IPO closes on 28 Sep'26
A-One Steels India Limited
Minimum Investment
₹ 14,985 / 37 shares
Our Verdict:
Neutral
- PAT has been extremely volatile — ₹38.91cr (FY24) fell to just ₹7.71cr (FY25) before jumping to ₹127.41cr (FY26) — partly driven by exceptional items; PAT before exceptional items was ₹126.88cr in FY26 versus ₹12.15cr in FY25, suggesting genuine operational improvement but the swings make a clean multi-year trend hard to establish.
- Margins have improved steadily (EBITDA margin from 4.49% to 7.29%, PAT margin from 1.01% to 3.06% across FY24–FY26) and leverage has come down (debt-equity from 2.34x to 1.17x), but operating cash flow actually declined to ₹62.80cr in FY26 from ₹108.96cr in FY25 and ₹325.40cr in FY24, a gap between reported profit and cash generation worth watching.
- As a steel manufacturer, the business is directly exposed to input-cost swings in scrap, iron ore, coking coal and pig iron, and its own disclosures flag capacity under-utilisation risk across its multiple Karnataka/Andhra Pradesh facilities as a factor that could hurt future performance.
About the company
Founded in
9 Apr'12
Managing director
Sandeep Kumar
- A-One Steels India Limited is a Bengaluru, Karnataka-based steel manufacturer producing long steel products (TMT bars, rods, angles, sections) and flat steel products.
- The company operates multiple manufacturing facilities across Karnataka and Andhra Pradesh, sourcing key raw materials including scrap, iron ore, pellets, coal and pig iron from third-party suppliers.
- Net worth stood at ₹819.52 crore in FY26, up from ₹676.63 crore in FY25, alongside a reduction in net debt-to-equity over the same period.
- Promoters: Sandeep Kumar (Managing Director), Sunil Jallan and Krishan Kumar Jalan
STRENGTHS
- Improving Margin Trajectory: EBITDA margin rose from 4.49% (FY24) to 7.29% (FY26), and PAT margin from 1.01% to 3.06% over the same period.
- Deleveraging Balance Sheet: Debt-to-equity improved from 2.34x (FY24) to 1.17x (FY26), alongside net worth growth from ₹676.63cr (FY25) to ₹819.52cr (FY26).
- Multi-Facility Manufacturing Base: Operates production facilities across Karnataka and Andhra Pradesh, spanning both long and flat steel product categories.
- Diversified Product Range: Manufactures a range of long steel products (TMT bars, rods, angles, sections) and flat steel products, reducing dependence on a single product line.
- Established Track Record: Operating since 2012, with FY26 revenue of ₹4,202.05 crore reflecting meaningful scale within the steel manufacturing sector.
RISK FACTORS
- Volatile Historical Profitability: PAT swung sharply from ₹38.91cr (FY24) to ₹7.71cr (FY25) to ₹127.41cr (FY26), including the impact of exceptional items, making it difficult to extrapolate a clean multi-year earnings trend.
- Declining Operating Cash Flow Despite Rising Profit: Operating cash flow fell to ₹62.80cr in FY26 from ₹108.96cr in FY25 and ₹325.40cr in FY24, even as reported PAT rose sharply — a gap between accounting profit and cash generation.
- Raw Material Price Exposure: The business depends on third-party suppliers for scrap, iron ore, pellets, coal and pig iron; cost increases that cannot be passed on to customers could pressure margins.
- Capacity Under-Utilisation Risk: The company's own disclosures flag that under-utilisation of its manufacturing facilities could adversely affect business performance.
- First Public Issue — No Prior Trading History: This is the company's first public issue, so there is no existing market for the shares and no trading history to gauge post-listing price behavior.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ 405 crore
Fresh Issue
₹ 355 crore
OFS
₹ 50 crore
Price range
₹ 385 - 405
Lot size
37 shares
Issue Objective
- Net proceeds from the Fresh Issue of ₹355 crore are proposed to be used per the Objects of the Issue set out in the RHP. The Offer for Sale of ₹50 crore, sold by promoters Sandeep Kumar, Sunil Jallan and Krishan Kumar Jalan, accrues to the selling shareholders, not the company.
Dates
Bidding open
24 Sep'26
Bidding close
28 Sep'26
Allotment date
29 Sep'26
Refund date
30 Sep'26
Listing
1 Oct'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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