Vinir Engineering IPO

Strengths · 8

• 01The company makes components of 20 kg to 6,000 kg using all four forging processes, with heat treatment, machining and die design in-house.
• 02Installed forging capacity is 30,000 MTPA and machining capacity is 8,000 MTPA across three units at 31 March 2026.
• 03Revenue is spread over industries: oil and gas gave 45.90% of FY2026 revenue, defence and aerospace 26.59% and nuclear 7.47%.
• 04The customer base grew from 63 customers in FY2024 to 91 in FY2026.
• 05Operating cash flow was positive in all three years: Rs 9.22 crore in FY2026, Rs 35.50 crore in FY2025 and Rs 25.81 crore in FY2024.
• 06Debt to equity was 0.12 times in FY2026 and interest coverage was 33.28 times.
• 07Return on capital employed was 19.15% and EBITDA margin was 19.02% in FY2026.
• 08Promoters hold 99.99% before the issue, so the promoter family has full ownership going in.

Risks · 10

• 01Top 5 customers gave 45.96% of FY2026 revenue and the top 10 gave 64.44%; the largest customer alone gave 13.88%.
• 02Revenue from operations fell from Rs 229.53 crore in FY2024 to Rs 189.96 crore in FY2025 and recovered to Rs 204.82 crore in FY2026.
• 03Profit after tax fell from Rs 34.66 crore in FY2024 to Rs 24.39 crore in FY2026, and EBITDA margin fell from 22.25% to 19.02%.
• 04Operating cash flow fell to Rs 9.22 crore in FY2026 from Rs 35.50 crore in FY2025 while inventory days rose from 25.45 in FY2024 to 65.32.
• 05Total borrowing rose to Rs 18.63 crore at 31 March 2026 from nil a year earlier.
• 06Oil and gas and defence and aerospace together gave 72.49% of FY2026 revenue from operations, so a slowdown in these industries would hurt.
• 07The company has no definitive supply agreements with its steel suppliers and depends on a limited number of them.
• 08It has not placed orders for any machinery for Unit IV, and the Rs 149.85 crore cost estimate rests on vendor quotations.
• 09Some of the money goes to unidentified acquisitions and general corporate purposes, capped together at 35% of gross proceeds.
• 10There are 22 tax proceedings and 4 material civil proceedings against the company, with Rs 175.78 million involved in total.

Vinir Engineering Limited, incorporated in 1983 and based in Bengaluru, is an integrated engineering solutions company. It makes critical and heavy precision-forged and machined components for energy, defence, aerospace, railways, energy turbines, hydraulics, earthmoving and high-end engineering.

The company makes components weighing from 20 kilograms to 6,000 kilograms. It uses all four forging processes: closed die forging, open die forging, ring rolling and radial forging. Heat treatment, precision machining and die design are done in-house.

As at 31 March 2026, it had an installed forging capacity of 30,000 MTPA and an installed machining capacity of 8,000 MTPA. These are spread over three units: Unit I at Bengaluru in Karnataka, and Unit II and Unit III at Hosur and Kalukondapalli in Tamil Nadu. It plans a new Unit IV at ELCOT, Viswanathapuram, Hosur, Tamil Nadu.

In FY2026, oil and gas gave 45.90% of revenue from operations. Defence and aerospace gave 26.59%, railways and miscellaneous 10.08%, nuclear 7.47%, mining and construction equipment 5.82% and marine and shipping 4.14%. Government and public sector undertakings gave 28.97% of revenue.

The company served 91 customers in FY2026, against 87 in FY2025 and 63 in FY2024. Exports to countries such as the United States, Mexico, Spain, Malaysia, Tunisia, Canada, the United Kingdom and Singapore were 9.47% of revenue from operations in FY2026. The promoters are Naresh Chandra Gupta, Nitesh Gupta and Ritesh Gupta. Nitesh Gupta is the Managing Director.

The industry

The Indian non-automotive precision machined forging market was valued at Rs 15,751 crore in FY2026 and made up 70% of overall forgings demand. The F&S report estimates it will reach Rs 25,274 crore by FY2032, a CAGR of 8.2%. Demand comes mainly from oil and gas, energy turbines, nuclear, aerospace and defence, mining and construction equipment, marine and shipping, and railways. The global market of this kind was USD 28.01 billion in 2025 and is estimated at USD 40.86 billion by 2031, a CAGR of 6.5%.

Customer concentration: Top 5 customers gave 45.96% of FY2026 revenue (45.21% in FY2025 and 50.26% in FY2024); the largest customer gave 13.88%.