Apsis Aerocom Ltd (APSISAERO) — Aamara Capital Research

Apsis Aerocom Ltd: Snapshot

NSE Emerge (SME) · APSISAERO · Listed 18 Mar 2026 · Data as of 13 Oct 2026 (CMP ₹641.95 at 13:57 IST) · ₹ Cr unless stated · FY = year to 31 Mar · Standalone Indian GAAP, no subsidiaries

What this company is. Apsis is a build-to-print precision CNC machining shop, not an electronics/EMS or defence-OEM company. It machines metal and polymer components (housings, inserts, covers, plates, turned parts) to customer drawings. FY26 mix: defence 65.5%, aerospace 25.6%, healthcare 7.7%, others 1.1%. [Fact]

₹30.65 CrFY26 Revenue (+49.6%)

₹7.51 CrFY26 PAT (+13.7% vs audited FY25)

37.3%FY26 EBITDA margin (FY25 49.8%)

25%RoE avg equity (15.4% closing) · RoCE 20.6%

₹32.0 CrNet cash, Mar-26 (incl. ₹31.22 Cr IPO escrow)

₹40.5 CrOrder book May/Jun-26 (1.32x FY26 rev)

Quick verdict scorecard

Business quality

Medium

Real niche, ~40% sole-source; tiny, top-5 = 87%

Management & governance

Medium–Weak

Pay +55.8% post-listing; control lapses pre-IPO

Financial quality

Medium

Net cash; FY25 cash conversion 0.01x

Valuation

Expensive

103x P/E, 65x EV/EBITDA, 15.8x P/B

Overall view

Negative at CMP

Good small shop; price discounts FY28+

Market data

Item	Value	Note
CMP (13 Oct 2026)	₹641.95	+2.43% on day; new high ~₹643 [Fact]
Shares outstanding	1,20,51,921	Post-IPO; FV ₹10
Market cap	₹773.7 Cr	Quote pages show ₹669–755 Cr on stale share counts
Enterprise value	₹741.7 Cr	Mcap + debt 4.49 (incl. leases) − cash 36.51 [Est.]
52-week high / low	₹643 / ₹147.20	Low = listing day 18 Mar 2026; never traded below
IPO price / listing open	₹110 / ₹153	+39.1% open; closed ₹160.65 (UC, +46.05%); ~17.8 lakh shares traded
Return since IPO	5.8x	4.2x listing price; 3M +72%, 6M +236%, 1M +4.8%, 1W +15.8%; early-Oct dip to ₹504–560
P/E (TTM = FY26)	103x	On post-issue EPS ₹6.23; 76x on reported basic EPS ₹8.40 (weighted pre-IPO shares)
P/B	15.8x	BVPS ₹40.58 (Mar-26)
EV/EBITDA	~65x	FY26 EBITDA ₹11.44 Cr (company definition)
EV/Sales	24.2x	FY26
Dividend yield	0%	Never paid; FY26 skipped "to conserve resources"
Index membership	None	SME platform; ASM/GSM status not verified
Liquidity	~₹2.7 Cr/day	Lot 1,200 sh; 93% delivery on 13 Oct; 521 holders (Sep-26)
Promoter holding / pledge	73.02% / nil	Unchanged Mar→Sep 2026; worth ~₹552 Cr at CMP vs ₹1.11/share cost
Credit rating	None	Unrated; WC limit only ₹1.5 Cr
Broker coverage	None	Only IPO reviews; no targets/consensus. Trendlyne: "Expensive Valuation", momentum 46.1/100 "Technically Neutral"

Company overview

HQ / Regd office

Peenya IV Phase, Bengaluru 560058

Founded

2012 partnership (Apsis Latitude); company 16 Aug 2022

CIN

L29309KA2022PLC164926

Employees

97 permanent (Mar-26); 105 (Sep-25)

Promoters

B.K. Shivakumar (MD), M.K. Pradhan (Chair), V.K. Mariyappan (WTD)

Sector

Precision engineering · A&D Tier-2/3

Certifications

AS9100D, ISO 9001:2015

Auditor

YCRJ & Associates (since 27 Mar 2025)

Next event

H1 FY27 results by ~14 Nov 2026

Plain English. A 14-year-old Bengaluru machine shop founded by three CNC/tooling technicians, run as a partnership until 2022 and listed on NSE Emerge in March 2026 through a ₹35.77 Cr fresh issue. It machines 3/4/5-axis parts (up to 1,200 mm) in aluminium, stainless, titanium, Inconel, copper and plastics for foreign defence OEMs' Indian offset JVs, Indian aerospace firms and one diagnostics OEM. It owns no designs (customers own CAD; Apsis owns CAM/process). Revenue tripled FY23→FY26 to ₹30.65 Cr; Unit I (Peenya) is full and Unit II (Hitech Defence & Aerospace Park, North Yelahanka) opened 14 Aug 2026. Management guides ₹48 Cr in FY27 and aspires to ₹500 Cr by FY31. The stock trades at ~5.8x its IPO price.

Share price, ₹ (listing-day close to 13 Oct 2026). Earlier intraperiod peak ₹343.75 before 8 Jun. 12 Oct: 5% upper circuit 596.90→626.70 on the reported Mukul Agrawal stake [Unverified]. Sources: Screener, ICICIdirect, ValuePickr, Dhan, TradeBrains.

Data freshness: market data 13 Oct 2026 intraday; latest financials H2/FY26 (audited, 28 May 2026); shareholding 30 Sep 2026. H1 FY27 not yet published.

Analyst Notes

First-person editorial read · Aamara Capital · 13 Oct 2026 · [Analyst View] unless labelled

This is a real business, and a very small one. Apsis is a 14-year-old Peenya machine shop with ~97 permanent staff, 17 machine tools at Unit I and FY26 revenue of ₹30.65 Cr. It is good at hard parts: 5-axis titanium and aluminium housings for communication, radar and cockpit-display assemblies, and it claims ~40% of revenue from parts where it is the only qualified supplier. Defence revenue doubled in FY26 (₹9.29→₹20.08 Cr). The order book (₹40.5 Cr, 1.32x revenue), eight Reg-30 orders since listing (~₹22.9 Cr) and a full Unit I all point to genuine demand. The indigenisation tailwind is real too: the FY27 defence capital budget reserves ~75% (~₹1.39 lakh Cr) for domestic procurement, and the 6th positive list (405 items) was notified in Aug 2026.

The price has run far ahead of that business. At ₹642 the market pays ₹774 Cr for ₹7.51 Cr of PAT: 103x trailing earnings, ~65x EV/EBITDA and 15.8x book. That is 5.8x the IPO price, when the stock was offered at ~20x P/E and reviewers called it "fully priced". Even on management's FY27 guidance (₹48 Cr revenue, 37–40% EBITDA), the stock is ~65–70x forward P/E [Est.]. The price already assumes Unit II ramps on time, margins hold and FY28 reaches the ₹90–100 Cr run-rate. None of those has been proven yet.

The IPO-year numbers deserve scepticism. FY25, the year the IPO was priced on, showed a 49.8% EBITDA margin. Material cost fell to 29.2% of revenue from 46.6%, helped by a ₹1.61 Cr WIP/FG build that the RHP admits included "non-saleable" stock. Audited FY25 OCF was ₹0.05 Cr against PAT of ₹6.60 Cr. Inventory costing is now an auditor Key Audit Matter. Margins dropped back to 35% (H1 FY26) and 39% (H2 FY26). I treat 37–40% as the ceiling, not the floor. The FY26 cash recovery (OCF ₹7.04 Cr, ~₹9.6 Cr adjusted) is encouraging but rests on one year.

Concentration is extreme, and the history shows churn. Two unnamed customers make up 69.6% of FY26 revenue, and the top five 87.4%. The FY23–24 top customer was the healthcare OEM, whose revenue matches the healthcare line to the rupee. Its business fell from ₹10.04 Cr to ₹2.36 Cr, and a single defence customer, apparently in Telangana, filled the gap. A new ₹4.30 Cr healthcare order (Sep 2026) helps, but this book of business can shift by a third in one year.

The capex plan doesn't match the funding. The IPO funded ₹27.02 Cr of Unit II machinery. The MD now says Unit II costs ~₹60 Cr, and nothing was spent from the IPO by 31 Mar 2026 against ₹6.05 Cr planned. Unit II opened on 14 Aug 2026 rather than in May, with full machinery due around Dec 2026. Unit II capacity is 3.0 lakh components a year in the RHP but 1.8 lakh in the deck. Management rules out 9–10% bank debt and says accruals were insufficient. So a ~₹33 Cr gap, plus an unfunded Unit III, points to fresh equity. Authorised-capital headroom is only ~24%, so that would need a shareholder vote.

Governance is SME-standard with some sharp edges. Six weeks after listing, the board raised promoter pay 55.8% (₹132 lakh → ₹205.62 lakh a year from 1 Apr 2026). Actual promoter pay was ₹68 lakh in FY25 and ₹135 lakh in FY26, so the FY27 run-rate is ~3x the FY25 base and ~27% of FY26 PAT. In FY26 each promoter was paid ₹1 lakh above the approved terms. The RHP discloses 31 TDS delays, lender stock statements overstated against the books in FY24–25, two charges never filed with the ROC, and "defence" briefly dropped from the MoA. The MD's proprietorship (Acuity Engineering) has a ₹1 Cr omnibus RPT limit. The Emphasis of Matter, by contrast, was a procedural deposit-rules point on a ₹2.85 lakh legacy loan repaid in 2023, and FY26 carried an unmodified opinion with no EoM. It is not a material red flag.

The share register has changed hands. The IPO's anchor book came from the usual SME circuit of Mauritius PCC cells and Cat-II/III AIFs, with no mutual fund. Those holders sold after their lock-ins (Apr/Jun): AIFs fell from 5.25% to 2.73% and FPIs from 3.02% to 0.39%. Retail holders rose 70% to 521. The only "smart money" entry is a TradeBrains-reported 1.21% Mukul Agrawal stake that is not confirmed in the SHP [Unverified]. On ~16 Mar 2027, 26.6% of equity (promoter excess plus promoter group) leaves lock-in, and all three independent directors' terms end on 17 Mar 2027.

What would change my mind. (1) An H1 FY27 print (due by ~14 Nov 2026) above ₹20 Cr revenue at ≥37% EBITDA with positive OCF. (2) A clear, non-dilutive funding plan for Unit II. (3) Named new customers or programmes that bring top-5 concentration below 80%. Until then I would not buy at ₹642. I'd revisit below ~₹450, which is my base-case value of ~₹477 less a margin of safety, or after two clean half-years.

Reconciliation log (figures used throughout this report)

Item	Figures seen in inputs	Chosen value	Label
Business type	"defence electronics/EMS" premise vs filings	Build-to-print precision CNC machining	[Fact]
IPO subscription	91.24x / 120x / 129.08x / 129.33x / 129.41x	129.33x ex-anchor (QIB 99.96x, NII 236.61x, Retail 100.24x); 91.24x incl. anchor portion	[Fact]
Emphasis of Matter	"FY25 EoM, subject unknown" (aggregators)	Procedural deposit-rules EoM on ₹2.85 lakh legacy Satveer Singh loan (repaid Oct 2023), in Sep-25 restated report; FY26 opinion unmodified, no EoM	[Fact]
Unit II location	"Devanahalli" (some aggregators, market/heard files)	Hitech Defence & Aerospace Park, Hoovinayakanahalli, North Yelahanka; Devanahalli Plot 158 = future Unit III	[Fact]
Unit II opening	RHP May 2026; call "end-Jul/early-Aug"	Inaugurated 14 Aug 2026	[Fact]
Unit II capacity	3,00,000 (RHP/DPR) vs ~1,80,000 (FY26 deck)	Both shown; unreconciled	[Fact] conflict
Unit II cost	₹27.02 Cr (IPO objects) vs ~₹60 Cr (MD)	Both; gap ~₹33 Cr unfunded	[Est.] gap
Promoter pay	"tripled" / +55.8% / +97%	Approved ₹132→₹205.62 lakh (+55.8%) from 1 Apr 2026; actual FY25 ₹68.42 lakh, FY26 ₹135.00 lakh	[Fact]
Mukul Agrawal 1.21%	TradeBrains only	Not confirmed in SHP	[Unverified]
FY25 PAT	6.64 (restated) / 6.60 (audited)	Both, labelled	[Fact]
FY25 OCF	0.05 (audited) / 1.63 (restated)	Audited ₹0.05 Cr headline	[Fact]
FY26 EBITDA margin	37.2% / 37.3% / 37.4%	37.3% (company, incl. OI ₹11.44 Cr); 37.4% excl. OI	[Fact]
P/B	14.7x / 15.4x / 15.8x	15.8x on BVPS ₹40.58	[Est.]
P/E	96x / 98x / 103x / 76x	103x on post-issue EPS ₹6.23	[Est.]
RoCE	32% (screen) / 20.56% (company) / ~63% ex-cash	20.56% company; ~63% ex-cash	[Fact]/[Est.]
Lock-in overhang	"inferred ~Mar 2027"	32,05,921 sh = 26.6% free ~16 Mar 2027 (calculated from allotment date)	[Est.] date
Post-listing orders	₹18.1–22.6 Cr; some "unverified"	8 Reg-30 orders ≈ ₹22.9 Cr (all dated filings)	[Fact]
Listing-day mcap ₹193.6 Cr	called "arithmetic error"	Valid: 160.65 × 1.205 Cr shares (closing mcap)	[Est.]
Shareholding labels	Screener FII/DII	Primary SHP: AIF 5.25→2.73%; FPI-I 3.02→0.35%; FPI-II 0.04%	[Fact]
GMP	₹0 (anchor day) / ₹18–20 (bidding)	Both, by date	[Fact]
Anchor size	₹10.07 Cr / ₹10.37 Cr	₹10.07 Cr (9,15,600 × ₹110); 10.37 is a typo	[Fact]

