company is run by promoters Alok Virat Shah, the Managing Director, and Virat Sevantilal Shah, the Chairman. It is building its own brand called Virat.

The industry

The industry report is by CareEdge. It says India is the world's second-largest steel producer, with capacity of about 196.6 MT as of FY25. Crude steel production grew at a 6.8% CAGR from 109 MT to 152 MT between FY20 and FY25. Finished steel production rose at 7.4% to 147 MT, and domestic consumption stood at 152 MT.

Customer concentration: Top 5 customers gave 68.34% of revenue in the six months to September 2025 (34.41% in FY2025); the top customer gave 35.04% (9.76% in FY2025).