Sadbhav Futuretech IPO

Strengths · 7

• 01Revenue from operations grew from Rs 73.05 crore in FY2023 to Rs 302.10 crore in FY2025, and profit after tax from Rs 0.85 crore to Rs 30.80 crore.
• 02The order book was Rs 2,016.05 crore on 28 February 2026, against Rs 302.10 crore of revenue in FY2025.
• 03The company has installed 47,960 solar pumps with a combined capacity of 171.53 MW as of 30 September 2025.
• 04It has widened beyond pumps. Rooftop solar is 39.21% and ground-mounted solar 17.36% of the February 2026 order book.
• 05Direct government tenders rose to Rs 237.13 crore, or 86.45% of revenue from operations, in the six months ended 30 September 2025, from 13.30% in FY2025.
• 06Return on net worth was 39.05% in FY2025 and 33.90% for the six months ended 30 September 2025 (not annualised).
• 07Promoters and promoter group hold 83.96% before the issue.

Risks · 10

• 01The largest customer gave 86.45% and the top five gave 99.38% of revenue from operations in the six months ended 30 September 2025.
• 02Solar water pumping EPC projects were 97.73% of revenue from operations in that period, so the business depends on one product line.
• 03Operating cash flow was negative at Rs 167.73 crore in the six months ended 30 September 2025, Rs 110.00 crore in FY2025 and Rs 17.73 crore in FY2024, even as profit rose.
• 04Trade receivables were Rs 444.41 crore on 30 September 2025, which is 162.03% of the period's revenue from operations, and the company has waited over 12 months for some payments.
• 05Borrowings rose from Rs 28.26 crore in FY2023 to Rs 312.08 crore on 30 September 2025, and the promoters have guaranteed loans, for example Rs 612.20 crore each by Saikat Roy and Bhupender Singh.
• 06Revenue is concentrated in Maharashtra (89.35%) and Haryana (9.96%), and most of the order book is in Andhra Pradesh and Maharashtra.
• 07The offer for sale is Rs 235.00 crore, so a large part of the issue goes to selling shareholders and not to the company.
• 08The only named use of fresh money is Rs 215.00 crore for working capital. The general corporate purposes amount is not yet fixed.
• 09Against the company there are 1 criminal case and 10 tax proceedings worth Rs 248.65 lakh in total, and its subsidiaries face 1 tax proceeding.
• 10The company buys all its raw materials from third parties, and its top five suppliers were 69.55% of purchases in the six months ended 30 September 2025.

Sadbhav Futuretech Limited is an engineering, procurement and construction (EPC) company for solar power projects. It started in 2020 with solar water pumping systems and later added rooftop solar and ground-mounted solar systems. The company was first incorporated as Icongreen Energy Private Limited in June 2020 and became a public limited company in November 2024.

Solar water pumping is almost the whole business today. It gave Rs 268.07 crore, or 97.73% of revenue from operations, in the six months ended 30 September 2025, and 99.69% in FY2025. As of 30 September 2025 the company had installed 47,960 pumps with a combined capacity of 171.53 MW. It has a turnkey contract from MSEDCL for 3HP, 5HP and 7.5HP off-grid solar pumps under the Magel Tyala Saur Krushi Pump Scheme in Maharashtra.

The company does not make its own components. It buys modules, pumps and other parts from third-party suppliers and uses installation partners at customer sites. In FY2025 it began winning government tenders in its own name. Earlier it worked mostly as a sub-contractor. Government contracts were Rs 237.13 crore, or 86.45% of revenue from operations, in the six months ended 30 September 2025, against 13.30% in FY2025.

Revenue is concentrated in Maharashtra (89.35% in the six months ended 30 September 2025) and Haryana (9.96%). The order book was Rs 2,016.05 crore on 28 February 2026. Andhra Pradesh is 39.21% of it, Maharashtra 38.76% and Chhattisgarh 17.36%. By segment, water pumping is 43.43%, rooftop solar 39.21% and ground-mounted 17.36%. About 65.18% of the order book comes from government-awarded projects.

The company says it was awarded about 13% of the capacity allotted in the first tranche of the Utility-Led Aggregation model for PM Surya Ghar in Andhra Pradesh. Its registered office is in Raipur, Chhattisgarh, with a corporate office in Gurugram. It has applied to move the registered office to Haryana. The business is run by Saikat Roy as Chairman and Managing Director, with Bhupender Singh and Nilesh Jain as Executive Directors.

The industry

The company's industry report is by ICRA. It says the residential rooftop solar segment grew from 0.29 GW in FY2019 to 4.60 GW in FY2025, a CAGR of 58.2%, helped by subsidy schemes such as PM Surya Ghar and direct benefit transfers. The same report lists limited suitability for deep water sources, dependence on sunlight, falling groundwater levels and high upfront cost among the challenges for solar water pumping. Listed peers named in the document are GK Energy, Shakti Pumps and Oswal Pumps, whose P/E ratios are 14.17, 15.17 and 11.19.

Customer concentration: The largest customer gave 86.45% and the top 5 customers 99.38% of revenue from operations in the six months ended 30 September 2025 (69.91% and 99.78% in FY2025).