Business Deep-Dive

Sources: RHP 4 Mar 2026 (pp.157–183, 104–114), FY26 AR, FY26 deck, 5 Jun 2026 call, company website

Identity & corporate history

Date	Event
21/23 Jan 2012	Partnership M/s Apsis Latitude formed (partners: Basavaraju K.S., Vinod Kumar M., Lipi Jena); registered 16 Apr 2012 (Firm/RJR/35/2012-13)
Mar 2022	Firm borrows ₹10 lakh from Satveer Singh (₹7.15 lakh repaid May–Jun 2022; ₹2.85 lakh repaid Oct 2023)
1 Jun 2022	Lipi Jena (Chairman's wife) retires; Mihir Kumar Pradhan admitted
16 Aug 2022	Converted to Apsis Aerocom Pvt Ltd; 9,77,769 shares at ₹10
16 Nov 2023	Sajjan & Associates appointed auditor
27 Jan 2024	5-axis CNC line commissioned (two imported 5-axis centres, ₹2.24 Cr, Mar–Apr 2024)
15 Jun 2024	KIADB allotment letter, Plot 158 Devanahalli (future Unit III)
9 Dec 2024	Public limited company; 12 Dec authorised capital ₹1→₹15 Cr
7 / 27 Mar 2025	Sajjan resigns (no peer review); YCRJ appointed
14 Mar 2025	Unit II land lease with Aria Energy Solutions (to 1 Jun 2030)
18 Mar 2025	3 independent directors appointed; new remuneration terms
15 May–20 Aug 2025	"Defence" removed from, then restored to, MoA objects
21 Aug 2025	8:1 bonus (78,22,152 shares)
30 Sep 2025	DRHP filed with NSE Emerge
5 Feb / 4 Mar 2026	NSE in-principle approval / RHP
16 / 18 Mar 2026	Allotment / listing at ₹153
14 Aug 2026	Unit II inaugurated
25 Aug 2026	AS9100D multi-site certificate re-issued
24 Sep 2026	ET Now Machinist ADS 2026 "Lifetime Contribution Award"

Products (RHP major products)

Product	Category	End-industry	Use
Insert part for connector (3 variants)	Precision turning	Aerospace	Hose / flexible-hose connector inserts; flex-rigid hybrid assemblies
Camera interior part (ring)	High-precision mechanical	Aerospace	Aerospace camera / EO assembly
Bottom box / top box	High-precision mechanical	Aerospace	Housings for communication systems
Panel box for assembly	Precision part	Defence	Box for electronic component assembly
Cover bottom / cover left (main body)	High-precision mechanical	Defence	Cover plates for communication units
Scanner focusing block, arm, middle plate	Precision part	Healthcare	Automated blood-testing scanners
HMR (Homodyne Receiver) housing	Example cited	Defence	Raw material <₹20,000 vs selling price ~₹2.1 lakh

Broader uses (RHP): parts "complimenting the radar systems, cockpit displays etc. of an aircraft"; website: RF/microwave components, wing skins, impellers, blisks, gimbals, automated-microscope parts. Deck images show channelled plates consistent with avionics cold plates [Inferred].
Build-to-print only; "build-to-specification" capability not commenced. 250+ new components in FY26 (15+ aerospace); 2.5 lakh+ components FY25–26; ~350 SKUs (analyst figure, MD did not confirm).
Job-work services revenue ₹0.32 / 0.46 / 0.71 / 0.61 Cr (FY23–26; 2.0% of FY26).
Claimed quality: 99.99% accuracy over 3 years; >99% quality rating, >95% customer satisfaction FY26; zero major NCs; no warranty claims in 3 years; 7 customer grievances FY23–H1 FY26, all resolved.
IP: one trademark application (Class 7, No. 6814687, Jan 2025). No patents. R&D "7–10% of revenue" with 15–20 people per MD, not visible as a P&L line.

Process

CAD (customer) → material selection (SS, Ti, Al, plastics) → process planning → CAM/CNC programming → turning, milling, drilling/boring, grinding, EDM → heat treatment (outsourced) → polishing/anodising/plating/coating (in-house and outsourced) → CMM/optical QC → sub-assembly → dispatch. New-part cycle: study → concept → CAM simulation → sample → inspection → customer FAI/audit. No NADCAP special processes, so no NADCAP. ERP: SAP Business One; full SAP in FY27.

Unit I machine park (valuer certificate 27 Feb 2026)

Machine	Type	Origin
Jyoti VMC 1260; 2× Jyoti VMC 850	4-axis VMC	India
BFW Agni+ BMV45	3-axis VMC	India
Ace Micromatic 3× M540V; M850V; M740V-DM	3/4-axis VMC	India
Haas VF-2, VF-2i	4-axis	USA
2× Makino Slim3n	5-axis	Japan
Mazak Variaxis J-500/5X	5-axis	Japan
Okuma MU-4000V	5-axis	Japan
Tsugami M08D-II, Mi08J-II	Swiss-type lathes	Japan
Hermle C400; Doosan mill (FY26 adds, Axis-funded)	5-axis / mill	Germany / Korea
Hexagon Global Silver CMM 1000×710×710; TESA HITE 700; Olympus SZ61TR; Mahr MarSurf CD140; Mahr contour tracer	Metrology	Various

Unit II IPO machine list (RHP quotes, Feb 2026; 25 mfg + 9 support + 6 QC + 3 software + 1 accessory)

Qty	Machine	Vendor	₹ lakh
2	Jyoti VMC 850 NVU	Jyoti CNC Automation	80.2
4	Mazak VC-Ez 510 VMC (vendor bars defence use)	Yamazaki Mazak India	332.7
5	Makino Slim3n + rotary tables	Makino India	588.5
1	DN Solutions DVF 5000 5-axis (Heidenhain TNC640)	Saptechnical / DN Solutions	227.8
5	Tsugami B0326-III Swiss auto-lathe	Tsugami India	588.9
5	DN Lynx 2100LB turning centre	DN Solutions	332.9
3	DN Lynx 2100LYB Y-axis turn-mill	DN Solutions	299.4
–	Autocam AT200R rotary tables (8), Kaeser compressor, Hexagon/Mahr metrology, software (Unoteam, IR Tech), Energethics, MHE Movers	Various	–
25+19	Total machinery object	No orders placed at RHP; quotes only	2,702.01

Facilities

Facility	Location / tenure	Area	Capacity / status
Unit I (regd office)	Plot 392/1, 10th Cross, IV Phase, Peenya. Rented from Chamundi Machine Tools Accessories (unrelated): Shed 1 ₹1.16 lakh/mo, Shed 2 ₹1.22 lakh/mo. Original lease 11 Aug 2021 registered; amendments (incl. 26 Jun 2025) unregistered. Agreement expired 30 Sep 2026; renewal not disclosed.	8,462 sq ft (AR: ~11,000)	See utilisation table; "completely utilised" (MD, Jun 2026) ≈ ₹30 Cr revenue
Unit II	Plots 4-A-14 & 5-A-6, Hitech Defence & Aerospace Park (KIADB), Hoovinayakanahalli, Jala Hobli, North Yelahanka 562149. Leased from Aria Energy Solutions 14 Mar 2025–1 Jun 2030 at ₹5→6→7→8→9 lakh/mo; Apsis-built building (₹0.22 Cr capitalised)	~20,000 sq ft	3,00,000 components/yr (RHP/DPR, Vision X, 24 Sep 2025) vs ~1,80,000 (FY26 deck). Inaugurated 14 Aug 2026; 8 machines by Jun 2026; ~25 in FY27; ~35 by ~Dec 2026; full in FY28. Fire NOC and KSPCB consent pending at RHP
Unit III (planned)	KIADB Plot 158, Devanahalli General Industrial Area; allotment 15 Jun 2024; land not transferred; ₹2.71 Cr advance paid	40,000+ sq ft land	HF/microwave components, display enclosures, aero structures, digital-microscopy parts, assemblies; ">₹70 Cr business"; no capex or timeline

Unit I capacity & utilisation

Period	Installed (components)	Produced	Utilisation
FY23	65,000	53,004	81.5%
FY24	1,00,000	81,008	81.0%
FY25	1,20,000	98,412	82.0%
H1 FY26	1,50,000 (annual)	65,727	~87% annualised

Certifications, exports & geography

Held: AS9100D (multi-site, re-issued 25 Aug 2026), ISO 9001:2015 (TUV SUD; at RHP expiring 29 Aug 2026 and still in old Pvt Ltd name, as were EPCG, ESI, PF and trademark). Not held: NADCAP (not needed), ISO 13485 (none despite healthcare), defence-specific approvals not disclosed.
EPCG: export obligation ₹2.34 Cr; ₹1.45 Cr unfulfilled, due by 31 Jan 2030 (FY2029-30). Contingent duty ₹0.16 Cr (₹0.39 Cr FY25). FY26 exports were ₹2.56 lakh FOB.
First post-IPO export order: USD 84,484 (~₹0.82 Cr), international defence, due 14 Feb 2027.

Revenue by country (₹ lakh)	FY23	FY24	FY25	H1 FY26	FY26
India	957.97 (92.4%)	1,682.67 (99.8%)	2,028.19 (99.0%)	1,363.60 (99.9%)	~3,062
USA	64.89	2.56	10.73	–	–
Netherlands	14.15	–	–	–	–
Israel	–	1.45	5.40	1.58	–
Spain	–	–	4.74	credit note	–
Exports (FOB)	79.03 (7.6%)	4.02	20.87 (1.0%)	1.51	2.56 (0.1%)

Revenue by state (%)	FY23	FY24	FY25	H1 FY26
Telangana	39.0	26.7	60.5 (₹12.40 Cr)	66.0 (₹9.01 Cr)
Karnataka	49.1	71.9	37.6	30.0
Kerala	–	–	–	3.7
Maharashtra	~1	~1	~1	~0.2
Tamil Nadu / Chandigarh	3.6 / –	0.1 / –	– / 0.1	–

People

Function (Sep-25)	Headcount	Key people
Production	58	K.S. Shashidhar, Production & Engineering Head (MD's brother; with firm since 2012; SSLC)
Quality	19	Devaraju C (ex-Tigma Precision)
Engineering	6	MD cites 15–20-person R&D/engineering team
Purchase / Store	3 / 5	Nandeesh S J (ex-Garuda Aerotech)
Finance / BD / Others	4 / 3 / 7	CFO K.N. Shashidhar (CA); CS Saloni Jayati
Total	105	97 permanent at Mar-26 ("over 100" per call); no contract labour, no union

Segment Analysis

Single reportable segment (AS-17). Industry revenue only; no segment EBITDA disclosed (MD: defence and aerospace margins "more or less similar").

