Sai Infinium IPO

Strengths · 8

• 01Revenue from operations grew 30.36% to Rs 689.16 crore in FY2026, after 12.91% growth in FY2025.
• 02EBITDA margin widened to 18.60% in FY2026 from 10.17% in FY2025 and 5.91% in FY2024.
• 03Profit after tax rose to Rs 82.38 crore in FY2026 from Rs 43.75 crore in FY2025 and Rs 6.14 crore in FY2024.
• 04Operating cash flow turned positive at Rs 82.53 crore in FY2026, after outflows of Rs 27.68 crore in FY2025 and Rs 16.55 crore in FY2024.
• 05Gross profit margin improved to 31.82% in FY2026 from 30.17% in FY2025 and 25.16% in FY2024.
• 06The melting shop, both rolling mills and the land for the planned expansion sit on one company-owned site of about 3.00 lakh sq. mtrs at Chamardi village, giving the company captive billet supply for its rolling mills.
• 07Customer concentration eased in FY2026: the top 10 customers were 63.83% of revenue from operations against 84.31% in FY2025.
• 08Return on net worth was 17.93% in FY2026 against 13.43% in FY2025 and 3.17% in FY2024.

Risks · 10

• 01Gujarat accounted for Rs 687.34 crore, or 99.74%, of FY2026 revenue from operations, and 100% in both FY2025 and FY2024, so any setback in that one state hits almost the whole business.
• 02Other operating income rose 688.34% to Rs 189.47 crore in FY2026 and made up 27.49% of revenue from operations, against 4.55% in FY2025, so a large part of the FY2026 jump did not come from selling manufactured steel.
• 03The top 10 customers gave 63.83% of FY2026 revenue from operations and the single largest customer 18.59%, which was 54.27% in FY2025.
• 04Total borrowings rose to Rs 357.57 crore as on 31 March 2026 from Rs 68.63 crore a year earlier, taking debt to equity to 0.91 from 0.27, and net debt to EBITDA to 2.58 from 1.27.
• 05Net cash used in investing activities was Rs 387.06 crore in FY2026, funded largely by Rs 331.22 crore of net cash from financing activities.
• 06The top 10 suppliers accounted for 63.98% of the cost of material purchased in FY2026, and material cost was 60.26% of total expenses.
• 07The company has 6 criminal and 3 tax proceedings filed by it involving Rs 5.93 crore, 3 tax proceedings and 1 other material proceeding against it with amounts unascertainable, 7 criminal proceedings against its directors, and 1 tax proceeding against its promoters involving Rs 5.99 crore.
• 08The company had filed a draft red herring prospectus with SEBI on 2 April 2025 for a fresh issue of 1,96,00,000 equity shares of Rs 10 each and withdrew that application.
• 09The previous statutory auditor included emphasis of matter paragraphs in the reports on the financial statements for Fiscal 2024 and Fiscal 2025, and a report on other legal and regulatory requirements for Fiscal 2025.
• 10The offer for sale of up to 1,20,00,000 shares is entirely by promoter Ishu Bansal, whose cost of acquisition is less than Rs 0.01 per share, and the general corporate purposes part of the fresh issue is unspecified and may take up to 25% of the gross proceeds.

Sai Infinium Limited, formerly known as Sai Bandhan Infinium Limited, manufactures and sells Thermo Mechanically Treated (TMT or TMX) bars and structural steel products, which the company together calls long steel products. It also makes MS billets, which it largely consumes in its own rolling mills and partly sells in the open market. Alongside steel making, the company recycles ships, trades in ferrous and non-ferrous scrap and buys and sells residential and commercial real estate. Its registered office is at Atabhai Chowk in Bhavnagar, Gujarat, and its corporate office is at Andheri West in Mumbai.

The manufacturing plant is at Chamardi village in Vallabhipur taluka of Bhavnagar district. It has a melting shop that makes MS billets, a rolling mill for TMT bars and a second rolling mill for structural steel products. The plant sits on company-owned land of about 3.00 lakh sq. mtrs, which also holds the land earmarked for a third rolling mill and a proposed new melting shop. The ship recycling unit is a separate facility at Plot No. 158 M in the Sosiya Ship Breaking Yard in Talaja taluka, Bhavnagar, and can take ships weighing up to 30,000 MT.

The company sells into construction and infrastructure through its TMT bars, while its structural steel products go to transmission and telecom towers, power plants, refineries, railways, renewable energy projects, industrial structures, fabrication works and general engineering. It sells through a dealer and distributor network rather than under long-term contracts. Gujarat remains the core market, contributing 60.49% of revenue from operations in FY2026, 76.76% in FY2025 and 61.38% in FY2024. The company started selling in Rajasthan and Punjab during FY2026, and those two states contributed 0.18% and 0.08% of revenue from operations.

The revenue mix moves a lot from year to year. Sale of manufactured goods was 66.44% of revenue from operations in FY2026, down from 82.70% in FY2025 and 89.81% in FY2024. Other operating income rose to 27.49% of revenue from operations in FY2026 from 4.55% in FY2025. By vertical, TMT bars gave 55.54% of FY2026 revenue from operations, MS billets 5.68% and structural steel products 5.22%, the last being a vertical the company did not report in FY2025 or FY2024. The real estate division contributed Rs 0.31 crore in FY2026, and there was no ship recycling revenue in FY2026 against 1.83% of revenue in FY2025.

The promoters are Shivnarayan Bansal, Ishu Bansal and Devansh Infinium Private Limited. Shivnarayan Bansal is the Chairman and Managing Director and has been on the board since 29 August 2024, after working as the company's General Manager from April 2022 to July 2024. The company took its present shape through a composite scheme of arrangement approved by the NCLT Ahmedabad bench on 7 August 2024, under which Fidelis International Private Limited and Sai Infinium Private Limited merged into it with an appointed date of 30 March 2024. It became a public limited company in October 2024 and took the name Sai Infinium Limited in November 2024.

The industry

India is the world's second largest crude steel producer and accounted for 9% of global crude steel production in CY25, when world crude steel output was 1,849 MT and had declined at a CAGR of 0.4% from CY20. Indian crude steel production rose from 109 MT in FY20 to 168 MT in FY26, and finished steel consumption from 100 MT to 164 MT over the same period. The CareEdge report cited in the offer document projects finished steel consumption to reach 206 MT by FY29P, a CAGR of 8.2%, on the back of infrastructure spending, urbanisation and industrial expansion, with support from the National Infrastructure Pipeline, Bharatmala, PM Gati Shakti, Make in India and the PLI scheme. The National Steel Policy 2017 sets FY31 targets of 300 MTPA of crude steel capacity and 230 MTPA of finished steel demand, with per capita finished steel consumption of 158 kg.

Customer concentration: Top 5 customers gave 52.84% of FY2026 revenue from operations (78.15% in FY2025 and 27.56% in FY2024), and the single largest customer 18.59% (54.27% in FY2025).