Steamhouse India IPO

Strengths · 8

• 01Profit has grown every year, from Rs 27.19 crore in FY2024 to Rs 31.16 crore in FY2025 and Rs 38.64 crore in FY2026.
• 02Sales have grown strongly, from Rs 293.16 crore in FY2024 to Rs 398.53 crore in FY2025 and Rs 494.97 crore in FY2026, a rise of 24% in the last year.
• 03The pipeline network of over 45 kilometres across six industrial hubs is a genuine entry barrier, because a competitor would have to lay its own pipelines to compete.
• 04Once a factory connects to the pipeline and shuts its own boiler, it is difficult and costly to switch away, which makes the revenue sticky.
• 05Return on net worth was 23.60% and EBITDA improved from Rs 68.41 crore in FY2024 to Rs 83.49 crore in FY2026.
• 06The customer list includes established chemical names such as Aether Industries and Anupam Rasayan India.
• 07Rs 180 crore of the issue money repays borrowings, which should cut the interest burden meaningfully.
• 08About Rs 114 crore goes into capacity, covering Phase 3 at Ankleshwar, Phase 2 at Panoli and a new steam generation facility at Dahej SEZ.

Risks · 9

• 01The price band, lot size and face value have not been announced yet, so the valuation of this issue cannot be judged at this stage. The P/E and EPS are also not stated in the available data.
• 02Promoter holding falls from 95.79% to 77.96% after the issue.
• 03Debt is high. Total borrowing was Rs 281.62 crore against a net worth of Rs 163.76 crore as on 31 March 2026, which is close to twice the own funds, and it has risen every year.
• 04The profit margin is thin at 7.81%, so the business needs volume to make the pipeline investment pay.
• 05The whole network is in Gujarat industrial belts, so any slowdown or regulation affecting that region hits the entire business.
• 06The customers are largely chemical and dye companies. A downturn in that one sector would reduce steam demand across the customer base at the same time.
• 07Steam generation depends on coal and fuel costs, and the company also trades coal, so fuel price swings affect it on both sides.
• 08It relies heavily on contract labour, with 276 contract labourers against 229 employees, which brings availability and compliance risk.
• 09Three capacity projects are being built at the same time at Ankleshwar, Panoli and Dahej, which brings execution risk and the new capacity will take time to fill.

SteamHouse India was started in June 2015. It is an industrial gas company. Its work is to generate steam and nitrogen at a central place and supply it to factories through its own pipeline network, so that each factory does not have to build and run its own boiler or nitrogen plant.

Its pipeline network runs over 45 kilometres across key industrial areas in Gujarat, including Sachin, Vapi, Ankleshwar, Sarigram, Panoli and Nadesari. This kind of shared or community system is what allows a customer to simply buy steam by the tonne instead of investing in equipment and staff of its own.

The business has three parts. It generates and distributes steam, it also buys steam from other generating companies and distributes that through its pipelines, and it separates nitrogen from the air, compresses it and supplies purified nitrogen to industrial customers. It also does coal trading. Its customers are mainly chemical and dye companies, including Aether Industries, Anupam Rasayan India, Globe Enviro Care, Gujarat Polysol Chemicals, K. Patel Chemo Pharma, Mahavir Synthesis and Subhasri Pigments. As on 31 July 2026 it had 229 employees and used the services of 276 contract labourers.

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