₹ lakh (% of rev)	FY23	FY24	FY25	H1 FY26	H2 FY26 (d)	FY26	FY26 YoY
Defence	441.95 (42.6%)	365.69 (21.7%)	929.49 (45.4%)	923.22 (67.6%)	1,085.09	2,008.31 (65.5%)	+116.1%
Aerospace	47.08 (4.5%)	297.63 (17.6%)	616.95 (30.1%)	357.42 (26.2%)	428.15	785.57 (25.6%)	+27.3%
Healthcare	439.92 (42.4%)	1,003.71 (59.5%)	457.95 (22.3%)	75.42 (5.5%)	160.31	235.73 (7.7%)	−48.5%
Others	108.05 (10.4%)	19.66 (1.2%)	44.67 (2.2%)	9.06 (0.7%)	25.85	34.91 (1.1%)	−21.8%
Total	1,037.00	1,686.69	2,049.06	1,365.11	1,699.41	3,064.52	+49.6%

"Others": FY23 industrial machinery 79.03 (= FY23 exports), automotive 16.87, metals/semis; FY25 services 20.00, industrial machinery 10.73, metal recycling, textiles. 3-yr revenue CAGR ~43.5%.

Revenue mix by industry, % of revenue (RHP to H1 FY26; FY26 deck).

Fastest grower: Defence. +116% in FY26 to ₹20.08 Cr; ₹25.33 Cr of the ₹40.5 Cr order book. Over three years, aerospace grew fastest: ₹0.47 Cr (FY23) to ₹7.86 Cr (FY26), ~155% CAGR. Mostly foreign-OEM offset JVs in India delivering to IAF/Navy programmes; ~90% of output delivered in India.

Under pressure: Healthcare = one customer. Healthcare revenue equals the top-1 customer to the rupee in FY23 (₹439.92 lakh) and FY24 (₹1,003.71 lakh), and the #2 customer in FY25 (22.35%) [Inferred]. Peak ₹10.04 Cr (FY24) → ₹4.58 → ₹2.36 Cr (FY26) as the OEM moved to an upgraded scanner; RHP calls it "selective order acceptance". H2 FY26 (₹1.60 Cr) doubled H1; ₹4.30 Cr order (Sep 2026, 7 months) signals an FY27 rebound.

Order book & mix guidance

Segment	Order book May/Jun-26 (₹ Cr)	% of book	FY26 revenue (₹ Cr)	Cover (x)	Long-run mix guided
Defence	25.33	62.5%	20.08	1.26	~60%
Aerospace	12.90	31.9%	7.86	1.64	~30%
Healthcare	1.60	4.0%	2.36	0.68	"Others ~20%" (guided mix sums to 110%)
Others	0.67	1.7%	0.35	1.91	"Others ~20%" (guided mix sums to 110%)
Total	40.50	100%	30.65	1.32

Management focus: defence and aerospace volume via Unit II; healthcare re-entry with the OEM's new scanner; Unit III for HF/microwave components, display enclosures, aero structures and digital microscopy, plus assemblies.

Financials: P&L

FY23–FY25 RHP restated; FY26 audited (audited FY25 in brackets where different). Only four years exist: partnership accounts before Aug 2022 are not public. Half-yearly reporting replaces the 8-quarter table.

₹ Cr	FY23	FY24	FY25	FY26
Revenue from operations	10.37	16.87	20.49	30.65
YoY	–	+62.7%	+21.5%	+49.6%
Other income	0.04	0.01	0.08	0.11
Material consumed	4.64	7.86	5.99	10.78
Change in WIP/FG inventory	(0.48)	(0.07)	(1.61)	(0.77)
Gross profit (margin)	6.21 (59.9%)	9.07 (53.8%)	16.12 (78.7%)	20.64 (67.4%)
Employee cost (% rev)	2.55 (24.5%)	3.09 (18.3%)	3.72 (18.2%)	5.86 (19.1%)
Other expenses	1.74	1.80	2.20	3.32
EBITDA excl. OI (margin)	1.92 (18.5%)	4.17 (24.7%)	10.20 (49.8%)	11.46 (37.4%)
EBITDA, company definition incl. OI	1.93 (18.6%)	4.10 (24.3%)	10.20 (49.8%)	11.44 (37.3%)
Depreciation	0.46	0.62	1.08 (0.93)	1.00
EBIT incl. OI (margin)	1.47 (14.2%)	3.48 (20.6%)	9.13 (44.5%)	10.57 (34.5%)
Finance cost	0.13	0.14	0.26	0.27
PBT (margin)	1.38 (13.3%)	3.42 (20.3%)	8.94 (43.6%)	10.30 (33.6%)
Tax (ETR)	0.35 (25.5%)	0.87 (25.3%)	2.30 (25.7%)	2.79 (27.1%)
PAT (margin)	1.03 (9.9%)	2.55 (15.1%)	6.64 restated (6.60 audited) (32.4%)	7.51 (24.5%)
EPS bonus-adj. (₹)	1.17	2.90	7.54 (7.50)	8.40 basic (89,42,474 wtd sh); ₹6.23 on post-issue shares
Material + job work / revenue	44.7%	46.6%	29.2%	35.2%

Revenue ₹ Cr (bars) and company-definition EBITDA margin (gold line, right scale 0–60%).

Half-year results (₹ Cr)

	H1 FY25 (d)	H2 FY25	H1 FY26	H2 FY26
Revenue	10.97	9.52	13.65	16.99
EBITDA excl. OI (margin)	5.71 (52.0%)	4.48 (47.1%)	4.76 (34.9%)	6.70 (39.4%)
PAT (margin)	3.61 (32.9%)	2.99 (31.4%)	3.27 unaudited / 3.12 restated (23.9%)	4.24 (25.0%)
Revenue YoY / HoH	– / –	– / −13.2%	+24.4% / +43.4%	+78.5% / +24.5%
PAT YoY / HoH	– / –	– / −17.2%	−9.6% / +9.3%	+41.9% / +29.9%
EPS (₹)	–	3.40	3.71	4.75
H2 tax rate	–	–	–	29.75%

Half-year revenue and PAT, ₹ Cr. H1 FY27 due by ~14 Nov 2026; ₹48 Cr FY27 guidance needs ~₹24 Cr per half.

One-offs, reporting gaps & FY26 cost lines

Item	Detail
FY25 prior-period item	₹15.12 lakh in audited FY25: gratuity catch-up 20.13 + leave 1.82, less depreciation write-back 4.00 and capitalised expenses 3.92. Audited depreciation 92.81 vs 107.69 lakh restated
Deck misprint	FY25 PBT shown as ₹908.73 lakh (pre prior-period item)
H1 FY26 mismatch	Restated PBT 4.17, tax 1.05, PAT 3.12 vs unaudited filing PBT 4.25, tax 0.98 (incl. 0.09 DT credit), PAT 3.27. ₹0.15 Cr (~5%) unreconciled
Director remuneration FY26	₹135.00 lakh vs ₹68.42 lakh
Factory rent FY26	₹77.80 lakh vs ₹26.79 lakh (Unit II lease ahead of revenue)
Professional fees / CSR / IPO expenses in P&L	₹35.26 / 8.28 / 2.90 lakh
Audit fees	₹4.50 lakh audit + ₹0.75 lakh tax
RHP-certified operating profit	FY23 188.45 / FY24 408.46 / FY25 1,012.78 lakh (slightly below KPI-table EBITDA)

Why FY25 margin spiked to 49.8%, then fell to 37.3%

Driver	Evidence	Read
Inventory build	Change in inventories −₹161.31 lakh (vs −6.58 lakh FY24) "included accumulation of certain non-saleable stock"; FG ₹1.28 Cr at Mar-25 of which ₹0.48 Cr dispatched by Sep-25; WIP +~910%	Adds ~8 pp to FY25 EBITDA margin [Est.]; material net of inventory change 21.4% of revenue FY25 vs 32.6% FY26
Material intensity	Consumption 46.6% → 29.2% of revenue; domestic purchases ₹3.95 → 2.81 Cr	17-point drop in IPO base year
In-housing via 5-axis machines	RHP cites two 5-axis centres (₹2.24 Cr)	But job work barely fell (₹3.12 → 2.97 Cr) and rose to 48% of purchases
Mix	Away from low-margin healthcare-heavy FY24	Plausible partial driver
Low promoter pay	₹68 lakh in FY25 vs ₹206 lakh run-rate from FY27	~₹1.4 Cr/yr structural cost added (~4.5% of FY26 revenue)
FY26 dip (mgmt)	Unit II pre-operative costs; listing/CSR/governance; raw-material and FX inflation (US/EU inputs); director pay +91–118%	Guidance 37–40% for FY27–28

Earnings quality check. FY25 audited OCF ₹0.05 Cr vs PAT ₹6.60 Cr (0.01x; restated 1.63 = 0.25x). FY25 CFO was only 16% of EBITDA (RHP p.261). FY26 OCF ₹7.04 Cr (0.94x PAT; ~₹9.6 Cr = 1.28x adjusted). Cumulative FY23–26: PAT ₹17.69 Cr vs OCF ₹14.14 Cr (80%). Reviewer Dilip Davda: the FY25 jump "raises eyebrows"; a ValuePickr poster: "SME numbers around IPOs can be window-dressed… Buyer beware!" [Analyst View]: the FY25 margin was not a sustainable base.

Balance Sheet, Cash Flow & Ratios

FY23–Sep-25 restated (RHP pp.74–75); FY26 audited; audited FY25 in brackets

₹ Cr	FY23	FY24	FY25	Sep-25	FY26
Share capital	0.98	0.98	0.98	8.80	12.05
Reserves	0.40	2.95	9.59 (9.24)	4.89	36.85
Net worth	1.37	3.93	10.57 (10.22)	13.69	48.90
Net PPE + intangibles	2.90	7.03	8.05 (7.20)	8.51	12.32
CWIP / Goodwill	0 / nil	0 / nil	0 / nil	0 / nil	0 / nil
LT loans & advances (capex/KIADB)	0	0.14	1.75	3.17	3.44
Inventory	1.00	0.95	2.69 (2.82)	3.30	4.14
Trade receivables	1.80	0.99	3.77	4.92	4.03
Cash & bank	1.09	2.08	1.11	2.27	36.51
Trade payables	2.67	4.27	2.95 (2.85)	3.49	4.75
Total debt (FY26 incl. leases)	2.07	1.32	2.84 (2.76)	2.33	4.49
Total assets	7.22	11.93	18.46 (17.74)	23.56	63.18

FY26 cash ₹36.51 Cr = current accounts 34.39 (incl. ₹31.22 Cr IPO escrow at ICICI Bank) + cash 0.05 + FDs >12m 2.06. Separate ₹7.53 lakh FD lien-marked for EPCG BG.
FY26 inventory: RM 1.21 + WIP/FG 2.93, net of 0.14 slow-moving provision. LT advances: KIADB plot 2.71, capital goods 0.60, prepaid 0.13.
Receivables Mar-26: 97% under 6 months; ₹9.64 lakh 1–2 yrs, unprovided.

Trade-payables ageing (non-MSME, ₹ Cr)	1–2 yrs	2–3 yrs	>3 yrs	>2 yrs total
Mar-25	0.94	0.73	0.47	1.20
Mar-26	–	0.89	1.16	2.05 (43% of payables)

Likely partnership-era balances. KAM: confirmations of receivables/payables incl. "deemed confirmations"; Note 43.1 "subject to reconciliation".

Cash flow (₹ Cr)

	FY23	FY24	FY25 aud. (restated)	H1 FY26	FY26
PAT	1.03	2.55	6.60	3.12	7.51
Op. profit before WC	2.10	4.20	10.16 (10.25)	4.87	11.53
OCF	1.29	5.76	0.05 (1.63)	2.88	7.04
OCF / PAT	1.25x	2.26x	0.01x (0.25x)	0.92x	0.94x
Capex incl. capital advances	0.45	4.92	3.66 (3.91)	3.40	6.41
FCF	0.84	0.84	(3.61)	(0.52)	0.62
Investing CF	(0.45)	(4.91)	(3.41)	(2.44)	(6.07)
Financing CF	0.02	0.15	1.34	(0.26)	33.41
RHP FCFE (SME eligibility, ₹ lakh)	87.14	13.57	−63.86	–	–
FCF yield on ₹774 Cr	–	–	–	–	0.08%

FY25 OCF bridge (₹ Cr)	Amount
Profit before WC changes	10.16
Receivables (up 282% on 21% growth; debtor days 21→67)	(2.78)
Inventory	(1.87)
Loans & advances	(1.49)
Payables	(1.31)
FD placement classified in OCF	(1.04)
Tax paid	(2.04)
OCF (≈1.09 ex-FD = 0.17x PAT)	0.05

RHP explanation: Feb–Mar billing rose ₹2.63→3.71 Cr; some OEMs start 30-day credit only after quality approval; complex WIP. FY26 OCF helped by payables (+1.90) and customer advances (₹0.41→1.65 Cr); depressed by FD (−1.02), KIADB advance (−0.96), capital advances (−0.60). FY26 financing: net IPO 31.18, LT loans +1.66, ST +0.85, interest −0.27. AR FY25 cash-flow arithmetic error: net change shown +2.20 and closing 210.34 lakh vs results filing −201.38 and 6.77.

