IPO closes on 30 Sep'26
SRIT India Limited
Minimum Investment
₹ 14,950 / 115 shares
Our Verdict:
Neutral
- Revenue and PAT have both grown well — Revenue from ₹271.09cr (FY24) to ₹449.99cr (FY26), PAT from ₹31.80cr to ₹43.29cr — but RoE has declined steadily from 36.13% (FY24) to 22.40% (FY26), and PAT margin has compressed from 10.73% to 9.62% despite the topline growth.
- Cash generation lags reported profit meaningfully: FY26 operating cash flow was negative ₹12.10 crore despite ₹43.29 crore of PAT, with debtor days of 169 and trade receivables of ₹208.65 crore — a working-capital gap typical of government-contract-driven IT services businesses but a real one to watch.
- Government directorates and municipal agencies are the primary customer base, with the top 5 clients at 42.6% of revenue and top 10 at 64.2% — this concentration, combined with government approval cycles, produces lumpy quarterly revenue recognition and payment-timing risk rather than smooth, predictable billing.
About the company
Founded in
9 Sep'99
Managing director
Dr. Nambiar Raghavan Madhusoodan
- SRIT India Limited is a Bengaluru-based IT/ITeS company providing digital solutions, custom application development and system integration services across healthcare, e-governance and telecommunications verticals.
- The company's core segments include healthcare information systems, cybersecurity/fibre-optic infrastructure and managed services, serving predominantly government and public-sector clients domestically with some international presence including Qatar.
- Outstanding performance bank guarantees stood at ₹48.60 crore (25.1% of net worth) as of FY26, reflecting the scale of government-contract obligations the company carries.
- Promoters: Dr. Nambiar Raghavan Madhusoodan (MD & CEO), Prasaktha Vakkiyl Nambiar and Martin Poovakkulam Chacko
STRENGTHS
- Strong Revenue and Profit Growth: Revenue grew from ₹271.09 crore (FY24) to ₹449.99 crore (FY26), while PAT grew from ₹31.80 crore to ₹43.29 crore over the same period.
- Low Leverage: Debt-to-equity of just 0.19x, with total debt of ₹36.15 crore, reflects a relatively conservative balance sheet for a services business.
- Established Government Relationships: Multi-decade operating history since 1999 serving state government directorates and municipal agencies across healthcare, e-governance and telecom projects.
- Diversified Service Verticals: Operates across healthcare information systems, cybersecurity/fibre-optic infrastructure and managed services rather than a single technology vertical.
- Healthy Capital Efficiency: FY26 RoCE of 28.79% and RoNW of 30.23% indicate reasonably efficient use of capital despite the RoE decline from prior years.
RISK FACTORS
- Declining Return on Equity: RoE fell from 36.13% (FY24) to 22.40% (FY26), and PAT margin compressed from 10.73% to 9.62%, even as absolute revenue and profit grew.
- Weak Operating Cash Conversion: FY26 operating cash flow was negative ₹12.10 crore despite ₹43.29 crore of reported PAT, with a 111-day cash conversion cycle and 169 debtor days.
- High Customer Concentration: Top 5 clients account for 42.6% of revenue and top 10 for 64.2%, with government directorates and municipal agencies as the primary customer base.
- Government Payment Cycle Dependency: Reliance on government and public-sector clients creates lumpy quarterly revenue recognition and exposes the company to bureaucratic approval and payment delays.
- Sizeable Contingent Obligations: Outstanding performance bank guarantees of ₹48.60 crore (25.1% of net worth) represent a meaningful contingent liability tied to government contract terms.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ 218.40 crore
Fresh Issue
₹ 218.40 crore
OFS
₹ -
Price range
₹ 123 - 130
Lot size
115 shares
Issue Objective
- Net proceeds from the Fresh Issue of ₹218.40 crore are proposed to be used per the Objects of the Issue set out in the RHP; this is entirely a Fresh Issue with no Offer for Sale component.
Dates
Bidding open
28 Sep'26
Bidding close
30 Sep'26
Allotment date
1 Oct'26
Refund date
2 Oct'26
Listing
6 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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