SpectraA Technology Solutions SME IPO

Strengths · 8

• 01Profit has grown every year, from Rs 1.78 crore in FY2023 to Rs 2.00 crore in FY2024 and Rs 4.91 crore in FY2025, with Rs 4.41 crore earned in just the half year to 30 September 2025.
• 02EBITDA has improved sharply over the same period, from Rs 3.78 crore to Rs 10.13 crore in FY2025 and Rs 7.60 crore in the latest half year.
• 03Return ratios are strong, with RoNW of 46.59% and RoCE of 37.61%, and a PAT margin of 11.42%.
• 04The issue is priced at about 17.85 times earnings on an EPS of Rs 6.61.
• 05It supplies turnkey plants rather than loose equipment, handling design, fabrication, installation and commissioning together, which is harder for a small fabricator to match.
• 06The six product lines cover breweries, microbreweries, distilleries, food and beverage, malt spirit and extraction, so it is not tied to one customer industry.
• 07Craft brewing and premium spirits are growing categories in India, and microbrewery equipment is a direct play on that.
• 08It has two manufacturing facilities, at Bengaluru and Jaipur, covering about 33,214.75 square feet, and Rs 12.41 crore of the issue goes into the Jaipur plant.

Risks · 10

• 01Sales have been falling for three years. Total income went from Rs 103.49 crore in FY2023 down to Rs 89.68 crore in FY2024 and Rs 75.53 crore in FY2025. The profit has risen only because margins improved, not because the company is selling more.
• 02Debt is high. Total borrowing was Rs 24.63 crore as on 30 September 2025 against a net worth of Rs 17.58 crore, a debt to equity ratio of 1.31, and borrowing has risen every year from Rs 10.55 crore in FY2023.
• 03The latest column in the offer document is only a half year ending 30 September 2025, so it cannot be compared directly with the full years before it, and the data is close to a year old.
• 04This is project work, so revenue is lumpy. A quarter without new orders leaves the fabrication shops idle while costs continue.
• 05Its customers are breweries, distilleries and spirits makers, which are heavily regulated industries. State excise policy changes can stall a customer's expansion plans and therefore its orders.
• 06Turnkey contracts carry execution risk. Delays in commissioning or a plant not meeting guaranteed output can mean penalties or retention money being held back.
• 07The company is small, with a net worth of Rs 17.58 crore.
• 08This is a fresh issue combined with an offer for sale, so a part of the money goes to the selling shareholders and not to the company.
• 09Promoter holding will come down from 100% to 73% after the issue.
• 10This is an SME issue. One lot is 1,200 shares, which is about Rs 1.42 lakh at the upper band of Rs 118, and SME shares usually trade in low volume after listing.

SpectraA Technology Solutions Ltd was started in 2009. It builds the process plants that other factories run on, handling engineering, design, fabrication, installation, commissioning and even decommissioning, for both new plants and expansions of existing ones.

Its customers are in breweries, including craft and microbreweries, distilleries, food and beverages, malt spirit and blending, extraction plants, FMCG and pharmaceuticals.

Its work is organised into six product lines. Commercial brewery equipment covers turnkey brewhouse and cellar systems for large scale beer brewing, fermentation, conditioning and storage. Distillery equipment covers copper pot still based systems used to separate and concentrate alcohol and flavour compounds for spirits. Food and beverage plants cover process equipment and the linked utilities and packaging interfaces for extracting flavour and colour from plant material. Microbrewery equipment is the same brewhouse and cellar work at craft scale. Malt spirit equipment covers the complete train from milling to distillation, including wash and spirit stills, condensers and blending and storage tanks. Extraction plants cover extraction vessels with holding and buffer tanks. It runs two manufacturing facilities, at Bengaluru and Jaipur, with a combined built up area of about 33,214.75 square feet.

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