Tenty IPO

Strengths · 8

• 01Revenue from operations grew from Rs 362.24 crore in FY2024 to Rs 415.47 crore in FY2025 and Rs 822.25 crore in FY2026.
• 02EBITDA rose from Rs 31.59 crore in FY2025 to Rs 79.44 crore in FY2026, and the EBITDA margin improved from 7.60% to 9.66%.
• 03Profit after tax rose from Rs 6.80 crore in FY2025 to Rs 22.65 crore in FY2026, and basic earnings per share from Rs 5.60 to Rs 18.14.
• 04Return on capital employed improved to 19.46% in FY2026 from 6.86% in FY2025.
• 05Revenue comes from three product lines, with fans and appliances at 63.04%, writing instruments at 20.91% and RPP products at 16.05% of FY2026 revenue from operations.
• 06Repeat customers gave 91.29% of revenue from operations in FY2026, 95.44% in FY2025 and 95.57% in FY2024.
• 07The company had 8 manufacturing units in FY2026 against 5 in FY2024, and earned revenue from 29 states and union territories against 18 in FY2025.
• 08The statutory auditors made no qualifications in their examination report on the restated consolidated financial information.

Risks · 10

• 01Shares of the material subsidiary Polar Elektric Limited are pledged in favour of a third-party supplier, which is listed as the first of the company's top 10 risk factors.
• 02Cash flow from operations was negative at Rs 24.08 crore in FY2026, against positive Rs 73.03 crore in FY2025, even though profit after tax rose to Rs 22.65 crore. Growth is consuming working capital.
• 03Total borrowings rose from Rs 30.12 crore in FY2024 to Rs 174.46 crore in FY2025 and Rs 260.32 crore in FY2026, taking the debt to equity ratio to 0.75 times from 0.31 times.
• 04Profitability is thin. The PAT margin was 2.75% in FY2026, 1.64% in FY2025 and 2.41% in FY2024, and return on equity was 6.76% in FY2026.
• 05Revenue now leans on one line of business, with electric fans and household electrical appliances at 63.04% of FY2026 revenue from operations against 23.93% in FY2024. This business needs inventory to be built up ahead of the summer season.
• 06The company names dependence on Linc Limited as a significant customer among its top risk factors, and its largest customer gave 15.08% of revenue from operations in FY2026 and 28.55% in FY2025.
• 07West Bengal gave 42.86% of revenue from operations in FY2026, so the home state still carries a large part of the business.
• 08There are no long-term contracts with customers and the company relies on purchase orders, and it also depends on the distributors, dealers and retail channel partners of Polar Elektric Limited.
• 09The company discloses historical non-compliances relating to secretarial records, statutory filings and corporate compliances, and lists risks from a recent merger and the integration of future acquisitions.
• 10None of the fresh money adds capacity. Rs 136.00 crore funds the subsidiary's working capital and Rs 58.95 crore repays borrowings of the company and the subsidiary.

Tenty Limited is a Kolkata based manufacturer of rigid plastic packaging (RPP) products and writing instruments, and the Care report cited in the draft prospectus calls it one of the leading makers of these products in Eastern India. It supplies customised packaging to companies in the FMCG and writing instruments industries. The company is also in the business of manufacturing and trading electric fans and household electrical appliances, which it does along with its material subsidiary Polar Elektric Limited and its POLAR brand. The company was incorporated in West Bengal in 1997 and carries the corporate identity number U36991WB1997PLC085833.

The revenue mix has changed sharply. In FY2026 electric fans and household electrical appliances gave Rs 518.37 crore or 63.04% of revenue from operations, writing instruments gave Rs 171.91 crore or 20.91% and RPP products gave Rs 131.97 crore or 16.05%. Two years earlier, in FY2024, writing instruments were the largest line at 44.43%, RPP products were 31.64% and fans and appliances only 23.93%. The appliances business is therefore the reason revenue more than doubled over the two years.

Customers come from writing instruments and stationery, personal care and consumer goods, food and beverages, and electrical and home appliances. Products are sold across 25 states and 4 union territories in India. West Bengal is the main market and gave 42.86% of revenue from operations in FY2026, down from 73.01% in FY2025 and 76.41% in FY2024, with Assam, Delhi, Jharkhand and Uttar Pradesh named as growing markets. The number of states and union territories from which the company earned revenue rose to 29 in FY2026 from 18 in FY2025. Repeat customers gave Rs 750.64 crore or 91.29% of FY2026 revenue from operations.

Manufacturing is concentrated in West Bengal. The company had 8 manufacturing units in FY2026, against 7 in FY2025 and 5 in FY2024. Six units sit in and around Kolkata and Howrah, at Kasba Industrial Estate, Poly Park at Dhulagarh, the Jalan Industrial Complex at Domjur, Bhagabatipur and two sheds at Belvedere Mill on the western bank of the Hooghly. One unit at B.T. Road, Kolkata is operated by Polar Elektric Limited and makes electric fans, and one unit at Village Gauripur, North Guwahati in Assam makes RPP products. The average number of employees across the company and the material subsidiary was 1,160 in FY2026, up from 690 in FY2025.

There are eight promoters: Ashok Goyal, Nishi Goyal, Kanishk Goyal, Neelam Goyal, Giriraj Ratan Kothari, Asish Kothari, Anil Kamboj and the corporate promoter Ranks Fiscals Private Limited, a non-banking financial company registered with the RBI. Ashok Goyal is the Managing Director and has over 46 years of experience in plastic moulding and manufacturing, production, finance and marketing. Giriraj Ratan Kothari has more than 45 years of experience in operations, business and finance, and Kanishk Goyal, the Non-Executive Director, has over 15 years of experience in the plastic industry. The board has 6 directors, of whom 3 are independent.

The industry

The Care report cited in the draft prospectus sizes the Indian rigid plastic packaging market at USD 14.7 billion in FY26, up from USD 13.4 billion in FY20, and projects it to reach USD 19 billion to USD 20 billion by FY30, a CAGR of about 7% to 8% over FY26 to FY30. The report expects demand from packaged food and beverages, pharmaceuticals, personal care, home care and healthcare to drive this growth, helped by food processing activity, wider adoption of packaged products, the spread of organised retail and e-commerce, and rules on recyclable packaging and recycled plastic content. Investment in manufacturing technology, packaging design and material development is also expected to support the industry over the forecast period.

Customer concentration: The top 10 customers gave 46.87% of revenue from operations in FY2026, against 80.61% in FY2025 and 79.22% in FY2024, and the largest single customer gave 15.08% in FY2026 against 28.55% in FY2025. The draft prospectus does not name the top 10 customers because their consents were not received.