ArMee Infotech Limited, an Ahmedabad-based technology and energy solutions provider, has filed its Draft Red Herring Prospectus (DRHP) for a ₹221.50 crore fresh issue. The company, which operates across IT infrastructure, managed services, and renewable energy, reported consolidated revenue of ₹1,396.63 crore in Fiscal 2026. The public issue is scheduled to open on September 23, 2026, and close on September 25, 2026.

About the Company

Founded in 2011 with roots tracing back to a partnership firm established in 2003, ArMee Infotech operates across four primary business segments: IT Infrastructure, IT Managed Services, Renewable Energy (EPC, PPA, and BESS), and retail Experience Zones. The company primarily serves Government and Public Sector Undertaking (PSU) clients, who contributed approximately 83.84% of its revenue in Fiscal 2026. Its sectoral focus includes education, healthcare, public distribution, rural development, and science & technology.

As of June 30, 2026, the company had a total order book of ₹2,66,344.35 Lakhs, with 88.38% attributed to renewable energy projects. It has 99 ongoing projects and completed 116 projects for Government/PSU clients in Fiscal 2026. Geographically, over 86% of its FY2026 revenue was generated from projects in Gujarat, Maharashtra, and Tamil Nadu.

Financial Performance

ArMee Infotech’s revenue from operations grew from ₹1,020.57 crore in FY2024 to ₹1,396.63 crore in FY2026. However, profitability margins compressed during this period due to a shift toward lower-margin traded goods. Profit After Tax (PAT) declined from ₹50.13 crore in FY2024 to ₹41.67 crore in FY2025 before recovering slightly to ₹45.47 crore in FY2026.

Total assets grew to ₹958.87 crore in FY2026, with non-current assets surging to ₹166.03 crore, reflecting capital deployment in renewable energy. Total equity increased to ₹182.18 crore, while total liabilities stood at ₹776.69 crore. Operating cash flow recovered to ₹12.48 crore in FY2026 after recording a negative outflow of ₹(17.98) crore in FY2025.

Why the Company Is Raising Funds

The company intends to utilize the net proceeds of the fresh issue for the following purposes:

• Performance Bank Guarantees (PBGs): ₹155.00 crore (70.00%) to create fixed deposits as collateral for PBGs, enabling bids for larger government and renewable energy projects.
• Working Capital: ₹60.00 crore (27.15%) to fund incremental working capital requirements across its business segments.
• Debt Repayment: ₹6.50 crore (2.94%) for prepayment or repayment of certain outstanding unsecured borrowings.
• General Corporate Purposes: Residual proceeds for ongoing expenses and strategic initiatives, subject to SEBI ICDR norms.

Business Strengths

• Proven Execution Track Record: Completed 116 Government/PSU projects in FY2026, demonstrating capability in large-scale, multi-year contracts.
• Strong Order Book: A total order book of ₹2,66,344.35 Lakhs as of June 30, 2026, provides multi-year revenue visibility.
• Diversified Sector Presence: Services clients across education, healthcare, and rural development, reducing dependency on a single vertical.
• Experienced Management: Promoters bring over two decades of industry experience since the inception of the partnership firm in 2003.

Key Risks

• High Client Concentration: Approximately 83.84% of FY2026 revenue came from Government/PSU clients, with the top five clients contributing 76.66% of revenue. Loss of any major client could materially impact operations.
• Geographic Concentration: Over 86% of revenue is generated from Gujarat, Maharashtra, and Tamil Nadu, exposing the company to regional economic risks.
• Renewable Energy Execution Risk: While 88.38% of the order book is in renewable energy, promoters and management have minimal experience in this capital-intensive and regulated sector.
• Margin Compression: Gross margins declined from 9.45% in FY2024 to 6.77% in FY2025 due to a shift toward lower-margin traded goods.
• Liquidity and PBG Obligations: Outstanding PBGs totaled ₹7,453.38 Lakhs as of March 31, 2026. Invocation of these guarantees could restrict bidding capacity.
• IREDA Loan Dilution Risk: The company holds a ₹100.10 crore term loan from IREDA at 9.40% p.a., which includes a clause allowing conversion of outstanding obligations into equity shares upon payment default.

Important IPO Dates

• IPO Opening Date: 23-Sep-2026
• IPO Closing Date: 25-Sep-2026
• Allotment Date: 28-Sep-2026
• Listing Date: 30-Sep-2026

Offer Details

• Issue Type: Fresh Issue
• Total Identified Allocation: ₹221.50 crore
• Offer for Sale: Nil

Bottom Line

ArMee Infotech’s DRHP highlights a transition from a traditional IT infrastructure provider to a significant player in renewable energy, backed by a substantial order book. While revenue growth has been robust, investors should note the compression in profit margins, high concentration of government clients, and the execution risks associated with its new renewable energy ventures. The proceeds will primarily address liquidity constraints related to performance bank guarantees.