Technopaints and Chemicals IPO

Strengths · 8

• 01Revenue from operations rose from Rs 135.88 crore in FY2024 to Rs 350.50 crore in FY2026, and grew 68.43% in FY2026 over FY2025.
• 02Operating EBITDA margin moved from 16.21% in FY2024 to 17.19% in FY2026, while PAT grew from Rs 14.78 crore to Rs 37.78 crore.
• 03The Order Book stood at Rs 1,052.85 crore at 31 March 2026, up from Rs 521.59 crore at 31 March 2024, and Rs 994.69 crore across 126 projects at 31 July 2026.
• 04The company makes the paint it applies. Installed capacity is 103,896.00 MTPA of powder paints and 22,199.00 KLPA of liquid paints, and 886 SKUs were on offer in FY2026.
• 05Net debt fell to Rs 3.82 crore at 31 March 2026 from Rs 46.96 crore at 31 March 2024, and Net Debt to Operating EBITDA was 0.06 times.
• 06Operating cash flow was positive at Rs 25.83 crore in FY2026 after being negative in FY2025 and FY2024.
• 07ROE was 34.25% and ROCE was 30.97% in FY2026.
• 08The franchise network grew to 25 stores in FY2026 from 6 in FY2025, adding a retail route for standalone product sales.

Risks · 10

• 01Turnkey Paint Projects gave 91.25% of revenue from operations in FY2026, so the business depends on winning and finishing such projects.
• 02The top 5 customers gave 76.85% of revenue from operations in FY2026, up from 45.03% in FY2024. The top 10 customers gave 81.90%, and contracts do not commit future volumes.
• 03Government programme projects were 76.72% of Turnkey Paint Project revenue in FY2026, against 21.79% in FY2024, which ties results to government spending and payment timing.
• 0499.59% of Turnkey Paint Project revenue in FY2026 came from Telangana, and both plants and the proposed greenfield plant are in Telangana.
• 05Trade receivable days rose from 147 days to 214 days between 31 March 2024 and 31 March 2026, and net working capital rose from Rs 49.10 crore to Rs 110.24 crore.
• 06Operating cash flow was negative at Rs -12.12 crore in FY2025 and Rs -8.57 crore in FY2024, so profit did not turn into cash in those years.
• 07Projects are mostly fixed-price with no formal price adjustment, so higher raw material or manpower costs may not be passed on.
• 08Gross margin fell from 33.71% in FY2024 to 28.16% in FY2026.
• 09Of the Rs 500.00 crore offer, Rs 175.00 crore is an offer for sale, and this money goes to the selling shareholders and not to the company.
• 10General corporate purposes has no amount fixed yet and can go up to 25% of gross proceeds. Two selling shareholders acquired shares at Rs 46.43 each, and the promoters' average cost is Rs 4.62 and Rs 0.10.

Technopaints and Chemicals Limited, formerly known as Fortune Paints Private Limited, is a Telangana-based paint company. Most of its revenue comes from Turnkey Paint Projects. In these projects it supplies paint made by itself and also applies it at the customer site. Its customers are real estate developers and builders in residential, commercial, institutional, healthcare, education and industrial segments, and the projects include government programmes.

Turnkey Paint Projects gave Rs 319.82 crore, or 91.25%, of revenue from operations in FY2026. The rest, Rs 30.68 crore or 8.75%, came from selling products on a standalone basis. These sales go to B2B customers directly and through franchisee partners. The company had 25 franchise stores at the end of FY2026, against 6 a year earlier.

The company has two manufacturing facilities, both in Telangana: Unit I at Cheriyal and Unit II at Pashamylaram. They make water-based and solvent-based products such as putties, textures, primers, emulsions and enamels. As at 31 July 2026, installed capacity was 103,896.00 MTPA of powder paints and 22,199.00 KLPA of liquid paints. In FY2026 the plants produced 67,980.02 MTPA of powder paints and 6,122.59 KLPA of liquid paints. The company sold 886 SKUs at the end of FY2026.

Project execution is spread across Telangana, Andhra Pradesh, Karnataka, Maharashtra, Gujarat, Uttar Pradesh, Madhya Pradesh and the National Capital Region. The franchisee network covers Telangana, Andhra Pradesh, Karnataka, Maharashtra, Madhya Pradesh, Himachal Pradesh, Puducherry and Chandigarh. The company completed 49 Turnkey Paint Projects in FY2026. Its Order Book was Rs 1,052.85 crore at 31 March 2026. The company operates only in India and reports a single segment.

The promoters are Akuri Srinivasa Reddy, the Chairman and Managing Director, and A Sandhya, the Chief Administrative Officer. Both have been with the company since incorporation. Akuri Srinivasa Reddy has over 23 years of experience in the paints and coatings sector and A Sandhya has over 18 years.

The industry

As per the CRISIL report quoted in the document, the Indian paint industry grew from about Rs 620-640 billion in FY2020 to about Rs 1,210-1,260 billion in FY2025, a CAGR of about 13.5-15.5%. It is projected to grow at about 11-12% a year to reach about Rs 2,080-2,170 billion by FY2030. The paint application segment is estimated at Rs 400-420 billion in FY2025 and is projected to grow at 10-11% a year to Rs 640-670 billion by FY2030. Only about 20% of the application market by value is organised, and about 80% sits with unorganised contractors.

Customer concentration: Top 5 customers gave 76.85% of FY2026 revenue from operations (57.13% in FY2025 and 45.03% in FY2024). Top 10 suppliers were 61.46% of FY2026 purchases.