IPO closes on 29 Oct'26
BLS Polymers Limited
Minimum Investment
₹ 15,000 / 100 shares
Our Verdict:
Neutral
- Profits have recovered sharply from a low base: PAT rose from ₹7.52 crore (FY24) to ₹27.01 crore (FY26) and ₹10.23 crore in Q1 FY27, with the EBITDA margin widening from 7.1% to 13.3% on revenue growth of only ~8.6% a year. Part of the gain came from lower input cost per tonne (₹89,285 in FY24 to ₹84,959 in FY26), so the margin depends on polymer resin prices staying favourable.
- The valuation already assumes the improved margins hold: the post-issue market value of ~₹930 crore is ~34x FY26 earnings and ~7x pre-issue book value, for a polymer compounder with a PAT margin of 7.7%. Return on net worth of ~28% and debt-to-equity falling from 2.05x to 0.56x support the story, but the earnings record at the higher margin is only about two years long.
- Cash flow and concentration are the weak spots: operating cash flow was negative in the latest quarter and in each of the last three fiscals despite reported profits, the top 10 customers were ~67% of FY26 revenue, and wire and cable compounds were ~73% to 82% of sales. Most of the proceeds go to working capital and capacity, so growth stays capital-hungry.
About the company
Founded in
1 Jan'91
Managing director
Karan Aggarwal
- BLS Polymers Limited manufactures custom-formulated polymer compounds (including HDPE, PVC and XLPE) used for sheathing, jacketing and insulation of wires and cables, and for coating oil, gas and water pipelines.
- It serves the telecom, power, railway, water distribution and oil and gas distribution industries, mainly through direct sales to wire and cable makers and pipeline-coating companies, from a manufacturing facility in Goa, with customers across 13 countries and operations spread across 23 states and Union Territories.
- Revenue from operations grew from ₹296.36 crore (FY24) to ₹349.43 crore (FY26) and PAT from ₹7.52 crore to ₹27.01 crore, with an FY26 EBITDA margin of 13.33%.
- Promoters: Vinod Aggarwal, Sushil Aggarwal, Madhukar Aggarwal, Diwakar Aggarwal and Karan Aggarwal (Chairman and Managing Director), who hold 66.65% before the issue
STRENGTHS
- Specialised Compound Range: HDPE, MDPE, LLDPE, XLPE, PVC, HFFR, cable filling and adhesive coating compounds for power, telecom, railway, water and oil and gas users.
- Approvals and Vendor Status: Source approvals from a central public sector telecom company and approved-vendor status under Gujarat's SAUNI Yojana.
- Improving Profitability and Leverage: EBITDA margin rose from 7.1% in FY24 to 13.3% in FY26 (15.2% in Q1 FY27), while debt-to-equity fell from 2.05x to 0.56x.
- Diversified End-Markets: Customers across 13 countries and 23 states and Union Territories, spread over several infrastructure-linked industries.
- In-House Manufacturing and Testing: A Goa manufacturing facility with in-house laboratory and quality control, and ISO 9001:2015 certification.
RISK FACTORS
- Product and Customer Concentration: Wire and cable compounds were 73.20% to 81.59% of revenue across the periods reviewed, and the top 10 customers contributed 66.81% of FY26 revenue.
- Negative Operating Cash Flows: Operating cash flows were negative in the latest quarter and in each of the last three fiscals.
- Raw Material Price Volatility: Polymer resin price swings can affect margins, which the company may not always be able to pass on.
- Expansion Execution: The proposed capacity expansion may face delays and cost overruns.
- Records and Compliance: Some corporate records are untraceable or incorrect, there have been past Companies Act non-compliances, and 3,32,851 shares are held by 46 untraceable shareholders.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ Up to ₹255 crore
Fresh Issue
₹ Up to ₹255 crore
OFS
₹ Nil
Price range
₹ 142 - 150
Lot size
100 shares
Issue Objective
- Fresh Issue of up to 1,70,00,000 equity shares (about ₹255 crore): ₹77.56 crore for capital expenditure to expand the manufacturing facility, ₹89.50 crore for working capital requirements, and the balance for general corporate purposes. The issue is entirely fresh, with no offer for sale.
Dates
Bidding open
27 Oct'26
Bidding close
29 Oct'26
Allotment date
30 Oct'26
Refund date
2 Nov'26
Listing
3 Nov'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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