Working capital & ratios

Metric	FY23	FY24	FY25	FY26
Debtor days	63	21	67	48
Inventory days (on COGS)	88	44	235	151 (CFO claims "77")
Creditor days (COGS / purchases)	234 / –	200 / –	237 / 166	173 / 153
Cash conversion cycle	−83	−135	+65	+26
RoE	73.1%	96.4%	91.6% (RHP) / 96% (co.)	25% avg / 15.4% closing
RoCE (company)	42.2%	64.0%	65.8% / 84.35%	20.56%
RoCE ex-cash [Est.]	~63%	~108%	~77%	~63%
Debt/equity incl. leases	1.51	0.34	0.27 (co. 0.16 ex-lease)	0.09
Net debt/equity	0.72	net cash	0.16	−0.65
Interest cover (EBIT/interest)	11x	24x	36x	39x
DSCR (co.) / Current ratio	<1.0 / <1.0	– / <1.0	6.02 / 1.16	2.77 / 3.94
Asset turn / Fixed-asset turn	1.44x / –	1.41x / 3.4x	1.11x / 2.7x	0.49x / 3.0x
BVPS (₹)	–	–	11.6 (bonus-adj.)	40.58

Company FY26 turnover ratios (FY25): receivables 7.86x (8.63x), inventory 4.59x (4.29x), payables 2.98x (1.78x).

Debt structure (Mar-26 ≈ ₹4.49 Cr incl. leases; ~₹4.18 Cr borrowings)

Facility	₹ lakh	Lender / terms / security
Term loans	167.26 NC + most of 174.44 current	Axis Bank 9.25%: Hermle 5-axis (EMI 14.34 × 24), Doosan mill (EMI 1.99 × 24); hypothecated machines; charges ₹0.478 Cr (25 Sep 2025), ₹3.14 Cr (10 Nov 2025)
Machine loan / lease	13.93 NC + 30.84 cur.	Siemens Financial Services 10%; sanction 160; 12 EMIs of 14.07 lakh; Makino ×2, AMS 740 VDM, Tsudakoma table; ₹14.06 lakh deposit; promoter guarantees
Cash credit	nil (28.28 Mar-25; 79.80 Sep-25)	SBI limit 150, EBLR+2% = 10.65%; stock, receivables; promoter guarantees
Vehicle	small	Toyota Financial 9.25%, 60 × 0.52 lakh; RHP says closed 27 May 2025, AR still lists it; charge never registered with ROC
Director loans (interest-free, on demand, no written agreements)	58.98 (119.54 FY25)	Shivakumar 24.91 (limit 70); Pradhan 18.54 (70); Mariyappan 15.53 (40)
Credit card	3.87	ICICI Bank
Closed	–	SBI CC 13 / TL 27 at 13.15%; SBI GECL 5.73 at 9.65%; Kotak Mahindra Prime ₹17.07 lakh (charge never filed)

~₹2.05 Cr due within 1 year, ~₹1.81 Cr in year 2. s.180 borrowing approval ₹50 Cr (EGM 27 Mar 2025), which management says it won't use. At Sep-25, total borrowings were ₹232.66 lakh: secured 136.44 (incl. 28.85 finance lease), unsecured 96.22 (~41% interest-free promoter money). Credit rating: none (CRISIL/ICRA/CARE/IndRa/Acuité/Infomerics/Brickwork searched).

Contingent liabilities & commitments (₹ lakh)

Item	FY23	FY24	FY25	Sep-25	FY26
EPCG duty ("claims not acknowledged as debt" in RHP)	nil	39.00	39.00	24.09	16.14
Capital commitments	–	–	232.54	499.50	506.99
Total	–	–	271.54	523.59	523.13

Groww's "₹2.71 Cr contingent liabilities" = this FY25 total (₹2.72 Cr), not extra exposure.

Equity & share-count history

Date	Event	Shares after	Note
16 Aug 2022	MoA subscription at ₹10	9,77,769	Shivakumar 3,51,997; Pradhan 3,51,997; Mariyappan 2,73,775
18 Nov 2024	Transfers to promoter group at par	9,77,769	800 Leelavathi; 197 K.S. Shashidhar; 997 Lipi Jena; 775 Veena
12 Dec 2024	Authorised ₹1→₹15 Cr	–	1.5 Cr shares
21 Aug 2025	8:1 bonus, ₹7.82 Cr reserves capitalised	87,99,921	Promoter cost ₹1.11/share
16 Mar 2026	IPO fresh issue at ₹110	1,20,51,921	27.0% dilution

No QIP, preferential, warrants, rights, sweat equity, convertibles or ESOP. Authorised headroom ~29.5 lakh shares (24%). Unit II gap ~₹33 Cr at ₹600 ≈ 5.5 lakh shares (~4.6%) [Est.].

IPO objects & utilisation (₹ lakh)

Object	Planned	FY26 plan	FY27 plan	Used by 31-Mar-26	Unused
Machinery capex, Unit II	2,702.01	605.08	2,096.93	0	2,702.01
General corporate purposes	391.49	–	–	0	391.49
Issue expenses (13.5%; BRLM ₹2.52 Cr)	483.70	–	–	455.00	28.70
Total	3,577.20	–	–	455.00	3,122.20

No monitoring agency (needed only >₹50 Cr); objects not appraised; Reg 32 "no deviation"; auditor certified (UDIN 26234143QDCBQF5828). Pre-IPO deployment ₹15 lakh. H1 FY27 update due Nov 2026.

Management, Promoters & Governance

Primary: RHP (pp.28–101, 193–262), EGM notice (2 May 2026), FY26 AR. governance_rhp findings take precedence over aggregator summaries.

Promoters & promoter group

Holder	Relationship / role	Pre-IPO shares	Pre %	Post %
Basavaraju Kanakatte Shivakumar (DIN 09704693)	MD, age 37	31,59,000	35.90	26.21
Mihir Kumar Pradhan (DIN 09704695)	Chairman & ED, age 49	31,59,000	35.90	26.21
Vinod Kumar Mariyappan (DIN 09704694)	WTD, age 37	24,57,000	27.92	20.39
Lipi Jena	Chairman's wife; founding partner 2012–22	8,973	0.10	0.07
Leelavathi T.G.	MD's wife	7,200	0.08	0.06
Veena B.R.	WTD's wife	6,975	0.08	0.06
K.S. Shashidhar	MD's brother; Production Head	1,773	0.02	0.01
Total		87,99,921	100	73.02

Promoter	Background	Other interests
B.K. Shivakumar (MD)	NTTF general machinist (2004–06) + 12 months training; CNC technician/programmer 2007–09; last employer Delcam Software India; 17 yrs. Leads manufacturing, BD, quality. No formal education beyond senior secondary	Proprietor, M/s Acuity Engineering (only promoter-group entity); no other directorships
M.K. Pradhan (Chairman)	Diploma + post-diploma plastics mould technology, CIPET Chennai (1997–98); Autodesk India application engineer May 2002–Feb 2022; joined firm Jun 2022 replacing his wife. Strategy and purchasing	None. Income-tax demands AY2009–13 ₹9.12 lakh
V.K. Mariyappan (WTD)	National Apprenticeship Certificate, tool & die (NTTF 2004–08); ex-Nash Industries. Experience stated as 4 yrs (RHP/AR) vs 17 (DIR-12) vs 25 (RHP correction). No formal education beyond senior secondary. Production & engineering; reappointed at AGM 26 Sep 2026	None

Relatives in promoter group (RHP pp.219–220) include parents, siblings, children and in-laws of each promoter. RHP p.218 says promoters are "not interested as a member of a firm", which contradicts Acuity. No group companies; no bodies corporate.

Board & KMP

Name	Role	Category	Appointed / term	Background
Mihir Kumar Pradhan	Chairman & ED	Promoter, exec	16 Aug 2022	See above
B.K. Shivakumar	MD	Promoter, exec	16 Aug 2022	See above
V.K. Mariyappan	WTD	Promoter, exec	16 Aug 2022	See above
Aniruddh Kumar (68)	Independent	Non-exec	18 Mar 2025 (regularised 27 Mar); to 17 Mar 2027	BTech/MTech Mech; Chartered Engineer; ex-Director (Rail & Metro), BEML Apr 2014–Oct 2017; director Stesalit Ltd
Jayanthi Amarnath Bhagath (48)	Independent (woman)	Non-exec	Same; to 17 Mar 2027	BBA/MBA; ex-GM Tata Advanced Materials 2011–15; founder-director JBI Healthcare Pvt Ltd; runs J.B. International (healthcare & aerospace) — end-market overlap; not an RPT counterparty; AY2006 IT demand ₹2.13 lakh
Dayananda Swamy M. (38)	Independent	Non-exec	Same; to 17 Mar 2027	BBM/MBA; ~8 yrs finance, Indiqube Spaces
Kancharla Naga Shashidhar	CFO	KMP	Mar/Apr 2025	CA; ~2 yrs experience; FY26 pay ₹15.15 lakh
Saloni Jayati	CS & Compliance	KMP	13 Feb 2025	B.Com, ACS; ~2 yrs; FY26 pay ₹7.43 lakh

Committees: Audit, NRC, Stakeholders, CSR, Internal Operational. Sitting fees ₹20,000/board, ₹5,000/committee; ₹2.85 lakh per ID in FY26. Internal auditor Murali & Venkat (Q4 FY26 onward; internal audit only began post-listing); secretarial auditor ABM & Associates. NRC policy link on website is a dead "#". SME: no CG report (filed "not applicable" 12 Oct 2026). Zero investor complaints (Sep-26 quarter).

Remuneration

₹ lakh	FY23	FY24	FY25	H1 FY26	FY26	Approved from 18 Mar 2025	Approved from 1 Apr 2026	Hike
B.K. Shivakumar (MD)	18.01	25.72	25.50	25.80	52.60	51.60	79.98	+55.0%
M.K. Pradhan (Chair)	13.80	18.77	22.21	20.40	41.80	40.80	63.24	+55.0%
V.K. Mariyappan (WTD)	13.27	19.06	20.71	19.80	40.60	39.60	62.40	+57.6%
Promoters total	45.08	63.55	68.42	66.00	135.00	132.00	205.62	+55.8%
K.S. Shashidhar (relative)	–	–	14.70	–	19.32	–	–	–

Board approved 30 Apr 2026 (NRC); notice 2 May; EGM 26 May 2026 by VC (14 minutes; cut-off 19 May; e-voting 22–25 May; scrutiniser Ajay Madaiah B.B.); special resolutions ss.196–198. Justification: "growth, increased scale… industry benchmarks", no peer benchmark given. ₹205.62 lakh = ~27% of FY26 PAT; 3.0x the FY25 actual base of ₹68.42 lakh, 1.5x FY26 actual. FY26 pay exceeded approved terms by exactly ₹1.00 lakh per promoter (all in H2), with no bonus plan. Median employee pay +2.17% (₹2,40,803) vs managerial +64.06%; MD = 21.84x median. AR Rule 5(1) % (118.25/112/91.38) don't reconcile with Note 35 (+106/+88/+96%). Notice cites "www.avrofurniture.com" for results (copy-paste error).

