IPO closes on 25 Sep'26
ArMee Infotech Limited
Minimum Investment
₹ 15,000 / 40 shares
Our Verdict:
Avoid
- ArMee Infotech has grown Total Income from ₹1,023.99cr (FY24) to ₹1,410.09cr (FY26), but PAT margin has slipped from 4.91% to 3.26% over the same period, and RoCE has fallen sharply from 57.55% to 24.10%, pointing to profitability under pressure even as the topline expands.
- At the upper price band, the post-issue P/E of ~26x sits within the peer range (roughly 11x–52x) but isn't obviously cheap given the declining margin and RoCE trend — the valuation assumes the recent softness reverses.
- The business is a mix of IT infrastructure/managed services, retail electronics and a newer renewable-energy EPC/solar vertical; the diversification is notable, but the renewable arm is comparatively young next to the established IT services business, and a majority of revenue still comes from Government/PSU projects.
About the company
Founded in
12 Jan'03
Managing director
Ridhish Kiritbhai Patel
- ArMee Infotech Limited (AIL) is an Ahmedabad, Gujarat-based IT infrastructure and managed services company serving government, BFSI and education clients.
- Beyond core IT services, the company operates retail experience zones selling IT products and consumer electronics, and has expanded into renewable energy through EPC and PPA-based solar projects, including nascent Battery Energy Storage Systems (BESS) work.
- As of June 30, 2026, the company reported an order book of ₹2,663.44 crore and employed 263 permanent staff plus 1,648 contractual workers.
- Promoters: Ami Ridhish Patel, Kiritkumar Chimanbhai Patel and Ridhish Kiritbhai Patel
STRENGTHS
- Diversified Revenue Base: Operations span IT infrastructure and managed services, retail electronics sales, and a growing renewable-energy EPC/solar vertical, reducing reliance on any single business line.
- Sizeable Order Book: Order book stood at ₹2,663.44 crore as of June 30, 2026, providing revenue visibility relative to current annual turnover.
- Established Government/PSU Relationships: A majority of revenue is derived from servicing Government and PSU projects, reflecting long-standing institutional relationships in IT infrastructure delivery.
- Entry into a Growing Solar Market: The renewable energy vertical positions the company in a segment where India's solar capacity has grown at a CAGR of around 27.1%, offering a potential new growth avenue alongside the core IT business.
- Revenue Growth Across FY24–FY26: Total Income increased from ₹1,023.99 crore in FY24 to ₹1,410.09 crore in FY26, even as profitability metrics came under pressure.
RISK FACTORS
- Declining Profitability Despite Revenue Growth: PAT margin fell from 4.91% (FY24) to 3.17% (FY25) and 3.26% (FY26), while RoCE dropped from 57.55% to 24.10% over the same period, indicating rising costs or thinner project economics even as revenue scaled up.
- Government/PSU Revenue Concentration: With a majority of revenue tied to Government and PSU projects, the business is exposed to public-sector budget cycles, tendering delays, and payment-timeline risk.
- Contingent Liabilities: Contingent liabilities stood at ₹129.23 crore as of March 31, 2026, a sizeable figure relative to the company's profitability that could crystallize into actual liabilities.
- Elevated Trade Receivables: The company's trade receivables position has been flagged as a working-capital concern, consistent with the Government/PSU-heavy client mix where payment cycles tend to be longer.
- Nascent Renewable Energy Segment: The solar EPC/BESS vertical is newer relative to the core IT services business, so its execution track record and margin profile are less established than the legacy segment.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ 300 crore
Fresh Issue
₹ 300 crore
OFS
₹ -
Price range
₹ 350 - 375
Lot size
40 shares
Issue Objective
- Net proceeds of ₹300 crore are proposed to be used for business expansion (~₹155 crore, primarily new government/PSU projects), working capital requirements (~₹60 crore), repayment/prepayment of certain borrowings (~₹6.5 crore), and general corporate purposes.
Dates
Bidding open
23 Sep'26
Bidding close
25 Sep'26
Allotment date
28 Sep'26
Refund date
29 Sep'26
Listing
7 Sep'26
IPO Reservations
Qualified institutional buyers
25%
Non-institutional investors
22.5%
Retail individual investors
52.5%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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