Sai Urja Indo Ventures SME IPO

Strengths · 8

• 01Sales have nearly doubled in two years, from Rs 45.88 crore in FY2024 to Rs 65.82 crore in FY2025 and Rs 85.64 crore in FY2026.
• 02Profit has tripled over the same period, from Rs 1.39 crore to Rs 4.19 crore.
• 03Return ratios are very high, with RoCE of 50.66% and RoNW of 42.44%, because the business needs little fixed capital.
• 04EBITDA improved from Rs 2.93 crore in FY2024 to Rs 6.51 crore in FY2026.
• 05There is visible work in hand, with 17 ongoing projects and about Rs 71.65 crore still to be executed as on 15 June 2026.
• 06Annual maintenance contracts running one to three years give repeat income rather than one-off jobs.
• 07Working across four contract types, from annual maintenance to performance based and manpower supply, spreads the risk of any single model.
• 08Debt is manageable at Rs 7.18 crore against a net worth of Rs 12.20 crore.

Risks · 9

• 01The issue is priced at about 27.56 times earnings on an EPS of Rs 4.10, which is high for a manpower led services business.
• 02The profit margin is thin at 4.98%. This is largely a people business, so wage increases feed straight through to margin.
• 03There is little to differentiate the service. Operation and maintenance contracts are won on price through tenders, and a competitor can bid the same work.
• 04Customers are power plants and industrial units, many of them public sector, where payment is slow and rates are set by tender.
• 05Borrowing has more than tripled in two years, from Rs 2.15 crore in FY2024 to Rs 7.18 crore in FY2026.
• 06The company is small, with a net worth of Rs 12.20 crore.
• 07The whole business rests on contract renewals. Losing one annual maintenance contract removes that revenue immediately.
• 08This is a fresh issue combined with an offer for sale, and promoter holding falls from 92.87% to 65.67%.
• 09This is an SME issue. One lot is 1,200 shares, which is about Rs 1.36 lakh at the upper band of Rs 113, and SME shares usually trade in low volume after listing.

Sai Urja Indo Ventures Limited was started in 2012. It provides operation and maintenance services, usually shortened to O&M, along with other support services inside industrial plants. Most of its work is in power generation, and it also serves iron and steel and agrochemical plants.

Its services fall into three groups. Maintenance covers electrical systems, control and instrumentation, and mechanical jobs. Operation covers running coal handling plants, merry-go-round systems, which are the dedicated rail loops that bring coal into a power station, and boiler turbine generator units. Other services cover industrial housekeeping, overhaul work, and the annual and capital overhauls that a plant shuts down for.

The work is won through tenders and comes under four kinds of contract. Annual maintenance contracts run for one to three years. Performance based contracts are linked to how much the plant produces or how reliably it runs. Manpower supply contracts provide staff. Short term bill of quantity contracts cover temporary needs. As on 15 June 2026 it had 17 ongoing projects with about Rs 71.65 crore of work still to be executed.

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