IPO structure, anchors & listing flows

Item	Detail
Issue	100% fresh book-built issue of 32,52,000 shares at ₹110 (band ₹104–110; FV ₹10 + ₹100 premium); gross ₹35.772 Cr, net ₹30.935 Cr; no OFS; promoters did not participate
Allocation (shares)	Anchor 9,15,600 (₹10.07 Cr, ~28%) · QIB ex-anchor 6,24,000 · NII 4,64,400 · Retail 10,82,400 · Market maker 1,65,600
Lot / minimum	1,200 shares; retail minimum 2 lots (₹2.64 lakh)
Day-wise subscription (5paisa)	Day 1 3.39x (QIB 0.01x, NII 6.14x, retail 4.17x) · Day 2 15.60x · Day 3 129.08x at 4:49 PM (QIB 99.96x, NII 236.56x, bNII 294.17x, sNII 121.32x, individual 99.75x)
Final	129.33x ex-anchor (QIB 99.96x, NII 236.61x, Retail 100.24x; 59,345 applications) · 91.24x incl. anchor (28.16 Cr shares bid vs 30,86,400; 59,203 applications). ~28.02 Cr shares bid ≈ ₹3,082 Cr (QIB ₹686 Cr, NII ₹1,208 Cr, individuals ₹1,188 Cr)
GMP	₹0 on anchor day (10 Mar); ₹18–20 (16–18%) during bidding; listing at +39% beat GMP >2x
BRLM	Oneview Corporate Advisors (formerly Guiness; Alka Mishra), 6th mandate in 3 fiscals; of its last 5 listings, 1 at par, rest at +1.8% to +90%. BRLM fees ₹2.52 Cr
Other intermediaries	Market maker Basan Equity Broking (3-year obligation, agreement 13 Feb 2026); registrar Integrated Registry Management Services; legal counsel Legacy Law Offices; IR agency Finportal
Dates	NSE in-principle 5 Feb 2026; anchor 10 Mar; bid 11–13 Mar; allotment 16 Mar; listing 18 Mar 2026

Anchor investor (7; 10 Mar 2026)	Shares	₹ Cr	Status
M7 Global Fund PCC (Cell Dewca per Chittorgarh; "Asas Global Opportunities Fund" per ipoplatform)	1,60,800	1.77 (17.56%)	FPI Cat I fell to 0.35%, so largely exited
Nova Global Opportunities Fund PCC – Touchstone	91,200	1.00 (9.96%)	Likely exited/trimmed
Zeal Global Opportunities Fund	n.d.	–	Allocations behind IPOMatrix paywall; 5 AIFs held 2.73% at Sep-26 (names in SHP not disclosed)
Avora SME Fund 1	n.d.	–
Flumen Investment Trust – 1729 Growth Fund 1	n.d.	–
RMS Growth Fund Scheme 1	n.d.	–
Viney Growth Fund	n.d.	–

The anchor book was the usual SME circuit (Mauritius PCC cells, Cat-II/III AIFs), with no long-only mutual fund.

Bulk deals (NSE)	Party	Side	Qty	Avg ₹	% equity
18 Mar 2026	Kashmira Ajay Patel	Buy	2,20,800	153.23	1.83%
18 Mar 2026	Nuvont Capital Management Pvt Ltd	Buy	96,000	154.74	0.80%
18 Mar 2026	Kanjibhai Rabadiya	Buy	88,800	158.57	0.74%
18 Mar 2026	Snehal I Patel	Buy	76,800	154.43	0.64%
18 Mar 2026	Mayuri Shripal Vora	Buy	61,200	154.80	0.51%
30 Mar 2026	Kanjibhai Rabadiya	Sell	90,000	155.71	0.75% (12-day flip)

No block deals; no bulk deals since 30 Mar 2026. The Apr–Oct re-rating came without visible accumulation. Current holdings of the listing-day buyers are unverified. Mukul Mahavir Agrawal ~1,46,400 sh (1.21%, ~₹9.2 Cr), Sep-26 half, per TradeBrains only [Unverified].

Shareholding (primary SHP)

Category	Pre-listing	31 Mar 2026	30 Sep 2026	Change
Promoter & group (7)	100%	73.02%	73.02%	nil; no pledge
AIFs (DII)	0	5.25% (7; 6,32,400 sh)	2.73% (5; 3,28,800 sh)	−2.52 pp; 2 AIFs exited
FPI Cat I	0	3.02% (3; 3,63,600 sh)	0.35% (3; 42,000 sh)	−2.67 pp
FPI Cat II	0	0	0.04% (1)	new
Mutual funds	0	0	0	never
Resident ≤₹2 lakh	0	5.45% (238)	8.72% (433)	+3.27 pp
Resident >₹2 lakh (HNI)	0	8.58% (12)	8.25% (16)	−0.33 pp
Bodies corporate	0	3.39% (12)	5.90% (28)	+2.51 pp
NRIs / Others	0	0.43% / 0.88%	0.46% / 0.53%	~
Foreign ownership limit used	0	3.45%	0.85% (1.01% Jun-26)	–
Shareholders	7	307	521	+70%

Non-promoter holdings, % (promoters flat at 73.02%). Institutions sold after anchor lock-ins; retail and bodies corporate bought.

Lock-in schedule (RHP pp.99–101; dates computed from 16 Mar 2026 allotment)

Tranche	Shares	% post-issue	Lock-in	Expiry
Minimum promoter contribution (MPC)	24,13,000	20.02%	3 years	~16 Mar 2029
Promoter excess, 50%	31,81,000	26.39%	2 years	~16 Mar 2028
Promoter excess, remaining 50%	31,81,000	26.39%	1 year	~16 Mar 2027
Promoter group (Reg 239)	24,921	0.21%	1 year	~16 Mar 2027
Anchors (7 funds)	9,15,600	7.6%	50% 30d / 50% 90d	15 Apr / 14 Jun 2026 (expired)

MPC per promoter: Shivakumar 3,50,000 MoA + 5,18,700 bonus; Pradhan same; Mariyappan 2,70,000 + 4,05,600. ~26.6% of equity frees ~16 Mar 2027 [Est.]; ID terms end 17 Mar 2027. Pledge nil (Reg 31(4) declaration ~20 Jun 2026). No promoter SAST/PIT trades; trading-window closures filed. Promoter guarantees on bank lines (not a pledge).

Related-party transactions

₹ lakh	FY23	FY24	FY25	H1 FY26	FY26
Shivakumar loan received / repaid	27.18 / 1.30	15.60 / 9.73	26.20 / 10.29	– / 10.00	95.00 / 115.00
Pradhan loan received / repaid	25.88 / nil	20.97 / 5.17	15.00 / 0.29	10.00 / 35.39	10.04 / 45.39
Mariyappan loan received / repaid	20.13 / nil	11.20 / 6.92	18.22 / 19.84	14.78 / 10.00	14.78 / 20.00
Expense reimbursement (S / P / M)	2.11 / 10.56 / 1.95	17.51 / 10.61 / 5.86	3.13 / 11.53 / 8.36	5.55 / 7.19 / 1.92	–
Promoter loans outstanding	71.89	97.84	126.83 (AR: 119.54)	96.22	58.98
Acuity: material purchases	–	40.00	–	–	0.75 (purchases & expenses)
Acuity: commission / technical assistance	–	28.17	4.00	–	–
Acuity: software & installation	11.45	0.21	–	–	–
Acuity: loan (₹10 lakh) / balance	(10.00) loan; (3.66)	(10.00); payable (60.82)	repaid 10.00; advance 4.75	4.75	advance 3.94

Reimbursements cover material, employee, finance, labour and other costs paid personally by directors (weak-control signal).
Acuity omnibus approval ₹1 Cr/yr (board 16 Aug 2025; AOC-2 "arm's length"). FY24 commission ₹28.17 lakh ≈ MD's whole FY24 salary (₹25.72 lakh), so it could work as indirect pay outside s.197 [Analyst View].
MD loan round-trip H2 FY26: ~₹95 lakh in, ~₹105 lakh "repaid and adjusted" while bank borrowings rose (LT +165.63, ST +84.85 lakh). Purpose unexplained.
FY25 comparatives differ, AR vs RHP (~₹7.3 lakh). K.S. Shashidhar was not in the RHP RPT table but is in FY26 Note 35. Satveer Singh: unidentified nil-balance lender.

Auditor, EoM, CARO & compliance

Auditor	Date	Event
Sajjan & Associates (FRN 015801S)	16 Nov 2023	Appointed for 5 years (ADT-1 wrongly showed 19 Oct 2023)
Sajjan & Associates	7 Mar 2025	Resigned: no peer-review licence
YCRJ & Associates (FRN 006927S; peer review 015732)	27 Mar 2025	Casual vacancy; audited FY25 profit-spike year
YCRJ (partner CA Ramesh U. Angadi)	20 Aug 2025; report 28 May 2026	Reappointed 5 yrs; FY26 unmodified, no EoM; KAMs: (1) receivable/payable confirmations incl. deemed; (2) inventory costing/overhead absorption

Emphasis of Matter, in context. The EoM was in the restated report to 30 Sep 2025. It covers a ₹2.85 lakh balance of a ₹10 lakh loan the partnership took from Satveer Singh in Mar 2022, carried over on conversion and repaid Oct 2023. It is a deposit-rules point under the Companies Act; a PCS certificate says no compounding is needed. The opinion was not modified, there are "no qualifications", and the FY26 report has no EoM. Not a material red flag. [Fact]

Statutory-dues delays (RHP RF15, certified 2 Mar 2026)	Instances	Worst
EPF	7	27 days (Jan 2023)
ESI	5	3 days
Professional tax	5	29 days (Nov 2022)
TDS	31	65 days (Jul 2025), 61 (Aug 2025), 52 (May 2025); 11 instances Apr–Sep 2025
GST returns	23	GSTR-9/9C FY25 59–60 days late

Litigation (RHP)	Cases	₹ lakh	Detail
Company: TDS TRACES demands	4	2.73	FY23 0.03; FY24 2.14; FY25 0.25; FY26 0.31
Promoter M.K. Pradhan: income tax	4	9.12	AY2013 4.30; AY2012 0.74; AY2010 2.41; AY2009 1.67 (raised 2011–14, under adjudication)
ID J.A. Bhagath: income tax	1	2.13	AY2006, s.143(3)
Total	9	13.98	Materiality ₹17.03 lakh; no criminal/civil/SEBI matters

Governance findings (updated from primary documents)

Finding	Detail	Severity
Lender stock-statement overstatement	Receivables/current assets reported to SBI above book in certain FY24–25 quarters (e.g., Q4 FY24 book debts ₹19.26 Cr reported vs ₹0.99 Cr books); "decimal" errors; outside CARO (limits <₹5 Cr); FY26 Note 41 no variance	Red
Post-listing pay hike	+55.8% from 1 Apr 2026; ₹1 lakh/promoter above approved FY26 terms	Red
ROC lapses	CHG-1 never filed (Toyota ₹24.18 lakh; Kotak Prime ₹17.07 lakh); ADT-1, DIR-12 (tenure dates, designations, experience), MR-1 errors	Amber
MoA "defence" omission	Removed 15 May 2025, restored 20 Aug 2025; business continued (ultra vires risk)	Amber
Acuity / MD loans	₹1 Cr omnibus; H2 FY26 round-trip	Amber
Leases & insurance	No owned property; amendments unregistered; no building or business-interruption insurance	Amber
Thin finance bench	CFO/CS ~2 yrs each; internal audit from Q4 FY26; SAP in FY27	Amber
Compliance gaps	POSH committee not constituted; maternity policy not formalised; CSR ₹0.78 lakh unspent	Amber
EoM / auditor change	Procedural, explained	Low
Subsidiaries / group	None; no JVs, no acquisitions; organic	Clean
Positives	No pledge; unmodified FY26 opinion; calls held despite SME; Reg-30 orders with RPT declarations; ex-BEML director	Positive

Supply Chain

↑ Upstream: what Apsis depends on

Purchases (₹ lakh, % of total)	FY23	FY24	FY25	H1 FY26
Domestic raw material	248.21 (59.5%)	394.93 (51.0%)	281.48 (45.1%)	206.51 (39.8%)
Imported raw material	13.75 (3.1%)	26.58 (3.4%)	45.40 (7.3%)	20.79 (4.0%)
Job-work charges	144.15 (34.6%)	312.35 (40.3%)	297.27 (47.6%)	291.06 (56.2%)
Other direct	10.69	41.08	–	–
Total purchases	416.85	774.94	624.15	518.36

Supplier concentration (% purchases)	FY23	FY24	FY25	H1 FY26
Top-1	17.15	22.98	11.25	12.33
Top-3	42.7	45.1	31.9	32.5
Top-5	59.71	62.41	47.33	47.56
Top-10	71.14	79.44	61.85	64.20

Dependency	Detail
Named job-work vendors	Alcoats (coatings); Shree Manjunatha Hitech CNC; Spacenex Aero Pvt Ltd; Advance Precitech; Hightemp Aerospace Pvt Ltd (heat treatment). Mostly Bengaluru. Customer-approved special processes → switching needs requalification (RHP risk #10)
Materials	Al, steel, SS, Ti, Inconel, Cu, engineering plastics, tooling/inserts, lubricants; material supplied by Apsis or by customers
Domestic sourcing	Karnataka, Maharashtra
Import countries	China, Finland, Israel, Netherlands, Taiwan, UAE (Dubai), USA, UK
RM imports CIF (₹ lakh)	FY23 11.25 · FY24 26.29 · FY25 47.02 · FY26 113.85 (~10% of purchases)
Capital-goods imports CIF (₹ lakh)	FY24 113.94 · FY25 142.02 · FY26 431.64 (total FY26 imports ₹5.45 Cr)
Machine tools	Unit I: Jyoti/BFW/Ace (IN), Makino/Mazak/Okuma/Tsugami (JP), Haas (US), Hermle (DE). Unit II: DN Solutions (KR, 9), Makino 5, Mazak 4, Tsugami 5, Jyoti 2. 6–10 month lead times caused the May→Aug slip
Supply contracts	None long-term or exclusive; supplier names withheld; 7 material creditors held ₹215.12 of ₹349.06 lakh payables (62%) at Sep-25 (40 MSME ₹57.04; 90 others ₹292.02)
Cost pass-through	No escalation clause; risk "marginally considered" at quoting; fixed-price POs 2–15 months (defence 2–2.5 yrs)
Utilities	Grid power; UPS only, no long backup (RHP risk)
Related supplier	Acuity Engineering (MD): ₹68.4 lakh FY24, ₹4.0 lakh FY25, ₹0.75 lakh FY26

↓ Downstream: who depends on Apsis

Customer concentration (% revenue)	FY23	FY24	FY25	H1 FY26	FY26
Top-1	42.42 (₹439.92 lakh)	59.51 (₹1,003.71 lakh)	52.03 (₹1,066.04 lakh)	39.41 (₹538.04 lakh)	35.59
Top-2	–	–	74.38	–	69.62
Top-3	87.66	94.05	84.04	76.14	77.31
Top-5	94.22	97.68	94.60	88.04	87.37
Top-10	99.53	99.65	99.00	98.70	96.97

Customer concentration, % of revenue. Names withheld (NDAs / no consent).

