Vardaan Biotech IPO

Strengths · 7

• 01Revenue from operations rose from Rs 140.14 crore in FY2024 to Rs 151.13 crore in FY2025 and Rs 167.09 crore in FY2026.
• 02Profit after tax rose from Rs 16.48 crore in FY2024 to Rs 18.35 crore in FY2026, and EBITDA margin stayed between 17.03% and 17.86% over the three years.
• 03Borrowings fell from Rs 30.24 crore in FY2024 to Rs 18.86 crore in FY2026, and debt to equity came down from 0.70 to 0.19.
• 04Direct sales to farmers grew from Rs 72.87 crore in FY2024 to Rs 108.61 crore in FY2026, so the company is less dependent on dealers.
• 05The product range spans cereals, vegetables, herbs, pulses, oilseeds and fodder, sold across 9 states in both Kharif and Rabi seasons.
• 06Net worth grew from Rs 43.37 crore in FY2024 to Rs 99.55 crore in FY2026, and the current ratio improved from 2.50 to 2.90.
• 07Own processing capacity is 1,15,50,000 kg a year at Ujjain, backed by two third-party processing units in Hyderabad.

Risks · 10

• 01Promoter Lokendra Singh Rajput faces a criminal proceeding and investigations by law enforcement agencies, including the Economic Offences Wing. The document lists 1 criminal case against the promoters.
• 02Operating cash flow was negative at Rs -6.08 crore in FY2026 and Rs -11.95 crore in FY2024, even though profit after tax was positive in both years.
• 03Working capital days were 237 in FY2026, up from 180 in FY2024, so a large amount of money is tied up in inventory and receivables.
• 04The statutory auditor, Maheshwari & Co., gave an adverse remark because the audit trail feature in the accounting software was not enabled.
• 05Revenue depends on certain products, mainly maize, paddy and wheat seeds, and on two states, Madhya Pradesh and Maharashtra.
• 06Procurement is concentrated in Telangana, Madhya Pradesh and Gujarat, so a problem in these states can disrupt supply.
• 07Return on net worth fell from 38.00% in FY2024 to 18.43% in FY2026, and EBITDA margin was 17.03% in FY2026 against 17.86% in FY2025.
• 08There are 23 criminal proceedings against the company with Rs 144.21 lakh involved, plus 4 tax proceedings. The company has also filed 23 criminal proceedings with Rs 95.21 lakh involved.
• 09The issue is a fresh issue, but the money is partly for general corporate purposes and a land purchase and office purchase, and the amounts are still blank in the draft.
• 10Seed output depends on weather, crop disease and pests, and on the success of the company's own breeding work.

Vardaan Biotech Limited is an integrated seed company. It works on the development, breeding, production, processing and conditioning of agricultural seeds across many crops. It makes hybrid seeds, parental lines, breeder seeds and foundation seeds. These are used for commercial seed multiplication and for developing better seeds. The registered office is in Ujjain, Madhya Pradesh.

The company follows an integrated model. It collects germplasm, breeds and develops hybrids, gets seed grown through contract production, then procures, stores, processes, tests, packs and markets the seed. It also gives farmers advice. Its range covers cereals (paddy, wheat, maize, bajra), vegetable seeds (peas, tomato, chilli, okra, onion and others), herb seeds (coriander, mint, fennel, tulsi), pulses (pigeon pea and green pea), oilseeds (mustard, soybean, sunflower) and fodder seeds (fodder bajra and fodder jowar).

The seeds are sold through distributors, dealers and direct farmer connections in 9 states: Madhya Pradesh, Maharashtra, Telangana, Bihar, Jharkhand, Rajasthan, Gujarat, Chhattisgarh and Uttar Pradesh. In FY2026, sales to farmers were Rs 108.61 crore and sales through dealers were Rs 58.48 crore. In FY2024 the split was Rs 72.87 crore from farmers and Rs 67.27 crore from dealers.

The company has one processing unit on leased land at Gram Jaithal, Agra Road, Ujjain. Its installed capacity is 1,15,50,000 kg a year, as certified by a chartered engineer on 8 July 2026. It also has long-term arrangements with two third-party processors, each with a unit at Hyderabad, Telangana, which it uses when needed. The company says it does not report business segments under Ind-AS 108.

The promoters are Lokendra Singh Rajput, Chairperson and Whole-time Director, and Rashmi Rajput, Managing Director. Both have been with the company since it was incorporated in 2007. The company split its shares from face value Rs 10 to Rs 2 each from 6 August 2026.

The industry

The industry report by D&B says agriculture supports about 26% of global employment, according to the World Bank and ILO. The FAO figures cited show global agriculture value added rising from USD 3.1 trillion in 2014 to USD 4.0 trillion in 2023, an average annual growth of about 2.8%. The abridged prospectus quotes only these global numbers and does not give a size for the Indian seed market.

Customer concentration: The document does not report top-customer concentration. In FY2026, farmers gave Rs 108.61 crore and dealers gave Rs 58.48 crore of revenue.