IPO closes on 14 Aug'26
Behari Lal Engineering Limited
Minimum Investment
₹ 14,820 / 52 shares
Our Verdict:
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- Behari Lal Engineering is an integrated iron & steel manufacturer producing metal rolls, engineering castings, alloy steel products and forgings; revenue grew from ₹446.08 crore (FY24) to ₹534.03 crore (FY26), and PAT grew from ₹35.79 crore to ₹64.64 crore, with margins expanding throughout (PAT margin 8.02% → 12.10%).
- Debt-Equity is unusually low at 0.06x (FY26), down from 0.21x (FY24), and the Restated Financial Statements carry no auditor qualifications a cleaner balance sheet than most companies in this recent IPO batch.
- Customer concentration is comparatively modest the top 5 customers are only 25.49% of FY26 revenue (down from 27.86% in FY24) though geographic concentration remains high, with 91.02% of FY26 revenue still from India despite recent export expansion to 21 countries.
- Consistent margin expansion, low leverage, a clean audit history, and a relatively small OFS component (~₹209 crore of ₹302 crore) make this one of the more fundamentally conservative IPOs in this recent batch; the main things to watch are steel-price cyclicality and the Company's still-heavy reliance on the Indian domestic market.
About the company
Founded in
23 May'96
Managing director
Dinesh Garg
- Behari Lal Engineering is an integrated iron and steel manufacturing company specialising in customised engineering solutions, producing precision-engineered metal rolls, engineering castings, alloy steel products, forging ingots and forged shafts/blocks for critical industrial applications.
- Products serve diverse end-use industries including automobile, steel, mining, infrastructure & construction, power, aerospace & defence and cement; the Company served 1,825 customers as of March 31, 2026, with repeat customers contributing 84.69% of FY26 revenue.
- Manufacturing runs through two integrated divisions in Mandi Gobindgarh, Punjab — a Steel Melting Shop & Foundry Division and a Rolling Mill Division — with a third manufacturing unit currently under construction; the Company has exported to 21 countries across 5 continents since April 2024.
- Promoters: Parkash Chand Garg, Rajesh Garg, Dinesh Garg, Lovlish Garg and Bhuvnesh Garg; the Company is led operationally by Managing Director Dinesh Garg, supported by Whole-time Director Lovlish Garg and CEO Bhuvnesh Garg.
STRENGTHS
- Diversified, Value-Added Product Portfolio: Manufactures alloy steel products, metal rolls, engineering castings and forging ingots/shafts across automobile, steel, mining, infrastructure, power, aerospace & defence and cement industries.
- Revenue and Margin Growth: Revenue grew from ₹446.08 crore (FY24) to ₹534.03 crore (FY26); PAT grew from ₹35.79 crore to ₹64.64 crore, with EBITDA margin expanding from 13.67% to 18.97% over the same period.
- Low Leverage: Debt-Equity ratio of just 0.06x in FY26 (down from 0.21x in FY24), among the lowest in this recent IPO batch, with net debt of only ₹16.64 crore against a net worth of ₹306.10 crore.
- High Repeat-Customer Base: Repeat customers contributed 84.69% of FY26 revenue, spread across 1,825 total customers as of March 31, 2026.
- Growing Export Footprint: Expanded exports to 21 countries across 5 continents since April 2024, reducing reliance on the domestic market from 95.17% (FY24) to 91.02% (FY26) of revenue.
RISK FACTORS
- Geographic Concentration: 91.02% of FY26 revenue still comes from India despite recent export growth; any domestic demand slowdown would materially affect the business.
- Customer Contract Risk: The Company does not enter into long-term contracts with customers; the top 10 customers contributed 38.00% of FY26 revenue.
- Raw Material Procurement Risk: Cost of materials consumed was 61.02% of total expenses in FY26, and the Company has no long-term contracts with suppliers, with the top 10 suppliers contributing 38.39% of total expenses.
- End-Use Industry Concentration: Automobile, infrastructure, Aggregate Crusher Manufacturer and engineering (industrial equipment) end-uses together account for a substantial share of revenue; a downturn in these sectors could adversely affect the business.
- Steel Industry Pricing Risk: Revenue and margins are exposed to steel-price volatility driven by market demand and broader economic conditions.
Financials
All Values are in Cr.
Issue details
Issue type
MainBoard
Issue size
₹ ₹301.62 crore
Fresh Issue
₹ ₹93 crore
OFS
₹ ₹208.62 crore
Price range
₹ 271 - 285
Lot size
52 shares
Issue Objective
Net Proceeds are proposed to be used for: (i) capital expenditure for new equipment/machinery and roof-top solar panels at Manufacturing Facility 1 and Facility 2 (~₹63.04 crore in aggregate); (ii) repayment/prepayment of certain borrowings (₹0.57 crore); and (iii) general corporate purposes (balance amount, capped at 25% of Gross Proceeds).
Dates
Bidding open
12 Aug'26
Bidding close
14 Aug'26
Allotment date
17 Aug'26
Refund date
18 Aug'26
Listing
19 Aug'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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