Who: 15–20 active customers; 7–8 for ~12 years; 12–15 added in 5 years; ~4 added Feb–May 2026 (HEMCE 2026, Indian DefSpace Symposium, IMS, referrals). "Most orders… from foreign OEMs, because of the defence offset business… joint ventures and offices here." ~90% delivered in India → IAF, Navy, other defence. RHP: "leading domestic and international OEMs and government enterprises". Telangana 66% of H1 FY26 points to the Hyderabad A&D cluster [Inferred]; no names should be assumed.
End-products: airborne/ground communication systems, radar, cockpit displays, EO/camera assemblies, aerospace fluid-hose assemblies, flex-rigid electronics, panel boxes, structural/rotating aero parts, blood-test scanners, digital microscopes. No programmes named.
Stickiness: Apsis owns validated CAM/process; FAI and audits needed; ~40% of revenue sole-source (rivals "couldn't develop these components" in 5 years); "hardly one or two competitors in India" on most parts.
Tenors: ~30% of orders <1–1.5 yrs, ~30% (defence) 2–2.5 yrs; projections 5–6 yrs, not firm; Reg-30 POs 2–15 months.
Terms: debtor days ~45–48; customer advances ₹1.65 Cr (from ₹0.41 Cr); some OEMs start 30-day credit after quality approval.

Value-chain map

Inputs: alloy mills/distributors (Al, steel, SS, Ti, Inconel, Cu, plastics; KA/MH + 8 import countries) · machine tools from IN/JP/KR/US/DE (6–10 mo lead)

▼

Apsis Aerocom: CAM → 3/4/5-axis milling, Swiss/turn-mill, EDM → job workers (overflow machining, heat-treat e.g. Hightemp Aerospace, coating/anodise e.g. Alcoats) → CMM inspection → minor assembly · Unit I Peenya, Unit II North Yelahanka, Unit III Devanahalli (planned)

▼

Tier-1 / OEM customers: foreign-OEM JVs/offices in India (Telangana/Karnataka), government enterprises, one diagnostics OEM → communication units, radar, cockpit displays, EO cameras, hose assemblies, scanners

▼

End users: Indian Air Force, Indian Navy, other defence; civil aerospace; labs and hospitals

Where pricing power sits. Upstream: Apsis is a price-taker (purchases ~₹11 Cr/yr, no contracts, imported machines, ~50% job-work reliance). Versus customers: mixed. In its favour: niche complex parts, ~40% sole-source, CAM lock-in, demand above capacity. Against it: top-5 = 87%, customer-owned designs, no escalation clause. 35–50% EBITDA shows real value capture today. Downstream: power sits with OEMs/primes and ultimately MoD; offsets and indigenisation pull demand to qualified Indian sub-tiers. [Analyst View]

Competitive Position

Position: a micro-cap Tier-2/3 AS9100 job shop in the fragmented Peenya/Bengaluru cluster. No market-share data exists. Apsis's ~USD3.6 mn revenue is <0.03% of India aerospace parts (~USD13.6 bn 2023 → USD21.5 bn 2030, Grand View 6.8% CAGR; IMARC USD16.2 bn 2024 → 29.5 bn 2033) and ~0.05% of FY26 private defence production (~₹42,000 Cr) [Est.]. The RHP peer is Unimech only, which reviewer Davda called an "eyewash" comparison. Industry report: Infomerics (20 Aug 2025), commissioned by the company.

Company	Mcap ₹ Cr	FY26 Rev	Growth	EBITDA%	PAT%	RoE	P/E	EV/EBITDA	Moat
Apsis Aerocom (SME)	774	30.65	+49.6%	37.3%	24.5%	15.4% (25% avg)	103x	~65x	Narrow: AS9100, ~40% sole-source; tiny, 87% top-5
Unimech Aerospace	9,276	240	−1.2%	31.7%	26.3%	8.5%	~129x	~93x	Export build-to-print aero tooling/parts; PAT flattered by ~₹43 Cr other income
Azad Engineering	19,277	603	+31.9%	37.3%	22.2%	8.8%	~139x	~82x	LT contracts, turbine airfoils; debtor days ~189
MTAR Technologies	23,251	876	+29.6%	19.5%	10.7%	11.4%	~175x	~103x	Nuclear/space/defence assemblies
PTC Industries	38,223	603	+95.8%	22.2%	16.9%	6.8%	~303x	~223x	Ti/superalloy melting, castings
Dynamatic Technologies	9,696	1,621	+15.5%	11.5%	2.0%	3.8%	~231x	~51x	Sole-source aerostructures; leveraged (₹638 Cr debt)
Aequs (ref.)	17,806	1,230	+33.0%	7.5%	−9.2%	−7.6%	n.m.	~239x	Belagavi SEZ ecosystem; loss-making
Millworks Tech (BSE SME, listed 21 Jul 2026)	~1,978	148.77	+573%	~37.8%	24.9%	~45%	~53x	n.a.	4 AS9100 units Bengaluru, ~90 machines; HAL, Vande Bharat, drones; acquisitions (Hindustan Springs, Vidwan); ₹146 Cr IPO

Computed by market analyst from Screener/StockAnalysis, 13 Oct 2026. IPO-review sites also compared Digilogic, Shree Refrigerations, CFF Fluid Control; ipoplatform used Ace Furnaces, Pioneer Fabricators, Weldor CNC, Laser Technologies, Clastek. Large unlisted/captive rivals: Tata Advanced Systems, Mahindra Aerostructures, Godrej Aerospace, L&T Precision, Bharat Forge/KSSL, LMW Aerospace, DPSU shops (HAL, BEL, BDL, BEML), hundreds of MSMEs in Peenya, Hosur, Hyderabad, Pune.

vs Peer	Apsis stronger	Apsis weaker
Unimech	+50% vs −1% growth; 37% vs 32% margin; lower P/E; domestic defence	1/8 revenue; no global OEM qualification; Unimech ~₹590 Cr cash
Azad	Faster growth; cheaper	Multi-year OEM contracts, ~20x revenue
MTAR	37% vs 20% margin; net cash	Decades of qualification; assembly content
PTC	103x vs 303x P/E	Strategic materials moat
Dynamatic	Margins, RoE, net cash	Sole-source airframe programmes
Aequs	Profitable, net cash	~40x revenue, integrated SEZ
Millworks	Higher defence share; organic growth; 5-axis exotic niche	~5x revenue, 4 units, more capital, diversified, named HAL record, ~53x P/E

Porter's Five Forces

Force	Intensity	Rationale
New entrants	Medium	AS9100, FAI, vendor registration, 5-axis capex, CAM talent; IPO-funded SMEs adding capacity
Buyer power	High	DPSUs/Tier-1s/foreign primes; top-5 87–98%; L1 tenders; customer drawings; dual-sourcing possible
Supplier power	Medium	Specialty alloys on POs; top-5 47–62%; imported machines (₹ exposure)
Substitutes	Low–Med	Additive, castings/forgings, DPSU in-house machining
Rivalry	High	Fragmented; Davda: "highly competitive and fragmented… becoming overcrowded"

Moat: narrow and unproven [Analyst View]. Real switching costs on qualified parts; no own IP; no long-term contracts disclosed; company history only since 2022. Pricing power low–moderate; FY25's ~50% margin is out of line with listed peers (7.5–37%).

Industry tailwinds & policy

Driver	Data	Relevance
Defence production FY26	~₹1.78 lakh Cr (+15.6%); private 24% (~₹42,000 Cr) (PIB 17 Jun 2026); target ₹3 lakh Cr by 2029	Volume for sub-tiers
Defence exports FY26	₹38,424 Cr (+62.7%); DPSU 54.8%/private 45.2%; exporters 128→145; target ₹50,000 Cr by 2029	Offset JV demand
FY27 MoD budget	~₹7.85 lakh Cr (+15.2%); capital ₹2.19–2.31 lakh Cr; acquisitions ~₹1.85 lakh Cr, ~75% (~₹1.39 lakh Cr) domestic	Direct
6th Positive Indigenisation List	18 Aug 2026; 405 items (389 DPSU, 16 Coast Guard), ~₹3,070 Cr; ALH/LUH, Su-30MKI, LCA, AL-31FP, T-72/T-90, MRSAM, radars, sonars, satcom. SRIJAN 33,000+ listed, >15,700 indigenised	Most direct driver for build-to-print MSMEs
Draft DAP 2026	Feb 2026; scraps "Buy (Indian)", prefers IDDM, IP ownership; final notification unconfirmed	Favours IP owners, not build-to-print
DAC AoNs	~₹52,000 Cr (3 Jul 2026); ~₹1.10 lakh Cr (7 Sep 2026)	FY28–30 pipeline
Civil aerospace	Airbus ~USD1.4 bn India sourcing 2024 (+40%), USD2 bn/yr by 2030; Boeing >USD1.25 bn, 325+ suppliers; Rolls-Royce to double; India ~1% of global supply chain	Aerospace segment
US–India trade	Interim framework 7 Feb 2026: 18% reciprocal tariff; aircraft-parts relief pending execution	Second-order (exports minimal)
Medical devices	PLI ₹3,420 Cr, 27 projects, ₹1,153 Cr invested; market USD14–23 bn → ~USD50 bn by 2030	Not a PLI beneficiary
Karnataka Aerospace Policy 2026–31	Cabinet 9 Sep 2026; ₹60,000 Cr investment target; 27.5–35% capital subsidy	Possible Unit II/III subsidy; eligibility unverified
Defence PLI	None; support via procurement, iDEX/ADITI, TDF, SRIJAN	–

Risks & Red Flags

#	Risk	Category	Severity	Explanation	Mitigant
1	Customer concentration & churn	Business	High	Top-2 69.6%, top-5 87.4%, top-10 97%; FY23–24 #1 (healthcare) largely lost; unnamed customers	~40% sole-source; 4+ new customers; Unit II
2	Valuation & SME liquidity	Financial	High	103x P/E, 65x EV/EBITDA, 15.8x P/B, 5.8x IPO; 521 holders, 1,200-share lots, ~₹2.7 Cr/day	Net cash; order cover
3	Earnings quality	Financial	High	FY25 OCF ₹0.05 Cr vs PAT ₹6.60 Cr; 49.8% margin helped by ₹1.61 Cr inventory build incl. non-saleable stock; material 29.2% vs 46.6%; inventory-costing KAM	FY26 OCF 0.94x PAT; unmodified FY26 opinion
4	Unit II execution	Execution	High	May→14 Aug 2026; full kit ~Dec 2026; capacity 3.0 vs 1.8 lakh; ~1x asset turn vs ~2.5x today dilutes RoCE	₹31 Cr escrow; Unit II open
5	Funding gap → dilution	Financial	High	₹27 Cr IPO vs ~₹60 Cr Unit II; Unit III unfunded; no-debt stance; only 24% authorised headroom	Accruals ~₹7–10 Cr/yr; ₹50 Cr s.180 limit; possible state subsidy
6	Lock-in overhang	Governance	Med	32,05,921 shares (26.6%) free ~16 Mar 2027; promoter cost ₹1.11/share	No promoter selling/pledge to date
7	Post-listing pay hike / Acuity channel	Governance	Med	+55.8% to ₹205.62 lakh (~27% of PAT); ₹1 Cr Acuity omnibus	Shareholder approval obtained
8	Control lapses	Governance	Med	Lender stock-statement overstatement FY24–25; 31 TDS delays; CHG-1 non-filing; MoA defence gap; thin CFO/CS bench	FY26 no variance; CARO "generally regular"; internal audit started
9	Unit I lease expiry	Execution	Med	Agreement expired 30 Sep 2026; renewal not disclosed; amendments unregistered	Long tenancy since 2021; Unit II alternative
10	Mazak defence-use restriction	Execution	Med	4 Mazak VMCs (₹3.33 Cr) "shall not be used for any defence-related manufacturing"; defence 65%+ of revenue	Use for aerospace/healthcare work
11	EPCG export obligation	Regulatory	Med	₹1.45 Cr unfulfilled by FY2029-30 vs ₹2.56 lakh FY26 exports; duty + interest and BG invocation risk	USD 84,484 export order; deemed exports possible
12	Aged payables	Financial	Med	₹2.05 Cr (43%) >2 yrs; confirmation KAM	Likely legacy; small
13	Margin sustainability	Business	Med	Fixed-price POs, no escalation; Unit II costs ahead of revenue; pay hike	Guidance 37–40%; insourcing job work
14	Job-work & supplier dependence	Business	Med	Job work 56% of H1 FY26 purchases; customer-approved vendors	Unit II insourcing
15	Defence cyclicality / DAP 2026	Regulatory	Med	65% defence; L1 pricing; IDDM favours IP owners; DPSU payment delays	Record budget; 75% domestic reservation
16	Competition	Business	Med	Millworks, Unimech, Azad, Aequs, Tier-1s adding capacity	Sole-source niche
17	Key-person	Execution	Med	Three founders hold customer relationships; small team	73% ownership
18	Over-ambitious targets	Governance	Med	₹500 Cr FY31 (16x) vs Unit I+II+III ≈ ₹160 Cr+	Called aspiration
19	Pending approvals	Regulatory	Med	Fire NOC, KSPCB consent for Unit II pending at RHP; certificates in old name	Unit II opened Aug 2026
20	Board renewal	Governance	Med	All 3 IDs' terms end 17 Mar 2027	Reappointment possible
21	Disclosure depth	Governance	Med	Half-yearly results, no CG report, no rating, no coverage; H1 FY26 PAT mismatch; AR cash-flow error	Calls held; quarterly reporting "considered"
22	Raw material / FX	Macro	Low–Med	Rising imports (₹1.14 Cr RM, ₹4.32 Cr capex FY26); weaker ₹ raises Unit II capex	Re-pricing on new orders
23	Geopolitics / export controls	Macro	Low–Med	Foreign-OEM offset customers; licensing; tariffs	Domestic delivery
24	Quality escape / obsolescence	Business	Low–Med	One escape can disqualify; additive substitution	AS9100; no warranty claims
25	Litigation / tax	Regulatory	Low	9 cases, ₹13.98 lakh	Immaterial
26	Debt / pledged machines	Financial	Low	Key machines hypothecated (Axis, Siemens)	Net cash ₹32 Cr
27	ESG / insurance	ESG	Low	Swarf, coolants; no building/business-interruption insurance; POSH committee pending	Small footprint

Red-flag checklist

Flag	Status	Detail
Rising debt	No	Net cash ₹32 Cr; D/E 0.09
Margin deterioration	Moderate	49.8% → 37.3%
Auditor concerns	Low	Procedural EoM (Sep-25), none FY26; peer-review-driven change
Related-party abuse	Watch	Acuity ₹1 Cr limit; MD loan round-trip
Promoter selling / pledge	No	73.02% flat; nil pledge
Dilution	Likely	Funding gap + equity preference
Customer loss	Yes (historic)	Healthcare #1 customer shrank 77%
Earnings quality	Yes	FY25 OCF 0.01x PAT
Institutional exit	Yes	AIF+FPI 8.27% → 3.12%
Key-person	Yes	Three founders

Concall Highlights & Guidance

SME: one earnings call since listing (H2/FY26, 5 Jun 2026; transcript filed 8 Jun; moderated by IR agency Finportal; five management speakers). Tab combines RHP/IPO commentary, the 29 May 2026 deck, the call, the 26 May EGM and the 26 Sep AGM.

Date	Event	Key content	Tone
4 Mar 2026	RHP	Unit II production "from May 2026"; capacity 3.0 lakh; ₹6.05 Cr FY26 / ₹20.97 Cr FY27 deployment; shortfalls via "internal accruals and… additional debt"; healthcare decline = "selective order acceptance"	Modest
10–13 Mar 2026	IPO	GMP ₹0 on anchor day (10 Mar), ₹18–20 during bidding; QIB demand all on day 3	–
30 Apr / 26 May 2026	Board / EGM	Promoter pay +55.8%	–
28–29 May 2026	FY26 results, deck	Revenue ₹30.65 Cr, PAT ₹7.51 Cr; Unit II ~1.8 lakh components	–
5 Jun 2026	Earnings call	See below	Confident, promotional long-term; candid on delay
14 Aug 2026	Unit II opening	~2 weeks after "end-July"; ValuePickr: "walking the talk"	–
26 Sep 2026	4th AGM (VC)	Accounts adopted; Mariyappan reappointed; no dividend; scrutiniser report 29 Sep	–

5 Jun 2026 call: management on the record

Topic	What management said
Results	Revenue >₹30.6 Cr (+49.6%); EBITDA ₹11.4 Cr; margin 37% vs 49% "due to listing expenses and delayed commencement of Unit 2"; PAT ₹7.5 Cr
CFO margin drivers	Unit II fixed costs (rent, utilities, manpower) before revenue; listing/CSR/governance; RM inflation from geopolitics, supply chains, FX (not flagged in AR); pass-through at quote stage only
FY27 revenue	~₹48 Cr = Unit I ~₹30 Cr ("completely utilised") + Unit II ~₹18 Cr at <50% utilisation
FY28+	Unit II ~₹60 Cr at full; run-rate ₹90–100 Cr; Unit III >₹70 Cr; ₹500 Cr by ~FY31 ("very, very much confident")
Margins	37–40% EBITDA next 2–3 years; FX/geopolitics flagged for FY30–31
Unit II	~₹60 Cr total; "twice the size of Unit I"; 8 of 25 machines arrived; machines ordered after IPO (late Mar); 6–10 month lead times; ops "end-July/early-August"; ~35 machines at full; full ops "end of December FY27/FY28" (ambiguous)
Funding	IPO because "internal accruals were not sufficient"; bank debt "9–10%, effectively 11–12%"; "taking a 40-crore or 50-crore loan from the bank doesn't make any sense for us"
Order book	₹40.5 Cr (~₹25 Cr defence, ~₹12.9 Cr aerospace), within ~12 months; ~₹24 Cr in Mar 2024; >₹30 Cr new orders in FY26; pipeline >₹100 Cr, ~30% conversion; "capacity, not demand"
Customers	Top-1 52% → 35.6%; top-5 94% → 87%; 15–20 customers; >4 new; foreign OEM offsets; 90% delivered in India
Moat	~40% sole-supplier; CAD theirs, CAM ours; competitors "failed to qualify"; no NADCAP needed
Working capital	Collection ~45 days (audited 48); inventory "77 days" (audited 151 on COGS, ~49 on revenue)
Other	R&D 7–10%, 15–20 people; "over 100 people" vs 97 permanent; 250+ new components; mix guide 60/30/20 sums to 110%
Investor Q&A	Questioners (all individuals/small funds, none from brokers): Aditya Mutha, Hemant K, Rishav Rititva, Rahil Mehta, Priyansh Miri, Vaibhav Temani. Themes: Unit II timing/cost, funding, margins, concentration, sole-source, voluntary quarterly disclosure (mgmt will "consider" after consulting auditors)

Guidance vs outcome (credibility)

Date	Guidance	Outcome	Verdict
RHP	₹6.05 Cr machinery spend in FY26	₹0 by 31 Mar 2026	Missed (partly timing)
RHP	Unit II production May 2026	Inaugurated 14 Aug 2026; no commercial-production filing found	~3-month slip
RHP	Unit II = ₹27.02 Cr machinery	~₹60 Cr total (2.2x)	Scope up, unfunded
RHP	Capacity 3.0 lakh/yr	Deck ~1.8 lakh	Inconsistent
Pre-IPO	FY25 EBITDA ~50%	FY26 37.3%	Not sustained
RHP	Healthcare "selective acceptance"	₹0.75 Cr H1 FY26; ₹4.30 Cr order Sep 2026	Partial rebuild
Jun call	Unit II "end-July/early-Aug"	14 Aug 2026	Broadly met
Jun call	Order flow	Post-call Reg-30 inflow ~₹5.9 Cr (USD 84,484 + ₹0.80 Cr + ₹4.30 Cr); ScanX Q1 FY27 inflow ₹11.93 Cr (unreconciled)	Thin
Jun call	No new debt	None announced	Holding
Jun call	FY27 ₹48 Cr; 37–40%	H1 FY27 due ~14 Nov 2026	Pending

Tone shift [Analyst View]: from a modest "niche SME" with ₹27 Cr of machinery at the IPO to "₹60 Cr Unit II, Unit III, ₹500 Cr by FY31" by June, while the share price re-rated and the first hard milestones (May Unit II, FY26 deployment) slipped. Recurring themes: capacity constraint, indigenisation tailwind, diversification away from top customer, equity over debt. Contradictions: no-debt stance vs RHP "additional debt"; capacity 3.0 vs 1.8 lakh; inventory days 77 vs 151.

Growth, Outlook & Valuation

Order inflow & book-to-bill

Period	POs received (₹ Cr)	Revenue	Book-to-bill
FY23	10.84	10.37	1.05x
FY24	20.81	16.87	1.23x
FY25	18.76	20.49	0.92x
H1 FY26	21.24	13.65	1.56x
FY26	>30	30.65	~1.0x
Order book Mar-24 → May/Jun-26	~24 → 40.50	–	1.32x cover; ~84% of FY27 guide

Reg-30 orders since listing (customers unnamed)

Date	Segment	Value	Execution
7 Apr 2026	Domestic A&D	₹5.00 Cr	15 months
25 Apr 2026	Domestic aero/healthcare/defence	₹2.05 Cr	6 months
29 Apr 2026	Domestic A&D	₹1.10 Cr	2 months
7 May 2026	Domestic defence (₹7,24,02,780; stock ~₹287)	₹7.24 Cr	10 months
27 May 2026	Domestic A&D (₹1,53,76,033)	₹1.54 Cr	8 months
24 Jul 2026	International defence (first export)	USD 84,484 (~₹0.82 Cr)	by 14 Feb 2027
24 Jul 2026	Domestic A&D (₹79.95 lakh)	₹0.80 Cr	15 Sep 2026 / 3 May 2027
15/16 Sep 2026	Domestic healthcare (₹4,29,68,670)	₹4.30 Cr	7 months
Total		≈ ₹22.9 Cr	~₹17.0 Cr pre-call; ~₹5.9 Cr post-call

Expansion & funding

Unit	Capex	Timeline	Revenue potential	Funding
Unit I (Peenya)	Maintenance; Hermle/Doosan added FY26	Full	~₹30 Cr	Accruals + Axis loans
Unit II (N. Yelahanka)	₹27.02 Cr IPO vs ~₹60 Cr total	Opened 14 Aug 2026; ~35 machines by ~Dec 2026; full FY28	~₹18 Cr FY27; ~₹60 Cr at full	₹31.22 Cr escrow; gap ~₹33 Cr [Est.]
Unit III (Devanahalli)	Not disclosed; ₹2.71 Cr land advance	Not finalised; land not transferred	>₹70 Cr	Undisclosed

Short-term catalysts (12m)

H1 FY27 results by ~14 Nov 2026 (test: ≥₹20 Cr half, margin after pay hike, OCF, IPO-use update)
Second earnings call; possible quarterly reporting
Unit II commercial-production filing; machine arrivals to Dec 2026
Unit I lease renewal disclosure
Funding announcement (preferential/QIP vs debt)
~16 Mar 2027 lock-in expiry (26.6%); ID terms end 17 Mar 2027
FY27 results ~May 2027

Long-term drivers (3–5y)

Indigenisation lists, 75% domestic capital reservation, DAC AoNs
Foreign-OEM offsets via Indian JVs
Airbus/Boeing/Rolls-Royce India sourcing
Unit III assemblies; build-to-spec capability
Healthcare OEM's new scanner
Karnataka Aerospace Policy subsidy (unverified)

Analyst consensus: none. No broker coverage, target prices or estimates (Trendlyne "No estimates", Simply Wall St 0 analysts). IPO reviews only:

Reviewer	View (Mar 2026)	Reasoning
Dilip Davda (Chittorgarh)	"Fully priced"; may park moderate funds	FY25 profit surge "raises eyebrows"
Paresh Gordhandas (Chanakya Ni Pothi)	Apply with caution	Tailwinds vs concentration, utilisation, margin; P/B 7.07x
ipoplatform	Flags valuation	P/E 19.97x vs sector 15.71x (its "FY26" column was H1 annualised)
Chittorgarh broker tally	0 / 0 / 0 / 0	No broker view on record

Valuation

Metric	At CMP ₹642	At IPO ₹110	FY27 guidance basis [Est.]
Market cap	₹773.7 Cr	₹132.6 Cr (pre ₹96.8 Cr)	–
EV	~₹741.7 Cr	~₹134 Cr	–
P/E	103x (76x on ₹8.40)	19.97x post / 14.58x pre (FY25)	~65–70x (PAT ₹11–12 Cr)
P/B	15.8x	9.16x (FY25 NAV ₹12.01) / 7.07x (Sep-25 ₹15.55)	–
EV/EBITDA	~65x	~13x post / ~9.7x pre	~39–42x
EV/Sales	24.2x	~6.5x	~15.5x
3-yr average multiples	Not computable (listed <7 months)
Dividend / buyback	0% / none

Cross-checks: Screener P/E 103; Tapetide P/B 15.8x; Arthneeti P/E 98.1x (14 Sep 2026). Peers: mainboard A&D 51–303x; Millworks ~53x.

Scenario (12–18m) [Analyst View]	Assumptions	Value / share	vs CMP
Bull	FY28 run-rate ₹90 Cr, ~24% PAT margin (~₹22 Cr), 45x; ~4.6% dilution for Unit II	~₹785	+22%
Base	FY27 ₹48 Cr, PAT ~₹11.5 Cr, 50x (still above Millworks)	~₹477	−26%
Bear	FY27 ~₹40 Cr, PAT ~₹8 Cr, 40x; concentration hit or Unit II delay	~₹265	−59%

Final Verdict

Business quality

Medium

Real niche, ~40% sole-source; tiny, top-5 = 87%

Management & governance

Medium–Weak

Pay +55.8% post-listing; control lapses pre-IPO

Financial quality

Medium

Net cash; FY25 cash conversion 0.01x

Valuation

Expensive

103x P/E, 65x EV/EBITDA, 15.8x P/B

Overall view

Negative at CMP

Good small shop; price discounts FY28+

Bull case

Demand outruns capacity: ₹40.5 Cr book and a >₹100 Cr pipeline. Unit II lifts capacity ~2.2–3x (deck vs RHP figures), with an FY28 run-rate of ₹90–100 Cr.
Sticky qualified parts (~40% sole-source) inside the strongest Indian defence-procurement cycle ever (75% domestic, 6th list).
Net cash ₹32 Cr, 37–40% margins, and no pledge.

Bear case

103x trailing for a ₹31 Cr job shop where two customers are 70% of revenue and the former #1 already shrank 77%.
The IPO-year margin and cash were flattered; Unit II is late, costs 2.2x the IPO object and points to dilution.
Governance drift (pay +55.8%, Acuity, control lapses) while institutions exited; 26.6% unlocks Mar 2027.

Base case (12–18m): FY27 revenue lands at ₹42–48 Cr with H2 skew; margins 35–38% after the pay hike; Unit II reaches about half its machines by Dec 2026; some equity or debt raise follows. Multiple compresses towards 50–60x forward as the March 2027 unlock nears. Fair value ~₹450–500 [Analyst View].

5 things to remember

It is a build-to-print CNC machining shop, not EMS/defence electronics.
FY25 (49.8% margin, OCF ₹0.05 Cr) was the IPO base year; 37–40% is the real range.
Unit II: N. Yelahanka, opened 14 Aug 2026, capacity 3.0 vs 1.8 lakh, cost ₹27 vs ~₹60 Cr.
Promoter pay ₹132 → ₹205.62 lakh from 1 Apr 2026 (FY25 actual ₹68 lakh).
~26.6% of equity unlocks ~16 Mar 2027; H1 FY27 results by ~14 Nov 2026.

5 questions before investing

How will the ~₹33 Cr Unit II gap and Unit III be funded, and at what dilution?
Who are the top two customers, and what programmes and tenors underpin them?
What was the "non-saleable" FY25 stock, and was it written off or sold?
Has the Unit I lease (expired 30 Sep 2026) been renewed, and on what terms?
Why did each promoter receive ₹1 lakh above approved FY26 pay, and what is Acuity's ₹1 Cr limit for?

Monitor	When	Positive signal	Negative signal
H1 FY27 results	By ~14 Nov 2026	Revenue ≥₹20 Cr, EBITDA ≥37%, OCF >0.8x PAT	Revenue <₹18 Cr; receivables/inventory build
IPO utilisation	Nov 2026	Machinery deployment on track	Deviation / GCP use
Funding	FY27	Accruals/subsidy	Preferential at discount / warrants
Shareholding	Mar 2027 SHP	Institutional re-entry	Promoter sales post-unlock
Board	17 Mar 2027	Stronger IDs	Unexplained exits

Apsis is a genuine, well-run-on-the-floor precision machining shop riding a real defence-indigenisation tailwind. At ₹642 the market is paying 103x trailing and ~65–70x on FY27 guidance for a ₹31 Cr, two-customer business whose IPO-year numbers flattered, whose capex is unfunded and whose promoters raised their pay right after listing. Avoid at current price; revisit below ~₹450 or after two clean half-years.

Sources

Merged and de-duplicated from all eight research inputs. All accessed 13 Oct 2026. Some NSE PDFs timed out for some analysts; primary text extracts were read from local copies (listed last).

Offer documents & company filings

Document	URL
RHP 4 Mar 2026 (company)	apsisaerocom.com/…/RHP_APSIS_AEROCOM_04032026.pdf
RHP (BRLM copy)	oneviewadvisors.com/upload/prospectus/rhp_Apsis.pdf
RHP (NSE)	nsearchives…/ApsisAerocomLimited_RHP.pdf
DRHP 30 Sep 2025 (NSE)	nsearchives…/Registration_30092025233505_DRHP.pdf
DRHP (company)	apsisaerocom.com/…/ApsisAerocomLimitedDRHP.pdf
Prospectus 16 Mar 2026	apsisaerocom.com/…/Prospectus_Apsis_16032026.pdf
Abridged prospectus	apsisaerocom.com/…/AbridgedProspectus.pdf
Restated financials to 30 Sep 2025	apsisaerocom.com/…/RFS-30.09.2025.pdf
Restated financials (DRHP)	apsisaerocom.com/…/Auditors-report-and-Financials_RFS.pdf
KPI certificate, YCRJ 18 Feb 2026	apsisaerocom.com/…/Certificate-On-Key-Performance-Indicators
FY25 financial statements	apsisaerocom.com/…/Financial-statement_-FY-2024-25.pdf
FY26 Annual Report (company)	apsisaerocom.com/…/Annual-report_Apsis_FY2025-26.pdf
FY26 Annual Report (NSE, filed 3 Sep 2026)	nsearchives…/Annual_report_AGM_Apsis_FY2025-26.pdf
FY26 financial statements	apsisaerocom.com/…/Financial-statement_2025-26.pdf
FY26 results & Reg 32 (28 May 2026)	apsisaerocom.com/…/OutcomeofBM_Financialresults_31032026
Investor presentation 29 May 2026	company · NSE
Earnings call transcript 5 Jun 2026	company · NSE
EGM notice (26 May 2026) / scrutiniser	notice · scrutiniser
Board outcomes 30 Apr / 13 May / 29 Aug 2026	30 Apr (NSE) · 13 May (NSE) · 29 Aug
AGM outcome 26 Sep 2026	nsearchives…/Outcome_of_AGM_Proceedings_26092026.pdf
Unit II opening intimation (13 Aug 2026)	apsisaerocom.com/…/Intimation-of-opening-of-Unit-2
Award disclosure 24 Sep 2026	apsisaerocom.com/…/Award_24092026.pdf
Shareholding: pre-listing / Mar-26 / Sep-26	pre · Mar-26 · Sep-26
Integrated filing Sep 2026 (RPT)	nsearchives…/INTEGRATED_FILING…iXBRL_WEB.html
Reg-30 orders	7 Apr · 25 Apr · 29 Apr · 7 May · 27 May · 24 Jul intl · 24 Jul dom · 15 Sep
Company website	home · IR · about · expertise · competency

IPO coverage & reviews

Source	URL
Chittorgarh IPO / subscription / Davda review	IPO · subscription · review
Davda review (Economic Revolution)	theeconomicrevolution.in
Chanakya Ni Pothi	chanakyanipothi.com
5paisa IPO / subscription / listing	IPO · subscription · listing
HDFC Sky listing	hdfcsky.com
Groww / INDmoney / Equentis	Groww · INDmoney · Equentis
Zerodha / Upstox / Kotak Neo IPO	Zerodha · Upstox · Kotak Neo
IPOCracker / Torus / Finowings / IndiaIPO	IPOCracker · Torus · Finowings · IndiaIPO
Mr Money Frugal / ipoplatform / IPO Guru / JM Financial	MMF · ipoplatform · IPO Guru · JM
GMP IPO Watch / anchor-day article	IPO page · anchor news
Anchor wire (Baroda eTrade / wealthy.in) / NiftyTrader	Baroda · wealthy · NiftyTrader
YouTube IPO reviews	video · short

Market data & databases

Source	URL
Screener	standalone · consolidated
Trendlyne / bulk deals	overview · bulk/block
Tapetide / Tickertape / sharpely / Dhan	Tapetide · Tickertape · sharpely · Dhan
Simply Wall St / ICICIdirect / IIFL / Kotak Neo	SWS · ICICIdirect · IIFL · Kotak
Zerodha markets / Choice / HDFC Securities / Anand Rathi	Zerodha · Choice · HDFC Sec · Anand Rathi
Sharekhan / mStock / Angel One / Ventura	Sharekhan · mStock · Angel · Ventura
Tracxn / Tofler / Wright Research (rating search)	Tracxn · Tofler · Wright

News, commentary & forums

Source	URL
ScanX FY26 results (two versions)	43906294 · 41581947
ScanX call / orders / encumbrance / EGM / hub	call · ₹7.24 Cr · ₹1.54 Cr · no encumbrance · EGM · hub
TradeBrains (Mukul Agrawal 12 Oct; ₹5 Cr order)	Mukul Agrawal · ₹5 Cr
HDFC Sky order / Reuters via TradingView	HDFC Sky · Reuters
Arthneeti / multibagg.ai	Arthneeti · multibagg
ValuePickr thread (from 31 Jul 2026)	forum.valuepickr.com

Industry, policy & peers

Topic	URL
Defence production / exports FY26	Business Today · PSU Connect
FY27 defence budget	IDSA · Army Technology
6th Positive Indigenisation List	ETV Bharat · ADU
Draft DAP 2026 / DAC approvals	JSA · Outlook Business · Sahi
Airbus / Boeing sourcing	India Sea Trade · Business Standard
US–India tariffs	KPMG · Clark Hill
Market size / Karnataka policy / medical devices	IMARC · PMF IAS · GKToday · Pharma Post · IBEF
Peers (Screener)	Unimech · Azad · MTAR · PTC · Dynamatic · Aequs
Peers (StockAnalysis cash/debt)	UNIMECH · AZAD · MTARTECH · PTCIL · DYNAMATECH · AEQUS
Millworks	Upstox · The Machine Maker

Local primary-text extracts (Aamara scratchpad)

File	Used for
apsis_txt\RHP_APSIS_AEROCOM_04032026.txt	RPT, litigation, lock-in, objects, risk factors, business
apsis_txt\Notice-for-EGM_26052026_Signed_Nse-copy.txt	Remuneration revision
apsis_txt\NSEintimation_Earningscall_Transcript_05062026_signed.txt	Call addendum
apsis_txt\ FY26 AR, May-2026 deck, FY26 results extracts	Audited FY26, Note 31/35/41, CARO, KAMs

Not available after search: customer, supplier and programme names (NDA); H1 FY27 results; Unit I lease renewal; full anchor allocations (IPOMatrix paywall); named >1% public holders in the Sep-26 SHP; NSE ASM/GSM status and PIT disclosures; RHP government-approvals chapter detail; credit rating (none exists).